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Home My WebLink About2011 07-19 CC CDC AGENDA PKTAgenda Of The 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 — July 19, 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.qov CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION AGENDA 7/19/2011 - Page 2 PRESENTATIONS 1. Employee of the Month — Colleen Stanich — Police Officer 2. Naval Base San Diego Change of Command from Captain Ricky Williamson to Captain Fred Winton Smith 3. Presentation of 2011 Miss National City and her Court 4. Cyreena Prada, National City's representative to the 2012 Miss California Pageant 5. Community Emergency Response Team Academy Members (Fire). 6. Presentation — SDG&E's 2011 Summer Outlook & Conservation Tips on Energy Usage. (Claudia Valenzuela, Public Affairs Manager, SDG&E) 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. 7. Approval of the Minutes of the City Council/Community Development Commission Regular Meeting of June 21, 2011. (City Clerk) 8. 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) 9. Resolution of the City Council of the City of National City authorizing the installation of "Commercial Vehicles Over 3 Tons Prohibited" signs on Kimball Way to enhance safety for pedestrians. (Traffic Safety Committee Item No. 2011-16) (Development Services/Engineering) CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION AGENDA 7/19/2011 - Page 3 CONSENT CALENDAR (Cont.) 10. Resolution of the City Council of the City of National City authorizing the installation of green curb 30-minute time restricted parking with signs in front of 115, 117 and 119 E. 8th Street. (Traffic Safety Committee Item No. 2011-12) (Development Services/Engineering) 11. Resolution of the City Council of the City of National City authorizing the installation of green curb 30-minute time restricted parking with signs on Highland Avenue and 1-hour time restricted parking on E. 6th Street, adjacent to 560 Highland Avenue. (Traffic Safety Committee Item No. 2011-15) (Development Services/Engineering) 12. Resolution of the City Council of the City of National City authorizing the installation of All -Way Stop Control for the intersections of Palmer Street and Earle Drive, and Palmer Street and Palmer Way, near Palmer Way School to enhance pedestrian safety and compliment additional improvements planned for the National City Safe Routes to School Project. (Traffic Safety Committee Item No. 2011-17) (Development Services/Engineering) 13. Resolution of the City Council of the City of National City authorizing the installation of a blue curb handicap parking space with sign in front of the residence at 3517 Stockman Street. (Traffic Safety Committee Item No. 2011- 14) (Development Services/Engineering) 14. Resolution of the City Council of the City of National City authorizing the installation of a blue curb handicap parking space with sign in front of the residence at 2421 E. Beta Street. (Traffic Safety Committee Item No. 2011-13). (Development Services/Engineering) 15. Resolution of the City Council of the City of National City of finding of consistency with the Downtown Specific Plan and approval of a Conditional Use Permit for the expansion of a gas station convenience store and the sale of alcohol for off -site consumption at 10 Osborn Street and rescinding Resolution 2011-148. (Applicant: Hagman & Associates) (Case File 2011-16 DSP, CUP) (Development Services/Planning) CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION AGENDA 7/19/2011 - Page 4 CONSENT CALENDAR (Cont.) 16. Resolution of the City Council of the City of National City awarding a contract to Green Mechanical in the amount not -to -exceed $415,038 for construction improvements for the National City Chiller Replacement Project, Specification 11-01 and authorizing a contingency amount of $41,503 (10%). (Funded through Energy Efficiency Community Development Block Grant) (Development Services/Engineering Division and Public Works) 17. Resolution of the City Council of the City of National City approving a residual receipts loan of $717,500 from HOME Investment Partnerships Program funds to T&T Community Properties, LLC for the acquisition and rehabilitation of an 8- unit apartment complex at 138 Norton Ave., National City and requiring affordable rent restrictions on 8 units for a period of 55 years. (Community Development) 18. Resolution of the City Council of the City of National City approving the redemption of $204,361 in CDBG funds held as State and Local Government Securities purchased under a Defeasance Escrow for the U.S. Department of HUD Section 108 Loan used to fund the construction of Fire Station 34, also approving the reallocation of $48,500.50 in CDBG funds from the remaining balance of a Fiscal Year 2010-11 allocation to the Christmas in July Rehabilitation Program to cover $252,861.50 of interest due on the section 108 loan in Fiscal Year 2011-12, and furthermore, approving an interim allocation from General Fund Contingency Reserves of $77,930.25 to complete the interest payment of $126,430.75 due on July 25, 2011 to be repaid from the proceeds of said Securities. (Administrative Services/Housing and Grants) 19. Resolution of the City Council of the City of National City authorizing the 30-day review and public comment of the National City Police Department's grant application in the amount of $40,410 from the 2011 Edward Byrne Memorial Justice Assistance Grant (JAG) Program to purchase outreach supplies, still cameras, color guard equipment, and software to establish a computer tablet pilot program to retrofit interview rooms and to soundproof the indoor shooting range. (Police) 20. Resolution of the City Council of the City of National City authorizing the Mayor to execute an Agreement with the South Bay Community Services (SBCS) in the not -to -exceed amount of $95,000 for the purpose of providing services and support to the homeless population in the City of National City via a federal grant. (No. 2010-DD-BX-0443) from the U.S. Department of Justice. (Police) CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION AGENDA 7/19/2011 - Page 5 CONSENT CALENDAR (Cont.) 21. Resolution of the City Council of the City of National City authorizing the City Manager to execute a Memorandum of Understanding regarding Legislation on Elimination or Reform of Redevelopment. (City Attorney) 22. Resolution of the City Council of the City of National City reducing the property tax rate for bonded indebtedness for Fiscal Year 2011-2012 from 1.42 cents per $100 of assessed valuation to 1.37 cents. (Finance) 23. National City Sales Tax Update — First Quarter 2011. (Finance) 24. Disclosure of property interest located within the Redevelopment Project Area: Mayor Ron Morrison. (City Attorney) 25. WARRANT REGISTER #51 Warrant Register #51 for the period of 06/15/11 through 06/21/11 in the amount of $189,708.14. (Finance) 26. WARRANT REGISTER #52 Warrant Register #52 for the period of 06/22/11 through 06/28/11 in the amount of $1,431,402.82. (Finance) PUBLIC HEARING 27. Public Hearing to consider the report required by California Health & Safety Code Section 5473 et seq pertaining to collection of sewer charges on the tax roll, directing the City Clerk to file said report with the San Diego County Auditor, and directing the Director of Public Works to certify the "Sewer Service Charge Fund" with the San Diego County Auditor. Sewer service fees will not increase for Fiscal Year 2011-2012. (Public Works) **Companion Item #31** CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION AGENDA 7/19/2011 - Page 6 PUBLIC HEARING (Cont.) 28. Public Hearing — Weed Abatement — Council to hear report findings regarding abated properties Parcel Numbers 5560820700 — 910 Melrose Street and 557- 1803200 — 844 Palm Avenue held over from meeting of June 21, 2011, per National City Municipal Code 9.12.020 — Public Nuisance Declared — Weeds and other Flammable Materials. (Fire) **Companion Item #32** ORDINANCE FOR INTRODUCTION 29. Staff Report on ABx126 and ABx127 seeking Council direction on whether to participate in the "Alternative Voluntary Redevelopment Program" and Ordinance of the City Council of the City of National City authorizing the City of National City to participation in the Alternative Voluntary Redevelopment Program, pursuant to Part 1.9 of Division 24 of the California Health and Safety Code, subject to certain conditions and reservations. (City Attorney) ORDINANCE FOR ADOPTION 30. Ordinance of the City Council of the City of National City amending Chapter 10.52 of the National City Municipal Code pertaining to regulations for the use of municipal parks, playgrounds and golf courses to allow dogs to be off -leash in City designated Dog Parks, and establishing Dog Park regulations. (City Attorney) NON CONSENT RESOLUTIONS 31. Resolution of the City Council of the City of National City adopting the report required by Health & Safety Code Section 5473 et seq pertaining to the collection of sewer charges on the tax roll, directing the City Clerk to file said report with the San Diego County Auditor and directing the Director of Public Works to certify the "Sewer Service Charge Fund" with the San Diego County Auditor. **Companion Item No. #27** 32. Resolution of the City Council of the City of National City authorizing the approval of Weed Abatement Public Hearing Findings and rescinding Resolution No. 2011-132. (Fire) **Companion Item # 28** CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION AGENDA 7/19/2011 - Page 7 NON CONSENT RESOLUTIONS (Cont.) 33. Resolution of the City Council of the City of National City approving the Memorandum of Understanding (MOU) between the City and the National City Municipal Employees' Association. (Human Resources) 34. Resolution of the City Council of the City of National City modifying the contribution rates to the Public Employees' Retirement System by eliminating the City's contribution and increasing to eight percent the Member Contribution paid by the City of National City's Miscellaneous Employees represented by the National City Municipal Employees' Association (NCMEA). (Human Resource) NEW BUSINESS 35. Authorizing the issuance of a Request for Proposals (RFP) for Investment Management Services for the City of National City and the Community Development Commission; and request for appointment of two members of the City Council to participate in the selection of firm(s) for these services. (City Manager) 36. League of California Cities Annual Conference — Designation of Voting Delegate and Alternate(s). (City Manager) 37. Temporary Use Permit — 1st Annual National City Youth Football Camp at El Toyon Field on July 23, 2011 from 8:00 am to 8:30 pm sponsored by the City of National City Community Services Department with a request for waiver of fees. (Neighborhood Services Division) 38. Temporary Use Permit — Integrity Charter School request to conduct physical education activities at Kimball Park commencing July 26, 2011 through June 7, 2012. The applicant is requesting a waiver of fees. (Neighborhood Services Division) 39. Temporary Use Permit — Sweetwater High School Unveiling Celebration on August 6, 2011 sponsored by the Sweetwater Union High School District and the City of National City at 2900 Highland Avenue. The applicant requests the use of the City's stage and street closures. (Neighborhood Services Division) CITY COUNCIUCOMMUNITY DEVELOPMENT COMMISSION AGENDA 7/19/2011 - Page 8 NEW BUSINESS (Cont.) 40. Temporary Use Permit — 7th Annual American Cancer Society Relay for Life at Kimball Park from August 13 to August 14, 2011. This is a City co -sponsored event pursuant to City Council Policy #804. (Neighborhood Services Division) 41. Request to loan the "Proudly United for Educational Development Organization" (PUEDO) Mural from the City of National City to Sweetwater High School. The PUEDO Mural is a City -owned mural and intends to be displayed in Sweetwater High School's new library. (Neighborhood Services Division) 42. Notice of Decision — Planning Commission approval of Design Guidelines and Best Management Practices for newly established auto body shops. (Applicant: City initiated) (Case File 2010-13 A) (Development Services/Planning) 43. Appointment to the Unified Port of San Diego's Public Art Committee. (City Manager) COMMUNITY DEVELOPMENT COMMISSION CONSENT CALENDAR 44. Authorize the reimbursement of Community Development Commission expenditures in the amount of $5,934.46 to the City of National City for the period of 06/15/11 through 06/21/11. (Finance) 45. Authorize the reimbursement of Community Development Commission expenditures in the amount of $123,706.41 to the City of National City for the period of 06/22/11 through 06/28/11. (Finance) 46. Resolution of the Community Development Commission of the City of National City authorizing its Chairman to execute a Subordination Agreement with Amalie Ochoa allowing a new mortgage of $76,100 to be and remain a lien prior and superior to a First -Time Home Buyer assistance loan of $17,358 issued by the Community Development Commission (CDC) on a single -unit property located at 915 Olive Avenue in National City. (Administrative Services/Housing and Grants) CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION AGENDA 7/19/2011 - Page 9 CONSENT CALENDAR (Cont.) 47. Disclosure of property interest located within the Redevelopment Project Area: Chairman Ron Morrison. (CDC/General Counsel) STAFF REPORTS 48. Habitat for Humanity Orientation Meeting. (Housing-Grants/Administrative Services) 49. Closed Session Report. (City Attorney) MAYOR AND CITY COUNCIL ADJOURNMENT Adjourned Regular Meeting — Town Hall Meeting to inform the community about nonconforming land uses and amortization — July 21, 2011 — 6:00 p.m. — Martin Luther King, Jr. Community Center - 140 E. 12th Street — National City, California Adjourned Regular Meeting - Joint Meeting with the City of National City and the National City School District — Wednesday — July 27, 2011 — 6:00 p.m. — Rancho de la Nacion School Auditorium —1830 E. Division Street, National City, California Adjourned Regular City Council and Community Development Commission Meeting — Tuesday — August 2, 2011 — 5:00 p.m. — Council Chambers — . National City, California. (Meeting time adjusted for "National Nite Out" on August 2"d.) MEMORANDUM July 5, 2011 TO Chris Zapata, C. anager FROM Stacey Stevenso , uman Resources Director SUBJECT EMPLOYE THE MONTH PROGRAM The Employee of the Month Program communicates the City's appreciation for outstanding performance. In doing so, it recognizes employees who maintain high standards of personal conduct and make significant contributions to the workplace and community. The employee to be recognized in July 2011 is Colleen Stanich — Police Officer By copy of this memo, the employee is invited to attend the Council meeting on Tuesday, July 19, 2011 to be recognized for her achievement and service. Attachment cc: Colleen Stanich Chief Adolfo Gonzales Mike Harlan - Sergeant Josie Flores -Clark — Executive Assistant Dionisia Trejo — Mayor/Council Office Human Resources — Office File SS:Igr Performance Recognition Program (2) Human Resources Department 140 E. 12th Street, Suite A, National City, CA 91950-3312 619/336-4300 Fax 619/336-4303 www.nationalcityca.gov RECEIVEI' City of National City Performance Recognition Award Nomination Form I nominate Officer Colleen Stanich CITv ur NA I IONAL CIT HUMAN F ESOLJRCES DEPARTMENT for the Performance Recognition Award for the following reasons: Please state reason why your nominee should receive an award, (i.e., examples of service beyond requirements of position, exemplary service to the public, outstanding job performance, etc). Do not to exceed 150 total words. Please be as specific as possible when giving your examples. On August 30, 2010, Officer Colleen Stanich investigated a report of a homeless male chasing a student from Central Elementary School. Officer Stanich discovered the suspect was part of a group of transients living on the streets in the area of E.8th Street and Highland Avenue. Officer Stanich also found these transients were responsible for a large number of calls to the police department as well as causing the area businesses to suffer. Officer Stanich initiated a project to fix the problem. Officer Stanich spearheaded a team comprised of business owners, personnel from other City Departments, as well as fellow officers. Officer Stanich also employed "Crime Prevention through Environmental Design" techniques and her experiences as a former business owner to solve the problem. As a result, calls for service to the police department have dropped over 70% in this area, and the area business owners have expressed their sincere gratitude. FORWARD COMPLETED NOMINATION TO: National City Performance Recognition Program Human Resources Department Nominated by: Sgt Mike Harlan Signature: Date: June 22, 2011 Presents this Certificate to COLLEEN STANICH Police Officer Employee of the Month We hereunto set our hands and affix the official seal This 19t" day of July, 2011 RON MORRISON MAYOR Alejandra Sotelo-Solis Luis Natividad Vice Mayor Councilmember Mona Rios Rosalie G. Zarate Councilmember Councilwoman ITEM #2 7/19/11 NAVAL BASE SAN DIEGO CHANGE OF COMMAND FROM CAPTAIN RICKY WILLIAMSON TO CAPTAIN FRED WINTON SMITH ITEM # 3 7/19/11 PRESENTATION OF 2011 MISS NATIONAL CITY AND HER COURT ITEM #4 7/19/11 CYREENA PRADA, NATIONAL CITY'S REPRESENTATIVE TO THE 2012 MISS CALIFORNIA PAGEANT ITEM #5 7/19/11 COMMUNITY EMERGENCY RESPONSE TEAM ACADEMY MEMBERS (FIRE) ITEM #6 7/19/1 PRESENTATION - SDG&E'S 2011 SUMMER OUTLOOK & CONSERVATION TIPS ON ENERGY USAGE (CLAUDIA VALENZUELA, PUBLIC AFFAIRS MANAGER, SDG&E) Page 3 of 3 SDG&E EXPECTS TO MEET SUMMER ENERGY NEEDS Conservation and Demand -response Programs Still Key The California Independent Systems Operator (Cal -ISO(, the agency responsible for managing the statewide power grid, has issued its 2011 Summer Assessment confirming adequate supplies to meet the projected electricity demand across the state — even if hotter -than -average temperatures occur. "This year forecasters are predicting a warmer summer compared to last year when San Diego experienced unusually cool temperatures during the summer months, said David L. Geier, vice president of electric operations for SDG&E. "Even though our resources are ample, we want to remind our customers that conservation is important especially when unexpected conditions, like a heat wave or transmission emergency arise." Even with adequate power supplies this summer, conservation and demand -response programs continue to be important to maintain grid reliability when electricity use is especially high, such as during an extreme heat wave. "San Diegans are already doing a great job on energy efficiency and conservation, but we can always do more to go green and save money," Geier added. SDG&E continues to work on providing the tools and resources to help customers manage their energy use wisely. By signing up for My Account, SDG&E customers have access to Energy Charts, a tool that customers can use to track their energy use and take steps to reduce use. These types of tools will help many customers save energy and save on their utility bill. In addition, SDG&E has numerous energy -efficiency programs, including online tools to survey your own home's energy use, rebates for energy - efficient products, and no -cost, water -saving kits. The kits Include three faucet aerators and a low -flow showerhead. These easy -to -install items maintain a high-pressure flow while reducing water volume. SDG&E also recommends these additional tips to reduce energy use and costs: • Turn off unneeded lights, computers and appliances when not in use. These energy "vampires" can account for 5% of your energy use. • Swap out incandescent light bulbs for more efficient compact fluorescent bulbs (CFLs). CFLs use less energy, give off less heat and last longer than incandescents, while providing the same amount of light. • Set thermostats at 78 degrees when at home. • Use major appliances before 11 a.m. or after 7 p.m. and unplug small appliances when not in use. • Check weather-stripping around doors and caulking around windows. Properly sealed doors and windows help prevent warm outside air from entering the home. • Close blinds, shades or drapes during the hottest part of the day to block out the sun's heat. • Install low -flow, water -saving shower heads to cut water use and save 5% to 10% on water heating costs. • Save up to 10% of hot water costs by washing full laundry loads in cold water. For more energy -saving tips to use throughout the year visit www.sdge.cornjresidential or call 1-800-411-7343. 7/11/2011 ITEM #7 7/19/11 APPROVAL OF THE MINUTES OF THE CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION REGULAR MEETING OF JUNE 21, 2011 (CITY CLERK) ITEM #8 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. Della, City Clerk Subject: Ordinance Introduction and Adoption 7/19/11 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: July 19, 2011 AGENDA ITEM NO. 9 .. EM TITLE: Resolution of the City Council of the City of National City authorizing the installation of "Commercial Vehicles Over 3 Tons Prohibited" signs on Kimball Way to enhance safety for pedestrians (TSC Item No. 2011-16) PREPARED BY: Stephen Manganiello, Traffic Engineer/A DEPARTMENT: Develop PHONE: 619-336-4382 APPROVED BY: E EXPLANATION: See attached. ervices / FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Adopt the Resolution. BOARD / COMMISSION RECOMMENDATION: At their meeting on June 8, 2011 the Traffic Safety Committee approved the staff recommendation for installation of "Commercial Vehicles Over 3 Tons Prohibited" signs on Kimball Way. ATTACHMENTS: xplanation 2. Resolution 3. Staff Report to the Traffic Safety Committee (June 8, 2011) Explanation Ms. Connie Vickers, resident of 1026 D Avenue, requested measures to prohibit large semi -tractor trailers from using Kimball Way to access Walmart, due to the proximity to the senior center and large number of seniors who walk in the area. Staff performed a site evaluation and determined that installation of vehicle weight restriction signs on Kimball Way are appropriate due to the large number of seniors walking in the area. Also, alternative driveway access to Walmart is provided on both Plaza Boulevard and Highland Avenue, which are designated truck routes. Staff recommends installation of "Commercial Vehicles Over 3 Tons Prohibited" signs at the following locations to enhance safety for pedestrians on Kimball Way: 1. Kimball Way, east of D Avenue (eastbound traffic) 2. E. 14th Street, west of Highland Avenue (westbound traffic) 3. Walmart driveway on Kimball Way (exiting traffic) All work will be completed by City Public Works. TSC 2011-16 RESOLUTION NO. 2011 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE INSTALLATION OF "COMMERCIAL VEHICLES OVER 3 TONS PROHIBITED" SIGNS ON KIMBALL WAY TO ENHANCE SAFETY FOR PEDESTRIANS WHEREAS, the resident of 1028 D Avenue has requested measures to prohibit large semi -tractor trailers from using Kimball Way to access Walmart, due to its proximity to the senior center and large number of seniors who walk in the area; and WHEREAS, staff had determined that Kimball Way is not a designated truck route, and the installation of weight restriction signs on Kimball Way are appropriate; and WHEREAS, driveway access to Walmart is provided on both Plaza Boulevard and Highland Avenue, which are designated truck routes; and WHEREAS, installation of "Commercial Vehicles Over 3 Tons Prohibited" signs at the following locations are recommended: 1. Kimball Way, east of D Avenue (eastbound traffic) 2. East 14th Street, west of Highland Avenue (westbound traffic) 3. Walmart driveway on Kimball Way (exiting traffic); and WHEREAS, the Traffic Safety Committee approved staffs recommendation at its June 8, 2011 meeting. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the City Engineer to approve the installation of "Commercial Vehicles Over 3 Tons Prohibited" signs at the above -referenced locations as recommended by staff. PASSED and ADOPTED this 19th day of July, 2011. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia G. Silva City Attorney 5 NATIONAL CITY TRAFFIC SAFETY COMMITTEE AGENDA REPORT FOR JUNE 8, 2011 ITEM TITLE: ITEM NO. 2011-16 REQUEST TO PROHIBIT HEAVY VEHICLES ON KIMBALL WAY TO ENHANCE SAFETY FOR PEDESTRIANS (BY C. VICKERS) PREPARED BY: Stephen Manganiello, Engineering Division DISCUSSION: Ms. Connie Vickers, resident of 1026 D Avenue, has requested measures to prohibit large semi -tractor trailers from using Kimball Way to access Walmart, due to the proximity to the senior center and large number of seniors who walk in the area. Staff performed a site evaluation and determined that installation of vehicle weight restriction signs on Kimball Way are appropriate due to the large number of seniors walking in the area. Also, alternative driveway access to Walmart is provided on both Plaza Boulevard and Highland Avenue, which are designated truck routes. STAFF RECOMMENDATION: Staff recommends installation of "Commercial Vehicles Over 3 Tons Prohibited" signs at the following locations to enhance safety for pedestrians on Kimball Way: 1. Kimball Way, east of D Avenue (eastbound traffic) 2. E. 14th Street, west of Highland Avenue (westbound traffic) 3. Walmart driveway on Kimball Way (exiting traffic) EXHIBITS: 1. Correspondence 2. Location Map 3. Photos 2011-16 1 Front: Connie Vickers (mailto:connievickers1@cox_net] Sent: S,rtrirday, April 16, 2011 9:58 AM T«t t,�tsa�•ra Irlaxilom Subject: Delivery l rucks on D Avenue Lauren. I don't know who to address this issue lo, so I'm starting with you. The problem_ In the last few days, several large delivery trucks coming!going to WALMART are using D Avenue and Kimball Way to access Walmart. It's my understanding that they are supposed to enter and exit another way (NOT use D Avenue). f rucks -- Coca Cola Walrnart/Sarns Club Altadena These are the LARGE tractor trailers — very noticeable — especially since I was behind one of them on Kimball way when they turned north onto D Avenue_ As you know, Kimball Way has a curve and a steep hill g:nng up to the 2-way stop at D Avenue and Civic Center, and in my opinion is not suitable for the large iraaar trailers. In addition Kimball Way is near the senior towers whose residents regularly walk tihrouyh the parking lot to get to the store_ Any help you can give me to stop the delivery trucks frorn using D Avenue to access Waimart will be apprer:iak d. Thanks, Connie Vickers 1026 D Avenue National City, CA 91950 619-477-8628 2 Location Map Walmart Supercenter 1200 Highland Ave Proposed "Commercial Vehicles Over 3 Tons Prohibited" Signs Kimball Way, west of Wabnart driveway (looking east) Kimball Way, east of Walmart driveway (looking west) 4 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19, 2011 AGENDA ITEM NO. 10 'EM TITLE: Resolution of the City Council of the City of National City authorizing the installation of green curb 30- minute time restricted parking with signs in front of 115, 117 and 119 E. 8th Street (TSC Item No. 2011-12) PREPARED BY: Stephen Manganiello, Traffic Engineer/1 DEPARTMENT: Developme Services / PHONE: 619-336-4382 APPROVED BY: En ' EXPLANATION: See attached. FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Adopt the Resolution. BOARD / COMMISSION RECOMMENDATION: At their meeting on June 8, 2011 the Traffic Safety Committee approved the staff recommendation for installation of 30-minute time restricted parking in front of 115, 117 and 119 E. 8th Street. ATTACHMENTS: Kplanation resolution 3. Staff Report to the Traffic Safety Committee (June 8, 2011) Explanation Mr. Thomas McBride, owner of the businesses at 115, 117 and 119 E. 8th Street, requested 30-minute parking in order to create higher parking turnover for his customers and allow for more efficient enforcement. He has experienced drivers not associated with his businesses parking for extended periods of time, thereby limiting parking access for his customers. Staff visited the site and observed that there are approximately five parking spaces on the north side of E. 8th Street between A Avenue and the alley. Four spaces are "unrestricted" parking, while one space in front of 119 E. 8th Street is signed as 20-minute parking. Installation of time restricted parking is appropriate in business districts to encourage higher parking turnover for customers and more efficient enforcement. Therefore, staff recommends installation of green curb 30-minute time restricted parking with signs in front of 115, 117 and 119 E. 8th Street. All work will be completed by City Public Works. TSC 2011-12 RESOLUTION NO. 2011 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE INSTALLATION OF GREEN CURB 30-MINUTE PARKING, WITH SIGNS, RESTRICTED FROM 8:00 A.M. TO 6:00 P.M., MONDAY THROUGH SATURDAY, IN FRONT OF 115, 117 AND 119 EAST 8TH STREET WHEREAS, the owner of the businesses located at 115, 117 and 119 East 8th Street has requested 30-minute time -restricted parking in front of his businesses to create higher parking turn -over for his customers, and allow for more efficient enforcement; and WHEREAS, after a sight inspection, staff recommends converting 90 feet of existing curb parking in front of 115-119 East 8th Street to green curb 30-minute parking, with signs, restricted from 8:00 a.m. to 6:00 p.m., Monday through Saturday; and WHEREAS, the Traffic Safety Committee approved staffs recommendation at its June 8, 2011 meeting. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the City Engineer to approve the installation of 90 feet of green curb 30-minute parking with signs, restricted from 8:00 a.m. to 6:00 p.m., Monday through Saturday. at the existing curb parking in front of 115, 117 and 119 East 8th Street. PASSED and ADOPTED this 19th day of July, 2011. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia G. Silva City Attorney Ll NATIONAL CITY TRAFFIC SAFETY COMMITTEE AGENDA REPORT FOR JUNE 8, 2011 ITEM NO. 2011-12 ITEM TITLE: REQUEST FOR INSTALLATION OF 30-MINUTE PARKING IN FRONT OF 115-119 E. 8TH STREET (BY T. MCBRIDE) PREPARED BY: Stephen Manganiello, Engineering Division DISCUSSION: Mr. Thomas McBride, owner of the businesses at 115, 117 and 119 E. 81h Street, has requested 30-minute parking in order to create higher parking turnover for his customers and allow for more efficient enforcement. He has experienced drivers not associated with his businesses parking for extended periods of time, thereby limiting parking access for his customers. Staff visited the site and observed that there are approximately five parking spaces on the north side of E. 8`1' Street between A Avenue and the alley. Four spaces are "unrestricted" parking, while one space in front of 119 E. 8`h Street is signed as 20- minute parking. Installation of time restricted parking is appropriate in business districts to encourage higher parking turnover for customers and more efficient enforcement. STAFF RECOMMENDATION: In order to increase parking turnover and allow for more efficient enforcement, staff recommends converting 90 feet of existing curb parking in front of 115-119 E. 81h Street to 30-minute parking, restricted daily from 8:00 AM to 6:00 PM. EXHIBITS: 1. Correspondence 2. Location Map 3. Photo 2011-12 1 McBRIDE FAMILY TRUST Agents: Torn or Karen McBride 5289 APPIAN WAY, LONG BEACH, CALIFORNIA, 90803 PHONE 562-433-4147 E-mail: khmcb@verizon.net ktmcb5289@verizon.net City of National City Engineering Division Atten: Traffic Safety Committee 1243 National City Blvd National City, CA, 91950-4301 5/4/2011 TfiZZ N c, I met with Ms_Maryam Babaki and Mr, Stephen Manganicllo on May 3 discussing a ser@us r<a (T, parking problem in front of the three stores our family trust owns on East 8t Street The stores are T ', 1 15, 117 and 119 East 8th Street. a This is not a safety issue but it is a very serious business problem for the tenants of ourppoperty. a r. Parking is of course a very important factor for the success of any business venture. Th are five parking spaces from the corner of A Street on 8"' Street to the alley next to store 11V. One of the spaces directly in front of 119 is a 20 minute limited parking space. This is a rivo hour limited parking time area for the other spaces. No one pays any attention to the parking regulations. For instance a Silverado pick up truck parks in one of the spaces early each day, normally about 8 AM or so and leaves after 5 PM License number 8V02806. Several other cars and pickups do the same. While attempting to locate the drivers of these cars I learned one person was an employee of the Big Ben store across the street and another was an employee of one of the pawn shops located further up the street. 1 did this while holding open house on our one vacant store, #115 last Friday, Monday, Tuesday and part of Wed. 8`s Street is of course one of the busiest streets in the city so customers of our stores need to have drivers pay reasonable attention to the parking regulations. 1 have been engaged in the real estate and development business now for over 50 years and have experienced these kinds of problems from the border all the way up to Los Angeles over these years. As 1 explained to both Stephen and Maryann we learned that by having limited parking time and also frequent traffic patrols the business people experienced significantly greater business success and the cities involved received significant income from the parking tickets issued to the violators by regularly paroling the street. Stephen suggested removing the 20 minute parking space and having all of the 5 spaces marked as 30 minute parking spaces. Incidentally the Silverado pickup truck mentioned above parked all day in the 20 minute parking space last Monday. Our family and our tenants would really appreciate if the Traffic Safety Committee would give serious consideration to this 30 minute parking limitation for all of these spaces and also fallow through with regular patrols of the street issuing parking tickets to violators cerely, ,f� ./' Ihoiith McBride 2 Location Map 115-119 E. 8t" Street (looking northwest) 4 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19, 2011 AGENDA ITEM NO. 11 _ _ ;M TITLE: Resolution of the City Council of the City of National City authorizing the installation of green curb 30- minute time restricted parking with signs on Highland Avenue, and 1-hour time restricted parking on E. 6th Street, adjacent to 560 Highland Avenue (TSC Item No. 2011-15) PREPARED BY: Stephen Manganiello, Traffic Engineer / Ze DEPARTMENT: Develo!,� �j "e ices / PHONE: 619-336-4382 /" APPROVED BY: En _ 4 EXPLANATION: See attached. FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Adopt the Resolution. BOARD / COMMISSION RECOMMENDATION: At their meeting on June 8, 2011 the Traffic Safety Committee approved the staff recommendation for installation of time restricted parking adjacent to 560 Highland Avenue. ATTACHMENTS: xplanation 2. Resolution 3. Staff Report to the Traffic Safety Committee (June 8, 2011) Explanation Mr. Roberto Plascencia, owner of the new jewelry business at 560 Highland Avenue, requested time restricted parking in order to create higher parking turnover for his customers. Mr. Plascencia's business is located on the southwest corner of Highland Avenue and E. 6th Street. Staff visited the site and observed that the parking on Highland Avenue adjacent to Mr. Plascencia's business is signed as 2-hour parking, while the parking on E. 6th Street is unrestricted. Installation of time restricted parking is appropriate for local businesses to encourage higher parking turnover and more efficient enforcement. Since Highland Avenue is a commercial corridor conversion to 30-minute parking is appropriate. For E. 6th Street, however, staff recommends 1-hour parking adjacent to Mr. Plascencia's business since the properties on E. 6th Street become predominantly residential to the west of his business. All work will be completed by City Public Works. TSC 2011-15 RESOLUTION NO. 2011 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE INSTALLATION OF GREEN CURB 30-MINUTE PARKING, WITH SIGNS, RESTRICTED FROM 8:00 A.M. TO 6:00 P.M., MONDAY THROUGH SATURDAY, IN FRONT OF 560 HIGHLAND AVENUE, AND ONE -HOUR PARKING WITH SIGNS RESTRICTED FROM 8:00 A.M. TO 6:00 P.M., MONDAY THROUGH SATURDAY ON EAST 6TH STREET, ADJACENT TO 560 HIGHLAND AVENUE WHEREAS, the owner of the business located at 560 Highland Avenue, which is on the southwest corner of Highland Avenue and East 6th Street, has requested time restricted parking adjacent to his business to create higher parking turn -over for his customers; and WHEREAS, inspection of the site revealed that the parking on Highland Avenue is signed as 2-hour parking, while the parking on East 6th Street is unrestricted; and WHEREAS, staff recommends the conversion of two parking spaces of the 2- hour time restricted parking in front of 560 Highland Avenue to 30-minute parking, restricted from 8:00 a.m. to 6:00 p.m., Monday through Friday; and the conversion of three "unrestricted" parking spaces on East 6th Street, adjacent to the 560 Highland Avenue, to 1-hour parking, restricted from 8:00 a.m. to 6:00 p.m., Monday through Friday; and WHEREAS, the Traffic Safety Committee approved staff's recommendations at its June 8, 2011 meeting. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the City Engineer to approve the conversion of two 2-hour time restricted parking spaces in front of 560 Highland Avenue to green curb 30-minute parking with signs, restricted from 8:00 a.m. to 6:00 p.m., Monday through Saturday; and the conversion of three "unrestricted" parking spaces on East 6th Street, adjacent to the 560 Highland Avenue, to 1-hour parking, with signs, restricted from 8:00 a.m. to 6:00 p.m., Monday through Saturday. PASSED and ADOPTED this 19th day of July, 2011. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia G. Silva, City Attorney 4 NATIONAL CITY TRAFFIC SAFETY COMMITTEE AGENDA REPORT FOR JUNE 8, 2011 ITEM TITLE: ITEM NO. 2011-15 REQUEST FOR INSTALLATION OF TIME RESTRICTED PARKING ADJACENT TO 560 HIGHLAND AVE (BY R. PLASCENCIA) PREPARED BY: Stephen Manganiello, Engineering Division DISCUSSION: Mr. Roberto Plascencia, owner of the new jewelry business at 560 Highland Ave, has requested time restricted parking in order to create higher parking turnover for his customers. Mr. Plascencia's business is located on the southwest corner of Highland Avenue and E. 6th Street. Staff visited the site and observed that the parking on Highland Avenue adjacent to Mr. Plascencia's business is signed as 2-hour parking, while the parking on E. 6`h Street is unrestricted. Installation of time restricted parking is appropriate for local businesses to encourage higher parking turnover and more efficient enforcement. Since Highland Avenue is a commercial corridor conversion to 30-minute parking is appropriate. For E. 6th Street, however, staff recommends 1-hour parking adjacent to Mr. Plascencia's business since the properties on E. 6`h Street become predominantly residential to the west of his business. STAFF RECOMMENDATION: In order to increase parking turnover and allow for more efficient enforcement, staff recommends the following parking improvements adjacent to 560 Highland Avenue: 1) Conversion of two, 2-hour parking spaces to 30-minute parking on Highland Avenue; 2) Conversion of three "unrestricted" parking spaces to 1-hour parking on E. 6'h Street. EXHIBITS: 1. Correspondence 2. Location Map 3. Photos 2011-15 1 Roberto Plascencia robertoplascencia@hotmail.com Wednesday, May 11, 2011 Dear Stephen Manganiello, My family and I have recently completed the constriction of the one of the finest buildings in the surroundings of Highland Avenue, 56o Highland Avenue specifically. Is my intention to move my Jewelry business into this fine location as soon as possible. The intention of this letter is with the purpose of requesting a parking time limit set of One -hour, on adjacent areas to 56o Iighland Avenue and 6th street, North-West corner. With this changes on the adjacent street parking would bring great attraction to future customers starting with reliable accessibility. It would insure clients in the area of a business type zone and stimulate other business alike. Prevent anyone parking for long periods inflicting discomfort to our prospect clients and even becoming a possible deterrent from bringing their business to us. My intention for this corner in particular is that becomes productive and prosperous for all, including surrounding residents by preventing any sedentary parking on the area for unlimited time. By bringing these changes to this small section of Highland Avenue, We believe we are contributing for a better National City Business sector and residents in general. Thank you in advance for your time considering my petition to your department committee, expecting to hear from you soon. Sin ely yours Roberto Plascencia robertoplascencia@botmail_com 2 Location Map Proposed 1•hour parking 560 Highland Ave (looking west) 560 Highland Ave (looking north) 4 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19, 2011 AGENDA ITEM NO.12 EM TITLE: Resolution of the City Council of the City of National City authorizing the installation of All -Way Stop Control for the intersections of Palmer Street & Earle Drive, and Palmer Street & Palmer Way, nearby Palmer Way School, to enhance pedestrian safety and compliment additional improvements planned for the National City Safe Routes to School Project (TSC Item No. 2011-17) PREPARED BY: Stephen Manganiello, Traffic Engineerp DEPARTMENT: Develop t ices / PHONE: 619-336-4382 APPROVED BYE - E • EXPLANATION: See attached. FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Adopt the Resolution. BOARD / COMMISSION RECOMMENDATION: At their meeting on June 8, 2011 the Traffic Safety Committee approved the staff recommendation for installation of All -Way Stop Control at both intersections on Palmer Street near Palmer Way School. ATTACHMENTS: xplanation resolution 3. Staff Report to the Traffic Safety Committee (June 8, 2011) Explanation As part of the National City Safe Routes to School Project (Phase III), safety enhancements such as corner bulb -outs, new sidewalks, pedestrian ramps, and school zone signing and striping are planned for Palmer Street near Palmer Way School — see attached exhibit in the staff report to the Traffic Safety Committee. As part of a previous Safe Routes to School project, school zone speed limit signs with flashing beacons were installed on Earle Drive approaching Palmer Street to calm traffic and improve driver awareness of the school zone. As part of the project and per the request of concerned parents, staff is recommending All -Way Stop Control (AWSC) for the intersections of Palmer Street & Earle Drive, and Palmer Street & Palmer Way, nearby Palmer Way School. The intersection of Palmer Street & Earle Drive is Stop controlled for Palmer Street and uncontrolled for Earle Drive. The intersection of Palmer Street & Palmer Way does not currently have any traffic control signs. Staff performed a site evaluation and reviewed traffic warrants for AWSC. Since these are relatively low -volume streets the key criteria used in determining warrants is proximity to the elementary school, accident history and distribution of traffic volumes — approach volumes on both streets should be relatively equal to warrant AWSC. Staff recommends installation of AWSC for the intersection of Palmer Street & Earle Drive since: a) traffic volumes on both streets approaching the intersection are relatively equal (1,030 vs. 1,430 daily and 560 vs. 690 afternoon peak), b) the intersection is within one block of the school, and c) the intersection is located along a key walking route to school. No injury accidents susceptible to correction by AWSC were reported within the past two years. Staff recommends installation of AWSC for the intersection of Palmer Street & Palmer Way since: a) the intersection does not currently have any traffic control signs, b) the intersection is located adjacent to the school driveway (west leg of intersection), c) the intersection is located along a key walking route to school, and d) to provide consistency with the proposed AWSC at the intersection of Palmer Street & Earle Drive located one block to the east. No injury accidents susceptible to correction by AWSC were reported within the past two years. All work will be completed as part of the National City Safe Routes to School Project (Phase III), which is scheduled to go to construction Fall 2011. TSC 2011-17 RESOLUTION NO. 2011 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE INSTALLATION OF ALL -WAY STOP CONTROL FOR THE INTERSECTION OF PALMER STREET AND EARLE DRIVE, AND THE INTERSECTION OF PALMER STREET AND PALMER WAY, WHICH ARE NEAR PALMER WAY ELEMENTARY SCHOOL, TO ENHANCE PEDESTRIAN SAFETY AND COMPLIMENT ADDITIONAL IMPROVEMENTS PLANNED FOR THE NATIONAL CITY SAFE ROUTES TO SCHOOL PROJECT WHEREAS, as part of the Safe Routes to School Project (the "Project"), traffic safety enhancements have been installed on Earle Drive approaching Palmer Street to calm traffic and improve driver awareness of the school zone; and WHEREAS, Phase III of the Project includes safety enhancements for Palmer Street near Palmer Way Elementary School; and WHEREAS, to enhance pedestrian safety, as requested by concerned parents, and to compliment additional improvements planned for the Project, staff recommends All -Way Stop Control ("AWSC") for the intersection of Palmer Street and Earle Drive, and the intersection of Palmer Street and Palmer Way, near Palmer Way School, based on the proximity to the elementary school. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the installation of All -Way Stop Control for the intersection of Palmer Street and Earle Drive, and the intersection of Palmer Street and Palmer Way, near Palmer Way School, to enhance pedestrian safety and compliment additional improvements planned for the National City Safe Routes to School Project. PASSED and ADOPTED this 19th day of July, 2011. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia G. Silva City Attorney NATIONAL CITY TRAFFIC SAFETY COMMITTEE AGENDA REPORT FOR JUNE 8, 2011 ITEM TITLE: I ITEM NO. 2011-17 I REQUEST FOR ALL -WAY STOP CONTROL ON PALMER STREET NEAR PALMER WAY SCHOOL TO ENHANCE PEDESTRIAN SAFETY (BY CITY STAFF ON BEHALF OF RESIDENTS) PREPARED BY: Stephen Manganiello, Engineering Division DISCUSSION: As part of the National City Safe Routes to School Project, safety enhancements such as corner bulb -outs, new sidewalks, pedestrian ramps, and school zone signing and striping are planned for Palmer Street near Palmer Way School. See attached Safe Routes to School improvement plan. As part of a previous Safe Routes to School project, school zone speed limit signs with flashing beacons were installed on Earle Drive approaching Palmer Street to calm traffic and improve driver awareness of the school zone. As part of the project and per the request of concerned parents, staff is recommending All -Way Stop Control (AWSC) for the intersections of Palmer Street & Earle Drive, and Palmer Street & Palmer Way, nearby Palmer Way School. The intersection of Palmer Street & Earle Drive is Stop controlled for Palmer Street and uncontrolled for Earle Drive. The intersection of Palmer Street & Palmer Way currently does not have any traffic control signs. Staff performed a site evaluation and reviewed traffic warrants for AWSC. Since these are relatively low -volume streets the key criteria used in determining warrants is proximity to the elementary school, accident history and distribution of traffic volumes — approach volumes on both streets should be relatively equal to warrant AWSC. Staff recommends installation of AWSC for the intersection of Palmer Street & Earle Drive since traffic volumes on both streets approaching the intersection are relatively equal — 1,030 vs. 1,430 daily and 560 vs. 690 afternoon peak, the intersection is within 1 block of the school, and is located along a key walking route to school. No injury accidents susceptible to correction by AWSC were reported within the past two years. Staff recommends installation of AWSC for the intersection of Palmer Street & Palmer Way since the intersection currently does not have any traffic control signs, is located adjacent to the school driveway (west leg of intersection), is located along a key walking route to school, and to provide consistency with the proposed AWSC at the intersection of Palmer Street & Earle Drive located 1 block to the east. No injury accidents susceptible to correction by AWSC were reported within the past two years_ 1 STAFF RECOMMENDATION: Staff recommends installation of All -Way Stop Control for the intersections of Palmer St: eat & Earle Drive, and Palmer Street & Palmer Way, nearby Palmer Way School, to enhance pedestrian safety and compliment additional improvements planned for the National City Safe Routes to School Project. EXHIBITS: 1 Location Map 2 Photos 3. Improvement Plan 2011-17 2 Location Map Intersection of Palmer St & Earle Dr (looking north) Intersection of Palmer St & Earle Dr (looking east) 4 Intersection of Palmer St & Palmer Way (looking west) 5 Safe Routes to School Improvement Plan — Palmer Way School Enhanced Crosswalk f:FI'�-h'hY I-412AD., ElE'iEaT.a,.r rtH New Sidewalk All -Way Stop Control T i E T I Corner Bulb -out w/ new Pedestrian Ramps CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19, 2011 AGENDA ITEM Na 13 EM TITLE: Resolution of the City Council of the City of National City authorizing the installation of a blue curb handicap parking space with sign in front of the residence at 3517 Stockman Street (TSC Item No. 2011-14) PREPARED BY: Stephen Manganiello, Traffic Engineer/14 DEPARTMENT: Dev- - -rvices / PHONE: 619-336-4382 APPROVED BY: EXPLANATION: See attached. FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Adopt the Resolution. BOARD / COMMISSION RECOMMENDATION: At their meeting on June 8, 2011 the Traffic Safety Committee approved the staff recommendation for installation of a blue curb handicap parking space with sign in front of 3517 Stockman Street. ATTACHMENTS: Explanation .tesolution 3. Staff Report to the Traffic Safety Committee (June 8, 2011) Explanation Mr. Thomas Mitchell, resident of 3517 Stockman Street, requested a blue curb handicap parking space in front of his home. Both of Mr. Mitchell's parents are disabled along with another resident currently living in the home. All three residents have valid Disabled Person Placards from the State of California Department of Motor Vehicles. Staff visited the site and observed that there is one accessible parking space available on the property. However, since three of the residents are disabled it does not appear that an adequate number of accessible parking spaces are available on the property. Currently, there are no blue curb handicap parking spaces provided nearby. The City Council has adopted a policy, which is used to evaluate requests for handicap parking spaces. The City Council Policy requirements for "Special Hardship" cases are as follows: 1. Applicant (or guardian) must be in possession of valid license plates for "disabled persons" or "disabled veterans". This condition is met. 2. The proposed disabled parking space must be in front of the applicant's (or guardian's) place of residence. This condition is met. 3. The residence must not have useable off-street parking available or an off- street space available that maybe converted into disabled parking. Staff deferred to the Traffic Safety Committee as to whether or not this condition is met — since only one accessible parking space is provided on the property and three of the residents are disabled, the Traffic Safety Committee determined that there is a lack of accessible parking on the property and therefore, unanimously agreed that this condition is met. Since all three conditions of the City Council's Disabled Persons Parking Policy are met for this "Special Hardship" case, staff recommends installation of a blue curb handicap parking space with sign in front of the residence at 3517 Stockman Street. All work will be completed by City Public Works. TSC 2011-14 RESOLUTION NO. 2011 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE INSTALLATION OF A BLUE CURB HANDICAP PARKING SPACE WITH SIGN IN FRONT OF THE RESIDENCE LOCATED AT 3517 STOCKMAN STREET WHEREAS, the resident of 3517 Stockman Street has requested a blue curb handicap parking space in front of his home because three of the occupants are disabled and have valid Disabled Person placards; and WHEREAS, after conducting an inspection and review, staff determined that all conditions have been met for the property to qualify for a blue curb handicap parking space; and WHEREAS, the Traffic Safety Committee approved staff's recommendation at its June 8, 2011 meeting. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the City Engineer to approve the installation of a blue curb handicap parking space with a sign in front of the residence at 3517 Stockman Street. PASSED and ADOPTED this 19th day of July, 2011. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia G. Silva City Attorney Ron Morrison, Mayor 3 NATIONAL CITY TRAFFIC SAFETY COMMITTEE AGENDA REPORT FOR JUNE 8, 2011 ITEM TITLE: ITEM NO. 2011-14 REQUEST FOR INSTALLATION OF A BLUE CURB HANDICAP PARKING SPACE IN FRONT OF 3517 STOCKMAN STREET (BY T. MITCHELL) PREPARED BY: Stephen Manganiello, Engineering Division DISCUSSION: Mr. Thomas Mitchell, resident of 3517 Stockman St., has requested a blue curb handicap parking space in front of his home. Both of Mr. Mitchell's parents are disabled along with another resident currently living in the home. All three residents have valid Disabled Person Placards from the State of California Department of Motor Vehicles. Staff visited the site and observed that there is one accessible parking space available on the property. However, since three of the residents are disabled it does not appear that an adequate number of accessible parking spaces are available on the property. Currently, there are no blue curb handicap parking spaces provided nearby. The City Council has adopted a policy, which is used to evaluate requests for handicap parking spaces. The City Council Policy requirements for "Special Hardship" cases are as follows: 1. Applicant (or guardian) must be in possession of valid license plates for "disabled persons" or "disabled veterans". This condition is met. The proposed disabled parking space must be in front of the applicant's (or guardian's) place of residence. This condition is met. 3. The residence must not have useable off-street parking available or an off-street space available that maybe converted into disabled parking. This condition is not met. It shall be noted that handicap parking spaces do not constitute "personal reserved parking" and that any person with valid "disabled persons" license plates may park in handicap spaces. STAFF RECOMMENDATION: Staff defers to the Traffic Safety Committee as to whether or not all three conditions of the City Council's Disabled Persons Parking Policy are met for this "Special Hardship" case. 1 EXHIBITS: 1. Correspondence 2. Location Map 3. Photos 4. Disabled Persons Parking Policy 2011-14 2 72) . ' -e i� e w 77/9 4/9 11 Al 1 )1- ,e e coo e5 7'i(43 4- H (`/r c /`° P- P14i A/fe G1 //Il 5 rd c / 1/4 4-nl 5 ir°fL , c//- (i9 Nc/i CiVec/ 1).e;-S0w5 3 /1/e/ A/e `er /J/�I/e a 3 r 3 f7 L_ / t_ /:T i t) . 3 U' Pc) k7 / iV FA //vf c) Go 62 V7I c) /a7€ rYc-14i 5 21 (7rG) cf 9 y_-- 2,2,63 NJ 1-0 Purchase of fuel (Business & Professions Code 13660): 1 DEPARTMENT OF MOTOR VEHICLES DISABLED PERSON PLACARD IDENTIFICATION CARD/RECEIPT PLACARD NUMBER: 002677H EXPIRES: 06/30/2011 DATE ISSUED: 03/28/2009 This identification card or facsimile copy is to be carried by the placard owner.. Present it to any peace officer upon demand. Immediately notify DMV by mail of any change of address. When parking, hang the placard from the rear view mirror, remove it from the mirror when driving. TYPE: N 1 TV: 92 DOB: 01 / 19/ 1930 ISSUED TO MITCHELL VELREA B 3517A STOCKMAN ST NATIONAL CITY CA 91950 CO: 37 Purchase of fuel (Business & Professions Code 13660): State law requires service stations to refuel a disabled person's vehicle at self-service rates, except self-service facilities with only one cashier. 1 TYPE: N 1 TV: 92 DOB: 09/08/1926 ISSUED TO When your placard is properly displayed, you may park in or on: • Disabled person parking spaces (blue zones) ▪ Metered zones without paying. " Green zones without restrictions to time limits. ' Streets where preferential parking privileges are given to residents and merchants. You may not park in or on: ` Red, Yellow, White or Tow Away Zones. • Crosshatch marked spaces next to disabled person parking spaces. It is considered misuse to: ' Display a placard unless the disabled owner is being transported. * Display a placard which has been cancelled or revoked. Loan your placard to anyone, including family members. Misuse is a misdemeanor (section 4461VC) and can result in cancellation or revocation of the placard, loss of parking privileges, and/or fines. DEPARTMENT OF MOTOR VEHICLES PLACARD NUMBER: 004483H DISABLED PERSON PLACARD IDENTIFICATION CARD/RECEIPT EXPIRES: 06/30/2011 DATE ISSUED: 03/28/2009 This identification card or facsimile copy is to be carried by the placard owner. Present it to any peace officer upon demand. Immediately notify DMV by mail of any change of address. When parking, hang the placard from the rear view mirror, remove it from the mirror when driving. When your placard is properly displayed, you may park In or on: CO: 37 • Disabled person parking spaces (blue zones) " Metered zones without paying. • Green zones without restrictions to time limits_ * Streets where preferential parking privileges are given to MITCHELL THOMAS NEWTON SR residents and merchants. 3517 STOCKMAN ST You may not park in or on: " Red, Yellow, White or Tow Away Zones. NATIONAL CITY CA 91950 * Crosshatch marked spaces next to disabled person parking spaces. 1t Is considered misuse to: ' Display a placard unless the disabled owner is being transported. " Display a placard which has been cancelled or revoked. ` Loan your placard to anyone, including family members. a a:.,.. �..:� ....,.....,.. _...�.,___ �.......:..., A Ac4 If9......I 4 EIPT COPY** H00 613 AO 00 EXPIRES:;06/30/2011 R' S O NPLACARD AMT T DATE ISSUED: MO/YR: DT FEES RECVD: DUE RECVD — CASH - CHCK : CRDT : ** 08/25/09 QV 08/25/09 NONE 000 0018 CS 1100 082509 Ni 319692A MOTOR VEHICLES PLACARD IDENTIFICATION CARD THIS IDENIFICATION CARD OR FACSIMILE'. COPY IS TO BE CARRIED BY THE PLACARD OWNER. P NT'IT TO ANY PEACE OFFICER UPON DEMAND. IMMEDIATELY NOTIFY DMV BY PHONE �T, OF ANY CHANGE OF ADDRESS. WHEN PARKING, HANG THE PLACARD FROMYTHE` VIEW MIRROR. REMOVE IT WHEN DRIVING. CARD # : EXPIRES: OB: ISSUED: TYPE: PURCHASE OF STATE LAW REQ T 'SELF-SERVIC 9"F92A /30/2011 /18/1961 /25/09 WHEN YOUR PLAC *DISABLED PERSO GREEN ZONES WI PREFERENTIAL P PLACARD HOLDER: CAMPBELL LAURIE ANN 3517 STOCKMAN ST #C NATIONAL CITY CA 91950 (BUSINESS & PROFESSIONS CODE 13660): ES SERVICE'STATIONS TO REFUEL A` DISABLED PERSON'S VEHICLE RATES;" EXCEPT=;SELF SERVICE .FACILIT?ES W,LTH_ ONLY- ONE CASHIER D IS PROPERLY DISPLAYED, YOU MAY PARK IN/ON: "PARKING SPACES '(BLUE'.7ONES) *METERED ZONE 'WITHOUT PAYING BOUT RESTRICTIONS TO TIME LIMITS *STREETS WHERE ING PRIVILEGES ARE GIVEN TO RESIDENTS AND MERCHANTS. YOU MAY NOT PARIKIIN/ON: *RED ZONES *Ttn1 AWAY ZONES *WHITE OR YELLOW ZONES *SPACES MARKED B'Y` CROSSHATCH LINES NE, ` TO DISABLED PERSON PARKING SPACES. IS CONSIDERED„MISUSE: *TO DISPLAY g PLACARD;UNLESS THE DISABLED OWNER BEING TRANSP TED *TO DISPLAY A PLACARD WHICH HAS BEEN CANCELLED OR REVOKED *TO LO OUR PLACARD TO'ANYO, INCLUDING FAMILY MEMBERS. MISUSE IS A MIS ANOR(SECTION ^4461t) AND CAN RESULT IN CANCELLATION OR 5 ITO 04/08/20id"`"Tr`b 2O8/2011 KOR Eiggernp IFMDK03146GA33384 [FORD I,� OAT -TYPE M AC ]8/2010 CYIS OPTF Fk SI S(ND CUu Y, K.y1 J 00/00/2006 (KB 1 2006 TYPE l 2 S. I MP 1(Vf1 I A l4ADETT 32WC l OW 1 TOTAL 8FEES PAID S: 3700 MITCHELL THOMAS N o OR MITCHELL VELREA B w 3517 STOCKMAN ST N NATIONAL CITY CA 91950-8140 E' R FORD MOTOR.;CRDT CO 260 INTERSTATE,N PKWY NW ATLANTA' GA R0056 L0244 30339 RI5040520107003 STATE OF CALIFORNIA DEPARTMENT OF MOTOR VEHICLES VAUOATED REGISTRATION CARD READ REVERSE SIDE - IMPORTANT INSTRUCTIONS A 5087820 UTO 12/12/201rT0 2/12/2011 11 4YA123 VENUE OENDFICATIOM POWER 2B3HD46R33H553053 4Dmm'c MDOFE DATEI O, 12/09/2010 ODG CYES DATE Ex S SOLD CLASS 'YR Y, Abdo! �00/00/2002 DC •004 ?003 12 TYPE0VE11.(G M, P AX WC IR4ADEWCJC,W 126 TOTAL FEES PAID 5 3700 MITCHELL THOMAS NEWTON o OR CAMPBELL LAURIE ANN w 5629 N PENN ST N 3517 STOCKMAN ST IC R NATIONAL CITY CA 91950-8140 E N H D L 0 D E R ROn'4 LO 142112920101963 STATE OF CALIFORNIA DEPARTMENT OF MOTOR VEHICLES VALIDATED REGISTRATION CARD READ REVERSE SIDE - IMPORTANT INSTRUCTIONS C 6148381 Location Map 3517 Stockman St 3517 Stockman St (looking north) 3517 Stockman St (looking northwest) 8 DISABLED PERSONS PARKING POLICY The purpose of a disabled persons parking zone is to provide designated parking spaces at major points of assembly for the exclusive use of physically disabled persons whose vehicle displays a distinguishing license plate as authorized by the California Department of Motor Vehicles_ The City Council may upon recommendation of the City Engineer, designate specially marked and posted on -street parking spaces for disabled persons pursuant to California Vehicle Code 21101, et seq. at the following facilities: Government buildings serving the public such as administration buildings, public employment offices, public libraries, police stations, etc. Hospitals and convalescent homes with more than 75-bed capacity. Medical facilities and doctors' offices staffed by a maximum of five practitioners. Zones shall be located to serve a maximum number of facilities on one block. Community service facilities such as senior citizens service centers, etc. Accredited vocational training and educational facilities where no off- street parking is provided for disabled persons. Employment offices for major enterprises employing more than 200 persons. Public recreational facilities including municipal swimming pools, recreation halls, museums, etc. Public theaters, auditoriums, meeting halls, arenas, stadiums with more than 300 seating capacity. Other places of assembly such as schools and churches_ 10. Commercial and/or office building(s) with an aggregate of more than 50,000 square feet of usable floor space. Zone shall be located to serve a maximum number of facilities on one block 11. Hotels catering to daily guests, maintaining a ground floor lobby and a switchboard that is operated 24 hours per day. 9 12 A hotel or apartment house catering to weekly or monthly guests and containing more than 30 separate living units. In addition, disabled persons parking spaces may be provided within all publicly owned, leased or controlled off-street parking facilities as specified in the General Requirements. General Requirements Each disabled persons parking space shall be indicated by blue paint and a sign (white on blue) showing the international symbol of accessibility (a profile view of a wheelchair with occupant). Where installed under the above criteria the total number of disabled persons curb parking spaces will be limited to 3% of the total number of on -street parking spaces available in the area and shall be distributed uniformly within the area. Disabled persons parking will not be installed at locations with a full-time parking prohibition. When a disabled persons parking zone is installed where a part-time parking prohibition is in effect, the disabled persons parking zone will have the same time restrictions as the part-time parking prohibition. The cost of installing disabled persons parking will be assumed by the City on public streets and public off-street parking facilities. In establishing on -street parking facilities for the disabled there shall be a reasonable determination made that the need is of an on -going nature. The intent is to prevent the proliferation of special parking stalls that may be installed for a short-term purpose but later are seldom used. Unjustified installation of such parking stalls unnecessarily increases the City's maintenance and operations costs, reduce available on - street parking for the general public, and detract from the overall effectiveness of the disabled persons parking program. Special Hardship Cases It is not the intention of the City to provide personal reserved parking on the public right-jof-way, especially in residential areas. however, exceptions may be made, in special hardship cases, provided all of the following conditions exists: (1) Applicant (or guardian) must be in possession of valid license plates for "disabled persons" or "disabled veterans." (2) The proposed disabled parking space must be in front of the applicant's (or guardian's) place of residence. 10 (3) Subject residence must not have useable off-street parking available or off-street space available that may be converted into disabled parking_ NOTE:It must be emphasized that such parking spaces do not constitute "personal reserved parking" and that any person with valid "disabled persons" license plates may park in the above stalls. Jha:p 11 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19, 2011 AGENDA ITEM NO. 14 EM TITLE: Resolution of the City Council of the City of National City authorizing the installation of a blue curb handicap parking space with sign in front of the residence at 2421 E. Beta Street (TSC Item No. 2011- 13) PREPARED BY: Stephen Manganiello, Traffic Engineerpt DEPARTMENT: Developm t S ices / PHONE: 619-336-4382 APPROVED BY: Engine EXPLANATION: See attached. FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Adopt the Resolution. BOARD / COMMISSION RECOMMENDATION: At their meeting on June 8, 2011 the Traffic Safety Committee approved the staff recommendation for installation of a blue curb handicap parking space with sign in front of 2421 E. Beta Street. ATTACHMENTS: xplanation .esolution 3. Staff Report to the Traffic Safety Committee (June 8, 2011) Explanation Mr. Leo Gantt, owner of 2421 E. Beta Street, requested a blue curb handicap parking space in front of his home. Mr. Leo Gantt has been living at this address with his brother Elbert Gantt since the 1970s. Both gentlemen have medical problems and have valid Disabled Person Placards from the State of Califomia Department of Motor Vehicles. Staff visited thesite and observed that there is one accessible parking space available on the property. However, since both residents are disabled it does not appear that an adequate number of accessible parking spaces are available on the property. Currently, there are no blue curb handicap parking spaces provided nearby. The City Council has adopted a policy, which is used to evaluate requests for handicap parking spaces. The City Council Policy requirements for "Special Hardship" cases are as follows: 1. Applicant (or guardian) must be in possession of valid license plates for "disabled persons" or "disabled veterans". This condition is met. 2. The proposed disabled parking space must be in front of the applicant's (or guardian's) place of residence. This condition is met. 3. The residence must not have useable off-street parking available or an off- street space available that maybe converted into disabled parking. Staff deferred to the Traffic Safety Committee as to whether or not this condition is met — since only one accessible parking space is provided on the property and two of the residents are disabled, the Traffic Safety Committee determined that there is a lack of accessible parking on the property and therefore, unanimously agreed that this condition is met. Since all three conditions of the City. Council's Disabled Persons Parking Policy are met for this "Special Hardship" case, staff recommends installation of a blue curb handicap parking space with sign in front of the residence at 2421 E. Beta Street. All work will be completed by City Public Works. TSC 2011-13 RESOLUTION NO. 2011 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE INSTALLATION OF A BLUE CURB HANDICAP PARKING SPACE WITH SIGN IN FRONT OF THE RESIDENCE LOCATED AT 2421 EAST BETA STREET WHEREAS, the owner of 2421 East Beta Street has requested a blue curb handicap parking space in front of his home because two of the occupants are disabled and have valid Disabled Person placards; and WHEREAS, after conducting an inspection and review, staff determined that all conditions have been met for the property to qualify for a blue curb handicap parking space; and WHEREAS, the Traffic Safety Committee approved staff's recommendation at its June 8, 2011 meeting. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the City Engineer to approve the installation of a blue curb handicap parking space with a sign in front of the residence at 2421 East Beta Street. PASSED and ADOPTED this 19th day of July, 2011. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia G. Silva City Attorney Ron Morrison, Mayor NATIONAL CITY TRAFFIC SAFETY COMMITTEE AGENDA REPORT FOR JUNE 8, 2011 ITEM TITLE: ITEM NO. 2011-13 REQUEST FOR INSTALLATION OF A BLUE CURB HANDICAP PARKING SPACE IN FRONT OF 2421 E. BETA STREET (BY L. GANTT) PREPARED BY: Stephen Manganiello, Engineering Division DISCUSSION: Mr. Leo Gantt, owner of 2421 E. Reta Street, has requested a blue curb handicap parking space in front of his home. Mr. Leo Gantt has been living at this address with his brother Elbert Gantt since the 1970s. Both gentlemen have medical problems and have valid Disabled Person Placards from the State of California Department of Motor Vehicles. Staff visited the site and observed that there is one accessible parking space available on the property. However, since both residents are disabled it does not appear that an adequate number of accessible parking spaces are available on the property. Currently, there are no blue curb handicap parking spaces provided nearby_ The City Council has adopted a policy, which is used to evaluate requests for handicap parking spaces. The City Council Policy requirements for "Special Hardship" cases are as follows: Applicant (or guardian) must he in possession of valid license plates for "disabled persons" or "disabled veterans". This condition is met. 2. The proposed disabled parking space must be in front of the applicant's (or guardian's) place of residence. This condition is met. 3. The residence must not have useable off-street parking available or an off-street space available that maybe converted into disabled parking. Staff defers to the Traffic Safety Committee as to whether or not this condition is met. It shall be noted that handicap parking spaces do not constitute "personal reserved parking" and that any person with valid "disabled persons" license plates may park in handicap spaces. STAFF RECOMMENDATION: Staff defers to the Traffic Safety Committee as to whether or not all three conditions of the City Council's Disabled Persons Parking Policy are met for this "Special Hardship" case_ 1 EXHIBITS: 1. Correspondence 2. Location Map 3. Photo 4. Disabled Persons Parking Policy 2011-13 2 j• 3 lJ11IF S<lezy c w m,9 /e to /2w j7/t (/ k 72d.«2 c Fie [ m< Pes,s2 »6 yxc 9 J e +t w3 meR i 22 e z/"" J , s 2 +« y.«yy 2,1 2 »z 2 /2 zee :§ /7(7 /6/ 2 2 7 —? 3 • 5 C 2 2 1-1 / ( / "'") 62.cz,w m 3 1 TYPE: N 1 TV: 92 DOB: 03/11/1935 ISSUED TO GANTT LEO 2421 BETA ST NATIONAL CITY CA 91950 Purchase of fuel (Business & Professions Code 13660): ' State law recluu es service stations to refuel a disabled person's vehicle at self-service rates, except self-service facilities with only one cashier. DEPARTMENT OF MOTOR VEHICLES DISABLED PERSON PLACARD IDENTIFICATION CARD/RECEIPT PLACARD NUMBER: D04154: EXPIRES: 06/30/2( DATE ISSUED_ 03/1°'^^ This identification card or facsimile copy is to be carried by the placard owner. Present it to any peace oIficer upon demand. Immediately notify DMV by mail of any change of address_ When parking, hang the placard from the rear view mirror, remove it from the mirror when driving_ When your placard is properly displayed, you may park in or on: CO: 37 * Disabled person parking spaces (blue zones) • Street metered zones without paying. Green zones without restrictions to time limits_ ' Streets where preferential parking privileges are g ivr residents and merchants. You may not park in or on: • Red, Yellow, White or Tow Away Zones. ' Crosshatch marked spaces next to disabled person parking spaces. It is considered misuse to: " Display a placard unless the disabled owner is being transported_ ' Display a placard which has been cancelled or revok ' Loan your placard to anyone, including family mernb4 Misuse is a misdemeanor (section 4461VC) and can result in cancellation or revocation of the placard, lo: of parking privileges, and/or fines_ 4 2011 HA y /: 56 Is PARKING PLACARD clo A 6Relan• IS W zm to hr• �E oad iv 0 1 k N W TiE COTi W d C 1; f 61a. E Y F DISABLED PERSON `�dhF;nut 1 A Public Service Agency 'CUSTOMER RECEIPT COPY**" * D I S ABL ED PERSON P L A C A R D*** PLACARD NUMBER: A165989 GRANTT ELBERT 2421 E BETA ST NATIONAL CITY CA 91950 CO: 37 L c it PTC: 1 TV: 91 �/(21 3c//P1E10 613 EXPIRES: 06/30/2013 DATE ISSUED: 05/27/11 MO/YR: SS DT FEES RECVD: 05/27/11 !1' DUE XRECVD - CASH CHCK - CRDT : 32 0000000 0004 NONE CS E10 052711 N1 A165989 DEPARTMENT OF MOTOR VEHICLES PLACARD IDENTIFICATION CARD THIS 4pWL'1FICATION CARD OR FACSIMILE COPY TS TO BE CARRIED BY THE PLACARD OWN — IT TO ANY PEACE OFFICER UPON DEMAND_ IMMEDIATELY NOTIFY DPI BY TikERAIL OF ANY CHANGE OF ADDRESS. WHEN PARKING, HANG THE PLACARD 5 T-JIE.R 1R VIEW MIRROR. REMOVE IT WHEN DRIVING. u is ervfce gency PLACARD#: EXPIRES: DOB: ISSUED: TYPE: A165989 06/30/2013 12/01 /1932 05/27/11 N1 PLACARD HOLDER: GRANTT ELBERT 2421 E BETA ST NATIONAL CITY CA 91950 PURCHASE OF FUEL (BUSINESS & PROFESSIONS CODE 13660): STATE LAW REQUIRES SERVICE STATIONS TO REFUEL A DISABLED PERSON'S VEHICLE AT SELF-SERVICE RATES, EXCEPT SELF-3FRVICE FACILITIES WITH ONLY ONE CASHIER. WHEN YOUR PLACARD IS PROPERLY *DISABLED PERSON PARKING SP *GREEN ZONES WITHOUT RESTRI PREFERENTIAL PARKING PRIVILJ YOU MAY NOT PARK TN/ON: "R *SPACES MARKED BY CROSSHATC IT IS CONSIDERED MISUSE: *TO IS BEING TRANSPORTED *TO DTSPI REVOKED *TO LOAN YOUR PLACARD TO MISUSE IS A MISDEMEANOR (SECTION 44 REVOCATION OF THE PLACARD. LOSS OF 6 F:4D; MAY PARK IN/ON: (BLUE {O,NE;'`\FMETERED ZONES WITHOUT PAYING "SONS TO 1 LI.M gS *STREETS WHERE ?;t2 V12 SIDENT S AND MERCHANTS. NES *WHITE OR YELLOW ZONES BLED PERSON PARKING SPACES_ D UNLESS THE DISABLED OWNER RICH HAS BEEN CANCELLED OR ;'INCLUDING FAMILY MEMBERS. 61VC) AND CAN RESULT IN CANCELLATION OR PARKING PRIVILEGES_ AND/OR FINES_ Location Map 2421 E. Beta St (looking north) 8 DISABLED PERSONS PARKING POLICY The purpose of a disabled persons parking zone is to provide designated parking spaces at major points of assembly for the exclusive use of physically disabled persons whose vehicle displays a distinguishing license plate as authorized by the California Department of Motor Vehicles_ The City Council may upon recommendation of the City Engineer, designate specially marked and posted on -street parking spaces for disabled persons pursuant to California Vehicle Code 21101, et seq. at the following facilities: T. Government buildings serving the public such as administration buildings, public employment offices, public libraries, police stations, etc. 2. Hospitals and convalescent homes with more than 75-bed capacity_ 3. Medical facilities and doctors' offices staffed by a maximum of five practitioners. Zones shall be located to serve a maximum number of facilities on one block. Community service facilities such as senior citizens service centers, etc Accredited vocational training and educational facilities where no off- street parking is provided for disabled persons_ Employment offices for major enterprises employing more than 200 persons. Public recreational facilities including municipal swimming pools, recreation halls, museums, etc. Public theaters, auditoriums, meeting halls, arenas, stadiums with more than 300 seating capacity. 9 Other places of assembly such as schools and churches. 10. Commercial and/or office building(s) with an aggregate of more than 50,000 square feet of usable floor space. Zone shall be located to serve a maximum number of facilities on one block. 11. Hotels catering to daily guests, maintaining a ground floor lobby and a switchboard that is operated 24 hours per day. 9 12_ A hotel or apartment house catering to weekly or monthly guests and containing more than 30 separate living units_ In addition, disabled persons parking spaces may be provided within all publicly owned, leased or controlled off-street parking facilities as specified in the General Requirements_ General Requirements Each disabled persons parking space shall be indicated by blue paint and a sign (white on blue) showing the international symbol of accessibility (a profile view of a wheelchair with occupant). Where installed under the above criteria the total number of disabled persons curb parking spaces will be limited to 3% of the total number of on -street parking spaces available in the area and shall be distributed uniformly within the area. Disabled persons parking will not be installed at locations with a full-time parking prohibition. When a disabled persons parking zone is installed where a part -tithe parking pohibition is in effect, the disabled persons parking zone will have the same time restrictions as the part-time parking prohibition. The cost of installing disabled persons parking will be assumed by the City on public streets and public off-street parking facilities. In establishing on -street parking facilities for the disabled there shall be a reasonable determination made that the need is of an on -going nature The intent is to preventthe proliferation of special parking stalls that may be installed for a short-term purpose but later are seldom used. Unjustified installation of such parking stalls unnecessarily increases the City's maintenance and operations costs, reduce available on - street parking for the general public, and detract from the overall effectiveness of the disabled persons parking program. Special Hardship Cases It is not the intention of the City to provide personal reserved parking on the public right-jof-way, especially in residential areas. However, exceptions may be made, in special hardship cases, provided all of the following conditions exists: (1) (2) Applicant (or guardian) must be in possession of valid license plates for "disabled persons" or "disabled veterans." The proposed disabled parking space must be in front of the applicant's (or guardian's) place of residence. 10 (3) Subject residence must not have useable off-street parking available or off-street space available that may be converted into disabled parking. NOTE It must be emphasized that such parking spaces do not constitute "personal reserved parking" and that any person with valid "disabled persons" license plates may park in the above stalls_ Jha p 11 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19, 2011 AGENDA ITEM NO. 15 EM TITLE: Resolution of finding of consistency with the Downtown Specific Plan and approval of a Conditional Use Permit for the expansion of a gas station convenience store and the sale of alcohol for off -site consumption at 10 Osborn Street and rescinding Resolution 2011-148. (Applicant Hagman & Associates) (Case File 2011-16 DSP, CUP) PREPARED BY: Martin Reeder PHONE: 336-4313 EXPLANATION: The City Council conducted a hearing on this item at the July 5, 2011 City Council meeting. Changes were made to Conditions of Approval adding language requiring trash enclosure locks (condition 13) and referencing applicable sections of the Municipal Code on required signage (condition 20). After the resolution was adopted, Council directed staff to also add language reflecting changes made to Council Policy 707 regarding Conditions of Approval for the sale of alcohol. The attached resolution reflects this change in Condition No. 18 and is needed to take action on the item. This amended resolution includes the changes to conditions no. 13 and 20 and would rescind the previous resolution. DEPARTMENT: Develop er�t Svcs/Planning. APPROVED B,Y: FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: APPROVED: Finance MIS ENVIRONMENTAL REVIEW: Categorically Exempt pursuant to Class 1 Section 15303 (New Construction or conversion of small structures) ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt the Resolution BOARD 1 COMMISSION RECOMMENDATION: N/A TACHMENTS: volution RESOLUTION NO. 2011 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY FINDING CONSISTENCY WITH THE DOWNTOWN SPECIFIC PLAN AND APPROVING A CONDITIONAL USE PERMIT FOR THE EXPANSION OF A GAS STATION CONVENIENCE STORE AND THE SALE OF ALCOHOL FOR OFF -SITE CONSUMPTION at 10 OSBORN STREET, AND RESCINDING RESOLUTION 2011-148 WHEREAS, the Planning Commission considered a Downtown Specific Plan Consistency Review and Conditional Use Permit for the expansion of a gas station convenience store and the sale of beer, wine and distilled spirits for off -site consumption at 10 Osborn Street at a duly advertised public hearing held on June 6, 2011, 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. 2011-16 DSP, CUP maintained by the City, and incorporated herein by reference along with evidence and testimony from said hearing; and WHEREAS, the Planning Commission voted to approve the Downtown Specific Plan Consistency Review and Conditional Use Permit for the expansion of a gas station convenience store and the sale of beer, wine and distilled spirits for off -site consumption at 10 Osborn Street by a vote of four to three in favor of approval; and WHEREAS, a Notice of Determination was before the City Council on June 21, 2011, and a public hearing was set for July 5, 2011; and WHEREAS, the City Council considered a Downtown Specific Plan Consistency Review and Conditional Use Permit for the expansion of a gas station convenience store and the sale of beer, wine and distilled spirits for off -site consumption at 10 Osborn Street at a duly advertised public hearing held on July 5, 2011, at which time oral and documentary evidence was presented; and WHEREAS, at said public hearing, the City Council considered the staff report contained in Case File No. 2011-16 DSP, CUP maintained by the City, and incorporated herein by reference along with evidence and testimony from said hearing; and WHEREAS, this action is taken pursuant to all applicable procedures required by state and City laws; and WHEREAS, the action recited herein is found to be essential for the preservation of public health, safety, and general welfare. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that the testimony and evidence presented to the City Council at the public hearing held on July 5, 2011, support the following findings: 1. That the site for the proposed use is adequate in size and shape, since the addition to the existing mini -mart can be adequately constructed on the lot with all required setbacks and parking needs met. 2. That the site has sufficient access to streets and highways that are adequate in width and pavement type to carry the volume and type of traffic generated by the proposed Resolution No. 2011 — July 19, 2011 Page Two use, since the gas station is existing and the expansion of an existing mini -mart and the addition of alcohol sales is not expected to result in an appreciable increase in traffic. 3. That the proposed use will not have an adverse effect upon adjacent or abutting properties, since the mini -mart already exists and is located in a developed commercial area. Also, conditions of approval controlling the sale of alcohol will reduce the potential for adverse effects. 4. That the proposed use is deemed essential and desirable to the public convenience and welfare, since it will contribute to the viability of the service station, an established and allowed use in the applicable commercial zone. 5. That the design enhancement of the property will contribute to the viability of an existing older business and to other local businesses along the National City Boulevard commercial corridor. 6. That the project complies with the maximum height, minimum setback, maximum floor - area -ratio, maximum density (where applicable), minimum build -to -line, and minimum parking requirements and standards of the Specific Plan. 7. That public convenience and necessity may be served by the proposed use of the property for the retail sales of alcoholic beverages pursuant to law. BE IT FURTHER RESOLVED that the application for Conditional Use Permit is approved subject to the following conditions: GENERAL 1. This Conditional Use Permit authorizes the 820 square -foot expansion of a mini -mart and for the sale of beer and wine for off -site consumption at Valero located at 10 Osborn Street. Except as required by Conditions of Approval, all plans submitted for permits associated with the project shall conform with Exhibit "A", Case File No. 2011-16 DSP, CUP, dated April 7, 2011. 2. Within four (4) days of approval, pursuant to Fish and Game Code 711.4 and the Califomia 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 Division. 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. This permit shall expire if the use authorized by this Resolution is discontinued for a period of 12 months or longer. This permit may also be revoked, pursuant to provisions of the Land Use Code, if discontinued for any lesser period of time. Resolution No. 2011 — July 19, 2011 Page Three 5. This Conditional Use Permit may be revoked if the operator is found to be in violation of Conditions of Approval. 6. Before this Conditional Use Permit shall become effective, the applicant and the property owner shall both 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 Conditional Use Permit. 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 Conditional Use Permit are binding on all present or future interest holders or estate holders of the property. The Notice of Restriction shall be approved as to form by the City Attorney and signed by the Development Services Director prior to recordation. BUILDING 7. Plans submitted for construction shall comply with the 2010 editions of the California Building, Electrical, Mechanical, Plumbing, Energy, Fire, Residential and Green Codes. ENGINEERING 8. The owner shall remove and replace all sidewalks as marked out in the field. 9. The owner shall remove and replace the existing alley apron located near the southwesterly property corner as marked out in the field. 10. The owner shall remove the existing speed hump that was placed in the alley on the westerly side of the property. 11. All monitoring wells existing on site shall be protected in place. FIRE 12. Approved fire extinguishers shall be installed to include the new proposed portion of the tenant improvement described as containing 2,382 square feet. PLANNING 13. A detailed landscape and underground irrigation plan, including plant species, methods of planting, etc., shall be submitted for review and approval by the Planning Division prior to a building permit. The landscape plan shall reflect the use of drought tolerant planting and water conserving irrigation devices, as well as details for hardscape on site, including parking lot striping. The plans shall also show details for the trash enclosure, including a locking door and cover. The finish of the trash enclosure shall be painted to match the mini - mart building on site. Resolution No. 2011 — July 19, 2011 Page Four 14. The sale of alcoholic beverages shall be limited to between the hours of 6:00 a.m. and 12:00 a.m., seven days a week. 15. Alcohol products stored outside of the coolers shall be located on the shelving unit farthest from the front doors. 16. Coolers containing alcohol products shall be locked and made inaccessible to the public between the hours of 12:00 a.m. and 6:00 a.m. 17. The sale of beer or malt beverages in quantities of quarts, 22 ounce, 32 ounce, 40 ounce, or similar size containers is prohibited. 18. No beer and malt beverage products shall be sold of less than six-pack quantities per sale. There shall be no sale of single cans or bottles. Sales of three packs of 24 oz beer cans will be permitted at such time as the City Council enacts a policy permitting such sales. 19. Flavored malt beverages, also known as premium malt beverages and flavored malt coolers, and sometimes commonly referred to as wine coolers, may be sold only by four - pack or other manufacturer's pre -packaged multi -unit quantities. 20. Permittee shall post signs on the exterior building walls in compliance with Chapter 10.30.070 of the National City Municipal Code. Additionally, the permittee shall post signs, to be approved by the Planning Division, at each entrance to the applicant's premises and parking lot, prohibiting loitering and consumption of alcohol on the premises and adjacent property under his control. Said signs shall not be less than 17 inches by 22 inches (17" x 22") in size, with lettering not less than one inch in height. The signs shall read with reference to the specific applicable Municipal Code section on the sign as follows: "No open alcoholic beverage containers are allowed on these premises. No loitering is allowed (NCMC 10.30.070 A)." 21. The consumption of alcoholic beverages is prohibited on the subject premises, and on all parking lots and outbuildings, and any property or adjacent property under the control of the applicant. 22. All cups and containers shall be sold at or above prevailing prices and in their original multi - container packages of no fewer than 12, and no cups or containers shall be given free of charge. 23. Ice may be sold only at or about prevailing prices in the area and in quantities of not less than three pounds per sale. Ice shall not be provided free of charge. 24. Exterior advertising and signs of all types, promoting or indicating the availability of alcoholic beverages, including advertising/signs directed to the exterior from within, are prohibited. Interior displays of alcoholic beverages and signs, which are clearly visible to the exterior, shall constitute a violation of this condition. Resolution No. 2011 — July 19, 2011 Page Five 25. The quarterly gross sales of alcoholic beverages shall not exceed the gross sales of all other commodities during the same period. The applicant shall at all times keep records which reflect separately the gross sales of alcoholic beverages and the gross sales of all other items. Said records shall be kept no less frequently than on a quarterly basis and be made available to the City Finance Department and any peace officer of the California Department of Alcoholic Beverage Control upon demand. 26. All sellers and servers of alcohol shall receive Responsible Beverage Service and Sales (RBSS) training, including all owners, and managers. The RBSS training must be certified by the Department of Alcoholic Beverage Control (ABC). Proof of completion of an approved RBSS program must be provided prior to issuance of a National City business license. POLICE 27. Permittee shall comply with all regulatory provisions of the California Business and Professions Code that pertain to the sale, display, and marketing or merchandising of alcoholic beverages. BE IT FURTHER RESOLVED that Resolution No. 2011-148 adopted on July 5, 2011, is rescinded. BE IT FURTHER RESOLVED that copies of this Resolution shall be transmitted forthwith to the applicant. 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 19th day of July, 2011. Ron Morrison, Mayor ATTEST: APPROVED AS TO FORM: Michael R. Dalla, City Clerk Claudia G. Silva City Attorney CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19, 2011 AGENDA ITEM NO. 16 EM TITLE: Resolution of the City Council of National City awarding a contract to Green Mechanical, in the amount not -to - exceed $415,038.00, for construction improvements for the National City Chiller Replacement Project, Specification 11-01 and authorize a contingency amount of $41,503 (10%). (funded Energy Efficiency Community Development Block Grant) PREPARED BY: Barby Tipton PHONE: 336-4583 EXPLANATION: See attached DEPARTMENT: Devel APPROVED B -Engineering orks FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: Funds are available in a reimbursable expenditure accou4296-409-500-598-1591 (Chiller Replacem nt) ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: inance MIS STAFF RECOMMENDATION: Adopt the Resolution. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: 1. Explanation 2. Resolution 3. Bid Opening Sheet EXPLANATION: On March 16, 2010, Council approved a self -funded Comprehensive Energy Retrofit Program agreement wherein the City acquired and financed equipment and services from Honeywell Building Solutions to reduce energy use and/or to make for a more efficient use of energy. The payments to Honeywell Building Solutions for the upgraded equipment and services came from the realized energy savings. This overall Comprehensive Energy Retrofit Program had two phases. Phase 1 which Honeywell Building Solutions completed included items such as energy -efficient lighting, boiler replacement, cooling tower, solar thermal installation, building automation system and street lighting retrofit. In June 2009, in preparation for Phase 2 of the self -funded Comprehensive Energy Retrofit Program, the Public Works Department applied for and received an Energy Efficiency Community Development Block Grant (EECDBG) in the amount of $561,700 to replace the 40-year old chillers. These chillers are used to cool the Civic Center. The service life cycles for these types chillers is typically 20 years. The useful life of the chillers has long since passed. The remaining work planned under the self -funded Comprehensive Energy Retrofit Program, Phase 2 included: - Part 2A: Chiller Replacement - Part 2B: Chiller Control System (aka Air side) The Phase 2A, Chiller Replacements Project, is an energy retrofit project. The scope of work includes the following: • Demolition work - includes removal of the existing chillers, pumps and piping systems. • Provides two (2) energy efficient replacement chillers. • Provides new variable primary flow chiller, pumps & associated controls. • Provide premium efficiency motors & variable -frequency drives (vfd) on new pumps and motors • Provide refrigerant monitoring system along with ventilation exhaust system. • Electrical work associated with the proposed mechanical changes. • Provides for a temporary chiller including all necessary hot tapping associated with this work to maintain proper cooling for the building at all times if and when necessary. The EECDBG grant required that Honeywell Building Solutions be a sub -recipient of the grant; Honeywell Building Solutions declined. Because the grant also required that the Chiller portion be awarded by August 13, 2011, the City's only option was to follow the Public Contract Code requirements of advertising the project and awarding the contract to the lowest bidder. It was anticipated that Honeywell Building Solutions would complete Phase 2 (Part A & B) but because Honeywell Building Solutions would not accommodate the sub - recipient provision, the City must publicly bid and award both Part A & B of Phase 2 in accords with the Public Contract Code. On June 30, 2011, only one bid was received for Phase 2A, Chiller Replacement Project. The bidder was Green Mechanical. The bid amount was $415,038 and staff requests a contingency amount of $41,503 (10%) to cover any unforeseen changes. Phase 2B, is the Chiller Control System upgrade that is associated with Chiller Replacement project. It is important to note that Phase 2B (Chiller Control System upgrades) must also be in place in order to realize the full energy savings as required by the grant. Without Phase 2B, the City will not realize the energy requirements of the grant for Phase 2A. It is anticipated that the cost for Phase 2B, the Chiller Control System Project is approximated at $400,000. As a result of replacing the existing chillers with new efficient chillers and installing the control system, an overall annual savings of $24,009 is expected. This includes an annual energy savings of $9,961 and $14,097 in deferred capital costs associated with replacing the aging equipment'. Once Phase 2B is complete, the energy savings will total $17,912 annually. Funding is available from the Civic Center Seismic Retrofit appropriation and the City is researching the possibility of using 2011 Tax Allocation Bond funds to augment the costs. Staff recommends that the Resolution be adopted awarding the contract to Green Mechanical and appropriating the amount to cover the contract plus 10% contingency for a total $456,541 for the construction of the improvements as outlined above for the Chiller Replacement Project (Phase 2A) with the understanding that Phase 2B will need to be funded in the approximated amount of $400K in order to receive the reimbursable grant which is funding this contract. Preliminary Energy Audit Report —by Honeywell Building solutions, January 14, 2009 RESOLUTION NO. 2011 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AWARDING A CONTRACT TO GREEN MECHANICAL IN AN AMOUNT NOT TO EXCEED $415,038 FOR PHASE 2A OF THE NATIONAL CITY CHILLER REPLACEMENT PROJECT, APPROPRIATING $41,503 FOR CONTINGENCIES, AND AUTHORIZING THE MAYOR TO EXECUTE SAID CONTRACT WHEREAS, the Engineering Department, in open session on June 30, 2011, did publicly open, examine, and declare one sealed bid for Phase 2A of the National City Chiller Replacement Project. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby awards the contract for Phase 2A of the National City Chiller Replacement Project to the lowest responsive, responsible bidder, to wit: GREEN MECHANICAL BE IT FURTHER RESOLVED by the City Council of the City of National City that the Mayor is hereby authorized to execute a contract in the not to exceed amount of $415,038 with Green Mechanical for Phase 2A of the National City Chiller Replacement Project. Said contract is on file in the office of the City. BE IT FURTHER RESOLVED that the City Council of the City of National City authorizes the appropriation of an additional $41,503 allocated for contingencies. PASSED and ADOPTED this 19th day of July, 2011. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia G. Silva City Attorney CALIFORNIA + NATIONAL CITIT InvINCORPORATED BID OPENING SPECIFICATION NUMBER: 11-01 PROJECT TITLE: NATIONAL CITY CHILLER REPLACEMENT PROJECT TIME: 3:00 P.M. ESTIMATE: $415,000 PROJECT ENGINEER: BARBY TIPTON NO. BIDDER'S NAME (PAGE 8) BID AMOUNT (PAGE 10 ) ADDENDA (PAGE 8) BID SECURITY (PAGE 12 - CHECK (PAGE 13 - BOND) 1. Green Building Technologies, Inc. dba Green Mechanical Contractors $414,038.00 #1 Check 930 S. Andreasen Drive, Ste. A Escondido, CA 92029 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19, 2011 AGENDA ITEM NO. 17 EM TITLE: Resolution of the City of National City approving a residual receipts loan of $717,500 from HOME Investment Partnerships Program funds to T&T Community Properties, LLC for the acquisition and rehabilitation of an 8-unit apartment complex at 138 Norton Ave, National City and requiring affordable rent restrictions on 8 units for a period of 55 years PREPARED BY: Alfredo Ybarr J DEPARTMENT: Administrative Services PHONE: (619) 336-4279 APPROVED BY � EXPLANATION: This action authorizes the allocation of $717,500 in federal HOME Investment Partnerships Program (HOME) funds to acquire and rehabilitate an eight unit rental housing project located at 138 Norton Avenue, National City. In exchange for the $717,500 loan, T & T Community Properties LLC, will maintain affordable rents on eight units for 55 years for very low and low income families earning at or below 50 percent, 60 percent and 80 percent of the area median income (AMI). The total sources of financing for the property purchase and substantial rehabilitation include the $717,500 loan from the City of National City, a new first mortgage of $565,000, deferred developer fee of $57,000, and other equity of $31,850. The total acquisition and rehabilitation cost is $1,371,350. FINANCIAL STATEMENT: APPROVED: rnance ACCOUNT NO. APPROVED: MIS The project will be funded with $S72,5oo.00 allocated by City Council Resolution 2011-98 to the HOME Housing Development Fund that includes $75, 167 in Program income and $145,000.00 of $537,963.00 allocated by City Resolution zoo6-56 totAsst. Production -Affordable Housing. ENVIRONMENTAL REVIEW: The Aloha Terrace Apartment Project located at 138 Norton Avenue, National City, CA is exempt from National Environmental Policy Act (NEPA) requirements per Section 58.34(a) (12). ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt resolution BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: 1. Background 2. Loan Agreement RESOLUTION NO. 2011 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING A RESIDUAL RECEIPTS LOAN OF $717,500 FROM HOME INVESTMENT PARTNERSHIPS PROGRAM FUNDS TO T&T COMMUNITY PROPERTIES, LLC, FOR THE ACQUISITION AND REHABILITATION OF AN EIGHT -UNIT APARTMENT COMPLEX LOCATED AT 138 NORTON AVE, NATIONAL CITY AND REQUIRING AFFORDABLE RENT RESTRICTIONS ON SEVEN UNITS FOR A PERIOD OF 15 YEARS WHEREAS, the City of National City administers the HOME Investment Partnerships (HOME) Program; and WHEREAS, the City has established a need for affordable housing, and has established the rehabilitation of the City's housing stock as a priority; and WHEREAS, the City has identified $717,500 of HOME funds to finance affordable housing from FY2005-2006 and FY 2010-2011 that are available for allocation; and WHEREAS, on May 11, 2011, T & T Community Properties, LLC, entered into a contract to purchase said property for $810,500; and WHEREAS, T & T Community Properties, LLC, will obtain a new loan of $565,000 from Clearinghouse CDFI and requires the City's loan to complete the purchase of said property, and finance $305.300 in rehabilitation hard costs, a deferred developer fee of $57,000 and other costs; and WHEREAS, three housing units of said property will be restricted to rents affordable to households at or below 50% of the Area Median Income (AMI) for a period of 15 years; and WHEREAS, four housing units of said property will be restricted to rents affordable to households at or below 60% AMI for a period of 15 years. WHEREAS, one housing unit of said property will be restricted to rents affordable to households at or below 80% AMI for a period of 15 years. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby y approves gap financing through a HOME Program loan in the amount of $717,500, utilizing HOME Investment Partnership Program funds. BE IT FURTHER RESOLVED that the Mayor is hereby authorized to execute any necessary documents for the financing of the project, including loan agreements, amendments thereto, deeds and subordination agreements, subject to review by legal counsel. --- Signature Page to Follow --- Resolution No. 2011 — Page Two PASSED and ADOPTED this 19th day of July, 2011. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia G. Silva City Attorney Attachment 1 BACKGROUND The City of National City has received a loan request from T & T Community Properties LLC (T & T) for $717,500 to assist with the acquisition and rehabilitation of an eight -unit rental housing project located at 138 Norton Avenue, National City. T & T would buy the 8 two -bedroom unit property for approximately $101,000 per unit (not to exceed appraised value). The goal is to significantly enhance the curb appeal of the property as a catalyst for improvements by other nearby property owners. Constructed in 1960, the building on the property consist of eight 2-bedroom units located at 138 Norton Avenue in a residential pocket just northwest of the corner of Palm and 4th in National City. The vicinity is a mix of single-family and multi -family housing with the long-term quality of the area tied to how well the multi -family is cared for and managed. The health and desirability of the single-family homes as owner - occupied housing is directly tied to the multi -family housing nearby. It is imperative that the multi -family be kept up in order to maintain the quality of the neighborhood. All residents appear to be income eligible and no permanent displacement is anticipated. Rehabilitation The proposed HOME loan of $717,500 will be used to acquire and rehabilitate the property. Funds, totaling $305,300, will be used for the rehabilitation of individual unit interiors and exterior building improvements. The cost of rehabilitation improvements per unit is $38,163. The contemplated rehabilitation includes: 1. New Roof covering, roof insulation to R-21 or higher, roof drains/gutters 2. Improved water quality control, permanent BMPS 3. Installation of new windows and doors with high performance glazing. 4. Improved window shading 5. Code compliant balcony railings and stair handrails 6. Balcony surface refinish. 7. Installation of high efficiency lighting. 8. New stucco including exterior acrylic finish for water intrusion protection. 9. Appropriate landscaping for solar heating and shading, low water usage and visual enhancement. 10. Interior improvements to include, in most units as needed: heaters, plumbing fixtures, flooring, bath and kitchen cabinets, tub enclosures, countertops, painting, light fixtures, and drywall damage repair & asbestos abatement. 11. Electrical safety improvements, smoke detection, and make up air for interior gas appliances. 12. Functional common area improvements for usable outdoor areas for residents, a new entry treatment. 13. Re-routing exterior plumbing supply lines to inside the walls, new common water heater. Page 1 of 2 Financing and Loan Terms The total sources of financing for the property purchase and substantial rehabilitation include the $717,500 loan from the City of National City, a new first amortized loan of $565,000 from Clearinghouse, deferred developer fee of $57,000, and other equity of $31,850. The total acquisition and rehabilitation costs are $1,371,350. The City loan will be a two (2%) percent simple interest loan with residual receipt payments at 30%0 of cash flow beginning on the following November after the closing date. Any unpaid balance will be due at the end of the 55 year term. Unit Affordability In exchange for the $717,500 loan, T & T will acquire, improve, and rehabilitate the units to a safe and decent standard and maintain affordable rents for 55 years for the benefit of low-income families earning at or below 50 percent and 60 percent of the area median income (AMI). Three - 2 bedroom units will be restricted for families at or below 50 percent of the area median income (AMI), four- 2 bedroom units for families at or below 60 percent of the AMI and one- 2 bedroom unit for families at 80% AMI. The restricted unit at 80% will be utilized for an on -site manager. Area Median Income (AMI) No. of units Maximum income (family of four) Estimated Unit Rents 50% AMI 3 $41,200 $898 60% AMI 4 $49,440 $1,000 80% AMI 1 $54,250 $1,000 The current market rent for an unrestricted two bedroom unit in National City is approximately $1,150 per month. Linkage to the National City Strategic Plan The acquisition and rehabilitation of the subject property supports the City's "Develop Affordable Housing by Leveraging 20% Set Aside, Home Funds, and Other Affordable Housing Finance Programs" strategic initiative to help residents find safe and affordable housing. Approval of this proposal will create affordable housing for low-income families in the region. Approval of the resolution by the City Council will allow staff to enter into a loan agreement and proceed with contract negotiations, and upon completion of the negotiations, execute all loan documents with T & T Community Partners, LLC. Page 2 of 2 Attachment 2 ACQUISITION, REHABILITATION AND PERMANENT FINANCING LOAN AGREEMENT Project No. THIS ACQUISITION, REHABILITATION AND PERMANENT FINANCING LOAN AGREEMENT ("Agreement") is dated as of the day of July, 2011, by and between the City of National City ("City") and T & T Community Properties, LLC, a California limited liability company ("Borrower") as follows: RECITALS A. Borrower intends to acquire, rehabilitate and permanently finance that certain real property located at 138 Norton Avenue, National City, California ( "Property"), which is more particularly described in Exhibit "A," attached hereto and made a part hereof Borrower intends to acquire, rehabilitate and permanently finance the Property using a loan from the City in the original principal amount of up to Seven Hundred Seventeen Thousand Five Hundred and No/100 Dollars ($717,500.00) ("City Loan"). The City Loan is comprised entirely of HUD HOME funds all of which shall be used for IIOME eligible purposes. B. 'The City Loan shall be evidenced by the City Note, which shall bear interest at the rate of two percent (2.0%) simple interest per annum and will be repayable out of residual receipts on the terms and conditions set forth in the City Note. This Agreement and the City Note shall be secured by the Deed of Trust. C. As soon as is reasonably practicable after the Closing, and in no event later than fifteen (15) days after the Closing, Borrower shall begin rehabilitation of the Property. Borrower intends to rehabilitate all eight (8) of the dwelling units at the Property (collectively, the "Project"). Borrower shall rehabilitate and operate all eight (8) of those dwelling units on the Property as affordable housing units (the "Affordable Units") which shall be rent and occupancy restricted for 55-years, as provided herein. One (1) of the Affordable Units shall be a manager's unit and will be rent or occupancy restricted at eighty percent (80%) of area median income, as set forth in the Declaration. D. Borrower intends to finance the Project using: (i) the City Loan; (ii) a rehabilitation and permanent loan made by Clearinghouse CDFI in the original principal amount of Five Hundred Sixty -Five Thousand and No/100 Dollars ($565,000.00) secured by the Property ("Clearinghouse Loan"); and (iii) deferral of Fifty -Seven Thousand and No/100 Dollars ($57,000.00) of Borrower's developer fee ("Deferred Developer Fee"). This Agreement is being executed in connection with, and the City's obligation to make the City Loan is contingent on Borrower closing on the Clearinghouse Loan and deferring the Deferred Developer Fee. E. The City Loan will be funded with IIUD HOME Program Funds and shall be governed by all HUD HOME Program regulations whether or not specifically referenced in this Agreement and shall fund only project costs as set forth in 24 CFR 92.206. The eight (8) Affordable Units shall all be two -bedroom units. The Affordable Units are to be operated as 1 affordable housing. Seven (7) units shall be HOME Affordable Units and as set forth in the Declaration. All of the Affordable Units shall be restricted as set forth in the Declaration. All eight (8) Affordable Units shall be rent and occupancy restricted as set forth in the Declaration for fifty-five (55) years. The obligations of Borrower under the Declaration shall be independent of, and in addition to, Borrower's obligations under this Agreement, and repayment of the City Loan shall not terminate or otherwise affect the affordability restrictions set forth in the Declaration. The HOME assisted Affordable Units will be rent restricted under the provisions of the IIOME requirements for a period of fifteen (15) years. During the remaining forty (40) years the Affordable Units that were restricted under the IIOME Program requirements will continue to be rent and occupancy restricted under the Declaration. F. The initial rehabilitation of the Project shall be completed and the Affordable Units shall be 90% or more occupied on or before twelve (12) months after the Closing. Time is of the essence. Completion of the Project shall occur upon the issuance of a Certificate of Completion and the recordation of a Notice of Completion by the Borrower. Borrower shall provide the City with a copy of the recorded Notice of Completion for all units within the Project within five (5) days of Borrower's receipt of the same. G. The Project shall be rehabilitated in accordance with all applicable law, rules, regulations and conditions of approval from the U.S. Department of Housing & Urban Development ("HUD"), the City, the various lenders involved with the Project and the requirements of this Agreement. NOW, THEREFORE, in furtherance of the recitals stated above, the mutual covenants set forth below, the Parties agree, promise and declare as follows: DEFINITIONS The following terms shall have the meanings set forth below: "Affordable Units" shall have the meaning ascribed to it in Recital C. "Agreement" means this Acquisition, Rehabilitation and Permanent Financing Loan Agreement. "Borrower" means T & T Community Properties, LLC, a California limited liability company. Nothing contained herein shall prohibit Borrower from changing its name provided that therc is no change in the composition and make up of Borrower, without the prior written consent of the City. "City" means the City of National City. "City Loan" means the acquisition, rehabilitation and permanent financing loan from the City to Borrower in the original principal amount of Seven Hundred Seventeen Thousand Five Hundred and No/100 Dollars ($717,500.00). 2 "City Note" means that certain promissory note to be executed by Borrower (concurrently with the Closing) in favor of the City evidencing the City Loan, in the form attached hereto as Exhibit "B". "Clearinghouse Loan" means the existing rehabilitation and permanent financing loan made by Clearinghouse CDFI to Borrower in the original principal amount of Five Hundred Sixty -Five Thousand and No/I00 Dollars ($565,000.00) secured by the Property. "Closing" means the closing of the Escrow, which shall in no event be later than September 30, 2011. If Closing does not occur on or before September 30, 2011, then all rights and liabilities of the City and Borrower with respect to this Agreement shall immediately terminate. "Declaration" means the declaration of covenants, conditions and restrictions, in the form and format attached hereto as Exhibit "D", which shall be recorded as an encumbrance against the Property concurrently with the Closing. "Deed of Trust" means the deed of trust securing the Declaration and the City Loan, in the form and format attached hereto as Exhibit "C," which shall be recorded as an encumbrance against the Property concurrently with the Closing. "Defective Work" means all work, material, or equipment that is unsatisfactory, faulty, incomplete, or does not conform to industry standards, construction documents, or approved drawings. "Deferred Developer Fee" means Fifty -Seven Thousand and No/100 Dollars ($57,000.00) of the developer fee which is being deferred. "Environmental Laws" means any federal, state or local law, statute, ordinance or regulation pertaining to environmental regulation, contamination or cleanup of any Hazardous Materials, including, without limitation, (i) the California Hazardous Waste Control Act (California Health and Safety Code §25100 et seq.), (ii) the Carpenter -Presley -Tanner Hazardous Substance Account Act (California Health and Safety Code §25300 et seq.), (iii) the Hazardous Materials Release Response Plans and Inventory (California Ilea1th and Safety Code §25500 et seq.), (iv) Underground Storage of Hazardous Substances (California Health and Safety Code, §25280 et seq.), (v) Article 9 or Article 11 of Title 22 of the California Administrative Code, Division 4, Chapter 20, (vi) the Safe Drinking Water and Toxic Enforcement Act (California Health and Safety Code, §25249 et seq.), (vii) the Porter -cologne Water Quality Control Act (California Water Code, § 13000 et seq.), (viii) the Federal Water Pollution Control Act (33 U.S.C. §1271 et seq.), (ix) the Resource Conservation and Recovery Act (42 U.S.C. §6901 et seq.), (x) the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. §9601 et seq.), (xi) the Safe Drinking Water Act (14 U.S.C. §300f et seq.), (xii) the Hazardous Materials Transportation Act (49 U.S.C. §5101 et seq.), (xiii) the Toxic Substances Control Act (15 U.S.C. §2601 et seq.), (xiv) the Federal Insecticide, Fungicide and Rodenticide 3 Act (7 U.S.C. §136, et seq.), (xv) the Clean Air Act, 42 U.S.C. (§7401 et seq.) or (xvi) any state or federal lien or "superlien" law, any environmental cleanup statute or regulation, or any permit, approval, authorization, license, variance or permission required by any governmental authority having jurisdiction. "Escrow" means the escrow depository and disbursement services to be performed by Escrow Agent pursuant to the provisions of this Agreement. "Escrow Agent" means First American Title Company located at 4380 La Jolla Village Drive, Suite 110, San Diego, CA 92122. "Hazardous Materials" means: (i) Those substances included within the definitions of "hazardous substance," "hazardous waste," "hazardous material," "toxic substance," "solid waste," "pollutant" or "contaminant" in the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. §9601 et seq.); the Resource Conservation and Recovery Act (42 U.S.C. §6901 et seq.); the Clean Water Act (33 U.S.C. §2601 et seq.); the Toxic Substances Control Act (15 U.S.C. §9601 et seq.); the Hazardous Materials Transportation Act (49 U.S.C. § 1801 et seq.); or under any other Environmental Laws; (ii) Those substances included within the definitions of "Extremely IIazardous Waste," "Hazardous Waste," or "Restricted Hazardous Waste," under §§25115, 25117 or 25122.7 of the California Health and Safety Code, or is listed or identified pursuant to §§25140 or 44321 of the California Health and Safety Code; (iii) Those substances included within the definitions of "Hazardous Material," "Hazardous Substance," "Hazardous Waste," "Toxic Air Contaminant" or "Medical Waste" under §§25281, 25316, 25501, 25501.1, 25023.2 or 39655 of the California Health and Safety Code; (iv) Those substances included within the definitions of "Oil" or a "Hazardous Substance" listed or identified pursuant to §311 of the Federal Water Pollution Control Act, 33 U.S.C. § 1321, as well as any other hydrocarhonic substance or by-product; (v) Those substances included within the definitions of "Hazardous Waste," Extremely Hazardous Waste" or an "Acutely Hazardous Waste" pursuant to Chapter 11 of Title 22 of the California Code of Regulations; (vi) Those substances listed by the State of California as a chemical known by the State to cause cancer or reproductive toxicity pursuant to §25249.9(a) of the California Health and Safety Code; (vii) Any material which due to its characteristics or interaction with one or more other substances, chemical compounds, or mixtures, damages or threatens to damage, health, safety, or 4 the environment, or is required by any law or public agency to be remediated, including remediation which such law or public agency requires in order for the property to be put to any lawful purpose; (viii) Any material whose presence would require remediation pursuant to the guidelines set forth in the State of California Leaking Underground Fuel Tank Field Manual, whether or not the presence of such material resulted from a leaking underground fuel tank; (ix) Pesticides regulated under the Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. §136 et seq.; (x) Asbestos, PCBs, and other substances regulated under the Toxic Substances Control Act, 15 U.S.C. §2601 et seq.; (xi) Any radioactive material including, without limitation, any "source material," "special nuclear material," "by-product material," "low-level wastes," "high-level radioactive waste," "spent nuclear fuel" or "transuranic waste" and any other radioactive materials or radioactive wastes, however produced, regulated under the Atomic Energy Act, 42 U.S.C. §§2011 et seq., the Nuclear Waste Policy Act, 42 U.S.C. §§10101 et seq., or pursuant to the California Radiation Control Law, California Health and Safety Code §§25800 et seq.; (xii) Any material regulated under the Occupational Safety and Health Act, 29 U.S.C. §§651 et seq., or the California Occupational Safety and Health Act, California Labor Code § §6300 et seq.; (xiii) Any material regulated under the Clean Air Act, 42 U.S.C. §§7401 et seq. or pursuant to Division 26 of the California Health and Safety Code; (xiv) Those substances listed in the United States Department of Transportation Table (49 CFR Part 172.101), or by the Environmental Protection the City, or any successor agency, as hazardous substances (40 CFR Part 302); (xv) Other substances, materials, and wastes that are or become regulated or classified as hazardous or toxic under federal, state or local laws or regulations; and (xvi) Any material, waste or substance that is: (a) a petroleum or refined petroleum product; (b) asbestos; (c) polychlorinated biphenyl; (d) designated as a hazardous substance pursuant to 33 U.S.C. §1321 or listed pursuant to 33 U.S.C. §1317; 5 (e) a flammable explosive; or (I) a radioactive material. "HOME Affordable Units" means the seven (7) Affordable Units described in Recital E of this Agreement restricted under the HOME regulations. "Project" shall have the meaning ascribed to it in Recital C. "Property" shall have the meaning ascribed to it in Recital A. "Statement of Insurance Requirements" means the statement of insurance requirements, in the form and format attached hereto as Exhibit "E," which shall be executed and delivered by the Borrower and the City concurrently with the Closing as set forth in Section 1.7, below. "Security Agreement" means the security agreement in the form and format attached hereto as Exhibit "F," which shall be executed and delivered by the Borrower and the City concurrently with the Closing. "Unsecured Environmental Indemnity Agreement" means the unsecured environmental indemnity agreement, in the form and format attached hereto as Exhibit "G," which shall be executed and delivered by the Borrower and the City concurrently with the Closing. ARTICLE I Loan Provisions - General Section - 1.1 Acquisition, Rehabilitation and Permanent Financing Loan. the City will fund the City Loan to Borrower according to and upon the terms and conditions set forth below. The proceeds of the City Loan shall be used by Borrower solely for the purposes of acquiring, rehabilitating and permanently financing the Affordable Units, in accordance with all applicable HUD HOME regulations. (a) City Loan Amount. The amount of the City Loan shall not exceed Seven Ilundred Seventeen Thousand Five Hundred and No/100 Dollars ($717,500.00). (b) Promissory Note. (1) The City Loan shall be evidenced by the City Note executed by Borrower, in favor of the City, in the original principal amount of Seven Hundred Seventeen Thousand Five Ilundred and No/100 Dollars ($717,500.00). The City Loan and the City Note shall he fully to Borrower. 6 (2) The City Note shall bear simple interest at two percent (2.0%) per annum from the date of disbursement. (3) Interest shall accrue, however, no payments shall be due under the City Note until May 1, 2013. Beginning on May 1, 2013, and annually on May 1 of each year during the term of the City Note, Borrower shall make payments to the City in the manner provided in the City Note, until fifty-five (55) years from the date of disbursement, at which time all principal and unpaid interest shall be due and payable. The principal and interest may be prepaid in whole or in part at any time and from time to time, without notice or penalty. Any prepayment shall be allocated first to unpaid interest and then to principal. Prepayment of the City Loan shall not in any manner affect any obligation or restriction related to maintaining the units as "Affordable Units" during the fifty-five (55) year term. (4) Should Borrower agree to or actually sell, convey, transfer, further encumber or dispose of the Property or any interest in it, without first obtaining the written consent of the holder of the City Note (i.e., the City), which consent shall be granted or withheld at the sole discretion of the holder of the City Note, then all obligations secured by the City Note may be declared due and payable at the option of the holder of the City Note. The consent to one transaction of this type will not constitute a waiver of the right to require consent to future or successive transactions. The resident tenant restrictions referenced in Section 1.5 of this Agreement shall remain in place whether or not the City approves or disapproves a successor -in - interest for the term of fifty-five (55) years from the date of completion of rehabilitation of the Proj ect. (5) The parties acknowledge that the City Loan is not a purchase money mortgage as defined in Code of Civil Procedure Section 580b. Section 1.2 - Security. (a) Deed of Trust. Borrower shall execute, acknowledge, deliver and cause to be recorded at Closing, the Deed of Trust, as security for the City Loan and the Declaration, in a form and format set forth in Exhibit "C," attached to this Agreement and incorporated herein by this reference. A copy of this Agreement shall not be attached to and recorded as part of such Deed of Trust but any breach of or misrepresentation under this Agreement shall, upon the expiration of any applicable notice and cure period(s), constitute an event of default under such Deed of Trust. (b) Additional Security. Borrower shall execute and deliver to the City the Security Agreement, UCC-1 financing statements and such other separate consents or certificates, assignments and other documents or instruments as the City may require to properly reflect the security interests in the personalty used in connection with the operation of the Property as the City may require. In addition thereto, Borrower shall execute and deliver such security agreements, and the like, as required by the City in connection with the Deed of Trust. Specifically, Borrower agrees that any notice of default and/or copy of any notice of sale will be mailed to the City in compliance with Section 2924(b) of the California Civil Code. 7 Section 1.3 - Subsequent Financing. No further loan, deed of trust, or encumbrance, shall be placed by Borrower upon any portion of the Property or Project, whether by refinancing or otherwise, without first obtaining the express written consent of the City. Any such unconsented to financing or refinancing shall constitute a material beach of this Agreement. Further, during any the City approved refinancing or subsequent encumbrance, the City shall be provided ALTA title insurance or endorsements acceptable to the City, at the cost and expense of Borrower. Said written consent shall be at the City's sole discretion. Without the express written consent of the City such subsequent financing is void. Section 1.4 - Funding. the City's obligation to fund the City Loan shall be and is specifically conditioned upon Borrower closing on the Clearinghouse Loan, the City approving the preliminary title reports concerning the Property, payment of all taxes due and payable on the Property, issuance of an ALTA Lender's policy insuring the City Loan satisfactory to the City and its counsel, satisfaction of all conditions precedent to the City's obligation to fund the City Loan, and satisfaction of those conditions set forth in Section 1.16 of this Agreement. Section 1.5 - Declaration. The obligation of the City to make and fund the City Loan hereunder is subject to the execution and recordation against the Property of the Declaration. The Declaration shall contain housing payment and income level restrictions for the eight (8) Affordable Units for a period of fifty-five (55) years. Rents will provide affordable housing to households earning between fifty percent (50%) and eighty percent (80%) of area median income as referenced in the Declaration. The monthly rental rate shall be as set forth in the Declaration. The rents may be subject to modification annually as set forth in the Declaration. The Declaration shall be recorded in a position superior and prior to all encumbrances on the Property, except for the deed of trust and other instruments securing the Clearinghouse Loan. Section 1.6 - No Partnership or Joint Venture. The relationship between the City and Borrower created by this Agreement shall not be one of partnership or joint venture, but rather shall be one of secured lender and borrower. Section 1.7 - Insurance. Borrower, at its sole cost and expense, shall purchase and maintain public liability, auto liability and property damage insurance with limits of not less than $2,000,000.00 for injury to or death of one or more persons and/or property damage arising out of a single accident or occurrence, insuring against any and all liability of the City and its respective employees, Borrower, its contractors, employees, agents, subcontractors and its authorized representatives, arising out of or in connection with Borrower's activities under the Project. All public liability insurance and property damage insurance shall insure the performance of Borrower of the indemnity provisions set forth in this Agreement. Further, in all such insurance required to be purchased and maintained by Borrower: (i) the City shall be named as an additional insured, (ii) Borrower's coverage shall be primary, (iii) additional insured endorsement shall not exclude completed operations, (iv) the policy shall provide ten year extended reporting period, and (v) the policy shall contain cross -liability endorsements. Borrower further agrees to purchase and maintain in full force and effect such policies of worker's compensation insurance as may be required to cover all employees of Borrower during 8 the term of this Agreement, in a form and amount acceptable to the City. Further, Borrower shall maintain policies of insurance as referenced in the Statement of Insurance Requirements throughout the term of the City Loan and for the duration of the Declaration. Certificates of insurance acceptable to the City shall be filed with the City prior to funding of the City Loan. The insurance requirements contained in this section shall not be construed to limit the Borrower's obligations under this Agreement, including without limitation any indemnities. Section 1.8 - Assignability. (a) Borrower may not assign any interest in this Agreement and shall not transfer any interest in the same (whether by assignment or novation) without the prior written approval of the City. Any assignment without the prior written consent of the City shall be voidable, at the election of the City. The City shall have full right and authority to assign all or a part of its rights and delegate all or a part of its duties under this agreement. (b) Except to the extent that changes are permitted by Section 1.8(a) above, Borrower shall not amend or modify in any material respect or, restate, revoke or rescind its LLC-1 (Articles of Organization) or Operating Agreement without the prior written consent of the City, which consent shall not be unreasonably withheld, conditioned or delayed. Section 1.9 - General Contractor and Subcontracting. The guaranteed not to exceed construction contract(s), entered into by Borrower with the general contractor for the rehabilitation of the Project shall be entered into on or before the date first set forth above, and shall be subject to the prior written approval of the City. Borrower shall be fully responsible to the City for the acts and omissions of its subcontractors, and of persons either directly or indirectly employed by Borrower. Borrower shall insert in each subcontract appropriate provisions requiring compliance with the labor standard provisions of this Agreement, including without limitation the payment of Federal prevailing wages and State prevailing wages, if required. Notwithstanding the foregoing, the City has not imposed, and nothing in this agreement shall be construed as imposing, any independent prevailing wage requirements that are different from those imposed by applicable Federal or State law. Section 1.10 — Borrower Liability. Borrower shall be responsible for all injuries to persons and/or all damages to real or personal property of the City or others, caused by or resulting from the negligence and/or breach of this Agreement, of itself, its employees, subcontractors and/or its agents during the rehabilitation of or arising out of the rehabilitation of the Project and/or the breach of this Agreement. Borrower shall defend and hold harmless and indemnify the City, and all of its officers and employees from all costs, damages, judgments, expenses and claims to any third party resulting from the negligence and/or breach of this Agreement, by Borrower, its employees, subcontractors and/or its agents, arising out of the rehabilitation of the Project and/or the breach of this Agreement, except those arising from the sole negligence or willful misconduct of the City. Section 1.11 - Ownership of Materials and Documents. Any and all sketches, drawings, tracings, field survey notes, computations, plans, details and other materials and documents prepared by or 9 on behalf of Borrower pertaining to the Property shall be the property of the City upon default by Borrower (to the extent of Borrower's rights in such documents), and the expiration of all applicable cure period(s), and Borrower shall deliver such materials and documents to the City whenever requested to do so by the City. Subject to the rights of third parties that prepared such documents, the City shall have the right to have duplicate copies of such materials and documents for their file, at the cost and expense of the City, upon written request even if Borrower is not in default under the terms of this Agreement. Section 1.12 - Indemnification. (a) With respect to any liability, including but not limited to claims asserted, demands, causes of action, costs, expenses, losses, attorney fees, injuries, or payments for injury to any person or property, including injury to Borrower's employees, agents, or officer, caused or claimed to be caused by the acts or omissions of the Borrower, or the Borrower's employees, agents, and officers, arising out of, arising from, or related to the City Loan; the design, engineering, or rehabilitation of the Project; Borrower's ownership or operation of the Property and the Project; or any other work or obligations performed involving this Agreement, the Bon-ower agrees to defend, indemnify, protect, and hold harmless the City, their respective agents, officers, and employees from and against all liability, losses, damages, costs or claims, including, but not limited to, claims for injury or death to any person occurring on the Property and contracts executed by Borrower and any losses from the Property, including losses from negative cash flows. Also covered is liability arising from, connected with, caused by, or claimed to be caused by the active or passive negligent acts or omissions of the City, its agents, officers, or employees that may be in combination with the active or passive negligent acts or omissions of the Borrower, its employees, agents or officers, or any third party. Borrower's duty to defend, indemnify, protect and hold harmless shall not include any claims or liabilities arising from the sole negligence or sole willful misconduct of the City, its agents, officers or employees. This indemnity provision shall survive the repayment of the City Loan and the term of this Agreement. (b) Borrower further agrees to defend, indemnify, and hold harmless, the City, their respective agents, officers and employees from and against any and all costs, damages, claims, and liabilities, including reasonable attorney fees, foreseeable or unforeseeable, directly or indirectly, arising from or related to Hazardous Materials located, used, released, or otherwise present or alleged to be present, used, or released on the Property, or any violation or alleged violation of Environmental Laws. This indemnity provision shall extend beyond the term of this Agreement and the termination of this Agreement. The City has no obligation or liability whatsoever regarding toxic contamination or Hazardous Materials on the Property. (c) The Borrower agrees to pay any and all costs the City incurs to enforce the indemnity and defense provisions set forth in Section 1.12. Section 1.13 - Termination. This Agreement and the relationship created herein shall terminate upon full satisfaction of all of Borrower's obligations, and those of Borrower's successors, if approved by the City, under this Agreement. The obligations of Borrower include, but are not 10 limited to, those obligations arising under the Declaration, the provisions of which shall survive repayment of the City Loan. Section 1.14 - Defective Work. (a) Correction, Removal, or Replacement. If during the teen of this Agreement, or any duration as may be required by law or regulation, the Project are discovered to contain Defective Work, the Borrower shall promptly and in accordance with the City's written instructions and within the reasonable time limits stated therein, either correct the Defective Work, or if identified during rehabilitation of the Project, remove the Defective Work from the site and replace the Defective Work with non -defective and conforming work. (b) the City Right to Correct. If circumstances warrant, including but not limited to an emergency or Borrower's failure to adhere to section 1.14(a), the City may correct, remove, or replace the Defective Work. In such circumstances, Borrower shall not recover costs associated with the Defective Work and shall reimburse the City for all costs incurred, whether direct or indirect, associated with the correction or removal and replacement. (c) No Limitation on other Remedies. Exercise of the remedies for defects pursuant to this Section shall not limit the remedies the City may pursue under this Agreement or law. Section 1.15 - Default by Borrower. (a) In the event of a material default by Borrower in the performance of any of the terms, covenants and conditions contained in this Agreement, the City Note, the Deed of Trust Amendment, the Declaration, or the Security Agreement, the City shall give Borrower notice of such default. If the default is reasonably capable of being cured within thirty (30) calendar days after such notice is received or deemed received, Borrower shall have such period to effect a cure prior to exercise of remedies by the City under this Agreement, the Declaration and the Deed of Trust Amendment. If the default is such that it is not reasonably capable of being cured within thirty (30) days and Borrower, in the City's sole and absolute discretion, (i) initiates corrective action within said period, and (ii) diligently and in good faith works to effect a cure as soon as possible, then Borrower shall have such additional time (but not to exceed ninety (90) days) as is reasonably necessary to cure the default prior to exercise of any remedies by the City. If such default is not timely cured or in the event of any default under any prior or junior note secured by an encumbrance on the Property or any portion of it, or any note or deed of trust given in conjunction herewith, or in the event of the filing of a bankruptcy proceeding by or against Borrower, all sums disbursed or advanced by the City shall at the option of the City immediately become due and payable and the City shall have no obligation to disburse any further funds from said account, or otherwise, and the City shall be released from any and all obligations to Borrower under the terms of this Agreement. These remedies shall be in addition to any and all other rights and remedies available to the City, either at law or in equity. (b) If a non -monetary event of default occurs under the terms of this Agreement, the City Note, the Deed of Trust Amendment, the Declaration or the Security Agreement, prior to 11 exercising any remedies hereunder or thereunder, the City shall give Borrower notice of such default. If the default is reasonably capable of being cured within thirty (30) calendar days after such notice is received or deemed received, Borrower shall have such period to effect a cure prior to exercise of remedies by the City under this Agreement, the Declaration and the Deed of Trust Amendment. If the default is such that it is not reasonably capable of being cured within thirty (30) days and Borrower, in the City's sole and absolute discretion, (i) initiates corrective action within said period, and (ii) diligently and in good faith works to effect a cure as soon as possible, then Borrower shall have such additional time (but not to exceed ninety (90) days) as is reasonably necessary to cure the default prior to exercise of any remedies by the City. If such default is not timely cured, then the City may proceed with all or any of its rights and remedies available at law or in equity or as set forth herein, in the Declaration and/or the Deed of Trust Amendment. (c) Li the event of any monetary default by Borrower under the terms of this Agreement, the City Note, the Deed of Trust Amendment, the Declaration or the Security Agreement, the City shall give Borrower a ten (10) day written notice of default, during which Borrower shall have the ability to cure the monetary default. If the default is not timely cured, the City may proceed with all rights and remedies under the terms of the City Loan or at law. (d) The default or defective performance by Borrower under the terms of this Agreement shall not relieve Borrower from any obligation to correct any incomplete, inaccurate, or Defective Work at no further cost to the City. Section 1.16 - Conditions to the City Obligations. The obligation of the City to make and fund the City Loan is subject to the following conditions: (a) This Agreement, the City Note, Deed of Trust, Declaration, Escrow Instructions, Statement of Insurance Requirements, Security Agreement and Unsecured Environmental Indemnity Agreement, fully executed by Borrower, shall have been delivered to the City and/or its designee along with all other fully executed security documents and instruments provided for herein and/or as required by the City. Borrower has provided and delivered to the City at Borrower's sole expense a standard form ALTA Lender's Policy of Title Insurance, insuring the City's security interest in the Property under the Deed of Trust and in an amount equal to the original principal amount of the City Loan; (b) Borrower's certification at the close of escrow that: (i) the City Loan is wholly for the benefit of Borrower, (ii) Borrower is responsible for all obligations created by the City Loan including, without limitation, the repayment of all principal and interest now due and payable or which may become due and payable on the terms and conditions of this Agreement, the City Note, the Deed of Trust, and any other security documents and instruments provided for herein; (c) Borrower shall have strictly complied with, and performed, all terms and conditions of the documents executed by Borrower in connection with this Agreement and the City Loan; 12 (d) the City's approval of all financing documents, including without limitation the Clearinghouse Loan documents; (e) Borrower has paid an amount into escrow, which is sufficient to pay for all costs associated with such escrow, including without limitation title fees, escrow fees, closing costs and carrying costs and the City's legal fees; (t) Recordation of a grant deed vesting fee simple title to the Property in Borrower; (g) The guaranteed not to exceed construction contract for the work at the Project, acceptable to the City, shall have been executed by the Borrower and the general contractor who has been selected to do the work; and (h) Such other conditions as the City shall request. Section 1.17 - Borrower's Representations and Warranties. Borrower represents and warrants to the City as provided in this Section 1.17. Borrower shall, upon learning of any fact or condition, which would cause any warranties or representations herein not to be true in any material respect, immediately give written notice of such fact or condition to the City. (a) Borrower is a validly and lawfully formed California limited liability company, and is in good standing under California law and will remain such for the term of this Agreement. (b) Execution of this Agreement, the Deed of Trust, the Declaration and all other documents executed in conjunction herewith have been duly authorized by Borrower's board of directors, and such execution shall not result with the passage of time or the giving of notice or both in breach of or in acceleration of performance under any contract or document to which Borrower may he a party. (c) All required approvals have been obtained in connection with Borrower's execution of this Agreement, and all related agreements and documents to the effect that no breach of or acceleration of performance under any agreement or document to which Borrower is a party will result in such execution. (d) Funds advanced by the City pursuant to the City Loan are advanced wholly or in part for the benefit of Borrower. (e) The principal and interest due and payable under the City Loan are subject to the termsand conditions of this Agreement, any other security documents or instruments provided for herein. (f) Borrower agrees to use the City Loan funds solely for the acquisition, rehabilitation and permanent financing of the Project as set forth in the Recitals. 13 (g) Borrower shall comply with the terms of the Declaration at all times during the 55-year term of the Declaration. (h) Borrower shall at all times during the first 15 years of the term of the Declaration, comply with the HUD HOME regulations. (i) The defective performance by Borrower under the terms of this Agreement shall not relieve Borrower from any obligation to correct any incomplete, inaccurate, or defective work at no further cost to the City, when such inaccuracies, defects and incomplete work arc due to Borrower's fault, including the fault of Borrower's subcontractors, agents, partners, joint venturers and employees. (j) To the best of Borrower's knowledge, there are no actions, suits, material claims, legal proceedings, or any other proceedings affecting the Borrower or any parties affiliated with the Borrower, at law or in equity before any court, tribunal, government agency, domestic or foreign, which, if adversely determined, would materially impair the right or ability of Borrower to execute or perform its obligations under this Agreement or any documents required hereby to be executed by Borrower, or which would materially adversely affect the financial condition of the Borrower or any parties affiliated with the Borrower. (k) To the best of Borrower's knowledge, Borrower's execution, delivery, and performance of its obligations under this Agreement will not constitute a default or breach or any contract, agreement, or order to which Borrower or any parties affiliated with Borrower is a party or by which it is bound. (1) No attachment, execution proceedings, assignments for the benefit of creditors, insolvency, bankruptcy, reorganization, receivership or other proceedings have been filed or are pending or threatened against the Borrower or any parties affiliated with Borrower, nor are any of such proceedings contemplated by Borrower or any parties affiliated with Borrower Section 1.18 Affordability Provision. (a) Execution of Declaration. Borrower agrees to execute the Declaration and to cause it to be recorded, assuring compliance with the affordability provisions of this Agreement. Borrower agrees to obtain any and all subordination agreements, if any, necessary to insure that the Declaration is an encumbrance on the Property prior to all other encumbrances and liens, other than taxes and the deed of trust and other documents securing the Clearinghouse Loan. Such subordinations shall be on terms and conditions acceptable to the City and its counsel in their sole discretions. The Declaration shall be binding and enforceable against all heirs, successors and assigns of Borrower. (b) Term of Affordability. Borrower agrees that the Property shall remain affordable and subject to the Declaration for not less than fifty-five (55) years from the effective date as referenced in the Declaration. 14 (c) Cross -Default With the Declaration. Borrower and its successors in interest to the Project and/or the Property shall strictly comply with all of the terms and conditions of the Declaration. Any default under the Declaration shall he a default under this Agreement, the City Note and the Deed of Trust. (d) No Conversion to Condominiums. Borrower agrees that Borrower shall not, and shall not allow any other person to, during the term of the Declaration, cause all or any portion of the Property and/or the Project to be converted to condominiums or to otherwise allow a condominium map or condominium plan to be recorded or filed against all or any portion of the Property and/or the Project. Borrower further agrees that the conversion of all or any portion of the Property or the Project to condominiums and/or the recordation or filing of a condominium map or condominium plan against all or any portion of the Property and/or the Project during the term of the Declaration, shall be a breach of this Agreement, the City Loan, the Declaration, the City Note and the Deed of Trust, entitling the City to immediately exercise any and all of its rights and remedies under this Agreement, the City Loan, the Declaration, the City Note and the Deed of "Trust, including without limitation acceleration of the City Note and foreclosure under the Deed of Trust. Section 1.19 - City Approval of Property Manager. At all times during the term of the Declaration, if the City serves a thirty (30) day written notice of deficiencies in the property management for the Property, or default under the Declaration or any document executed in conjunction herewith, which deficiencies or default have not been rectified by Borrower, within the thirty (30) day period (unless such deficiency or default is not capable of being cured within such thirty (30) day period, then such amount of time as the City determines is needed, not to exceed ninety (90) days, provided Borrower commences cure within thirty (30) day period and continues to diligently pursue cure), then, the City shall have the right, but not the duty, in its sole discretion and upon such thirty (30) days written notice: (i) to require the retention of a professional property management firm to manage the Property; (ii) to approve, in advance and in writing, the retention of any such property management firm, including the terms of the contract governing such retention; and (iii) to require Borrower to terminate any such property management firm, provided that such termination shall comply with the termination provisions of the management contract in question. Borrower shall cooperate with the City to effectuate the City's rights. Section 1.20 - Usury. If a court of competent jurisdiction determines, by way of final unappealable order or judgment, that the interest rate charged under the City Note is usurious, then such rate shall automatically and retroactively be reduced to the maximum rate allowed under applicable law. Section 1.21 - Remedies. (a) Contract Governed by Laws of the State of California. This Agreement, its performance, and all suits and special proceedings under this Agreement, shall be constituted in accordance with the laws of the State of California and Federal law, to the extent applicable. In any action, special proceeding, or other proceeding that may be brought arising out of, under or 15 because of this Agreement, the laws of the State of California and the United States, to the extent applicable, shall govern to the exclusion of the law of any other forum, without regard to the jurisdiction in which the action or special proceeding may be instituted. (b) Standing, Equitable Remedies; Cumulative Remedies. Borrower expressly agrees and declares that the City or any successor or public agency shall be the proper party and shall have standing to initiate and pursue any and all actions or proceedings, at law or in equity, including but not limited to foreclosure under any security instrument securing performance hereunder, to enforce the provisions hereof and/or to recover damages for any default hereunder, notwithstanding the fact that such damages or the detriment arising from such a default may have actually been suffered by some other person or by the public at large. Further, Borrower expressly agrees that receivership, injunctive relief and specific performance are proper pre-trial and/or pest -trial remedies hereunder, and that, upon any default, a receiver may be appointed by the court to take control of the Property and to assure compliance with this Agreement. Nothing in this subparagraph, and no recovery to the City, shall restrict or limit the rights or remedies of persons or entities other than the City, against Borrower in connection with the same or related acts by Borrower. The remedies set forth in this Section are cumulative and not mutually exclusive, except the extent that their award is specifically determined to be duplicative by final order of a court of competent jurisdiction. (c) Remedies at Law for Breach of Operating Restrictions. In the event of any default under this Agreement regarding restrictions on the operation and the transfer of the Property, the City shall be entitled to, in addition to any and all other remedies available at law or in equity: (i) declare the City Loan to be all due and payable; and (ii) recover compensatory damages. If the default in question involves the violation of Section 1.18, above, including without limitation a default under the Declaration, the amount of such compensatory damages shall be the product of multiplying (A) the number of months that the default in question has continued until the time of trial by (B) the result of subtracting the rents properly chargeable hereunder for the Affordable Unit(s) in question from the amount actually charged. Borrower and the City agree that it would be extremely difficult or impracticable to ascertain the precise amount of actual damages accruing to the City as a result of such a default and that the foregoing formula is a fair and reasonable method of approximating such damages. the City shall be entitled to seek and to recover damages in separate actions for successive, separate breaches which may occur. Further, interest shall accrue on the amount of such damages from the date of the breach in question at the rate of ten percent (10%) per annum or the maximum rate than allowed by law, whichever is less. Nothing in this section shall preclude the award of exemplary damages as allowed by law. (d) Expert Witness, Attorneys' Fees, and Costs. The parties agree that the prevailing party in litigation for the breach and/or interpretation and/or enforcement of the terms of this Agreement shall be entitled to their expert witness fees, if any, as part of their costs of suit, and attorneys' fees as may be awarded by the court, pursuant to California Code of Civil Procedure ("CCP") Section 1033.5 and any other applicable provisions of California law, including, without limitation, the provisions of CCP Section 998. 16 Section 1.22 — No Management Fee or Developer Fee. No management fee or developer fee concerning the Project shall be paid to Borrower or its affiliates until ninety percent (90%) of the Affordable Units have been leased. The amount of management fees shall be subject to the annual approval of the City. Section 1.23 Replacement .Reserves. Borrower shall, during the time of the term of the Declaration, maintain operating and replacement reserves approved by the City. Failure to maintain such reserves shall constitute a material default under the terms of this Agreement. Annually, beginning with the first year after the timely completion of rehabilitation of the Project and each year thereafter, not less than Three Thousand Four Hundred and No/100 Dollars ($3,400.00) set aside as a reserve for replacements (1/12th of the foregoing amount may be set aside by Borrower each month). This replacement reserve amount is subject to revision upward as determined by the City, annually, based upon an increase in the consumer price index for the San Diego Metropolitan Area. The reserves shall be maintained in a separate account in anticipation of and as a contingency against unbudgeted and/or unforeseen expenses in the operation and maintenance of the Project. No disbursements from the operating reserve or replacement account(s) shall be made without the express written consent of the City, which consent shall not be unreasonably withheld or delayed. Borrower shall account to the City for any monies expended from the operating reserves and/or replacement account(s), in such form as approved by the City. Section 1.24 - Completion of Rehabilitation. All rehabilitation of the Project, as approved by the City pursuant to Section 2.1(d), hereof, and shall be completed by Borrower on or before August 31, 2012. Time is of the essence. Failure to comply with these requirements shall constitute a material default under the terms of this Agreement. Borrower shall provide the City with a copy of the recorded Notice of Completion for all units within the Project within five (5) days of Borrower's receipt of the same. Section 1.25 - Failure to Receive Funding. The failure of Borrower to close on the Clearinghouse Loan on or before the Closing, shall constitute a material default under the terms of the Agreement. Section 1.26 - Funding Mechanism. The Seven Hundred Seventeen Thousand Five Hundred and No/100 Dollars ($717,500.00) the City Loan shall be disbursed as set forth in this Section 1.26. (a) Disbursement at Closing. At Closing, the City shall disburse up to $ such amount shall be used solely to acquire the Property. (b) Submission of Draw Requests. During rehabilitation of the Project, Borrower shall submit to the City written draw requests supported by such back up documentation as the City requires. (c) Approval of Draw Requests. The City shall inspect the work to determine its completion and shall thereafter approve, approve in part, or disapprove such draw request. 17 (d) Limit on Effect of Approval. Any the City review and/or approval of the work and disbursements of monies pursuant to draw requests shall be general review and/or approval only, and shall not relieve Borrower of the responsibility to design, engineer, and rehabilitate the Project in accordance with all applicable laws, codes, regulations, and good design, construction, and engineering practice. Any deficiencies or defects shall be corrected at Borrower's cost and expense and without any cost to the City. (e) Disbursements Conditioned on Lien Releases. Disbursements of approved draws shall he conditioned upon the City's receipt of evidence of conditional lien releases. (1) Final Disbursement. At the sole and absolute discretion of the City, up to $25,000.00 may be withheld and not be funded, regardless of expenditures and draw requests, unless and until a rehabilitation of the units has been completed. AR'I'ICLE 11f Specific Loan Provisions Section 2.1 - Conditions to the City Obligations and Borrower Representations and Warranties. (a) Interest of Current or Former Members, Officers or Employees. Borrower represents and warrants that no member, officer, or employee of Borrower, no member of the governing body of the locality in which the City was activated, and no other public official of such locality or localities who exercises any functions or responsibilities with respect to this Agreement, shall, during his or her tenure, or for one year thereafter, have any interest direct or indirect, in this Agreement or the proceeds thereof. Any violation of this section may, at the option of the City, result in unilateral and immediate termination of this Agreement by the City. Further, the contractor, who rehabilitates the Project, agrees to comply with all of the Conflict of Interest provisions contained in 24 CFR 92.356. (b) Unsecured Environmental Indemnity. Concurrently with Closing, the Borrower and the City shall enter into the Unsecured Environmental Indemnity Agreement. Borrower shall name the City as an additional insured on its insurance policies. Said policies shall be acceptable to the City and shall insure against any and all losses which may occur as a result of problems, claims, work, and the like associated with rehabilitation of the Project. (c) Title Policy. Borrower, shall, at its sole cost and expense, obtain an ALTA lender's policy naming the City as a named insured, and insuring that the City's interest is subject to no superior liens, encumbrances, special assessments or taxes, except as provided for in the Recitals and except as approved by the City. (d) Construction Loan and Contract. The City shall he entitled to review, inspect and approve, without liability, the construction contract and all of the rehabilitation being performed pursuant to the terms of the construction contract. All rehabilitation shall be performed in accordance with the plans and specifications approved by the City in accordance with Section 18 2.2 of this Agreement, without liability to the City for review and observation of the rehabilitation. The City approval shall be understood to be general approval only, and shall not relieve Borrower or contractor of the responsibility to design, engineer, and rehabilitation of the Project in accordance with all applicable laws, codes, regulations, and good design, construction, and engineering practice. Any deficiencies in rehabilitation of the Project shall be corrected by the contractor, and/or Borrower, upon written notice from the City to Borrower, prior to any additional funding of the City Loan, at Borrowcr's expense and at no cost to the City. (e) IIousing Quality Standards. Borrower represents and warrants that Affordable Units shall be maintained, at all times during the term of the Agreement, in complete compliance with all housing quality standards contained within 24 CFR §92.251, regardless of whether such section would apply to the Property. Further, Borrower warrants that all construction shall meet or exceed the applicable local codes and construction standards, including zoning and building codes of the City as well as the provisions of the Model Energy Code published by the Council of American Building Officials. Borrower hereby consents to periodic inspection by the City's designated inspectors and/or designees during regular business hours, including the Code Enforcement Agents of the City, to assure compliance with said zoning, building codes, regulations, and housing quality standards. Borrower agrees to comply with the provisions of 24 CFR §92.251, whether or not contained in this Section. (f) Limitation of Use of Funds for Religious Purposes. Borrower represents and warrants that Borrower will fully comply with any and all requirements and limitations contained in 24 CFR 92.257, as amended, from time to time. Borrower further represents, warrants and agrees that Project funds will not be used for any purpose proscribed in 24 CFR 92.257, as amended. (g) Approval of the City Disclosure Statement. This Agreement is subject to approval by the City of the executed disclosure statements of Borrower. (h) Administrative Requirements. Borrower shall strictly comply with the administrative requirements that are applicable to Borrower contained within 24 CFR Section 92.505, including, but not limited to, the requirements of OMB Circular No. A-87 and the requirements of 24 CFR Part 85, Section 85.6, 85.12, 85.20, 85.22, 85.26, 85.35, 85.36, 85.44, 85.51, and 85.52. Further, Borrower covenants (if it is a nonprofit organization) to comply with the OMB Circular No. A-122 and the applicable provisions of OMB Circular No. A-110. Copies of said OMB Circulars are on file in the offices of the City and are available for inspection and copying by Borrower. Borrower further agrees that should the administrative requirements contained in Section 92.505 he amended and/or changed from time to time by HUD, that Borrower will comply with the terms and conditions of such changed and/or amended administrative requirements. (i) Records and Reports. Each year during the term of the Declaration, Borrower shall supply the City with: (i) a certified rent roll on January 15 for all tenants occupying the Affordable Units as of the immediately preceding December 31; and (ii) a certified rent roll on July 15 for all tenants occupying the Affordable Units as of the immediately preceding June 30. 19 Borrower shall supply the City, annually (after completion of rehabilitation of the Project) not later than July 1, for the immediately preceding calendar year, with such records and reports as are required and are requested by the City. The records and reports include, but are not limited to the following: (1) Amount of funds expended pursuant to this Agreement; (2) Eligible Tenant information, including yearly income verifications; (3) Housing payments charged to resident tenants, to the extent applicable; (4) On -site inspection results; (5) Affirmative marketing records; (6) Insurance policies and notices; (7) Equal Employment Opportunity and Fair Housing records; (8) Labor costs and records; (9) An audited income and expense statement and balance sheets for Borrower; (10) An audited income and expense statement and balance sheets for the Project; (II) A Management Plan for the calendar year in which the report is prepared showing anticipated rental income, other income, expenses, anticipated repairs and replacements to the Project, timing of such repairs and replacements, insurance maintained with respect to the Project, and such other matters as the City shall require, in its sole discretion; (12) Federal and State income tax returns for the calendar year, ending on the preceding December 31 st; (13) Annual analysis of reserves for repair and replacement; (14) Annual certification and representation regarding status of all loans, encumbrances and taxes; (15) Annual statement regarding condition of the Property and disclosing any known defects; (16) An OMB A-133 financial audit if required by HUD; 20 (17) A report or reports, certifying compliance with the terms and provisions of the Section 3 requirements, as set forth in Paragraph 2.1(t) of this Agreement and certifying compliance with the provisions of federal law as it relates to Section 3, whether or not specifically set forth in Paragraph 2.1 (t); and (18) Such other and further information and records as the City and/or HUD shall request in writing from Borrower. Time is of the essence in supplying each and every report required to be supplied to the City. The parties agree that a fee of $25.00 per day shall be paid by Borrower to the City for each day that each report is delinquent. The parties agree that multiple fees may be charged at any one time, depending upon the number of report(s) and/or information that is delinquent. The parties agree that a fee of $25.00 per day, per report and/or . infonnation is a reasonable estimation of the damages that will accrue to the City as a result of the failure of Borrower to timely submit the required information and/or reports and that said fees shall be treated as liquidated damages by the parties, in anticipation of the damages that will be incurred by the City as a result of a breach by Borrower. The parties further agree that it would be difficult, if not impossible, to determine the exact actual amount of damages suffered by the City in the event of a breach by Borrower in the reporting requirements of this Agreement. Notwithstanding the foregoing or anything to the contrary contained herein, the City shall give Borrower prior written notice of any report and/or information that Borrower has failed to provide the City pursuant to this Section 2.1(i) and Borrower shall have thirty (30) days to provide such report. and/or information to the City prior to the assessment of any liquidated damages. (j) Monitoring of Project Activities. Borrower agrees to allow the City reasonable access to review and inspect Borrower's activities under this Agreement as the City shall require to perform its monitoring duties. The City shall monitor Borrower's activities without liability for said inspection and review. (k) Federal and State Requirements. Borrower represents, warrants and agrees that Borrower will fully comply, during the term of this Agreement, with any and all HOME requirements including, hut not limited to the requirements of 24 CFR Part 92, 24 CFR Section 92.351 (Affirmative Marketing), 92.352 (Environmental Review), 92.353 (Displacement, Relocation and Acquisition Residential, Antidisplacement and Relocation Plan), 92.354 (Labor), 92.356 (Conflict of Interest) and 92.358 (Flood Insurance). Borrower further warrants, represents and agrees that should said Program requirements be changed by HUD, from time to time, that Borrower will comply with said changed and amended regulations. Borrower, the general contractor, and any and all subcontractors, shall pay prevailing wages for all work done with respect to the Project as required by Federal and California law. Notwithstanding the foregoing, the City has not imposed, and nothing in this agreement shall be construed as imposing, any independent prevailing wage requirements that are different from those imposed by applicable Federal or State law. 21 (1) Affirmative Marketing. Borrower shall, at all times during the term of this Agreement, comply with all of the provisions of Section 24 CFR 92.351 and the affirmative marketing procedures adopted by the City, including, but not limited to, all requirements and procedures referenced in said Section 24 CFR 92.351(b), amended from time to time. Borrower shall maintain records to verify compliance with the applicable affirniative marketing procedures and compliance. Such records are subject to inspection by the City during regular business hours upon five (5) days written notice. (m) Equal Opportunity and Fair Housing Programs. During the term of this Agreement, Borrower agrees as follows: (1) Borrower will not discriminate against any employee, person, or applicant for employment and/or housing because of race, age, sexual orientation, marital status, color, religion, sex, handicap, or national origin. Borrower will take affirmative action to ensure that applicants are employed and/or are housed, and that employees or applicants are treated during employment and/or housing, without regard to their race, age, sexual orientation, marital status, color, religion, sex, handicap, or national origin. Such action shall include, but is not limited to the following: employment, upgrading, demotion, or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. Borrower agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the City setting forth the provisions of this nondiscrimination clause. (2) Borrower will, in all solicitations or advertisements for employees and housing placed by on or behalf of Borrower, state that all qualified applicants will receive consideration for employment without regard to race, age, sexual orientation, marital status, color, religion, sex, handicap, or national origin. (3) Borrower will cause the foregoing provisions to be inserted in all subcontracts for any work covered by this Agreement so that such provisions will he binding upon each subcontractor, provided that the foregoing provision shall not apply to contracts or subcontracts for standard commercial supplies of raw materials. (4) Borrower hereby agrees to comply with the Title VII of the Civil Rights Act of 1964, as amended, the California Fair Employment Practices Act, and any other applicable Federal and State laws and regulations. the City will provide technical assistance and copies of the referenced programs upon request. 24 CFR Section 92.350. (5) All activities carried out by Borrower and/or agents of Borrower shall be in accordance with the requirements of the Federal Fair Housing Act. The Fair Housing Amendments Act of 1988 became effective on March 12, 1989. The Fair Housing Amendments Act of 1988 and Title VIII of the Civil Rights Act of 1968, taken together, constitute The Fair Housing Act. The Act provides protection against the following discriminatory housing practices if they are based on race, sex, religion, color, handicap, familial status, or national origin: denying or refusing to rent housing, denying or refusing to sell housing, treating differently applicants for housing, treating residents differently in connection with terms and 22 conditions, advertising a discriminatory housing preference or limitation, providing false information about the availability of housing, harassing, coercing or intimidating people from enjoying or exercising their rights under the Act, blockbusting for profit, persuading owner to sell or rent housing by telling them that people of a particular race, religion, etc. are moving into the neighborhood, imposing different terms for loans for purchasing, constructing, improving, repairing, or maintaining a home, or loans secured by housing; denying use or participation in real estate services, e.g., brokers' organizations, multiple listing services, etc. The Fair Housing Act gives HUD the authority to hold administrative hearings unless one of the parties elects to have the case heard in U.S. District Court and to issue subpoenas. Both civil and criminal penalties are provided. The Act also provides protection for people with disabilities. The following State of California Laws also govern housing discrimination: Fair Employment and Housing Act, Unruh Civil Rights Act of 1959, Ralph Civil Rights Act of 1976, and Civil Code Section 54.1. (n) Labor Requirements. Borrower represents and warrants that during the term of this Agreement that Borrower will comply with each and every provision and requirement contained within CFR 92.354, as amended from time to time, to the extent applicable, and will pay not less than the wages prevailing in the locality, as predetermined by the Secretary of Labor pursuant to the Davis -Bacon Act (40 U.S.C. 276a-276a-5), to all laborers and mechanics employed in the development of any part of the Project in accordance with the terms and provisions of CFR 92.354 and will comply with the overtime provisions, as applicable, of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-332). Prevailing wages need not be paid to "Volunteers" or for "Sweat Equity" as defined in 24 CFR 92.354(b) and (c). Furthermore, Borrower, the general contractor, and any and all subcontractors, shall pay prevailing wages for all work done with respect to the Project as required by Federal and California law. (o) Lead Based Paint. Borrower represents and warrants that during the term of the Agreement that Borrower will comply with each and every provision and requirement contained within CFR 92.355, as amended from time to time, to the extent applicable. (p) Certification Concerning Debarment and Suspension. Borrower represents, warrants and hereby certifies, pursuant to 24 CFR 92.357, that Borrower will not use a contractor that has been debarred and or suspended, nor that is proposed for debarment, declared ineligible or voluntarily excluded from participation in the Project, which is the subject matter of this Agreement. Borrower agrees to execute such further certification(s) required by the City and/or HUD including, if necessary, that certification included as Appendix B of CFR Part 24, to verify the certification made in this Section 2.l(p). (q) Flood Insurance. Borrower represents, warrants, and certifies, pursuant to 24 CFR 92.358, that no Real Property which is the subject of this Agreement, is located within a Flood Plain or Flood Hazard Zone or Area, as indicated on a FEMA Map; or that the Real 23 Property is located within a community participating in the National Flood Insurance Program and Borrower agrees to purchase and maintain flood insurance for the duration of the term of this Agreement concerning such Real Property. (r) Fire Protection and Safety. Borrower represents and warrants that Borrower will comply with all requirements and regulations of the Fire Administration Act of 1992 and the Federal Fire and Prevention Control Act. Borrower will use and install all fire and safety related equipment pursuant to the National Fire Protection Association standards. (s) Accessibility Standards. Borrower represents and warrants that Borrower will comply with all federal, state and local requirements and regulations concerning access to the units by the disabled and handicapped persons, including, but not limited to, those requirements of the HOME Program. (t) Section 3 Requirements. Borrower shall comply with the following requirements during the term of the City Loan: (i) The work to be performed under this Agreement is subject to the requirements of section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. §1701u (section 3). The purpose of section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD -assisted projects covered by section 3, shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing. (ii) The parties to this Agreement agree to comply with IIUD's regulations in 24 CFR part 135, which implement section 3. As evidenced by their execution of this Agreement, the parties to this Agreement certify that they are under no contractual or other impediment that would prevent them from complying with the part 135 regulations. (iii) Borrower agrees to send to each labor organization or representative of workers with which Borrower has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers' representative of Borrower's commitments under this section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, and qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin. (iv) Borrower agrees to include this section 3 clause in every subcontract subject to compliance with regulations in 24 CFR part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR part 135. Borrower will not subcontract with any subcontractor where Borrower has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR part 135. 24 (v) Borrower will certify that any vacant employment positions, including training positions, that are filled (1) after Borrower is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR part 135 require employment opportunities to be directed, were not filled to circumvent Borrower's obligations under 24 CFR part 135. (vi) Noncompliance with HUD's regulations in 24 CFR part 135 may result in sanctions, terinination of this Agreement for default, and debarment or suspension from future HUD assisted contracts. (u) Drug Free Workplace. Borrower shall comply with all applicable State and Federal rules, laws and regulations to ensure a drug free workplace at all times during the term of this Agreement. Further, Borrower shall incorporate such federal provisions as are required in each contract or subcontract that Borrower enters into in connection with the Project. (v) Lobbying Prohibition. Borrower hereby certifies to the City, under penalty of perjury, under the terms of applicable federal law, that at all applicable times before, during and after the term of the Agreement, that: (i) No Federal appropriated funds have been paid or will be paid, by or on behalf of Borrower, to any person for influencing or attempting to influence an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan or cooperative agreement; (ii) If any funds other than Federal appropriated funds have been paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan or cooperative agreement, Borrower will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; (iii) Borrower will require that the above stated language be included in the award documents for all subawards at all tiers, including subcontracts, subgrants, loans, contracts, and cooperative agreements concerning the subject matter of this Agreement; and (iv) Further, Borrower and all subrecipients, at all times, shall certify compliance with the provisions of 31 U.S.C. §1352 and any and all terms and conditions of the Byrd Anti -Lobbying Amendment, as amended from time to time. Section 2.2 - Commencement of Rehabilitation and Compliance with Plans and Specifications. 25 (a) Completion Deadline. Borrower shall continue rehabilitation of the Project diligently and without delay, in a good and workmanlike manner. Borrower will complete rehabilitation of the Project in accordance with the plans and specifications approved by the City ("Plans and Specifications"), including any additional specifications prescribed by the City, and in compliance with all requirements of governmental authorities having or asserting jurisdiction. Rehabilitation of the Project shall be completed on or before August 31, 2012, as referenced in Section 1.24 of this Agreement. (b) No Material Changes. No material change shall be made in the plans and specifications approved by the City, including any additional specifications prescribed by the City, without its written consent. For purposes of this Section, "material change" means changes which, in aggregate, increases or decreases the rehabilitation costs by Ten Thousand Dollars (S 10,000.00) or more or affect the Project quality or safety established during the City review and approval process. Notwithstanding the foregoing, no changes to the budget, which in the aggregate exceed One Hundred Thousand Dollars ($100,000.00), regardless of any increase of decrease in the overall rehabilitation costs, may be made without the written consent and approval of the City. (c) Submission of Documents Related to Changes. Borrower shall submit any proposed change to the Plans and Specifications to the City at least ten (10) days prior to the commencement of construction relating to such proposed change whether or not such change is subject to the City's consent. Requests for any change that requires consent shall be accompanied by working drawings and a written description of the proposed change, submitted on a change order form acceptable to the City, signed by Borrower and, if required by the City, also signed by the architect and the contractor. Section 2.3 - No Purchase Under Conditional Sales Agreements, Etc. Except for leased laundry equipment, no supplies, materials, equipment, fixtures, carpets, appliances, or any part of said improvements shall be purchased or installed under any conditional sales agreement, lease or under any other arrangement wherein the right is reserved or accrues to anyone to remove or to repossess any such items. It is expressly agreed that all such items shall be part of the Property. Section 2.4 - Security Agreement. Borrower hereby grants to the City a security interest in all supplies, materials, fixtures, carpets, appliances, furniture or equipment now or hereafter located on said Property, together with all proceeds thereof, including insurance proceeds paid or payable as the result of any loss, injury or damage of the foregoing collateral, whether or not the City is named beneficiary under any such insurance. Upon request, from time to time, Borrower will furnish the City with an inventory of such collateral. Nothing contained in this Section 2.4 shall affect the provisions of Section 2.5. Section 2.5 - Stoppage of Work by the City. the City or its agents shall have the right to enter upon the Property and the Project during the period of rehabilitation of the Project. If in the opinion of the City, the rehabilitation is not in material conformance with the plans and specifications, the City shall have the right to order the replacement of any unsatisfactory work 26 theretofore incorporated into rehabilitation of the Project, and to withhold all disbursements from the accounts until it is satisfied with the work. if the work is not made satisfactory to the City, in its sole discretion, within fifteen (15) calendar days from the date of stoppage by the City, such shall constitute a default hereunder. If any unsatisfactory work is such that it is not reasonably capable of being cured within fifteen (15) calendar days and Borrower, in the City's sole discretion, (i) initiates corrective action within said period, and (ii) diligently and in good faith works to correct the unsatisfactory work as soon as possible, then Borrower shall have such additional time as the City determines, in its sole discretion, is reasonably necessary to cure the unsatisfactory work prior to exercise of any remedies by the City. Section 2.6 - Cessation of Work, Completion by the City. Should the work of rehabilitating of the Project cease, and continues for a period of thirty (30) consecutive days, or should said work for any reason whatsoever not progress continuously in a manner satisfactory to the City, in its sole discretion, then the City may, at its option and without notice, declare Borrower to be in default hereunder, and the City may thereupon, should it so elect, take possession of said property and let contracts for the completion of rehabilitation of the Project and pay the cost thereof, plus a fee of fifteen percent (15%) for supervision of construction, disbursing all or any part of the loan for such purposes; and should the cost of completing rehabilitation of the Project plus such fee exceed the undisbursed balance of the loan, then the amount of such excess may be expended by the City, in which event such amount shall be considered an additional loan to Borrower, and the repayment thereof, together with interest thereon at the rate provided in the City Note, shall be secured by the Deed of Trust Amendment and shall be repaid within ten (10) days after the completion of rehabilitation of the Project, and Borrower agrees to pay the same; Borrower further authorizes the City at its option at any time, upon a default by any contractor under any contract in connection with rehabilitation of the Project which is not cured within ten (10) days following notice to Borrower, either in its own name or in the name of Borrower, to do any act or thing necessary or expedient in the opinion of the City to secure the performance of construction contracts and assure the completion of rehabilitation of the Project substantially in accordance with the plans and specifications, disbursing all or any part of the loan funds for such purposes. In addition to the specific rights and remedies hereinabove mentioned, the City shall have the right to avail itself of any other rights or remedies to which it may be entitled under any existing law or laws. Section 2.7 - Mechanic's Liens and Notices to Withhold. Borrower shall use its best efforts to prevent any lien or stop notice from being place on the Property or Project. If a claim of lien or stop work notice is given or recorded affecting the Property or Project, the Borrower shall within ten (10) calendar days of such recording or service: (i) pay and discharge same; (ii) effect a release thereof by recording and delivering to the City a surety bond in sufficient form and amount; or (iii) provide the City with indemnification from a title insurance company reasonably acceptable to the City against such lien or other assurance which the City, in its sole discretion, deems to be satisfactory for the payment of such lien or stop notice and for the full and continuous protection of the City from the effect of such lien or notice. In the event of the filing with the City of a notice to withhold or the recording of a mechanic's lien pursuant to Division 3, Part 4, Title 15 of the Civil Code of the State of California, the City may summarily refuse to honor any requests for payment pursuant to this Agreement. In the event Borrower fails to 27 furnish the City with a bond causing such notice or lien to be released (or alternatively issuance of a title policy or endorsement in the full amount of the City Loan, which title policy or endorsement excludes such lien as an exception to title) within thirty (30) days after the fling or recording thereof, such failure shall at the option of the City constitute a default under the terms of this Agreement. Section 2.8 - Involvement of the City in Legal Proceedings. the City shall have the right to commence, to appear in, or to defend any action or proceeding purporting to affect the rights or duties of the parties hereunder or the payment of any funds in connection with this the City Loan and to pay out of funds not yet disbursed, necessary expenses, employ counsel and pay its fees, all of which the undersigned, jointly and severally, agree to repay to the City upon demand. Provided, however, such costs and expenses shall not be due and owing to the City, if they are incurred as a result of the breach of the Agreement by the City or its negligence or willful misconduct. Section 2.9 - Books and Records. Borrower shall require that the general contractor maintain complete and accurate books and records showing all of the income and disbursements made in connection with the rehabilitation of the Project and such books and records shall be available for inspection and copy by the City upon request and during regular business hours. Section 2.10 - Waiver and Amendment. No provision of this Agreement, or breach of any provision, can be waived except in writing. Waiver of any provision or breach shall not be deemed to be a waiver of any other provision, or of any subsequent breach of the same or other provision. Except as otherwise provided herein, this Agreement may be amended, modified or rescinded only in writing signed by Borrower and the Executive Director of the City. ARTICLE III Miscellaneous Provisions Section 3.1 - Governmental Requirements Superior. All provisions of this Agreement and all the other documents relating to the City Loan shall be subject and subordinate to any and all applicable federal, state and local statutes, regulations and ordinances and shall be subject to modification to comply therewith. Section 3.2 - Notices. All notices under this Agreement shall be in writing and sent by (a) certified or registered mail, return receipt requested, in which case notice shall be deemed delivered seven (7) business days after deposit, postage prepaid in the United States Mail, (b) by a nationally recognized overnight courier such as UPS Overnight or Federal Express, in which case notice shall be deemed delivered one (1) business day after deposit with that courier, or (c) by personal delivery, in which case notice shall be deemed delivered upon the actual date of delivery. All notices shall be delivered to the following addresses, provided, however the addresses may be changed by any party by written notice to all other parties. City: City of National City 28 Borrower: 1243 National City Boulevard National City, CA, 91950-4397 T & T Community Properties, LLC 760 Arroyo Ct. Chula Vista, CA 91910 Section 3.3 - Severability. If any provision of this Agreement is deemed to be invalid or unenforceable by a court of competent jurisdiction, that provision shall be severed from the rest of this Agreement and the remaining provisions shall continue in full force and effect. Section 3.4 Nonwaiver of the City's Rights. No right, remedy, or power of the City in this Agreement shall be deemed to have been waived by any act or conduct on the part of the City or by any failure to exercise or delay in exercising such right, remedy, or power. Every such right, remedy or power of the City shall continue in full force and effect until specifically waived or released by an instrument in writing executed by the City. Section 3.5 - Entire Agreement. This Agreement contains the entire understanding between the Parties concerning the subject matter contained herein. There are no representations, agreements, arrangements or understandings, oral or written, between or among the parties hereto, relating to the subject matter of this Agreement, which are not fully expressed and/or referred to herein. Section 3.6 - Exhibits and Recitals Incorporated. All exhibits referred to in this Agreement are hereby incorporated in this Agreement by this reference, regardless of whether or not the exhibits are actually attached to this Agreement. The Recitals to this Agreement are hereby incorporated in this Agreement by this reference. Section 3.7 - Construction of the Agreement. The provisions contained in this Agreement shall not be construed in favor of or against either party but shall be construed as if both parties contributed equally to its preparation. This Agreement shall be construed in accordance with the laws of the State of California. Section 3.8 - City's Reliance on Statements and Disclosures of Borrower. Borrower has made certain statements in order to induce the City to make said loan and enter into this Agreement, and in the event Borrower has made material misrepresentations or failed to disclose any material fact, the City may treat such misrepresentation or omission as a breach of this Agreement, and the act of doing so shall not affect any remedies the City may have under the deed of trust securing said loan for such misrepresentation or concealment. Section 3.9 - City Not Liable for Acts of Omissions of Borrower or Others. City shall in no way be liable for any acts or omissions of Borrower, any agent or contractor employed by Borrower, or any person furnishing labor and/or materials used in or related to the rehabilitation of the Project. 29 Section 3.10 - Time of the Essence. Time is of the essence of this Agreement and of each and every provision hereof. The waiver by the City of any breach or breaches hereof shall not be deemed, nor shall the same constitute, a waiver of any subsequent breach or breaches. Section 3.11 - Integration. This Agreement represents the entire agreement between the Parties of the subject matter of this Agreement and supersedes any other agreements, promises, or representations oral or written pertaining to such subject matter, including without limitation, any and all agreements, promissory notes, and deeds of trust, along with any amendments and modifications to such agreements, promissory notes and deeds of trust entered into by and between the City and Borrower. Section 3.12 - Participation. At the request of the City, Borrower shall cause the fact that the City has provided funds to be referenced in any advertisements, press releases, brochures or information sheets where funding for the Project is discussed, and on all project designation placards placed on the Property or other sites, as approved in advance, by the City. The design, content and format of the press releases, brochures, information sheets, and all project designation placards containing a reference to the City are subject to the written approval of the City with respect to all references to the City. the City, at its sole option, reserves the right to request, in writing, that the references to the participation of the City not be included in any, or all, advertisements, press releases, brochures, information sheets, and/or project designation placards. Section 3.13 - Approvals, Consents and Other Determinations. Unless otherwise provided, in any approval, consent, or other determination by the City or Borrower required under this Agreement or any of the other loan documents evidencing and/or securing the City Loan, the City and Borrower shall act in good faith and without delay. Section 3.14 - Counterparts. This Agreement may be executed in any number of counterparts and, as so executed, the counterparts shall constitute one and the same Agreement. The parties agree that each such counterpart is an original and shall be binding upon all the parties, even though all of the parties are not signatories to the same counterpart. Section 3.15 - Consents and Approvals. Any approval required under this Agreement shall be in writing and executed by an authorized representative of the party granting the approval. Section 3.16 - Non -Liability of Officials and Employees of the City. No member, official or employee of the City shall be personally liable to Borrower, or any successor in interest, in the event of any default or breach of this Agreement or for any amount which may become due to Borrower or its successors, or on any obligations under the terms of this Agreement. Section 3.17 - Capacity and Authority. All individuals signing this Agreement for a party which is a corporation, limited liability company, partnership or other legal entity, or signing under a power of attorney, or as a trustee, guardian, conservator, or in any other legal capacity, covenant 30 to the City that they have the necessary capacity and authority to act for, sign and bind the respective entity or principal on whose behalf they are signing. IN WITNESS WHEREOF, the parties have executed this Agreement on the date first set forth above. BORROWER: T & T Community Properties, LLC, a California limited liability company By: Print Name: Mitchell L. Thompso Its: Managing Member City: City of National City By: Ron Morrison, Mayor APPROVED AS TO FORM: Christensen & Spath LLP, Special Counsel to the City By: Walter F. Spath III, Esq. 31 Exhibit "A" Property Description All that certain real property situated in the County of San Diego, State of California, described as follows: All of 1.ot 34 and that portion of Lot 36, Block 3 Paradcna Park, in the City of National City, County of San Diego, State of California, according to Map thereof No. 1404, filed in the Office of the County Recorder of San Diego County, February 16, 1912, lying southerly of a line described as follows: Beginning at a point on the easterly line of said Lot 36 distant thereon 50.00 feet southerly from the most northerly corner thereof; thence westerly in a straight line to an intersection with the westerly line of said Lot 36 at a point which is a distant thereon 25.00 feet southerly from the northwesterly corner thereof. Excepting from said Lot 34 the southerly 65.00 feet measured at right angles to the southerly line. APN: 554-013-16-00 32 Exhibit `B" City Note 33 DO NOT DESTROY THIS NOTE: WHEN PAID, THIS NOTE AND THE DEED OF TRUST SECURING IT MUST BE SURRENDERED TO TRUSTEE FOR CANCELLATION BEFORE RECONVEYANCE WILL BE MADE. PROMISSORY NOTE ("Note") National City, California , 2011 1. Principal and Interest. For value received and in consideration of the Acquisition, Rehabilitation and Permanent Financing Loan Agreement dated as of July , 2011 ("City Loan Agreement"), by and between the City of National City ("City") and T & T Community Properties, LLC, a California limited liability company ("Maker"), Maker promises to pay to City, or order, at 1243 National City Boulevard, National City, California 91950-4397, or such other place as the holder may from time to time designate by written notice to Maker, the principal sum of Seven Hundred Seventeen Thousand Five Hundred and No/100 Dollars ($717,500.00), or so much as is advanced, together with accrued interest at the rate of two percent (2%) simple interest per annum. This Note is issued pursuant to: (i) the City Loan Agreement; (ii) the Deed of Trust ("Deed of Trust") being executed concurrently herewith by Maker in favor of the City, to be recorded in the office of the County Recorder of San Diego County; and (iii) the Declaration of Covenants, Conditions and Restrictions (Tenant Restrictions), being executed concurrently herewith by Maker in favor of the City, to be recorded in the office of the County Recorder of San Diego County ("Declaration"). All capitalized terms which are not defined herein shall have the meaning ascribed to them in the City Loan Agreement. 2. Term of Loan, Due Date and Right of Prepayment. Payments shall be due and payable as follows: (a) On May 1, 2013, and annually on May 1 of each year thereafter during the term of this Note, Maker shall calculate its Residual Receipts for the immediately previous calendar year, as defined herein, and pay to the City thirty percent (30%) of such Residual Receipts. (b) Fifty-five (55) years from the date first set forth above, when all principal and accrued interest shall be due and payable. (c) Concurrently with the refinancing of any loan or other obligation secured all or in part by the Property, as defined in the City Loan Agreement. (d) Acceleration of this Note pursuant to the provisions of Paragraph 4 of this Note, when all principal and accrued interest shall be due and payable. 1 (e) Any sale, transfer, conveyance or further encumbrance of all or any part of the Property. "Residual Receipts" shall mean Gross Income less Operating Expenses, calculated on a calendar year basis, as provided herein and on a form approved by the City. All calculations of Residual Receipts shall be subject to verification and approval by the City. "Gross Income" shall mean all gross income actually collected from all residential and non- residential components of the Property. "Operating Expenses" shall mean actual, reasonable and customary costs, fees and expenses directly attributable to the operation, maintenance, taxes and management of the Property, to the extent approved by the City in Maker's annual operating budget. Maker shall annually provide to the City, on May 1st, each year during the term of this Note, a Residual Receipts report, which provides the basis for Maker's calculation of the payment or nonpayment of Residual Receipts to the City. This Note may be prepaid in whole or in part at any time and, from time to time, without notice or penalty. Any prepayment shall be allocated first to unpaid interest and then to principal. Should the undersigned sell, convey, transfer, further encumber, or dispose of the Property described in the Deed of Trust securing this Note, or any part of it, or any interest in it, then all obligations secured by this Note shall be due and payable immediately. 3. Security for Note. This Note is secured by the Deed of Trust of even date herewith executed by Maker, which creates a lien on that certain real property described therein and by the Security Agreement of even date herewith. 4. Acceleration Upon Default. Notwithstanding Section 2, above, or anything contained herein to the contrary, in the event of any default in the performance of any of the terms, covenants and conditions contained in: (i) this Note, the City Loan Agreement, Declaration or Deed of Trust, in each case after the expiration of applicable cure periods, including without limitation the failure by Maker to rehabilitate the Project, as defined in the City Loan Agreement, on or before April 30, 2010; (ii) any other instrument executed by the Maker in conjunction with this Note after the expiration of applicable cure periods; (iii) any prior or junior note secured by an encumbrance on the Property or any portion of it after the expiration of applicable cure periods; or (iv) in the event of the filing of a Bankruptcy proceeding by or against Maker, then (x) all sums owing by Maker to the City shall at the option of the City immediately become due and payable; (y) the City shall have no obligation to disburse any further funds to Maker or any other person: and (z) the City shall be released from any and all obligations to Maker under the terms of this Note. These remedies shall be in addition to any and all other rights and remedies available to the City, either at law or in equity. Further, default interest shall accrue on the principal balance of this Note from the date of this Note at the rate of ten percent (10%) simple interest per annum or the maximum rate than allowed by law, whichever is less. Failure to exercise such option shall not constitute a waiver of the right to exercise it in the event of any subsequent default. 2 5. Costs Paid by Maker. Maker agrees to pay the following costs, expenses, and reasonable attorneys' fees paid or incurred by the holder of this Note, or adjudged by a court: (a) reasonable costs of collection, costs, and expenses, and attorneys' fees paid or incurred in connection with the collection or enforcement of this Note, whether or not suit is filed; and (b) costs of suit and such sum as the court may adjudge as attorneys' fees in any action to enforce payment of this Note or any part of it. 6. Payment and Interest Calculation. Principal and interest shall be payable in lawful money of the United States of America. Interest shall be computed based on a 360-day year and 30-day month and the actual number of days elapsed. Payments shall be applied to interest first and then to any unpaid principal balance. 7. Incorporation of Documents. The provisions of the City Loan Agreement, Declaration and Deed of Trust are expressly incorporated in this Note by this reference. 8. Waiver. Maker hereby waives diligence, presentment, protest and demand, notice of protest, dishonor and nonpayment of this Note, and expressly agrees that, without in any way affecting the liability of Maker hereunder, the City may extend any maturity date or the time for payment of any installment due hereunder, accept additional security, release any party liable hereunder and release any security now or hereafter securing this Note. Maker further waives, to the full extent permitted by law, the right to plead any and all statutes of limitations as a defense to any demand on this Note, or on any deed of trust, security agreement, guaranty or other agreement now or hereafter securing this Note. 9. Recourse During Rehabilitation and Indemnit (a) Prior to the timely completion of rehabilitation of the Project, in any action brought to enforce the obligations of Maker under this Note or the Loan Documents, the judgment or decree shall be enforceable against Maker, in addition to any collateral security for the payment of this Note, and the City may seek any deficiency judgment against Maker. Upon such recordation of a proper and timely Notice of Completion, this Note shall become non -recourse to both Maker and the recourse provisions of this Paragraph 9(a) shall no longer be operative. Provided, however, nothing contained herein shall apply to defeat any cause of action against Maker that accrues prior to timely completion of rehabilitation of the Project. (b) Maker shall indeinnify, defend, protect and hold the City harmless from and against any and all loss, damage, liability, action, cause of action, cost or expense (including, without limitation, reasonable attorneys' fees and expenses) incurred by the City as a result of any (i) fraud or material misrepresentation under or in connection with the Loan or any Loan Document; (ii) intentional bad faith waste of the Property; (iii) losses resulting from Maker's failure to maintain insurance as required under the Deed of Trust; and (iv) misapplication of any rents, security deposits, insurance proceeds, condemnation awards or any other proceeds derived from the collateral security in a manner prohibited by the City Loan Agreement, Deed of Trust or Declaration. The City shall promptly provide Maker with written notice of any event for which Maker has an indemnification obligation as provided in this Paragraph 9(b). 3 (c) Notwithstanding anything to the contrary contained herein, Maker's obligation to indemnify the City as aforesaid shall he personal, recourse obligations of Maker and in the event of any breach of such obligations, the City shall have the right to proceed directly against Maker to recover any and all losses, damages, liabilities, actions, causes of action, costs and expenses (including, without limitation, reasonable attorneys' fees and expenses) resulting from such breach and the right to bring any action and to institute any proceedings to obtain a deficiency judgment in or following after foreclosure for any and all losses, damages, liabilities, actions, causes of action, costs and expenses (including without limitation reasonable attorneys' fees and expenses) resulting from such breach. 10. Late Charge. In addition to the foregoing, if any installment due hereunder, is not paid within fifteen (15) days from the date due, Maker promises to pay a "late charge" of five percent (5%) of the installment so overdue to defray the expense incident to handling any such delinquent payment or payments. 11. Severability. If any provision of this Note is determined to be void by court of competent jurisdiction, such determination shall not affect any other provision of this Note, and such other provisions shall remain in full force and effect. 12. Non -Waiver. No delay in demanding or failure to demand performance hereunder shall constitute a waiver by holding of its right to subsequently demand such performance or to exercise any remedies for any default hereunder. Further, in order to be effective, any waiver of any of the City's rights and remedies hereunder shall be expressed in a writing signed by the City. Further waiver by the City of any right hereunder shall not constitute a waiver of any other right, including hut not limited to the right to exercise any and all remedies for a different or subsequent event of default hereunder. 13. Replacement Note. The undersigned agrees that, in the event that this Note shall become lost or stolen, upon request of the City, the undersigned shall execute a replacement Note incorporating the terms hereof, provided that the City shall furnish a written agreement to indemnify the undersigned against all losses, costs, and damages arising from a duplicative demand for payment under this Note. 14. Interpretation. This Note shall be governed and interpreted in accordance with applicable California law. Maker: T & T Community Properties, LLC, a California limited liability company By: Print Name: Its: 4 Exhibit "C" Deed of Trust 34 NO CHARGE ON THIS DOCUMENT PER CALIFORNIA GOVERNMENT CODE SECTION 6103 Recording Requested By And When Recorded Mail To: City of National City 1243 National City Boulevard National City, CA 91950-4397 DEED OF TRUST THIS DEED OF TRUST is made as of this day of , 2011, by T & T Community Properties, LLC, a California limited liability company ("Trustor"), whose address is , and First American Title Company ("Trustee") and the City of National City (`Beneficiary"), whose address is 1243 National City Boulevard, National City, California, 91950- 4397. TRUSTOR HEREBY irrevocably grants, transfers, and assigns to Trustee, in trust, with power of sale, all that property in the City of National City, County of San Diego, State of California, described as: (See Legal Description - Exhibit "A") FOR THE PURPOSE OF SECURING: (1) Payment of the indebtedness evidenced by a Promissory Note of even date herewith executed by Trustor, in the principal sum of Seven Hundred Seventeen Thousand Five Hundred and No/100 Dollars ($717,500.00), and any renewal, extension, or modification of the promissory note (the "Note"); (2) Any additional sums and interest that may hereafter be loaned to the then record owner of the Property by Beneficiary, when evidenced by another note or notes reciting that it or they are so secured; (3) The performance of each agreement contained in this Deed of Trust; (4) The performance of each agreement of Trustor under that certain Acquisition, Rehabilitation and Permanent Financing Loan Agreement ("Loan Agreement") dated as of July , 2011, by and between Trustor and Beneficiary on file in the Office of Beneficiary; and (5) The performance of each agreement and covenant of Trustor under that certain Declaration of Covenants, Conditions and Restrictions ("Restrictions") of even date herewith and recorded concurrently herewith affecting the Property. 1 A. TO PROTECT TIIE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES: Maintenance and Repair (1) To keep the Property in good condition and repair; not to remove or demolish any buildings on the Property; to complete or restore promptly and in good and workmanlike manner any building that may be constructed, damaged, or destroyed on the Property; to pay when due all claims for labor performed and materials furnished for the Property; to comply with all laws affecting the Property or requiring any alterations or improvements to be made on the Property; not to commit or permit waste of the Property; not to commit, suffer, or permit any act upon the Property in violation of law; and to cultivate, irrigate, fertilize, fumigate, prune, and do all other acts that from the character or use of the Property may be reasonably necessary. Fire Insurance (2) To provide, maintain, and deliver to Beneficiary fire insurance satisfactory to and with loss payable to Beneficiary as its interest may appear. Subject to the rights of any senior lenders, the amount collected under any fire or other insurance policy may be applied by Beneficiary upon any indebtedness secured by this Deed of Trust and in any order determined by Beneficiary, or at the option of Beneficiary the entire amount so collected or any part of that amount may be released to Trustor. This application or release shall not cure or waive any default or notice of default under this Deed of Trust or invalidate any act done pursuant to such a notice. Notwithstanding the foregoing, in the event of any fire or other casualty to the Property, Trustor shall have the right to rebuild the Property, and to use all available insurance proceeds therefor, provided that (a) such proceeds are sufficient to rebuild the Property in a manner that provides adequate security to Beneficiary for repayment of the indebtedness secured hereby or if such proceeds are insufficient then Trustor shall have funded any deficiency, (b) Beneficiary shall have the right to approve (which shall not be unreasonably withheld or delayed) plans and specifications for any major rebuilding and the right to approve (which shall not be unreasonably withheld or delayed) disbursements of insurance proceeds for rebuilding under a construction escrow or similar arrangement, and (c) no material default then exists hereunder or under the Note. If the casualty affects only part of the Property and total rebuilding is not feasible, then proceeds may be used for partial rebuilding and partial repayment of the indebtedness secured hereby in a manner that provides adequate security to Beneficiary for repayment of the remaining indebtedness secured hereby. Defense of Security (3) To appear in and defend any action or proceeding purporting to affect the security of this Deed of Trust or the rights or powers of Beneficiary, or Trustee; and to pay all costs and expenses, including cost of evidence of title and attorneys' fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appcar, and in any suit brought by Beneficiary to foreclose this Deed of Trust. Payment of Liens and Taxes 2 (4) To pay, at least ten (10) days before delinquency, all taxes and assessments affecting the Property, including assessments on appurtenant water stock, all encumbrances, charges, and liens, with interest, on the Property or any part of the Property, which appear to be prior or superior to this Deed of Trust; and all costs, fees, and expenses of this Trust. If Trustor fails to make any payment or to do any act as provided in this Deed of Trust, then Beneficiary or Trustee may (but is not obligated to) make the payment or do the act in the required manner and to the extent deemed necessary by Beneficiary or Trustee to protect the security of this Deed of Trust. The performance by Beneficiary or Trustee of such an act shall not require notice to or demand upon Trustor and shall not release Trustor from any obligation under this Deed of Trust. Beneficiary or Trustee shall also have the following related rights and powers: to enter upon the Property for the foregoing purposes; to appear in and defend any action or proceeding purporting to affect the security of this Deed of Trust or the rights or powers of Beneficiary or Trustee; to pay, purchase, contest, or compromise any encumbrance, charge, or lien that in the judgment of either appears to be prior or superior to this Deed of Trust; to employ counsel; and to pay necessary expenses and costs, including reasonable attorneys' fees. Reimbursement of Costs (5) To pay immediately and without demand all sums expended by Beneficiary or Trustee pursuant to this Deed of Trust, with interest from date of expenditure at the amount allowed by law in effect at the date of this Deed of Trust, and to pay any amount demanded by Beneficiary (up to the maximum allowed by law al. the time of the demand) for any statement regarding the obligation secured by this Deed of Trust. (6) That it will pay the Note at the time and in the manner provided therein. (7) That it will not permit or suffer the use of any of the Property for any purpose other than the use for which the same was intended at the time this Deed of Trust was executed. (8) That the Note, the Loan Agreement, and the Restrictions are incorporated herein by reference and made a part of this Deed of Trust, although not attached. Copies are on file in the office of the Beneficiary. (9) To perform, in a timely manner, each agreement and covenant by and between Trustor on any and all notes, loans and deeds of trust that are senior and/or junior to this Deed of Trust. A default in any of these obligations and the expiration of any applicable notice or cure period shall constitute a default under this Deed of Trust. 3 B. THE PARTIES AGREE THAT: Condemnation Award (10) Any award of damages in connection with any taking or condemnation, or for injury to the Property by reason of public use, or for damages for private trespass or injury to the Property, is hereby assigned and shall be paid to Beneficiary (subject to the rights of any senior lenders), as its interest may appear as further security for all obligations secured by this Deed of Trust. Upon receipt of such proceeds, Beneficiary may hold the proceeds as further security, or apply or release them in the same manner and with the same effect as provided in Section 2 of this Deed of Tnzst for the disposition of proceeds of fire or other insurance. Waiver of Late Payments (11) By accepting payment of any sum secured by this Deed of Trust after its due date, Beneficiary does not waive its right either to require prompt payment when due of all other sums so secured or to declare default for failure to pay any indebtedness secured by this Deed of Trust. Trustee's Powers (12) Upon written request of Beneficiary and presentation of this Deed of Trust and the Note for endorsement, Trustee may (a) reconvey all or any part of the Property; (b) consent to the making and recording, or either, of any map or plat of all or any part of the Property; (c) join in granting any easement on the Property; or (d) join in or consent to any extension agreement or any agreement subordinating the lien, encumbrance, or charge of this Deed of Trust. Trustee need not provide Trustor with notice before taking any of the foregoing actions, and shall not be liable for the proper performance of the act. The exercise by Trustee of any of the foregoing powers shall not affect the personal liability of any person for payment of the indebtedness secured by this Deed of Trust, or the lien of this Deed of Trust on the remaining property as security for the repayment of the full amount secured by this Deed of Trust. Full Reconveyancc (13) Upon written request of Beneficiary stating that all sums secured by this Deed of Trust have been paid, surrender of this Deed of Trust, the Note, and any other notes secured by this Deed of Trust to Trustee for cancellation and retention, and payment of Trustee's fees and charges, Trustee shall reconvey, without warranty, the Property then subject to this Deed of Trust. The recitals in the reconveyance shall be conclusive proof of the truthfulness of the recitals. The grantee in the recon- veyance may be described as "the person or persons legally entitled thereto." Five years after issuance of the full reconveyance, Trustee may destroy the Note and this Deed of Trust, unless directed in the request to retain them. 4 Assignment of Rents (14) As additional security, Trustor hereby gives to and confers upon Beneficiary the right, power, and authority during the continuance of these Trusts, to collect the rents, issues, and profits of the Property, but reserves the right, prior to any default, which shall continue beyond any applicable notice and cure periods, to collect and retain these rents, issues, and profits as they become duc and payable. Upon any such default, Beneficiary may, without notice and without regard to the adequacy of the security for the indebtedness secured by this Deed of Trust, either per- sonally or by agent or court -appointed receiver, do the following: enter upon and take possession of the Property or any part of the Property; sue for or otherwise collect all rents, issues, and profits, including those past due and unpaid; and apply these rents, issues, and profits, less costs and expenses of operation and collection (including reasonable attorneys' fees), upon any indebtedness secured by this Deed of Trust, in any order determined by Beneficiary. The exercise of the foregoing rights by Beneficiary shall not cure or waive any default or notice of default under this Deed of Trust or invalidate any act done pursuant to such a notice. Default in Foreclosure (15) Upon default by Trustor in the payment of any indebtedness secured by this Deed of Trust or in the performance of any material obligation under this Deed of Trust, and the expiration of any and all applicable notice or cure periods, Beneficiary may declare all sums secured by this Deed of Trust immediately due and payable by delivering to Trustee a written declaration of default and demand for sale and a written notice of default and election to sell the Property. Trustee shall cause the notice of default and election to sell to be recorded. Beneficiary also shall deposit with Trustee this Deed of Trust, the Note, and all documents evidencing any additional expenditures secured by this Deed of Trust. After the required time period has lapsed following the recordation of the notice of default, and after notice of sale has been given as required by law, Trustee, without demand on Trustor, shall sell the Property at the time and place specified in the notice of sale, either as a whole or in separate parcels, and in any order determined by Trustee, at public auction to the highest bidder for cash in lawful money of the United States, payable at the time of sale. Trustee may postpone sale of all or any portion of the Property by public announcement at the time and place of sale, and from time to time thereafter may postpone the sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to the purchaser at the auction its deed conveying the Property sold, but without any covenant or warranty, express or implied. The recital in the deed of any matter or fact shall be conclusive proof of the truthfulness of the recital. Any person, including Trustor, Trustee, or Beneficiary, may purchase at the sale. After deducting all costs, fees, and expenses of Trustee and Beneficiary under this paragraph, including costs of procuring evidence of title incurred in connection with sale, Trustee shall apply the proceeds of sale to payment of: all sums expended under the terrns of this Deed of Trust, not then repaid, with accrued interest at the amount allowed by law in effect at the date of this Deed of Trust; all other sums then secured by this Deed of Trust; and the remainder, if any, to the person or persons legally entitled to the remaining proceeds. 5 (16) Should the undersigned agree to or actually sell, convey, transfer, or dispose of, or further encumber the real property described in this deed of trust securing the Promissory Note, or any part of it, or any interest in it, without first obtaining the written consent of the Holder of the Note, then all obligations secured by the Note and trust deed may be declared due and payable, at the option of the Holder. Consent to one transaction of this type will not constitute a waiver of the right to require consent to future or successive transactions. General Provisions (17) This Deed applies to, inures to the benefit of, and binds all parties to this Deed of Trust and their heirs, legatees, devisees, administrators, executors, successors, and assigns. The term "Beneficiary" shall mean the holder and owner, including pledgee, of the Note secured by this Deed of Trust, whether or not named as a beneficiary in this Deed of Trust, and the heirs, legatees, devisees, administrators, executors, and assigns of any such person. In this Deed, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. Acceptance by Trustee (18) Trustee accepts this Trust when this Deed, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party to this Deed of Trust of pending sale under any other deed of trust or of any action or proceeding in which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee. Substitution of Trustees (19) Beneficiary, or any successor in ownership of any indebtedness secured by this Deed of Trust, may from time to time, by written instrument, substitute a successor or successors to any Trustee named in or acting under this Deed of Trust. The substitution instrument shall contain the name of the original Trustor, Trustee, and Beneficiary under this Deed of Trust, the book and page where this Deed is recorded, and the name and address of the new Trustee. When executed by Beneficiary and duly acknowledged and recorded in the office of the recorder of the county or counties where the Property is situated, the substitution instrument shall be conclusive proof of proper substitution of the successor Trustee or Trustees. Any successor Trustee or Trustees shall, without conveyance from the predecessor Trustee, succeed to all its title, estate, rights, powers, and duties. Cumulative Powers and Remedies (20) The powers and remedies conferred in this Deed of Trust are concurrent and cumulative to all other rights and remedies provided in this Deed of Trust or given by law. These powers and remedies may be exercised singly, successively, or together, and as often as deemed necessary. 6 Conclusiveness of Recitals (21) The recitals contained in any reconveyance, trustee's deed, or any other instrument executed by Trustee from time to time under the authority of this Deed of Trust or in the exercise of its powers or the performance of its duties under this Deed of Trust, shall be conclusive evidence of their truth, whether stated as specific and particular facts, or in general statements or conclusions. Further, the recitals shall be binding and conclusive upon Trustor, its heirs, executors, adminis- trators, successors, and assigns, and all other persons. Attorneys' Fees (22) If any action is brought for the foreclosure of this Deed of Trust or for the enforcement of any provision of this Deed of Trust (whether or not suit is filed), Trustor agrees to pay all costs and expenses of Beneficiary and Trustee, including reasonable attorneys' fees; and these sums shall be secured by this Deed of Trust. Co -trustees (23) If two or more persons are designated as Trustee in this Deed of Trust, any, or all, power granted in this Deed of Trust to Trustee may be exercised by any of those persons, if the other person or persons are unable, for any reason, to act. Any recital of this inability in any instrument executed by any of those persons shall be conclusive against Trustor and Trustor's heirs and assigns. Request for Notices of Default and Sale (24) In accordance with Section 2924b of the California Civil Code, request is hereby made that a copy of any Notice of Default and a copy of any Notice of Sale under any Deeds of Trust executed by Trustor, and recorded in the Official Records of San Diego County, California, in which Beneficiary, is named as beneficiary, be mailed to: City of National City 1243 National City Boulevard National City, CA 91950-4397 NOTICE: A copy of any notice of default and of any notice of sale will be sent only to the address contained in this recorded request. If your address changes, a new request must be recorded. The undersigned Trustor requests that a copy of any notice of default and orally notice of sale under this Deed of Trust be mailed to Trustor at the address of Trustor set forth above. (25) Trustor shall permit Beneficiary and its agents or representatives, to inspect the Property at any and all reasonable times, upon prior written notice (unless Trustor is in default under any of the Loan Documents). Inspections shall be conducted so as not to interfere with the tenants' use and enjoyment of the Property and the general operation of the Property. 7 (26) The Property shall be subject to the restrictions set forth in the Loan Agreement and Restrictions and Trustor hereby consents to such restrictions and agrees to be bound thereby. Such restrictions shall be in addition to and not in limitation of the rights of Beneficiary expressly set forth in this Deed of Trust. (27) For purposes of this Deed of Trust, "Hazardous Materials" mean and include any hazardous, toxic or dangerous waste, substance or material including, without limitation, flammable explosives, radioactive materials, asbestos, hazardous wastes, toxic substances and any materials or substances defined as hazardous materials, hazardous substances or toxic substances in (or for purposes of) the Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), as amended (42 U.S.C. §9601, et seq.), the Hazardous Materials Transportation Act (49 U.S.C. § 1801, et seq.), the Resourcc Conservation and Recovery Act (42 U.S.C. §6901, et seg.), and those substances defined as hazardous wastes in §25117 of the California Health and Safety Code or as hazardous substances in §25316 of the California Health and Safety Code or in any regulations promulgated under either such law, any so-called "Superfund" or "Superlien" law, or any other federal, state or local statute, law, ordinance, code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards of conduct concerning, any hazardous, toxic or dangerous waste, substance or material, as now or at any time hereafter in effect. (28) In addition to the general and specific representations, covenants and warranties set forth in the Deed of Trust or otherwise, Trustor represents, covenants and warrants, with respect to Hazardous Materials, as follows: (a) Neither Trustor nor, to the best knowledge of Trustor, any other person, has ever caused or permitted any Hazardous Materials to be manufactured, placed, held, located or disposed of on, under or at the Property or any part thereof, and neither the Property nor any part thereof, or any property adjacent thereto, has ever been used (whether by Trustor or, to the best knowledge of Trustor, by any other person) as a manufacturing site, dump site or storage site (whether permanent or temporary) for any Hazardous Materials. "Hazardous Materials" for purposes of this Paragraph 28(a) shall not include substances typically used in the ordinary course of developing, operating and maintaining apartment complexes, provided that such substances are used in accordance with all applicable laws. (b) Trustor hereby agrees to indemnify Beneficiary, its officers, employees, contractors and agents, and hold Beneficiary, its officers, employees, contractors and agents harmless from and against any and all losses, liabilities, damages, injuries, costs, expenses and claims of any and every kind whatsoever paid, incurred or suffered by, or asserted against Beneficiary, its officers, employees, contractors or agents for, with respect to, or as a direct or indirect result of, the presence or use, generation, storage, release, threatened release or disposal of Hazardous Materials on or under the Property or the escape, seepage, leakage, spillage, discharge, emission or release of any Hazardous Materials from the Property (including, without limitation, any losses, liabilities, damages, injuries, costs, expenses or claims asserted or arising under CERCLA, any so-called "Superfund" or "Superlien" law, or any other federal, state or local statute, law, ordinance, code, rule, regulation, order or decree regulating, relating to or imposing liability or standards of conduct concerning any Hazardous Materials) regardless of whether or not caused by or within the control of Trustor. The foregoing indemnification shall not apply to any liability resulting from (i) an event 8 that occurs after a transfer of the Property due to any foreclosure sale (judicial or nonjudicial) or a deed in lieu of foreclosure, or (ii) acts or omissions of Beneficiary or its agents. (c) Trustor has not received any notice of (i) the happening of any event involving the use, spillage, discharge, or cleanup of any Hazardous Materials ("Hazardous Discharge") affecting Trustor or the Property or (ii) any complaint, order, citation or notice with regard to air emissions, water discharges, noise emissions or any other environmental, health or safety matter affecting Trustor or the Property ("Environmental Complaint") from any person or entity, including, without limitation, the United States Environmental Protection Agency ("EPA"). If Trustor receives any such notice after the date hereof, then Trustor will give, within seven (7) business days thereafter, oral and written notice of same to Beneficiary. (d) Without limitation of Beneficiary's rights under this Deed of Trust, Beneficiary shall have the right, but not the obligation, to enter onto the Property or to take such other actions as it deems necessary or advisable to clean up, remove, resolve or minimize the impact of, or otherwise deal with, any such Hazardous Materials or Environmental Complaint upon its receipt of any notice from any person or entity, including without limitation, the EPA, asserting the existence of any Hazardous Materials or an Environmental Complaint on or pertaining to the Property which, if true, could result in an order, suit or other action against Trustor affecting any part of the Property by any governmental agency or otherwise which, in the sole opinion of Beneficiary, could jeopardize its security under this Deed of Trust. All reasonable costs and expenses incurred by Beneficiary in the exercise of any such rights shall be secured by this Deed of Trust and shall be payable by Trustor upon demand together with interest thereon at a rate equal to the highest rate payable under the note secured hereby. (e) The foregoing representation, covenants, indemnities and warranties shall be continuing and shall be true and correct for the period from the date hereof to the release of this Deed of'l'rust (whether by payment of the indebtedness secured hereby or foreclosure or action in lieu thereof), and these representations, covenants, indemnities and warranties shall survive such release. (29) Each successor owner of an interest in the Property other than through foreclosure or deed in lieu of foreclosure of an interest superior to this Deed of Trust, shall take its interest subject to this Deed of Trust. (30) This Deed of Trust shall be governed by and construed in accordance with the laws of the State of California. (31) Trustor covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, sexual orientation, marital status, national origin, ancestry, familial status, source of income or disability in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, nor shall Trustor or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation of any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of 9 subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, with reference to the selection, location, number, use or occupancy of tenants, Lessees, subtenants, sublessees or vendees of the Property. The foregoing covenants shall run with the land. (32) Trustor shall refrain from restricting the rental, lease and sale of the Property and any dwelling unit thereon on the basis of race, color, creed, religion, sex, sexual orientation, marital status, national origin, ancestry, familial status, source of income or disability of any person. All such deeds, leases or contracts for the rental, lease or sale of the Property or any dwelling unit, shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: (a) Deeds. In deeds "The grantee herein covenants by and for itself, its successors and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, religion, sex, sexual orientation, disability, medical condition, familial status, source of income, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the land herein conveyed. The foregoing covenants shall run with the land." (b) Leases. In leases "The Lessee herein covenants by and for itself, its successors and assigns, and all persons claiming under or through them, and this lease is made and accepted upon and subject to the following conditions: That there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, religion, sex, sexual orientation, disability, medical condition, familial status, source of income, marital status, national origin or ancestry in the leasing, subleasing, renting, transferring, use, occupancy, tenure or enjoyment of the land herein leased, nor shall lessee itself, or any person claiming under or through it, establish or permit such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants or vendees in the land herein leased." (c) Contracts. In contracts for the rental, lease or sale of the Property or any dwelling unit "There shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, sexual orientation, disability, medical condition, familial status, source of income, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land, nor shall the transferee itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the land." (33) All individuals signing this Deed of Trust for a party which is a corporation, limited liability company, partnership or other legal entity, or signing under a power of attorney, or as a trustee, guardian, conservator, or in any other legal capacity, covenant to the Beneficiary that they have the 10 necessary capacity and authority to act for, sign and hind the respective entity or principal on whose behalf they are signing. TRUSTOR: T & T Community Properties, LLC, a California limited liability company By: Print Name: Its: 11 Exhibit "D" Declaration of Covenants, Conditions and Restrictions 35 NO CHARGE ON THIS DOCUMENT PER CALIFORNIA GOVERNMENT CODE SECTION 6103 Recording Requested By And When Recorded Mail To: the City of National the City 1243 National the City Boulevard National the City, CA 91950-4397 DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS (TENANT RESTRICTIONS) THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS ("Declaration") is dated as of the day of , 2011, by T & T Community Properties, LLC, a California limited liability company ("Declarant") in connection with that certain parcel of real property ("Property") located in the City of National the City, County of San Diego, California, described in Exhibit "A" attached hereto and incorporated herein by reference. RECITALS A. Concurrently with the recordation of this Declaration, the City of National City ("City") is funding a loan ("Loan") secured by a deed of trust ("Deed of Trust") on the Property, as described in that certain Acquisition, Rehabilitation and Permanent Financing Loan Agreement dated as of July , 2011 ("Agreement"). B. The Agreement and Deed of Trust were conditioned by the City in part upon the recordation of a document setting forth certain restrictions upon the use and sale of the Property. Declarant shall rehabilitate the entire eight (8) dwelling unit affordable housing project (the "Project"). One of the eight (8) units will be occupied as a manager's unit, but will be rent and occupancy restricted as set forth herein. NOW, THEREFORE, Declarant hereby declares that the Property shall be subject to the covenants, conditions and restrictions set forth below: 1. Restrictive Covenants. Declarant agrees and covenants on behalf of itself and its successors and assigns, and each successor in interest to the Property, that at all times during the term of this Declaration set forth herein eight (8) residential units at the Project shall be set aside and reserved as "Affordable Units." As used herein the term "Affordable Units" shall refer to the eight (8) residential units in the Project which are owned or held available strictly in accordance with the terms and conditions set forth below. (a) Affordable Unit and HOME Unit Restrictions. The following restrictions shall apply to the eight (8) Affordable Units, including the seven (7) floating Affordable HOME Units ("HOME 1 Units") restricted pursuant to the HOME Program, shall be restricted as set forth herein. The restrictions set forth in the Table below shall establish the maximum rental rate, from which a utility allowance as approved by the City shall be deducted: Number of Affordable Units (Column 1); Unit Type (Column 2); Maximum Rents as Percentage of AMI (Column 3); Number of HOME Units (Column 4); Limit in Income of Eligible Tenants based upon percentage of the Median Area Income (Column 5); Years of Restriction (Column 6): TABI,F. OF RENT AND INCOME RESTRICTION CRITERIA 1 2 3 4 5 6 NUMBER OF AFFORDABLE UNITS UNIT TYPE MAXIMUM RENTS AS%AGEOFAMI MIME ER OF HOME UNITS MAXIMUM % OF AREA MEDIAN INCOME OF ELIGIBLE TENANTS YEARS OF RENT RES IRK ION 3 2-Bedroom 30% of50% 3+** 50,° ° 55*** 4 2-Bedroom 30% of 60% 4*** 60% 55*** 1* 2-Bedroom 30%of80% 0*** 80% 55*** TOTAL AFFORDABLE UNITS - _ - TOTAL HOME UNITS -. 8 7*** * Manager's Unit *** The HOME Units will be restricted for fifteen (15) years under the HOME -Program. From year 16 through year 55, the Affordable Units that were previously restricted as HOME Units will continue to be subject to the restrictions set forth herein. (b) "Eligible Tenants" are those tenants whose aggregate gross annual income does not exceed the respective percentages set forth in the table above of annual median income, as adjusted for family size. For purposes of this Declaration, the current annual median income shall be the median income defined by the Department of Housing and Urban Development ("HUD") as the then current median income for the San Diego Standard Metropolitan Statistical Area, established periodically by HUD and published in the Federal Register, as adjusted for family size. The rents and the occupancy restrictions shall be deemed adjusted, from time to time, in accordance with any adjustments that are authorized by HUD or any successor agency. In the event HUD ceases to publish an established median income as aforesaid. the City may, in its sole discretion, use any other reasonably comparable method of computing adjustments in median income or HOME Program rents. Notwithstanding anything contained herein to the contrary, to the extent any other restrictions applicable to the Property limit the rent and/or occupancy of the Property, the most restrictive shall apply. (c) An adjustment of rents may be performed annually in accordance with the rents contained in the applicable the City or HUD rent schedules published by the City based upon the HUD determined median income for the San Diego Standard Metropolitan Statistical Area for the affected unit type and updated from time to time. However, in no event shall the rents, as adjusted, 2 exceed the maximum HOME rents for HOME Affordable Units. Further, the rents charged shall be further limited as set forth in Section 14, hereof. 2. Affordable Marketing Plan Compliance. Eligible Tenants shall be described in Declarant's approved Affirmative Marketing Plan and Declarant shall comply with the terms of its approved Affirmative Marketing Plan, renting to those person(s) referenced in said approved plan, as may be amended from time to time. Provided, however, nothing herein shall restrict Declarant from screening tenants through the application of criteria which is lawful and customary in apartment management in San Diego County and otherwise consistent with federal, state and local regulations and restrictions related to the financing for the Property. 3. Determination; Annual Requalification. On the July I immediately following the calendar year in which rehabilitation of the Affordable Units is completed, and annually on July 1 of each year thereafter during the term of this Declaration, Declarant shall certify to the City under penalty of perjury, utilizing such forms and providing such backup documentation as the City may require, that Declarant is complying with all provisions of this Declaration. Failure to complete the annual certification process described in this Section 3 within fifteen (15) days of receipt of written notice from the City shall constitute a material default under this Declaration. the City may resort to the remedies set forth herein upon such material default, as well as any and all other remedies available at law or in equity or contained in the Agreement or Deed of Trust. 4. Relationship with Declarant. The term "Eligible Tenant" shall not include Declarant or any individuals who are partners or shareholders in Declarant or in any entity having an interest in Declarant or in the Property, or officer, employee, agent or consultant of the owner, developer or sponsor. 5. No Student Dependents. No Affordable Unit shall be occupied or leased to any person who is a full-time student, or a household comprised exclusively of persons who are full-time students, unless such persons are married and eligible to file a joint federal income tax return. The term "full- time student" shall be defined as any person who will be or has been a full-time student during five calendar months of the calendar year in question at an educational institution (other than a correspondence school) with regular faculty and students and or a student dependent as defined in the U.S. Internal Revenue Code, unless the taxpayer (upon whom the student in question is dependent) resides in the same dwelling unit. 6. Income of Co -Tenants. The income of all co -tenants and/or non-dependent occupants shall be taken into account in determining whether a household is an Eligible Tenant hereunder. 7. Over Income Tenants. In the event that a tenant who was properly certified as an Eligible Tenant at the commencement of such tenant's occupancy ceases to be eligible, for any reason other than the tenant being over income, Tenant shall give sixty (60) days written notice to such tenant to vacate the Affordable Unit. The vacated Affordable Unit shall thereafter be rented to an Eligible Tenant. Notwithstanding anything to the contrary in this Declaration, no occupant of a HOME Program Affordable Unit or Affordable Unit who previously and properly qualified as an Eligible Tenant shall be evicted by Declarant because such occupant fails to requalify as an Eligible Tenant, because such occupant exceeds the income limits set forth above, as in the case of increased income, 3 except as provided for in Section 92.252 of the Code of Federal Regulations, as amended from time to time. Rather, the next available unit shall be designated as a HOME Program Affordable Unit or Affordable Unit to replace the Unit of the occupant in question. Further, subject to the fair market limitations set forth in HOME Regulation 92.252, such occupant shall commence paying rent equal to 30% of such occupant's adjusted income, effective from and after the date of such failure to requalify. The over -income tenant shall continue to be considered an Eligible Tenant until evicted, provided this continued occupancy complies with the applicable regulations as referenced below, depending upon the sources of funds involved: (a) Non -HOME Funds. A tenant who occupies an Affordable Unit that is not a HOME Affordable Unit and who becomes over income at the time of recertification shall be given one hundred cighty (180) days notice to vacate the affordable unit, effective from and after the date of such failure to requalify (i.e., the recertification date, provided the tenant was properly certified originally). During the time the over -income tenant resides in the Affordable Unit, the tenant shall continue to pay thc restricted rent. The tenant shall continue to be considered an "Eligible Tenant" until evicted, provided this continued occupancy complies with this Declaration. (b) IIOME Program Funds. When a HOME Eligible Tenant's gross income exceeds thc "low income" definition as defined in CFR 92.252(i), then the tenant shall commence paying rent equivalent to thirty percent (30%) of the tenant's adjusted income, subject to the fair market rent ceiling as set forth in HOME Regulation 92.252(i) and the next available comparable sized and configured unit shall be designated as a HOME Affordable Unit. The tenant shall continue to be considered an Eligible Tenant, provided this continued occupancy otherwise complies with all applicable HOME Program requirements. 8. Physical Condition of Affordable Units. After completion of rehabilitation of the Project, Declarant shall continually maintain the Affordable Units in a condition which satisfies the Housing Quality Standards promulgated by HUD under its Section 8 Program, as such standards are interpreted and enforced by the City under its normal policies and procedures. the City shall have the right to inspect the Affordable Units from time to time, on reasonable notice and at reasonable times, in order to verify compliance with the foregoing maintenance covenant. Further, each Affordable Unit shall be requalilied annually, as to the foregoing maintenance covenant, as part of the annual tenant requalification process described in Section 3, above. Any deficiencies in the physical condition of an Affordable Unit shall be corrected by Declarant at Declarant's expense within thirty (30) days of the identification of such deficiency by the City and delivery of written notice of the same to Declarant. 9. City Monitoring Functions. It is contemplated that, during the term of this Declaration, the City will perform the following monitoring functions: (a) preparing and making available to Declarant any general information that the City possesses regarding income limitations and restrictions which are applicable to the Affordable Units; (b) reviewing the documentation submitted by Declarant in connection with the annual certification process for Eligible Tenants described in Section 3, above; and (c) inspecting the Affordable Units to verify that they are being maintained in accordance with Section 8, above. Notwithstanding the foregoing description of the City's functions, Declarant shall have no claim or right of action against the City based on any alleged 4 failure to perform such function, except that Declarant may reasonably rely upon the City's tenant eligibility determination. 10. Designation of Affordable HOME Units. The HOME Units will be designated prior to initial occupancy at the discretion of the City. Such designations may be changed by Declarant, provided that the units before and after the change in designation are of the same unit types, size, features and otherwise comply with the terms of 24 C.F.R. §92.252(j). 11. Compliance with HOME Regulations. Declarant shall comply with all regulations, policies and procedures promulgated by HUD, or by the City in connection with the HOME Program, under which the Loan is being made to Declarant. Declarant's failure to so comply shall constitute a material default hereunder, entitling the City to the remedies set forth in Section 23, below. 12. Lease Provisions. Declarant agrees that it will include in all of its leases and cause its successors in interest to include in all of their leases, all provisions required under the terms of the HOME Program, including the following provisions: (a) Additional Lease Provisions/Annual Income Verification. Lessee agrees, upon written request from the landlord or the City of National the City ("the City"), to certify under penalty of perjury the accuracy of all information provided in connection with the examination or reexamination of annual income of the tenant's household. Further, tenant agrees that the annual income and other eligibility requirements are substantial and material obligations of the tenancy and that the tenant will comply promptly with all requests for information with respect to the tenancy from the landlord and/or the City. Further, tenant acknowledges that tenant's failure to provide accurate information regarding such requirements (regardless of whether such inaccuracy is intentional or unintentional) or the refusal to comply with the request for information with respect thereto, shall be deemed a violation of this lease provision, and a material breach of the tenancy and shall constitute cause for immediate termination of the tenancy. (b) Term of Lease for HOME Program Restricted Units. LESSEE has been made aware by Landlord that the unit being leased was assisted with HOME funds. Under the provisions of 24 C.F.R. §92.253, a lease must be for a period of not less than one (1) year unless the parties agree by mutual agreement that the term of the lease be less. The Lessee acknowledges by initialing in the space below that it has been made aware of the provisions of 24 C.F.R. §92.253. 13. Successors Bound. Declarant covenants, for itself and its successors and assigns, not to sell, transfer, assign or otherwise dispose of ownership of the Property, without the express written consent of the City. Any prospective purchaser, transferee or assignee shall expressly promise in writing to be bound by all of the provisions hereof, including the covenant in this Section 13 to require successors to expressly assume the obligations herein. It is expressly acknowledged that the covenants and restrictions set forth herein shall survive any repayment of the Loan. Further, the obligations of Declarant hereunder shall be deemed independent of Declarant's obligations under the Loan. 5 14. Maximum Rent To Be Collected by Declarant. In no event, shall all of the rent paid by the Eligible Tenant for any rent restricted unit exceed the amount of rent set forth in the table in Section 1(a), above. Should Declarant receive rent from a tenant in excess of the allowable maximum rent set forth in the table in Section 1(a), above, Declarant agrees to immediately notify the City and reimburse the City for any such overpayment. Acceptance by Declarant or its successors in interest, of rent in excess of the maximum rent set forth in the table in Section 1(a), above, shall constitute a material breach of this Declaration and the Agreement. 15. Cross Default; Occupancy Schedule for Affordable Units. A default under the Agreement, including without limitation failure to make the annual loan payments to the City as set forth in the Agreement, shall be a material default under this Declaration. The Affordable Units shall be rehabilitated and receive final inspection approval and shall be occupied by Eligible Tenants no later than six (6) months after the Closing, as defined in the Agreement. Time is of the essence in the rehabilitation and occupancy of the Affordable Units. 16. Term. This Declaration and the covenants and restrictions contained herein shall be effective upon the completion of the rehabilitation of the Project and shall remain in full force and effect for a period of fifty-five (55) years from their effective date. 17. Covenant Against Discrimination. Declarant covenants on behalf of itself and its successors and assigns, and each successor in interest to the Property, not to discriminate against any purchaser or prospective purchaser of any Affordable Unit on the basis of their race, age, sexual orientation, marital status, color, religion, sex, handicap, or national origin, as referenced in all applicable state, local and federal law. 18. Enforcement. Declarant expressly agrees and declares that the City or any successor public agency is a proper party and shall have standing to initiate and pursue any and all actions or proceedings, at law or in equity to enforce the provisions hereof and/or to recover damages for any default hereunder, notwithstanding the fact that such damages or the detriment arising from such default may have actually been suffered by some other person or the public at large. Further, the City or any successor public agency shall be the proper party to waive, relinquish, release or modify the rights, covenants, obligations or restrictions contained in or arising under this Declaration. 19. Attorneys' Fees. In the event that any litigation for the enforcement or interpretation of this Declaration, whether an action at law or arbitration or any manner of non judicial dispute resolution to this Declaration by reason of the breach of any condition or covenant, representation or warranty in this Declaration, or otherwise arising out of this Declaration, the prevailing party in such action shall be entitled to recover from the other reasonable attorneys' fees to be fixed by the court which shall render a judgment, as well as the costs of suit. 20. Severability. In the event that any provision or covenant of this Declaration is held by a court of competent jurisdiction to be invalid or unenforceable, then it shall be severed from the remaining portions of this Declaration which shall remain in full force and effect. 6 21. Covenants to Run With the Land. The covenants contained herein shall constitute "covenants running with the land", and shall bind the Property and every person having an interest therein during the term of this Declaration. Declarant agrees for itself and its successors that, in the event that, for any reason whatsoever, a court of competent jurisdiction determines that the foregoing covenants do not run with the land, such covenants shall be enforced as equitable servitudes against the Property. 22. Recordation; Waiver and Amendment. This Declaration shall be recorded in the Office of County Recorder of San Diego, California. No provision of this Declaration, or breach of any provision, can be waived except in writing. Waiver of any provision or breach shall not be deemed to be a waiver of any other provision, or of any subsequent breach of the same or other provision. Except as otherwise provided herein, this Declaration may be amended, modified or rescinded only in writing signed by Declarant and the City. 23. Remedies. (a) Contract Governed by Laws of State of California. This Declaration, its performance, and all suits and special proceedings under this Declaration, shall be constituted in accordance with the laws of the State of California and Federal law, to the extent applicable. In any action, special proceeding, or other proceeding that may be brought arising out of, under or because of this Declaration, the laws of the State of California and the United States, to the extent applicable, shall govern to the exclusion of the law of any other forum, without regard to the jurisdiction in which the action or special proceeding may be instituted. (b) Standing, Equitable Remedies; Cumulative Remedies. Declarant expressly agrees and declares that the City or any successor or public agency shall be the proper party and shall have standing to initiate and pursue any and all actions or proceedings, at law or in equity, to enforce the provisions hereof and/or to recover damages for any default hereunder, notwithstanding the fact that such damages or the detriment arising from such a default may have actually been suffered by some other person or by the public at large. Further, Declarant expressly agrees that receivership, injunctive relief and specific performance are proper pre-trial and/or post -trial remedies hereunder, and that, upon any default, and to assure compliance with this Declaration. Nothing in this subparagraph, and no recovery to the City, shall restrict or limit the rights or remedies of persons or entities other than the City, against Declarant in connection with the same or related acts by Declarant. The remedies set forth in this Section are cumulative and not mutually exclusive, except the extent that their award is specifically determined to be duplicative by final order of a court of competent jurisdiction. (c) Remedies at Law for Breach of Tenant Restrictions. In the event of any material default under Sections 1 through 22 hereof regarding restrictions on the operation and the transfer of the Property and the expiration of any applicable cure period provided under the Agreement, the City shall be entitled to, in addition to any and all other remedies available at law or in equity: (i) declare the Loan to be all due and repayable; and (ii) recover compensatory damages. If the default in question involves the collection of rents in excess of the rents peiiiiitted hereunder, the amount of such compensatory damages shall be the product of multiplying: (a) the number of months that the default in question has continued until the time of trial by (b) the result of subtracting the rents 7 properly chargeable hereunder for the Affordable Units in question from the amount actually charged for those Affordable Units. Declarant and the City agree that it would be extremely difficult or impracticable to ascertain the precise amount of actual damages accruing to the City as a result of such a default and that the foregoing formula is a fair and reasonable method of approximating such damages. the City shall be entitled to seek and to recover damages in separate actions for successive and separate breaches which may occur. Further, interest shall accrue on the amount of such damages from the date of the breach in question at the rate of ten percent (10%) per annum or the maximum rate than allowed by law, whichever is less. Nothing in this section shall preclude the award of exemplary damages as allowed by law. (d) Expert Witness, Attorneys' Fees, and Costs. The parties agree that the prevailing party in litigation for the breach and/or interpretation and/or enforcement of the terms of this Declaration and/or the Agreement shall be entitled to their expert witness fees, if any, as part of their costs of suit, and reasonable attorneys' fees as may be awarded by the court, pursuant to California Code of Civil Procedure ("CCP") § 1033.5 and any other applicable provisions of California law, including, without limitation, the provisions of CCP §998. 24. Mortgagees Protection. No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in this Declaration shall defeat or render invalid or in any way impair the lien or charge of any permitted deed of trust recorded on the Property provided, however, that any subsequent owner of the Property shall be bound by the covenants, conditions, restrictions, limitations and provisions of this Declaration, whether such owner's title was acquired by foreclosure, deed in lieu of foreclosure, trustee's sale or otherwise. 25. City Approval of Property Manager. At all times that this Declaration is in force and effect, and the City has served a thirty (30) day written notice of deficiencies in the property management for the Property which do not conform to the standards of property management of a professional property manager operating similar properties in San Diego County and which deficiencies have not been rectified by Declarant, within the thirty (30) day period (unless such deficiency is not reasonably capable of being cured within such thirty (30) day period, then such reasonable amount of time as is needed not to exceed ninety (90) days, provided Declarant commences cure within such thirty (30) day period and continues to diligently pursue cure), then, the City shall have the right, in its reasonable discretion, and upon thirty (30) days written notice: (i) to require the retention of a professional property management firm to manage the Property; (ii) to approve, in advance and in writing, the retention of any such property management firm, including the terms of the contract governing such retention; and (iii) to require Declarant to terminate any such property management firm, provided that such termination shall comply with the termination provisions of the management contract in question. Declarant shall cooperate with the City to effectuate the City's rights. 26. Declarant Required to Pay Monitoring Fees. Declarant shall pay the City a set-up fee (the "Set -Up Fee") in the amount of Five Hundred Dollars ($500.00) which shall be paid by Declarant to the City at closing of the Loan. Declarant shall pay to the City an annual monitoring fee, as determined by the City in schedules printed by the City from time to time. Said fee shall be subject to revision annually, based upon the increase in the Consumer Price Index for the San Diego Metropolitan Area. Each year the Monitoring Fees shall be increased based upon the percentage of 8 increase in the Cost of Living as referenced in the Consumer Price Index for the San Diego Metropolitan Area. In no event, shall the monitoring fees decrease, however. The schedule of monitoring fees may be requested from the City. No fees shall be due and payable for any of the HOME Units, however. Annual Monitoring Fees shall be paid to the City annually within ten (10) days after the City provides a written invoice for the same. Failure to timely pay such fees shall constitute a material default under the terms and conditions of the Agreement and this Declaration. Both the Set -Up Fee and the Loan Monitoring Fee shall be paid to the City as a consideration for the lending of funds by the City to Declarant. 27. No Conversion to Condominiums. Declarant agrees during the term of this Declaration, that Declarant shall not, and shall not allow any other person to, cause all or any portion of the Property to be converted to condominiums or to otherwise allow a condominium map or condominium plan to be recorded or filed against all or any portion of the Property. Declarant further agrees that the conversion of all or any portion of the Property to condominiums and/or the recordation or filing of a condominium map or condominium plan against all or any portion of the Property during the term of this Declaration, shall be a breach of this Declaration, the Agreement, the Note, as defined in the Agreement, and the Deed of Trust, entitling the City to immediately exercise any and all of its rights and remedies under this Declaration, the Agreement, Note and Deed of Trust, including without limitation acceleration of the Note and foreclosure under the Deed of Trust. 28. Noticing Requirements Prior to Termination. Prior to termination of this Declaration, Declarant shall comply with any and all noticing requirements required under any applicable laws or regulations, including without limitation, the requirements of California Government Code Sections 65863.10 and 65863.11. 29. No Further Encumbrance. Should Declarant agree to or actually sell, convey, transfer, further encumber or dispose of the Property or any interest in it (or obtain any other funds with respect to the Property or Declarant's activities at the Property, regardless of whether the source), without first obtaining the written consent of the City, shall be a material breach of this Declaration. The consent to one transaction of this type will not constitute a waiver of the right to require consent to future or successive transactions. This Declaration shall remain in effect for its fifty-five (55) year term, whether or not the City approves or disapproves a successor -in -interest or further encumbrance. 30. Indemnity. Declarant shall be responsible for all injuries to persons and/or all damages to real or personal property of the City or others, caused by or resulting from the sale, rental, ownership or operation of the Property, the negligence and/or breach of this Declaration, of itself, its employees, subcontractors and/or its agents during or arising out of rehabilitation of the Affordable Units. Declarant shall defend and hold harmless and indemnify the City, and all of its officers and employees from and against all claims, liens, claims of lien, losses, damages, judgments, costs, and expenses, whether direct or indirect, arising in any way from (i) the sale, rental, ownership or operation of the Property, including without limitation the Affordable Units; (ii) Declarant's negligence; (iii) breach of this Declaration, by Declarant, its employees, subcontractors and/or its agents; and/or (iv) arising out of the rehabilitation of the Affordable Units, except those arising from the sole negligence or willful misconduct of the City. 9 3. Signature Authority. All individuals signing this Declaration for a party which is a corporation, limited liability company, partnership or other legal entity, or signing under a power of atton ieor as a trustee, guardian, conservator, or in any other legal capacity, covenant to the City that they have the necessary capacity and authority to act for, sign and bind the respective entity or principal on whose behalf they are signing. DECLARANT: f & T Community Properties, LLC, a California limited liability company Ry: Print Name: Its: 10 Exhibit "E" Statement of Insurance Requirements 36 STATEMENT OF INSURANCE REQUIREMENTS (Including All Successors and Assigns of Borrower) Borrower acknowledges the receipt of these insurance requirements and agrees to maintain in full force and effect, the following policies at Borrower's sole cost and expense during the term of the Declaration of Covenants, Conditions and Restrictions being made by Borrower with respect to a loan from the City of National City ("City"). All insurance policies shall contain a provision requiring thirty (30) days advance written notice to the City of cancellation. Borrower agrees to maintain the following insurance coverages: 1. Required Insurance. To at all times provide, maintain and keep in force at Borrower's sole expense the following policies of insurance: (a) Insurance against loss or damage to the Improvements by fire and any of the risks covered by insurance of the type now known as "fire and extended coverage" including endorsement designating City as a Loss Payee, in an amount no less than the original amount of the Note plus any senior liens or encumbrances or the full replacement cost of the Improvements, including the cost of debris removal (exclusive of the cost of excavations, foundations and footings below the lowest basement floor), whichever is greater, and with not more than One Thousand Dollars ($1,000.00) deductible from the loss payable for any casualty. The policies of insurance carried in accordance with this subparagraph (a) shall contain the "Replacement Cost Endorsements"; (b) Business interruption insurance and/or loss of "rental value" insurance in such amounts as are satisfactory to the City; (c) Auto liability and comprehensive general public liability insurance, including coverage for elevators and escalators, if any, on the Property insuring against claims for "personal injury", including, without limitation, bodily injury, death or property damage occurring on, in or about the Property and the adjoining streets, sidewalks and passageways, such insurance to afford immediate minimum protection to a limit of not less than a project specific One Million Dollars ($1,000,000.00) Per Occurrence, Combined Single Limit with Two Million Dollar ($2,000,000.00) Aggregate Limit, with respect to personal injury or death to any one or more persons or damage to property (as that amount may be increased from time to time by the City in its reasonable discretion). General Liability policy must endorse and designate City and the City of National City as Additional Insureds. Liability Additional Insured Endorsement must be primary, must not exclude Completed Operations, and must be endorsed to include a Ten (10) year extended reporting period; 1 (d) Workers' compensation insurance (including employer's liability insurance, if requested by the City) for all employees of Borrower engaged on or with respect to the Property in such amount as is reasonably satisfactory to the City, or if such limits are established by law, in such amounts; (e) During the course of any construction or repair of Improvements on the Property, builder's completed value risk insurance against "all risks of physical loss", including collapse and transit coverage, during construction of such Improvements, with deductibles not to exceed Ten Thousand Dollars ($10,000.00), in non -reporting form, covering the total value of work performed and equipment, supplies and materials furnished. The City shall be endorsed as a Loss Payees. Said policy of insurance shall contain the "permission to occupy upon completion of work or occupancy" endorsement; (f) Boiler and machinery insurance covering pressure vessels, air tanks, boilers, machinery, pressure piping, heating, air conditioning, and elevator equipment and escalator equipment provided the Improvements contain equipment of such nature, and insurance against loss of occupancy or use arising from breakdown of any of the items referred to in this subparagraph (1), in such amounts as are reasonably satisfactory to the City; (g) Insurance against flood damage, including surface waters, if the Property is located in an area considered a flood risk by the United State Department of Ilousing and Urban Development; (h) Insurance against loss or damage to the Personal Property by fire and other risks covered by insurance of the type now known as "fire and extended coverage"; and (i) Such other insurance (including, but not limited to, earthquake insurance), and in such amounts, as may from time to time be required by the City against the same or other hazards, provided such additional insurance is available at commercially reasonable rates. (j) Pollution Liability insurance — project specific limits (k) Excess Liability Insurance (1) Professional Liability / E&O (design professionals, etc) — project specific limits All policies of insurance required by the terms of the Deed of Trust shall contain an endorsement or agreement by the insurer that any loss shall be payable in accordance with the terms of such policy, notwithstanding any act or negligence of Borrower which might otherwise result in forfeiture of said insurance, and the further agreement of the insurer waiving all rights of setoff, counterclaim or deductions against Borrower. 2 2. Delivery of Policies, Payment of Premiums. All policies of insurance shall be issued by companies admitted to issue insurance policies in the State of California, and rated AV or better by AM Best, and in amounts in each company satisfactory to the City. All policies of insurance shall have attached thereto a lender's loss payable endorsement for the benefit of the holder of the first priority deeds of trust on the property and improvements, and then for the benefit of the City in form satisfactory to the City. Borrower shall furnish the City with an original copy of all policies of required insurance. At least thirty (30) days prior to the expiration of each such policy, Borrower shall furnish the City with evidence satisfactory to the City of the payment of premium and the re - issuance of a policy continuing insurance in force as required by the Deed of Trust. All such policies shall contain a provision that such policies will not be canceled or materially amended, which terms shall include any reduction in the scope of limits of coverage, without at least thirty (30) days prior written notice to the City. In the event Borrower fails to provide the policies of insurance required by the Deed of Trust, the City may procure such insurance or single -interest insurance for such risks covering the City's interest, and Borrower will pay all premiums thereon promptly upon demand by the City, and until such payment is made by Borrower the amount of all such premiums, together with interest thereon at the rate of ten percent (10%) per annum or the maximum rate allowed by law, whichever is less. In the event any lender, who has a secured interest in the Property, requires additional insurance and/or insurance with greater coverages than that required by this Statement of Insurance Requirements, Borrower agrees to provide to and name the City on such policies providing greater and additional coverages. Borrower, by execution of this Statement of Insurance Requirements, agrees to provide the required insurance during the term of the loan and to require all successors in interest to agree to provide such coverages for the benefit of the City. Borrower acknowledges that performance of the covenants contained herein are a material inducement to making the loan to Borrower. 3. Signature Authority. All individuals signing this Statement of Insurance Requirements for a party which is a corporation, limited liability company, partnership or other legal entity, or signing under a power of attorney, or as a trustee, guardian, conservator, or in any other legal capacity, covenant to the City that they have the necessary capacity and authority to act for, sign and bind the respective entity or principal on whose behalf they are signing. Dated as of the day of , 2011. Borrower: T & T Community Properties, LLC, a California limited liability company By: Print Name: Its: 3 Exhibit "F" Security Agreement 37 SECURITY AGREEMENT THIS SECURITY AGREEMENT ("Agreement") is dated as of the day of , 2011, by and between T & T Community Properties, LLC, a California limited liability company ("Borrower") and the City of National City ("City"). City and Borrower are collectively referred to as the "Parties." RECITALS: A. The City has agreed to loan up to Seven Hundred Seventeen Thousand Five Hundred and No/100 Dollars ($717,500.00) to Borrower ("Loan") pursuant to that certain "Acquisition, Rehabilitation and Permanent Financing Loan Agreement" dated as of July , 2011 (the "Loan Agreement"). The Loan is secured by a deed of trust ("Deed of Trust") on certain real property (the "Property") owned by Borrower more particularly described in the Loan Agreement. The Loan is evidenced by that certain Promissory Note Secured by Deed of Trust ("Note") of even date herewith, executed by Borrower in favor of the City. The Loan Agreement, Note, Deed of Trust and this Agreement may be referred to collectively herein as the "Loan Documents." B. The Parties desire that the Loan and the Note should be further secured by certain personal property owned by Borrower and the Property. AGREEMENT NOW, THEREFORE, for valid consideration, the Parties agree, pledge and covenant as follows: 1. Grant of Security Interest. Borrower hereby grants to the City a security interest, in the following described personal property ("Collateral"): SEE EXHIBIT "1" ATTACHED HERETO FOR DESCRIPTION OF COLLATERAL 2. Attachment of Security Interest. The security interest hereby created shall attach immediately upon execution of this Agreement by Borrower and shall secure the payment of the Loan according to the terms of the Loan Agreement. 3. Proceeds Included. Borrower also hereby grants to the City a security interest in and to any and all additions and modifications to, replacements and substitutions for, and products, proceeds, and interest from the Collateral on any sale, transfer, exchange or other disposition thereof. How- ever, nothing in this Paragraph 3 shall be deemed to constitute a grant of authority to Borrower to sell, transfer, exchange or otherwise dispose of the Collateral without the prior written consent of the City. 1 4. Warranties of Borrower. Borrower represents and warrants to the City that: (a) Borrower is or will be the full legal owner of the Collateral and no other person or entity has or will have any right, title, interest or claim in or to the Collateral or any part thereof, except for the security interest created herein, or created pursuant to those certain deeds of trust recorded as encumbrances against the property that are senior to the City's deed of trust and that were duly approved by the City, and/or security interests in the Collateral granted by Borrower with the knowledge and approval of the City, in its reasonable discretion. (b) Some or all of the Collateral is or will be located at the Property, and once so located, it will not, during the continuance of this Agreement, be removed from the Property without the prior written consent of the City. If the Collateral is moved or upon any default, which continues beyond any applicable notice and cure periods, of this Agreement by Borrower, at the City's written request, at its own cost and expense, shall assemble the Collateral wherever in San Diego County the City requests the Collateral to be assembled. 5. Duty to Maintain. Borrower shall maintain the Collateral, and each part or item thereof, in good order and repair at Borrower's own cost and expense, and shall not use the Collateral or allow the Collateral to be used in a manner which is likely to result in deterioration of the Collateral to a degree beyond that associated with normal usage and ordinary "wear and tear." 6. Insurance. Borrower shall keep the Collateral, and all parts and items thereof, insured, at Borrower's own cost and expense, in an amount equal to the full replacement cost new value of the Collateral, as such replacement value may vary from time to time. Such insurance policy shall cover all insurable risks to which the Collateral might foreseeably be exposed, and shall be issued by an insurance carrier acceptable to the City, and shall provide that the loss payable thereunder shall be paid to Borrower, the City and to any senior secured party, as their respective interests may appear. Notwithstanding the foregoing, this Paragraph 6 shall not be deemed to require a separate insurance policy covering the Collateral, if equivalent coverage first satisfactory to the City is provided as part of the insurance maintained by Borrower with respect to the Property as a whole. 7. Taxes. Borrower shall be solely liable for any taxes or assessments which are levied or assessed against the Collateral and shall ensure the prompt payment of same. 8. Disposition of Collateral. Borrower shall not (without the prior written consent of the City), sell, transfer, encumber, hypothecate, exchange or otherwise dispose of the Collateral until the Loan secured hereby is fully and finally paid, except Borrower may replace items of collateral in the ordinary course of business with items of equal or greater value. 9. Right to Inspect. The City, through its agents or employees, shall have the right, upon reasonable notice, to enter the Property at reasonable times and intervals to inspect and take inventory of the Collateral, provided the same does not unnecessarily infringe upon the operation of the Property. 2 10. Right to Make Payments. The City shall be entitled, but not obligated, to pay, on behalf of Borrower, after giving written notice to Borrower and ten (10) days from receipt of the notice in which to make payment, any costs or expenses reasonably necessary to keep the Collateral fully insured, properly repaired or maintained, and lien free, which costs or expenses Borrower should have paid pursuant to this Agreement but failed to do so. Similarly, the City shall have the right to enter the Property, upon reasonable notice to Bon-ower and its Eligible Tenants and at reasonable times, and to perform such acts as it may deem necessary for the maintenance or protection of the Collateral. Any monies expended or expenses incurred under this Paragraph 10 shall be secured by the security interest created by this Agreement, and shall be due and payable to the City by Borrower, together with interest thereon at the lesser of ten percent (10%) per annum or the maximum rate permitted by law, on demand. 1 1. Assignment by City. The City may assign its rights hereunder and its security interest created herein. In the event of such an assignment, the City's assignee shall be entitled, upon written notice to Borrower of such assignment, to all performance required of Borrower under this Agreement, and to all payments and monies secured by this Agreement. 12. Default. If Borrower fails to perform any obligation provided for in this Agreement or to pay any obligation secured by this Agreement as such obligation comes due, after any notice or cure periods provided herein or in any unexpired Loan Documents, then Borrower shall be in default of this Agreement, and the City shall be entitled to all of the rights and remedies afforded secured parties under applicable provisions of Division 9 of the California Commercial Code on the date of this Agreement, excluding the right to any deficiency judgment against Borrower. Further, the City may also: (a) Enter the Property to take possession of the Collateral, provided that the Collateral shall not be removed from the Real Property unless such removal is reasonably necessary to protect the Collateral from destruction or unauthorized removal by Borrower or some third party; or (b) Enter the Property and dispose of the Collateral, in the manner provided by the California Commercial Code; and, (c) Apply the proceeds of any such disposition of the Collateral, in addition to the items specified in Division 9 of the California Commercial Code, to the payment of reasonable attorneys' fees and legal expenses incurred by the City as a result of Borrower's default. Before exercising any of the foregoing rights, the City shall first give written notice of such default to Borrower, and Borrower shall have thirty (30) days from receipt of the notice to cure any such default before the City exercises its rights. 13. Financing Statement. Immediately upon executing this Agreement, the Parties shall execute any Financing Statement(s) necessary to perfect the security interest created by this Agreement. Such Financing Statement(s) shall be on a form or forms approved by the California Secretary of State, and the City shall pay the fees associated with filing such documents. 3 14. No Waiver. Neither the acceptance of any partial or delinquent payment by the City nor the City's failure to exercise any of its rights or remedies upon the occurrence of a default by Borrower shall constitute a waiver of such default, a modification of this Agreement or of Borrower's obligations under this Agreement, or a waiver of any subsequent default by Borrower. 15. Term. This Agreement shall continue in effect until each and every obligation of Borrower under the Loan Agreement has been satisfied (except any obligations that survive repayment of the Loan, foreclosure of the Property or termination of the Loan Agreement), or until the Loan Agreement has terminated by virtue of a foreclosure of a senior lienholder. 16. Time of Essence. Time is hereby expressly declared to be of the essence of this Agreement. 17. Notice. Notice hereunder shall be deemed given upon actual personal delivery to the notified Party or upon the expiration of three (3) days from the insertion of the notice in a United States Mail depository within California, or upon the expiration of seven (7) days from the insertion of the notice, properly addressed and certified mail, return receipt requested, postage prepaid, in a United States Mail depository outside of California. Notices shall be sent to the addresses of the Parties as set forth below, or as changed by either party from time to time by written notice to the other Party. City: City of National City 1243 National City Boulevard National City, CA 91950-4397 Borrower: T & T Community Properties, LLC 18. Certain Requirements Superior. All provisions of this Agreement shall be subject and subordinate to: (a) Any and all federal, state and local statutes and regulations applicable to the Property, the Collateral or the Loan; (b) The provisions of the Loan Agreement secured by this Agreement, to the extent of any inconsistency between it and this Agreement; and 19. Attorneys' Fees. If either party initiates legal proceedings for the enforcement or interpretation of this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees and costs of suit, in addition to any other relief to which such Party may be entitled. 20. Severability. If any provision of this Agreement is held to be invalid or unenforceable by a court of competent jurisdiction, then such provision shall be severed from the rest of this Agreement and the remaining provisions shall remain in full force and effect. 4 21. Construction of Agreement. The provisions contained in this Agreement shall not be construed in favor of or against either party, but shall be construed as if both Parties prepared this Agreement. This Agreement shall be construed in accordance with the laws of the State of California. 22. Counterparts. This Agreement may he executed in any number of counterparts and, as so executed, the counterparts shall constitute one and the same Agreement. The parties agree that each such counterpart is an original and shall be binding upon all the parties, even though all of the parties are not signatories to the same counterpart. 23. Exhibits and Recitals Incorporated. All exhibits referred to in this Agreement are hereby incorporated in this Agreement by this reference, regardless of whether or not the exhibits are actually attached to this Agreement. The Recitals to this Agreement are hereby incorporated in this Agreement by this reference. 24. Signature Authority. All individuals signing this Agreement for a party which is a corporation, limited liability company, partnership or other legal entity, or signing under a power of attorney, or as a trustee, guardian, conservator, or in any other legal capacity, covenant to the City that they have the necessary capacity and authority to act for, sign and bind the respective entity or principal on whose behalf they are signing. BORROWER: T & T Community Properties, LLC, a California limited liability company By: Print Name: Its: City: City of National City By: Ron Morrison, Mayor APPROVED AS TO FORM: Christensen & Spath LLP, Special Counsel to the City By: Print Name: Its: 5 Exhibit "G" Unsecured Environmental Indemnity Agreement 38 UNSECURED ENVIRONMENTAL INDEMNITY AGREEMENT THIS UNSECURED ENVIRONMENTAL INDEMNITY AGREEMENT ("indemnity") is dated as of the day of , 2011, by T & T Community Properties, LLC, a California limited liability company ("Indemnitor"), to and for the benefit of the City of National City ("City"), its successors and assigns and, to the extent not otherwise referenced, the Indemnified Parties (as hereinafter defined). RECITALS A. The City has agreed to make a loan ("City Loan") to Indemnitor as described in that certain Acquisition, Rehabilitation and Permanent Financing Loan Agreement between the City and Indemnitor, dated as of July _ , 2011 ("City Loan Agreement") and that certain Promissory Note made by Indemnitor in favor of the City, of even date herewith ("Promissory Note"), which City Loan is secured by, among other things, a Deed of Trust executed by Indemnitor in favor of the City ("Deed of Trust"). The Deed of Trust encumbers the real property described on Exhibit A attached hereto (the "Property"). B. It is a condition of the City making the City Loan that this Indemnity be executed and delivered by lndemnitor. 'fhe City is making the City Loan in reliance upon this Indemnity. C. This Indemnity is unsecured and is separate from the security and other collateral being delivered by Indemnitor in connection with the making of the City Loan. AGREEMENT NOW, THEREFORE, in consideration of the foregoing and of the City making the City Loan, and other valuable consideration, the receipt of which is hereby acknowledged, Indemnitor agrees as follows: 1. Indemnity. (a) Subject to Sections 2, 3 and 4 below, Indemnitor hereby agrees to defend, protect, indemnify and hold harmless the City, the City's affiliates, directors, officers, shareholders, agents and employees, and the City's participants, successors and assigns specified in Section 4 hereof (hereinafter, collectively, the "Indemnified Parties"), from and against, and shall reimburse the Indemnified Parties for, any and all actual out-of-pocket costs (including, without limitation, attorneys' fees, expenses and court costs), expenses or losses arising from any claim, liability, damage, injunctive relief, injury to person, property or natural resources, fine, penalty, action or cause of action (collectively, "Costs and Liabilities"), incurred by or asserted against any Indemnified Party and arising directly or indirectly, in whole or in part, out of the release, discharge, deposit or presence, or alleged or suspected release, discharge, deposit or presence, of any Hazardous Materials at, on, within, under, about or from the Property, or in or adjacent to any part of the Property, or in the soil, groundwater or soil vapor on or under the Property, or elsewhere in 1 connection with the transportation of Hazardous Materials to or from the Property in violation of any Hazardous Materials Laws, whether or not known to Indemnitor or Indemnified Parties, whether foreseeable or unforeseeable, regardless of the source of such release, discharge, deposit or presence or, except as expressly provided to the contrary in Sections 2 and 4 hereof, regardless of when such release, discharge, deposit or presence occurred or is discovered. Without limiting the generality of the foregoing indemnity, such Costs and Liabilities shall include, without limitation, all actual out- of-pocket costs incurred by Indemnified Parties in connection with (i) determining whether the Property is in compliance with this Indemnity and with all applicable Hazardous Materials Laws or the amount of money required to remediate any environmental contamination, and causing the Property to be or become in compliance, with all applicable Hazardous Materials Laws, (ii) any removal or remediation of any kind and disposal of any Hazardous Materials present at, on, under or within the Property or released from the Property to the extent required by applicable Hazardous Materials Laws in effect at the time of such removal, remediation or disposal, and (iii) repair of any damage to the Property or any other property caused by any removal, remediation or disposal. (b) Upon demand by any Indemnified Party, lndemnitor shall defend any investigation, action or proceeding in connection with any claim or liability, or alleged claim or liability, that would, if determined adversely to such Indemnified Party, be covered by the foregoing indemnification provisions, such defense to be at Indemnitor's sole cost and expense and by counsel reasonably approved by such Indemnified Party, which counsel may, without limiting the rights of an Indemnified Party pursuant to the next succeeding sentence of this Section 1(b), also represent Indemnitor in such investigation, action or proceeding. If any Indemnified Party determines reasonably and in good faith that its defense by Indemnitor is being conducted in a manner which is prejudicial to its interests, such Indemnified Party may elect to conduct its own defense through counsel of its own choosing and at the expense of Indemnitor. (c) As used herein, the term "Hazardous Materials" means and includes any flammable, explosive, or radioactive materials or hazardous, toxic or dangerous wastes, substances or related materials or any other chemicals, materials or substances, exposure to which is prohibited, limited or regulated by any federal, state, county, regional or local authority or which, even if not so regulated, may or could pose a hazard to the health and safety of the occupants of the Property or of property adjacent to the Property, including, but not limited to, asbestos, PCBs, petroleum products and byproducts, substances defined or listed as "hazardous substances" or "toxic substances" or similarly identified in, pursuant to, or for purposes of, the California Solid Waste Management, Resource Recovery and Recycling Act (California Government Code §66700 et semc .), the Comprehensive Environmental Response, Compensation, and Liability Act, as amended (42 U.S.C. §9601, et seq.), the Hazardous Materials Transportation Act (49 U.S.C. § 1801, et seq.), the Resource Conservation and Recovery Act (42 U.S.C. §6901, et seq.), Section 25117 or Section 25316 of the California Health & Safety Code; and any so-called "Superfund" or "Superlien" law, or any other federal, state or local statute, law, ordinance, code, rule, regulation, order or decree regulating, relating to or imposing liability or standards of conduct concerning any hazardous, toxic or dangerous waste, substance or material; or any substances or mixture regulated under the Toxic Substance Control Act of 1976, as now or hereafter amended (15 U.S.C. §2601 et seq.); and any "toxic pollutant" under the Clean Water Act, as now or hereafter amended (33 U.S.C. §1251 et seq.); and any hazardous air pollutant under the Clean Air Act, as now or hereafter amended (42 U.S.C. §7901 et seq.). Notwithstanding the above, the term "Hazardous Materials" shall not include small amounts of 2 chemicals, cleaning agents and the like commonly employed in routine household uses in a manner typical of occupants in other similar residential properties provided they are used in compliance with applicable laws. The term "Hazardous Materials Laws" means any federal, state or local law, code, statute, ordinance, rule, regulation, rule of common law or guideline relating to Hazardous Materials now or hereafter enacted or promulgated (collectively, and including, without limitation, any such laws which require notice of the use, presence, storage, generation, disposal or release of any Hazardous Materials to be provided to any party). 2. Time Limits on Claims. Notwithstanding the foregoing provisions: (a) No claim shall be made hereunder by any Indemnified Party unless and until any one of the following events shall have occurred: (i) repayment in full of the City Loan (as evidenced by the release and reconveyance of the Deed of Trust); or (ii) vesting of title to the Property in the City or any Indemnified Party through judicial or non -judicial foreclosure or acceptance of a deed in lieu thereof. (b) Indemnitor shall not have any obligation under this Indemnity to an Indemnified Party with respect to any Costs and Liabilities that, prior to the first to occur of the events described in Section 2(a)(i) or (ii) above: (i) were actually known to the City; (ii) were liquidated in amount, or were otherwise readily determinable in amount without undue delay; and (iii) would have been lawfully and properly includable as part of the secured indebtedness under the Deed of Trust in an action for a deficiency judgment following a judicial foreclosure sale of the Property. (c) If any Indemnified Party or any affiliate of any Indemnified Party has acquired ownership of the Property through foreclosure or deed in lieu of foreclosure, the obligations of Indemnitor hereunder shall apply, without limitation, to all Costs and Liabilities that arise out of or are attributable to, whether directly or indirectly, ownership of the Property or any part thereof by any Indemnified Party or any such affiliate, or to the position of such Indemnified Party or such affiliate as an owner in the chain of title to the Property or any part thereof. (d) If the City Loan has been repaid in full, whether by voluntary payment or by foreclosure or deed in lieu of foreclosure, the obligations of Indemnitor hereunder shall continue to apply, without limitation, to all Costs and Liabilities that arise out of or are attributable to, whether directly or indirectly, any claim or allegation against an Indemnified Party relating to any act or omission of such indemnified Party in respect of the City Loan or the Property, or in connection with any exercise of such Indemnified Party's rights under any of the City Loan Documents. 3 3. Acts of Indemnified Parties. (a) Notwithstanding anything to the contrary herein, Indemnitor shall not be liable hereunder to an Indemnified Party to the extent of that portion of any Costs and Liabilities which Indemnitor establishes is attributable to an affirmative act of such Indemnified Party, its agent or any successor in interest of an Indemnified Party at the Property which causes (i) the release, discharge, deposit or presence, or alleged or suspected release, discharge, deposit or presence of a Hazardous Material at the Property, or (ii) material aggravation of a then existing Hazardous Material condition or occurrence at the Property, if and only if, in either such case referred to in (i) or (ii) above, such act was in violation of any Hazardous Materials Laws or was carried out without reasonable care under the circumstances. (b) In addition, Indemnitor shall not be liable hereunder for that portion of any Costs and Liabilities which Indemnitor establishes is attributable to the introduction and initial release, discharge or deposit, or alleged or suspected introduction, initial release, discharge or deposit of a Hazardous Material at the Property by any party, other than Indemnitor or an affiliate of Indemnitor, at any time after Indemnitor's ownership interest in the Property terminates. Notwithstanding the foregoing, but subject to Sections 2 and 3(a) above and Section 4 below, the liability of Indemnitor hereunder shall otherwise remain in full force and effect after the City or such affiliate of the City so acquires title to the Property, including without limitation with respect to any Hazardous Materials which are discovered at the Property after the date the City or such affiliate of the City acquires title but which were actually introduced to the Property prior to the date of such acquisition. 4. Indemnified Parties. This Indemnity and Indemnitor's obligations hereunder shall inure to the benefit of and be enforceable only by (a) the City, the City's directors, officers, shareholders, agents and employees, (b) any person or entities to which any the City participates, assigns or sells all or any portion of its interest in the City Loan, or which otherwise succeeds to the interest of the City under the Deed of Trust, whether by purchase or otherwise, and (c) any affiliate of the City which acquires title to the Property at a foreclosure sale or by deed in lieu of foreclosure. 5. Unsecured Obligations. The obligations of Indemnitor hereunder are unsecured. This Indemnity is not intended to be, nor shall it be, secured by the Deed of Trust or any other instrument or agreement executed by Indemnitor or any other entity or person in favor of the City or any Indem- nified Party relating to the City Loan (except for any guaranty) (such documents together with the Deed of Trust being referred to collectively herein as the "City Loan Documents"). The obligations of Indemnitor under this Indemnity are independent of any indemnification or other obligations of Indemnitor under the City Loan Documents with respect to any Hazardous Materials. The rights and remedies of the Indemnified Parties under this Indemnity shall be in addition to any other rights and remedies of such Indemnified Parties under the City Loan Documents. In no event shall any provision of this Indemnity be deemed to be waiver of or to be in lieu of any right or claim, including without limitation any right of contribution or other right of recovery, that any person entitled to enforce this Indemnity might otherwise have against Indemnitor under any Hazardous Materials Laws. Any sums payable hereunder shall not be deemed to be based upon any diminution in or other impairment of the value of any collateral held by the City to secure the City Loan. 4 6. Interest on Unpaid Amounts. Any amount claimed hereunder by an Indemnified Party not paid by Indemnitor within thirty (30) days after written demand made by such Indemnified Party and accompanied by a reasonable summary of the amounts claimed, shall bear interest at the rate of ten percent (10%) per annum or the highest interest rate permitted by law, whichever is less. 7. Limitations on Liability. The liability of Indemnitor under this Indemnity shall in no way be limited or impaired by (a) any amendment or modification of the provisions of any of the City Loan Documents; (b) except as set forth in Sections 2, 3 and 4, any participation in or sale or assignment of the City Loan Documents or any sale or transfer of all or part of the Property; (c) the release of Indemnitor or any person or entity from performance or observance of any of the agreements, covenants, terms, or conditions contained in any of the City Loan Documents by operation of law; and, in any such case, whether with or without notice to Indemnitor and with or without consideration. Except as provided in Sections 2, 3 and 4, Indemnitor's obligations hereunder shall in no way be impaired, reduced or released by reason of (i) an Indemnified Party's omission or delay in exercising any right described herein or (ii) any act or omission of an Indemnified Party in connection with any notice, demand, warning, or claim regarding violations of codes, laws or ordinances governing the Property. 8. Recourse Obligations. Notwithstanding anything to the contrary in the City Loan Documents, lndemnitor shall he personally liable on a recourse basis for the obligations of lndemnitor set forth herein. 9. Successors and Assigns. This Indemnity shall be continuing, irrevocable and binding upon each of the persons and entities comprising Indemnitor and their respective heirs, successors, and assigns. 10. Inconsistencies. In the event of any inconsistencies or conflicts between the terms of this Indemnity and the terms of the other City Loan Documents (including any exculpatory language contained therein), the terms of this Indemnity shall control. 11. Separate Causes of Action. A separate right of action hereunder shall arise each time an Indemnified Party acquires knowledge of any matter described herein. Separate and successive actions may be brought hereunder to enforce any of the provisions hereof at any time and from time to time. No action hereunder shall preclude any subsequent action. 12. Severability. If any provision of this Indemnity shall be determined to be unenforceable in any circumstances by a court of competent jurisdiction, then the balance of this Indemnity never- theless shall be enforceable, and the subject provision shall be enforceable in all other circumstan- ces. 13. Attorneys' Fees. In any action or proceeding brought by the Indemnified Parties to enforce any rights under this Indemnity, the prevailing party shall be entitled to all reasonable attorneys' fees and all costs, expenses and disbursements in connection with such action. 5 14. Notices. Any notice, demand, request or other communication which any party hereto may be required or may desire to give hereunder shall be in writing and will be effectively served upon personal delivery or, if mailed, no later than 48 hours after deposit in first class or certified United States mail, postage prepaid, sent to: City: City of National City 1243 National City Boulevard National City, CA 91950-4397 Developer: T & T Community Properties, LLC which addresses may be changed by written notice. 15. Governing Law. This Indemnity shall be governed by and construed in accordance with the laws of the State of California. 16. Counterparts. This Indemnity may be executed in any number of counterparts and, as so executed, the counterparts shall constitute one and the same agreement. The parties agree that each such counterpart is an original and shall be binding upon all the parties, even though all of the parties are not signatories to the same counterpart. 17. Exhibits and Recitals Incorporated. All exhibits referred to in this Indemnity, if any, are hereby incorporated in this Indemnity by this reference, regardless of whether or not the exhibits are actually attached to this Indemnity. The Recitals to this Indemnity are hereby incorporated in this Indemnity by this reference. 18. Signature Authority. All individuals signing this Indemnity for a party which is a corporation, limited liability company, partnership or other legal entity, or signing under a power of attorney, or as a trustee, guardian, conservator, or in any other legal capacity, covenant to the City that they have the necessary capacity and authority to act for, sign and bind the respective entity or principal on whose behalf they are signing. IN WITNESS WHEREOF, this Indemnity is executed as of the day and year above written. [SIGNATURE PAGES FOLLOW] 6 City: City of National City By: Ron Morrison, Mayor APPROVED AS TO FORM: Christensen & Spath LLP, Special Counsel to the City By: Print Name: Its: INDEMNITOR: T & T Community Properties, LLC, a California limited liability company By: Print Name: Its: CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19, 2011 AGENDA ITEM NO. 18 'EM TITLE: !Resolution of the City of National City approving the redemption of $204,361.00 in CDBG funds held as State and Local Government Securities purchased under a Defeasance Escrow for the U.S. Department of HUD Section 108 Loan used to fund the construction of Fire Station 34, also approving the reallocation of $48,500.50 in CDBG funds from the remaining balance of a Fiscal Year 2010-11 allocation to the Christmas in July Rehabilitation Program to cover $252,861.50 of interest due on the Section 108 loan in Fiscal Year 2011-12, and furthermore approving an interim allocation from General Fund Contingency Reserves of $77,930.25 to complete the interest payment of $126,430.75 due on July 25, 2011 to be repaid from the proceeds of said Securities. PREPARED BY: Carlos Aguirre; DEPARTMENT: Administrative Services APPROVED BY _- PHONE: (619) 336-4391 EXPLANATION: Please refer to the explanation immediately attached. FINANCIAL STATEMENT: APPROVED: finance ACCOUNT NO. APPROVED: MIS The interest due in the amount of $252,861.50 in FY2011-12 on the Section 108 Loan will be paid with $204,361.00 of City -held Treasury Securities (account 506-0131) and a reallocation of $48,500.50 from the Christmas in July Housing Rehabilitation Program (account 301-409-000-650-0922) ENVIRONMENTAL REVIEW: ;The repayment of the Section 108 loan is exempt from NEPA Environmental Review. ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Approve the Resolution BOARD / COMMISSION RECOMMENDATION: There is no board or commission recommendation required. ATTACHMENTS: 1. 'Explanation- Partial Defeasance Escrow Interest Payments 2. Partial Defeasance Escrow Memorandum dated June 4, 2010 RESOLUTION NO. 2011- RESOLUTION OF THE CITY OF NATIONAL CITY APPROVING THE REDEMPTION OF $204,361 IN CDBG FUNDS HELD AS STATE AND LOCAL GOVERNMENT SECURITIES FOR THE U.S. DEPARTMENT OF HUD SECTION 108 LOAN USED TO FUND THE CONSTRUCTION OF FIRE STATION 34, ALSO APPROVING THE REALLOCATION OF $48,500.00 IN CDBG FUNDS FROM THE REMAINING BALANCE OF A FISCAL YEAR 2010/2011 ALLOCATION TO THE CHRISTMAS IN JULY REHABILITATION PROGRAM TO COVER $252,861.50 OF INTEREST DUE ON THE SECTION 108 LOAN IN FISCAL YEAR 2011/2012, AND FURTHERMORE APPROVING AN INTERIM ALLOCATION FROM GENERAL FUND CONTINGENCY RESERVES OF $77,930.25 TO COMPLETE THE INTEREST PAYMENT OF $126,430.75 DUE ON JULY 25, 2011 TO BE REPAID FROM THE PROCEEDS OF SAID SECURITIES. WHEREAS, in 2003 the City of National City secured a loan of $6.9 million dollars from the U.S. Department of Housing and Urban Development ("HUD") to construct a fire station facility on the northwest corner of 16th Street and D Ave in National City ("Fire Station 34"); and WHEREAS, the HUD Section 108 guaranteed loan program ("HUD 108 Loan") allows the City to pledge Community Development Block Grant ("CDBG") entitlement funds for repayment of the loan; and WHEREAS, the City has pledged CDBG entitlement to pay for HUD 108 Loan payments as an eligible use of funds; and WHEREAS, the City set up a Partial Defeasance Escrow with the HUD 108 Loan Trustee to be held in order to avoid losing control of CDBG Program Income funds; and WHEREAS, HUD 108 Loan Agreement noted that any funds used to defease a HUD 108 Loan are to be held as State and Local Government Securities ("SLGS") instead of cash; and WHEREAS, the City purchased $1,094,028.00 in SLGS and placed said funds in a Partial Defeasance Escrow for HUD 108 Loan repayment; and WHEREAS, the City is required to make interest payments of $252,861.50 in Fiscal Year 2011/12; and WHEREAS, the City can redeem as cash and reappropriate $204,361.00 of SLGS held in the Partial Defeasance Escrow for prepayment of the HUD 108 Loan Principal on August 13, 2013 calculated at $210,000 with accrued interest to pay instead the interest due in Fiscal Year 2011/12; and WHEREAS, the City can reallocate $48,500.50 in unexpended CDBG funds that were not used by a CDBG activity known as the Christmas in July Housing Rehabilitation Program funded for Fiscal Year 2009/10 and 2010/11 to cover the remainder of HUD 108 Loan payments due in Fiscal Year 2011/12. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City approves the redemption of $204,361.00 in CDBG funds held as State and Local Government Securities purchased under a Partial Defeasance Escrow for the U.S. Department of HUD Section 108 Loan used to fund the construction of Fire Station 34. BE IT FURTHER RESOLVED, that the City Council of the City of National City approves said redemption to partially cover the interest due on the HUD 108 loan in Fiscal Year 2011/12 instead of using the redeemed funds to prepay the HUD 108 loan principal by $210,000. BE IT FURTHER RESOLVED that the City Council of the City of National City approves the reallocation of $48,500.50 in CDBG funds from the remaining balance of a Fiscal Year 2010-11 allocation to the Christmas in July Rehabilitation Program to partially cover $252,861.50 of interest due on the Section 108 loan in Fiscal Year 2011/2012. BE IT FURTHER RESOLVED that the City Council of the City of National City authorizes an interim allocation from General Fund Contingency Reserves of $77,930.25 to complete the interest payment of $126,430.75 due on July 25, 2011 to be repaid from the proceeds of said Securities. PASSED and ADOPTED this 19th day of July, 2011. Ron Morrison, Mayor ATTEST: APPROVED AS TO FORM: Michael R. Dalla, City Clerk Claudia G. Silva City Attorney Attachment No. 1 Explanation- HUD Section 108 Loan Partial Defeasance Interest Payments for FY2011-12 In 2003, the City of National City secured a loan of $6.9 million dollars from the U.S. Department of Housing and Urban Development ("HUD") to construct a fire station facility on the northwest corner of 16'1' Street and D Ave in National City ("Fire Station 34"). The HUD Section 108 guaranteed loan program ("HUD 108 Loan") allows the City to pledge Community Development Block Grant ("CDBG") entitlement funds for repayment of the loan. CDBG funds are appropriated to the City by HUD on an annual basis. Historically, the CDBG entitlement funds have been pledged to pay for Section 108 loan payments since it is an eligible use of funds. HUD 108 Loan payments are also guaranteed through the entitlement funds to the City in the case of default. From the repayments of CDBG loans to low-income homebuyers and homeowners over several years, the City accumulated program income of $2,070,000 from which $1,750,000.00 was allocated to prepay the HUD Section 108 loan in Fiscal Year 2008-2009. When the money was allocated by the City, it was intended to have the funds applied directly to regularly scheduled payments of approximately $550,000 a year, in principal and interest until the funds are depleted. Essentially, this would create a "payment" holiday for the Section 108 loan and allow entitlement funds to be used for other CDBG eligible activities. However, the }IUD 108 Loan has a 10-year term during which the Section 108 loan cannot be prepaid so that payment plan could not proceed as intended. The term ends on August 1, 2013. However, because the CDBG program has expenditure rules that preclude program income funds from remaining in City custody, the action had to move forward nonetheless. The City set up a partial defeasance escrow with the HUD 108 loan trustee in order to avoid losing the funds which otherwise would have reverted back to HUD. A loan defeasance'is a process in which funds arc held in escrow by an agent in order to guarantee payments at future date, including the guarantee of interest payments and other accruals associated with the bonds that funded the loan. The instructions for a partial defeasance were executed by the City's financial consultant, Public Financial Management, Inc. The HUD Section 108 loan agreement with HUD noted that any funds used to defease the HUD Section 108 loan would have to be held as State and Local Government Securities ("SLGS") instead of cash. The SLGS were purchased for the City in the total amount of $1,094,028 of which $889,667.00 were to be applied for principal and partial interest payments due on 8/1/2011 through 8/1/2013 as illustrated under Item No. 7 of Attachment No.2 to this staff report ("Memorandum"). As noted under Item No. 6 of the Memorandum, the partial defeasance provided that the principal and part of the accrued interest be paid. A defeasance could not be structured to pay the full principal and interest of bonds. The City would have to encumber CDBG entitlement funds or other funds to pay $632,153.75 of interest in five equal installments of $126,430.75 in FY2012, 2013, 2014. As noted in Item No. 8 of Attachment No. 2 ("Memorandum"), $204,361.00 of SLGS (securities) were reserved in the partial defeasance escrow to pay down the outstanding principal from Fiscal Year 2014-15 through Fiscal Year 2022-23 by $210,000.00 that includes interest accrued on the Securities purchased to cover the full principal reduction. The Resolution requests that the SLGS (securities) allocated under Item No.8 of the Memorandum are to be redeemed at fair value to make part of the interest payments due by the City in FY2011-12. This Resolution would approve the allocation of funds necessary to make the interest payments due under Item No. 9 of the Memorandum for Fiscal Year 2011-2012. Instead of allocating CDBG entitlement funds to make the interest payments due by the City to the Section 108 loan in FY201 1-2012, the City will use funds set -aside under Item No. 8 (currently valued at $204,361.00) of the Memorandum and $48,500.50 in unspent funds from the Christmas in July Housing Rehabilitation Program to make the interest payments due from the City in FY2011.The City will ask the Escrow Agent to void the escrow instructions under Item No.8, 9,10 of the Memorandum at the time the bonds are redeemed and that the original loan amortization schedule for the loan be reinstated effective August 1, 2014. In FY2013 and FY2014, the City will need to allocate $252,861.50 each year from the annual CDBG entitlement award from HUD or from another source of City funds. In the interim, in order to expedite the payment due to the loan trustee on July 25, 2011, the City will have to commit $77,930.25 from the General Fund Contingency Reserve. The Reserve funds will be replenished immediately after receiving the cash proceeds from the redeemed SLGS (securities). Attachment No. 2 633 West Fifth Street Suite 6700 Los Angeles, CA 90071 213 489-4075 213 489-4085 fax www.pfm.com INIEMMMI The PFM Group Memorandum June 11, 2010 To: Jeanette Ladrido, Director of Finance, City of National City From: Julio Morales, Senior Managing Consultant, Public Financial Management, Inc. Re: HUD 108 Loan, Series 2003 A — Defeasance Per your request, Public Financial Management, Inc. ("PFM") has provided a summary of the loan defeasance process for the HUD 108 Loan, Series 2003A ("HUD 108 Loan or the Loan"). The City intends to apply unspent CDBG proceeds toward the payment of debt service on the HUD 108 Loan. The City has approximately $1,642,549.92 in monies available, which will be applied as follows: 1. The City will reprogram $542,269.75 to make the next two scheduled debt service payments in full on August 1, 2010 and February 1, 2011, respectively. • 8/1/2010 - $396,176.25 • 2/1/2011 - $146,093.50 2. After setting aside monies to make the next two scheduled debt service payments, the City will have $1,100,280.17 in monies available. 3. Bank of New York Mellon (the "Trustee") will establish a separate account to deposit such monies. The City will wire $1,100,280.17 to the following account: Bank of New York Mellon ABA 021000018 FFC 441858 Acct Name: HUD 108 National City Defeasance Escrow Attn: John Hoffman (412) 236-1439 4. The Trustee will pay $6,250.00 to PFM for financial and investment advisory services related to this transaction, leaving $1,094,030.17 available to defease the HUD 108 Loan. 5. The Trustee will establish a new account and deposit $1,094,030.17, in the following account: AMIN 11 111110101 Attachment No. 2 ABA 021000018 Account# 8900101474 Account Name BNY Mellon 441858 City of National City HUD 108 Loan Defeasance June 11, 2010 - Page 2 6. The City will direct PFM to purchase $1,094,028.00 in State and Local Government Securities ("SLGS"), plus $2,17 in cash. Maturity Type of Date SGLS Par Amount Coupon 6/11/210 Cash 2.17 8/1/2011 Note 271,809.00 0.34% 2/1/2012 Note 10,910.00 0.53% 8/1/2012 Note 290,939.00 0.74% 2/1/2013 Note 5,491.00 0.97% 8/1/2013 Note 514,879.00 1.19% $1,094,030.17 The Trustee will segregate the SGLS into two sub -portfolios. 7. Sub -portfolio 1: The trustee will set aside $889,667.00 in SGLS plus $0.59 in cash, as summarized in the chart below: Maturity Type of Date SGLS Par Amount Coupon 6/11/210 rash 8/1/2011 Note 2/1/2012 Note 8/1/2012 Note 2/1/2013 Note 8/1/2013 Note 0.59 271,809.00 10, 910.00 290, 939.00 5,491.00 310, 518.00 $ 889,667.00 0.34% 0.53% 0.74% 0.97% 1.19% This amount will be sufficient to make $907,172.75 in scheduled debt service payments required to "defease" the 2011, 2012, and 2103 principal maturities and related interest as summarized listed below: 8/1/2011 2/1/2012 8/1/2012 2/1/2013 8/1/2013 Principal Interest Principal Interest Principal Interest 7,365.75 6,524.00 260,000,00 4.44% 5,772.00 7,365.75 6,524.00 7,365.75 280;000.00 4.66% 6,524.00 7,365.75 305,000.00 4.83°A 7,365.75 TOTAL 279,661.75 13,889.75 293,889.75 7,365.75 312,365.75 $907,172.75 Attachment No. 2 City of National City HUD 108 Loan Defeasance June 11, 2010- Page 3 8. Sub -portfolio 2: The remaining balance $204,361.00 (8/1/2013 SGLS maturity) plus a $1.58 cash deposit, will be used to redeem bonds on August 1, 2013. Maturity Type of Date SGLS Par Amount Coupon 6/1 ,. :6 ash 1/0/1900 Note 1 204, 361.00 1.19% $ 204,362.58 9. The excess cash remaining in the portfolio will have a balance of $211,999.32 when it matures on August 1, 2013, which will be used to redeem $210,000 of the HUD 108 Loan outstanding on a pro-rata basis, as summarized below: Outstanding Principal Amount After Allocation Redeemed Redemption 8/1/2014 8/ 1 /2015 8/1/2016 8/1/2017 8/1/2018 8/ 1 /2019 8/ 1 /2020 8/ 1 /2021 8/ 1 /2022 8/ 1 /2023 $ 325,000 350,000 380,000 410,000 440,000 475,000 510,000 545,000 590,000 635,000 6.97% 7.51 % 8.15% 8.80% 9.44% 10.19% 10.94% 11.70% 12.66% 13.63% $ 15,000 15,000 15,000 20,000 20,000 20,000 25,000 25,000 25,000 30,000 $ 310,000 335,000 365,000 390,000 420,000 455,000 485,000 520,000 565,000 605,000 $ 4,660,000 100% $ 210,000 $ 4,450,000 10. The debt service on the HUD 108 Loan is after the redemption of $210,000 in principal on August 1, 2013 is summarized illustrated below. AMEN /1111111111111111 MOMMt Attachment No. 2 Debt Date Principal Coupon Interest Service City of National City HUD 108 Loan Defeasance June 11, 2010 - Page 4 2/1/2014 8/1/2014 2/ 1 /2015 8/ 1 /2015 2/1/2016 8/1/2016 2/1/2017 8/ 1 /2017 2/1/2018 8/ 1 /2018 2/ 1 /2019 8/ 1 /2019 2/1/2020 8/1/2020 2/1/2021 8/ 1 /2021 2/ 1 /2022 8/ 1 /2022 2/1/2023 8/ 1 /2023 310,000 4.93% 335,000 5.07% 365.000 5. 19 % 390,000 5.29% 420,000 5.38% 455,000 5.46% 485.000 5.53% 520,000 5.59% 565,000 5.64% 605,000 5.69% 120,730 120,730 113,089 113,089 104.596 104,596 95,125 95,125 84,809 84,809 73,511 73,511 61,090 61,090 47,679 47,679 33.145 33,145 17,212 17,212 120,730 430,730 113,089 448,089 104,596 469,596 95,125 485,125 84,809 504,809 73,511 528,511 61,090 546,090 47,679 567,679 33,145 598,145 17,212 622,212 $ 4,450,000 $ 1,501,971 $ 5,951,971 11. Upon redemption of $210,000 in principal on August 1, 2013, the defeasance portfolio should have $2,000.90 in excess monies available to pay fees or remit back to the City. The City will make the following interest payments on the portion of the HUD 108 Loan that remains outstanding from 8/1/2011 to 8/1/2013: Interest 8/1/2011 126, 430.75 2/1/2012 126,430.75 8/ 1 /2012 126, 430.75 2/1/2013 126,430.75 8/1/2013 126, 430.75 $632,153.75 7 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19, 2011'', AGENDA ITEM NO. 19 EM TITLE: Resolution of the City Council of the City of National City authorizing the 30-day review and public comment of the National City Police Department's grant application in the amount of $40,410.00 from the 2011 Edward Byrne Memorial Justice Assistance Grant (JAG) Program to purchase outreach supplies, still cameras, color guard equipment and software, to establish a computer tablet pilot program, to retrofit interview rooms, and to soundproof the indoor shooting range. PREPARED BY: Parris Bull, Police Sergeant DEPARTMENT: Police PHONE: (619) 336-4524 APPROVED BY: p/2/0 EXPLANATION: The U.S. Department of Justice; Office of Justice Programs; Bureau of Justice Assistance announced that the National City Police Department is eligible for an award of $40,410.00 or 100% new funding from the 2011 Edward Byrne Memorial Justice Assistance Grant (JAG) Program. The National City Police Department proposes to use the funds toward the purchase of police outreach supplies, still cameras, equipment/uniforms for the color guard program and software, to establish a computer tablet pilot program, to retrofit the interview rooms in the Investigations Division, and to soundproof the police department's indoor shooting range. The City is required to make the grant application available for review by the City Council and assure that the application is made public and an opportunity to comment is provided to citizens for not fewer than 30 days. The City is not required to allocate any . - ont costs or matching funds in order to receive the funding. The 2011 Edward Byrne Memorial tice Assistance Grant (JAG) Program is a direct grant allocation that requires agencies to complete an on-line application and narrative justifying the use of the funds. FINANCIAL STATEMENT: ACCOUNT NO. 290 — 411 — 628 APPROVED: APPROVED: The 2011 Edward Byrne Memorial Justice Assistance Grant Program does not require a math; therefore, there isn't an impact to the general fund. ENVIRONMENTAL REVIEW: Not Applicable ORDINANCE: INTRODUCTION: FINAL ADOPTION: nance MIS STAFF RECOMMENDATION: Staff recommends the City Council begin the 30-day review and public comment period, and then authorize the acquisition of the following utilizing $40,410.00 in grant funds from the 2011 Edward Byrne Memorial JAG Program: outreach supplies; still cameras; color guard equipment; software; a computer tablet pilot program; retrofit the interview rooms; soundproof the shooting range. BOARD / COMMISSION RECOMMENDATION: ACHMENTS: None RESOLUTION NO. 2011 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE 30-DAY REVIEW AND PUBLIC COMMENT OF THE NATIONAL CITY POLICE DEPARTMENT'S GRANT APPLICATION IN THE AMOUNT OF $40,410 FROM THE 2011 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT (JAG) PROGRAM TO PURCHASE OUTREACH SUPPLIES, STILL CAMERAS, COLOR GUARD EQUIPMENT AND SOFTWARE, TO ESTABLISH A COMPUTER TABLET PILOT PROGRAM, TO RETROFIT INTERVIEW ROOMS, AND TO SOUNDPROOF THE INDOOR SHOOTING RANGE WHEREAS, the U.S. Department of Justice announced that the National City Police Department is eligible for an award of $40,410 or 100% new funding from the 2011 Edward Byrne Memorial Justice Assistance Grant (JAG) Program to purchase outreach supplies, still cameras, and color guard equipment and software; establish a computer tablet pilot program; retrofit interview rooms; and to soundproof the indoor shooting range; and WHEREAS, the City is required to make the grant application available for review and public comment for no less than 30 days; and WHEREAS, the 2011 Edward Byrne Memorial Justice Assistance Grant (JAG) Program is a direct grant allocation program that entitles the Police Department to $40,410 upon approval of the grant application from the U.S. Department of Justice, and does not require the City to allocate any up -front costs or matching funds. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the 30-day review and public comment of the National City Police Department's 2011 Edward Byrne Memorial Justice Assistance Grant (JAG) Program application, and authorizes acceptance of the grant award. BE IT RESOLVED that the City Council of the City of National City hereby authorizes, upon the expiration of the 30-day review and public comment period, the expenditure of said grant funds to purchase outreach supplies, still cameras, and color guard equipment and software; establish a computer tablet pilot program; retrofit interview rooms; and to soundproof the indoor shooting range. PASSED and ADOPTED this 19th day of July, 2011. Ron Morrison, Mayor ATTEST: APPROVED AS TO FORM: Michael R. Della, City Clerk Claudia G. Silva City Attorney CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19, 2011 AGENDA ITEM NO. 20 EM TITLE: Resolution of the City Council of the City of National City authorizing the Mayor to execute an Agreement with the South Bay Community Services (SBCS) in the not -to -exceed amount of $95,000.00 for the purpose of providing services and support to the homeless population in the City of National City via a federal grant (No. 2010-DD-BX-0443) from the U.S. Department of Justice. PREPARED BY: Parris A. Bull, Police Sergeant DEPARTMENT: Police PHONE: (619) 336-4524 APPROVED BY: EXPLANATION: On September 8, 2010, the United States Department of Justice; Office of Justice Programs; Bureau of Justice Assistance awarded the City of National City a grant [Homeless Outreach Program and Enforcement (HOPE) Project] in the amount of $95,000.00 as part of the Congressionally Selected Awards Program (FY 2010). The purpose of the grant is to address homelessness in the City of National City. The original project period was from 07/01/2010 to 06/30/2011. The City of National City and South Bay Community Services formed a partnership to provide outreach, resources and case management to the City's homeless population. South Bay Community Services was contracted to address long-term housing issues, and to bridge the gap between homelessness and long-term care. The grant will also provide funding for the clean-up of encampments, the removal of debris, and other related homeless outreach, prevention and enforcement efforts. On May 26, 2011, the U.S. Department ^f justice; Office of Justice Programs granted the City an extension on the grant; therefore, the NEW ject period is from 07/01/2011 to 06/30/2012. FINANCIAL STATEMENT: ACCOUNT NO. 290-411-622 The HOPE Project grant does not require matching funds or in -kind cor1tributions from the City. Therefore, the City's General Fund will not be impacted by the grant. ENVIRONMENTAL REVIEW: ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPRO APPRO D: Finance MIS STAFF RECOMMENDATION: Staff recommends that the City Council authorize the execution of the Agreement with South Bay Community Services and the implementation of the services as provided for by the HOPE project/grant..' BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: Agreement between the City of National City and South Bay Community Services Exhibit A — South Bay Community Services' ten -page document regarding the Homeless Outreach Program and Enforcement Project RESOLUTION NO. 2011 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH THE SOUTH BAY COMMUNITY SERVICES IN THE NOT TO EXCEED AMOUNT OF $95,000 FOR THE PURPOSE OF PROVIDING SERVICES AND SUPPORT TO THE HOMELESS POPULATION IN NATIONAL CITY THROUGH A FEDERAL GRANT FROM THE U.S. DEPARTMENT OF JUSTICE WHEREAS, on September 8, 2010, the U.S. Department of Justice, Office of Justice Programs, Bureau of Justice Assistance awarded the City of National City a grant for the Homeless Outreach Program and Enforcement (HOPE) Project in the amount of $95,000; and WHEREAS, the term for that project was from July 1, 2010 through June 30, 2011; and WHEREAS, the City and South Bay Community Services formed a partnership to provide outreach, resources, and case management to the City's homeless population, including addressing long-term housing issues, and to bridge the gap between homelessness and long-term care, funding for the clean-up of encampments, removal of debris, prevention and enforcement efforts; and WHEREAS, on May 26, 2011, the U.S. Department of Justice, Office of Justice Programs granted the City a one-year extension of the HOPE grant in the amount of $95,000, with a project ending date of June 30, 2012; and WHEREAS, the City of National City and South Bay Community Services desire to enter into an agreement in the not to exceed amount of $95,000, using funds provided by the HOPE grant, to provide services and support to the homeless population in National City from July 1, 2011 through June 30, 2012. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute an Agreement with South Bay Community Services in the not to exceed amount of $95,000, using funds provided by the HOPE grant, to provide services and support to the homeless population in National City from July 1, 2011 through June 30, 2012. PASSED and ADOPTED this 19th day of July, 2011. Ron Morrison, Mayor ATTEST: APPROVED AS TO FORM: Michael R. Della, City Clerk Claudia G. Silva City Attorney AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND South Bay Community Services THIS AGREEMENT is entered into this 20th day of July, 2011, by and between the CITY OF NATIONAL CITY, a municipal corporation (the "CITY"), and South Bay Community Services, a California nonprofit public benefit corporation (hereinafter "SBCS" or a "CONTRACTOR"). RECITALS WHEREAS, the CITY desires to employ CONTRACTOR to provide program services for the Homeless Outreach Program and Enforcement ("HOPE"). WHEREAS, the CITY has determined that the CONTRACTOR is a non-profit organization and is qualified by experience and ability to perform the services desired by the CITY, and the CONTRACTOR is willing to perform such services. FOLLOWS: NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS 1. ENGAGEMENT OF CONTRACTOR. The CITY hereby agrees to engage the CONTRACTOR and the CONTRACTOR hereby agrees to perform the services hereinafter set forth in accordance with all terms and conditions contained herein. The CONTRACTOR represents that all services required hereunder will be performed directly by the CONTRACTOR or under direct supervision of the CONTRACTOR. 2. SCOPE OF SERVICES. The CONTRACTOR will perform services as set forth in the attached Exhibit "A". The CONTRACTOR shall be responsible for all research and reviews related to the work and shall not rely on personnel of the CITY for such services, except as authorized in advance by the CITY. The CONTRACTOR shall appear at meetings cited in Exhibit "A "to keep staff and City Council advised of the progress on the project. The CITY may unilaterally, or upon request from the CONTRACTOR, from time to time reduce or increase the Scope of Services to be performed by the CONTRACTOR under this Agreement. Prior to doing so, the CITY and the CONTRACTOR agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction or increase in the compensation associated with said change in services, not to exceed $95,000.00 total compensation for the period of service. 3. PROJECT COORDINATION AND SUPERVISION. Armando Vergara "or their designee" hereby is designated as the HOPE Coordinator for the CITY and will monitor the progress and execution of this Agreement. The CONTRACTOR shall assign a single HOPE Supervisor to provide supervision and have overall responsibility for the progress and execution of this Agreement for the CONTRACTOR by the CONTRACTOR representative. Jose Mireles "or their designee" thereby is designated as the HOPE Supervisor for the CONTRACTOR. 4. COMPENSATION AND PAYMENT. The compensation for the CONTRACTOR shall be based on monthly billings covering actual work performed. Billings shall include labor classifications, respective rates, hours worked and also materials, if any. The total cost for all work described in Exhibit "B"shall not exceed the schedule given in Exhibit "B". Monthly invoices will be processed for payment and remitted within thirty (30) days from receipt of invoice, provided that work is accomplished consistent with Exhibit "A", as determined by the CITY. The CONTRACTOR shall maintain all books, documents, papers, ernployee time sheets, accounting records, and other evidence pertaining to costs incurred and shall make such materials available at its office at all reasonable times during the term of this Agreement and for three (3) years from the date of final payment under this Agreement, for inspection by the CITY and for furnishing of copies to the CITY, if requested. 5. ACCEPTABILITY OF WORK. The City shall reasonably any and all questions which may arise as to the quality or acceptability of the services performed and the manner of performance, the acceptable completion of this Agreement and the amount of compensation due. In the event the CONTRACTOR and the City cannot agree to the quality or acceptability of the work, the manner of performance and/or the compensation payable to the CONTRACTOR in this Agreement, the City or the CONTRACTOR shall give to the other written notice. Within ten (10) business days, the CONTRACTOR and the City shall each prepare a report which supports their position and file the same with the other party. The City shall, with reasonable diligence and in good faith determine the quality or acceptability of the work, the manner of performance and/or the compensation payable to the CONTRACTOR. 6. LENGTH OF AGREEMENT. Completion dates or time durations for the Project is from the date of this Agreement through June 30, 2012, or as determined by the federal government program, OJP. 7. DISPOSITION AND OWNERSHIP OF DOCUMENTS. The memoranda, reports, supplies, equipment, and documents prepared by the CONTRACTOR for this Project, whether paper or electronic, shall become the property of the CITY for use with respectto this Project, and shall be turned over to the CITY upon completion of the Project, or any phase thereof, as contemplated by this Agreement. Contemporaneously with the transfer of documents, the CONTRACTOR hereby assigns to the CITY and CONTRACTOR thereby expressly waives and disclaims, any copyright in, and the right to reproduce, all written material, drawings, plans, specifications or other work prepared under this agreement, except upon the CITY's prior authorization regarding reproduction, which authorization shall not be unreasonably withheld. The CONTRACTOR shall, upon request of the CITY, execute any further document(s) necessary to further effectuate this waiver and disclaimer. The CONTRACTOR agrees that the CITY may use, reuse, alter, reproduce, modify, assign, transfer, or in any other way, medium or method utilize the CONTRACTOR's written work product for the CITY's purposes, and the CONTRACTOR expressly waives and disclaims any residual rights granted to it by Civil Code Sections 980 through 989 relating to intellectual property and artistic works. 2 Any modification or reuse by the CITY of documents prepared by the CONTRACTOR shall relieve the CONTRACTOR from liability under Section 15 but only with respect to the effect of the modification or reuse by the CITY, or for any liability to the CITY should the documents be used by the CITY for some project other than what was expressly agreed upon within the Scope of this project, unless otherwise mutually agreed. 8. INDEPENDENT CONTRACTOR. Both parties hereto in the performance of this Agreement will be acting in an independent capacity and not as agents, employees, partners or joint ventures with one another. Neither the CONTRACTOR nor the CONTRACTOR'S employees are employees of the CITY and are not entitled to any of the rights, benefits, or privileges of the CITY's employees, including but not limited to retirement, medical, unemployment, or workers' compensation insurance. This Agreement contemplates the personal services of the CONTRACTOR and the CONTRACTOR's employees, and it is recognized by the parties that a substantial inducement to the CITY for entering into this Agreement was, and is, the professional reputation and competence of the CONTRACTOR and its employees. Neither this Agreement nor any interest herein may be assigned by the CONTRACTOR without the prior written consent of the CITY. Nothing herein contained is intended to prevent the CONTRACTOR from employing or hiring as many employees, or subcontractors, as the CONTRACTOR may deem necessary for the proper and efficient performance of this Agreement. All agreements by CONTRACTOR with its subcontractor(s) shall require the subcontractor to adhere to the applicable terms of this Agreement. 9. CONTROL. Neither the CITY nor its officers, agents or employees shall have any control over the conduct of the CONTRACTOR or any of the CONTRACTOR's employees except as herein set forth, and the CONTRACTOR expressly agrees not to represent that the CONTRACTOR or the CONTRACTOR's agents, servants, or employees are in any manner agents, servants or employees of the CITY, it being understood that the CONTRACTOR, its agents, servants, and employees are as to the CITY wholly independent contractors, and that the CONTRACTOR's obligations to the CITY are solely such as are prescribed by this Agreement. 10. COMPLIANCE WITH APPLICABLE LAW. The CONTRACTOR, in the performance of the services to be provided herein, shall comply with all applicable State and Federal statutes and regulations, and all applicable ordinances, rules and regulations of the City of National City, whether now in force or subsequently enacted. The CONTRACTOR, and each of its subcontractors, shall to the extent required under law obtain and maintain a current City of National City business license prior to and during performance of any work pursuant to this Agreement. 11. LICENSES, PERMITS, ETC. The CONTRACTOR represents and covenants that it has all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession. The CONTRACTOR represents and covenants that the CONTRACTOR shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement, any license, permit, or approval which is legally required for the CONTRACTOR to practice its profession. 3 12. STANDARD OF CARE. A. The CONTRACTOR, in performing any services under this Agreement, shall perform in a mariner consistent with that level of care and skill ordinarily exercised by members of the CONTRACTOR'S trade or profession currently practicing under similar conditions and in similar locations. The CONTRACTOR shall take all special precautions necessary to protect the CONTRACTOR's employees and members of the public from risk of harm arising out of the nature of the work and/or the conditions of the work site. B. Unless disclosed in writing prior to the date of this agreement, the CONTRACTOR warrants to the CITY that it is not now, nor has it for the five (5) years preceding, been debarred by a governmental agency or involved in debarment, arbitration or litigation proceedings concerning the CONTRACTOR's professional performance or the furnishing of materiais or services relating thereto. C. The CONTRACTOR is responsible for identifying in a commercially reasonable manner any unique products, treatments, processes or materials whose availability is critical to the success of the project the CONTRACTOR has been retained to perform, within the time requirements of the CITY, or, when no time is specified, then within a commercially reasonable time. Accordingly, unless the CONTRACTOR has notified the CITY otherwise, the CONTRACTOR warrants that all products, materials, processes or treatments identified in the project documents prepared for the CITY are reasonably commercially available. Any failure by the CONTRACTOR to use due diligence under this sub -paragraph will render the CONTRACTOR liable to the CITY for any increased costs that result from the CITY's later inability to obtain the specified items or any reasonable substitute within a price range that allows for project completion in the time frame specified or, when not specified, then within a commercially reasonable time. 13. NON-DISCRIMINATION PROVISIONS. The CONTRACTOR shall not discriminate against any employee or applicant for employment because of age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. The CONTRACTOR will take positive action to insure that applicants are employed without regard to their age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. Such action shall include but not be limited to the following: employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The CONTRACTOR agrees to post in conspicuous places available to employees and applicants for employment any notices provided by the CITY setting forth the provisions of this non-discrimination clause. 14. CONFIDENTIAL INFORMATION. The CITY may from time to time communicate to the CONTRACTOR certain confidential information to enable the CONTRACTOR to effectively perform the services to be provided herein. The CONTRACTOR shall treat all such information as confidential and shall not disclose any part thereof without the prior written consent of the CITY. The CONTRACTOR shall limit the use and circulation of such information, even within its own organization, to the extent necessary to perform the services to be provided herein. The foregoing obligation of this Section 14, however, shall not apply to any part of the information that (i) has been disclosed in publicly available sources of information; (ii) is, through no fault of the CONTRACTOR, hereafter disclosed in publicly available sources of information; (iii) is already in the possession of the CONTRACTOR without any obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to the CONTRACTOR by a third party, but only to the extent that the use or disclosure thereof has been or is rightfully authorized by that third party. 4 The CONTRACTOR shall not disclose any reports, recommendations, conclusions or other results of the services or the existence of the subject matter of this Agreement (except as required to perform the services set forth in Exhibit "A") without the prior written consent of the CITY. In its performance hereunder, the CONTRACTOR shall comply with all legal obligations it may now or hereafter have respecting the information or other property of any other person, firm or corporation. CONTRACTOR shall be liable to CITY for any damages caused by breach of this condition, pursuant to the provisions of Section 15. 15. INDEMNIFICATION AND HOLD HARMLESS. The CONTRACTOR agrees to defend, indemnify, and hold harmless the City of National City, its officers and employees, against and from any and all liability, loss, damages to property, injuries to, or death of any person or persons, and all claims, demands, suits, actions, proceedings, reasonable attorneys' fees, and defense costs, of any kind or nature, including workers' compensation claims, of or by anyone whomsoever, resulting from or arising out of the CONTRACTOR's negligent performance of this Agreement. 16. WORKERS' COMPENSATION. The CONTRACTOR shall comply with all of the provisions of the Workers' Compensation Insurance and Safety Acts of the State of California, the applicable provisions of Division 4 and 5 of the California Government Code and all amendments thereto; and all similar state or Federal acts or laws applicable; and shall indemnify, and hold harmless the CITY and its officers, and employees from and against all claims, demands, payments, suits, actions, proceedings and judgments of every nature and description, including reasonable attorney's fees and defense costs presented, brought or recovered against the CITY or its officers, employees, or volunteers, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by the CONTRACTOR under this Agreement. 17. INSURANCE. The CONTRACTOR, at its sole cost and expense, shall purchase and maintain, and shall require its subcontractors, when applicable, to purchase and maintain throughout the term of this agreement, the following insurance policies: T A. If checked, Professional Liability Insurance (errors and omissions) with minimum limits of $1,000,000 per occurrence. B. Automobile insurance covering all bodily injury and property damage incurred during the performance of this Agreement, with a minimum coverage of $1,000,000 combined single limit per accident. Such automobile insurance shall include owned, non -owned, and hired vehicles ("any auto"). C. Commercial general liability insurance, with minimum limits of $1,000,000 per occurrence/$2,000,000 aggregate, covering all bodily injury and property damage arising out of its operations under this Agreement. D. Workers' compensation insurance in an amount sufficient to meet statutory requirements covering all of CONTRACTOR'S employees and employers' liability insurance with limits of at least $1,000,000 per accident. In addition, the policy shall be endorsed with a waiver of subrogation in favor of the City. Said endorsement shall be provided prior to commencement of work under this Agreement. E. The aforesaid policies shall constitute primary insurance as to the CITY, its officers, employees, and volunteers, so that any other policies held by the CITY shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior written notice to the CITY of cancellation or material change. 5 F. Said policies, except for the professional liability and workers' compensation policies, shall name the CITY and its officers, agents and employees as additional insureds, and separate additional insured endorsements shall be provided. G. If required insurance coverage is provided on a "claims made" rather than "occurrence" form, the CONTRACTOR shall maintain such insurance coverage for three years after expiration of the term (and any extensions) of this Agreement. In addition, the "retro" date must be on or before the date of this Agreement. H. Any aggregate insurance limits must apply solely to this Agreement. Insurance shall be written with only California admitted companies which hold a current policy holder's alphabetic and financial size category rating of not less than A VIII according to the current Best's Key Rating Guide, or a company equal financial stability that is approved by the City's Risk Manager. In the event coverage is provided by non -admitted "surplus lines" carriers, they must be included on the most recent California List of Eligible Surplus Lines Insurers (LESLI list) and otherwise meet rating requirements. J. This Agreement shall not take effect until certificate(s) or other sufficient proof that these insurance provisions have been complied with, are filed with and approved by the CITY's Risk Manager. If the CONTRACTOR does not keep all of such insurance policies in full force and effect at all times during the terms of this Agreement, the CITY may elect to treat the failure to maintain the requisite insurance as a breach of this Agreement and terminate the Agreement as provided herein. K. All deductibles and self -insured retentions in excess of $10,000 must be disclosed to and approved by the CITY. 18. LEGAL FEES. If any party brings a suit or action against the other party arising from any breach of any of the covenants or agreements or any inaccuracies in any of the representations and warranties on the part of the other party arising out of this Agreement, then in that event, the prevailing party in such action or dispute, whether by final judgment or out -of -court settlement, shall be entitled to have and recover of and from the other party all costs and expenses of suit, including attorneys' fees. For purposes of determining who is to be considered the prevailing party, it is stipulated that attorney's fees incurred in the prosecution or defense of the action or suit shall not be considered in determining the amount of the judgment or award. Attorney's fees to the prevailing party if other than the CITY shall, in addition, be limited to the amount of attorney's fees incurred by the CITY in its prosecution or defense of the action, irrespective of the actual amount of attorney's fees incurred by the prevailing party. 19. MEDIATION/ARBITRATION. If a dispute arises out of or relates to this Agreement, or the breach thereof, the parties agree first to try, in good faith, to settle the dispute by mediation in San Diego, California, in accordance with the Commercial Mediation Rules of the American Arbitration Association (the "AAA") before resorting to arbitration. The costs of mediation shall be borne equally by the parties. Any controversy or claim arising out of, or relating to, this Agreement, or breach thereof, which is not resolved by mediation shall be settled by arbitration in San Diego, California, in accordance with the Commercial Arbitration Rules of the AAA then existing. Any award rendered shall be final and conclusive upon the parties, and a judgment thereon may be entered in any court having jurisdiction over the subject matter of the controversy. The expenses of the arbitration shall be borne equally by the parties to the arbitration, provided that each party shall pay for and bear the costs of its own experts, evidence and attorneys' fees, except that the arbitrator may assess such expenses or any part thereof against a specified party as part of the arbitration award. 6 20. TERMINATION. A. This Agreement may be terminated with or without cause by the CITY. Termination without cause shall be effective only upon 30-day's written notice to the CONTRACTOR or upon expiration of the agreement or funding from the federal government program. During said 30-day period the CONTRACTOR shall perform all services in accordance with this Agreement. B. This Agreement may also be terminated immediately by the CITY for cause in the event of a material breach of this Agreement, misrepresentation by the CONTRACTOR in connection with the formation of this Agreement or the performance of services, or the failure to perform services as directed by the CITY. C. This Agreement may be terminated by the CONTRACTOR for cause in the event of material breach of this Agreement by the CITY, including without limitation, failure of the CITY to pay CONTRACTOR in a timely manner for services provided hereunder. D. Termination with or without cause shall be effected by delivery of written Notice of Termination to the other party as provided for herein. E. In the event of termination, all finished or unfinished Memoranda Reports, Maps, Drawings, Plans, Specifications and other documents prepared by the CONTRACTOR, whether paper or electronic, shall immediately become the property of and be delivered to the CITY, and the CONTRACTOR shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of the Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused the CITY by the CONTRACTOR's breach, if any. Thereafter, ownership of said written material shall vest in the CITY all rights set forth in Section 7. F. The CITY further reserves the right to immediately terminate this Agreement upon: (1) the filing of a petition in bankruptcy affecting the CONTRACTOR; (2) a reorganization of the CONTRACTOR for the benefit of creditors; or (3) a business reorganization, change in business name or change in business status of the CONTRACTOR. 21. NOTICES. All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered; or sent by overnight mail (Federal Express or the like); or sent by registered or certified mail, postage prepaid, return receipt requested; or sent by ordinary mail, postage prepaid; or telegraphed or cabled; or delivered or sent by telex, telecopy, facsimile or fax; and shall be deemed received upon the earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if sent by overnight mail, the business day following its deposit in such overnight mail facility, (iii) if mailed by registered, certified or ordinary mail, five (5) days (ten (10) days if the address is outside the State of California) after the date of deposit in a post office, mailbox, mail chute, or other like facility regularly maintained by the United States Postal Service, (iv) if given by telegraph or cable, when delivered to the telegraph company with charges prepaid, or (v) if given by telex, telecopy, facsimile or fax, when sent. Any notice, request, demand, direction or other communication delivered or sent as specified above shall be directed to the following persons: To CITY: Armando Vergara Neighborhood Services Division City of National City 1243 National City Boulevard National City, CA 91950-4301 7 To CONTRACTOR: Kathryn Lembo, President and CEO South Bay Community Services 1124 Bay Boulevard, Suite D Chula Vista, CA 91911 Notice of change of address shall be given by written notice in the manner specified in this Section. Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given shall be deemed to constitute receipt of the notice, demand, request or communication sent. Any notice, request, demand, direction or other communication sent by cable, telex, telecopy, facsimile or fax must be confirmed within forty-eight (48) hours by letter mailed or delivered as specified in this Section. 22. CONFLICT OF INTEREST AND POLITICAL REFORM ACT OBLIGATIONS. During the term of this Agreement, the CONTRACTOR shall not perform services of any kind for any person or entity (excluding any governmental entities or agencies) whose interests materially conflict in any way with those of the City of National City. The CONTRACTOR also agrees not to specify any product, treatment, process or material for the project in which the CONTRACTOR has a material financial interest, either direct or indirect, without first notifying the CITY of that fact. The CONTRACTOR shall at all times comply with the terms of the Political Reform Act and the National City Conflict of Interest Code. The CONTRACTOR shall immediately disqualify itself and shall not use its official position to influence in any way any matter coming before the CITY in which the CONTRACTOR has a financial interest as defined in Government Code Section 87103. The CONTRACTOR represents that it has no knowledge of any financial interests that would require it to disqualify itself from any matter on which it might perform services for the CITY. U If checked, the CONTRACTOR shall comply with all of the reporting requirements of the Political Reform Act and the National City Conflict of Interest Code. Specifically, the CONTRACTOR shall file a Statement of Economic Interests with the City Clerk of the City of National City in a timely manner on forms which the CONTRACTOR shall obtain from the City Clerk. The CONTRACTOR shall be strictly liable to the CITY for all damages, costs or expenses the CITY may suffer by virtue of any material violation of this Paragraph 22 by the CONTRACTOR. 23. MISCELLANEOUS PROVISIONS. A. Computation of Time Periods. If any date or time period provided for in this Agreement is or ends on a Saturday, Sunday or federal, state or legal holiday, then such date shall automatically be extended until 5:00 p.m. Pacific Time of the next day which is not a Saturday, Sunday or federal, state or legal holiday. B. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute but one and the same instrument. C. Captions. Any captions to, or headings of, the sections or subsections of this Agreement are solely for the convenience of the parties hereto, are not a part of this Agreement, and shall not be used for the interpretation or determination of the validity of this Agreement or any provision hereof. 8 D. No Obligations to Third Parties. Except as otherwise expressly provided herein, the execution and delivery of this Agreement shall not be deemed to confer any rights upon, or obligate any of the parties hereto, to any person or entity other than the parties hereto. E. Exhibits and Schedules. The Exhibits and Schedules attached hereto are hereby incorporated herein by this reference for all purposes. F. Amendment to this Agreement. The terms of this Agreement may not be modified or amended except by an instrument in writing executed by each of the parties hereto. G. Waiver. The waiver or failure to enforce any provision of this Agreement shall not operate as a waiver of any future breach of any such provision or any other provision hereof. H. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 1. Entire Agreement. This Agreement supersedes any prior agreements, negotiations and communications, oral or written, and contains the entire agreement between the parties as to the subject matter hereof. No subsequent agreement, representation, or promise made by either party hereto, or by or to an employee, officer, agent or representative of any party hereto shall be of any effect unless it is in writing and executed by the party to be bound thereby. J. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the parties hereto. K. Construction. The parties acknowledge and agree that (i) each party is of equal bargaining strength, (ii) each party has actively participated in the drafting, preparation and negotiation of this Agreement, (iii) each such party has consulted with or has had the opportunity to consult with its own, independent counsel and such other professional advisors as such party has deemed appropriate, relative to any and all matters contemplated under this Agreement, (iv) each party and such party's counsel and advisors have reviewed this Agreement, (v) each party has agreed to enter into this Agreement following such review and the rendering of such advice, and (vi) any rule or construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement, or any portions hereof, or any amendments hereto. L. No Inducement. Each of the Parties to this Agreement acknowledges for itself that it has read this Agreement and fully understands its contents and consequences and has voluntarily executed it. Each of the parties also warrants that no promise or inducement has been made or offered by any of the Parties, except as set forth herein, and that this Agreement is not executed in reliance upon any statement of representation of any of the Parties or their representatives, concerning the nature and extent of the injuries, damages or legal liability thereof. The Parties further represent that they have been represented by legal counsel during the course of the negotiations leading to the signing of this Agreement, and that they have been advised by legal counsel with respect to the meaning of this Agreement and its legal affect. M. Severance. If any court of competent jurisdiction declares or determines that any provision in this Agreement is illegal, invalid or unenforceable, the legality, validity, and enforceability of the remaining parts, terms and provisions, will not be affected. The provision found illegal, unenforceable, or invalid shall be deemed not a part of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written. 9 SOUTH BAY COMMUNITY SERVICES CITY OF NATIONAL CITY APPROVED AS TO FORM: Claudia Silva City Attorney 1 GA. k r l r, Lee rvi b o Print / ? estdey� CEO Title Print fissOQ)O4, Title Ron Morrison (Print) Mayor (Title) By: (Name) (Print) 10 EXHIBIT A SOUTH BAY COMMUNITY SERVICES National City Homeless Outreach Program and Enforcement (HOPE) A Partnership Between South Bay Community Services and The City of National City, California 2011-2012 Statement of the Problem The distressed economy has impacted a great number of individuals and families who have become homeless, or are at -risk of becoming homeless. The 2010 Point -in -Time Count conducted by the Regional Task Force on the Homeless reported a 7.8% increase in homelessness in San Diego County from the past year. This included a 12.8% increase in the number of unsheltered homeless individuals within the County. The City of National City itself has experienced an influx in the number of homeless persons, particularly trans -border migrants and their families, as well as those suffering as a result of the current economic crisis. With this increase, concerned citizens have frequently lodged complaints with the Police Department regarding issues surrounding the homeless population, which is affecting the quality of life of not only the homeless but the rest of the populace. Most of the homeless in National City, according to the National City Police Department, fall within four categories: mentally ill, drug or alcohol dependent, migrants, or those whose recent circumstances have disrupted their life and caused them to be homeless. The homeless families and individuals who fall within one or more of these categories do not benefit, nor do they become motivated to seek long-term housing as a result of being issued a citation by a police officer. Although some have been involved in criminal activity which warrants their arrest, others may benefit from outreach and resources to help them get back on their feet and into a long-term care facility. The HOPE Program (Homeless Outreach Program and Enforcement) would be a continued collaboration among South Bay Community Services (SBCS) and other social service organizations as well as various departments within National City government including but not limited to the National City Police Department, Public Works, Code Enforcement, the National City Fire Department and the City Attorney's Office, to provide outreach, resources and case management to the City's homeless population. The HOPE Task Force will continue to work together to address long-term housing issues, and bridge the gap between homelessness and long-term care. Goals and Objectives South Bay Community Services' goal is to assist National City's homeless individuals and families to access services and supports that will enable them to secure long-term housing, and change their lives to become as self-sufficient as possible given their individual situation and potential. This will be achieved through the following objectives: 1. Receive and follow-up with residents' concerns regarding the city's homeless population within 72 hours (as documented in contact log); 2 2. Conduct outreach to homeless individuals, to connect them with appropriate services available within the community (as documented in contact log and intake forms); 3. Provide information and facilitated referrals to homeless individuals, including information on obtaining public benefits and other services and programs available in the community such as shelter and long-term housing, food programs, medical services, drug and alcohol treatment programs, domestic violence programs, and other programs as needed (as documented in contact log and case files); 4. Provide one-to-one crisis intervention, assessment and case management for homeless clients (as documented in case files); 5. Participate in ride-alongs as determined by the City with National City Police Officers to provide homeless outreach and assistance (documented in HOPE Weekly Reports); 6. Participate in regular regional coordination meetings such as National City's Homeless Coordination Meeting and the South Bay Homeless Advocacy Coalition to ensure that referrals are current and services are coordinated with regional efforts. Project Design SBCS proposes to hire a full-time (40 hours/week) Homeless Outreach Liaison (75% of which will be funded under this proposal/contract), who will be stationed at the City of National City and will provide the following services: Receive and follow-up on residents' concerns regarding the city's homeless population. Conduct outreach to ensure that homeless individuals are aware of services available through SBCS and other local social service agencies. This will include visiting various homeless "camps" and identified known locations in National City at various hours of the day, in order to provide crisis intervention and connect with as many homeless people as possible to assist with advising as to appropriate services. Provide one-to-one crisis intervention, assessment, and case management to homeless individuals. Provide information and facilitated referrals, including information on obtaining public benefits and other services and programs available in the community such as shelter and Tong -term housing, food programs, medical services, drug and alcohol treatment programs, domestic violence programs, etc. Participate in regional coordination meetings such as the National City's Homeless Coordination Meeting and the South Bay Homeless Advocacy Coalition to ensure that referrals are current and services are coordinated with regional efforts. Participate in HOPE Task Force Meetings, and other City Council and/or collaborative meetings as deemed necessary by the Task Force. Implementation/Time Task Plan Objectives: Timeframe for Completion: Measurement Criteria: i . Receive and follow-up with residents' concerns regarding the city's homeless population. With 72 hours of call/email Contact Log 2. Conduct outreach to homeless individuals, to connect them with appropriate services available within the community. On -going with the goal of reaching 13 homeless individuals per month (x 12 months). Contact Log, Intake Fornis 3. Provide information and facilitated referrals to homeless individuals, including information on obtaining public benefits and other services and programs available in the community such as shelter and long-term housing, food programs, medical services, drug and alcohol treatment programs, domestic violence programs, and other programs as needed. On -going with the goals of providing information and referrals to an average of 13 homeless individuals per month. On -going with the goal of up to 1 new client per month. Contact Log, Case Files 4. Provide one-to-one crisis intervention, assessment and case management for at least 10 homeless clients Case files 5. Participate in ride-alongs with National City Police Officers to provide homeless outreach and assistance Weekly HOPE Weekly Reports b. Participate in regional coordination meetings such as National City's Homeless Coordination Meeting and the South 13ay Homeless Advocacy Coalition to ensure that referrals are current and services are coordinated with regional efforts. Monthly Case files SBCS and the City of National City agree to participate in the HOPE Program by coordinating and/or providing the following services: As Lead Agency, the City of National City will: • Act as lead agency for administration and fiscal management of the proposed project. 4 • Provide and coordinate services from the various departments within the City of National City to address programmatic needs and provide support to the Homeless Outreach Liaison. • Facilitate the Homeless Committee meetings. • Provide office location for the Homeless Outreach Liaison at City Facility. • Providing direction to the Homeless Outreach Liaison relating to outreach and homeless camps cleanup efforts. • Provide temporary storage site for Homeless personal property as per abatement procedures during encampment clean-ups. • Providc the Liaison with contact information of City officials involved in addressing homeless -related issues. • Educate Homeless Outreach Liaison on city policies, ordnances, and resources that relate to homeless issues. • Supervise & create Homeless Outreach Liaison's schedule and approve service hours as determined by Homeless Committee Chair. As Partner Agency, South Bay Community Services will: Homeless Outreach Liaison • Receive and follow-up with residents' concerns regarding the city's homeless population within 72 hours (as documented in contact log). • Conduct outreach to homeless individuals, to connect them with appropriate services available within the community (as documented in contact log and intake forms). • Provide information and facilitate referrals to homeless individuals, including information on obtaining public benefits and other services and programs available in the community such as shelter and long-term housing, food programs, medical services, drug and alcohol treatment programs, domestic violence programs, and other programs as needed (as documented in contact log and case files). • Provide one-to-one crisis intervention, assessment and case management for homeless clients (as documented in case files). • Participate in ride-alongs, as determined by the City, with National City Police Officers to provide homeless outreach and assistance (documented in HOPE Weekly Reports). • Participate in regular coordination meetings such as National City's Homeless Committee Meeting and the South Bay Homeless Advocacy Coalition to ensure that referrals are current and services are coordinated with regional efforts. • Networking with other community homeless groups for the purpose of examining best practices and sharing & receiving information in meeting program objectives. • Provide weekly reports on program activities and outcomes to the National City Homeless Committee Chair. • Provide quarterly statistics as determined by the Homeless Committee Chair. • Review weekly reports to ensure objectives are being addressed. • Homeless Outreach Liaison will assist in notification of shopping cart retrieval when associated with homeless activities. • Assist with documentation of stored homeless property after storage time has expired per City abatement procedures and the donation of such items not recovered. 5 • Provide outreach to community and assistance with "No -Trespass" notification notices when dealing with a homeless project sites. SBCS Supervisor of Homeless Outreach Liaison • Supervise Homeless Outreach Liaison's schedule and approve timecards. • Provide case management guidance and support. • Supervise Iomeless Outreach Liaison's activities to ensure completion of program objectives. Program Evaluation Program Evaluation and Quality Management is an integrated process facilitated by the SBCS' Contract Compliance and Quality Assurance Department (CCQA). The CCQA staff possess extensive experience with monitoring and evaluating service delivery, and they regularly review the conditions of each contract to ensure these conditions are being met correctly and with high quality. SBCS has written policies which address Privacy, Confidentiality and the Release of Information, and all program procedures are HIPAA compliant. SBCS will use various tools to measure program success, including a contact log, sign -in sheets, customer satisfaction surveys, individual case contact notes, and a HOPE Weekly Report. The contact log will provide a record of homeless persons contacted or assisted by the Homeless Liaison. Sign -in sheets will indicate that a group or presentation took place. Individual case contact notes may include the assessment tool together with progress notes indicating increased knowledge of available resources, as well as increased social support and coping skills; referring information; notice of privacy and release of information; evaluations, reports and individual service plans including any revision; progress notes; collateral notes from conversations and meetings with other people including professionals regarding the case; and a closing summary. The HOPE Weekly Reports provide updates regarding Liaison contacts and client progress to ensure that SBCS is on track to meet and exceed program objectives. Project Management Structure The HOPE Program operates under SBCS' Community Development Department overseen by the Chief Executive Officer and Board of Directors. All project services will be provided by qualified staff, under the supervision of competent, experienced, and qualified supervisors. Mauricio Torre, Community Development Department Director, oversees all aspects of program development, implementation, evaluation and maintenance for department contracts and programs; promotes programs through outreach, presentations and networking; monitors budget and program process, statistical reporting and contract management; oversees all county required performance outcome project measurements; oversees completion of monthly data reports in 6 coordination with the Quality Assurance Department; supervises the completion of quarterly narrative reports as required by contracts; produces policies and procedures as well as other materials and forms for programs; conducts training, weekly meetings and strategic planning for department; manages the department budget and staff. Jose Mireles, Community Development Department, Program Director, supervises department programs related to fair housing, housing services and resources, employment assistance, emergency shelter, emergency food assistance, utility assistance, financial literacy, and case management; develops and maintains collaborative partnerships with the Chula Vista Elementary School District, Sweetwater Union High School District, and community organizations; develops and supervises operational and data collection systems; supervises program coordinators, direct service staff, and interns; supervises special projects and contracts; coordinates events and ongoing community activities; facilitates trainings and meetings; analyzes and audits client files; develops monthly, quarterly, and annual reports; and performs other duties as needed. Angel Perez, HOPE Liaison, is stationed at the National City Police Department and works collaboratively with National City representatives to provide outreach including information regarding public benefits and other services and programs available in the community, crisis intervention, assessment, and case management services for homeless individuals and families in National City; participates in regional coordination meetings such as National City's Homeless Coordination Meeting and the South Bay Homeless Advocacy Coalition; maintains contact log, sign -in sheets and client case files; prepares weekly HOPE reports for review by SBCS CCQA and the City; performs other duties as assigned by the Program Director. See Organizational Chart below. 7 SBCS South Bay Community Services Organizational Chart Chula Viste Community Collaborative borati' es Not onal rtily CJIIaS0,ative Reach Out to Families Organizational Capacity Board Of Duectors Cher Executive Office, /N Casa Nuestre Resldenta Cozened Shelter Residents' Councrlc CAT Purer, Youth Admeory Councu Trolley Trestle Resldenti Council Founded in 1971, SBCS is a multifaceted non-profit organization providing a comprehensive an -ay of interconnected health, social service, education, and community development activities for children, youth, and families. SBCS' mission is to provide children, youth, and families with services which reinforce the family's role in our community and assist individuals to aspire realisticly to lives of self-fulfillment. SBCS touches the lives of almost 50,000 people annually, 60% of whom live below poverty level. SBCS serves the County's South Bay region, which covers over 400 sq. miles with a population of 450,244 and includes National City. SBCS' strengths include an exceptionally high level of collaboration with a wide variety of agencies; a broad range of bilingual, culturally appropriate services responding to the many needs of struggling families; flexible wraparound philosophy, including a "no wrong door" approach with staff out -stationed at multiple locations (including National City's Family Resource Centers, police department, and schools), that is responsive to emerging needs and challenges; and a high level of trust and recognition among low-income and at -risk neighborhoods. SBCS is committed to providing respectful services based on community strengths, needs, and goals. SBCS has an annual operating budget of $19 million, employs a staff of 212 professionals 8 supported by 200 volunteers. Staff hiring takes into account the racial, ethnic, linguistic, and social background of clients and every effort is made to provide a similar staff/client balance. Services are provided through four departments: I. Family Wellness & Self Sufficiency Department: an integrated continuum of service strategies and programs focused on strengths, assets, and resiliencics of families; 2. Youth & Family Development: emphasizing prevention, early intervention, and diversion; 3. Community Development Department: affordable housing and economic advancement for low-income families; and, 4. Child Well Being Department_ promoting children's abilities to learn at their optimal potential through health and developmental screenings, assessments and treatment, and early educational opportunities. As a result of our almost 40 years experience providing programs and services for children, youth, individuals, and families in the South Bay, SBCS has achieved a recognized level of success and expertise in working with low- and moderate -income individuals and families, including many who are homeless, and especially in providing bilingual, culturally competent services that arc unparalleled in San Diego County. SBCS has been providing services to homeless youth and families since 1986, first in a series of IIost Homes for runaway and homeless youth, and since in 1993 to homeless families (defined as at least one parent with a child or children). SBCS has a history of meeting the basic needs of our region's struggling individuals and families, and currently operates the South Bay's only permanently established homeless shelters. SBCS is recognized as the "go -to" agency in the South Bay to find out about community resources. SBCS has developed and manages 464 units of low income short-term, transitional, and affordable housing. In addition to serving homeless families, SBCS provides housing programs for vulnerable populations including youth aging out of foster care, runaway and homeless youth, victims of domestic violence, families living with HIV/AIDS, and low-income seniors. SBCS' integrated services for the homeless include short term shelter and transitional housing, 24-hour crisis intervention, mental health counseling, trauma -informed substance abuse services, legal assistance, emergency food, clothing, and transportation, parenting classes, job preparation, rental assistance, affordable housing development, independent living skills, child development and therapeutic preschool program, and a court -certified batterers' program. All homeless clients are assisted to ensure their inclusion on Section 8 Waiting Lists. SBCS staff have recognized that an increasing number of individuals corning through our programs are suffering from drug and/or alcohol abuse as well as serious mental illness, and that these serious, and often inter- related, conditions diminish their ability to establish permanent housing and self-sufficient lifestyles. As a result, SBCS now provides on -site mental health treatment and trauma -informed substance abuse treatment and recovery services. 9 Since July 2008, SBCS has provided Family Self Sufficiency services to individuals and families who meet the federal poverty level guidelines, under a contract with the County of San Diego. SBCS' \VIA program for former foster youth and youth transitioning out of incarceration, known as the EXCEL program, is successfully meeting the intensive employment and educational training needs of many participants as evidenced by our increased employment and employment retention rates. The program also provides six- month, on-the-job internships for those needing additional assistance in attaining employment. SBCS is a member of the Regional Continuum of Care Council (RCCC) and has long been a leader in local homelessness prevention and assistance programs. Out of the work of the RCCC, the "10-Year Plan to End Chronic Homelessness in the San Diego Region" (PTECH) was created, and in 2004 San Diego County launched the plan which outlines strategies to eliminate chronic homelessness by 2012. The plan focuses on two core elements: the Housing Fir -Li lousing Plus model which has documented success in other communities, and strategies aimed at homelessness prevention. SBCS' Chief Executive Officer Kathryn Lembo is a member of Implementation Committee for the PTECH. Through this involvement she is able to ensure that National City constituents' issues are addressed during the implementation of the County- wide plan. SBCS also continues to be an active member of the RCCC. SBCS has a demonstrated commitment to forging successful collaborative relationships in order to serve low-income families and individuals more effectively, currently coordinating a number of major regional initiatives including Community Services for Families (CSF - child abuse prevention & intervention services), First 5 Healthy Development Services (HDS), the Community Assessment Teams (at -risk youth & families), and the Domestic Violence Response Team. SBCS was a founding member of the region's community collaboratives, and is the lead coordinator of services provided at the FRCS. SBCS and its partners maintain a comprehensive network through shared trainings, collaboration, joint programs, and co -located staff, serving the region from over 30 locations including school -based FRCs, domestic violence and homeless shelters, hospitals, schools, police stations, and community clinics. All are staffed by diverse teams of bilingual/bicultural professionals and dedicated, trained volunteers from the community. SBCS' history as a community leader, together with its comprehensive range of services for at -risk and homeless individuals and families, position it as uniquely able to assist individuals and families who are experiencing homelessness in National City. 10 EXHIBIT B BUDGET 2010-2011 Agency Name: South Bay Community Services Activity Name: National City HOPE Program Description 1) Personnel (Direct labor) Department Director Program Director Program Coordinator @ 10% NC Homeless Liasion @ 75% Contract Compliance 2) Fringe Benefits Fica @ 7.65% Salaries >UI @ 1.799% of first $7,000 'ension @ 10% Health Insurance OTHER TOTAL BUDGET RESOURCES BUDGET 27,004.00 4,307.00 2,066.00 95.00 Insurance W/Compensation @ 2% 3,512.00 512.00 3) Travel 330.00 13.00 431.00 Mileage @ 100 miles/mth x $.50 600.00 4) Supplies and Materials Laptop Program &Office Supplies & Printing Telephone & Internet@ $85/month Wrapfunds 5) Sub Total for Direct Costs 4,307.00 27,004.00 538.00 86.00 1,400.00 360.00 1,020.00 6) Indiirect Costs (Overhead) 4,708.00 @ 12.9 /o of Direct Cost TOTAL I $ 2,396.00 108.00 431.00 3,973.00 598.00 600.00 1,400.00 360.00 1,020.00 736.00 5,444.00 41,200 $ 6,441 j $ 47,641 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19, 2011 AGENDA ITEM NO. 21 iM TITLE: Resolution of the City Council of the City of National City authorizing the City Manager to execute a Memorandum of Understanding regarding Legislation on Elimination or Reform of Redevelopment PREPARED BY: PHONE: EXPLANATION: • Claudia G. Silva Ext. 4222 DEPARTMENT: 'ty Attorney APPROVED BY: As legislative changes occur regarding redevelopment, it would benefit the City to collaborate with other cities that have redevelopment agencies ("RDAs"). The proposed resolution authorizes the City Manager to execute a Memorandum of Understanding, which sets forth the collaboration efforts amongst the cities. This collaboration would consist of those cities with redevelopment agencies. An ad - hoc Regional Committee would be formed pursuant to the MOU, consisting of one (1) staff representative from each of the cities or their RDA ("Regional Committee"), for the purpose of making recommendations to the whole for consideration with respect to the protection of redevelopment. FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Adopt resolution. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: posed resolution RESOLUTION NO. 2011 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE CITY MANAGER TO EXECUTE A MEMORANDUM OF UNDERSTANDING REGARDING LEGISLATION ON ELIMINATION OR REFORM OF REDEVELOPMENT WHEREAS, pursuant to the Community Redevelopment Law, Health and Safety Code section 33000, et seq. ("CRL"), 16 of the 18 cities located in San Diego County have formed redevelopment agencies ("RDAs"), duly operating under the rights and obligations set forth in the CRL; and WHEREAS, the RDAs have provided significant funding for affordable housing and economic development projects, and have revitalized communities and eliminated blight within the Cities by investing in local infrastructure and schools throughout the San Diego County region for decades; and WHEREAS, Governor Brown's budget for Fiscal Year 2011-2012 included a dissolution of redevelopment agencies, the use of tax increment to fund State obligations, and the redistribution of tax increment revenues to other taxing entities, which the Cities and the RDAs believe violate Article XVI Section 16, Article XIII Section 25.5(a)(7), Article XIIIA Section 1(a) and/or Article XVI Section 16 (b); the State legislative session also includes SB 286 and SB 450, which propose reform or restructuring of certain redevelopment functions or activities; and WHEREAS, The RDAs and the Cities will be significantly and adversely affected, both individually and collectively, by the 2011 California State budget legislation known as ABx 126, as such legislation purports to dissolve redevelopment agencies statewide, redistribute tax increment, and devolve the obligations of such redevelopment agencies upon so-called successor agencies, which would operate under an as yet -unformed and untested regulatory framework that promises to add a costly layer of oversight and administration to the process, and to distribute critical local funds as the State deems appropriate and in a manner that is adverse to the interests of the RDAs and Cities; and WHEREAS, the Cities and the RDAs desire to cooperate in advocacy efforts for the protection of redevelopment, and believe that the necessary administrative and procedural actions associated with the same should be jointly undertaken to present a unified and coordinated front, and to achieve cost savings where possible; and WHEREAS, in the event State legislative actions are approved that reform or restructure redevelopment functions or activities as proposed by SB 286 or SB 450 or other reform -based legislation, the Cities and the RDAs wish to cooperate to address and/or implement such reforms in an organized and efficient manner that will best assist the Cities and the RDAs. Resolution No. 2011 — July 19, 2011 Page Two NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the City Manager to execute a Memorandum of Understanding regarding legislation on elimination or reform of redevelopment. Said Memorandum is on file in the office of the City Clerk. PASSED and ADOPTED this 19th day of July, 2011. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia G. Silva City Attorney MEMORANDUM OF UNDERSTANDING REGARDING LEGISLATION ON ELIMINATION OR REFORM OF REDEVELOPMENT This Memorandum of Understanding Regarding Legislation on Elimination and/or Reform of Redevelopment ("MOU") is entered into as of this day of 2011 by and between the following cities located in San Diego County, California: Carlsbad; Chula Vista; Coronado; El Cajon; Escondido; Imperial Beach; La Mesa; Lemon Grove; National City; Oceanside; Poway; San Diego, San Marcos; Santee; Solana Beach, and Vista, and the redevelopment agencies formed by each of the listed Cities (individually, "RDA" and collectively, "RDAs") with regard to the following: RECITALS A. Pursuant to the Community Redevelopment Law, located at California Health & Safety Code section 33000, et seq. ("CRL"), sixteen (16) of the eighteen (18) cities located in San Diego County ("individually, "City" and collectively, "Cities") have formed redevelopment agencies, duly operating under the rights and obligations set forth in the CRL. B. The RDAs have provided significant funding for affordable housing and economic development projects, and have revitalized communities and eliminated blight within the Cities by investing in local infrastructure and schools throughout the San Diego County region for decades. C. When the State of California ("State") has been unable to balance its budget, it has raided the coffers of redevelopment agencies throughout California through such legislation as ABX4-26 (2009), which the RDAs and their counterpart agencies believe is a violation of the property tax allocation and tax increment protections set forth in Article XVI § 16 of the California Constitution ("Article XVI § 16"), and also constitutes a violation of Article XIII § 25.5(a)(7) of the California Constitution ("Article XIII § 25.5(a)(7)"), which was adopted pursuant to a vote of the people in November of 2010, of Article XIIIA § 1(a) of the California Constitution ("Article XIIIA § 1(a)"), and of Article XVI § 16(b) of the California Constitution ("Article XVI §16(b)") . D. Governor Brown's budget proposal for Fiscal Year 2011-12 included a recommendation to disband redevelopment agencies and to use tax increment to fund state obligations and to redistribute tax increment revenues to other taxing entities, which was followed by a recommendation from the Legislative Analyst's Office that urgency legislation be adopted that prohibits redevelopment agencies from entering into new contractual agreements until the proposed budget legislation is acted upon, all of which the Cities and the RDAs believe violate Article XVI §16, Article XIII § 25.5(a)(7), Article XIIIA § 1(a) and/or Article XVI § 16 (b); the State MOU re RDA Legislation Page 1 of 20 legislative session also includes SB 286 and SB 450, which propose reform or restructuring of certain redevelopment functions or activities. E. The RDAs and Cities will be significantly and adversely affected both individually and collectively in the event 2011 California state budget legislation known as AB101 and SB 77, or similar successor legislation, are approved and signed into law by the Governor, as such legislation purports to dissolve redevelopment agencies statewide, redistribute tax increment and devolve the obligations of such redevelopment agencies upon so-called successor agencies, which would operate under an as yet -unformed and untested regulatory framework that promises to add a costly layer of oversight and administration to the process, and to distribute critical local funds as the State deems appropriate and in a manner that is adverse to the interests of the RDAs and Cities and, even if the current legislative efforts are ultimately unsuccessful, redevelopment remains at risk. F. RDAs, the Cities and the State will also be imperiled with respect to their existing bonded indebtedness, as the full scope of the impact and effect of the Governor's rash proposal on the bond market, and potential litigation arising therefrom, is as yet unknown. G. The Cities and the RDAs desire to cooperate in advocacy efforts for the protection of redevelopment and to act collectively against State legislative actions that attack redevelopment, and believe that the necessary administrative and procedural actions associated with the same should be jointly undertaken to present a unified and coordinated front and to achieve cost savings where possible. H. The Cities and the RDAs also wish to cooperate in efforts that will keep local money in the local economies and prevent the state from redirecting redevelopment agency property taxes in contravention of voter -approved Proposition 22, which modified Article XIII § 25.5(a)(7). I. In the event State legislative actions are approved that purport to dissolve or disband RDAs and take tax increment funds protected by Article XVI § 16, Article XIII § 25.5(a)(7), Article XII IA § 1(a) and/or Article XVI § 16 (b), the Cities and the RDAs desire to act proactively to protect their collective interests by collaborating on issues such as those relating to so-called successor agencies and any proceedings that may be brought to challenge such state actions. J. In the event State legislative actions are approved that reform or restructure redevelopment functions or activities as proposed by SB 286 or SB 450 or other reform -based legislation, the Cities and the RDAs wish to cooperate to address and/or implement such reforms in an organized and efficient manner that will best assist the Cities and the RDAs. MOU re RDA Legislation Page 2 of 20 NOW, THEREFORE, in consideration of the mutual covenants contained herein and of the Recitals, it is mutually agreed by and between the parties as follows: 1. Collaboration. The Cities and the RDAs agree that they have a collective interest in the protection of redevelopment and their rights under Article XVI §16, Article XIII § 25.5(a)(7), Article XIIIA § 1(a) and/or Article XVI § 16 (b), and hereby appoint an ad hoc committee consisting of one (1) staff representative from each of the Cities or their RDA ("Regional Committee"), or their designees, for the purpose of making recommendations to the whole for consideration with respect. to the protection of redevelopment, on strategic measures in the event of the passage of legislation as described above, and on other possible actions by the Cities and/or the RDAs. Counsel from each City or their RDA may also attend the Regional Committee meetings as desired, but each City and its RDA will collectively have only one vote on any recommendation made by the Regional Committee, for a total of sixteen (16) possible votes. The Regional Committee will act by way of majority vote of a quorum present at meetings during which such recommendations are discussed. 2. Advocacy Authorization on Proposed Elimination of Redevelopment, Collaboration Authorization on Reform or Restructuring of Redevelopment. By due authorization and approval of this MOU, each City and RDA representative is hereby authorized by their respective agency to participate in collective advocacy on behalf of their City and RDA individually, as well as the Cities and the RDAs collectively on proposed legislative elimination of redevelopment, to protect redevelopment and defend against the violation of Article XVI §16, Article XIII § 25.5(a)(7) and/or Article XIIIA § 1(a), and to collaborate on issues arising from the implementation of reform or restructuring of redevelopment functions and activities to the benefit of all Cities and RDAs. 3. Costs and Expenses. The Cities, the RDAs, and each of them, agree that they shall each bear their own costs and expenses, including administrative and personnel expenses, which may arise as a result of their participation in this MOU, and agree that they shall not seek to pass such costs to, among, or through other Cities or RDAs, either individually or collectively_ Those Cities and RDAs whose employee or counsel may be named to the Regional Committee agree that they will bear the costs and expenses associated with the participation of such employee or counsel in such efforts. 4. Conflict of Interest. The Cities and the RDAs acknowledge and agree that the individual Regional Committee members are in turn members of or represent individual Cities and/or RDAs. Regional Committee members may also have unrelated matters pending before other Cities and/or RDAs, either individually or as a group. Participation as a member of the Regional Committee under this MOU shall not constitute an additional separate representation of any individual City or RDA, nor shall such participation be grounds to disqualify members of the Regional Committee MOU re RDA Legislation Page 3 of 20 who may be attorneys who represent individual Cities or RDAs, nor shall it constitute a conflict of interest as between the Cities and/or the RDAs. 5. Withdrawal from Agreement. Any City or RDA may withdraw from participation in this Agreement upon fifteen (15) days' prior written notice to the other Cities and RDAs. A withdrawing City or RDA will remain obligated under Paragraphs 3 and 4 of this MOU and will not assert participation in this Agreement as grounds for disqualification of counsel and agrees to waive any related conflict that may be created between Cities, RDAs and/or their counsel and experts as a result of this Agreement. A withdrawing City or RDA will have no other obligation under this Agreement. 6. Notices. Unless otherwise specifically permitted by this MOU, all notices required or permitted under this MOU shall be in writing, and shall be personally delivered or sent by registered or certified mail, postage prepaid, return receipt requested, or sent by telecopy, provided that the telecopy cover sheet contain a notation of the date and time of transmission, and shall be deemed received: (i) if personally delivered, upon the date of delivery to the address of the person to receive such notice, (ii) if mailed in accordance with the provisions of this paragraph, two (2) business days after the date placed in the United States mail, (iii) if mailed other than in accordance with the provisions of this paragraph or mailed from outside the United States, upon the date of delivery to the address of the person to receive such notice, or (iv) if given by telecopier during business hours when delivered can be confirmed, when delivered. Notices shall be given at the official business address of each respective City and RDA, to the City Manager and to the Executive Director or other titular head of the RDA, respectively. 7. No Employment, Partnership. Nothing contained in this MOU shall be deemed or construed to create an employment, partnership, joint venture or any other similar relationship between the parties hereto or cause the Cities, the RDAs, or any of them, to be responsible in any way for the debts or obligations of other individual Cities, RDAs, or any other person. 8. Authority to Sign. Each City and RDA warrants and represents that the persons executing this MOU on its behalf has full authority to do so and to perform pursuant to the terms and conditions of this MOU. 9. Counterparts. This MOU may be signed in multiple counterparts with the same force and effect as if all original signatures appeared on one copy; and in the event this MOU is signed in counterparts, each counterpart shall be deemed an original and all of the counterparts shall be deemed to be one agreement. 10. Severability. If any portion of this MOU shall be held by a court of competent jurisdiction to be invalid, void or otherwise unenforceable, the remaining provisions shall remain enforceable to the fullest extent permitted by law if enforcement would not frustrate the overall intent of the parties (as such intent is manifested by all MOU re RDA Legislation Page 4 of 20 provisions of the MOU, including such invalid, void or otherwise unenforceable portion). 11. Applicable Law. This MOU shall be construed in accordance with, and governed by, the laws of the State of California. 12. Headings. The headings in this MOU are inserted only as a matter of convenience, and in no way define, limit, extend or interpret the scope of this MOU or of any particular provision hereof. IN WITNESS WHEREOF, the parties have executed this MOU as of the date first set forth above. CITY OF CARLSBAD AND CARLSBAD REDEVELOPMENT AGENCY Attest: By: Lisa Hildabrand, City Manager and Lorraine M. Wood, City and Agency Clerk Executive Director Approved as to Form: Ronald R. Ball, City Attorney and General Counsel [THIS SPACE INTENDED TO BE BLANK] MOU re RDA Legislation Page 5 of 20 CITY OF CHULA VISTA AND REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA Attest: By: Jim Sandoval, City Manager and Executive Director Donna Norris, City and Agency Clerk Approved as to Form: Glen Googins, City Attorney and Agency Counsel [THIS SPACE INTENDED TO BE BLANK] MOU re RDA Legislation Page 6 of 20 CITY OF CORONADO AND COMMUNITY DEVELOPMENT AGENCY Attest: By: Blair King, City Manager and Linda K. Hascup, City and Agency Clerk Executive Director Approved as to Form: Morgan Foley, City Attorney and General Counsel [THIS SPACE INTENDED TO BE BLANK] MOU re RDA Legislation Page 7 of 20 CITY OF EL CAJON AND EL CAJON REDEVELOPMENT Attest: AGENCY By: Kathie Rutledge, City and Agency Clerk Kathi Henry, City Manager and Executive Director Approved as to Form: Morgan Foley, City Attorney and General Counsel [THIS SPACE INTENDED TO BE BLANK] MOU re RDA Legislation Page 8 of 20 CITY OF ESCONDIDO AND ESCONDIDO REDEVELOPMENT Attest: AGENCY By: Marsha Whalen, City and Agency Clerk Clay Phillips, City Manager and Executive Director Approved as to Form: Jeffrey R. Epp, City Attorney and General Counsel [THIS SPACE INTENDED TO BE BLANK] MOU re RDA Legislation Page 9 of 20 CITY OF IMPERIAL BEACH AND IMPERIAL BEACH REDEVELOPMENT Attest: AGENCY By: Jacqueline M. Hald, City and Agency Clerk Gary R. Brown, City Manager and Executive Director Approved as to Form: Jennifer M. Lyon, City Attorney and General Counsel [THIS SPACE INTENDED TO BE BLANK] MOU re RDA Legislation Page 10 of 20 CITY OF LA MESA AND LA MESA REDEVELOPMENT AGENCY Attest: By: David E. Witt, City Manager and Mary J. Kennedy, City and Agency Clerk Executive Director Approved as to Form: Glenn Sabine, City Attorney and General Counsel [THIS SPACE INTENDED TO BE BLANK] MOU re RDA Legislation Page 11 of 20 CITY OF LEMON GROVE AND LEMON GROVE COMMUNITY DEVELOPMENT AGENCY By: Graham Mitchell, City Manager and Executive Director Attest: Susan Garcia, City and Agency Clerk Approved as to Form: James P. Lough, City Attorney and General Counsel [THIS SPACE INTENDED TO BE BLANK] MOU re RDA Legislation Page 12 of 20 CITY OF NATIONAL CITY AND COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY By: Chris Zapata, City Manager and Executive Director Attest: Michael Dalla, City and Agency Clerk Approved as to Form: Claudia Silva, City Attorney and General Counsel [THIS SPACE INTENDED TO BE BLANK] MOU re RDA Legislation Page 13 of 20 CITY OF OCEANSIDE AND OCEANSIDE REDEVELOPMENT Attest: AGENCY By: Barbara Riegal Wayne, City and Peter A. Weiss, City Manager and Agency Clerk Executive Director Approved as to Form: John Mullen, City Attorney and General Counsel [THIS SPACE INTENDED TO BE BLANK] MOU re RDA Legislation Page 14 of 20 CITY OF POWAY AND Attest: POWAY REDEVELOPMENT AGENCY By: Diane Shea, Agency Clerk Penny Riley, City Manager and Executive Director Approved as to Form: Morgan Foley, General Counsel [THIS SPACE INTENDED TO BE BLANK] MOU re RDA Legislation Page 15 of 20 CITY OF SAN DIEGO AND SAN DIEGO REDEVELOPMENT Attest: AGENCY By: Elizabeth Maland, City and Agency Clerk Gerald R. Sanders, City Manager and Executive Director Approved as to Form: Jan Goldsmith, City Attorney and General Counsel [THIS SPACE INTENDED TO BE BLANK] MOU re RDA Legislation Page 16 of 20 CITY OF SAN MARCOS AND SAN MARCOS REDEVELOPMENT Attest: AGENCY By: Susie Vasquez, City and Agency Clerk Paul Malone, City Manager and Executive Director Approved as to Form: Helen Holmes Peak, City Attorney and General Counsel [THIS SPACE INTENDED TO BE BLANK] MOU re RDA Legislation Page 17 of 20 CITY OF SANTEE AND SANTEE REDEVELOPMENT AGENCY Attest: By: Patsy Bell, City and Agency Clerk Keith Till, City Manager and Executive Director Approved as to Form: Shawn Hagerty, City Attorney and General Counsel [THIS SPACE INTENDED TO BE BLANK] MOU re RDA Legislation Page 18 of 20 CITY OF SOLANA BEACH AND SOLANA BEACH REDEVELOPMENT Attest: AGENCY By: Angela Ivey, City and Agency Clerk David Ott, Interim City Manager and Interim Executive Director Approved as to Form: Johanna Canlas, City Attorney and General Counsel [THIS SPACE INTENDED TO BE BLANK] MOU re RDA Legislation Page 19 of 20 CITY OF VISTA AND Attest: VISTA REDEVELOPMENT AGENCY By: Marci Kilian, City and Agency Clerk Rita Geldert, City Manager and Executive Director Approved as to Form: Darold Pieper, City Attorney and General Counsel [THIS SPACE INTENDED TO BE BLANK] MOU re RDA Legislation Page 20 of 20 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19, 2011 AGENDA ITEM NO. 22 'EM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY REDUCING THE PROPERTY TAX RATE FOR BONDED INDEBTEDNESS FOR FISCAL YEAR 2011-2012 FROM 1.42 CENTS PER $100 OF ASSESSED VALUATION TO 1.37 CENTS. (Finance) PREPARED BY: Teresa Mendoza, Sr. Accountant DEPARTMENT: Finance PHONE: (619) 336-4332 APPROVED BY: EXPLANATION: At the special municipal election held on March 5, 2002, more than two thirds of National City's eligible voters approved the issuance of General Obligation Bonds to fund the construction of the new National City Library. In April 2003, the City issued the General Obligation Bonds in the aggregate principal amount of $6 million. The bonds mature on August 1st in each of the years 2004 through 2028. The amount of principal and interest that become due every year will be paid from the proceeds of property taxes received from the County of San Diego. Each year the City must establish the property tax rate that will be necessary to raise the revenue required to service its annual bonded indebtedness. For the Fiscal Year 2011-2012, the calculated property tax rate is 1.37 cents per $100 of assessed value. This is a 3.5% reduction from Fiscal Year 2010-2011 rate of 1.42 cents. FINANCIAL STATEMENT: APPROVED: � 'Finance ACCOUNT NO. APPROVED: MIS N/A ENVIRONMENTAL REVIEW: ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: N/A BOARD / COMMISSION RECOMMENDATION: IN/Al ATTACHMENTS: 1. Resolution 2. General Obligation Bond Tax Rate Computation for FY 2011-2012 RESOLUTION NO. 2011 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY REDUCING THE PROPERTY TAX RATE FOR LIBRARY GENERAL OBLIGATION BONDED INDEBTEDNESS FOR FISCAL YEAR 2011-2012 FROM 1.42 CENTS PER $100 OF ASSESSED VALUATION TO 1.37 CENTS WHEREAS, at the special municipal election held on March 5, 2002, more than two-thirds of National City's eligible voters approved the issuance of General Obligation Bonds to fund the construction of the new National City Public Library; and WHEREAS, in April, 2003, the City issued the Library General Obligation Bond in the aggregate principal amount of $6 Million. Those bonds mature on August 1st of each of the years 2004 through 2028; and WHEREAS, the amount of principal and interest that become due every year will be paid from the proceeds of property taxes received from the County of San Diego; and WHEREAS, each year the City establishes the property tax rate that will be necessary to raise the revenue required to service its annual bonded indebtedness; and WHEREAS, the total net taxable secured assessed valuation of the City is now at $2,756,175,000 full value; and WHEREAS, the amount of revenue to be raised from the tax base for Fiscal Year 2011-2012 is $300,457, according to the voter -approved bonded indebtedness, thereby establishing the rate of property tax required; and WHEREAS, for Fiscal Year 2011-2012, the calculated property tax rate is 1.37 cents per $100 of assessed value, which is a 3.5% reduction from Fiscal Year 2010-2011 rate of 1.42 cents. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby establishes the Library General Obligation Bond property tax rate for Fiscal Year 2011-2012 at 1.37 cents (.0137%) per $100 of assessed value, which is a 3.5% reduction from Fiscal Year 2010-2011's rate of 1.42 cents. 2002 GENERAL OBLIGATION BONDS: 0.0137% PER $100 ASSESSED VALUE PASSED and ADOPTED this 19th day of July, 2011. Ron Morrison, Mayor ATTEST: APPROVED AS TO FORM: Michael R. Della, City Clerk Claudia G. Silva, City Attorney General Obligation Bond Debt Service (Fund 259) Tax Rate Computation for FY2011-2012 National City Secured Valuation Unsecured Valuation 1 Net Secured Valuation 3 Less Delinquency AIIowan 4 Net after Delinqency 5 Plus HOPTR 6 Prelim Adj Secured Valuation 7 Less Redevelopment Impact 8 Adj Sec Valuation Less Redevelopment Impact 9 Anticipated Roll Corrections 10 Adj Sec Val for Rate Computation 16 Computed Rate 17 Plus .0001 Assessed Rate Valuation 0.0137 2,756,175,000 0.0142 205,744,000 2,756,175,000 2,756,175, 000 31,031,000 2,787,206,000 2,787,206,000 0.0200 55,123,500 2,732,082,500 0.00% 0.0001 0.01359 0.01369 Fund No. 6065-50 FY10/11 Est. Revenue 377,320 29,216 406,536 11 Amount to be raised 12 Unsecured HOPTR 14 Unsecured Delinquency 15 Less Unsecured Redevelopment Impact 16 Amount to be raised by Secured Taxes 18a Tax rate times #4 399,457 0 28,047 0 371,410 374,564 18b Tax rate times HOPTR 4,217 19 Secured Proof 378,781 20 Raised by 1/100th mil 2,732 21,23 Taxes Raised 409,560 I CERTIFY THAT ABOVE COMPUTED RATE + 1/100TH MIL IS A REASONABLE TAX RATE FOR THIS FUND TereSsndoz Sr. Accountant 7//.2.//1 Date COUNTY OF SAN DIEGO ERNEST J. DRONENBURG, JR. ASSESSOR/RECORDER/COUNTY CLERK www.sdarcc.com ASSESSOR'S OFFICE i00 PACIFIC HIGHWAY, SUITE 103 SAN DIEGO, CA 92101-2480 (619) 236-3771 • FAX (619) 557-4056 June 27, 2011 Chris Zapata, City Manager City of National City 1243 National City Blvd. National City, CA 91950 Dear Mr. Zapata: RECORDER/COUNTY CLERK'S OFFICE 1600 PACIFIC HIGHWAY, SUITE 260 P.O. BOX 121750, SAN DIEGO, CA 92112-1750 (619) 237-0502 • FAX (619) 557-4155 The following are the final locally assessed values for your city for the 2011-2012 assessment year. Generally year-over-ycar changes in assessed values are attributable to change in ownership and new construction reassessments, and the annual inflation adjustment (CCPI) not to exceed 2% per year . Under California law, a reduction in assessed value can also occur when the current market value of the property falls below its base year value adjusted for inflation. These temporary reductions are subject to full restoration as market values improve. This year's values incorporate the nct of all changes including partial and full value restorations. These figures differ from the total assessed values in the News Release because they are the net values, after exemptions have been deducted. Land Improvements Personal Property Total Valuation Homeowners' Exemptions Other Exemptions NET TOTAL Secured Roll Unsecured Roll ($000) ($000) $1,218,778 $1,676,854 $64,419 $4,959 $141,325 $2,900,591 $205,744 $31,031 $113,385 $2,756,175 COMBINED TOTAL S2,961,919 I hope this information is helpful. If you have any questions or desire any further information, please contact Diana Lackey, Chief Deputy Assessor, at (619) 531-5507. Very truly yours, ERN ST J. DRON G, JR. County Assessor der/Clerk EJD:Id cc: Finance Director CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19, 2011 AGENDA ITEM NO. 23 M TITLE: NEW BUSINESS: Disclosure of Property Interest located within the Redevelopment Project Area; Mayor Ron Morrison PREPARED BY: Claudia G. Silva PHONE: EXPLANATION: (Ext. 4222) DEPARTMENT: C.y Attorney APPROVED BY: On March 1, 2011, pursuant to Health and Safety Code Section 33130, a Disclosure of Mayor Morrison's property interest located within the Redevelopment Project Area was entered into the minutes of the City Council and CDC meeting. Mayor Morrison no longer has such property interest. This entry into the minutes is intended to memorialize the end of the former property interest. FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Enter disclosure on the minutes. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: Memorandum from City Attorney Memorandum from Mayor Morrison Mayor Ron Morrison Council Members Alejandra Sotelo-Solis Louis Natividad Mona Rios Rosalie Zarate trvcoRioRATfiD Office of the City Attorney City Attomey Claudia Gacitua Silva Legal Counsel George H. Eiser, III Senior Assistant City Attorney Jodi L. Doucette TO: City Manager DATE: July 6, 2011 FROM: City Attorney SUBJECT: Disclosure of Property Interest Located Within Redevelopment Project Area — Property Interest No Longer Exists BACKGROUND Attached is a Disclosure of Property Interest Located within the Redevelopment Project Area signed by Mayor Ron Morrison. Section 33130 of the Health and Safety Code (the Community Redevelopment Law) requires that such a statement be entered on the minutes of the redevelopment agency and of the legislative body (the City Council). A Disclosure of Property Interest by Mayor Morrison was entered into the minutes of the City Council and CDC meeting on March 1, 2011. This subsequent disclosure states the property interest no longer exists.. RECOMMENDED ACTION It is requested that this disclosure be entered on the minutes of the City Council and CDC at their meeting of July 19, 2011. C CIA ILVA City Attorne /gm Attachment 1243 National City Boulevard; National City, California 91950-4301 Tel.: (619) 336.4220 Fax: (619) 336.4327 —CALIFORNIA jIC ' NCORPORATE TO: City Manager FROM: Mayor Ron Morrison SUBJECT: Disclosure of Property Interest Located within Redevelopment Project Area — Property Interest No Longer Exists DATE: July 7, 2011 Pursuant to Section 33130 of the Health and Safety Code, please enter into the minutes of the July 19, 2011 City Council meeting the fact that as of Y Z t , 2011, I no longer own or have direct or indirect financial interests in the following property located within the National City Redevelopment Project Area: 2740 K Avenue National City, CA 91950 Ron Morrison Mayor Mayor Ron Morrison 1243 National City Boulevard, National City, CA 91950-4301 619/336-4233 Fax 619/336-4239 www.nationalcityca.gov r) CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19, 2011 AGENDA ITEM NO. 24 M TITLE: National City Sales Tax Update — First Quarter 2011 PREPARED BY: Leslie Deese, Asst. City Manager PHONE: 336-4240 EXPLANATION: DEPARTMENT: City Manager APPROVED BY: BACKGROUND National City has an on -going contract with Hinderliter, de Llamas & Associates (HdL Companies) for revenue management. Staff meets with a representative of HdL on a quarterly basis to review sales tax data and trends within the City and statewide. The HdL companies also review National City's property tax data and provides an annual report of the redevelopment project areas. NEWSLETTER SUMMARY Sales tax for the First Quarter of 2011 showed a 12% increase in comparison to the same quarter last year. The City's voter approved transaction tax (Prop. D) generated an additional $2,062,979, this quarter an increase of 10.1 % over the same quarter last year. Adjusted for aberrations, taxable sales for all of San Diego County increased 9.1 % over the comparable time period, while the Southern California region as a whole was up 8.7%. California's economy appears to be recovering and sales tax growth is expected to follow. However, gains in the next two quarters will be held back by temporary supply chain disruptions caused by the earthquake and tsunami in Japan and by reduced consumer spending as rising gas prices Ito disposable incomes. New uncertainties from further declines in home values and additional government layoffs may soften consumer spending and business investment for the first half of the fiscal year. The attached Newsletter provides additional detail on the economic front. This newsletter is also available on the Citv's website. FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: Finance APPROVED: MIS STAFF RECOMMENDATION: Accept and file the newsletter BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: onal City Sales Tax Update Newsletter -First Quarter 2011 National City In Brief ii eceipts for National City's Jan- uary through March sales were 12.0% higher than the same quarter one year ago. Actual sales activity was up 13.0% when reporting aber- rations were factored out. The s & transportation group poste significant increase pri- marily e to a boost in new and used auto sales. Business & Indus- ' 'nefited from a bump in electri- .luipment use tax; however, the overall gain was inflated by an erro- neous allocation from light industrial supplies. Service stations experienced gains in large part from the rise in fuel pric- es but the increase was muted by double payments that inflated the comparison quarter. The restau- rants & hotels group posted posi- tive all results primarily due to stron les from restaurants with- out a ol. Losses from building & construction were primarily attribut- able to contractor supply business closur nd a drop in sales from lumbe aterials. The city's voter approved trans- action tax generated an additional $2,062,979 this quarter, an increase of 10.1% over the same quarter last year. Adjusted for aberrations, taxable for all of San Diego County ii ased 9.1% over the compara- ble time period, while the Southern California region as a whole was up 8.7%. atioiial Sales Tax Update Second Quarter Receipts_ Jor 1 stQuarter Sales Dan -Mar 2011) SALES TAX BY MAJOR BUSINESS GROUP $1,200,000 $1,000,000 $600,000 $ mo mo $400,mo $ 200,000 $o Autos and Transportation General Consumer Goods r Restaurants and Hotels TOP 25 PRODUCERS In Alphabetical Order Arco AM PM Ball Honda Acura Mitsubishi & Suzuki Frank Motors Frank Subaru Fusco Abrasive Systems Highland Arco JC Penney Macys McCune Motors Mossy Nissan National City Auto Center One Source Distributors Perry Ford Probuild Company Ron Baker Chevrolet lsuzu Ross South Bay Volkswagen Suzuki Target Thrifty Gas Univar Value Cars Vintners Distributors Walmart Wescott Mazda Kia Westair Gases & Equipment Business and Industry r Fuel and Service Stations ■ 1st Quarter 2010 ■ 1st Quaner 2011 Food and Drugs Building and Construction REVENUE COMPARISON Four Quarters — Fiscal Year To Date Point -of -Sale County Pool State Pool Gross Receipts Less Triple Flip* 2009-10 2010-11 $10,437,239 $11,461,616 1,205,554 1,369,272 9,183 5,039 $11,651,976 SI2,835,926 S(2,912,994) $(3,208,982) Gross Trans. Tax $7,853,232 S8,614,133 *Reimbursed from county compensation fund Published by The HdL Companies in Summer 2011 www.hdlcompanies.com i 888.861.0220 COMPANIES Q1 2011 National City Sales Tax Update Statewide Sales on the Rise Adjusted for accounting aberrations, California's local sales and use tax rev- enues from transactions during the first quarter of 2011 were 9.2% higher than the previous year's comparable quarter. This represents the fifth con- secutive quarter of recovery and the largest percentage gain since the sec- ond quarter of 2005. "Total annual rev- enues however, are still 14.8 %o below 2006-2007. Most regions of the state shared in the increase with the largest contributor coming from a dramatic surge in fuel prices. Allocations from new car sales also were a factor with a statewide gain of 19.8% over the first quarter of 2010. Revenues from full service restaurants and consumer electronics exhibited increases of 10°10 or more. California Outlook The good news is that California's economy is recovering and sales tax growth will follow However, gains in the next two quarters will be held back by temporary supply chain dis- ruptions caused by the earthquake and tsunami in Japan and by reduced con- sumer spending as rising gas prices cut into disposable incomes. New uncer- tainties from further declines in home values and additional government lay- offs may also soften consumer spend- ing and business investment for the first half of the fiscal year. Sales tax growth is expected to pick up in the second half although slug- gish improvement in employment and lackluster construction spending will continue to affect the economies of the state's inland regions. Internet Taxation Linder federal case law, states cannot require businesses without a physi- cal presence in their state to collect sales tax. Companies such as Amazon have built their business plans around avoiding collecting the tax thereby put- ting local brick and mortar stores at a competitive disadvantage. This year, California has attempted to partially correct the inequity through the passage of ABX 1 28 which com- bines the differing strategics of three previous bills with each designed to be severable in the event of a successful court challenge. The first follows the lead of New York State by declaring that internet sales through a host of in -state affiliates constitutes "substantial nexus" and therefore makes sales through those affiliates subject to sales tax. ABX 1 28 also prevents companies with in- state brick and mortar stores from treating those stores as separate legal entities to avoid collecting tax on in- ternet sales. The third strategy permits the state to use a revised definition of "engaged in business in this state" if future court decisions expand the defi- nition of nexus so that internet sellers must collect sales tax in their custom- ers' jurisdictions. ABX 1 28 is expected to increase statewide tax collections by $317 mil- lion annually, with local governments splitting about $39 million or roughly $1.00 per capita. Revenues from these out of state sales would be distributed primarily though the countywide use tax allocation pools. Staying Alive (shrinking retailers) Agencies in smaller market areas may have fresh opportunities for new retail with big box stores now planning on smaller facilities. Reducing floor area is seen as another method of cost con- tainment as consumer thriftiness keeps pressure on corporate profit margins. JC Penney, Petsmart, '1J Maxx and Staples have announced plans to build stores up to 40% smaller than their existing locations while Best Buy is planning to sublease part of the space in their existing stores and retail giant Wal-Mart is experimenting with stores as small as 14,000 square feet to re- capture lost market share from dollar stores. NATIONAL CITY TOP 15 BUSINESS TYPES Business Type Department Stores Discount Dept Stores Electrical Equipment ElectronicslAppliance Stores Family Apparel Light Industrial/Printers New Motor Vehicle Dealers Restaurants Beer And Wine Restaurants Liquor Restaurants No Alcohol Service Stations Shoe Stores Specialty Stores Used Automotive Dealers Women's Apparel Total All Accounts County & State Pool Allocation Gross Receipts National City County' . HdL State Q1'11• Change Change Change 104.2 5.4% 2.6% 4.1% 191.7 -5.9% 1.2% 2.1% 116.4 925.1% 26.4% 9.9% 62.9 21.3% 6.1% 11.9% 136.5 1.5% 5.9% 3.8% 73.5 193.2% 27.0% 6.5% 881.0 21.0% 20.0% 19.7% 47.4 -8.7% -7.3% -3.7% 46.1 0.8% 9.5% 8.5% 216.7 9.6% 11.6% 8.6% 211.0 12.1% 22.6% 19.8% 56.8 15.0% 7.3% 11.3% 72.4 -4.9% 4.9% 3.2% 78.6 7.7% 16.8% 16.5% 79.4 3.8% 8.4% 4.3% $2,887.4 13.1% 8.7% 335.6 3.3% $3,223.0 12.0% "In thousands CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19th, 2011 AGENDA ITEM NO. 'EM TITLE: Warrant Register #51 for the period of 06/15/11 through 06/21/11 in the amount of $189,708.14 PREPARED BY: K. Apalategui PHONE: 019-336-4331 APPROVED BY - EXPLANATION: Per Government Section Code 37208, attached are the warrants issued for the period of 06/15/11 through 06/21/11 DEPARTMENT: Finance The Finance Department has implemented a policy explanation of all warrants above $50,000.00 Vendor Check Amount Explanation SDG&E 242371 $60,746.50 City Utilities June 2011 FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: titi inance MIS STAFF RECOMMENDATION: ;Ratification of warrants in the amount of $189,708.14 BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: rrant Register #51 PAYEE IKON OFFICE SOLUTIONS U S BANK VERIZON WIRELESS VISTA PAINT WESTFLEX INDUSTRIAL ABCANA INDUSTRIES ACE UNIFORMS & ACCESSORIES INC ALL FRESH PRODUCTS AUTO ZONE BAVENCOFF BOOT WORLD BRENNTAG PACIFIC INC BROADWAY AUTO ELECTRIC C YOUNG ASSOCIATES CALIFORNIA ELECTRIC SUPPLY CAMEON CATO 1TO _iB CHILDREN'S HOSPITAL CNOA CNOA CULLIGAN DAPPER TIRE COMPANY DISCOUNT SPECIALTY CHEMICALS DRAKE CONTRACTING INC DREW FORD DTSC EASY PAR AUDIO ENNIS TRAFFIC SAFETY SOLUTIONS ENVIRONMENTAL HEALTH COALITION EXXON MOBIL FAULKNER FLEET SERVICES INC FRANK TOYOTA FUN FLICKS G & A AUTOMOTIVE, INC. GEORGE'S LAWN EQUIPMENT CO GRAINGER HAMILTON MEATS & PROVISIONS HONEYWELL INTERNATIONAL INC 'DRO SCAPE PRODUCTS INC RAULDS CAR CARE CENTER JOHN DEERE LANDSCAPES JUDD ELECTRIC L1 IDENTITY SOLUTIONS LAFRENIERE LASER SAVER INC INCORi'ORA ED WARRANT REGISTER # 51 6/21/2011 DESCRIPTION COPIER MAINTENANCE/SUPPLY BILLINGS CREDIT CARD EXP - COMM DEV WIRELESS SERVICE FOR ALL CITY MOP 68834 GRIZZLIER BROWN MOP 63850 MATERIAL & SUPPLY POOL CHEMICALS UNIFORMS FOOD FOR NUTRITION CENTER DEPOSIT#1372 AUTOZONE EDUCATIONAL REIMBURSEMENT MOP 64096 WEARING APPAREL POOL CHEMICALS ELECTRICAL PARTS INDUSTRIAL HYGIENE/ENVIRONMENT MOP 45698 ELECTRICAL MATERIAL SUPERVISORY COURSE 2011 TACTICAL OFFICER CONE 2011 TACTICAL OFFICER CONE CA CIVIL DISCOVERY PRACTICE CHILD ABUSE EXAMS DRUG ABUSE RECOG COURSE DRUG ABUSE RECOG COURSE WATER SOFTENER SERVICE FOR KITCHEN MOP 72654 AUTO PARTS LIQUID LIVE ENZYMES REFUND OF C&D COSTS MOP 49078 AUTO PARTS MANIFEST COUNTS FOR SHIPMENTS REFUND BUSINESS TIC DENIED MOP 63846 TRAFFIC CONTROL SUPPLY MAKING NC HEALTHY HOMES -APR 2011 DEPOSIT#653 T&A 653 EDUCATIONAL REIMBURSEMENT MOP 67804 AUTO PARTS TOYOTA PRIUS HYBRID 2000 POSTCARDS FOR NC SUMMER MOP 72655 R&M AUTO EQUIPMENT WEED WHIP 25.4CC 1.2HP 52" SHT S/N MOP 65179 PLUMBING MATERIAL MEAT DELIVERY FOR NUTRITION CENTER HVAC WORK MOP 45720 PIPES, VALVES MOP 72449 R&M AUTO EQUIPMENT MOP 69277 PLANTING MATERIAL ELECTRICAL REPAIRS INVESTIGATIVE SERVICES REIMB - LEATHER STATION BOOTS MOP 45725 OFFICE SUPPLIES 1/2 CHK NO DATE AMOUNT 242312 6/21/11 4,305.12 242313 6/21/11 30.00 242314 6/21/11 219.66 242315 6/21/11 1,272.19 242316 6/21/11 107.49 242317 6/21/11 266.94 242318 6/21/11 247.93 242319 6/21/11 53.29 242320 6/21/11 1,441.89 242321 6/21/11 221.00 242322 6/21/11 617.43 242323 6/21/11 1,808.50 242324 6/21/11 152.25 242325 6/21/11 1,575.30 242326 6/21/11 139.02 242327 6/21/11 1,240.00 242328 6/21/11 150.00 242329 6/21/11 85.00 242330 6/21/11 384.43 242331 6/21/11 407.00 242332 6/21/11 225.00 242333 6/21/11 225.00 242334 6/21/11 204.55 242335 6/21/11 851.09 242336 6/21/11 413.39 242337 6/21/11 1,689.80 242338 6/21/11 61.88 242339 6/21/11 22.50 242340 6/21/11 50.00 242341 6/21/11 493.88 242342 6/21/11 23,275.74 242343 6/21/11 2,000.00 242344 6/21/11 246.41 242345 6/21/11 126.36 242346 6/21/11 1,058.91 242347 6/21/11 498.50 242348 6/21/11 498.94 242349 6/21/11 844.26 242350 6/21/11 1,106.71 242351 6/21/11 783.84 242352 6/21/11 977.09 242353 6/21/11 1,357.44 242354 6/21/11 252.60 242355 6/21/11 1,472.80 242356 6/21/11 6,015.00 242357 6/21/11 44.00 242358 6/21/11 79.95 242359 6/21/11 39.46 PAYEE MASTER SHINE WINDOW WASHING NATIONAL CITY TROPHY OPTICSALE.COM ORANGE COUNTY SHERIFFS DEPT PARKHOUSE TIRE PROJECT PROFESSIONALS CORP. PRUDENTIAL OVERALL SUPPLY SDCLEEAA SAM'S ALIGNMENT SERVICE SCANNING SERVICE CORPORATION SDG&E SILVA SMART & FINAL SMART SOURCE OF CA LLC SOUTHWESTERN COLLEGE SOUTHWESTERN COLLEGE SPARKLETTS WATER SWEETWATER AUTHORITY SYSCO SAN DIEGO THE UNION TRIBUNE PUBLISHING TRC COMPANIES INC U S BANK UNION BANK PARS 6746022500 UNION TRIBUNE UNION TRIBUNE PUB CO UNITED ROTARY BRUSH CORP V & V MANUFACTURING VERIZON WIRELESS WAXIE SANITARY SUPPLY WEST PAYMENT CENTER WEST PAYMENT CENTER WRG FIRE TRAINING SIMULATION ZUMAR INDUSTRIES WARRANT REGISTER # 51 6/21/2011 DESCRIPTION CHK NO WINDOW CLEANING SVCS 242361 MOP 66556 RECOGNITION PLAQUES 242362 027-132410_ BUSHNELL H2O 10x42 242363 SUPERVISORY COURSE 242364 FLEET SERVICE PRE -SCHEDULED 242365 CHILLER REPLACEMENT PROJECT MAY 2011 242366 MOP 45742 LAUNDRY SERVICE 242367 EXPLORER ACADEMY ENROLLMENT WHEEL ALIGNMENT SCANNING RECORDS FOR QUESTYS FACILITIES GAS & ELECTRIC STRIKE TEAM CLASS MOP 45756 MISC SUPPLIES-COMM SVCS BUSINESS CARD IMPRINTS AMMUNITION - RESERVE ACADEMY RESERVE COURSE WATER FOR MAYOR'S OFFICE PARKS WATER BILL FOOD & CONSUMABLES FOR NUTRITION LEGAL NOTICES ADVERTISING DEPOSIT#1102 T&A 1102 CREDIT CARD EXP - CM/HR PARS DEFINED BENEF CONVERSION PLAN UNION TRIBUNE PUBLIC NOTICING PUBLICATION OF PLANNING COMMISSION SWEEPER REPAIRS NATIONAL CITY POLICE BADGES, OB-69 WIRELESS SERVICE FOR ALL CITY #850016. 23304 ENVISION BROWN LEGAL PUBLICATION CLEAR INVESTIGATIVE DATABASES #10100. MDG SMOKE FLUID, LITER SPECIAL 1824 FPM45 2/2 DATE AMOUNT 6/21/11 2,000.00 6/21/11 398.15 6/21/11 289.96 6/21/11 102.00 6/21/11 1,297.29 6/21/11 14,818.00 6/21/11 646.77 242368 6/21/11 5,350.00 242369 6/21/11 67.50 242370 6/21/11 5,000.00 242371 6/21/11 60,746.50 242372 6/21/11 254.73 242373 6/21/11 646.13 242374 6/21/11 219.51 242375 6/21/11 250.00 242376 6/21/11 210.00 242377 6/21/11 38.49 242378 6/21/11 1,990..E 242379 6/21/11 2,617.t. 242380 6/21/11 627.60 242381 6/21/11 2,000.00 242382 6/21/11 329.94 242383 6/21/11 16,903.27 242384 6/21/11 2,800.00 242385 6/21/11 753.20 242386 6/21/11 596.82 242387 6/21/11 783.38 242388 6/21/11 5,625.07 242389 6/21/11 164.57 242390 6/21/11 1,224.37 242391 6/21/11 420.00 242392 6/21/11 398.46 242393 6/21/11 499.05 A/P Total 189,708.14 GRAND TOTAL $ 189,708.14 Certification IN ACCORDANCE WITH SECTION 37202, 37208, 372059 OF THE GOVERNMENT CODE, WE HEREBY CERTIFY TO THE ACCURACY OF THE DEMANDS LISTED ABOVE AND TO THE AVAILABILITY OF FUNDS FOR THE PAYMENT THEREOF AND FURTHER THAT THE ABOVE CLAIMS AND DEMANDS HAVE BEEN AUDITED AS REQUIRED BY LAW. FINANCE CITY MANAGER FINANCE COMMITTEE RONALD J. MORRISON, MAYOR -CHAIRMAN ALEJANDRA SOTELO-SOLIS, VICE -MAYOR ROSALIE ZARATE, MEMBER LUIS NATIVIDAD, MEMBER MONA RIOS, MEMBER I HEREBY CERTIFY THAT THE FOREGOING CLAIMS AND DEMANDS WERE APPROVED AND THE CITY TREASURER IS AUTI IORIZED TO ISSUE SAID WARRANTS IN PAYMENT THEREOF BY TIIE CITY COUNCIL. ON THE 1e OF JUI.Y, 201 I. AYES NAYS ABSENT CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19th, 2011 AGENDA ITEM NO.216 EM TITLE: ;Warrant Register #52 for the period of 06/22/11 through 06/28/11 in the amount of $1,431,402.82 PREPARED BY: K. Apalategui DEPARTMENT: Finance PHONE: 019-336-4331, APPROVED BYc- —, /, EXPLANATION: Per Government Section Code 37208, attached are the warrants issued for the period of 06/22/11 through 06/28/11 The Finance Department has implemented a policy explanation of all warrants above $50,000.00 Vendor Check Amount Explanation Public Emp Ret System 242435 $250,633.52 Service period 6-11-3 Retirement Insurance FINANCIAL STATEMENT: APPROV ACCOUNT NO. APPROVED: N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: finance MIS STAFF RECOMMENDATION: Ratification of warrants in the amount of $1,431,402.82 BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: rant Register #52 PAYEE MIRACLE PLAYGROUND SALES, INC. ALL COUNTIES COURIER INC CHRISTENSEN & SPATH LLP DIXIELINE BUILDERS E2 MANAGE TECH INC LASER SAVER INC MAINTEX INC N C CHAMBER OF COMMERCE PRO BUILD PRUDENTIAL OVERALL SUPPLY SAN DIEGO TROLLEY INC VISTA PAINT ADAMSON POLICE PRODUCTS AT&T MOBILITY AT&T/MCI BOOT WORLD CARQUEST AUTO PARTS W GOVERNMENT, INC. UNTY OF SAN DIEGO COUNTY OF SAN DIEGO DAPPER TIRE COMPANY DATA TICKET INC DEPARTMENT OF TRANSPORTATION DREW FORD FERGUSON ENTERPRISES INC FLEET SERVICES INC G & A AUTOMOTIVE, INC. HARRIS & ASSOCIATES INC HUNTER'S NURSERY INC JOHN DEERE LANDSCAPES KIMLEY HORN AND ASSOCIATES INC LASER SAVER INC LIBERTY ART WORKS, INC. MASON'S SAW & MINUTEMAN PRESS MJC CONSTRUCTION NAPA AUTO PARTS ONE SOURCE DISTRIBUTORS PEACE OFFICERS RESEARCH PERRY FORD POWERSTRIDE BATTERY CO INC "'3LIC EMP RETIREMENT SYSTEM COUNTY SHERIFFS DEPT SAN DIEGO BMW MOTORCYCLES SDG&E SMART & FINAL SMART SOURCE OF CA LLC WARRANT REGISTER # 52 6/28/2011 DESCRIPTION PINCH PLATE-BUZZY RIDER DELIVERY SERVICES / REDEV LEGAL SERVICES / MAY 2011 REIM/ CASA QUINTA & CASA FAMILIAR ENVIRONMENTAL CONSULT/2/26-4/01/11 MOP# 45725. INK CARTRIDGES/SEC 8 4 CORNER TURKISH TOWELS 25LB/CS NC INFORMATION & OUTREACH PROGRAM MOP# 45707. PAINTING SUPPLIES/NSD MOP# 45742. LAUNDRY SERVICES/NSD FLAGGING SERVICES 5/25/2011 MOP# 68834. PAINTING SUPPLIES/NSD SUPPLIES / POLICE DEPARTMENT ATT SECURE WIRELESS CIRCUIT FOR PD TELECOMMUNICATIONS SERVICE / NC MOP# 64096. SAFETY BOOTS / NSD MOP 47557 AUTO PARTS FLASHBLU-2 128GB FLASH DRIVES / MIS CITATION REV GC76000-761000 OR 76101 MAIL PROCESSING SVC/3/16/11-4/15/11 MOP 72654 AUTO PARTS APPEALS, ON-LINE ACCESS TO TICKETS HIGHWAY LIGHTING MOP 49078 AUTO PARTS MOP 45723 SEWER MATERIALS MOP 67804 AUTO PARTS MOP 72655 R&M AUTO EQUIPMENT 8TH ST. SMART GROWTH, SERVICES 5/31 MOP 45719 PLANTING MATERIAL MOP 69277 PIPES, VALVES, FITTINGS CObLIDGE AVE. DESIGN SERVICES 5/31 MOP 45725 OFFICE SUPPLIES CUSTOM AXE / NAT'L CITY / MOLD MOP 45729 MATERIALS & SUPPLIES MOP# 74691. PRINTING / FINANCE INVOICE 5, NC PARK ACCESS UPGRADES MOP 45735 AUTO PARTS MOP 67256 MATERIALS & SUPPLIES PEACE OFFICER RESEARCH ASSOC MOP 45703 R&M AUTO EQUIPMENT MOP 67839 AUTO PARTS SERVICE PERIOD 6-11-3 SHERIFF'S RANGE USE 5/31/2011 R&M CITY VEHICLES GAS & ELECTRIC SERVICE / NUTRITION MOP# 45756. SUPPLIES 1 POLICE MOP# 63845. BUSINESS LICENSE APPL 1/2 CHK NO DATE AMOUNT 242394 6/27/11 389.56 242395 6/28/11 11.45 242396 6/28/11 5,762.50 242397 6/28/11 6,754.45 242398 6/28/11 5,034.83 242399 6/28/11 509.91 242400 6/28/11 322.47 242401 6/28/11 10, 000.00 242402 6/28/11 1,194.73 242403 6/28/11 13.87 242404 6/28/11 44.70 242405 6/28/11 411.05 242406 6/28/11 14,987.46 242407 6/28/11 1,925.53 242408 6/28/11 6,444.50 242409 6/28/11 195.70 242410 6/28/11 34.60 242411 6/28/11 2,413.41 242412 6/28/11 14,667.50 242413 6/28/11 2,319.65 242414 6/28/11 357.59 242415 6/28/11 4,304.23 242416 6/28/11 14,024.72 242417 6/28/11 175.56 242418 6/28/11 238.23 242419 6/28/11 60.56 242420 6/28/11 451.56 242421 6/28/11 18, 226.74 242422 6/28/11 314.83 242423 6/28/11 281.73 242424 6/28/11 1,410.00 242425 6/28/11 130.27 242426 6/28/11 330.00 242427 6/28/11 248.73 242428 6/28/11 326.26 242429 6/28/11 22,087.50 242430 6/28/11 1,241.82 242431 6/28/11 93.12 242432 6/28/11 150.00 242433 6/28/11 1,493.24 242434 6/28/11 473.24 242435 6/28/11 250,633.52 242436 6/28/11 400.00 242437 6/28/11 4,027.67 242438 6/28/11 4,051.37 242439 6/28/11 191.77 242440 6/28/11 1,157.11 PAYEE SWEETWATER AUTHORITY THE LIGHT; ,'iL':>F_ INC THE MCGRAW HILL COMPANIES TOPECO PROD'' JCTS TRAINING II,NO'.ATIONS UNITED PARCEL SERVICE V & V MANUFACTURING VALLEY IND, ::ER1AL SPECIALTIES VERSATL.i. iiv!'JRMATION PRODUCTS WESTF LEX INDUSTRIAL WILLY'S ELECTr1ONIC SUPPLY WOOD & WOOIJ TRISTAR RISK MANAGEMENT SECTION 8 HAPS PAYMENTS PAYROLL Pay period 13 Start Date 5/31/2011 I11TC6R'PORATED WARRANT REGISTER # 52 6/28/2011 DESCRIPTION FACILITIES WATER BILL MOP 45726 AUTO PARTS INV 60926091001 / 60853651001 MOP 63849 AUTO PARTS TMS SOFTWARESUPPORT SUBSCRIPTION UPS SHIPMENT / FINANCE EMPLOYEE RECOGNITION PINS / HR MOP 46453 PLUMBING MATERIAL DIGITAL AUDIO RECORDER / POLICE MOP 63850 AUTO PARTS MOP 45763 MATERIALS & SUPPLIES PROFESSIONAL SVCS APRIL-MAY 2011 MAY 2011 WC REPLENISHMENT Start Date 6/22/2011 End Date 6/13/2011 End Date 6/28/2011 Check Date 6/22/2011 2/2 CHK NO DATE AMOUNT 242441 6/28/11 25,605.20 242442 6/28/11 579.98 242443 6/28/11 1,702.37 242444 6/28/11 10.98 242445 6/28/11 600.00 242446 6/28/11 41.33 242447 6/28/11 528.66 242448 6/28/11 836.89 242449 6/28/11 739.31 242450 6/28/11 247.93 242451 6/28/11 725.97 242452 6/28/11 5,307.00 34904476 6/28/11 41,576.80 A/P Total 478,821.66 6,340 " 946,240.96 GRAND 'TOTAL $ 1,431,402.82 Certification IN ACCORDANCE WITH SECTION 37202, 37208, 372059 OF THE GOVERNMENT CODE, WE HEREBY CERTIFY TO THE ACCURACY OF THE DEMANDS LISTED ABOVE AND TO THE AVAILABILITY OF FUNDS FOR THE PAYMENT THEREOF AND FIJRTHER THAT THE ABOVE CLAIMS AND DEMANDS IIAVE BEEN AUDITED AS REQUIRED BY LAW. FINANCE CITY MANAGER FINANCE COMMITTEE RONALD J. MORRISON, MAYOR -CI IAIRMAN ALEJANDRA SOTELO-SOLIS, VICE -MAYOR ROSALIE ZARATE, MEMBER LUIS NATIVIDAD, MEMBER MONA RIOS, MEMBER I HEREBY CERTIFY THAT THE FOREGOING CLAIMS AND DEMANDS WERE APPROVED AND THE CITY TREASURER IS AUTHORIZED TO ISSUE SAID WARRANTS IN PAYMENT THEREOF BY THE CITY COUNCIL ON THE 19`h OF JULY, 2011. AYES NAYS ABSENT CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19, 2011 AGENDA ITEM NO. 27 EM TITLE: A Public Hearing to consider the report required by California Health & Safety Code Section 5473 et seq pertaining to collection of sewer charges on the tax roll directing the City Clerk to file said report with the San Diego County Auditor and directing the Director of Public Works to certify the "Sewer Service Charge Fund" with the San Diego County Auditor. Sewer service fees will not increase for Fiscal Year 11-12. PREPARED BY: Joe Smith DEPARTMENT: Public PHONE: 336-4587 APPROVED BY: EXPLANATION: See attached Explanation FINANCIAL STATEMENT: ACCOUNT NO. Not applicable ENVIRONMENTAL REVIEW: Not applicable. ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Hold Public Hearing BOARD / COMMISSION RECOMMENDATION: Not applicable. ATTACHMENTS: Ianation )ort is on file in the Office of the City Clerk Explanation: Pursuant to Ordinance No. 2003-2225, the City Council adopted a three-year sewer service fee rate adjustment schedule commensurate with projected Regional wastewater treatment cost increases and elected to have sewer service charges collected on the tax roll, as authorized by California Health and Safety Code Section 5473 et seq. California Health and Safety Code Section 5473 requires a written report to be prepared each year and filed with the City Clerk, which should contain a description of each parcel of real property receiving sewer services, and the amount of the charges for each parcel for the year. California Health and Safety Code Section 5473.4 provides that on or before August 10 of each year, the City Clerk shall file with the County Auditor a copy of the report prepared pursuant to Section 5473 with a statement endorsed on the report over his signature that the report has been adopted by the City Council, and the Auditor shall enter the amounts of the charges against the respective lots or parcels of land as they appear on the current assessment roll. By approving the proposed resolution, the City Council, would for FY2011-2012, adopt the report required by California Health and Safety Code Section 5473, direct the report to be kept on file in the Office of the City Clerk, and direct the City Clerk to file a copy of the report with the County Auditor. The City of National City sewer service fees are monthly flat rates, based on water consumption for domestic users. For commercial and industrial users, the monthly charges are variable and based on water consumption and on the strength of the sewage they generate (low, medium or high). The table below summarizes the three-year rate plan adopted by the City in 2003. National City Sewer Service Rates for FY 2004, 2005, and 2006 Residential Flat Rates (per month) FY 2004 FY 2005 FY 2006 Monthly Monthly Monthly Single Family Residence Multi -Family Residence Mobile Homes Commercial Variable Rates (per HCF) Suspended Solids/BOD Strength Category Commercial - Low Commercial - Medium Low Commercial - Medium Commercial - Medium High Commercial - High Suspended Solids/BOD Strength Range <200 PPM 201 to 280 PPM 281 to 420 PPM 421 to 660 PPM > 600 PPM $ 22.08 $ $ 19.00 $ $ 13.50 $ $ 2.85 $ $ 3.09 $ $ 3.84 $ $ 4.60 $ $ 5.75 $ 28.08 $ 32.08 23.00 $ 25.00 17.50 $ 19.50 2.89 $ 3.03 3.13 $ 3.28 3.90 $ 4.09 4.68 $ 4.90 5.86 $ 6.12 It should be noted the City of National City sewer service fee have not increased since FY06 and is below the Regional average fee charge for this service. The table below is an illustration of the fees charged by the major METRO Agency members. Monthly Rates are based on single family residence charged for 10 HCF (Hundred Cubic Feet). Agency 2009-10 2010-11 2011-12 Del Mar $84.40 $95.05 $96.45 Padre Dam MWD $53.22 $56.14 $61.49 Poway $66.99 $49.96 $42.72 San Diego $47.62 $54.49 $54.49 La Mesa $40.97 $40.97 $40.97 Chula Vista $37.25 $44.43 $44.43 Otay Water District $32.70 $32.70 $35.67 Alpine $34.38 $34.83 $34.83 Lemon Grove $37.32 $40.18 $40.18 National City $32.08 $32.08 $32.08 Imperial Beach $35.58 $37.53 $37.53 Coronado $31.64 $31.64 $31.68 Lakeside $31.67 $31.67 $31.68 Spring Valley $28.00 $28.00 $28.00 El Cajon $25.90 $25.90 $25.90 Wintergardens $18.00 $18.00 $18.00 Average Maximum Minimum $ 41.63 $ 96.45 $ 18.00 The cost of wastewater collection, transportation and treatment had increased dramatically in the years prior to 2003. The sewer service rate plan adopted by the City Council in 2003 provided sufficient revenues to cover these costs and those of the NPDES permit compliance activities necessary to eliminate the amount of urban run-off pollution that enters our storm drain system. These rates are still applicable today baring any unforeseen changes. Currently, the Participating Agencies through the METRO Wastewater Joint Power Authority, along with the City of San Diego that operates, maintains and administers the regional facilities that transport, treat and dispose of the area's effluent is working on maintaining the current waiver for secondary treatment at the Point Loma Treatment Plant, the completion of all past years audits and a revised Sewage Transportation Agreement. The City of National City, as a Participating Agency and interested party, is actively working with METRO/JPA and San Diego staff to assure that any proposed increases are justifiable and fair to all member Agencies. Staff will keep you informed regarding this potentially significant issue as the study progresses. CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19, 2011 AGENDA ITEM NO. 28 411kM TITLE: Public Hearing — Weed Abatement, Council to hear report findings regarding abated properties Parcel Numbers 5560820700 - 910 Melrose Street and 5571803200 - 844 Palm Avenue held over from meeting of June 21st, 2011; per National City Municipal code 9.12.020 — public nuisance declared — Weeds and other flammable materials. (Fire) PREPARED BY: Robert Hernandez/Fire Marshal DEPARTMENT: Fir PHONE: 336-4552 APPROVED BY: EXPLANATION: In accordance with National City Municipal Code, Chapter 9.12, a report of the proceedings and an accurate account of the cost of abating the nuisance on each separate property shall be filed with the City Council. Notice of the public hearing shall be served in the same manner as summons in a civil action in accordance with Article 3 (commencing with Section 415.10) of Chapter 4 of Title 5 of Part 2 of the Code of Civil Procedure. Pursuant to National City Municipal Code, Section 1.36.100, the City Council shall consider the Report and Account at the time set for the confirmation of costs hearing, together with any objections or protests by the responsible person or other interested persons. The responsible person or other interested persons may present a written or oral protest or objection to the report and account. At the conclusion of the hearing, the City Council shall by resolution either approve the Report and Account as submitted, or as modified or corrected by the City Council. FINANCIAL STATEMENT: ACCOUNT NO. 001-12124-3561'. ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED;,,,,,_ Fi ance APPROVED: IS STAFF RECOMMENDATION: City Council by resolution approves the report and Account as submitted or as modified or corrected by City Council. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: ipa d Charges Special Assessments - Please see Exhibit "A" surement Criteria — Please see Exhibit "B" City of National City Weed Abatement Program 2011/2012 Fixed Charge Special Assessments 144 A°s edArYi,G;4 1 �*AdglresS Owner IYllfaibAddress City St Zip_ 554 112 15 00 $3,340.46 2nd St National City Arregui Family Trust 0418-94 3140 E 2nd St National City CA 91950 554 170 13 00 $930.24 614 S Harbison Ave National City 91950 Otero Delia 614 S Harbison Ave National City CA 91950 556 082 07 00 $862.72 910 Melrose St National City 91950 Ruiz David L 910 Melrose St National City CA 91950 557 180 32 00 $17,604.16 844 Palm Ave National City 91950 Hinton William E 844 Palm Ave National City CA 91950 557 180 37 00 $2,078.20 805 N Ave National City 91950 Li Zhlwei 1498 13th St #193 Imperial Beach CA 91932 557 351 17 00 $1,392.36 M Ave National City Carolino Construction Corp 3035 E 8th St National City CA 91950 557 351 18 00 $1,561.38 M Ave National City Carolino Construction Corp 3035 E 8th St National City CA 91950 557 351 19 00 $1,561.38 M Ave National City Carolino Construction Corp 3035 E 8th St National City CA 91950 557 351 20 00 S1,561.38 M Ave National City Carolino Construction Corp 3035 E 8th St National City CA 91950 557.351 21 00 $1,561.38 M Ave National City Carolino Construction Corp 3035 E 8th St National City CA 91950 557 351 22 00 $1,561.38 M Ave National City Carolino Construction Corp 3035 E 8th St National City CA 91950 557 351 23 00 $1,223.32 M Ave National City Carolino Construction Corp 3035 E 8th St National City CA 91950 557 351 24 00 $1,223.32 M Ave National City Carolino Construction Corp 3035 E 8th St National City CA 91950 557 351 25 00 $1,223.32 M Ave National City Carolino Construction Corp 3035 E 8th St National City CA 91950 558 132 19 00 $1,207.46 2611E 16th St National City 91950 Wallace Grace R 2613 E 16th St National City CA 91950 Total Parcels: 15 Total Assess: $38,892.46 EXHIBIT "A" b;t B 5m; f.0 CO',� g��ami5 pi u s4 A; cr. b1 R0 . ,'Va-C' l l 61 A - �'� fit;, -{ 1 `2- 3 ct 7 TV IJ J i .., CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19, 2011 AGENDA ITEM NO. 29 M TITLE: Staff Report an ABx1 26 and ABx1 27 Seeking Council Direction on Whether to Participate in the "Alternative Voluntary Redevelopment Program" and Ordinance of the City Council of the City of National City Authorizing the City of National City to Participate in the Alternative Voluntary Redevelopment Program, Pursuant to Part 1.9 of Division 24 of the California Health and Safety Code. Subiect to Certain Conditions and Reservations. PREPARED BY: Claudia G. Silva PHONE: Ext. 4222 EXPLANATION: Please see attached staff report. DEPARTMENT: C. Attorney APPROVED BY: FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Introduce ordinance. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: posed ordinance Staff Report on ABx1 26 and ABx1 27 Seeking Council Direction on Whether to Participate in the "Alternative Voluntary Redevelopment Program" And Proposed Ordinance for Introduction Authorizing City Participation in "Alternative Voluntary Redevelopment Program" Introduction This agenda item asks the Council to provide direction and take action, if appropriate, regarding whether to continue as a redevelopment agency (the Community Development Commission of the City of National. City) or allow the agency to dissolve. This issue arises because of the State's two budget trailer bills that were adopted as part of the State budget for this fiscal year. Recommendation Staff recommends the City Council take the following action: 1. Approve the continuation of the redevelopment agency, which includes agreement to pay the State approximately $4.8 million this year and approximately $1.1 million annually thereafter, because the benefits provided to the community from the redevelopment agency could not continue in the absence of a redevelopment agency and staff has identified potential funding streams to make the annual payments; and, 2. Introduce the Ordinance Authorizing City Participation in the "Alternative Voluntary Redevelopment Program" established by ABx 1 27. Background As part of the Legislature's enactment of the State's FY 2012 budget, two bills (ABx1 26 and ABx1 27) were passed which significantly affect redevelopment agencies. ABx1 26 dissolves redevelopment agencies and ABx1 27 allows redevelopment agencies to continue in existence upon a city's promise to pay the State money. ABx1 26 immediately limits agencies' ability to operate and completely dissolves all redevelopment agencies effective October 1, 2011. ABx1 27 allows redevelopment agencies to avoid dissolution by having sponsoring jurisdictions (i.e., the City of National City) pass an ordinance opting into an alternative voluntary redevelopment program which requires substantial annual contributions to the state for local schools and special districts. The current rough estimate for the City of National City for these annual contributions is estimated at $4.8 million the first year and roughly $1.1 million thereafter. The State anticipates that if all California redevelopment agencies opted to join the alternative voluntary redevelopment program it would contribute $1.7 billion towards meeting the State's fiscal year 2012 deficit. Currently, ABx1 26, which is the dissolution statute, is in effect. Thus, the agency is very limited in what actions it may take. l Staff Report: Alternative Voluntary Redevelopment Program As you may recall from the staff presentation on July 5, 2011, as of June 29, 2011, ABx1 26 prohibits the Community Development Commission of the City of National City (Agency) from taking any of the following actions: - Incurring indebtedness - Making loans or grants - Entering into contracts Amending existing agreements, obligations, or commitments Renewing or extending leases or other agreements Transferring funds out of the Low and Moderate Income Housing Fund - Disposing of or transferring assets - Approving any program, project, or expenditure Should the City decide to not participate in the alternative voluntary redevelopment program (discussed further below), then these prohibitions would remain in place until the agency expires on October 1, 2011. Thereafter, as of October 1, 2011, a successor agency would be established. The City would become the successor agency, unless it decides otherwise. The successor agency would be overseen by an oversight board. The oversight board would be overseen by the State Department of Finance. The primary purpose of the successor agency would be to continue paying agency financial obligations (enforceable obligations) and dispose of its assets. Moreover, the oversight board has the discretion to direct the successor agency to accelerate the disposal of assets and terminate agreements early. The monies realized as a result of these actions would be transferred to the County for disbursement to the taxing entities. As an alternative to dissolution, the State adopted ABx1 27. ABx1 27 allows agencies to opt into continued existence and cease the application of ABx1 26 (dissolution). ABx1 27, as described earlier, is a "pay to play" type statute. ABx1 27 is self -described as the "alternative voluntary redevelopment program." A city decides whether it wants to participate in the voluntary program. If the City of National City decides it wants to participate in the alternative voluntary redevelopment program, then the City would need to adopt an ordinance exercising such option. A proposed ordinance for introduction is part of this agenda item, should the Council decide to move forward with continuing the redevelopment agency. It should be noted that the ordinance contains a reservation of rights, given the likely legal challenges to the legislation. While an agency is a separate legal entity, it is the City that would adopt the ordinance agreeing to make the annual payments. Thereafter, the City and the agency would enter into an agreement to transfer a portion of agency tax increment to the City, in an amount not to exceed the annual remittance amount. If the City decides to participate in the alternative voluntary redevelopment program, then staff would return with such an agreement for Council and agency approval. By August 1, 2011, the State Department of Finance must publish the FY 2012 amounts which must be paid by each redevelopment agency that chooses to participate in the alternative voluntary redevelopment program. The deadline to appeal is August 15, 2011. The legislation 2 Staff Report: Alternative Voluntary provides that an appeal can be made only if there is an error in the payment calculations or if the agency's tax increment revenue has declined ten percent or more as a percentage of its tax allocation debt service and interest payments. As tax allocation debt has increased this year, if the City decides to participate in the voluntary alternative redevelopment program, staff would seek City Council and/or CDC authorization to move forward with an appeal. Whether this appeal will successfully lower the assessed payment is unknown at this time. Discussion ABx1 26 does not allow redevelopment agencies to continue to function, except for under certain narrow parameters, until October 1, 2011. The agency would cease to exist as of October 1, 2011. ABx1 27 is the only current method to continue operations. Thus, the City must decide whether to allow the agency to dissolve, as provided in ABx 1 26, or to allow the agency to continue existence in compliance with the payments due under ABx 1 27. The following provides an overview of the effects of each decision. Dissolution Should the agency not continue under ABx1 27, then pursuant to ABx 126, the following would occur as of October 1, 2011: All fund balances, including the recently issues bond proceeds, would be turned over to a successor agency, minimally approximated at $40 Million as of June 30, 2011. In addition, fund balances for multiyear capital projects would be at risk of transfer. Any capital projects not funded through the recently issued 2011 Tax Allocation Bond or under an existing contractual obligation would not move forward. Those projects include: o Gateway Retail Center (Sudberry-Lowe's) o Senior Village Expansion and Enhancement o Marina Gateway Improvements o Purple Cow Housing Project o WI-TOD Phase 2 o Casa de Salud Improvements o Playhouse on Plaza o Plaza Boulevard Widening o Highland Avenue Safety Improvements o Street and Community Corridor Improvements o Park and Facility Improvements All affordable housing tax increment ($ 2 Million annually) would no longer be received, 3 Staff Report: Alternative Voluntary Redevelopment Program except to pay off existing debt. All agency properties would be turned over to the successor agency for probable sale. The agency owned properties have an estimated value of $10 million. Proceeds from any property sale, not already part of an enforceable agreement, would be transmitted to the County for distribution to the taxing entities. No new economic development, infrastructure or other projects could be initiated. The City would see an increase in property taxes to the general fund of approximately $1 million however the tax increment fund currently funds $3.4 million ($1.75 personnel, $1.65 maintenance and operations) in operating expenses in support of redevelopment activities that would have to be absorbed by another fund or eliminated. Participation in the Voluntary Alternative Redevelopment Program While the alternative voluntary redevelopment program payments may severely impact the agency's ability to operate, the existing bond proceeds and any new property tax revenues will remain under the control of the Community Development Commission, as opposed to the control of an oversight board. In addition, the agency's affordable housing funds would remain intact and available to fund local affordable housing activities. Adopting an ordinance opting into the ABx1 27 legislation allows the agency to continue its redevelopment functions. Staff has identified the following possible funding sources to pay the annual amounts. The estimated $4.8 million continuation payment in FY 11-12 is an obligation of the City but could be backfilled by several redevelopment funding sources. Low/Mod Housing Funds can be used only for the FY11-12 payment and can contribute approximately $2 million. Shifting budgeted capital funding from tax increment to bond proceeds can contribute an additional $800,000..Using capitalized interest from the bond proceeds to make debt service payments on the bonds, frees up tax increment funds that can contribute approximately $1.3 million. Existing fund balances and operating transfers will make up the remaining FY 11-12 continuation payment if needed. The ongoing payment in subsequent years estimated at $1.1 million can be backfilled from tax increment revenues made available from capitalized interest debt service payments and operating savings. As stated earlier, we do not yet know whether the estimated amount due would be reduced after an appeal. However, the State Director of Finance is directed to issue a final determination after an appeal of the actual required payment amount in mid -September. Once the final number is known, staff can return with a complete report on the scheduled payments and the impacts on future agency finances and programming along with a budget adjustment for the initial payment. Options for Council Consideration and Direction 1. Allow redevelopment to cease as provided in ABx1 26. 2. Decide to participate in ABx1 27's alternative voluntary redevelopment program. 3. If the decision is to participate in the alternative program, then staff suggests introduction of the ordinance accompanying this item. 4 Staff Report: Alternative Voluntary ORDINANCE NO. 2011 — AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE CITY OF NATIONAL CITY TO PARTICIPATE IN THE ALTERNATIVE VOLUNTARY REDEVELOPMENT PROGRAM, PURSUANT TO PART 1.9 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE, SUBJECT TO CERTAIN CONDITIONS AND RESERVATIONS WHEREAS, the City Council of the City of National City ("City") approved and adopted the Redevelopment Plan for the National City Redevelopment Project ("Redevelopment Plan") covering certain properties within National City (the "Project Area"); and WHEREAS, the Community Development Commission of the City of National City ("Agency") is engaged in activities to execute and implement the Redevelopment Plan pursuant to the provisions of the California Community Redevelopment Law (Health and Safety Code § 33000, et seq.) ("CRL"); and WHEREAS, since adoption of the Redevelopment Plan, the Agency has undertaken redevelopment projects in the Project Area to eliminate blight, to improve public facilities and infrastructure, to renovate and construct affordable housing, and to enter into partnerships with private industries to create jobs and expand the local economy; and WHEREAS, over the next few years, the Agency hopes to implement a variety of redevelopment projects and programs to continue to eliminate and prevent blight, stimulate and expand the Project Area's economic growth, create and develop local job opportunities, and alleviate deficiencies in public infrastructure, to name a few; and WHEREAS, as part of the 2011-2012 State budget bill, the California Legislature has recently enacted, and the Governor has signed, companion bills ABx1 26 and ABx1 27, requiring that each redevelopment agency be dissolved unless the community that created it enacts an ordinance committing it to making certain payments; and WHEREAS, ABx1 26 prohibits agencies from taking numerous actions, effective immediately and purportedly retroactively, and additionally provides that agencies are deemed to be dissolved as of October 1, 2011; and WHEREAS, ABx1 27, which will be codified as Part 1.9 of the California Health and Safety Code ("Part 1.9"), provides that a community may participate in an "Alternative Voluntary Redevelopment Program," in order to enable a redevelopment agency within that community to remain in existence and carry out the provisions of the CRL, by enacting an ordinance agreeing to remit specified annual amounts to the County auditor -controller in compliance with Part 1.9 of Division 24 of the Health and Safety Code ("Part 1.9"); and WHEREAS, ABx1 27 requires the City to notify the County Auditor -Controller ("County"), the State Controller, and the State Department of Finance on or before November 1, 2011, that the City will comply with Part 1.9; and WHEREAS, ABx1 27 authorizes the City to enter into an Agreement with the Agency, whereby the Agency may transfer a portion of its tax increment to the City for the purpose of financing certain activities within the City's redevelopment areas, as specified in Part 1.9; and S WHEREAS, ABX1 27 imposes specified sanctions on the City in the event that the City fails to make the required remittances, as determined by the Director of Finance; and WHEREAS, under the threat of dissolution pursuant to ABx1 26, and upon the contingencies and reservations set forth herein, the City shall make the Fiscal Year 2011-2012 community remittance, currently estimated to be Four Million Eight Hundred Thousand Dollars ($4,800,000), based on 2008-2009 data and subject to change, as well as the subsequent annual community remittances as set forth in Part 1.9; and WHEREAS, the City reserves the right to appeal the California Director of Finance's determination of the Fiscal Year 2011-12 community remittance, as provided in Health and Safety Code Section 34194; and WHEREAS, City understands and believes that an action challenging the constitutionality of ABx1 26 and ABx1 27 will be filed on behalf of cities, counties and redevelopment agencies; and WHEREAS, the City reserves the right, regardless of any community remittance made pursuant to this Ordinance, to challenge the legality of ABx1 26 and ABx1 27; and WHEREAS, the City Council does not intend, by enactment of this Ordinance, to waive any constitutional and/or legal rights by virtue of the enactment of this Ordinance and, therefore, reserves all of its rights under Laws to challenge the validity of any or all provisions of ABx1 26 and ABx1 27 in any administrative or judicial proceeding and/or repeal this Ordinance, without prejudice to the City's right to recover any amounts remitted under Part 1.9; and WHEREAS, while the City currently intends to make these community remittances, they shall be made under protest and without prejudice to the City's right to recover such amounts and interest thereon, to the extent there is a final determination that ABx1 26 and ABx1 27 are unconstitutional; and WHEREAS, the City Council does not intend, by enactment of this Ordinance, to pledge any of its general fund revenues or other assets, to make the remittance payments contemplated by Part 1.9, it being understood by the City Council that any remittance payments will be funded solely from Agency funds and/or assets transferred to the City in accordance with Part 1.9; and WHEREAS, to the extent a court of competent jurisdiction enjoins, restrains or grants a stay on the effectiveness of the Alternative Voluntary Redevelopment Program's payment obligation of ABx1 26 and ABx1 27, the City shall not be obligated to make any community remittance for the duration of such injunction, restraint, or stay; and WHEREAS, the City Council does not intend, by enactment of this Ordinance to waive any rights of appeal regarding the amount of any remittance established by the Department of Finance, as provided in Part 1.9; and WHEREAS, all other legal prerequisites to the adoption of this Ordinance have occurred. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY DOES ORDAIN AS FOLLOWS: Alternative Voluntary Redevelopment Program Ordinance No. 2011 — Section 1. Recitals. The Recitals set forth above are true and correct and incorporated herein by reference. Section 2. Participation in the Alternative Voluntary Redevelopment Program. In accordance with Health and Safety Code Section 34193, and based on the Recitals set forth above, the City Council hereby determines that the City shall comply with the provisions of Part 1.9 of Division 24 of the Health and Safety Code, as enacted by ABx1 27. Section 3. Authorization to Continue Agency. Subject to Sections 5 and 6, herein, the City hereby commits to comply with and make the remittances required by Part 1.9, and authorizes the continuation of the Agency in accordance with the provisions of ABx1 27. Section 4. Implementation. The City Council hereby authorizes and directs the City Manager to take any action and execute any documents necessary to implement this Ordinance, including but not limited to notifying the San Diego County Auditor -Controller, the Controller of the State of California, and the California Department of Finance of the adoption of this Ordinance and the City's agreement to comply with the provisions of Part 1.9 of Division 24 of the Health and Safety Code, as set forth in ABx1 27. Section 5. Reservation of Rights. Neither the adoption of this Ordinance, nor the acknowledgment of or references to any provisions of ABx1 26 and ABx1 27, nor the City's payment of any remittances contemplated by ABx1 27, shall be deemed to be, nor are they intended as, an acknowledgment of the validity of ABx1 26 and ABx1 27, and the City reserves all rights in its sole discretion to challenge the validity of any or all provisions of ABx1 26 and ABx1 27 in any administrative or judicial proceeding and/or repeal this Ordinance, without prejudice to the City's right to recover any amounts remitted under Part 1.9. Section 6. Effect of Stay or Determination of Invalidity. City shall not make any community remittance in the event a court of competent jurisdiction either grants a stay on the enforcement of ABx1 26 and ABx1 27 or determines that ABx1 26 and ABx1 27 are unconstitutional and therefore invalid, and all appeals therefrom are exhausted or unsuccessful, or time for filing an appeal therefrom has lapsed. Any community remittance shall be made under protest and without prejudice to the City's right to recover such amount and interest thereon in the event that there is a final determination that ABx1 26 and ABx1 27 are unconstitutional. If there is a final determination that ABx1 26 and ABx1 27 are invalid, this Ordinance shall be deemed to be null and void and of no further force or effect. Section 7. Additional Understandings and Intent: It is the understanding and intent of the City Council that, once the Agency is again authorized to enter into agreements under the CRL, the City will enter into an agreement with the Agency as authorized pursuant to Section 34194.2, whereby the Agency will transfer annual portions of its tax increment to the City in amounts not to exceed the annual community remittance payments to enable the City, directly or indirectly, to make the annual remittance payments. The City Council does not intend, by enactment of this Ordinance, to pledge any of its general fund revenues or assets to make the remittance payments. Section 8. CEQA. The City Council finds, under Title 14 of the California Code of Regulations, Section 15378(b)(4), that this Ordinance is exempt from the requirements of the California Environmental Quality Act ("CEQA") in that it is not a "project", but instead consists of the creation and continuation of a governmental funding mechanism for potential future projects and programs, and does not commit funds to any specific project or program. The City Council, Alternative Voluntary Redevelopment Program Ordinance No. 2011 — therefore, directs that a Notice of Exemption be filed with the County Clerk of the County of San Diego in accordance with CEQA Guidelines. Section 9. Custodian of Records. The documents and materials that constitute the record of proceedings on which these findings are based are located at the City Clerk's office located at 1243 National City Boulevard, National City, CA 91950. Section 10. Enactment. This Ordinance shall only be deemed as "enacted" within the meaning of Part 1.9 upon (i) adoption of this Ordinance and (ii) the legally effective date of ABx1 26 and ABx1 27. Section 11. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The City Council hereby declares that it would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof. Section 12. Certification; Publication. The City Clerk shall certify to the adoption of this Ordinance and cause it, or a summary of it, to be published once within fifteen (15) days of adoption in a newspaper of general circulation printed and published within the City of National City, and shall post a certified copy of this Ordinance, including the vote for and against the same, in the Office of the City Clerk in accordance with Government Code Section 36933. Section 13. Effective Date. This Ordinance shall become effective thirty (30) days from its adoption. PASSED and ADOPTED this day of 2011. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia G. Silva City Attorney Ron Morrison, Mayor Alternative Voluntary Redevelopment Program Ordinance No. 2011 — CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19, 2011 AGENDA ITEM NO. 30 EM TITLE: Ordinance of the City Council of the City of National City amending Chapter 10.52 of the National City Municipal Code pertaining to regulations for the use of municipal parks, playgrounds and golf courses to allow dogs to be off -leash in City designated Dog Parks, and establishing Dog Park regulations PREPARED BY: Claudia G. Silva DEPARTMENT: PHONE: 4222 APPROVED BY: EXPLANATION: Section 10.52.010 of the Municipal Code is amended to allow dogs off -leash in City de' rd "dog parks". Currently, dogs are prohibited to be "off -leash" in parks. The proposed amendment would maintain the general prohibition, but provide an exception for dogs to be "off leash" in City designated dog parks. Sections 10.52.020 and 10.52.030 are being added to provide regulations for the use of a dog park, and making it a misdemeanor to violate those regulations. ty At y FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Adopt ordinance. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: )osed ordinance ORDINANCE NO. 2011 — 2363 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AMENDING CHAPTER 10.52 OF THE NATIONAL CITY MUNICIPAL CODE PERTAINING TO REGULATIONS FOR THE USE OF MUNICIPAL PARKS, PLAYGROUNDS AND GOLF COURSES TO ALLOW DOGS TO BE OFF -LEASH IN CITY DESIGNATED DOG PARKS, AND ESTABLISHING DOG PARK REGULATIONS BE IT ORDAINED by the City Council of the City of National City that the National City Municipal Code is amended by amending Title 10 as follows: Section 1. Chapter 10.52 of the National City Municipal Code is hereby amended in its entirety to read as follows: Chapter 10.52 REGULATIONS FOR THE USE OF MUNICIPAL PARKS, PLAYGROUNDS AND GOLF COURSES Sections: 10.52.010 Prohibited activities. 10.52.020 Dog park regulations. 10.52.030 Enforcement. 10.52.010 Prohibited activities. No person shall engage in any of the following acts within the premises of any city park, playground, golf course, or recreation facility: A. Transport, carry, or discharge any firearm, weapon, air gun, slingshot, or explosive of any kind. B. Use archery equipment, hit golf balls, play baseball, football, soccer, cricket or any other game of ball, in a designated picnic area. C. Bring, ride, allow, or permit any bovine animal, sheep, goat, swine, or horse to enter or occupy the premises. D. Bring or permit any dog, other than a seeing -eye dog, to enter or occupy the premises, unless the same is kept on a leash adequate to control such dog at all times. This prohibition against dogs off -leash does not apply to dogs within a "leash free" area, or City designated "dog park". E. Take, kill or maltreat any bird or animal, either wild or domestic. F. Pick, dig, remove, carry away, or willfully damage or destroy park improvements, soil, plants or trees on the premises. G. Drive or ride a motorcycle, automobile, or any other motorized vehicle on any walkway or turfed area. H. Willfully damage or vandalize any building or structure located upon the premises. Except for pedestrians or joggers, enter or occupy the premises between the hours of 9:00 p.m. and 7:00 a.m. without the consent of the city council, the city manager, or their authorized agents. J. Enter or trespass in any area, building or facility which is fenced and locked. K. Drive or operate any motor vehicle in any park in excess of fifteen miles per hour. L. Park any automobile or vehicle in any park at any place other than designated parking areas. Places where parking is permitted shall be designated by appropriate signs. M. Wash, perform maintenance on, or make other than emergency repairs upon any automobile, motorcycle or self -driven vehicle in any park. N. Make a fire in any park other than in stoves, pits or braziers provided by the city. O. Except for charcoal lighter, bring into any park any material which will, if spilled or spread, be injurious to the turf or plant growth. P. Throw or dispose of any bottles, tin cans, broken glass, paper, clothes, cast iron, rubbish, soil, or other debris of any kind, except in approved containers provided by the city. Q. Willfully remove, damage or destroy any athletic equipment provided by the city. Normal wear and tear is acceptable R. Move or remove from one location to another any part or parts of field equipment. S. Open or close any valve pertaining to the water mains or sprinkler system, or to expose or interfere with any gas pipe, hydrant, pitcock, sewer, catch basin, backflow preventer, or other similar device in any park. T. Indulge in indecent or riotous conduct or language, or to otherwise make noises in such a manner as to disturb any picnic, meeting, concert or activity. U. Operate a public address system without prior written permission of the city. This prohibition shall not include the use of small portable radios, as long as such radios are operated at such a volume as not to disturb other persons present in the park. V. Willfully disturb or interfere with any employee of the city acting within the scope of his or her employment, or to disturb or interfere with any spectator or participant in any event or activity conducted in any park, or to enter any park for the purpose of committing any such disturbance or interference. W. Camp or lodge overnight in or upon any park, unless prior written permission is obtained from the city. X. Sell refreshments, foodstuffs or novelties in any park or on any street immediately adjacent thereto without the prior written permission of the city council. Y. Practice, carry on, conduct or solicit for any trade, occupation, business or profession without the written permission of the city council. Z. Play upon any tennis court wearing shoes other than tennis -type shoes. AA. Use any tennis court for tennis tournaments, team practices, or other special events of any kind without the prior written permission of the City. BB. Wade or swim in any pool except when supervised. CC. Use any park facility for which a charge is made without first having paid the fee requested and having received the required permit. DD. Remove any authorized or official sign indicating that any park facility or equipment is reserved. EE. For any male person to use any toilet set apart for women, and for any female person to use any toilet set apart for men' provided, that this prohibition shall not apply to children accompanied by their father, mother or guardian. FF. Climb onto any building or structure not designated for such activity. GG. Tear down, deface or destroy any sign posted pursuant to the above sections. HH. Except in any golf course, possess a lighted or burning tobacco product or tobacco -related product, including but not limited to cigars, cigarettes and pipes; use, including chewing of, tobacco or tobacco -related products; dispose of any lighted or unlighted tobacco or tobacco -related product in any place other than a designated waste disposal container. Ordinance No. 2011-2363 2 Park, Playground & Golf Course NCMC 10.52 Regulations - Dog Parks 10.52.020 Dog park regulations. Dog owners or person with custody, care charge, control, or possession of a dog shall comply with the following: A. The presence of a dog in a City designated dog park shall constitute implied consent of the person either owning or controlling the dog to the regulations imposed by the City. A dog park means an area within a City park specifically designated by the City as an area for dogs to be "off -leash". B. Dog parks shall be used during park hours only. C. Dogs must be keep on a leash going to and from the dog park. D. A person shall not have more than three (3) dogs within a dog park. E. Dog leashes, choke chains, prong collars, and head collars (Haiti, Gentle Leader, etc.) must be removed before dogs run loose in the dog park. F. Dog owners or person with custody, care charge, control, or possession of a dog shall not abandon or otherwise leave any off -leash dog unattended or unsupervised within a dog park G. Dog owners must clean up after their dog(s) using closeable bags and dispose of the waste in a trash receptacle. H. Dogs must be under vocal control and not cause a public nuisance, safety hazard or harass people, other dogs or wildlife. Aggressive behavior by a dog(s) is not permitted. Dogs must be removed from the dog park at the first sign of aggression. J. The presence of a dog in a dog park shall constitute a waiver of liability, on behalf of the person either owning or controlling the dog, to the benefit of the City of National City, as well as an agreement and undertaking by the person either owing or controlling the dog to protect, indemnity, defend, and hold harmless the City of National City for any injury or damage caused by the dog. K. In the event of a dog bite that results in injury requiring medical care to a person or another dog, dog owners shall provide to the injured person or owner or custodian of the injured dog, at the time of the injury, his or her full name, correct dog license information, telephone number, mailing address, and driver's license number. L. Dogs must have a current dog license as required by Municipal Code Section 18.12.010, , and have up-to-date vaccinations. A current dog license may serve as proof of compliance. M. Under no circumstances shall a sick dog that has been diagnosed with a contagious disease, or that shows signs of illness be allowed in any dog park. N. Female dogs in estrus (heat cycle) are not allowed within a dog park. O. Food, pet treats and dog food are not allowed inside the dog park. P. Dog owners or person with custody of a dog shall not permit their dog(s) to dig holes. Q. A dog park shall not be used as a children's play -area. No children under the age of 16 are permitted in the dog park unless accompanied by an adult and are closely supervised. 10.52.030 Enforcement. This Chapter may be enforced by any official or officer who is charged by the Municipal Code with code enforcement authority. Violation of any provision of this Chapter shall be punishable as a misdemeanor, and shall carry the penalties as prescribed in Chapter 1.20 of the National City Municipal Code. --- Signature Page to Follow --- Ordinance No. 2011-2363 3 Park, Playground & Golf Course NCMC 10.52 Regulations - Dog Parks PASSED and ADOPTED this 19th day of July, 2011. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia G. Silva City Attorney Ordinance No. 2011-2363 4 Park, Playground & Golf Course NCMC 10.52 Regulations - Dog Parks CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19, 2011 AGENDA ITEM NO, 31 EM TITLE: Resolution adopting the report required by Health & Safety Code Section 5473 et seq pertaining to the collection of sewer charges on the tax roll directing the City Clerk to file said report with the San Diego County Auditor and directing the Director of Public Works to certify the "Sewer Service Charge Fund" with the San Diego County Auditor. PREPARED BY: Joe Smith PHONE: 336-4587 EXPLANATION: See attached Explanation DEPARTMENT: P blic APPROVED BY: FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: Not applicable ENVIRONMENTAL REVIEW: Not applicable. ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Adopt Resolution BOARD / COMMISSION RECOMMENDATION: Not applicable. ATTACHMENTS: solution ___rlanation Report is on file in the Office of the City Clerk Explanation: Pursuant to Ordinance No. 2003-2225, the City Council adopted a three-year sewer service fee rate adjustment schedule commensurate with projected Regional wastewater treatment cost increases and elected to have sewer service charges collected on the tax roll, as authorized by California Health and Safety Code Section 5473 et seq. California Health and Safety Code Section 5473 requires a written report to be prepared each year and filed with the City Clerk, which should contain a description of each parcel of real property receiving sewer services, and the amount of the charges for each parcel for the year. California Health and Safety Code Section 5473.4 provides that on or before August 10 of each year, the City Clerk shall file with the County Auditor a copy of the report prepared pursuant to Section 5473 with a statement endorsed on the report over his signature that the report has been adopted by the City Council, and the Auditor shall enter the amounts of the charges against the respective lots or parcels of land as they appear on the current assessment roll. By approving the proposed resolution, the City Council, would for FY2011-2012, adopt the report required by California Health and Safety Code Section 5473, direct the report to be kept on file in the Office of the City Clerk, and direct the City Clerk to file a copy of the report with the County Auditor. The City of National City sewer service fees are monthly flat rates, based on water consumption for domestic users. For commercial and industrial users, the monthly charges are variable and based on water consumption and on the strength of the sewage they generate (low, medium or high). The table below summarizes the three-year rate plan adopted by the City in 2003. National City Sewer Service Rates for FY 2004, 2005, and 2006 Residential Flat Rates (per month) FY 2004 FY 2005 FY 2006 Monthly Monthly Monthly Single Family Residence Multi -Family Residence Mobile Homes Commercial Variable Rates (per HCF) Suspended Solids/BOD Strength Category Commercial - Low Commercial - Medium Low Commercial - Medium Commercial - Medium High Commercial - High Suspended Solids/BOD Strength Range <200 PPM 201 to 280 PPM 281 to 420 PPM 421 to 660 PPM > 600 PPM $ 22.08 $ $ 19.00 $ $ 13.50 $ $ 2.85 $ $ 3.09 $ $ 3.84 $ $ 4.60 $ $ 5.75 $ 28.08 $ 23.00 $ 17.50 $ 32.08 25.00 19.50 2.89 $ 3.03 3.13 $ 3.28 3.90 $ 4.09 4.68 $ 4.90 5.86 $ 6.12 It should be noted the City of National City sewer service fee have not increased since FY06 and is below the Regional average fee charge for this service. The table below is an illustration of the fees charged by the major METRO Agency members. Monthly Rates are based on single family residence charged for 10 HCF (Hundred Cubic Feet). Agency 2009-10 2010-11 2011-12 Del Mar $84.40 $95.05 $96.45 Padre Dam MWD $53.22 $56.14 $61.49 Poway $66.99 $49.96 $42.72 San Diego $47.62 $54.49 $54.49 La Mesa $40.97 $40.97 $40.97 Chula Vista $37.25 $44.43 $44.43 Otay Water District $32.70 $32.70 $35.67 Alpine $34.38 $34.83 $34.83 Lemon Grove $37.32 $40.18 $40.18 National City $32.08 $32.08 $32.08 Imperial Beach $35.58 $37.53 $37.53 Coronado $31.64 $31.64 $31.68 Lakeside $31.67 $31.67 $31.68 Spring Valley $28.00 $28.00 $28.00 El Cajon $25.90 $25.90 $25.90 Wintergardens $18.00 $18.00 $18.00 Average Maximum Minimum $ 41.63 $ 96.45 $ 18.00 The cost of wastewater collection, transportation and treatment had increased dramatically in the years prior to 2003. The sewer service rate plan adopted by the City Council in 2003 provided sufficient revenues to cover these costs and those of the NPDES permit compliance activities necessary to eliminate the amount of urban run-off pollution. that enters our storm drain system. These rates are still applicable today baring any unforeseen changes. Currently, the Participating Agencies through the METRO Wastewater Joint Power Authority, along with the City of San Diego that operates, maintains and administers the regional facilities that transport, treat and dispose of the area's effluent is working on maintaining the current waiver for secondary treatment at the Point Loma Treatment Plant, the completion of all past years audits and a revised Sewage Transportation Agreement. The City of National City, as a Participating Agency and interested party, is actively working with METRO/JPA and San Diego staff to assure that any proposed increases are justifiable and fair to all member Agencies. Staff will keep you informed regarding this potentially significant issue as the study progresses. RESOLUTION NO. 2011 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ADOPTING THE REPORT REQUIRED BY CALIFORNIA HEALTH AND SAFETY CODE SECTION 5473, ET SEQ., PERTAINING TO THE COLLECTION OF SEWER SERVICE CHARGES ON THE TAX ROLL, DIRECTING THE CITY CLERK TO FILE SAID REPORT WITH THE SAN DIEGO COUNTY AUDITOR, AND DIRECTING THE PUBLIC WORKS DIRECTOR TO CERTIFY WITH THE SAN DIEGO COUNTY AUDITOR THE "SEWER SERVICE CHARGE FUND" WHEREAS, pursuant to Ordinance No. 2003-2225, the City Council adopted a three-year sewer service fee rate adjustment schedule commensurate with projected regional wastewater treatment cost increases, and elected to have sewer service charges collected on the tax roll, as authorized by California Health and Safety Code Section 5473 et seq.; and WHEREAS, California Health and Safety Code Section 5473 requires a written report to be prepared each year and filed with the City Clerk, which report shall contain a description of each parcel of real property receiving sewer service and the amount of the sewer service charges for each parcel for the year; and WHEREAS, California Health and Safety Code Section 5473.4 provides that on or before August 10 of each year, the City Clerk shall file with the Auditor a copy of the report prepared pursuant to Section 5473 with a statement endorsed on the report over his signature that the report has been adopted by the City Council, and the Auditor shall enter the amounts of the charges against the respective lots or parcels of land as they appear on the current assessment roll. NOW, THEREFORE, BE IT RESOLVED that for FY 2011-2012, the City Council of the City of National City hereby adopts the Report required by California Health and Safety Code Section 5473, et seq., directs that said report be kept on file in the office of the City Clerk, and directs the City Clerk to file with the San Diego County Auditor a copy of the Report, with a statement that the Report has been adopted by the City Council. BE IT FURTHER RESOLVED that the Public Works Director is hereby directed to certify with the San Diego County Auditor the establishment of Fund No. 6065-5, which shall be described as "Sewer Service Charge", and that said fund is hereby approved. PASSED and ADOPTED this 19th day of July, 2011. Ron Morrison, Mayor ATTEST: APPROVED AS TO FORM: Michael R. Dalla, City Clerk Claudia G. Silva City Attorney CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19, 2011 AGENDA ITEM NO. 32 EM TITLE: Resolution of the City of National City Authorizing the Approval of Weed Abatement Public Hearing Findings and rescinding Resolution No: 2011-132. (Fire) PREPARED BY: Robert Hernandez/Fire Marshal DEPARTMENT: PHONE: 336-4552 APPROVED BY: EXPLANATION: On June 21, 2011, a public hearing was held as required pursuant to Chapter 1.36.100 of the Municipal Code, wherein the City Council considered the objectives and protests of the owners of parcels by interested parties. This resolution will approve the Report and Account as submitted. The approved costs of the abatements will be liens upon the respective lots or premises. Due to protests regarding the properties identified as APN 5560820700, located at 910 Melrose Street, and APN 5571803200, located at 844 Palm Avenue, which were specified in Exhibit "A" of Resolution 2011-132, adopted on June 21, 2011, that Resolution is being rescinded. There was a continuation and re -hearing on July 5, 2011, regarding the two subject parcels. The public hearing on July 5, 2011, was continued due to new clarifying language and handouts that were being presented to the respective property owners and or managers of the listed estates. The proposed resolution incorporates all the parcels subject to weed abatement liens, including the two formerly tested parcels. Pursuant to NCMC Section 1.36.110, a copy of this resolution shall be served on the responsible son, pursuant to the procedures set forth in the NCMC Section 1.36.030, no later than fifteen days after the date of aaoption. FINANCIAL STATEMENT: APPROVED .�� F)nance ACCOUNT NO. 001-12124-3561 ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: MIS STAFF RECOMMENDATION: Approve the Weed Abatement Public Hearing Findings and rescind Resolution No: 2011-132. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: solution RESOLUTION NO. 2011 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING THE WEED ABATEMENT PUBLIC HEARING FINDINGS, CONFIRMING ASSESSMENT OF COSTS OF WEED ABATEMENT, AND RESCINDING RESOLUTION NO. 2011-132 WHEREAS, the Director of Emergency Services filed with the City Clerk an assessment, attached hereto as Exhibit "A", for weed abatement work done under and pursuant to National City Municipal Code Chapter 1.36; and WHEREAS, as required by Ordinance No. 2081, the City Clerk has given notice of the filing of the assessment and of the time for a hearing by the City Council, and an affidavit of posting such notice has been made and is on file in the office of the City Clerk; and WHEREAS, on June 21, 2011, the City Council held a hearing at which the report and account, and all written appeals, protests, or objections, if any, were duly presented, read, and considered, and all persons desiring to be heard thereon were heard, and the City Council gave all persons present an opportunity to be heard in respect to any matter relating to said work, to any act or determination of the Director of Emergency Services, or to any matter relating to said work or the assessment or the proceedings, therefore; and WHEREAS, based on the testimony of interested parties regarding two particular properties identified as APN 5560820700 and APN 5571803200, the City Council requested additional information regarding these two properties, and informed the interested parties they would have an additional opportunity to be heard; and WHEREAS, on July 5, 2011, a public hearing was scheduled regarding the two properties identified as APN 5560820700 and APN 5571803200, but the public hearing was continued to July 19, 2011, to provide the property owners more time to review the additional information related to the report and account; and WHEREAS, on July 19, 2011, the City Council held an additional hearing regarding the two properties identified as APN 5560820700 and APN 5571803200, at which the report and account, and all written appeals, protests, or objections, if any, were duly presented, read, and considered, and all persons desiring to be heard thereon were heard, and the City Council gave all persons present an opportunity to be heard in respect to any matter relating to said work, to any act or determination of the Director of Emergency Services, or to any matter relating to said work or the assessment or the proceedings, therefore; and • WHEREAS, all such persons desiring to be heard have been heard by the City Council; and WHEREAS, in order to provide clarity and ease of reference of having only one resolution identifying the affected properties when filing the resolution with the County Auditor, Resolution 2011-132, adopted on June 21, 2011, is being rescinded; and Resolution No. 2011 — Page Two NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City does hereby find, resolve, determine, and order as follows: That said hearings have been duly held; that each and every step of the proceedings prior to and including the hearings has been duly and regularly taken; that the City Council is satisfied with the correctness of the assessment, the proceedings and all matters relating thereto, and all protests, objections, or appeals be and the same are hereby overruled and denied, and the City Council does hereby confirm said proceedings and said assessment; that the City Council approve the report and account as submitted; and that the City Clerk is directed to file with the County Auditor of the County of San Diego, a certified copy of this Resolution. PASSED and ADOPTED this 19th day of July, 2011. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia G. Silva City Attorney CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19, 2011 AGENDA ITEM NO. 33 EM TITLE: Resolution of the City Council of the City of National City Approving the Memorandum of Understanding (MOU) between the City and the National City Municipal Employees' Association. PREPARED BY: Stacey Stevenson DEPARTMENT: PHONE: 336-4308 APPROVED B EXPLANATION: Reso es The labor agreement between the City of National City and the National City Municipal Employees' Association (NCMEA), represented by the Service Employees' International Union expired December 31, 2009. NCMEA represents the City's clerical/fiscal, engineering/planning/inspection, library/community service, police support, park maintenance and public works positions. On March 24, 2011, City representatives and NCMEA representatives began meeting and conferring in good faith for the purpose of negotiating a new agreement. On June 22, 2011, after five negotiating sessions, City representatives and NCMEA reached a tentative three year agreement that includes employee concessions intended to address pension reform and provide general fund savings. With NCMEA's members having voted to ratify the agreement, staff recommends City Council approval. A summary of the as is included as an attachment. FINANCIAL STATEMENT: ACCOUNT NO. Fiscal year Savings Fy 11/12 $267,000 Fy 12/13 $309,000 Fy 13/14 $314,000 ENVIRONMENTAL REVIEW: N/A APPROVED. APPROVED: Fi ance MIS ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt the resolution BOARD / COMMISSION RECOMMENDATION: N/A fACHMENTS: Summary of Tentative Agreement Resolution RESOLUTION NO. 2011 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF NATIONAL CITY AND THE NATIONAL CITY MUNICIPAL EMPLOYEES' ASSOCIATION WHEREAS, the labor agreement between the City of National City and the National City Municipal Employees' Association ("NCMEA") expired December 31, 2009; and WHEREAS, on March 24, 2011, City representatives and NCMEA representatives began meeting and conferring in good faith for the purpose of negotiating a new agreement; and WHEREAS, on June 22, 2011, after five negotiating sessions, conducted pursuant to California Government Code Section 3500, et. seq., City representatives and the NCMEA reached a tentative three-year agreement that includes employee concessions intended to address pension reform and provide general fund savings; and NOW, THEREFORE, BE IT RESOLVED as follows: Section 1. The City Manager is hereby authorized to enter into a Memorandum of Understanding (MOU) between the City of National City and the National City Municipal Employees' Association for the period of July 1, 2011 through June 30, 2014. Said Memorandum of Understanding shall be on file in the Office of the City Clerk, and reference is made thereto for all particulars contained therein. Section 2. The City Manager is hereby directed to reflect the compensation plan as set forth in the subject MOU in the final budget for Fiscal Years 2011-2012, 2012-2013, and 2013- 2014. PASSED and ADOPTED this 19th day of July, 2011. Ron Morrison, Mayor ATTEST: Michael R. Della, City Clerk APPROVED AS TO FORM: Claudia G. Silva City Attorney Terms of the Tentative Agreement for a 3-Year MOU Between the City of National City and the National City Municipal Employees Association 1. Compensation: a. 2011 — one-time before tax retention incentive payment equal to 4% of the employee's salary step at the time of payment. Payment shall be made in the first full pay period after the effective date of this agreement. • MEA employees must have at least one full consecutive year of service in an MEA classification in order to be eligible. • MEA employees with less than one year of service at the effective date of this Memorandum of Understanding shall receive their 4% retention incentive in the pay period after reaching their one year anniversary. The City shall have no obligation to pay a retention incentive to any employee who does not reach his/her one year anniversary with the City. • The employee may choose to contribute part or all of the retention incentive into their 457 deferred compensation plan account or convert (all or part of) their incentive into vacation hours. • The retention incentive shall not be reported as compensation to PERS b. 2012 — a cost of living adjustment of 3% for all classifications covered under the Memorandum of Understanding effective the first full pay period following July 1, 2012. 2. PERS: a. Increase employee pre-tax contribution by 5% to a total of 8% effective July 1, 2011 b. Add a second tier, amending the retirement formula from the highest one year calculation to a three year average for employees hired on or after the change is executed by PERS through a contract amendment. The City agrees to request an actuarial analysis from CalPERS for the purpose of determining the costs related to employer paid member contributions and the difference in the cost to the City for employee paid employee contributions and employee paid employer contributions. After receipt of the analysis, the City and MEA agree to discuss the costs associated with an employee paying either the employee or employer contribution issue. (Chapter 19) 3. Health: Beginning with the first benefits year after ratification, the City will contribute toward the cost of employee health care at the current contribution level plus fifty percent (50%) of the premium increase (if any) to the lowest cost health and dental plans. Each year thereafter, the City's contribution will equal the previous year's contribution level plus fifty percent (50%) of the premium increase for the lowest cost health and dental plans. (Chapter 15) 4. Furloughs: Two week closure each contract year for non -essential personnel to include 40 hours of unpaid work furlough to be deducted over the 26 pay periods of each fiscal year beginning with the first full pay period in July 2011. Employees may use accrued leave balances (vacation, comp time, floating holidays) for time not covered by unpaid furlough or designated holidays. The City facilities shall close except for emergency services, including Fire, Police and other personnel deemed emergency services essential personnel. Any employee subject to the furlough that is required to work in the performance of services deemed to essential during the furlough period shall be credited with corresponding furlough leave hours. The following proposed calendar is based on the City's current 4/10 workweek. A 'change in the workweek schedule would result in a modification of the proposed calendar. 2011 Dec 19-21 furlough days Dec 22 holiday (Christmas Eve) Dec 26 holiday (Christmas Day) Dec 27 furlough day Dec 28-29 (accrued leave) Jan 2 holiday (New Years Day) 2012 Dec 24 holiday (Christmas Eve) Dec 25 holiday (Christmas Day) Dec 26-27 & 31 furlough days Jan 1 holiday (New Years Day) Jan 2 furlough day Jan 3 (accrued leave) 2013 Dec 23 furlough day Dec 24 holiday (Christmas Eve) Dec 25 holiday (Christmas Day) Dec 26, 30 & 31 furlough days Jan 1 holiday (New Years Day) Jan 2 (accrued leave) If at the time of the holiday closure in any given year an employee does not have enough accrued leave (vacation, compensatory time, floating holidays and/or banked furlough hours) to cover the necessary "accrued leave" days, they will be allowed to receive an advance of accrued leave to be earned in future pay periods within the same fiscal year to cover any shortage. (Chapter 3) 5. Holidays: Replacement of language contained in Chapter 2, Section 4 (attached) for the purposes of clarification only. 2 6. Vacation: During the term of this agreement, all MEA members on a career basis meeting the eligibility criteria defined below may convert a minimum of twenty (20) hours and a maximum of eighty (80) hours of their accumulated vacation time payable not later than December of each year. The City shall attempt to process these requests prior to the Thanksgiving holiday. a. Calendar year 2011 - in order to convert accrued vacation hours: • Employees must use a minimum of 46 vacation hours during the eligibility period and have at least 74 hours "on the books" before and after the request. • Employees must submit a written request to the Human Resources Department to convert vacation hours to pay on or before November 1, 2011. • The eligibility period is defined as the first pay period in December to the last pay period in October. b. Calendar years 2012 and 2013 - in order to convert accrued vacation hours: • Employees must use a minimum of 50 vacation hours during the eligibility period and have at least 80 hours "on the books" before and after the request. • Employees must submit a written request to the Human Resources Department to convert vacation hours to pay on or before November 1 of each year. • The eligibility period is defined as the first pay period in November to the last pay period in October. (Chapter 5) 7. Reinstatement of provisions from the Memorandum of Understanding between the City of National City and the National City Municipal Employees' Association covering the period January 1, 2007 through December 31, 2009 as follows: a. Article 1, Implementation, Section 1 b. Article 27, Management Rights c. Article 28, Obligation to Support d. Article 29, Agreement, Modification, Waiver e. Article 30, Duration of MOU (with appropriate date revisions) 8. Preparation and issuance of a joint press release announcing the terms of the agreement. Language must be agreed to by both parties (City and SEIU). 3 Chapter 2, Section 4 A. In the event a fixed holiday (as defined in Section 1) falls on and is observed on an employee's regular day off: 1. If the employee is not required to work, such employee shall be granted a floating holiday. 2. If the employee is required to work the employee shall receive: a) pay at the time and a half rate for hours worked on the holiday; and b) floating holiday hours equal to the number of hours actually worked. B. In the event a fixed holiday (as defined in Section 1) falls on an employee's regular work day: 1. If the employee is not required to work, such employee shall be compensated at straight time equal to the number of hours the employee would have been assigned to work, not to exceed eight (8) hours. 2. If the employee is required to work the majority (over half) of his/her shift between 12:00 a.m. and 11:59 p.m. on the observed fixed holiday, the -employee shall receive one of the following at the option of the employee: a) pay at the time and a half rate for hours worked; or b) straight time and floating holiday hours equal to the number of hours actually worked. Exception: For the fixed holidays of Christmas Day, New Year's Day, day of July 4th, and Thanksgiving Day, employees shall receive: a) pay at the time and a half rate for hours worked on the holiday with a minimum of two (2) hours of pay; and b) eight hours paid holiday time at straight time. November XX, 20XX (Thanksgiving) 20000 — 0600 8 hours holiday pay 10 hours worked at 1.5 times Thanksgiving is an "Exception" holiday November XX, 20XX (Day after Thanksgiving) 20000 — 0600 10 hours straight time 10 floater hours Fixed holiday December 24, 20XX (Christmas Eve) 20000 — 0600 10 hours straight time 10 floater hours Fixed holiday December 25, 20XX (Christmas Day) 20000 — 0600 8 hours holiday pay 10 hours worked at 1.5 times Christmas Day is an "Exception" holiday New Years Day is an "Exception" holiday January 1, 20XX (New Years Day) 20000 — 0600 8 hours holiday pay 10 hours worked at 1.5 times C. When an employee is absent on annual leave, sick leave or compensating time off, a fixed holiday immediately preceding, immediately following or wholly within such leave period shall be recorded as a holiday and not as a day of leave. 4 D. If a fixed holiday occurs on a Saturday, the City will observe the holiday on the preceding working day. If the fixed holiday falls on Sunday, the following work day will be observed as the holiday, except as noted in Article -- (holiday closure article) E. Should the City shift the observed holiday to a day other than the actual holiday, City employees working schedules outside of the standard Monday through Friday will continue to observe the actual holiday and be compensated according to time worked on the actual holiday as outlined above. Employees in this situation will be notified of the appropriate time card notations in advance of the holiday. 5 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19, 2011 OM TITLE: AGENDA ITEM NO. 34 Resolution of the City Council of the City of National City Modifying the Contribution Rates to the Public Employees' Retirement System by Eliminating the City's Contribution and Increasing to Eight Percent the Member Contribution Paid by the City of National City's Miscellaneous Employees Represented by the National City Municipal Employees' Association (NCMEA) PREPARED BY: 'Cilia Munoz, HR Technician DEPARTMENT: ;; esources PHONE: 336-43091 APPROVED EXPLANATION: On July 19, 2011, the City Council approved a Memorandum of Understanding (M• i between the City of National City and the National City Municipal Employees' Association (NCMEA) for the period July 1, 2011 through June 30, 2014. The terms of the MOU included an amendment to Article 19, Public Employees' Retirement System (PERS). Since January 2010, the City has contributed five percent (5%) of the employee's eight percent (8%) member contribution, with the employees contributing the other three percent (3%). As amended, NCMEA employees have agreed to pay an additional five percent (5%) of the employee contribution effective July 1, 2011. As such, NCMEA employees will assume responsibility for the full employee contribution effective fiscal year 2011/2012. To effect this MOU provision, pursuant to Government Code Section 20691, the City Council must amend the contract between the Board of Administration of PERS and the City Council by adopting a resolution specifying Iplan change. Therefore, staff seeks a resolution to eliminate the Employer Paid Member Contribution to PERS for miscellaneous employees represented by the National City Municipal Employees' Association. FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: Savings for FY 2011-2012 for the additional PERS pick-up is approximately $367,000. ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: ance s STAFF RECOMMENDATION: Recommend approval of resolution., BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: Solution RESOLUTION NO. 2011 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY MODIFYING THE CONTRIBUTION RATES TO THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM BY ELIMINATING THE CITY'S CONTRIBUTION AND INCREASING TO EIGHT PERCENT THE MEMBER CONTRIBUTION PAID BY THE CITY OF NATIONAL CITY'S MISCELLANEOUS EMPLOYEES, REPRESENTED BY THE MUNICIPAL EMPLOYEES' ASSOCIATION EFFECTIVE JULY 1, 2011 WHEREAS, the City Council of the City of National City has the authority to implement Government Code Section 20691; and WHEREAS, the City Council has a written labor policy or agreement which specifically provides for the normal member contributions to be paid by the employer; and WHEREAS, one of the steps in the procedures to implement Section 20691 is the adoption by the City Council of a resolution to commence said Employer Paid Member Contributions (EPMC); and WHEREAS, the City Council has identified the following conditions for the purpose of its election to pay EPMC: 1. This benefit shall apply to all employees of the miscellaneous employees, represented by the National City Municipal Employees; Association. 2. The benefit shall consist of paying 0% of the normal member contributions as EPMC. 3. The effective date of this Resolution shall be July 1, 20101 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby elects to pay Employer Paid Contributions as set forth above. PASSED and ADOPTED this 19th day of July, 2011. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia G. Silva City Attorney RESOLUTION NO. 2011 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY PASSED and ADOPTED this 19th day of July, 2011. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia G. Silva City Attorney CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT �EETING DATE: July 19, 2011 AGENDA ITEM NO. 35 ITEM TITLE: Authorizing the issuance of a Request for Proposals (RFP) for Investment Management Services for the City of National City and the Community Development Commission; and request for appointment of two members of the City Council to participate in the selection of firm(s) for these services. PREPARED BY:. Leslie Deese, Asst. City Manager DEPARTMENT: City Manager PHONE: 336-4240 t-= jv--APPROVED BY: EXPLANATION: See attached Staff Report FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: City Council approve the RFP for Investment Management Services, and if desired, appoint two members of the City Council to participate in the selection of firm(s) to provide investment management services for the City of National City and the Community Development Commission. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: ' Staff Report Draft Request for Proposal for Investment Management Services 3. City Council Policy #203 (Attachment A) 4. Agreement (Attachment B) • Authorizing the Issuance of a Request for Proposals (RFP) for Investment Management Services for the City of National City and the Community Development Commission; and request for Appointment of Two Members of the City Council to participate in the Selection of Firm(s) for these Services Staff Report: The City of National City and the National City Community Development Commission (CDC) (collectively referred to as "City") have historically managed its own funds using investment pools and short to medium term securities. Over the years, the City's investment balance has grown to a point where the City can now invest in more long term instruments and improve the current performance of its investments. Today's dire economy has forced us to consider different ways of how we invest City funds. For example, in 2007, total investment earnings for all funds at 5.25% yielded $2,346,415 compared to 2011 investment earnings for all funds at 0.4% yielding $438,636 to date. Furthermore, utilizing the services of a professional investment management firm allows city staff to assume other critical finance related responsibilities. The City is seeking proposals from interested firms in providing investment management services for its investments portfolio. The combined value of the portfolio is approximately $58 million of various fund types, which is currently placed between the Local Agency Investment Fund (LAIF) and other low risk securities. This amount fluctuates depending on expenditures, such as payroll and other day-to-day operations. To assist in determining a recommended amount of funds in which to invest, staff will complete a cash flow analysis to coincide with the RFP timeline. The attached RFP seeks the services of up to two highly qualified investment management firms to provide investment management, investment advisory and related services to the City. The RFP is provided to the City Council for review and approval prior to its release. If approved, the RFP will be sent to several investment management firms that have contacted the City and will be posted on heavily trafficked websites such as the California Society of Municipal Finance Officers (CFSMO) and California Municipal Treasurers Association (CMTA). A City selection committee recommended to be comprised of two Councilmembers, the City Treasurer, the City's Financial Advisor and designees from the City Manager's Office and Finance Department will evaluate the proposals and bring forth a recommendation to the City Council. Staff anticipates bringing forth a recommendation to the City Council for the award of the RFP on September 20, 2011. • City of National City Request for Proposal For Investment Management Services 1. Background and Overview The City of National City and the National City Community Development Commission (CDC) (collectively "City") are seeking proposals from interested firms in providing Investment Management Services for its investment portfolio. The combined value of the portfolio is approximately $58 million,.which is currently placed between the Local Agency Investment Fund (LAIF) and other low risk securities. The City and CDC have historically managed its own funds using investments pools and short to medium term securities due to its historical cash constraints and inability to invest in long-term investment instruments. Over the years, the City's investment balance has grown to a point where the City can now invest in more long term instruments and improve the current performance of its investments. The City is seeking the services of up to two highly qualified investment management firms to provide investment management, investment advisory and related services to the City. 11. Scope of Services The overall scope of services is to provide investment management services for the investment of the City's designated idle cash reserves in accordance with the parameters and guidance as outlined in the City's adopted Investment Policy. A copy of the City's Investment Policy is included as "Attachment A" to this RFP. The City is interested in obtaining the following minimum level of services from the advisor: 1. Provide management and advisory services for the City's investment portfolio. 2. Develop and implement sound investment strategies that will maximize the portfolio's performance within the parameters of the adopted investment policy and California government codes. 3. Provide technical and fundamental market research including yield curve analysis. 4. Provide credit analysis of investment instruments in the portfolio. 5. Provide monthly investment reports for the portfolio detailing holdings, composition and sector analysis, return, weighted average maturity and daily transaction activity. This includes the ability and flexibility for City staff to electronically access current investment information on the City's investment account as needed. 6. Provide semi-annual and annual performance reports, as needed. 7. Review safekeeping and custodial procedures and agreements. 8. At a minimum, semi-annual presentations to the City Council on the performance of the City's portfolio will be required. 9. Review the City's Annual Investment Policy and make recommendations that are necessary. ill. Requirements for Selection 1. Advisor shall be a registered Investment Advisor as defined and regulated by the Securities and Exchange Commission (SEC) under the Investment Advisers Act of 1940, and be registered in the State of California. 2. Advisor must provide a copy of the Form ADV, Parts I and II. 3. Advisor shall be either completely independent of any financial institution or securities brokerage firm or shall fully and continuously disclose any such relationships with such financial institution and/or securities brokerage firm relevant to the firm's relationship with the City. 4. Advisor shall have a minimum of ten years of experience in managing state/local govemment operating and bond funds. 5. Advisor shall demonstrate understanding of the scope of assignment. 6. Advisor shall be familiar with State investments and reporting requirements. 7. Advisor shall have a minimum of $10 million coverage in errors and omissions insurance or investment advisor professional liability insurance along with any other additional coverage through a fidelity bond and umbrella insurance. 1V. Criteria for Evaluation and Selection Proposal will be evaluated using three (3) sets of criteria. Firms meeting the mandatory criteria will have their proposal evaluated and scored for both understanding of the scope of services to be provided, and experience. The following represents the principal selection criteria, which will be considered during the evaluation process. • 2 • • • 1. Mandatory Elements a. A firm is independent and licensed to practice in California. b. The firm has no conflict of interest with regards to any of the services to be performed by the firm to the City. c. The firm adheres to the instructions in the RFP on preparing and submitting response. 2. Understanding of Scope of Services to be Provided a. Thoroughness of approach to providing investment management and advisory services to the City. b. Understanding the City's investment policy requirements and demonstration of investment strategies for carrying out the objectives of the policy. c. Variety of investment options and portfolios available to the City. 3. Experience a. The quality of the firm's professional personnel to be assigned to the engagement. b. The firm's past and present experience and performance with comparable government agencies. c. Demonstrated knowledge of market factors and economic indicators and their relationships to investment practices. d. Understanding of regulatory requirements for investment of public funds. V. Time Frame for Selection and Implementation 1 Qualifications and experience will be reviewed together with the proposed fee structure to 8etermine which firm will provide the best value to the City. A recommendation will be made to the City Council based on the above criteria for their approval. 2. It is the intent of the City to contract for the services presented herein for a term of three (3) years. The City reserves the right to extend the term of this contract for two (2) additional one year options subject to the satisfactory negotiation terms, including a price acceptable to both the City and the selected firm. 3. Please mail 7 copies of your responses to: Leslie Deese, Assistant City Manager City of National City 1243 National City Blvd. National City, CA 91950 The written proposals are due by no later than 5:00 p.m., on Thursday, August 18, 2011. Proposals postmarked or hand -delivered after the due date will be automatically disqualified. If you have any questions regarding this RFP, please contact Leslie Deese, Assistant City Manager, at (619) 336-4242 or Id eeseanationalcityca.gov. Proposals due August 18, 2011 — by 5:00 p.m. Interview of Finalist(s) Tentative - Week of August 29, 2011 Recommendation to City Council and Award of Contract(s) Tentative - September 20, 2011 VI. Format for Proposal Please format your response to this request in the following order to facilitate comparisons between respondents: A. Organization 1. Describe the brief history of your firm, including date founded, ownership, and any subsidiary relationships or relationships with other financial institutions. Describe experience of the firm in providing investment management services to the public sector. 3. Describe any SEC regulatory censure or litigation related to services the firm provides. 4. State the dollar value of the assets and the number of portfolios the firm has under direct and continuous management, categorized between public sector and other clients. • 4 • • • Public Sector Other Clients Total Number of Portfolio's in Management Asset Value in $1,000's 5. Provide the approximate client turnover using the format below: 2009 2010 YTD 2011 Number of Accounts Gained Asset Value in $1,000's Number of Accounts Lost Asset Value in $1,000's 6. Provide a list of relevant public sector client references, including contact persons and telephone numbers. Relevant list would include clients with similar types of jurisdictions, portfolio size, and investment objectives. 7. Describe the type and amount of insurance coverage the firm maintains with respect to investment management activities. 8. Provide a copy of the firm's most recent audited financial statement. B. Personnel 1. Identify the key personnel who would be directly involved in providing services under the engagement. Describe their relationship with the firm, the role they would play in this engagement, their experience in the investment business, specifically with public sector cash management and investments, their professional certification, and their years of service to the firm. 2. Describe actions taken by the firm to keep its investment professionals informed of developments relevant to government investment managers and investments in general. 3. State whether there has been any turnover of key personnel in the firm or additions to staff in the past year. C. Investment Management Approach and Discipline 1. Describe the firm's overall investment philosophy and approach to this engagement. 2. Describe the primary strategies for adding value to a portfolio. 3. Describe the types of investment research the firm utilizes and the methodology used to recommend investment decisions. 4. Describe the firm's procedure for due diligence review, portfolio review, investment management and client contact. 5. Discuss your assessment of the current market outlook and how your firm plans to provide superior performance for the clients in the years ahead. 6. Describe procedures used to ensure that the portfolio is in compliance with the client's objectives and policies. D. Reporting Capabilities 1. Submit samples of reports which would be provided and describe their frequency. Reports must be prepared in accordance with Generally Accepted Accounting Principles (GAAP) and in compliance with Government Accounting Standards Board (GASB) pronouncements. 2. Describe the frequency and format of the performance reports that would be provided. 3. Describe the types of benchmarks which would be included with the performance reports. E. Fees 1 Provide the fee schedule that would apply to this account. 2 Identify any expenses that would not be covered through this fee structure and would be required in order to implement the firm's program. 3 Is there a minimum annual fee? • 6 • F. Other Considerations 1. Describe any assistance the firm would provide in reviewing custodial and safekeeping arrangements. 2. Describe the type and frequency of credit analysis that would be provided on security issuers and financial institutions. 3. Describe the nature and frequency of meetings the firm would recommend to keep staff informed. 4. Describe expertise and service capabilities that distinguish your firm from others. Rights and Responsibilities The City reserves the right to accept or reject any or all proposals received in response to this request, to negotiate with any qualified source, or to cancel in whole or in part this RFP if it is in the best interest of the City to do so. There is no expressed or implied obligation for the City to reimburse responding firms for any expenses incurred in preparing submittals in response of the RFP. If terms and conditions of the negotiated contract with the successful firms are breached, the firm may be subject to a financial penalty and/or payment withholding. The breach of contract may serve as a basis for termination of the contract. VII. Declarations and Additional Information The City of National City and Community Development Commission Rights Regarding this Invitation The City and the CDC each reserve the right to reject all submittals for any reason without indicating reasons for said rejection. Neither the City nor the CDC accepts any financial responsibility for any costs incurred by respondent. Issuance of this Request for Proposals does not commit the City or the CDC to award a contract, to pay any costs incurred in the preparation of a response to this request, or to procure a contract for services. The City and the CDC each reserve the right to waive any irregularities or informalities in the proposal or proposal process. The City and the CDC each retain the right to reject all submittals. Selection is also dependent upon the negotiation of a mutually acceptable contract with the successful respondent(s). The City reserves the right to cancel, for any or no reason, in part or in its entirety, this RFP, including but not limited to: selection schedule, submittal date, and submittal requirements. Acknowledgement of Amendments Each firm receiving a copy of this shall acknowledge receipt of any amendment to this RFP by signing and returning the amendment with the completed proposal. The acknowledgment must be received by the City of National City at the time and place specified for receipt of proposals. Additional Information Questions regarding this solicitation shall be submitted in writing to: City of National City Attn: Leslie Deese, Assistant City Manager 1243 National City Boulevard National City, CA 91950 Or by fax: (619) 336-4327 or e-mail: Ideese©nationalcityca.gov Respondents/firms are cautioned that any oral statements made that materially change any portion of this RFP are not valid unless subsequently ratified by a formal written amendment to this RFP. No technical questions that may materially change any portion of this RFP will be accepted during the seven calendar days prior to the time and date set for receipt of proposals. Nonconforming Terms and Conditions Any proposal that includes terms and conditions that do not conform to the terms and conditions of this RFP is subject to rejection as non -responsive. The City of National City and/or the CDC reserves the right to permit the respondent to withdraw non- conforming terms and conditions from its proposal prior to action by the City of National City City Council and/or the CDC to award a contract. Late Submissions Any proposal received after the date and time specified for receipt shall not be accepted or considered. Right to Cancel The City and the CDC each reserve the right to withdraw or cancel, for any or no reason, at any time, in part or in its entirety, this RFP, including but not limited to: selection schedule, submittal date, and submittal requirements. Variations in Scope of Work The City and/or the CDC may materially change the scope of services by way of written amendment to this RFP, signed by the City Manager. Such changes may include additions, deletions, or other revisions within the general scope of RFP requirements. The City and/or the CDC may waive the written requirement for a variation in the scope of services if, in the opinion of the City or the CDC, such variation does not materially • 8 • change the item or its performance within parameters acceptable to the City or the CDC. Applicable Laws The contracts awarded shall be governed in all respect by the laws of the State of California, and any litigation related to the contract or this RFP shall be brought in the State of California, with a venue of the San Diego Superior Courts. The firm awarded the contract shall comply with all applicable Federal, State, and local laws and regulations. Public Information All documents received by the City and the CDC are considered public records and will be made available after the RFP selection for public inspection and copying upon request. Compensation The respondent agrees, if selected, that compensation shall remain firm and fixed throughout the term of the contract. Contract for Professional Services The selected firm will be required to sign the attached Standard Professional Services Contract, Attachment B, in substantially similar form, and all other required certifications and documentation within fifteen (15) calendar days of notification of selection. Insurance Requirements All required insurance shall be submitted within fifteen (15) days of notice of selection and prior to the commencement of any work. Failure to provide the insurance certificates within this time frame shall be cause for the proposal to be rejected as non- responsive. The entity/organization selected shall maintain insurance in full force and effect during the entire period of performance under the contract. Failure to do so shall be cause for termination of the contract. All policies must have a thirty (30) day non -cancellation clause giving the City of National City and the CDC thirty (30) days prior written notice in the event a policy is cancelled. At the end of each contract year, the City of National City and the CDC each reserve the right to review insurance requirements and to require more or less coverage depending on the assessment of risk, the entity/organization's past experience, and the availability and affordability of increased liability insurance coverage. Any aggregate insurance limits must apply solely to this contract. If required insurance coverage is provided on a "claims made" rather than "occurrence" form, then the entity/organization shall maintain such insurance coverage for three years after the expiration of the term (and any extensions) of the contract. Independent Contractor Status The respondent agrees, if selected, that he or she shall perform the services as independent contractor(s) and not employee(s) of the City of National City or the CDC. Neither the City nor the CDC shall be considered the employer of respondent. The respondent understands, if selected, the respondent shall have the sole responsibility for deciding the manner and means of providing the services, except as outlined in the final contract and its attachments or exhibits. Indemnification The respondent agrees, if selected, to indemnify and hold harmless the City of National City and the CDC and all their respective officers and employees from any and all liability, claims, costs, including reasonable attorney's fees, demands, damages, expenses, and causes of action as outlined in the contract. Examination of Solicitation The respondent understands that the information provided herein is intended solely to assist the respondent in submittal preparation. To the best of the City's and CDC's knowledge, the information provided is accurate. However, neither the City nor the CDC warrant such accuracy, and any errors or omissions subsequently determined will not be construed as a basis for invalidating this solicitation. Further, by submitting a response to this solicitation, the respondent represents that he or she has thoroughly examined and become familiar with work required in the solicitation and is capable of performing quality work and to achieve the objectives of the City of National City and/or the CDC. • 10 ATIACHNNENT A CITY COUNCIL POLICY TITLE: Investments POLICY NUMBER 203 ADOPTED: October 23, 1990 REVISED Feb 19, 2008 1 Scope This policy applies to all the financial assets accounted for in the City of National City a.nd the Community Development Commission of National City (hereafter referred to collectively as the "City"), Comprehensive Annual Financial Report and any new fund created by the City Council, unless specifically exempted. Purpose The purpose of this document is to identify various policies and procedures that en- hance opportunities for a prudent and systematic investment process and to organize and formalize investment -related activities. Related activities which comprise sound cash management include accurate cash flow projections, control of disbursements, expedient collection of revenues, cost effective banking relations and a short term borrowing program which coordinates investment opportunity with working capital re- quirements. The ultimate goal is to enhance the economic status of the City while protecting its pooled cash resources and to provide broad guidelines to the officer of the City charged with the responsibilities for investment of temporary idle funds. The investment policies and practices of the City are based on state law and prudent money management. AU funds will be invested in accordance with the .City's Invest- ment Policy and the authority governing investments for municipal governments as set forth in the. California Government Code, Sections 53601 through 53659. The in- vestment of bond proceeds are restricted by the provisions of relevant bond docu- ments. Policy Temporarily idle funds will be invested in a manner which will provide the highest in- vestment return with the maximum security while meeting the daily cash flow de- mands of the City and conforming to all state and local statutes governing the invest- ment of idle funds. CITY OF NATIONAL CITY f1 CITY COUNCIL POLICY TITLE: Investments POLICY NUMBER 203 ADOPTED: October 23, 1990 REVISED Feb 19, 2008 2 Standard of Prudence Investments shall be made in context of the "Prudent Investor" rule, which states that: "Investments shall be made with judgment and care, under circum- stances then prevailing, which persons of prudence, discretion and in- telligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived." This standard of prudence shall be applied in the context of managing an overall port- folio. Investment officers acting in accordance with written procedures and the invest- ment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes provided deviations from expectations are reported in a timely fashion and appropriate action is take to control adverse developments. Objective The primary objectives, in priority order, of the City's investment activities shall be: Safety: Safety of principal is the foremost objective of the investment program. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, di- versification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of overall portfolio. CITY OF NATIONAL CITY. CITY COUNCIL POLICY TITLE: Investments POLICY NUMBER 203 ADOPTED: October 23, 1990 REVISED Feb 19, 2008 3 Each investment transaction shall seek to ensure that capital losses are avoided, whether from securities default, broker -dealer default, or erosion of market value. The City shall seek to preserve principal by mitigating the two types of risk: credit risk and market risk. Credit risk: Credit risk, defined as the risk of Toss due to failure of the issuer of a security, shall be mitigated by investing only with issuers whose financial strength and reputation can be verified to be the high- est as rated by nationally known rating agencies, and by diversifying the investment portfolio so that the failure of any one issuer would not unduly harm the City's cash flow. Market risk: Market risk, the risk of the market value fluctuations due to overall changes in the general level of interest rates, shall be miti- gated by (a) structuring the portfolio so that securities mature earlier than or concurrent with the timing of major cash outflows, thus elimi- nating the need to sell securities prior to their maturity; (b) prohibiting the use of IeVerage and margin accounts; and (c) prohibiting the taking of short positions -that is, selling securities which the City does not own. It is explicitly recognized herein, however, that in a diversified portfolio, occasional measured tosses are inevitable, and must be con- sidered within the context of the overall investment return. Liquidity: The City's investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably antici- pated. An adequate portion of the portfolio should be maintained in liquid short term securities which can be converted to cash and guarantee the City's ability to meet operating expenditures. CITY OF NATIONAL CITY 2 CITY COUNCIL POLICY TITLE: Investments POLICY NUMBER 203 ADOPTED: October 23, 1990 REVISED Feb 19, 2008 4 Return on investment: The City's investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the City's investment risk constraints and the cash flow characteristics of the portfolio. The market -average rate of retum is defined as the twelve-month average of the return on the six-month U.S. Treasury Bill. Whenever possible, and con- sistent with risk limitations, as defined herein, and prudent investment princi- ples, the Treasurer shall seek to augment returns above the market- average rate of return. Delegation of Authority Management. responsibility for the investment program is hereby delegated to the Fi- nance Director, who shall establish written procedures for the operation of the invest- ment program consistent with the investment policy. The oversight responsibility for theinvestment program is hereby delegated to the Treasurer who shall monitor and review all investments for consistency withthis investment policy. Procedures should include reference to: safekeeping, repurchase agreements, wire transfer agreements, collateral/depository agreements and banking service contracts. Such procedures shall include explicit delegation of authority of persons responsible for investment transactions. No person mayengagein an investment transaction except as pro- vided under the terms of this policy and the procedures established by the Finance Director. The Finance Director shall be responsible for all transactions undertaken and shall establish a system: of controls to regulate the activitiesof subordinate offi- cials. Ethics and Conflicts of Interest Officers and employees involved in the investment process shall refrain from per- sonal business activity that could conflict with proper execution of the investment pro- gram, or which could impair their ability to make impartial investment decisions. Em- ployees and investment officials shall disclose to the City Manager any material finan- cial interest in financial institutions that conduct business with the City, and they shall CITY OF NATIONAL CITY J CITY COUNCIL POLICY TITLE: POLICY Investments NUMBER 203 ADOPTED: October 23, 1990 REVISED Feb 19, 2008 5 further disclose a.ny large personal financial investment positions that could be re- lated to the performance of the City's portfolio. Employees and officers shall subordi- nate their personal investment transactions to those of the City, particularly with re- gard to the time of purchases and sales. Authorized Financial Dealers and Institutions The Finance Director will maintain a fist of financial institutions authorized to provide investment services. Investments will be placed with SEC registered broker dealers only. In addition, a list will also be maintained of approved security broker/dealers selected. by credit worthiness with at least five years of operation. These may include, "primary" dealers or regional dealers that qualify under Securities & Exchange Com- mission Rule 15C3-1 (uniform net capital rule). No public deposit shall be made ex- cept in a qualified public depository as established by state laws An annual review of the financial condition and registrations of qualified bidders will be conducted by the Finance Directors A current financial statement to be submitted annually is required to be on file for each financial institution: and broker/dealer in, which the City invests. Broker/dealers are also required to provide proof of NASD certification and proof of State registration. The Finance Directorshall provide a current edition of the Investment Policy to all dealers/brokers which have been previously approved to handle- investment transac- tions. Receipt of the policy, including::confirmation that it has been reviewed by per- sons handling the City's account should be acknowledged in writing prior to com- mencing to trade. Authorized and Suitable Investments Security purchases and holdings shall be maintained within statutory limits imposed by the Government Code. The Finance Director will maintain a list of permissible in- vestments and the current limits for each type of investment. ELIGIBLE INVESTMENTS Investments may be made in securities which are permissible investments under the. California Government Code, ..as they now read or may hereafter be amended,` from money in the treasury not required for the immediate necessities of the City. CITY OF NATIONAL CITY 1� CITY COUNCIL POLICY TITLE: • Investments POLICY NUMBER 203 ADOPTED: October 23, 1990 REVISED Feb 19, 2008 6 The following are the criteria for eligible investments: 1. All investments of the City shall have the City of National City or the Commu- nity Development Commission of the City of National City as the registered owner and shall be kept in the custody of the City or by a qualified safekeeping institution. 2. Investments shall be diversified among institutions, types of securities and maturates to maximize safety and yield with changing market conditions. 3. Investment of funds through authorized broker/dealers and in permitted finan- cial institutions: 4. Investments should have a final maturity of 2 years to reduce any interest rate: risk of fund. The "Prudent Rule Investor" shall apply under certain market condi- tions to go beyond 2 years if the instrument has a callable, transferable, negotia- ble feature in which maturity would fall within the limits of the California govern- ment Code section. 5. No derivatives will be allowed in the fund, including inverse floaters, range. notes, interest only strips from Collateralized Mortgage Obligations (CMOs) or any security that could result in zero interest accrual if held to maturity. 6. Permissible Investments as allowed in Government Codes (see Figure 1 on, page 16) 53601, 53635, 53637, 53652 and 43653 a.re as follows: GOVERNMENT OBLIGATIONS consisting of: (a) US Agency Bonds are notes and bonds of Federal Agencies, Government Spon- sored Enterprises and International institutions. Agencies are not the direct obliga- tion of the treasury but involve federal sponsorship or guarantees. (b) U.S. Treasury Obligations which are notes, bonds, bills or certificates of indebted- ness issued by the U.S. Treasury a.nd are direct obligations of the Federal Gov- ernment. BANKER'S ACCEPTANCE is a draft or bill of exchange accepted by a bank or trust company and brokered to investors in the secondary market. The maximum maturity of an issue will be 180 days. Issuers must be at or above the following investment grade from the rating firms of Fitch - F1, Moody's - P1 (A when applicable), Standard CITY OF NATIONAL CITY CITY COUNCIL POLICY TITLE: Investments POLICY NUMBER 203 ADOPTED: October 23, 1990 REVISED Feb 19, 2008 7 and Poor's - Al (A when applicable). The maximum exposure shall be no more than 5% of the portfolio value. COMMERCIAL PAPER are short-term, unsecured obligations issued by firms in the open market. Commercial paper (CP) is generally backed by a bank credit facility, guarantee/bond of indemnity or some other support agreement. The maximum ma- turity of an issue shall be 180 days. Issuers must be at or above the following invest- ment grade from one of these rating firms: Fitch - F1, Moody's P1 (A when applica- ble), Standard and Poor s - Al (A when applicable). The maximum exposure shall be no more than 15% of the portfolio value. MEDIUM -TERM NOTES are defined in Government Code Section 53601 as all cor- porate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state. and operating within the United States. Notes eligible for investment under this subdi- vision shall be rated "A" or better by nationally recognized rating service. Purchases of medium -term notes shall not include other instruments authorized by section 53601 and may not exceed 10% of the portfolio value: NEGOTIABLE CERTIFICATES OF DEPOSIT issued by FDIC insured commercial banks and thrift institutions. Funds are deposited for specified periods of time and earn either a fixed or variable interest rate. The maximum maturity of an issue will be generally be no more than 2 years on new investments. Certain exceptions can be. made upon the discretion of the Finance Director. Issuers must be at or above the following investment grade from the rating firms. Fitch - CD or AN Moody's - P1 or AA, Standard and Poor's - Al or AA. Issue is limited up to $100,000 unless collateral- ized. Collateralized investment issue is limitedto $4,000,000. No more than 30% of the portfolio value can be invested in any combination of negotiated certificates and Certificates of Deposit Account Registry Service (CDARS). CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SERVICE (CDARS). Allows for FDIC coverage of deposits of greater than $100,000 when funds are invested through a "deposit placement service". The CDs are in increments of less than $100,000 to.; ensure that both principal and interest are eligible for full FDIC insurance. No more than 30% of the portfolio value can be invested in any combination of certificates of deposit issued through a private sector deposit placement service and negotiated certificates of deposit. CITY OF NATIONAL CITY /7 CITY COUNCIL POLICY TITLE: Investments POLICY NUMBER 203 ADOPTED: October 23, 1990 REVISED Feb 19, 2008 8 COUNTY OF SAN DIEGO TREASURY POOL. Investment of funds in the County of San Diego Treasury which allows the County Treasurer -Tax Collector to invest local funds through a pooled concept. LOCAL AGENCY INVESTMENT FUND (LAIF) is a pooled investment fund through the State Treasurer. This is a liquid investment that has no maximum maturity. INVESTMENT TRUST OF CALIFORNIA (CaITRUST) is a pooled investment pro- gram through the CaITRUST Joint Powers Authority, authorized by Govemment Code Section 53601(o). CaITRUST provides three pooled account options (Short - Term, Medium -Term and Long -Term). The CaITRUST Short -Term Account provides daily liquidity; the Medium -Term and Long -Term Accounts permit monthly deposits and withdrawals. All of the accounts comply with the limitations and restrictions placed on local investments by the Government Code; and no leverage is permitted in any of the accounts. The Finance Director shall have the authority to adjust the investment portfolio per- cent distribution and maximum maturities depending on certain market conditions in accordance with the terms of the .government codes. INELIGIBLE INVESTMENTS Investments not described herein, including, but not limited to, reverse repurchase agreements, common stocks, and corporate notes and bonds are prohibited from use in this portfolio. Further, investments which exceed five years in maturity require au- thorization by City Council prior to purchase. CITY OF NATIONAL CITY CITY COUNCIL POLICY TITLE: Investments POLICY NUMBER 203 ADOPTED: October 23, 1990 REVISED Feb 19, 2008 9 Collateralization To secure active or inactive deposits, the amount of securities placed with the deposi- tory shall at all times be maintained as .specified in California Government Code 53652 and pursuant to Section 53656 and 53658. The Finance Director is authorized to waive collateral for Certificates of Deposits to the extent of FDIC or FSLIC insur- ance coverage. Marketable securities which are provided under a repurchase agreement shall be held by the City's safekeeping agent at a market value greater than 100%. Request for collateral substitutions and releases are subject. to the Finance Director's ap- proval. Safekeeping and Custody All investments of the City shall have the City of National City or the Community De- velopment Commission of the City of National City as registered owner and shall be held in safekeeping by a third party bank trust department, acting as agent for the City under the terms of a custody agreement. Diversification The City will diversify its investments by security type and institution. With the excep- tion of U.S. Treasury securities, Certificates of Deposit, Certificate of Deposit Account Registry Service (CDARS), and the Local Agency Investment Fund pool, no invest- ment may be made that would, as of the date a particular investment is being consid- ered, result in having more than 15% of the City's total investment portfolio being in- vested in a single security type or with a single financial institution. Non -Discrimination The City shall not knowingly make any investment in any financial institution and bro- ker/dealers that practices or supports, directly or indirectly through its actions, dis- crimination onthe basis of race, religion, color, creed, national or ethnic origin, age, sex, or physical disability. CITY OF NATIONAL CITY CITY COUNCIL POLICY TITLE: Investments POLICY NUMBER 203 ADOPTED: October 23, 1990 REVISED Feb 19, 2008 10 Performance. Standards The investmentportfolio will be designed to obtain a market average rate of return during budgetary and economic cycles, taking into account the City's investment risk constraints and cash flow needs. The basis to be used by the Finance Director whether market yields are being achieved shall be the twelve-month average of the six-month Treasury Bill. Allocation of Investment Income Investment income shall be allocated to the General Fund unless otherwise directed by law. Any statutory allocations to restricted funds shall be made in proportion to the' ratio of .restricted fund balances to the total pooled balances. CITY OF NATTCINAT. CTTY CITY COUNCIL POLICY TITLE: Investments POLICY NUMBER 203 ADOPTED: October 23, 1990 REVISED Feb 19, 2008 11 Reporting The Finance Director shall render a quarterly report to the City Council and City Man- ager showing the following information: 1. 2. 3. 4. 5. 6. 7. Type of investment Name of financial institution Date of purchase Date of maturity Current market value for all securities Rate of interest Purchase price of investment Other data as required by the City A written confirmation of investments shall be issued by the seller or purchaser of the. security confirming the transaction. Items included in the confirmation are the name of security (CUSIP number when applicable), interest rate or coupon, maturity date, purchase or selling price, accrued interest if applicable, settlement date and any addi- tional information fully describing the security. Policy Review This investment policy shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity, and return, and its relevance to current law and financial and economic trends. Amendments to the pol- icy shall be forwarded to the City Manager and the City Council. Review of activities by outside independent auditors is required to make sure that there is conformity to the investment policy and that reconciliation of the Treasurer's accounts has been performed. The auditors should confirm all investment holdings at fiscal year end. CITY OF NATIONAL CITY CITY COUNCIL POLICY TITLE: POLICY Investments NUMBER 203 ADOPTED: October 23, 1990 REVISED Feb 19, 2008 12 Related Policy References Resolution No. 95-62 Resolution No. 15,806 Resolution No. 96-130 Resolution No. 97-110 Resolution No. 98-1,36 Resolution No. 99-130 Resolution No. 00-120 Resolution No. 2002-149 Resolution No. 2004-203 • CITY OF NATIONAL CITY CITY COUNCIL POLICY TITLE: Investments POLICY NUMBER 203 ADOPTED: October 23, 1990 REVISED Feb 19, 2008 13 CITY OF NATIONAL CITY INVESTMENT POLICY Glossary of Terms Arbitrage— Transactions by which securities are brought and sold in different markets at the same time for the sake of the profit arising from a yield difference in the two markets. Bankers Acceptance —A draft or bill or exchange accepted by a bank or trust company. The accepting institution, as well as the issuer, guarantees payment of the bill. Bond Proceeds —The money paid to the issuer by the purchaser or underwriter of a new issue of municipal securities. These monies are used to finance the project or purpose for which the securities were issued and to pay certain costs of issuance as may be provided in the bond. contract. Broker —Someone who brings buyers and sellers together and is compensated for his/her service. Collateralization—Process by which a borrower pledges securities, property, or other de- posits for the purpose of securing the repayment of a loan and/or security. Commercial Paper —An unsecured short-term promissory note issued by corporations, with maturities ranging from 2 to 270 days. County Pooled Investment Funds --The aggregate of all funds from public agencies placed in the custody of the County Treasurer or Chief Finance Officer for investment and reinvest- ment. Coupon —The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value; a certificate attached to a bond evidencing interest due on a payment date. Interest Rate —The annual yield earned on an investment, expressed as a percentage. CITY OF NATIONAL CITY 2-3 CITY COUNCIL POLICY TITLE: Investments POLICY NUMBER 203 ADOPTED: October 23, 1990 REVISED Feb 19, 2008 14 Custodian —A bank or other financial institution that keeps custody of stock certificates and other assets. Dealer —Someone who acts as a principal in all transactions, including buying and selling from his/her own account. Defeased Bond Issues —Issues that have sufficient money to retire outstanding debt when due so that the agency is released from the contracts and covenants in the bond document. Derivative —Securities that are based on, or derived from, some underlying asset, reference date, or index. Government Accounting Standards Board (GASB)--A standard -setting body, associated with the Financial Accounting Foundation, which prescribes standard accounting practices for governmental units. Fannie Mae —Trade name for the Federal National Mortgage Association (FNMA), a United States sponsored corporation. Federal Reserve System —The central bank of the United States consists of a seven mem- ber Board of Governors, 12 regional banks and. 5,700 commercial banks that are members. Federal Deposit Insurance Corporation (FDIC) —Insurance provided to customers of 'a subscribing bank that guarantees deposits to a set limit (currently $100,000) per account. Freddie Mac —Trade name for the Federal. Home Loan Mortgage Corporation (FHLMC), a United States sponsored corporation. Ginne Mae —Trade name for the Government National Mortgage Association (GNMA), a di- rect obligation bearing the full faith and credit of the United States Government. Liquidity —Refers to the ability to rapidly convert an investment into cash. Local Agency Investment .Fund (LAIF) Demand Deposit —Was established by the state to enable treasurers to place idle funds in a pool for investment. Medium -Term Notes — Instruments issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the united States. CITY OF NATIONAL CITY 7 CITY COUNCIL POLICY TITLE: Investments POLICY NUMBER 203 ADOPTED: October 23, 1990 REVISED Feb 19, 2008 15 Sallie Mae — Trade name for the Student Loan Marketing Association (SLMA), a United States sponsored corporation. Treasury Bills — United States Treasury Bills which are. short term, direct obligations of the United States Government issued with original maturities of 13 weeks, 26 weeks and 52 weeks; sold in minimumamounts of $10,000 in multiples of $5,000 above the minimum. Is- sued in book entry form only. T-bills are sold on a discount basis. United States Government Agencies — Instruments issued by various United States Gov- ernment Agencies most of which are secured only by the credit worthiness of the particular agency. Market Risk —Defined as market value fluctuations due to overall changes in the general level of interest rates. Adverse fluctuation possibilities shall be mitigated by limiting the maxi- mum maturity of any one security to five years, structuring the portfolio based on historic and current cash flow analysis, and eliminating the need to sell securities for the sole purpose of short-term speculation mitigates market risk. Market Value —The price at which a security is trading and could presumably be purchased or sold. Maturity —The date the principal or stated value of an investment becomes due and payable. Portfolio —Collection of securities held by an investor. Purchase Date -The date in which a security is purchased for settlement on that or a later date. Rate of Return —The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return. Repurchase Agreement (REPO) —Contractual arrangements between a financial institution or dealer and an investor. The investor puts up their funds for a certain number of days at a stated yield. In retum, they take title to a given block of securities as collateral. At maturity, the securities are repurchased and the funds are repaid with interest. CITY OF NATIONAL CITY a5 CITY COUNCIL POLICY TITLE: Investments POLICY NUMBER 203 ADOPTED: October 23, 1990 REVISED Feb 19, 2008 FIGURE 1 Allowable Investment Instruments Per State Government Code 53601 Applicable to All Local Agencies Investment Type U.S. Treasury Obligations State of California Obligations CA Local Agency Obligations US Agencies Bankers Acceptances Commercial Paper Negotiable Certificates of Deposit Repurchase Agreements Reverse Repurchase Agreements Medium -Term Notes Mutual Funds Money Market Funds Collateralized Bank Deposits Mortgage Pass -Through Securities Time Deposits Pooled Investment Funds Maximum Maturity 5 years 5 years 5 years 5 years 270 days 180 days 5 years 1 year 92 clays 5 years N/A N/A 5 years 5 years 5 years N/A Maximum % Quality of Portfolio Requirements None None None None 40% 15% or 30% 30% None 20% of base 30% 20% 20% None 20% None. None 16 None None None None Fed Reserve Eligible Al/P1 rating None None None A rating Multiple Multiple None AA rating None None *See "permissible Investments as allowed in Government Codes" on page 6 for notesrelated tothis figure. • CITY OF NATIONAL CITY ATTACHMENT B • • AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND incorporate , ©. name) THIS AGREEMENT is entered into this day of 20 , by and between the CITY OF NATIONAL CITY, a municipal corporation (the "CITY"), and , a (the "CONTRACTOR/CONSULTANT [CHOOSE ONE]". RECITALS WHEREAS, the CITY desires to emloy a CONTRACTOR/CONSULTANT [CHOOSE ONE] to provide WHEREAS, the CITY has determined that the CONTRACTOR/CONSULTANT [CHOOSE ONE is a �" t and is qualified by experience and ability to perform the services desired by the CITY, and the CONTRACTOR/CONSULTANT [CHOOSE ONE] is willing to perform such services. NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS FOLLOWS: 1. ENGAGEMENT OF CONTRACTOR/CONSULTANT [CHOOSE ONE1. The CITY hereby agrees to engage the CONTRACTOR/CONSULTANT [CHOOSE ONE] and the CONTRACTOR/CONSULTANT [CHOOSE ONE] hereby agrees to perform the services hereinafter set forth in accordance with all terms and conditions contained herein. The CONTRACTOR/CONSULTANT [CHOOSE ONE] represents that all services required hereunder will be performed directly by the CONTRACTOR/CONSULTANT [CHOOSE ONE] or under direct supervision of the CONTRACTOR/CONSULTANT [CHOOSE ONE]. 2. SCOPE OF SERVICES. The CONTRACTOR/CONSULTANT [CHOOSE ONE] will perform services as set forth in the attached Exhibit " ". The CONTRACTOR/CONSULTANT [CHOOSE ONE] shall be responsible for all research and reviews related to the work and shall not rely on personnel of the CITY for such services, except as authorized in advance by the CITY. The CONTRACTOR/CONSULTANT [CHOOSE ONE] shall appear at meetings cited in Exhibit "_"to keep staff and City Council advised of the progress on the project. The CITY may unilaterally, or upon request from the CONTRACTOR/CONSULTANT [CHOOSE ONE], from time to time reduce or increase the Scope of Services to be performed by the CONTRACTOR/CONSULTANT [CHOOSE ONE] under this Agreement. Upon doing so, the CITY and the CONTRACTOR/CONSULTANT [CHOOSE ONE] agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction or increase in the compensation associated with said change in services, not to exceed a factor of % from the base amount. 3. PROJECT COORDINATION AND SUPERVISION. hereby is designated as the Project Coordinator for the CITY and will monitor the progress and execution of this Agreement. The CONTRACTOR/CONSULTANT [CHOOSE ONE] shall assign a single Project Director to provide supervision and have overall responsibility for the progress and execution of this Agreement for the CONTRACTOR/CONSULTANT [CHOOSE ONE]. thereby is designated as the Project Director for the CONTRACTOR/CONSULTANT [CHOOSE ONE]. 4. COMPENSATION AND PAYMENT. The compensation for the CONTRACTOR/CONSULTANT [CHOOSE ONE] shall be based on monthly billings covering actual work performed. Billings shall include labor classifications, respective rates, hours worked and also materials, if any. The total cost for all work described in Exhibit "_"shall not exceed the schedule given in Exhibit "" (the Base amount) without prior written authorization from the . Monthly invoices will be processed for payment and remitted within thirty (30) days from receipt of invoice, provided that work is accomplished consistent with Exhibit " "as determined by the CITY. The CONTRACTOR/CONSULTANT [CHOOSE ONE] shall maintain all books, documents, papers, employee time sheets, accounting records, and other evidence pertaining to costs incurred and shall make such materials available at its office at all reasonable times during the term of this Agreement and for three (3) years from the date of final payment under this Agreement, for inspection by the CITY and for furnishing of copies to the CITY, if requested. 5. ACCEPTABILITY OF WORK. The CITY shall decide any and all questions which may arise as to the quality or acceptability of the services performed and the manner of performance, the acceptable completion of this Agreement and the amount of compensation due. In the event the CONTRACTOR/CONSULTANT and the CITY cannot agree to the quality or acceptability of the work, the manner of performance and/or the compensation payable to the CONTRACTOR/CONSULTANT in this Agreement, the CITY or the CONTRACTOR/CONSULTANT shall give to the other written notice. Within ten (10) business days, the CONTRACTOR/CONSULTANT and the CITY shall each prepare a report which supports their position and file the same with the other party. The CITY shall, with reasonable diligence, determine the quality or acceptability of the work, the manner of performance and/or the compensation payable to the CONTRACTOR/CONSULTANT. 6. LENGTH OF AGREEMENT. Completion dates or time durations for specific portions of the Project are set forth in Exhibit " ". City's Standard Agreement— June 2008 revision 7. DISPOSITION AND OWNERSHIP OF DOCUMENTS. The Memoranda, Reports, Maps, Drawings, Plans, Specifications and other documents prepared by the CONTRACTOR/CONSULTANT [CHOOSE ONE] for this Project, whether paper or electronic, shall become the property of the CITY for use with respect to this Project, and shall be turned over to the CITY upon completion of the Project, or any phase thereof, as contemplated by this Agreement. Contemporaneously with the transfer of documents, the CONTRACTOR/ CONSULTANT [CHOOSE ONE] hereby assigns to the CITY and CONTRACTOR/ CONSULTANT [CHOOSE ONE] thereby expressly waives and disclaims, any copyright in, and the right to reproduce, all written material, drawings, plans, specifications or other work prepared under this agreement, except upon the CITY's prior authorization regarding reproduction, which authorization shall not be unreasonably withheld. The CONTRACTOR/CONSULTANT [CHOOSE ONE] shall, upon request of the CITY, execute any further document(s) necessary to further effectuate this waiver and disclaimer. The CONTRACTOR/CONSULTANT [CHOOSE ONE] agrees that the CITY may use, reuse, alter, reproduce, modify, assign, transfer, or in any other way, medium or method utilize the CONTRACTOR/CONSULTANT [CHOOSE ONE]'s written work product for the CITY's purposes, and the CONTRACTOR/CONSULTANT [CHOOSE ONE] expressly waives and disclaims any residual rights granted to it by Civil Code Sections 980 through 989 relating to intellectual property and artistic works. Any modification or reuse by the CITY of documents, drawings or specifications prepared by the CONTRACTOR/CONSULTANT [CHOOSE ONE] shall relieve the CONTRACTOR/CONSULTANT [CHOOSE ONE] from liability under Section 14 but only with respect to the effect of the modification or reuse by the CITY, or for any liability to the CITY should the documents be used by the CITY for some project other than what was expressly agreed upon within the Scope of this project, unless otherwise mutually agreed. 8. INDEPENDENT CONTRACTOR/CONSULTANT [CHOOSE ONE1. Both parties hereto in the performance of this Agreement will be acting in an independent capacity and not as agents, employees, partners or joint venturers with one another. Neither the CONTRACTOR/CONSULTANT [CHOOSE ONE] nor the CONTRACTOR/CONSULTANT [CHOOSE ONE]'S employees are employee of the CITY and are not entitled to any of the rights, benefits, or privileges of the CITY' s employees, including but not limited to retirement, medical, unemployment, or workers' compensation insurance. This Agreement contemplates the personal services of the CONTRACTOR/CONSULTANT [CHOOSE ONE] and the CON I'RACTOR/CONSULTANT [CHOOSE ONE]'s employees, and it is recognized by the parties that a substantial inducement to the CITY for entering into this Agreement was, and is, the professional reputation and competence of the CONTRACTOR/CONSULTANT [CHOOSE ONE] and its employees. Neither this Agreement nor any interest herein may be assigned by the CONTRACTOR/CONSULTANT [CHOOSE ONE] without the prior written consent of the City's Standard Agreement — June 2008 revision CITY. Nothing herein contained is intended to prevent the CONTRACTOR/CONSULTANT [CHOOSE ONE] from employing or hiring as many employees, or subCONTRACTOR/CONSULTANT [CHOOSE ONE]s, as the CONTRACTOR/CONSULTANT [CHOOSE ONE] may deem necessary for the proper and efficient performance of this Agreement. All agreements by CONTRACTOR/CONSULTANT [CHOOSE ONE] with its subCONTRACTOR/CONSULTANT [CHOOSE ONE](s) shall require the subCONTRACTOR/CONSULTANT [CHOOSE ONE] to adhere to the applicable terms of this Agreement. 9. CONTROL. Neither the CITY nor its officers, agents or employees shall have any control over the conduct of the CONTRACTOR/CONSULTANT [CHOOSE ONE] or any of the CONTRACTOR/CONSULTANT [CHOOSE ONE]'s employees except as herein set forth, and the CONTRACTOR/CONSULTANT [CHOOSE ONE] expressly agrees not to represent that the CONTRACTOR/CONSULTANT [CHOOSE ONE] or the CONTRACTOR/CONSULTANT [CHOOSE ONE]'s agents, servants, or employees are in any manner agents, servants or employees of the CITY, it being understood that the CONTRACTOR/ CONSULTANT [CHOOSE ONE], its agents, servants, and employees are as to the CITY wholly independent CONTRACTOR/CONSULTANT [CHOOSE ONE]s and that the CONTRACTOR/CONSULTANT [CHOOSE ONE]'s obligations to the CITY are solely such as are prescribed by this Agreement. 10. COMPLIANCE WITH APPLICABLE LAW. The CONTRACTOR/CONSULTANT [CHOOSE ONE], in the performance of the services to be provided herein, shall comply with all applicable State and Federal statutes and regulations, and all applicable ordinances, rules and regulations of the City of National City, whether now in force or subsequently enacted. The CON 1'RACTOR/CONSULTANT [CHOOSE ONE], and each of its subCONTRACTOR/CONSULTANT [CHOOSE ONE]s, shall obtain and maintain a current City of National City business license prior to and during performance of any work pursuant to this Agreement. 11. LICENSES, PERMITS, ETC. The CONTRACTOR/CONSULTANT [CHOOSE ONE] represents and covenants that it has all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession. The CONTRACTOR/CONSULTANT [CHOOSE ONE] represents and covenants that the CONTRACTOR/CONSULTANT [CHOOSE ONE] shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement, any license, permit, or approval which is legally required for the CONTRACTOR/CONSULTANT [CHOOSE ONE] to practice its profession. 12. STANDARD OF CARE. A. The CONTRACTOR/CONSULTANT [CHOOSE ONE], in performing any services under this Agreement, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the CONTRACTOR/CONSULTANT [CHOOSE ONUS trade or profession currently practicing under similar conditions and in similar locations. The CONTRACTOR/CONSULTANT [CHOOSE ONE] shall take all special precautions necessary to protect the CONTRACTOR/CONSULTANT [CHOOSE ONE]'s • 4 Citys Standard Agreement — June 2008 revision • employees and members of the public from risk of harm arising out of the nature of the work and/or the conditions of the work site. B. Unless disclosed in writing prior to the date of this agreement, the CONTRACTOR/CONSULTANT [CHOOSE ONE] warrants to the CITY that it is not now, nor has it for the five (5) years preceding, been debarred by a governmental agency or involved in debarment, arbitration or litigation proceedings concerning the CONTRACTOR/CONSULTANT [CHOOSE ONE]'s professional performance or the furnishing of materials or services relating thereto. C. The CONTRACTOR/CONSULTANT [CHOOSE ONE] is responsible for identifying any unique products, treatments, processes or materials whose availability is critical to the success of the project the CONTRACTOR/CONSULTANT [CHOOSE ONE] has been retained to perform, within the time requirements of the CITY, or, when no time is specified, then within a commercially reasonable time. Accordingly, unless the CONTRACTOR/CONSULTANT [CHOOSE ONE] has notified the CITY otherwise, the CONTRACTOR/CONSULTANT [CHOOSE ONE] warrants that all products, materials, processes or treatments identified in the project documents prepared for the CITY are reasonably commercially available. Any failure by the CONTRACTOR/CONSULTANT [CHOOSE ONE] to use due diligence under this sub -paragraph will render the CONTRACTOR/CONSULTANT [CHOOSE ONE] liable to the CITY for any increased costs that result from the CITY's later inability to obtain the specified items or any reasonable substitute within a price range that allows for project completion in the time frame specified or, when not specified, then within a commercially reasonable time. 13. NON-DISCRIMINATION PROVISIONS. The CONTRACTOR/CONSULTANT [CHOOSE ONE] shall not discriminate against any employee or applicant for employment because of age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. The CONTRACTOR/ CONSULTANT [CHOOSE ONE] will take positive action to insure that applicants are employed without regard to their age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. Such action shall include but not be limited to the following: employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The CONTRACTOR/CONSULTANT [CHOOSE ONE] agrees to post in conspicuous places available to employees and applicants for employment any notices provided by the CITY setting forth the provisions of this non- discrimination clause. 14. CONFIDENTIAL INFORMATION. The CITY may from time to time communicate to the CONTRACTOR/CONSULTANT [CHOOSE ONE] certain confidential information to enable the CONTRACTOR/CONSULTANT [CHOOSE ONE] to effectively perform the services to be provided herein. The CONTRACTOR/CONSULTANT [CHOOSE ONE] shall treat all such information as confidential and shall not disclose any part thereof without the prior written consent of the CITY. The CONTRACTOR/CONSULTANT [CHOOSE ONE] shall limit the use and circulation of such information, even within its own organization, to the extent necessary to perform the services to be provided herein. The 5 City's Standard Agreement— June 2008 revision foregoing obligation of this Section 13, however, shall not apply to any part of the information that (i) has been disclosed in publicly available sources of information; (ii) is, through no fault of the CONTRACTOR/CONSULTANT [CHOOSE ONE], hereafter disclosed in publicly available sources of information; (iii) is already in the possession of the CONTRACTOR/CONSULTANT [CHOOSE ONE] without any obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to the CONTRACTOR/CONSULTANT [CHOOSE ONE] by a third party, but only to the extent that the use or disclosure thereof has been or is rightfully authorized by that third party. The CONTRACTOR/CONSULTANT [CHOOSE ONE] shall not disclose any reports, recommendations, conclusions or other results of the services or the existence of the subject matter of this Agreement without the prior written consent of the CITY. In its performance hereunder, the CONTRACTOR/CONSULTANT [CHOOSE ONE] shall comply with all legal obligations it may now or hereafter have respecting the information or other property of any other person, firm or corporation. CONTRACTOR/CONSULTANT [CHOOSE ONE] shall be liable to CITY for any damages caused by breach of this condition, pursuant to the provisions of Section 14. 15. INDEMNIFICATION AND HOLD HARMLESS. The CONTRACTOR/ CONSULTANT [CHOOSE ONE]. agrees to defend, indemnify, and hold harmless the City of National City, its officers and employees, against and from any and all liability, loss, damages to property, injuries to, or death of any person or persons, and all claims, demands, suits, actions, proceedings, reasonable attorneys' fees, and defense costs, of any kind or nature, including workers' compensation claims, of or by anyone whomsoever, resulting from or arising out of the CONTRACTOR/CONSULTANT [CHOOSE ONE]'s negligent performance of this Agreement. 16. WORKERS' COMPENSATION. The CONTRACTOR/CONSULTANT [CHOOSE ONE] shall comply with all of the provisions of the Workers' Compensation Insurance and Safety Acts of the State of California, the applicable provisions of Division 4 and 5 of the California Government Code and all amendments thereto; and all similar state or Federal acts or laws applicable; and shall indemnify, and hold harmless the CITY and its officers, and employees from and against all claims, demands, payments, suits, actions, proceedings and judgments of every nature and description, including reasonable attorney's fees and defense costs presented, brought or recovered against the CITY or its officers, employees, or volunteers, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by the CONTRACTOR/CONSULTANT [CHOOSE ONE] under this Agreement. 17. INSURANCE. The CONTRACTOR/CONSULTANT [CHOOSE ONE], at its sole cost and expense, shall purchase and maintain, and shall require its subCONTRACTOR/CONSULTANT [CHOOSE ONE]s, when applicable, to purchase and maintain throughout the term of this agreement, the following insurance policies: ❑ A. If checked, Professional Liability Insurance (errors and omissions) with minimum limits of $1,000,000 per occurrence. 6 City s Standard Agreement — June 2008 revision B. Automobile insurance covering all bodily injury and property damage incurred during the performance of this Agreement, with a minimum coverage of $1,000,000 combined single limit per accident. Such automobile insurance shall include owned, non -owned, and hired vehicles ("any auto"). C. Commercial general liability insurance, with minimum limits of $1,000,000 per occurrence/$2,000,000 aggregate, covering all bodily injury and property damage arising out of its operations under this Agreement. D. Workers' compensation insurance in an amount sufficient to meet statutory requirements covering all of CONTRACTOR'S/CONSULTANT'S [CHOOSE ONE] employees and employers' liability insurance with limits of at least $1,000,000 per accident. In addition, the policy shall be endorsed with a waiver of subrogation in favor of the CITY. Said endorsement shall be provided prior to commencement of work under this Agreement. If CONTRACTOR has no employees subject to the California Workers' Compensation and Labor laws, CONTRACTOR shall execute a Declaration to that effect. Said Declaration shall be provided to CONTRACTOR by CITY. E. The aforesaid policies shall constitute primary insurance as to the CITY, its officers, employees, and volunteers, so that any other policies held by the CITY shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior written notice to the CITY of cancellation or material change. F. Said policies, except for the professional liability and workers' compensation policies, shall name the CITY and its officers, agents and employees as additional insureds, and separate additional insured endorsements shall be provided. G. If required insurance coverage is provided on a "claims made" rather than "occurrence" form, the CONTRACTORJCONSULTANT [CHOOSE ONE] shall maintain such insurance coverage for three years after expiration of the term (and any extensions) of this Agree- ment. In addition, the "retro" date must be on or before the date of this Agreement. H. Any aggregate insurance limits must apply solely to this Agreement. I. Insurance shall be written with only California admitted companies which hold a current policy holder's alphabetic and financial size category rating of not less than A VIII according to the current Best's Key Rating Guide, or a company equal financial stability that is approved by the CITY's Risk Manager. In the event coverage is provided by non -admitted "surplus lines" carriers, they must be included on the most recent California List of Eligible Surplus Lines Insurers (LESLI list) and otherwise meet rating requirements. J. This Agreement shall not take effect until certificate(s) or other sufficient proof that these insurance provisions have been complied with, are filed with and approved by the CITY's Risk Manager. If the CONTRACTOR/CONSULTANT [CHOOSE ONE] does not keep all of such insurance policies in full force and effect at all times during the terms of this Agreement, the CITY may elect to treat the failure to maintain the requisite insurance as a breach of this Agreement and terminate the Agreement as provided herein. K. All deductibles and self -insured retentions in excess of $10,000 must be disclosed to and approved by the CITY. 18. LEGAL FEES. If any party brings a suit or action against the other party arising from any breach of any of the covenants or agreements or any inaccuracies in any of the representations and warranties on the part of the other party arising out of this Agreement, then in that event, the prevailing party in such action or dispute, whether by final judgment or out-of- 7 City's Standard Agreement —June 2008 revision court settlement, shall be entitled to have and recover of and from the other party all costs and expenses of suit, including attorneys' fees. For purposes of determining who is to be considered the prevailing party, it is stipulated that attorney's fees incurred in the prosecution or defense of the action or suit shall not be considered in determining the amount of the judgment or award. Attorney's fees to the prevailing party if other than the CITY shall, in addition, be limited to the amount of attorney's fees incurred by the CITY in its prosecution or defense of the action, irrespective of the actual amount of attorney's fees incurred by the prevailing party. 19. MEDIATION/ARBITRATION. If a dispute arises out of or relates to this Agreement, or the breach thereof, the parties agree first to try, in good faith, to settle the dispute by mediation in San Diego, California, in accordance with the Commercial Mediation Rules of the American Arbitration Association (the "AAA") before resorting to arbitration. The costs of mediation shall be borne equally by the parties. Any controversy or claim arising out of, or relating to, this Agreement, or breach thereof, which is not resolved by mediation shall be settled by arbitration in San Diego, California, in accordance with the Commercial Arbitration Rules of the AAA then existing. Any award rendered shall be final and conclusive upon the parties, and a judgment thereon may be entered in any court having jurisdiction over the subject matter of the controversy. The expenses of the arbitration shall be borne equally by the parties to the arbitration, provided that each party shall pay for and bear the costs of itsown experts, evidence and attorneys' fees, except that the arbitrator may assess such expenses or any part thereof against a specified party as part of the arbitration award. 20. TERMINATION. A. This Agreement may be terminated with or without cause by the CITY. Termination without cause shall be effective only upon 60-day's written notice to the CONTRACTOR/CONSULTANT [CHOOSE ONE]. During said 60-day period the CONTRACTOR/CONSULTANT [CHOOSE ONE] shall perform all services in accordance with this Agreement. B. This Agreement may also be terminated immediately by the CITY for cause in the event of a material breach of this Agreement, misrepresentation by the CONTRACTOR/CONSULTANT [CHOOSE ONE] in connection with the formation of this Agreement or the performance of services, or the failure to perform services as directed by the CITY. C. Termination with or without cause shall be effected by delivery of written Notice of Termination to the CONTRACTOR/CONSULTANT [CHOOSE ONE] as provided for herein. D. In the event of termination, all finished or unfinished Memoranda Reports, Maps, Drawings, Plans, Specifications and other documents prepared by the CONTRACTOR/CONSULTANT [CHOOSE ONE], whether paper or electronic, shall immediately become the property of and be delivered to the CITY, and the CONTRACTOR/CONSULTANT [CHOOSE ONE] shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of the Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused the CITY by the CONTRACTOR/CONSULTANT [CHOOSE City' s Standard Agreement— June 2008 revision ONE]'s breach, if any. Thereafter, ownership of said written material shall vest in the CITY all rights set forth in Section 6. E. The CITY further reserves the right to immediately terminate this Agreement upon: (1) the filing of a petition in bankruptcy affecting the CONTRACTOR/ CONSULTANT [CHOOSE ONE]; (2) a reorganization of the CONTRACTOR/CONSULTANT [CHOOSE ONE] for the benefit of creditors; or (3) a business reorganization, change in business name or change in business status of the CONTRACTOR/CONSULTANT [CHOOSE ONE]. 21. NOTICES. All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered; or sent by overnight mail (Federal Express or the like); or sent by registered or certified mail, postage prepaid, return receipt requested; or sent by ordinary mail, postage prepaid; or telegraphed or cabled; or delivered or sent by telex, telecopy, facsimile or fax; and shall be deemed received upon the earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if sent by overnight mail, the business day following its deposit in such overnight mail facility, (iii) if mailed by registered, certified or ordinary mail, five (5) days (ten (10) days if the address is outside the State of California) after the date of deposit in a post office, mailbox, mail chute, or other like facility regularly maintained by the United States Postal Service, (iv) if given by telegraph or cable, when delivered to the telegraph company with charges prepaid, or (v) if given by telex, telecopy, facsimile or fax, when sent. Any notice, request, demand, direction or other communication delivered or sent as specified above shall be directed to the following persons: To CITY: !e) (Insert deep e ) City of National City 1243 National City Boulevard National City, CA 91950-4301 To CONTRACTOR/CONSULTANT Notice of change of address shall be given by written notice in the manner specified in this Section. Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given shall be deemed to constitute receipt of the notice, demand, request or communication sent. Any notice, request, demand, direction or other communication sent by cable, telex, telecopy, facsimile or fax must be confirmed within forty- eight (48) hours by letter mailed or delivered as specified in this Section. City's Standard Agreement— June 2008 reysision 22. CONFLICT OF INTEREST AND POLITICAL REFORM ACT OBLIGATIONS. During the term of this Agreement, the CONTRACTOR/CONSULTANT [CHOOSE ONE] shall not perform services of any kind for any person or entity whose interests conflict in any way with those of the City of National City. The CONTRACTOR/CONSULTANT [CHOOSE ONE] also agrees not to specify any product, treatment, process or material for the project in which the CONTRACTOR/CONSULTANT [CHOOSE ONE] has a material financial interest, either direct or indirect, without first notifying the CITY of that fact. The CONTRACTOR/CONSULTANT [CHOOSE ONE] shall at all times comply with the terms of the Political Reform Act and the National City Conflict of Interest Code. The CONTRACTOR/ CONSULTANT [CHOOSE ONE] shall immediately disqualify itself and shall not use its official position to influence in any way any matter coming before the CITY in which the CONTRACTOR/CONSULTANT [CHOOSE ONE] has a financial interest as defined in Government Code Section 87103. The CONTRACTOR/CONSULTANT [CHOOSE ONE] represents that it has no knowledge of any financial interests that would require it to disqualify itself from any matter on which it might perform services for the CITY. ❑ If checked, the CONTRACTOR/CONSULTANT [CHOOSE ONE] shall comply with all of the reporting requirements of the Political Reform Act and the National City Conflict of Interest Code. Specifically, the CONTRACTOR/CONSULTANT [CHOOSE ONE] shall file a Statement of Economic Interests with the City Clerk of the City of National City in a timely manner on forms which the CONTRACTOR/CONSULTANT [CHOOSE ONE] shall obtain from the City Clerk. The CONTRACTOR/CONSULTANT [CHOOSE ONE] shall be strictly liable to the CITY for all damages, costs or expenses the CITY may suffer by virtue of any violation of this Paragraph 21 by the CONTRACTOR/CONSULTANT [CHOOSE ONE]. 23. MISCELLANEOUS PROVISIONS. A. Computation of Time Periods. If any date or time period provided for in this Agreement is or ends on a Saturday, Sunday or federal, state or legal holiday, then such date shall automatically be extended until 5:00 p.m. Pacific Time of the next day which is not a Saturday, Sunday or federal, state or legal holiday. B. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute but one and the same instrument. C. Captions. Any captions to, or headings of, the sections or subsections of this Agreement are solely for the convenience of the parties hereto, are not a part of this Agreement, and shall not be used for the interpretation or determination of the validity of this Agreement or any provision hereof. D. No Obligations to Third Parties. Except as otherwise expressly provided herein, the execution and delivery of this Agreement shall not be deemed to confer any rights upon, or obligate any of the parties hereto, to any person or entity other than the parties hereto. E. Exhibits and Schedules. The Exhibits and Schedules attached hereto are hereby incorporated herein by this reference for all purposes. • 10 Citys Standard Agreement— June 2008 revision F. Amendment to this Agreement. The terms of this Agreement may not be modified or amended except by an instrument in writing executed by each of the parties hereto. G. Waiver. The waiver or failure to enforce any provision of this Agreement shall not operate as a waiver of any future breach of any such provision or any other provision hereof. H. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. I. Entire Agreement. This Agreement supersedes any prior agreements, negotiations and communications, oral or written, and contains the entire agreement between the parties as to the subject matter hereof. No subsequent agreement, representation, or promise made by either party hereto, or by or to an employee, officer, agent or representative of any party hereto shall be of any effect unless it is in writing and executed by the party to be bound thereby. J. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the parties hereto. K. Construction. The parties acknowledge and agree that (i) each party is of equal bargaining strength, (ii) each party has actively participated in the drafting, preparation and negotiation of this Agreement, (iii) each such party has consulted with or has had the opportunity to consult with its own, independent counsel and such other professional advisors as such party has deemed appropriate, relative to any and all matters contemplated under this Agreement, (iv) each party and such parry's counsel and advisors have reviewed this Agreement, (v) each party has agreed to enter into this Agreement following such review and the rendering of such advice, and (vi) any rule or construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement, or any portions hereof, or any amendments hereto. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written. --- Signature Page to Follow --- City's Standard Agreement —June 2008 revision CITY OF NATIONAL CITY By: Ron Morrison, Mayor APPROVED AS TO FORM: Claudia G. Silva City Attorney IN 1RT COe IN SOLD (Corporation —signatures of two corporate officers) (Partnership — one signature) (Sole proprietorship — one signature) By: (Name) (Print) (Title) By: (Name) (Print) (Title) 12 City's Standard Agreement —June 2008 revision CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT �EETING DATE: July 19, 2011 AGENDA ITEM NO. 36 ITEM TITLE: League of California Cities Annual Conference — Designation of Voting Delegate and Alternate(s) PREPARED BY: Leslie Deese, Asst. City Manage DEPARTMENT: City Manager PHONE: 619-336-4240 APPROVED BY: EXPLANATION: See attached Staff Report • FINANCIAL STATEMENT: APPROVED: - Finance ACCOUNT NO. APPROVED: MIS If approved by Council, the travel costs and registration fees associated with this meeting would be charged to the appointed City Council members training funds included in the 2011-12 preliminary ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Staff respectfully requests Council's designation of a voting delegate and up to two alternates to represent the City of National City during the 2011 League of California Cities Annual Conference. BOARD / COMMISSION RECOMMENDATION: N/A atTTACHMENTS: 1. Staff Report 2. League of California Cities' information dated June 9, 2011 The League of California Cities 2011 Annual Conference is scheduled for September 21-23 in San Francisco. An important part of the Annual Conference is the Annual Business Meeting scheduled for 2:30 p.m., Friday, September 23 at the San Francisco Moscone West Convention Center. At this meeting, the League membership considers and takes action on resolutions that establish League policy. In order for cities to cast a vote during the Business Meeting, each city's respective Council must designate a voting delegate. In the instance that the selected voting delegate is unable to serve in that capacity, the League of California Cities' bylaws afford each city the opportunity to appoint up to two alternate voting delegates. According to the League's bylaws, the selection of the voting delegate and alternates must be performed through the official action of the City Council. Furthermore, the voting delegate and alternates must be registered to attend the conference. Eligible individuals who may be selected as the City's voting delegate include the Mayor, each City Council member, as well as any other City official selected by the City Council to serve in this capacity. At this time, Staff respectfully requests the City Council consider appointing a voting delegate and one or two alternate voting delegates to vote on the City's behalf at the Annual Business Meeting of the League of California Cities on September 23, 2011. 1400 K STREET SACRAMENTO, CA 95814 PH:(916) 658-8200 EX: (916) 658-8240 LEAGUE CITIES \WXX' CACITIFS.ORG Council Action Advised by August 26, 2011 RECEIVED JUN 1 6 2011 June 9, 2011 TO: Mayors, City Managers and City Clerks RE: DESIGNATION OF VOTING DELEGATES AND ALTERNATES League of California Cities Annual Conference — September 21-23, San Francisco The League's 2011 Annual Conference is scheduled for September 21-23 in San Francisco. An important part of the Annual Conference is the Annual Business Meeting (at the closing General Assembly), scheduled for 2:30 p.m., Friday, September 23, at the San Francisco Moscone West Convention Center. At this meeting, the League membership considers and takes action on resolutions that establish League policy. In order to vote at the Annual Business Meeting, your city council must designate a voting delegate. Your city may also appoint up to two alternate voting delegates, one of whom may vote in the event that the designated voting delegate is unable to serve in that capacity. Please complete the attached Voting Delegate form and return it to the League's office no later than Friday, August 26, 2011. This will allow us time to establish voting delegate/alternates' records prior to the conference. Please note the following procedures that are intended to ensure the integrity of the voting process at the Annual Business Meeting. • Action by Council Required. Consistent with League bylaws, a city's voting delegate and up to two alternates must be designated by the city council. When completing the attached Voting Delegate form, please attach either a copy of the council resolution that reflects the council action taken, or have your city clerk or mayor sign the form affirming that the names provided are those selected by the city council. Please note that designating the voting delegate and alternates must be done by city council action and cannot be accomplished by individual action of the mayor or city manager alone. • Conference Registration Required. The voting delegate and alternates must be registered to attend the conference. They need not register for the entire conference; they may register for Friday only. To register for the conference, please go to our website: www.cacities.org. In order to cast a vote, at least one person must be present at the Business Meeting and in possession of the voting delegate card. Voting delegates and alternates need to pick up their conference badges before signing in and picking up -more- the voting delegate card at the Voting Delegate Desk. This will enable them to receive the special sticker on their name badges that will admit them into the voting area during the Business Meeting. • Transferring Voting Card to Non -Designated Individuals Not Allowed. The voting delegate card may be transferred freely between the voting delegate and alternates, but only between the voting delegate and alternates. If the voting delegate and alternates find themselves unable to attend the Business Meeting, they may not transfer the voting card to another city official. • Seating Protocol during General Assembly. At the Business Meeting, individuals with the voting card will sit in a separate area. Admission to this area will be limited to those individuals with a special sticker on their name badge identifying them as a voting delegate or alternate. If the voting delegate and alternates wish to sit together, they must sign in at the Voting Delegate Desk and obtain the special sticker on their badges. The Voting Delegate Desk, located in the conference registration area of the San Francisco Moscone West Convention Center, will be open at the following times: Wednesday, September 21, 8:30 a.m. — 6:00 p.m.; Thursday, September 22, 7:30 a.m. — 4:00 p.m.; and September 23, 7:30-10:00 a.m. The Voting Delegate Desk will also be open at the Business Meeting on Friday, but not during a roll call vote, should one be undertaken. The voting procedures that will be used at the conference are attached to this memo. Please share these procedures and this memo with your council and especially with the individuals that your council designates as your city's voting delegate and alternates. Once again, thank you for completing the voting delegate and alternate form and returning it to the League office by Friday, August 26th. If you have questions, please call Mary McCullough at (916) 658-8247. Attachments: • 2011 Annual Conference Voting Procedures • Voting Delegate/Alternate Form LEAGUE CITIES 1400 K Street, Suite 400 • Sacramento, California 95814 Phone: 916.658.8200 Fax: 916.658.8240 www.cacities.org Annual Conference Voting Procedures 2011 Annual Conference 1. One City One Vote. Each member city has a right to cast one vote on matters pertaining to League policy. 2. Designating a City Voting Representative. Prior to the Annual Conference, each city council may designate a voting delegate and up to two alternates; these individuals are identified on the Voting Delegate Form provided to the League Credentials Committee. 3. Registering with the Credentials Committee. The voting delegate, or alternates, may pick up the city's voting card at the Voting Delegate Desk in the conference registration area. Voting delegates and alternates must sign in at the Voting Delegate Desk. Here they will receive a special sticker on their name badge and thus be admitted to the voting area at the Business Meeting. 4. Signing Initiated Resolution Petitions. Only those individuals who are voting delegates (or alternates), and who have picked up their city's voting card by providing a signature to the Credentials Committee at the Voting Delegate Desk, may sign petitions to initiate a resolution. 5. Voting. To cast the city's vote, a city official must have in his or her possession the city's voting card and be registered with the Credentials Committee. The voting card may be transferred freely between the voting delegate and alternates, but may not be transferred to another city official who is neither a voting delegate or alternate. 6. Voting Area at Business Meeting. At the Business Meeting, individuals with a voting card will sit in a designated area. Admission will be limited to those individuals with a special sticker on their name badge identifying them as a voting delegate or alternate. 7. Resolving Disputes. In case of dispute, the Credentials Committee will detemiine the validity of signatures on petitioned resolutions and the right of a city official to vote at the Business Meeting. LEAGUE OF CAIJFORNIA CITIES CITY: 2011 ANNUAL CONFERENCE VOTING DELEGATE/ALTERNATE FORM Please complete this form and return it to the League office by Friday, August 26, 2011. Forms not sent by this deadline may be submitted to the Voting Delegate Desk located in the Annual Conference Registration Area. Your city council may designate one voting delegate and up to two alternates. In order to vote at the Annual Business Meeting (General Assembly), voting delegates and alternates must be designated by your city council. Please attach the council resolution as proof of designation. As an alternative, the Mayor or City Clerk may sign this form, affirming that the designation reflects the action taken by the council. Please note: Voting delegates and alternates will be seated in a separate area at the Annual Business Meeting. Admission to this designated area will be limited to individuals (voting delegates and alternates) who are identified with a special sticker on their conference badge. This sticker can be obtained only at the Voting Delegate Desk. 1. VOTING DELEGATE Name: Title: 2. VOTING DELEGATE - ALTERNATE 3. VOTING DELEGATE - ALTERNATE Name: Name: Title: Title: PLEASE ATTACH COUNCIL RESOLUTION DESIGNATING VOTING DELEGATE AND ALTERNATES. OR ATTEST: I affirm that the information provided reflects action by the city council to designate the voting delegate and alternate(s). Name: E-mail Mayor or City Clerk Phone: (circle one) (signature) Date: Please complete and return by Friday, August 26 to: League of California Cities ATTN: Mary McCullough 1400 K Street Sacramento, CA 95814 FAX: (916) 658-8240 E-mail: mccullom@cacities.org (916) 658-8247 V of in gDe legateLetter 11.doc CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19, 2011 AGENDA ITEM NO.37 EM TITLE: TEMPORARY USE PERMIT — 1st Annual National City Youth Football Camp at El Toyon Field on July 23, 2011 from 8 am to 8:30 pm sponsored by the City of National City Community Services Department with a request for waiver of fees. PREPARED BY: Dionisia Trejo DEPARTMENT: NeightfOlidServices Division PHONE: (619) 336-4364 APPROVED BY: EXPLANATION: I This is a request from the City of National City Community Services Department to conduct the 15' Annual National City Youth Football Camp at El Toyon field on July 23, 2011 from 8 am to 8:30 pm. This event is a partnership between the City of National City, Sweetwater High, and the National City Bears to provide a free one -day football clinic for National City's youth. This event will include football drills, techniques as well as an education component to encourage youth to continue their education. The clinic will also include coach's clinic and an exhibition game from the NC Bears VS CA Tide. Clean up for this event will be performed by the volunteers. Security will be provided by the volunteers from the NC Bears Minor League coaches and the Sweetwater football coaches. FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: APPROVED: Finance MIS The City has incurred $237 for processing the TUP through various City departments. The Fire Department, Public works and NPDES inspection fees TBD. ENVIRONMENTAL REVIEW: ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Approve the Application for a Temporary Use Permit subject to compliance with all conditions of approval with waiver of fees. BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: >plication for a Temporary Use Permit with recommended approvals and conditions of approval. Type of Event: Public Concert Parade _ Motion Picture Fair _ Demonstration Grand Opening _ Festival _ Community Event Circus Block Party Other " ro ,e4tA.1. CAM '? Event Title: iaJs 65040,W N6Tto1.%t&, vTY You-tu L e.AM; Event Location: EA' zo'01`i TI elf) Event Date(s): From 7' ' 11 to If e3111 Total Anticipated Attendance: C-6orJ - Month/Day/Year ( ' Participants) Actual Event Hours: FJ ,Q am/prrfto (`p / m (Spectators) Setup/assembly/construction Date: 11 ti Start time: R4S "J Please describe the scope of your setup/assembly work (specific details): ` inakud4.4 rt1414 atT.014frilt • Ctrilll�i9 t- 001)4.1, ale. Dismantle Date: i (! i1 S Completion Time: CY''3 am/pm List any street(s) requiring closure as a result of this event. Include street name(s), day and time of dosing and day and time of reopening. 1414 Sponsoring Organization: CI1 _CT.Nd1110I Chief Officer of Organization (Name) • ` 1 CISS Applicant (Name):.5`�`�S) ,,,�{Spp��,,,, Address: (40 F/' MN^ .k4 J"14 For Profit Not -for -Profit Daytime Phone: (" ° ' 4 CAQ ing Phone: ( ) ‘i411164 Fax: Contact Person "on site" day of the event: ' V M `16,1,46ISr Pager/Cellular: LPSq' a ' •' Q NOTE: THIS PERSON MUST BE IN ATTENDANCE FOR THE DURATION OF THE EVENT AND IMMEDIATELY AVAILABLE TO CITY OFFICIALS 1 Is your organizatioRa "Tax EX empt,.nonprofit" organization? Are admission, entry, vendor or participant fees required? If YES, please explain the purpose and provide amount(s): YES NO YES NO $ ICJ 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. TAO o.wi# i9 Q rMMantM t`p4*�JaQ�, - 4 el►k,i,Jukt. ot ge,b1.0.0 Aorr.)ida a ma o+ta-dto&-CcotiA e14Nie,t,co.n csAci 4.k) di 14 6ne.(ud cfrtM Aid A -QYVAS u.\ 4K1 sckx- u►L►o. on ea013ri444 AsS eq.n. Q r v-w,4 ALaAc u A o = a:nt a LA 1 inQWQ 0.020*49 kn , ald do 4.4Anjici i' o ` a A.Q, 4 „oe,4 s .(S C+xi Ti d4 . 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 V V V V V V\I V V YES ✓ NO Does the event involve the sale or use of alcoholic beverages? YES /NO Will items or services be sold at the event? If yes, please describe: _ YES /NO Does the event involve a moving route" of any kind along streets, sidewalks or highways? If YES, attach a detailed map of your proposed route indicate the direction of travel, and provide a written narrative to explain your route. ✓ YES NO Does the event involve a fixed venue site? If YES, attach a detailed site map showing all streets impacted by the event. J YES NO Does the event involve the use of tents or canopies? If YES: Number of tent/canopies %O Sizes q `jA NOTE: A separate Fire Department permit is required for tents or canopies. •% YES NO Will the event involve the use of the City stage or PA system? In addition to the route map required above, please attach a diagram showing the overalllayout and set-up locations for the following items: ➢ Alcoholic and Nonalcoholic Concession and/or Beer Garden areas. ➢ Food Concession and/or Food Preparation areas Please describe how food will be served at the event: If you intend to cook food -in the event area please specify the method: GAS ELECTRIC CHARCOAL OTHER (Specify): ➢ Portable and/or Permanent Toilet Facilities Number of portable toilets: 0 (.3 for every 250 people is required, unless the applicant can show that there are facilities in theimmediate area available to the public during the event) Tables and Chairs Fencing, barriers and/or barricades Generator locations and/or source of electricity Canopies or tent locations (include tent/canopy dimensions) Booths, exhibits, displays or enclosures Scaffolding, bleachers, platforms, stages, grandstands or related structures Vehicles and/or trailers Other related event components not covered above - Trash containers and dumpsters (Note: You must properly dispose of waste and garbage throughout the term of your event and immediately upon conclusion of the event the area must be returnedAo aclean condition.) Number of trash cans: Trash containers with lids: Describe your plan for clean-up and removal of waste and garbage during and after the event: JOA u vit t,1 i N 034 n ti cend d'4knOJ 4 y 64g4 Please describe your procedures for both Crowd Control and Internal Security: (AJd M) t Q06MEAS ti- • 1Jti'Aoi _ YES L NO Haveyou hired anyPrdessional Securityorganization g to handle security arrangements for this event? If YES, please list: Security Organization: Security Organization Address: Security Director (Name): Phone: ✓ YES _ NO Is this a night event? If YES, please state how the event and surrounding area wi ilitiana to n urn a �,ifetvf t Wipants and spectators: case va44.di 01 VIat,arraan men ave p�a..r proytr it t ntaffjpg a §guipment. Sici4�s oc noaq c"odui otovAvakn Please scribeotcAsr PI sat fgur event y indiv" ual,S fapth,tijs`nnbilities: P se provi kdVc scri AS ,yvn O v,acu P ase Aescr 4y uq r plan waA "D "TAc;vn ti V yo PAMI 11,(C r-r1c-An 4 Please describe your plans to notify all residents, businesses and churches impacted by the � are laid d tJ ) $qLt GoerA c didvrkg, 64Nogg aid, QSnumjnal `1 Q vto•Arii n ackJ .w' eA • NOTE: Neighborhood residents must be notified 72 hours in advance when events are scheduled in the City parks. /YES _ NO Are there any musical entertainment features related to your event? If YES, please state the number of stages, number of bands and type of music. Number of Stages:: 0 Number of Bands: 0 Type of Music: LJ /YES NO Will sound amplification be used? If YES, please indicate: Start time: -RorN am/pm Finish Time $ 1 am/pm YES ✓ NO Will sound checks be conducted prior to the event? If YES, please indicate: Start time: am/'pm Finish Time am/pm Please describe the sound equipment that will be used for your event: YES/NO Fireworks, rockets, or other pyrotechnics? If YES, please describe: / YES ` NO Any signs, banners, decorations, special li hting? If YES, please describe: S ,AS aid 1004,1 EA I ,0 Revised 08/10/05 Event: J'or Office Use Only Department Date Approved? Yes No Initial Specific Conditions of Approval Council Meeting Date: Approved: Yes Vote: Kathleen Trees, Director Building & Safety Department City of National City PUBLIC PROPERTY USE HOLD HARMLESS AND INDEMNIFICATION AGREEMENT Persons requesting use of City property, facilities or personnel are required to provide a minimum of $1,000,000 combined single limit insurance for bodily injury and property damage which includes the City, its officials, agents and employees named as additional insured and to sign the Hold Harmless Agreement. Certificate of insurance must be attached to this permit_ Organization 1 (.oncs4 � ( Person in Charge of Activity f.'tl)J \ Address t^''7 . t'2 T • AA-(1, , Telephone 3 U 24-- Date(s) of Use 7 i Q3 t t t Nktionid «8u anu 0w (a UfimA-e fits-, ouv ►j is • -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.h'ereby 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, casts, 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 Applicant Q 1 OCt i So t' Official -rifle J For Office (Ise Only Certificate of Insurance Approved Date Non-profit organizations, which meet the criteria on page v of the instructions, will be considered for a waiver. If you would like to request a waiver of the processing fees, please complete the questionnaire below. 1. Is the event for which the TUP is sought sponsoredby 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 sponsor ng,p,qtr n CtN O� Ia411004t, G17, st.1/41 3v36 R tAS, N�izatio- l.(!�►� 1. Type of Organization aS ).eE., (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. 0 (� 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. t" 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: hdfts, No (P lease sign the form and submit it with the TUP Application) 7151/ Date 9 st 1 Annual NATIONAA CI POUT FOOT SCHEDULE OF ACTIVITIES: 8:OOAM-11:OOAM : COACHES CLINIC 11:30AM - 3:30PM : YOUTH FOOTBALL CAMP 5:001'M KICK OFF: EXHIBITION GAME MINOR LEAGUE FOOTBALL NATIONAL CITY. BEARS VS CALIFORNIA Tl DE ALL CA SATURDAY, JULY 23, 2011 Starts @ 8:OOAM EL TOYON FOOTBALL PARK NATIONAL CITY, CALIFORNIA AGES: 10 - 11 - 12 YEAR OLDS NATIONAL CITY DIABLOS GRANGER )R HIGH SCHOOL NATIONAL CITY MIDDLE SCHOOL Hon. Mayor Ron Morrison NATIONALCITY IN T11!' e'nsNTE14 01, 1T ALI. ache j! itt nal rEflp @times FREE support your local team! SIGN UP NOW WWW.NAT!ONALCI T\'IiEARS.COM Season Ticloets Available NOW! Call: (619) 474-5300 COME SUPPORT YOUR LOCAL. FOOTBALL TEAM - ENJOY A LIVE GAME OF FOOTBALL AT ITS BEST! Nalionol (ily REARS is dedicated lu the development of its athletes in the sport of football - the learn o primary focus is to prepare athletes to the next level in the game of football and provide for opportunities to its athletes to become better citizens and have o positive effect in the community. The California Tide was founded by Cornelius Harrell, o former player with the LA. Rams PRE - SEASON GAME SATURDAY, JULY 23, 2011 5:OOPM- @ The El Toyon Football Park in National City FREE ADMISSION TO OUR COMMUNITY HURRY, LIMITED SPACE AVAILMSLF COMPLIMENTARY TICKETS AVAELABLE NOW ! No Food & Drinks Allowed Wettem Conference For more information, please call: Tel: (619) 474-5300 email: ncbears@nationalcitybears.com • visit: www.nationalcitybears.com rffl CITY OF NATIONAL CITY NEIGHBORHOOD SERVICES DIVISION APPLICATION FOR A TEMPORARY USE PERMIT RECOMMENDATIONS AND CONDITIONS SPONSORING ORGANIZATION: City of National City Community Services Department EVENT: lst Annual National City Youth Football Camp DATE OF EVENT: July 23, 2011 TIME OF EVENT: 8am — 8:30 pm APPROVALS: DEVELOPMENT SERVICES RISK MANAGER PUBLIC WORKS FINANCE FIRE COMMUNITY SERVICES POLICE CITY ATTORNEY YES [ x ] NO [ ] YES [ x ] NO [ ] YES [ x ] NO [ ] YES [ x ] NO [ ] YES [ x ] NO l ] YES [ x ] NO [ ] YES[x] NO [ ] YES [ x ] NO [ ] SEE CONDITIONS [ x ] SEE CONDITIONS [ x ] SEE CONDITIONS [ x ] SEE CONDITIONS [ ] SEE CONDITIONS [ x ] SEE CONDITIONS [ x ] SEE CONDITIONS [ ] SEE CONDITIONS [ x ] CONDITIONS OF APPROVAL: DEVELOPMENT SERVICES (619) 336-4318 Please follow posted sign when using synthetic field. RISK MANAGER (619) 336-4370 - Obtain Certificate of Insurance showing the City of National City as certificate holder - Provide Additional insured endorsement naming the City of National City as an additional insured. PUBLIC WORKS (619)366-4580 Parks Division 1. Has no involvement 2. No Stage nor PA System will he provided Spoke with Jessica from CS and the will not need the stage nor the PA system 3. Organization will do clean up after event. FINANCE Approved with no comments t. a FIRE (619) 336-4550 Approved with no comments COMMUNITY SERVICES Participants need to fill out the City's liability waiver which we should probably add wording onto the TUP as well. In addition, I left you a message yesterday about providing a map. It would be very helpful to have a map of the proposed event emailed over to include with the TUP. Finally, on the TUP you included that you will need use of the City stage and/or the PA system. Unfortunately, we cannot do the City Stage because of the cost and our PA system is broken so we will not be able to accommodate that portion of the request. POLICE The PD has no stipulation for the event. PD will request extra patrol on the day of the event. CITY ATTORNEY Requires an indemnification and hold harmless agreement, and a policy of general liability insurance, with the City and its officials, employees, agents and volunteers as additional insureds, with amounts of coverage to be determined by the Risk Manager. 13 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19, 2011 AGENDA ITEM NO. 38 EM TITLE: TEMPORARY USE PERMIT — Integrity Charter School request to conduct Physical Education Activities at Kimball Park commencing July 26, 2011 thru June 7, 2012. The applicant is requesting a waiver of fees. PREPARED BY: Dionisia Trejo PHONE: (619) 336-4364 EXPLANATION: DEPARTMENT: Neighb. ood ;l• rvices Division APPROVED BY: This is a request from the Integrity Charter School to conduct their Physical Education Activities at Kimball Park in open space areas on Mondays, Tuesdays, Wednesdays and Thursdays starting July 26, 2011 until June 7, 2012. Mondays: 10:40am — 12:20pm, 1:10pm — 2:50pm Tuesdays: 8:30am — 10:10am, 10:20am — 12:00pm, 12:40pm — 2:20m Wednesdays: 10:40 am — 12:20 am, 1:10pm — 2:50pm Thursday: 8:30 am — 10:10 am, 10:20 am — 12:00pm, 12:40 pm-2:20 pm Group of students is supervised by at least one teacher and parent volunteers. City services are being requested. FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: APPROVED: The City has incurred $237.00 for processing the TUP through various City departments Total fees are $237.00 ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Approve the Application for a Temporary Use Permit subject to compliance with all conditions of approval. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: _rr)lication for a Temporary Use Permit with recommended approvals and conditions of approval. Jun 30 11 12:57p Integrity 6'''-3361526 p.1 Applicant (Name): Type of Event: Public Concert Parade Motion Picture Fair _ Demonstration _ Grand Opening Festival _ Community Event ,Circus n Block Party Other 1 • . L. ,t: r5 .} .7(.. Event Title: 1Pl. Y1fitI LlG e�.i vyi .*(- i'i S Event Location: rk--- — Op p Event Date(s) : From >/,24//) to bI7 L Total Anticipated Attendance: ,2 2`-s Ncnth/Daynreaf ( Palticipants) Actual Event Hours: 7.: z j,-, timlpm to 1.'.5 c• am/_ iN ( g w��c of ( 1 Spectators) Setup/assembly/construction Date: ,t.'J({,— Start time: !?�� Please describe the scope of your setup/assembly work (specific details): Dismantle Date: /-- - Completion Time: / /4 am/pm List any street(s) requiring closure as a result of this event. Include street name(s), day and time of closing and day and time of reopening. Sponsoring Organization: 7�;'r� ; f• �/`i// Chief Officer of Organization (Name) LJ ilr'{,e 21Y2c-cSt� For Profit 1/"Not-for-Profit Address: 70 f AD LL p'Yi Daytime Phone: 0.4)l 3 3 , . L'Ii_ S'Evening Phone: ( -).) ,E -C"-cl` C Fax: (C-.[') 3.J(e. . , J"s-4•, Contact Person 'on site' day of the event: L (`a Ht(izr{) (E` Pager/Cellular: loci% Cl 1 b'. 277 NOTE: THIS PERSON MUST BE IN ATTENDANCE FOR THE DURATION OF THE EVENT AND IMMEDIATELY AVAILABLE TO CITY OFFICIALS Jun 30 11 12.57p Integrity 6, ^-3361526 p,2 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, procuct 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, an'mals, rides or any other pertinent information about the event. f { �, (•i l 1 S GC jrisi: Kw; . % : i — ,2 (S -c 6 r 6ta,) 5 : 51 3- JC,(z !t '< dC Oft j;.V - (k. (3t:1 r4S 411, a--2!5c ')mac, `i 4''j S. S/`'Gu'''. i ✓ .?5 J76-) 'v,- /._ 4L4/ 0 (-0a `> t-t e''licG�.� r' t G;.,'�/ 1i1i z7 k"Y% YES _ NO If the event involves the sale of cars, will the cars come exclusively from National City 2ar dealers? If NO, list any additional dealers involved in the sale: .0 A- Jun 30 11 12:58p Integrity 6 ^-3361526 p.3 YES INO Does the event involve the sale or use of alcoholic beverages? YES N✓NO Will items or services be sold at the event? If yes, please describe: _ YES NO Does the event involve a moving route of any kind along streets, sidewalks or highways? If YES, attach a detailed map of your proposed route indicate the direction of travel, and provide a written narrative to explain your route. YES v NO Does the event involve a fixed venue site? If YES, attach a detailed site map showing all streets impacted by the event. YES NO Does (he 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 1 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: �,1k if you intend to cook food in the event area please specify the method: ti GAS ELECTRIC _ CHARCOAL OTHER (Specify): /. f lk y Portable and/or Permanent Toilet Facilities Number of portable toilets: (1 for every 250 people is required, unless the applicant can show that there are facilities in the immediate area available to the public during the event) ▪ Tables and Chairs ▪ Fencing, barriers and/or barrcades • Generator locations and/or source of electricity • Canopies or tent locations (include tent/canopy dimensions) • Booths, exhibits, displays or enclosures Scaffolding, bleachers, platfomis, 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 anc garbage throughout the term of your event and immediately upon conclusion of the event the area must be returned to a clean condition.) Number of trash cans: Trash containers with lids: Describe your plan for clean-up and removal of waste and garbage during and after the event: Jun 30 11 12:58p Integrity 6_," '3361526 p.4 i 1 1 Please describe your procedures for both Crowd Control and Internal Security: �'. L=c�kt. 0£7,:y:f to Y2.4.6)-S ` i ct- - (pi2>- rf4f, YL WV t t1 (.( t -oil YFS NO Have you hired any Professional Security organization to handle security arrangements for this event? If YES, please list: Security Organization: Security Organization Address: Security Director (Name): Phone: YES /NO Is this a night event? !EYES, please state how the event and surrounding area will be illuminated to ensure safety of the participants and spectators: Please indicate yuhat arrangement you have madtior providing First Aid Staffing and Equipment &ucz u�c ;i 1,4%i-)-' 4 -7771 4121 [(/ G'rtGX' Cat( 3/a/1 1,1 "ivJ f Jcl' (_.e'r-it 1'1 C C! y' )' (1,2(,'�)/v4 Please describe your Accessibility Plan for access at your event by individuals with disabilities: Please provide a detailed description of your PARKING plan: c, iv Please describe your plan for DISABLED PARKING: 4 Jun 30 11 12:59p Integrity F''-3361526 p.5 AA Please describe your plans to notify all residents, businesses and churches impacted by the event: with NOTE: Neighborhood residents must be notified 72 hours in advance when events are scheduled in the City parks. f y 1 a .._t .. YES "NO Are there any musical entertainment features related to your event? If YES, please state the number of stages, number of bands and type of music. Number of Stages: Number of Sands: Type of Music: YES /NO Will sound amplification be used? If YES: please indicate: Start ime: am/pm Finish Time amlpm i YES v NO Will sound checks be conducted prior to the event? If YES, please indicate: Start time. amfpm Finish Time am/pm Please describe the sound equipment that wi',i be used for your event: YES v N0 Fireworks, rockets, or cther pyrotechnics? If YES, please describe: YES _f NO Any signs, banners, decorations, special lighting? If YES, please describe: Revised 08.110105 Jun 30 11 12:59p Integrity 6t" 3361526 p.6 Event: jar Office 'Use OnCy Department Date Approved? Yes No Initial Specific Conditions of Approval Council Meeting Date: Approved: Yes No Vote: Kathleen Trees, Director BLifding & Safety Department 6 Jun 30 11 12:59p Integrity F''3361526 p.7 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 ;Idc ? (--`fay' i Schg%`01.' Person in Charge of Activity - fr? 17C' 0 c ) W Address 70 t f.G�i c' 2 Telephone ✓r 1 qt . c C ? Date(s) of Use 7/,2-'/I 1 — 6/71 2) HOLD HARMLESS AGREEMENT As a condition of the issuance of a temporary use permit to conduct its activities on public or private property, the undersigned hereby agree(s) to defend, indemnify and hold harmless the City of National City and the Parking Authority and its officers, employees and agents from and against any and all claims, demands, costs, losses, liability or. for any personal injury, death or property damage, or both, or any litigation and other liability, including attorneys fees and the costs of litigation, arising out of or related to the use of public property or the activity taken under the permit by the permittee or its agents, employees or contractors. Signature opplicant' I 1 1Y4't Official Title Date For Office Use Orly Certificate of Insurance Approved Date 7 Jun 30 11 01.00p Integrity 3361526 p.8 REQUEST FOR A WAIVER OF FEES Non-profit organizations, which meet the criteria on page v of the instructions, will be considered for a waiver. If you would like to request a waiver of the processing fees, please complete the questionnaire below. 1. Is the event for which the TUP is sought sponsored by a non-profit organization? Yes (proceed to Question 2) 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 flip sponsoring organization Type of Organizations )9' (Service Cluh, 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? IA Yes (Please provide an explanation and details. No (Please proceed to Question 5) 8 Jun 30 11 01:O0p Integrity 6' 3361526 p.9 5. Will the proceeds provide a direct financial benefit to city government such as the generation of sales tax? ti11,‹ Yes (Please provide an explanation and details. jiik 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? OA- _ Yes (Please provide an explanation and details. 71 VpNo (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? J /\ Yes Year funds were received: Funds were used to: 4, No (P lease sign the form and submit it with the TUP Application) Signature / ;;' Date • /D CITY OF NATIONAL CITY NEIGHBORHOOD SERVICES DIVISION APPLICATION FOR A TEMPORARY USE PERMIT RECOMMENDATIONS AND CONDITIONS SPONSORING ORGANIZATION: Integrity Charter School EVENT: Physical Education Activities DATE OF EVENT: July 26, 2011 — June 7, 2012 TIME. OF EVENT: Mondays: 10:40am — 12:20pm, 1 :10pm — 2:50pm Tuesdays: 8:30am — 10: loam, 10:20am — 12:00pm, 12:40pm — 2:20m Wednesdays: 10:40 am — 12:20 am, 1:10pm — 2:50pm Thursday: 8:30 am 10:10 am, 10:20 am — 12:00pm, 12:40 pm-2:20 pm APPROVALS: DEVELOPMENT SERVICES YES [ x ] NO [ ] SEE CONDITIONS [ x ] RISK MANAGER YES [ x ] NO [ J SEE CONDITIONS [ x ] PUBLIC WORKS YES [ x ] NO [ ] SEE CONDITIONS [ x ] FINANCE YES [ x ] NO [ ] SEE CONDITIONS [ ] FIRE YES [ x ] NO [ ] SEE CONDITIONS [ ] COMMUNITY SERVICES YES [ x ] NO [ ] SEF, CONDITIONS [ ] POLICE YES [ x ] NO [ ] SEE CONDITIONS [ ] CITY ATTORNEY YES [ x ] NO [ ] SEE CONDITIONS [ x ] CONDITIONS OF APPROVAL: DEVELOPMENT SERVICES (619) 336-4318 CDBG project (ADA Park Improvements FY 11-12, Spec No.1 1-05) that may interfere with these activities since the requested date range is quite wide (07/26/11 — 06/07/12). We also have not fine-tuned the project's scope of work and schedule. Therefore, flexibility in venue is suggested. RISK MANAGER (619) 336-4370 - Obtain Certificate of Insurance showing the City of National City as certificate holder - Provide Additional insured endorsement naming the City of National City as an additional insured. PUBLIC WORKS (619)366-4580 Facilities Maintenance and Street Maintenance Divisions have no involvement in this event. Parks Division Integrity Charter School can use Kimball Park on Monday through Wednesday only. Kimball Park is mowed on Thursdays and having that many students in the open space areas will not allow Park staff to mow in a safe manner. FINANCE Approved with no comments FIRE (619) 336-4550 Approved with no comments COMMUNITY SERVICES Approved with no comments POLICE Approved with no comments CI"I'Y ATTORNEY Requires an indemnification and hold harmless agreement, and a policy of general liability insurance, with the City and its officials, employees, agents and volunteers as additional insureds, with amounts of coverage to be determined by the Risk Manager. IZ CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19, 2011 AGENDA ITEM NO. 39 EM TITLE: TEMPORARY USE PERMIT — Sweetwater High School Unveiling Celebration on August 6, 2011 sponsored by the Sweetwater Union High School District and the City of National City at 2900 Highland Avenue. The applicant requests the use of the City's stage and street closures. PREPARED BY: Dionisia Trejo PHONE: (619) 336-4364 EXPLANATION: DEPARTMENT: Neighb• o•• Services Division APPROVED BY: This is a request from Sweetwater Union High School District (SUHSD) to conduct the Sweetwater High School Unveiling Ceremony at 2900 Highland Avenue on August 6, 2011 from 4pm to 8pm. The unveiling ceremony will include a community fair on Highland Avenue between 28th and 30th Street in front of SUHI. The fair will follow with a ribbon cutting ceremony of the new facility, food booths and talent show. Bands and other amateur and professional entertainment will be present. The applicant requests the use of the City's stage. Applicant has requested to close Highland Avenue from 28th Street to 30th Street. Closure will be from 12pm to 11 pm. FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: APPROVED: Finance MIS The City has incurred $237.00 for processing the TUP, plus $2,261.46 for Public Works, $476.00 for Traffic Control Plan and $1,112.00 for Police (estimate). The Fire Department fees TBD. Total Fees are $ 4,086.46 (not including the sponsorship). ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Approve the Application for a Temporary Use Permit subject to compliance with all conditions of approval. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: )lication for a Temporary Use Permit with recommended approvals and conditions of approval. Type of Event: Public Concert Parade Motion Picture Fair Festival Demonstration Circus Grand Opening _ Other Event Title: CUOLIAWeatir Event Location: Community Event Block Party Event Date(s): From (p / 11 to 3 / y I Total Anticipated Attendance: Month/Day/Year / ( Actual Event Hours: i am/pm to (} am/pm Setup/ ssembly/construction Date: ®'0(0/1) Start time: ( t9Participants) Spectators) 12_'. OU moo I-t Please describe the scope of your setup/assembly work (specific details): vtondo r -1 Esc,# /-- u 1- Dismantle Date: $ Iwo/ 1 Completion Time: 10'.00 amlim 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. 2 7� ' F 14 Ol I M dt A4'e• • A0.4 ,l L 1 1t J s M i A V SAA( / Sponsoring Organization: Chief Officer of Organization (Name) Applicant (Name): JOS) (, r �f01V{S C ��/�/ /I1/� Vl Y/�rn ✓n n �j Address: V 2. - I ail )0 r> a�__ ( , j vd • Kwytio 6ify S iA.ff J U For Profit Not -for -Profit Daytime Phone: tw) tjM LPEvening Phone: ( ) Fax ( _ ) Contact Person "on site" day of the event: Pager/Cellular: SLI fti JL NOTE: THIS PERSON MUST BE IN ATTENDANCE FOR THE DURATION OF THE EVENT AND IMMEDIATELY AVAILABLE TO CITY OFFICIALS 1 Is your organization a `Tax Exempt, nonprofit" organization? Are admission, entry, vendor or participant fees required? If YES, please explain the purpose and provide amount(s): YES )C NO Estimated Gross Receipts including ticket, product and sponsorship sales from this event. Estimated Expenses for this event. What is the projected amount of revenue that the Nonprofit Organization will receive as a result of this event? Please provide a DETAILED DESCRIPTION of your event. Include details regarding any components of your event such as the use of vehicles, animals, rides or any other pertinent information about the event. CAD �Lh okk 11,lal ( (-);7 ►' . Iv�.f� e� [,LW cN{ �t; t�ri � am. iCA tLE/ . 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 Does the event involve the sale or use of alcoholic beverages? %%`` � YES NO Will items or services be sold at the event? If yes, please describe: TOQ� tQo YES NO Does the event involve a moving route of any kind along streets, sidewalks or highways? If YES, attach a detailed map of your proposed route indicate the direction of travel, and provide a written narrative to explain your route. YES NO Does the event involve a fixed venue site? If YES, attach a detailed site map showing all streets impacted by the event. YES NO 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 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_ v Food Concession and/or Food Preparation areas O l bL L h1� �{/ Please describe how food will be served at the event: 60t va (,a,,A, Vend 6/ 4h5 f If you intend to cook food in the event area please specify the method: GAS ELECTRIC CHARCOAL OTHER (Specify): Portable and/or Permanent Toi et Facilities Number of portable toilets: (1 for every 250 people is required, unless the applicant can show that there are facilities in the immediate area available to the public during the event) Tables and Chairs Fencing, barriers and/or barricades Generator locations and/or source of electricity • Canopies or tent locations (include tent/canopy dimensions) Booths, exhibits, displays or enclosures ✓ Scaffolding, bleachers, platforms, stages, grandstands or related structures • Vehicles and/or trailers Other related event components not covered above Trash containers and dumpsters (Note: You must properly dispose of waste and garbage throughout the term of your event and immediately upon conclusion of the event the area must be returned to a clean condition.) Number of trash cans- �� Trash containers with lids: Describe your plan for clean-up and removal of waste and garbage during and after the event ChiAA,\. bd7 cAtkty- Dsuu, &ANAL % 4,00 �4. 3 Please describe your procedures for both Crowd Control and Internal Security: \I% (. +J,5,_ei G pt SSL6� &&c.(ttt,v rola Amesi-ti,on ) f YES NO Have you hired any Professional Security organization to handle security arrangements for this event? If YES, please list: YES Security Organization: J F*uhAsie Seel ►i ) ` ( v " 2L Security Organization Address: Security Director (Name): r1J Sem 645 Phone: O Is this a night event? If YES, please state how the event and surrounding area will be illuminated to ensure safety of the articipants and spectators: Dx\A i fir. Please indicate what arrangement you have made for providing First Aid Staffing and Equipment. % 5 4-0( And. ,0,) at t e� J s1 i Pleas cJ Accessibility Plan for access at your event by individuals with disabilities: Please provide a detailed description of your PARKING plan: t (Asir, Please describe your plan for DISABLED PARKING: 4 Please describe your plans to notify all residents, businesses and churches impacted by the event: ar- titteA3," ,YI / , 4011Al /A. NOTE: Neighborhood residents`rr{ust be notified 72 hours in advance when events are scheduled in the City parks. f._ YES NO Will sound checks be conducted prior to the event? If YES, please indicate: 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: I Number of Bands: X Type of Music: pt YES NO Will sound amplification be used? If YES, please indicate: Start time: am/ YES Start time: 3 : -D am/ Finish Time 8 ame Finish Time am/ n Please describe the sound equipment that will be used for your event: NO Fireworks, rockets, or other pyrotechnics? If YES, please describe: YES NO Any signs, banners, decorations, special lighting? If YES, please describe: Revised 08/10/05 YS 5 Event: Jor 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 0j(,4\ Person in Charge of Activity Y VM)71 L 7111(1N9v0 Address 11 UC.-• . 04.lki V Telephone la11 //9(X W Date(s) of Use Sit) to/ 1 1 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. Signa "ure of Applicant caQ0 Ou PC.(,(/1 Mar) ✓ 1 I Co /Dt I Official Title Date For Office Use Only Certificate of Insurance Approved Date 7 REQUESTF OR WAIVER OF FE Non-profit organizations, which meet the criteria on pag- of the instructions, will he considered for a waiver. If you would like to reques a waiver of the processing fees, please complete the questionnaire • -low. 1. Is the event for which the TUP is sough sponsored by a non-profit organization? Yes (proceed to Question 2 No (Please sign the form a • submit it with the TUP Application) 2. Please state the name and ty•e of organization sponsoring the event for which the TUP is sough and then proceed to Question 3. Name of the sponsoring . ganization Type of Organization (Service Club, Church, Social S ice Agency, etc.) 3. Will the event genera to net income or proceeds t the sponsoring organization? Yes (Please proceed to Question 4) No (Pleas = sign the form and submit it with the TUP Appl' ation) 4. Will the proc eds provide a direct financial benefit to an individual who reside in or is employed in the city, and who is in dire financial need due t• health reasons or a death in the family? Yes Please provide an explanation and details. (Please proceed to Question 5) 8 5. Will the proceeds provide a direct financial benefit to city government such as the generation of sales tax? Yes (Please provide an explanation and details. No (Please proceed to Question 6) 6. Will the proceeds provide a direct financial benefit to a service club, social services agency, or other secular non-profit organization located within the city such as Kiwanis, Rotary, Lions, Boys and Girls Club? Yes (Please provide an explanation and details. No (Please proceed to Question 7) 7. Will the proceeds provide a direct financial benefit to an organization, which has been the direct recipient of Community Development Block Grant (CDBG) funding? Yes Year funds were received: Funds were used to: No (P lease sign the form and submit it with the TUP Application) Signature Date 9 a Ad A v,e_ CITY OF NATIONAL CITY NEIGHBORHOOD SERVICES DIVISION APPLICATION FOR A TEMPORARY USE PERMIT RECOMMENDATIONS AND CONDITIONS SPONSORING ORGANIZATION: Sweetwater Union High School District and the City of National City EVENT: Sweetwater IIigh School Unveiling Ceremony DATE OF EVENT: August 6, 2011 TIME OF EVENT: 3pm — 8pm APPROVALS: DEVELOPMENT SERVICES YES [ x ] NO [ ] SEE CONDITIONS [ x RISK MANAGER YES [ x ] NO [ ] SEE CONDITIONS [ x ] PUBLIC WORKS YES [ x ] NO [ ] SEE CONDITIONS [ x ] FINANCE YES [ x ] NO [ ] SEE CONDITIONS [ ] FIRE YES [ x ] NO [ ] SEE CONDITIONS [ x ] COMMUNITY SERVICES YES [ x ] NO [ ] SEE CONDITIONS [ ] POLICE YES [ x ] NO [ ] SEE CONDITIONS [ x CITY ATTORNEY YES [ x ] NO [ ] SEE CONDITIONS [ x ] CONDITIONS OF APPROVAL: DEVELOPMENT SERVICES (619) 336-4318 - NPDES inspection since this is co -sponsored by the CITY and part of it will be on City Property. - The street closure of a major thoroughfare such as Highland Ave requires City Council notification and approval and need to coordinate with City Traffic Engineer. - The use of Highland Avenue will require a detour and Traffic Control Plan to be submitted, the plan shall show the street closure signage and delineation and all detours. The closure of Highland Avenue at 30T" Street is a critical traffic flow point and will require advanced notification to be posted at the location a minimum of seven days prior to the event. The advanced notification shall be posted at the intersection of 30th Street and Highland Avenue in all approaching directions and on Highland Avenue midway between 24th Street and 28th Street. The signs shall follow Cal Trans Standards and be black lettering on orange background and shall reed; "HIGHLAND AVENUE CLOSED BETWEEN 3OTH STREET AND 28T" STREET ON AUGUST 6Tu, 2011 FROM 12:00 PM TO 10:00 PM" The traffic control plan shall be submitted with fees in the amount of $476.00 t1 RISK MANAGER (619) 336-4370 - Obtain Certificate of insurance showing the City of National City as certificate holder - Provide Additional insured endorsement naming the City of National City as an additional insured. PUBLIC WORKS (619)366-4580 Parks Division The full stage is requested for this event. These costs are based on overtime. 1. stage set up is $ 928.00 2. Breakdown is $ 928.00 3. total cost $ 1856.00 FINANCE Approved with no comments. FIRE (619) 336-4550 1) Access to the street to be maintained at all times, to both entrances and Fire Department connections for fire sprinkler systems, standpipes, etc. 2) Fire Department access into and through the fair areas are to be maintained at all times. Fire apparatus access roads shall have an unobstructed width of not less than 20 feet and an unobstructed vertical clearance of not less than 13 feet 6 inches 3) Fire Hydrants shall not he blocked or obstructed. 4) Participants on foot are to move immediately to the sidewalk upon approach of emergency vehicle(s). Vehicles in roadway are to move immediately to the right upon approach of emergency vehicle(s). 6) Provide a 2A:10BC fire extinguisher at stage. Extinguisher to be mounted in a visible location between 31/4' to 5' from the floor to the top of the extinguisher. Maximum travel distance from an extinguisher shall not be more than 75 feet travel distance. 7) All cooking booths or areas to have one 2A:10BC. If grease or oil is used in cooking a 40:BC or class "K" firc extinguisher will be required. All fire �a- extinguishers to have a current State Fire Marshal Tag attached. Please see attached example. 8) Vendors shall contact the National City Fire Department with questions on booth requirements ands set up. Failure to comply with requirements may lead to closure of specific vendor booth on day of event. 9) If Charcoal is being used, provide metal cans with lids and label "HOT COALS ONLY" for used charcoal disposal. 10) TUP did not indicate what type of heat source to be used at event (Gas, Electric etc). I I) Internal combustion power sources that may be used shall be of adequate capacity to permit uninterrupted operation during normal operating hours. 12) Internal combustion power sources shall be isolated from contact with the public by either physical guards, fencing or an enclosure. 13) A fire safety inspection is to be conducted by the Fire Department prior to operations of the event to include all cooking areas etc. 14) Required inspections taking place, after hours, holidays, and weekends will be assessed a minimum of two hundred ($200.00) dollars. 15) Any electrical power used is to be properly grounded and approved. Extension cords shall be used as "Temporary Wiring" only. 16) If tents or canopies are used, the following information shall apply: • Tents having an area from 0-200 square feet shall be $200.00 • Tents having an area more than 201 square feet shall be $400.00 • Canopies having an area from 0-400 square feet shall be no charge. • Canopies from 401-500 square feet shall be $250.00. • Canopies from 501-600 square feet shall be $300.00. • Canopies from $601.00 or greater shall be $400.00. • Multiple tents and or canopies placed together equaling or greater than the above stated information shall be charged accordingly. • Tents shall be flame-retardant treated with an approved State Fire Marshal seal attached. A permit from the Fire Department must be obtained. Fees can only be waived by the City Council. • A ten feet separation distance must be maintained between tents and canopies. • A permit from the Fire Department must be obtained. Cooking shall not be permitted under tents or canopies unless the tents or canopies meet "State Fire Marshal approval for cooking Certificate of flame resistance shall he provided to the National City Fire Department prior to the event. 17) First Aid will be provided by organization AMR 18) Concession stands utilized for cooking shall have a minimum of 10 feet of clearance on two sides. 19) Provide map of site area. Map to include placement of Fire Department requests. Fire Department Fees can only be waived by City Council. Approval contingent upon final field inspection and compliance with all applicable codes and ordinances COMMUNITY SERVICES Approved with no comments. POLICE In order to secure the street area for the fair, we are requesting the use of the (4) parking enforcement officers to block off the following streets: 1. Southbound Highland Avenue at 29'1i street and diver all traffic flow southbound to westbound on East 29th Street (1 PRO) 2. Block northbound traffic on Highland Avenue from entering the 2900 block, diverting traffic either eastbound on Sweetwater Road or westbound on 30`h Street (1-2 PRO's). 3. Block westbound East 28th Street from making a left turn southbound Highland Avenue and direct all westbound traffic on East 28th Street to flow northbound on Highland Avenue (1 PRO). 4. Barricades will need to be set up prior to closing down the streets by Public Works to assist officers in maintaining control of the traffic flow. The event organizer will need to notify the affected business of the traffic closure to minimize the number of complaints the police department will have to handle from the business owners the day of the event. The Police Department will deploy 2-4 officers to monitor the event as security, these officers will potentially be reserves to cut down the cost of overtime, however if no reserves are available overtime has been authorized to cover the deployment of officer for security (Sgt. Harlan will assist in acquiring Reserve Officers for the event). Cost recovery for two officers assigned for the event: $1,112.00 (estimate). CITY ATTORNEY Requires an indemnification and hold harmless agreement, and a policy of general liability insurance, with the City and its officials, employees, agents and volunteers as additional insureds, with amounts of coverage to be determined by the Risk Manager. i5 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19, 2011', AGENDA ITEM NO. 40 EM TITLE: TEMPORARY USE PERMIT — 7th Annual American Cancer Society Relay for Life at Kimball Park from August 13 to August 14, 2011. This is a City co -sponsored event pursuant to City Council Policy #804 (Neighborhood Services). PREPARED BY: Dionisia Trejo PHONE: 619-336-4364 EXPLANATION: DEPARTMENT: N lt!1i b. hood Services Division APPROVED BY: This is a request from the American Cancer Society to conduct the National City Relay for Life event at Kimball Park from August 13-14, 2011. This event is a 24-hour walking relay that starts at 10 am on August 13th and concludes at 10 a.m. on August 14th. This relay will raise money for the fight against cancer. During the event there will be food, entertainment, including 10 bands, and educational activities. The event organizers request the use of the full City stage. The sponsors will provide professional security, rented lighting, first aid, and portable toilets for the event. The event and sponsoring organization meet the criteria in the City Council Policy No. 804 for a waiver ^f fees up to the amount of $1,000.00. This event is a City co -sponsored event. FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: APPROVED: Finance MIS The City has incurred $237.00 for processing the `1'UP, plus $1,411.40 for Public Works and $1,400.00 for Fire permits. ENVIRONMENTAL REVIEW: ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Approve the Application for a Temporary Use Permit subject to compliance with all conditions of approval with a waiver of fees totaling $1,000.00. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: )lication for a Temporary Use Permit with recommended approvals and conditions of approval. Type of Event: Public Concert Parade Motion Picture Event Title: Fair Festival /Community Event _ Demonstration _ Circus _ Block Party Grand Opening _ Other N rkel \ l o,6 (\-\I L&C Event Location: �ivvrintkll \8x� Event Date(s): From ii.-'1 t33,11 to v t`A, kt Total Anticipated Attendance: rank) Month/Day,Year ( Cl Participants) Actual Event Hours: to �a4pm to \0 11D/pm ( D Spectators) Setup/assembly/construction Date: 9t1 t1 Start time: 0(6• P\ Please describe the scope of your setup/assembly work (specific details): OANA-l) 41L- 10' 2ij C Nomp tw,o, moo, CNA6A C S Dismantle Dater Cl tU\ 11 Completion Time: VE• 00 am m List any street(s) requiring closure as a result of this event_ Include street name(s), clay and time of closing and day and time of reopening. �+ lPu�i e GC ti 'L er �1�1y° o Profit Sponsoring Organization: 'tit For Profit Not -for -Profit Chief Officer of Organization (Name) D N.-) V C f4t'_.�.\ Pct.Y0 Applicant (Name): EVSVWC (\Y fk !iE 6.1-1) Address: 'Lkoc K`Q 1 L PAk) ��k� rJ�� its 1, `- tC,1 t Daytime Phone: (11°() lk/ 1413 Evening Phone: (cbtry) 9,111i Fax: (Lon) ill —El Contact Person "on site" day of the event: �D7t C �� YY\�yl f t toA) Pager/Cellular: `�ll IA WL)Q (kV-1 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): $ t�t\J�r�r3 Estimated Gross Receipts including ticket, product and sponsorship sales from this event. $ {� OiU0 ��{�,Estimated Expenses for this event. $ �1' + V DQ iiat is the projected amount of revenue that the Nonprofit Organization will receive as a result of this event? Please provide a DETAILED DESCRIPTION of your event. Include details regarding any components of your event such as the use of vehicles, animals, rides or any other pertinent information about the event. `V-\ \k L GQ e \- Nro tNAnl-a.l t z O rvlt raCrh t� �v�C .Stet y ►ram t um. 6 ray\ IVO Fc0_ SC, 19Pro'1yy _ 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 7ii NO Does the event involve the sale or use of alcoholic beverages? YES y NO Will items or services be sold at the event? If yes, please describe: _ YES NO Does the event involve a moving route of any kind along streets, sidewalks or highways? If YES, attach a detailed map of your proposed route indicate the direction of travel, and provide a written narrative to explain your route. YES _ NO Does the event involve a fixed venue site? If YES, attach a detailed site map showing all streets impacted by the event. I YES _ NO Does the event involve the u e of tents or canopies? If YES: Number of tent/canopies S Sizes L -0' '& U _ f-ro NOTE: A separate Fire Department permit is required for tents or canopies. YES — NO Will the event involve the use of the City stage or PA system? In addition to the route map required above, please attach a diagram showing the overall layout and set-up locations for the following items: > Alcoholic and Nonalcoholic Concession and/or Beer Garden areas. > Food Concession and/or Food Preparation areas Please describe how food will be served at the event: It you intend.tp cook food in the event area please specify the method: Y� , GAS Y. ELECTRIC 1G CHARCOAL OTHER (Specify): > Portable and/or Permanent Toilet Facilities Number of portable toilets: Le (1 for every 250 people is required, unless the applicant can show that there are facilities in the immediate area available to the public during the event) > Tables and Chairs ➢ Fencing, barriers and/or barricades > Generator locations and/or source of electricity ➢ Canopies or tent locations (include tent/canopy dimensions) ➢ Booths, exhibits, displays or enclosures ➢ Scaffolding, bleachers, platforms, stages, grandstands or related structures > Vehicles and/or trailers ➢ Other related event components not covered above ➢ Trash containers and dumpsters (Note. You must properly dispose of waste and garbage throughout the term of your event and immediately upon conclusion of the event the area must be returned to a clean condition.) 3 Number of trash cans: Trash containers with lids: Describe your plan for clean-up and removal of waste and garbage during and after the event: S•Pa4JS5c). t> `Vs --A. E0C13 \I e\tot ILS WAk r*W(2.0.0t -S Please describe your procedures for both Crowd Control and Internal Security: i�` 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: 'LW 0 sort, Q'O S b' . V'LI. 0 , °\' .N6 t � Security Director (Name): \NilAU..G W aS Phone: lo\'t‘111✓ 1i911 YES NO Is this a night event? If YES, please state how the event and surrounding area will be i uminated to ensure safety of the participants and spectators: Please indicate wh§t arrangement you have made for providing First Aid Staffing and i ent. 'N`e�a A S_Ao o25 e Please describe your Accessibility Plan for access at your event by individuals with disabilities: Please provide a detailed description of your PARKING_plan: Please describe your plan for DISABLED PARKING: ��tf�cN�l � €ti$Li l 1�is1PcOst 1 F\%1I \ ?M V.1a L - Please describe your plans to notify all residents, businesses and churches impacted by the event: 1�\ Q,� C_F ®vs- �� 1•SMtu1 NOTE: Neighborhood residents must be notified 72 hours in advance when events are scheduled in the City parks. YES NO Are there any musical entertainment features related to your event? If YES, please state the number of stages, number of bands and type of music. Number of Stages: 1 Number of Bands: r f Type of Music: Pe1Ll t �/ 4_ YES _ NO Will sound amplification be used? If YES, please indicate: Start time: i t O gpm Finish Time `t dO ame 4 YES _ NO Will sound checks be conducted prior to the event? If YES, please incl. te: Start time: Mt0 �r Ppm Finish Time '-I'D _YES.NO Please describe the sound equipment that will be used for your event L1Pc(1,kOk; S i)Np. .1�1 S 1-'! VvojskCtP.�S Fireworks, rockets, or other pyrotechnics? If YES, please describe: YES _ NO Any signs, banners, decorations, special lighting? If YES, please describe: Revised 08/10/05 5 Event: ,for Office 'Use OnCy Department Date Approved? Yes No Initial Specific Conditions of Approval Council Meeting Date: Approved: Yes No Vote: Kathleen Trees, Director Building & Safety Department 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 .UC1\t� QiNc►�c.tt k-_ C,IDCU I%S `w\c4ta6 -i C Person in Charge of Activity 4- Sctivvtfs-(ct Address cap -CC 0-0cwv.S t- Qa0 \••.t.Y?->r \ C\ CV ) --"A Telephone kttk4 "?'1 Date(s) of Use %\ `o\ 1H` 2C6 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, rising out of or related to the use of public property or the activity taken undee e permit by the permittee or its agents, employees or contrac,,�. Signa f ly plicant Official Title Date For Office Use Only Certificate of Insurance Approved Date 7 Non-profit organizations, which meet the criteria on page v of the instructions, will be considered for a waiver. If you would like to request a waiver of the processing fees, please complete the questionnaire below. 1. Is the event for which the TUP is sought sponsored by a non-profit organization? Yes (proceed to Question 2) No (Please sign the form and submit it with the TUP Application) 2. Please state the name and type of organization sponsoring the event for which the TUP is sought and then proceed to Question 3. Name of the sponsoring organizationO4tY\4_410_,,ProS -r Type of Organizations p „.k�� {Service Club, Church, Social Service Agency, etc.) 3. Will the event generate net income or proceeds t the sponsoring organization? Y 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. 71 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 pplication) ignature Date 0 CITY OF NATIONAL CITY NEIGHBORHOOD SERVICES DIVISION APPLICATION FOR A TEMPORARY USE PERMIT RECOMMENDATIONS AND CONDITIONS SPONSORING ORGANIZATION: American Cancer Society CA Division FNC EVENT: American Cancer Society Relay for Life DATE OF EVENT: August 13-14, 2011 TIME OF EVENT: I Oam to loam August 14, 2011 APPROVALS: DEVELOPMENT SERVICES YES [ x ] NO [ ] SEE CONDITIONS [ x ] RISK MANAGER YES [ x ] NO [ ] SEE CONDITIONS [ x ] PUBLIC WORKS YES [ x ] NO [ ] SEE CONDITIONS [ x ] FINANCE YES [ x ] NO [ ] SEE CONDITIONS [ ] FIRE YES [ x ] NO [ ] SEE CONDITIONS [ x ] COMMUNITY SERVICES YES [ x ] NO [ ] SEE CONDITIONS [ x ] POLICE YES [ x ] NO [ ] SEE CONDITIONS [ ] CITY ATTORNEY YES [ x ] NO [ ] SEE CONDITIONS [ x ] CONDITIONS OF APPROVAL: DEVELOPMENT SERVICES (619) 336-4318 PA speakers need to be faced away from residences. RISK MANAGER (619) 336-4370 - Obtain Certificate of Insurance showing the City of National City as certificate holder - Provide Additional insured endorsement naming the City of National City as an additional insured. PUBLIC WORKS (619)366-4580 Street Division No involvement. Parks Division 1. The cost to provide the standard stage and PA system is estimated at time and a half overtime. • Stage Set up 4 hrs minimum@ $93.15 = $372.60 • Stage Breakdown 4 hrs minimum @ $93.15 = S372.60 • Total = S745.00 2. The event organizer shall provide staff for clean up. Facilities Division: • Electrician (OT) 8-12 10 hrs set up @ $33.32/hr = $333.20 • Electrician (OT) 8-14 10hrs breakdown @ $33.32/hr = $333.20 • Total =.$666.40 Event organizers have not requested tables and/or chairs at this time. If a request is subsequently made, Facilities will submit a cost estimate. Parks Division Acct #105-442-000-102-0000 Facilities Division Acct #626-422-223-102-0000 FINANCE Approved with no comments FIRE (619) 336-4550 1) Access to the street to be maintained at all times, to both entrances and Firc Department connections for fire sprinkler systems, standpipes, etc. 2) Fire Department access into and through the camp areas are to he maintained at all times. Fire apparatus access roads shall have an unobstructed width of not less than 20 feet and an unobstructed vertical clearance of not less than 13 feet 6 inches 3) Fire I Iydrants shall not be blocked or obstructed. 4) Participants on foot are to move immediately to the sidewalk upon approach of emergency vehicle(s). 5) Vehicles in roadway are to move immediately to the right upon approach of emergency vehicle(s). 6) Provide a 2A:10BC fire extinguisher at stage. Extinguisher to be mounted in a visible location between 3'/z` to 5' from the floor to the top of the extinguisher. Maximum travel distance from an extinguisher shall not be more than 75 feet travel distance. 7) All cooking booths or areas to have one 2A:I0BC. If grease or oil is used in cooking a 40:BC or class "K" fire extinguisher will be required. All fire extinguishers to have a current State Fire Marshal Tag attached. Please see attached example. 8) Additional fire extinguisher shall be placed around the circumference of the track and bowel area so as to provide fire protection for" Luminary Bags". Fire extinguisher to be mounted in a visible location between 3`h' to 5' from the floor to the top of the extinguisher. Extinguisher shall be labeled "Fire Extinguisher". If Charcoal is being used, provide metal cans with lids and label "HOT COALS ONLY" for used charcoal disposal. 0) Internal combustion power sources that may be used for "Light Towers" shall be of adequate capacity to permit uninterrupted operation during normal operating hours. 11) Internal combustion power sources shall be isolated from contact with the public by either physical guards, fencing or an enclosure. 12) A fire safety inspection is to be conducted by the Fire Department prior to operations of the event to include all cooking areas etc. 13) Required inspections taking place, after hours, holidays, and weekends will be assessed a minimum of two hundred ($200.00) dollars. 14) Any electrical power used is to be properly grounded and approved. Extension cords shall be used as "Temporary Wiring" only. 15) if tents or canopies are used, the following information shall apply: • Tents having an area from 0-200 square feet shall be $200.00 • Tents having an area more than 201 square feet shall be $400.00 • Canopies having an arca from 0-400 square feet shall be no charge. • Canopies from 401-500 square feet shall be $250.00. • Canopies from 501-600 square feet shall he $300.00. • Canopies from $601.00 or greater shall be $400.00. • Multiple tents and or canopies placed together equaling or greater than the above stated information shall be charged accordingly. • Tents shall be flame-retardant treated with an approved State Fire Marshal seal attached. A permit from the Fire Department must be obtained. Fees can only be waived by the City Council. • A ten feet separation distance must be maintained between tents and canopies. • A permit from the Fire Department must be obtained. Cooking shall not be permitted under tents or canopies unless the tents or canopies meet "State Fire Marshal approval for cookinkr. Certificate of flame resistance shall be provided to the National City Fire Department prior to the event. 16) First Aid will he provided by organization. 17) Concession stands utilized for cooking shall have a minimum of 10 feet of clearance on two sides. 18) Provide map of site area. Map to include placement of Fire Department requests. 19) Fire Department Fees can only be waived by City Council. Approval contingent upon final field inspection and compliance with all applicable codes and ordinances COMMUNITY SERVICES Please let the applicant know that Friday, August 121h there will be Movies in the Park event in Kimball Bowl. Our vendor typically sets up between 6:30-7:O0pm with the viewing at 8:00pm. We are using most of the bowl for this event; tents, porta potties, and trailers will need to accommodate for participants to view the movie and for our vendor to set up and break down. POLICE The PD has no stipulations. PD will request for extra patrol in the park for the event. CITY ATTORNEY Requires an indemnification and hold harmless agreement, and a policy of general liability insurance, with the City and its officials, employees, agents and volunteers as additional insureds, with amounts of coverage to be determined by the Risk Manager. CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19, 2011 AGENDA ITEM NO, 41 EM TITLE: Request to loan the "PUEDO" Proudly United for Educational Development Organizing Mural from the City of National City to Sweetwater High School. The PUEDO Mural is a city -owned mural and intends to be displayed in Sweetwater High School's new library. PREPARED BY: Docker Alejandro PHONE: (619) 336-4364 EXPLANATION: DEPARTMENT: Nei • r : o' . Services Division APPROVED BY: This is a request to ask the City Council for approval of loaning the P.U.E.D.O. Mural from the ty of National City to Sweetwater High School, located at 2900 Highland Ave, National City CA 91950, where it will be displayed in Sweetwater High School's new library. The P.U.E.D.O. Mural would be displayed by August 6, 2011, which is the grand opening of Sweetwater High School's new facilities and remain on loan until otherwise determined. The P.U.E.D.O. Mural, which stands for Proudly United for Educational Development Organizing, was acquired by the City of National City by virtue of its creation in the old library basement beginning in 1980 and its subsequent sole possession by the library for the expressed purpose of its permanent exhibition as approved by the National City Library Board of Trustees in 1981.The P.U.E.D.O. Mural was created by Juan Parrino (mural artist), David Avalos (mural artist) and several former Sweetwater High School students. The mural has four theme sections which represent: Familia/Family, Educacion/Education, Carnalismo/Friendship and Orgullo/Pride. The P.U.E.D.O. Mural was displayed at the City's old sh"ry until 2005, which is when the new National City Library was built. Currently, the P.U.E.D.O. Mural is being stored e City's Finance Department basement room E 08. Parrino and David Avalos are aware of this request and expressed their support of the loan. FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Approve the loaning of the P.U.E.D.O. Mural to Sweetwater High School so that it may be displayed in Sweetwater High School's new library. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: 1) One photo copy of the Mural as it would look in place at the new library. t4) Four photos of the complete mural sections that represent the following four themes: Familia/Family, Educacion/Education, Carnalismo/Friendship and Orgullo/Pride. CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19, 2011 AGENDA ITEM NO. 42 'EM TITLE: Notice of Decision - Planning Commission approval of Design Guidelines and Best Management Practices for newly established Auto Body Shops. (Applicant City -initiated) (Case File 2010-13 A) PREPARED BY: Martin Reeder DEPARTMENT: Devejnjenr vcs/Planning. PHONE: 336-4313 APPROVED BY: EXPLANATION: During the Westside Specific Plan process a large part of the plan focused on amortization of non -conforming uses, especially auto body shops. The question then came up as to what to do with amortized businesses once they moved to other parts of the City more suited for their placement. The intent was to have standards for which to hold the new and relocated businesses to. Design Guidelines and Best Management were presented to the Planning Commission at their May 2, 2011 meeting, where they voted to recommend approval of the guidelines. The attached background report describes the proposal in detail. FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: APPROVED: ENVIRONMENTAL REVIEW: Not a project under the California Environmental Quality Act pursuant to Section 15060(c)(2). ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Staff concurs with the decision of the Planning Commission and recommends that the Design Guidelines and Best Management Practices for Auto Body Shops be approved. BOARD / COMMISSION RECOMMENDATION: The Planning Commission approved the Design Guidelines and Best Management Practices for Auto Body Shops. Ayes: Alvarado, Baca, DeLaPaz, Farias, Pruitt Absent: Flores, Reynolds ATTACHMENTS: Background Report Draft Design Guidelines and Best Management Practices for Auto Body Shops. 3 Greewald's Auto Body e-mail 4 Planning Commission Resolution 13-2011 BACKGROUND REPORT The need for comprehensive Design Guidelines and Best Management Practices became evident at the time that Caliber Collision relocated from their National City Blvd. location to their current locale at 940 Haffley Avenue. At that time and due to no formal design guidelines, the Environmental Health Coalition (EHC) provided input and conditions for Caliber's Conditional Use Permit. These stopgap conditions, although effective, were not all inclusive and needed to be bolstered and/or updated commensurate with recent environmental regulation changes. In order to look for more permanent and comprehensive requirements and standards for auto body shops, staff applied for and received a grant from the Environmental Protection Agency (EPA) to fund research into standards used elsewhere in the country. The EPA produced a comprehensive document that outlined design guidelines and best management practices for auto body shops. Staff edited the document for content and prepared code changes/additions that are part of the pending Land Use Update. It is the intent of the auto body design guidelines to act in a similar manner to the City's architectural Design Guidelines. Given that body shops generally require a CUP to operate, new facilities will be seen and approved by the Planning Commission and City Council. In this regard, staff requested that the Planning Commission review and comment on the attached guidelines and BMPs. The Commission recommendation is thereby transmitted to the City Council for your review and approval. The auto body design guidelines are intended to apply to new construction of auto body shops but would not necessarily exclude their application to the reuse of an existing building. The best management practices (BMPs) contained in the document are intended to apply to both new facilities and those involving reuse of an existing building. Planning Commission conducted a public hearing on May 2, 2011. Commissioners asked questions about newer less polluting paint products, existing illegal facilities in the Westside area, and applicability of the guidelines_ There was also the question of whether any industry representatives could review the guidelines. Although the Commission voted to approve the CUP based on required findings, staff contacted a representative from Greenwald's Auto Body for. Their comments were received via an e-mail, a copy of which has been attached to this report. Comments were related to the following items: Design Guidelines: #8 - Parking: The guidelines encourage parking for both customers and employees. Greenwald's suggested that requiring employee parking was onerous due land costs. Response: guidelines are specifically should statements and are generally advisory in nature. The pertinent Code section in the Land Use Code provides the shall statements, or specific requirements. In this case, the (new) Code requires one space i per 500 square feet of gross floor area and does not discriminate between customers and employees. #10 — Building Access: The guidelines require that employees utilize rear entrances and exits. Greenwald's suggested that having staff utilize front entrances and exits reduces the potential for theft and/or misunderstandings. Response: Again, this is a should statement and would not necessarily work for every business model. There is no specific requirement in the pertinent Code section that requires separate ingress/egress. #12 — Fencing: The guidelines require that all equipment and vehicle storage areas be screened. Greenwald's takes issue with this requirement due to the fact that screening can impede the ability to detect property and/or vehicle theft in progress after hours. Response: City codes have historically required screening of industrial and storage uses due to the typically undesirable nature of said uses. Both the old and new Land Use Code requires such screening. Best Management Practices: #13 — Inventory Control Practices: This section used the term "waste" interchangeably with excess materials in reference to recycling. Greenwald's correctly points out that recycling of waste (as in hazardous) materials is not permitted by the State and requires special handling. The intent of the section was to encourage a system for excess (over -stocked) material to be used, possibly by another facility, rather than disposed of as waste. The section (last bullet point) has been edited for clarification. 2 Design Guidelines and Best Management Practices for Auto Body Shops A Guide for Auto Body Shop Owners and Operators April 2011 Introduction The purpose of this brochure is to provide design guidelines and best management practices (BMPs) relating to auto body shops in National City. This brochure is intended to support the City's effort to improve the environmental performance of auto body shops in the City, and in turn, eliminate to the extent possible, impacts currently created by auto body operations throughout National City by providing owners and operators of auto body shops general design guidelines and BMPs. When both the design guidelines and BMPs are exercised for auto body shops, maximum benefits to worker safety, public health and the environment can be achieved_ Auto body shop owners and operators are encouraged to review the general design guidelines and BMPs presented here for incorporation into their auto body business operations. These guidelines are intended to operate in conjunction with existing Municipal Code requirements_ Referencesfor further information on each topic are also provided. In some cases, specific regulatory requirements may apply. In these cases, applicable regulations are also provided in the references. General Design Guidelines and Best Management Practices for New Construction of Auto Body Shops Design guidelines and BMPs are most effective when jointly coordinated. Design guidelines provide the physical facility to support effective and efficient protection of health safety and the environment while well -executed BMPs provide the mechanism to achieve and maintain protection of health safety and the environment during the operation of the auto body shop. It is arguable that an auto body shop that is a high performance and state-of-the-art facility without BMPs will underperform an auto body shop without a high performance facility, but with well -established BMPs. This brochure introduces a series of design guidelines and BMPs related to auto body shops_ It is recommended that for new construction of auto body shops these design guidelines and BMPs be jointly implemented. New Construction Compared to Reusing Buildings or Retrofitting an Existing Auto Body Shop The design guidelines proposed in this brochure are intended for new construction of auto.body shops BUT do not . exclude their application to the reuse of an existing building for an auto body shop;or the retrofitting of an exisfmg auto body shop. It should be noted that reusing a building or retrofitting an existing auto body shop may add mori challenges, but overall is considered a more sustainable option when factoring in the li#e cycie costs o _t6e ii atei both in the deconstruction and construction of a new facility.,` " The BMPs proposed in this brochure are applicable to both new on 1 3 Design Guidelines and Best Management Practices for Auto Body Shops; Design Guidelines for New Construction 1. Office and customer accessible areas • Offices and customer areas should have sufficient barriers (e.g, walls, doorways) from the auto body workplace areas and separate ventilation systems to minimize potential exposures by office workers and customers to hazardous rnaterials and equipment that may pose a health or safety risk. • Daylight measures with lighting controls and thermostats to control HVAC systems should be installed for office and customer areas, as well as in the workplace areas. References 1. Nonresidential Compliance Manual for California's 2005 EnergyEffciency Standards (http:lwww.energy.ca govttitle24/2005standardsfnonresidential_manul.himl) 2. California Building Standards Code (http`//publicecodes citation.com/stkaist/CA-P-2010-000008 htm) IrMea, 0=1 oast mil Figure 1: Roof Monitors 4 -v!acdn�o1 TSB Design Guidelines and Best Management Practices for Aute Body. Shops 2. Paint spray booth designs • Install and operate filter technology on all spray booths to achieve at least 98% capture efficiency. • Spray booths used for refinishing vehicles AND coating miscellaneous parts should be fully enclosed and ventilated at negative pressure or up to 0.05 inches water gauge positive pressure for booths that have seals on all doors and other openings and an automatic pressure balancing system. • All spray booths should have downdraft ventilation systems and be physically separated from mixing rooms. References 1: San Diego County Rule 67 20`requiies $510 capture e}fficiency,by weigh- (http //www.sdapcd ;org/rules/rules/Reg4pdf!R67 20.pdf) 2. Federal NESHAP Subpart HHHHHH requires 98% capture efficiency by weight; booths usedfor refinishing vehicles rrtuSt be fully enclosed (http://www epa gov/ttnlatw/area/paint stnpb pdf) 3. California Department of Toxic Substance Control 4. Cal/EPA Unified Program 5. Global Finishing Solutions 6. JunAir Technologies 7. watermasters.finishrnaster.com Figure 2: Paint Spray Booth 3 YE' . Design Guidelines and Best Management Practices for Auto Body Shops 3. Hazardous waste storage areas • Storage areas for hazardous wastes should be enclosed and/or separate secured areas within an auto body shop. • All storage areas should have sufficient capacity for the maximum storage time for the Resource Conservation and Recovery Act (RCRA) category for the individual auto body shop. • Storage areas should be designed to contain a spill or release of hazardous waste. • Flammable and combustible materials should be kept away from property lines to assure better control and monitoring over the waste materials. This provides greater protection for neighboring facilities from exposure and potential fires. References 1 tali ornia Department of Toxic Substance Control 2. National City Fire Department 3., 2010 California Fire Code 4_ CaI/EPA Unified Program 4. Mixing rooms and storage rooms for hazardous materials (inventory) • A well -designed ventilation system in a separate mixing room will vent harmful vapors and significantly improve air quality in the mixing room. • Since this has the potential to be used more frequently than the storage room, a separate room for mixing is recommended. Having a separate storage room has the advantage of providing better inventory controls and tracking. References 1. 2010 California Fire Code' 2. EPA• Design for the Environmenf 5. Ventilation • All enclosed spaces should be continuously ventilated during occupied hours with outdoor air using either natural or mechanical ventilation. • Spaces where occupancy will be brief and intermittent (e.g., storage rooms), and that do not have any unusual sources of air contaminants, do not need to be directly ventilated • High -Velocity Low -Volume orbital vacuum sanding systems, either central or portable should be installed to improve ventilation. • Paint mixing rooms should use both local and general exhaust ventilation systems in combination. There are two basic types of ventilation: general exhaust ventilation and local exhaust ventilation. General exhaust ventilation systems typically consist of an exhaust fan, mounted in the ceiling or wall that pulls air out of the workroom and discharges it outdoors. Replacement air is brought into the work area by either natural means, such as windows and vents, or by a mechanical system that includes a separate make-up air fan, duct work and air registers that provide clean air to the work space. Local exhaust ventilation systems, on the other hand, 4 6 n Guidelines and Best Management Practices for`Auto Body Shops' remove chemicals and other contaminants at their source. Local systems are recommended for controlling hazardous vapors because, if designed properly, they remove the vapors before workers are exposed to them. All local exhaust ventilation systems need to have three basic components: a hood, ductwork and a fan References 1. California Building StandardsCode'(http://publicecodes Citation.com/slJca/stJCA P 2010' 000008 htm) 2.2010 California Fire Code 3. EPA Design for the Environment Wnsle Ovum < \ Top view of room — Locate exhaust vent near vapor sources Figure 3: Combination Ventilation System 6. Floor drains and wafer pollution control • The use of floor drains should be minimized in favor of low volume or non -liquid floor cleaning methods. • Where floor drains are needed, floor drains should have separators and holding areas in order to capture potentially hazardous wastes and allow the facility to properly dispose of the waste, if necessary, before it is discharged. • Floor drains cannot connect to any stormwater system and cannot connect to any sanitary sewer systems near any spray booth areas, hazardous material storage areas (e.g., mixing rooms), or hazardous waste storage areas, in order to remove the possibility of excess paint or other hazardous liquids from discharging in to a stormwater or sanitary sewer system. • Floors should be sealed with epoxy or suitable sealant to improve spill cleanups. • A wastewater recycling system is an excellent design measure that improves environmental and economic benefits by supplying recycled water to car washing operations and other operations instead of using City water_ References T. California Department of Toxic: Substance Confrol 2_Caltrans Division of Construction 5 7 Design Guidelines and Best Management Practices for, Ante Figure 4 Floor Drains 7. Site Layout • Auto body shops should be located a least 500 feet away from schools or residential areas. • The area in front of the bay doors should not allow more than four cars to be queued in front of bay doors. • Auto loading/unloading areas should be located behind buildings to assist in traffic and parking circulation. Reference "National City Land Use 'code"- 8. Parking • Parking should be provided at an appropriate allocation amount with easily accessible parking for customers and employees. • All parking for employees should be located behind buildings. • It is best if driveways and entrances are wide enough to prevent trucks from reversing into public rights -of -ways and allow maneuvering on the property for better traffic circulation. Reference 'National City Land U'se Code 9. Vehicle storage • A time limit on vehicle storage should be enforced to ensure that vehicles awaiting repair are not kept onsite for extended periods, which helps control the amount of space dedicated to vehicle storage. • A minimum amount of storage should be provided to require facilities to create a dedicated area for storage and not rely on using onsite parking areas or storing vehicles on the street. A maximum storage area avoids large and hard -to -maintain storage areas_ Vehicles awaiting repair should be stored in the storage area, not in parking or other open areas. 10. Building access • Buildings should be oriented in such a way that customers can enter the facility without crossing or interfering with repaired vehicles. • Employees should have the same building access but from the rear of the building when possible. 6 8 sign Guidelines and Best Management Practices: References 1, National City Land Use Code 2 California Building Standards Code (http:lipublicecodes.citation.cornistica/stJCA-P-2o10 oo0008 htm) 3.2010 California Fire Code 11.Fire safety and access • All auto body shops should have a minimum of two access locations suitable for the access of fire fighting vehicles. • Hazardous material and hazardous waste storage areas should be identified and be easily accessible. The primary source for fire safety, the California Fire Code, provides an option for a Hazardous Materials Management Plan (HMMP) where required by the fire official. It is recommended that a HMMP or similar plan be considered for an auto body shop and include the following: • Storage and use areas • Maximum amount of each material stored or used in each area • Range of container sizes • Locations of emergency isolation and mitigation valves and devices • Product conveying piping containing liquids or gases, other than utility -owned fuel gas lines and low-pressure fuel gas lines • On and off positions of valves for valves that are of the self -indicating type • Storage plan showing the intended storage arrangement, including the location and dimensions of aisles • The location and type of emergency equipment References 1. National CitytandUse Code - 2. 2010 California Fire Code 12.Fencing and security measures • All vehicle storage areas should be screened in order to regulate the appearance and avoid unsightly parking lots of vehicles awaiting repair. • Fencing or screening should be solid and decorative and no more than eight feet in height, except at the front property line, where it should be no more than six feet in height. Screening vehicle storage areas is a simple and easy way to regulate the appearance and avoid unsightly parking lots of vehicles awaiting repair. Mandating a type and height of fencing or screening ensures that the fencing acts as a screen from the surrounding neighborhood, without becoming a visual distraction. 7 9 Design Guidelines and Best Management Practices for Auto Body Sho Reference National City Land Use Code Figure 5: Proper Fencing Best Management Practices 1. Low -Volatile Organic Compound (VOC) paint • Low VOC paint products should be used. • The use of low VOC content paints reduces the amount of VOCs that may be released into the air during spraying_ References Sari Diego County Rule67,20 provides guidance on the appropriate VOC content for various processes (e g., pretreatment coating, primer) 2. Spray gun cleaning The City of National City promotes the use of aqueous cleaners for paint spray gun cleaning applications. However, if solvent cleaners are used the following guidelines apply: • Extend the effective life of the cleaning solvent with two -stage cleaning. Spray gun equipment should be rinsed first with used solvent (if a waterborne product is not used) and then cleaned with dean solvent. • Paint guns should be cleaned with enclosed automatic paint gun washing equipment. • Disposable paint cup liners should be used as well as alternative gun cleaning technology. 8 10 DesignGuidelines and Best Management Practices fors,9 ItoBoJV Sho References 1 Federal NESHAP Subpart HHHHHH requires that paint spray gun cleaning be done so that an atomized mist or spray of the cleaning solvent is not created outside a container that collects used gun cleaning;solvent. 2. California Department of Toxic Substance Control 3. http:!/www.dtsc:ca gov/PublicabonsForms/prog_pubs.cfm?progPollution%o20Prevenrion 3. High Volume Low Pressure spray guns • Employees should be properly trained for the use of HVLP spray guns. • The Spray Technique Analysis and Research (STAR) program at the Iowa Waste Reduction Center has the most thorough training which teaches its students the proper paint mixture content, spray equipment type, spray equipment maintenance and spray technique (including pressures settings, spray distance and spray angle). References 1. San Diego'CountyRule 67 20 allows for rf u1{iplerriethods for coaling applications that inclutle'HVLP''' (" spray guns; HVLP spray'guns must have on site pressure gauges;.Federal NESHAP Subpart HHHHHH allows for multiple methods for coating applications thatinclude HVLP spray`guns, cleaning requirements• training requirements . 2•. http://watermasters.finishmm aster.co 4. Solvent recycling The City of National City promotes the use of aqueous cleaners for paint spray gun cleaning applications. However, if solvent cleaners are used the following guidelines apply: • On -site recycling should be implemented. However, this may not be an option if the reclaimed solvent has a higher VOC content than is allowed for paint gun cleaning (California Department of Toxic Substances Control, 2006b). • If solvent is recycled on -site, the reclaimed solvent should be used only for paint spray gun cleaning. Reference httpJ/www disc ca.gov%P iblicationsFormlprog=pubS:cfm?prog=Pollution%20Prevenfion 5. Sanding process and High Velocity Low Volume sanding systems • Dry sanding should be considered over wet sanding because it does not introduce a new waste stream. • A High -Velocity Low -Volume (HVLV) system should be provided • A vacuum sanding unit with high efficiency particulate air (HEPA) filtration should be used. 11 Design Guidelines and Best Management Practices for Auto' Body Shop, • HVLV orbital vacuum sanding systems can protect workers and others nearby from harmful dust A HVLV sanding system uses industrial vacuum cleaners to trap sanding dust before it becomes airborne and has a compressed air driven sanding disc that is perforated with a series of holes. • Washing of dust collection systems should not be done in such a way that it collects in stormwater drains. Reference EPA Design for the Environment 6. Hazardous waste generation and disposal • Hazardous waste should be handled and disposed of in accordance with the applicable RCRA and California requirements. • There should be a separation of waste streams with clear labels. Maintaining separation of recyclable wastes (e.g., used oil, solvents) can avoid the creation of hazardous waste. Many fluids can be recycled or reclaimed, but mixing can render the fluids non - recyclable and create hazardous waste. • Containers should be in good condition and compatible with the material they are holding. Each container should remain closed except when adding or subtracting wastes. Containers should be clearly labeled with the following: ✓ The date hazardous wastes began accumulating in that container ✓ The lettering, "Hazardous Waste" visible on the outside of the container ✓ The composition and physical state (solid or liquid) of the waste ✓ The hazardous properties of the waste (toxic, ignitable, corrosive, reactive) ✓ The name and address of the generator • Reusable cloth rags and towels should be used at permitted facilities to reduce trash volume and possibly ihcreased hazardous waste generation. Used rags or towels that are contaminated with automotive fluids or gasoline may be considered hazardous materials. 10 • To the extent practical, reusable cloth rags and towels should be used and laundered at an appropriate laundry facility. Rags and towels that are to be disposed should be stored in an appropriate, marked container and disposed of at an approved permitted facility that can handle these materials. References 1 California Department df Tozic Substance Control 2. California Code of Regulations 3. San Diego County Hazardous Materials Division 4. http://www.dtsc.ca.gov1Pubt cationsForrns/prog_;pubs.cfm?prog=Pollution%2OPrevention 12 FFOORNI g tit FD eSign Guidelines and Best Management Practices ,UNIVERSAL WASTE c ONTLNiS 9CCUMUiAT H1n ¶Tq Ill MATE SHIPPER 9009ESS LIT', STATE, TM Figure 6. Proper Hazardous Waste Labels 7. Pollution prevention Pollution prevention refers to activities that reduce the amount of pollution generated by a process such as the handling, use and disposal of hazardous materials. Pollution prevention should include the most basic steps first, such as: • Improving inventory control • Reducing the amount of products in storage • Using first -in, first -out for paint and materials • Inventorying storage areas regularly • Keeping containers closed and inspecting for leaks • Using good housekeeping practices References 1. San Diego Count'Hazardous Materiials'Division 2. California Department of Toxic Substance Control 3. EPA Region 9: Waste Programs. 8. Stormwater Pollution Prevention Plan (SWPPP) A Stormwater Pollution Prevention Plan (SWPPP) should be implemented for each auto body shop_ A SWPPP provides a systematic approach to preventing contamination of the stormwater system. SWPPP requirements can be found in Chapter 14.22 of the National City Municipal Code. References National City Storm Water Division` 2. National City Municipal Code 3. California Department of Toxic Substance Control 9. Sanding waste Sanding waste, especially with wet sanding, may contain toxic metals that can contaminate surface waters. 11 13 Design Guidelines and Best Management Practices for Auto Body Sho • This waste should not be washed to gutters, streets, or storm drains whether or not it is hazardous waste. • With wet sanding, minimal water would be used and then collected before entering the sanitary sewer when possible. Also the wash water should be collected in a clarifier before discharging to the sanitary sewer. • The clarifier should be inspected and serviced regularly. • A vacuum sanding unit can also minimize the uncontrolled discharge of sanding waste during dry sanding operations. References - . - . California Department of Toi is Substarice'Coritrol 2. http liwww:dtsc:cagov/PuhlicafiorisFofms/prog pubs cfm?prog Pollution%20Prevention` 10. Wastewater and storm drains In general: • Waste water from wash areas should flow AWAY from storm drains. • Cars should be washed in a bermed and covered wash area • A contained wash pad should be installed prior to the sanitary sewer. If a permanent wash pad cannot be installed, a portable wash pad should be used with a pumping system to the sanitary sewer drain. • A closed loop water recycling system should be installed to reduce water use and trap contaminants. References 1. `California_Department of Toxic Substance Control"t 2. httpalwww.dtsc.ca.gov/PublicationsFormsJprogubs_cfm?prog=Pollution%0Prevention 11. General environmental regulation and compliance All businesses should determine applicable regulatory requirements, appropriate compliance options and permitting requirements. • If operations where usage exceeds 20 gallons or 150 pounds of VOC emissions per consecutive 12-month period, then the businesses must follow San Diego County Rule 67.20, Motor Vehicle and Mobile Equipment Refinishing Operations. • An Integrated Maintenance and Operational Plan (iMOP) should also be considered. This plan would outline the types of equipment and maintenance procedures used at the facilities and integrate environmental and occupational sectors. The plan would be maintained and provided upon request, but not required for submittal to the City. 12 References 1, San "Diego county Rule 67.20 requires subdtission of an-pjperahon and Maintenance Plan to focal, Air Pollution "Control Officer for air pollution control device and emission collection systems 2. San Diego County Department of Environmental I -health 3. National City Planning Division; National City Fire Department` 14 esiJn`Gyidelines and Best Management Practices for Auto Body Shops 12. Waterborne coatings and paints • Waterborne coatings and paints are considered less toxic and have lower VOC levels compared to solvent -borne products. It is possible to use less product with waterborne coatings and paints when compared to solvent -based products. This can lead to an immediate cost savings. • Waterborne products may have a shelf life between 24 and 60 months. In some cases, waterborne products may have an advantage over solvent -borne products, such as with the use of waterborne primer where solvent primer would react with existing substrate materials or coatings. • There is a concern about added drying times with waterborne coatings. This can be easily addressed with the proper air movement in a spray booth. Depending on the booth cycles per day, there are different methods to improve air movement in a booth, which will improve drying times. References 1 Sari Diego CountyRule 67 20'prepoed revisit '2.PPG { 3. DuPont 4. http://watermasters.finishmastem r.co e'67.20 bul not w6 currentru 13.lnventory control practices An inventory control practice reduces costs and potential hazards, such as a spill or fire. • It is essential to minimize inventory and purchase only what is needed. The first -in, first - out principle is also important to ensure that the older materials are used first. • All materials should to be stored to maintain proper temperature, humidity and to reduce material degradation. • Inventory limits should not exceed emergency response capacity. • It is recommended that shops minimize the use of similar solvents and use waste exchange programs. • Excess materials that are not needed at one auto body shop can be of value to another auto body shop which may have a use for that material. If a network of auto body shops can be identified and created, an exchange program can be developed to exchange excess materials. This can help transfer valuable materials to facilities that may need these materials rather than disposing of the excess materials as a waste. In addition, the network could include local or regional vocational or technical schools that would benefit from excess materials that would have otherwise been wasted. References 1 California Department of Toxic f` r 2. National City` Fire Department 13 15 Design GuidelrneS and Best Management Practices for Auto Body Sho} 14.Personal protection equipment As mentioned earlier: • Cal/OSHA requires California employers to have a written Injury and Illness Prevention (HP) Program and Respiratory Protection Program (RPP) for its employees. • Auto body shops should have an HP and RPP to ensure health and safety in the workplace. These programs address such measures as worker evaluation, selection of appropriate air -purifying or supplied -air respirators, fit -testing, training and maintenance. This includes wearing goggles or face shields when operating sanding or grinding equipment, installing dust collectors on sanders and grinders and installing splash guards on grinders that use coolants. • Also it is essential to have safety guards on any mechanical equipment as well as always wearing the appropriate clothing (e.g., no loose clothing). • Employers need to enforce these practices with employees and provide periodic training that is culturally respective and effective. References afI;QSHA 2.OSHA 15. Training • Training should be provided for all employees of auto body shops. • Training needs may vary for different job functions such as painters. • Training can include in-house training performed by management or equipment and material suppliers or external training using local technical schools and manufacturer training programs_ Currently in San Diego there are two small colleges that have established training programs for auto body shops. The Cuyamaca College in El Cahon and the Southwestern College in Chula Vista both have training programs intended for auto body shop employees References 1 ,,.ederairkiS,HAP'ubParf HHHHHH requires trainingtcerfification of all painterson spray gun equipment selection, spray techniques,,matntenance;-and environmental compl 2. San Diego . ounty Department of Environmental Health 3. nttp:l/watermasters.finishmas(er.corn 16. Recordkeeping Recordkeeping can play an important role in evaluating an auto body shop's operating practices Records should be maintained for the following: • Hazardous material inventories including paints, solvents, and other chemicals • Volumes and types of hazardous wastes generated • Volumes and disposition of hazardous wastes disposed of or recycled • Annual usage of paint strippers containing McCI 14 16 esign'Guidelines and Best Management PracticesforAuto Body Shops' • Employee training • Any accidents References 1 San Diego County Depaftment`of Environmental, Health . 2..San Diegd County Ar:Pollution Control District' 3 , `EPA Region 9 National City Fire Department '' For more information on National City's effort, please contact: Ms. Patricia Beard Redevelopment Manager City of National City pbeard@nationalcityca.gov (619) 336-4255 17 Mr. Martin Reeder Assistant Planner City of National City mreeder@nationalcityca.gov (619) 336-4313 15 Design Guidelines and Best Management Practices for Auto BodyShops g 9 - a References California Building Standards Code (2010). California Fire Code, California Code of Regulations, Title 24, Part 9 (http://publicecodes.citation.com/st/ca/st/CA-P-2010-000008.htm) California Code of Regulations (CCR). Title 22, Division 4.5. http://www.dtsc.ca.gov/LawsRegsPoliciesfritle22/index.cfm California Department of Toxic Control Substances. Auto Body and Paint Shops Project. http://www.dtsc.cagov/PollutionPrevention/ABP/index.cfm California Department of Toxic Control Substances. Pollution Prevention and Compliance Opportunities Checklist. http://www.dtsc.ca.gov/InformationResources/local_contacts.cfm California Department of Toxic Control Substances. Pollution Prevention Publications, Auto Body and Paint Shops. http://www. dtsc.ca. gov/PublicationsForms/prog_pu bs. cfm?prog=Pollution%20Prevention California Department of Toxic Substances Control, Hazardous Waste Management. http://www.dtsc.ca.gov/InformationResources/local_contacts.cfm California Division of Occupational Safety and Health. Respiratory Protection. http://www.dir.ca.gov/title8/5144.html California Division of Occupational Safety and Health. Guide to Developing Your Workplace Injury and Illness Prevention Program. http://www.dir.ca.gov/dosh/dosh_publications/IIPP.html California Energy Commission. Nonresidential Compliance Manual for California's 2005 Energy Efficiency Standards. (http://www.energy.ca.gov/title24/2005standards/nonresidential_ manual,html) California Environmental Protection Agency (Cal EPA). Unified Program. http://www.calepa.ca.gov/CUPAI Caltrans Division of Construction. Storm Water and Pollution Control. http://www.dot.ca.gov/hq/construc/stormwater/stormwater1.htm DuPont Automotive Paints and Coatings. http://www2.dupont.com/Automotive/en_US/products_services/paintCoatings/paintCoatings. html Global Finishing Solutions. http://www.globalfinishing.com/ JunAir Technologies. http://www.junairamericas.com/pdfs/gads.pdfNational City Fire Department National City, California. Planning and Building Divisions. http://www.ci.national- City.ca.us/index.aspx?page=160 National City, California. Fire Department. http://www.ci.national-city.ca.us/index.aspx?page=126 National City, California. Stormwater Division. http://www.ci.national-city.caus/index.aspx?page=164 National City, California. Land Use Code, http://www.nationalcityca.gov/index.aspx?page=175 PPG Industries. Auto Refinish. http://corporateportal_ppg.com/Refinish/default.htm San Diego County Air Pollution Control District. Auto Repair and Auto Body. Stormwater Best Management Practices (BMPs). http://www. sdcounty. ca. gov/dpw/watersheds/watershedpdf/bmp_2009_auto_repair+body. pdf San Diego County Air Pollution Control District. http://www.sdapcd.org/index.html San Diego County Air Pollution Control District. Rule 67.20 Motor Vehicle and Mobile Equipment Refinishing Operations. http://www.sdapcd.org/rules/rules/Reg4pdf/R67-20.pdf 16 18 esign Guidelines and Best Management Practices San Diego County Department of Environmental Health. (2009), San Diego Area Green Business Program. http://www.sdcounty.ca.gov/deh/doing_business/chd_greenbus.html San Diego County Hazardous Materials Division, Waste and Recycling. httpJlsdpu blic. sdcounty.ca_gov/portal/page?_pageid=93, 298343&_dad=portal&_schema=PORTAL U.S. Department of Labor, Occupational Health and Safety Administration. 1910.94 Ventilation. httpa/www.osha.gov/pis/oshaweb/owadisp.show_document?p_id=9734&p_table=standards Unites States Environmental Protection Agency (USEPA)_ National Emission Standards For Hazardous Air Pollutants (NESHAP) (Subpart HHHHHH), Final Rule, Summary Of Regulations Controlling Air Emissions From Paint Stripping And Miscellaneous Surface Coating Operations. http://www.epa.govittn/atw/area/paint_stripb_pdf USEPA. Design for the Environment. http://www.epa.gov/dfe/index_htm USEPA. Hazardous Wastes. http://www.epa.gov/osw/hazard/index.htm USEPA. Improving Air Quality in Your Community. Retrieved June 6, 2009 from: http://www.epa.gov/air/community/details/autobody_shops.html USEPA. Reducing Air Pollution from Auto Body Shops. http://www. epa. gov/oar/toxicair/community/guide/autobody_comm_info. pdf USEPA. Summary of Regulations Controlling Air Emissions from Paint Stripping and Miscellaneous Surface Coating Operations. http://www.epa.gov/ttn/atw/area/paint_stripb.pdf Watermasters. http://watermasters.finishmaster.com 17 19 Page 1 of 2 Martin Reeder From: Dustin Greenwald[dgreenwald@greenwaldsautobody.com] Sent: Thursday, June 02, 2011 2:56 PM To: Martin Reeder Subject: response to Design Guidelines and Best Management Practices Follow Up Flag: Follow up Flag Status: Blue Dear Martin; I would first like to thank you for involving me in your processes. I too believe that it is important to involve the local business community in these situations as we can sometimes be a valuable source of working information. 1 have carefully reviewed the information you sent and have a few comments or impressions I would like to extend. I would like to applaud the City for finally taking a stand and setting or establishing standards by which collision repair facilities should be required to operate and or be constructed. The information that you provided encompasses the new federal and state requirements with regard to spray gun equipment, water bourne paint, filters, spray booth equipment, emissions etc. The biggest problem we have always had in this industry is not that there aren't laws to regulate all of the above; it is that the laws are not followed or enforced, the larger most professional facilities normally have the equipment and BMP's in place and comply with the rules and regulations. The smaller shops have a tendency not to obey the rules and regulations. The other thing that occurs in all cities is that people come into the City and get a permit for a business other than a body shop and yet they provide services that should be done at a properly permitted and run collision repair facility. A few comments about the information that you sent: #8 Parking a. Parking should be provided for customers and employees and. The City doesn't even provide off street parking for it's employees as the land costs would be very prohibitive # 10. Building Access. a. Although we trust our fellow team members, we do require that all everyone enter and leave the building from front doors_ This helps in controlling theft or misunderstandings. # 12 Fencing a. The information states that all storage areas should be screened. From our experience screening allows undesirable people to have protection from being seen during the commission of a crime. We suffered unbelievable numbers of thefts from our vehicles and customers vehicles there for repair. This normally occurred at night or on weekends when you are not at the location. It is the same philosophy as not having signs and banners in store windows preventing the police from seeing into the store. Best Management Practices #13 Inventory Control Practices Excess (or waste) materials We need to remove the term waste materials from that paragraph. Waste materials are just that, materials left over from a job or jobs that cannot be reused. They need to be properly handled and processed and if need be removed by a licensed waste removal company. They cannot be moved to or used by another shop or facility. Excess paint should be handled by better inventory controls and sent back to the supplies if not needed. There are a number of new laws dictating proper procedures. Government agencies can now go to our suppliers to check our purchase records to see that we are not using too much of any one controlled substance. 6/13/2011 20 Page 2 of 2 Everything else that you discussed people should be following and their shops should be properly equipped. We need to start really checking existing shops to show compliance and carefully license new shops and only allow them to occupy building that don't force them to break the law. Thank You for your consideration and please feel free to contact me at any time. Dan Greenwald 6/13/2011 21 RESOLUTION NO. 13-2011 A RESOLUTION OF THE PLANNING COMMISION OF THE CITY OF NATIONAL CITY RECOMMENDING APPROVAL OF DESIGN GUIDELINES AND BEST MANAGEMENT PRACTICES FOR AUTO BODY SHOPS CASE FILE 2010-13 A WHEREAS, there is a recognized problem in the Westside Specific Plan Area and other parts of the City with certain auto body and paint facilities that produce airborne contaminants, excessive noise, and storm water pollutants; and, WHEREAS, said facilities have a negative effect on area parking and visual resources in the City through storage of disabled vehicles on City streets and in plain view on private properties; and, WHEREAS, the purpose of the proposed design guidelines and best management practices is to establish specific requirements, rules and standards for new auto body facilities relating to air quality, odor impacts, visual resource protection, noise control and handling of hazardous materials; and, WHEREAS, it is the intention of the City to encourage auto body and paint facilities to operate in a manner that is not harmful to the local and regional environment; and, WHEREAS, it is the policy of the City of National City to work cooperatively with business owners by providing guidelinesthat allow businesses to function in an efficient and safe manner; and, WHEREAS, adoption of the proposed design guidelines and best management practices is not a project under the California Environmental Quality Act pursuant to Section 15060(c)(2); and, WHEREAS, the Planning Commission considered said proposed design guidelines and best management practices at the meeting held on May 2, 2011, at which time the Planning Commission considered evidence; and, WHEREAS, at said meeting the Planning Commission considered the staff report provided for Case File No. 2010-13 A, which is maintained by the City and incorporated herein by reference; along with any other evidence presented at said hearing; and, WHEREAS, this action is taken pursuant to all applicable procedures required by State law and City law; and, 22 WHEREAS, the action hereby taken is found to be essential for the conservation of air and water quality in the City and 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 Planning Commission hereby recommends approval of said proposed guidelines and best management practices for Council consideration and approval thereafter. BE IT FURTHER RESOLVED that the Planning Commission has determined that the amendment is not a project under the California Environmental Quality Act pursuant to Section 15060(c)(2) since the activity will not result in direct or reasonably foreseeable indirect physical change in the environment. BE IT FURTHER RESOLVED that copies of this Resolution be transmitted forthwith to the City Council. CERTIFICATION: This certifies that the Resolution was adopted by the Planning Commission at their meeting of May 2, 2011, by the following vote: AYES: DeLaPaz, Farias, Alvarado, Baca, Pruitt NAYS: ABSENT: Reynolds, Flores ABSTAIN: CHAIRMAN 2 23 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: July 19, 2011 AGENDA ITEM NO. 43 M TITLE: Appointment to the Unified Port of San Diego's Public Art Committee. PREPARED BY: Leslie Deese, Asst. City Manager DEPARTMENT: City Manager PHONE: 336-4240 EXPLANATION: See attached Staff Report APPROVED BY: FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Requesting Council's Appointment to the Unified Port of San Diego's Public Art Committee. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: I . Staff Report ?. March 8, 2011 Letter from the Port including Criteria and Process for Membership and Public Art Committee Membership Application. Staff Report: At the March 8, 2011 meeting of the Board of Port Commissioners (BPC), the BPC adopted an amendment to the Public Art Master Plan revising the composition of the Public Art Committee (PAC). The new committee will be comprised of thirteen members, five of which will be recommended by their respective city mayors. The most significant changes from the former process are the membership criteria specifically in terms of who can serve and the required qualifications: • No elected officials, agents, officers, and employees of the Port and its member cities; • That the appointed representative has substantive professional or volunteer experience in visual arts. The PAC serves as an advisor to the BPC and the Public Art Office, upholding the public art vision, ensuring that the Port's public art policies and procedures are followed, and supporting the development and stewardship of the Port's public art collection. PAC members support and advocate for high -quality public art throughout the tidelands. Members are eligible to serve up to two consecutive three-year terms; and any previous years of service on the Port's PAC will count towards the service limit. The attached document outlines the criteria for PAC member candidates, which includes: • Substantive professional or volunteer experience in the visual arts (professional or volunteer experience for this purpose is defined as individuals recognized by peers or curators; artists; art critics; art historians; art collections managers, professors of art, art collectors, art fabricators, art preparators; and other persons with considerable visual arts experience as well as architects and landscape architects); and • An interest in contributing to the development of the Port's public art activities; and • The ability to commit to volunteering time to serve on the PAC, as well as selection panels on an as needed basis. Members are eligible to serve up to two consecutive three-year terms. Terms may be staggered for long-term continuity of the PAC. Elected officials, agents, officers, and employees of the Port and its member cities shall not be considered for an appointment to the PAC, nor accept such aposition while servingon the pp P PAC. I Wined Port of SonaDiftio March 8, 2011 The Honorable Ron Morrison 11243 National City Blvd. National City, CA 91950 Dear Mayor Morrison: 3165 Pacific Highway, San Diego, CA 92101 P.O. Box 120488, San Diego, CA 92112-0488 619.686.6200 • www.portofsandiego.org At the March 8, 2011 meeting of the Board of Port Commissioners (BPC), the BPC adopted an amendment to the Public Art Master Plan revising the composition of the Public Art Committee (PAC). The new committee will be comprised of thirteen members, five of which will be recommended by their respective city mayors. The purpose of this letter is to respectfully request your recommendation of an individual for the National City seat on the PAC. The PAC serves as an advisor to the BPC and the Public Art Office, upholding the public art vision, ensuring that the Port's public art policies and procedures are followed, and supporting the development and stewardship of the Port's public art collection. PAC members support and advocate for high -quality public art throughout the tidelands. Members are eligible to serve up to two consecutive three-year terms; and any previous years of service on the Port's PAC will count towards the service limit. The attached document outlines the criteria for PAC member candidates, your role in recommending the National City PAC member candidate, and the application documents to be completed. We encourage you to consider an individual from your public art committee for member recommendation. In addition, Port staff is available to offer assistance with identification of candidates. Please forward your member recommendation and materials as outlined in the attached document by April 1, 2011. Your member recommendation will be submitted to the BPC Chair for review and appointment. The first PAC meeting is tentatively scheduled to be held on April 21 at 1:00 p.m. Thank you for your participation in this process and for your insight and willingness to discuss the pros and cons of the issue several times. We will send you a copy of the amended Public Art Master Plan as soon as it is printed. Respectfully yours, Yvonne Wise, Chief Curator Public Art / External Relations 619.686.6465 ywise@portofsandiego.org Encl: (1) Public Art Committee Criteria and Process for Membership (2) Public Art Committee Membership Application cc: (w/o enclosure) Commissioner Dukie Valderrama Wayne Darbeau, President & CEO Irene McCormack, Vice -President, External Relations sup - Unified Port of San Diego Public Art Committee Criteria and Process for Mayor -Recommended Candidates Port of San Diego's Public Art Committee The Port of San Diego's Public Art Committee (PAC) serves as an advisor to the Public Art Office and to the Board of Port Commissioners (Board), upholding the Port of San Diego's vision for public art, ensuring that the Port's public art policies and procedures are followed, and supporting the development and stewardship of the Port's public art collection and other public art on Port property. PAC members support and advocate for high -quality Public Art throughout the tidelands. Responsibility for Membership Applications The Public Art Office, with oversight by the Board of Port Commissioners, is responsible for administering the membership of the Public Art Committee. This document outlines the role that the mayors of the Port's five member cities have in recommending a PAC member candidate, the criteria to be met by PAC member candidates, and the application documents to be completed. 1. Role of the Recommending Mayor The mayor of each of the Port's member cities is responsible for recommending one candidate for PAC membership that meets the criteria- described below. He or she is also responsible for submitting the candidate's application to the Port's Public Art Office for the review process. The Port is heavily reliant on the recommendation of each mayor or mayor designee and will consider the recommendation a confirmation that: i) the Recommending Mayor's or mayor designee's knowledge of the candidate is sufficient to provide reasonable grounds for supporting the recommendation/application; and ii) the Recommending Mayor or mayor designee has reviewed the candidate's application form and supporting documentation and that the information is correct and complete to the best of his or her knowledge. 2. Criteria for PAC Membership Membership on a public benefit corporation's advisory committee requires active participation. It is, therefore, crucial that prospective members understand their responsibilities and have a commitment to the organization and its goals. Prospective PAC members shall be recruited using the criteria described below. Specifically, potential members must have: • substantive professional or volunteer experience in the visual arts (professional or volunteer experience for this purpose is defined as: individuals recognized by peers as curators; Artists, art critics; art historians; art collections managers, professors of art, art collectors, art fabricators art preparators; and other persons with considerable visual arts experience as well as architects and landscape architects); and • an interest in contributing to the development of the Port's public art activities; and • the ability to commit to volunteering time to serve on the PAC, as well as selection panels on an as needed basis. Members are eligible to serve up to two consecutive three-year terms. Terms may be staggered for long- term continuity of the PAC. PAC process for member city mayors 03111 1 of 2 Elected officials, agents, officers, and employees of the Port and its member cities shall not be considered for an appointment to the PAC, nor accept such a position while serving on the PAC. Artists serving on the PAC are not eligible to compete for any public art commission offered by the Port. Details about the Public Art Committee membership duties and functions can be found in the Port's Public Art Master Plan: http://www.portofsandiego.orq/public-art.html 3. Deadline / Review Process Deadline Recommendation and complete application materials should be submitted by April 1, 2011. This will allow the necessary time for the Public Art Office staff to prepare the materials for the Board Chair, who will review the materials and appoint candidates to the PAC by the Committee's first meeting, scheduled for April 21 at 1:00 p.m. Recommendations and complete applications submitted after April 1, 2011 will be reviewed upon receipt. Review Process Once the recommendation and accompanying application are received at the Public Art Office, they will be reviewed by staff. During the review process, staff may contact the mayor and/or mayor's candidate to seek clarification of information where necessary. Once all required information has been received, staff will refer the recommendation and accompanying application to the Board Chair for his/her review and appointment. Staff will follow up with the mayor and candidate to confirm appointment. 4. Application Documents The following documents should be completed and submitted by the mayor or the mayor's designee for their candidate to be considered for PAC membership: 0 Letter of Support by Recommending Mayor O PAC Membership Application (To be completed by candidate. A hardcopy of the form is attached and can also be easily completed as a Tillable PDF on the internet at http:/www.portofsandiego.orq/public-art/get-art-committee-info.html. Additional requirements include submittal of a resume and 3 references.) Please submit the materials above in one complete package; we strongly encourage you to submit your materials via email in electronic format as a .pdf file. All application materials should be submitted by April 1, 2011. 5. Public Art Office Contact All information should be submitted to: Yvonne Wise, Chief Curator Public Art Office / External Relations Division Port of San Diego 3165 Pacific Highway, San Diego, CA 92101 PO Box 120488, San Diego, CA 92112 voice: 619.686.6465 fax: 619.686.6436 email: vwiseeportofsandiego.orq PAC process for member city mayors 03/11 2 of 2 rhllflMr fort St111 Diego PUBLIC ART COMMITTEE MEMBERSHIP APPLICATION Application Date: The Port of San Diego Public Art Office welcomes recommendations of individuals to serve in an advisory capacity on the Port of San Diego's Public Art Committee (PAC). The PAC serves as an advisor to the Public Art Office and to the Board of Port Commissioners (Board). upholding the Port of San Diego's vision for public ari, ensuring that the Port's public art policies and procedures are followed, and supporting the development and stewardship of the Port's public art collection and other public art on Port property. PAC members support and advocate for high -quality public art throughout the tidelands. Members are eligible to serve up to two consecutive three-year terms. Terms may be staggered for long-term continuity of the PAC. Please see the Port of San Diego Public Art Master Plan at http://www.portofsandiego.org/public-art.html for information about the Port's vision for public ari. Please note: Elected officials, agents, officers, and employees of the Port and its member cities are not eligible for an appointment to the PAC or accept such a position while a member of the PAC. Artists serving on the PAC are not eligible to compete for any public art projects offered by the Port. APPLICANT INFORMATION First Name Employer Last Name Title Mailing Address City Email address Day Phone Other Phone Fax Number State Zip code AFFILIATION INFORMATION;. ❑ Regional affiliations Please indicate your affiliations with the following. Check all that apply: ❑ Chula Vista ❑ Coronado ❑ Imperial Beach ❑ National City ❑ San Diego ❑ Other (please specify) PROFESSIONAL AND/OR VQLUNTEER EXPERIENCE 0 Substantive professional or volunteer experience in the visual arts. Please summarize your substantive professional or volunteer experience in the visual arts (professional or volunteer experience for this purpose is defined as: individuals recognized by peers as curators; Artists, art critics; art historians; art collections managers, professors of art, art collectors, art fabricators art preparaiors; and other persons with considerable visual arts experience as well as architects and landscape architects). PAr' Appliratinn papa 1 r,f 7 PUBLIC ART COMMITTEE MEMBERSHIP APPLICATION sp- thtifietl Port -f San Diego PROFESSIONAL AND/OR VOLUNTEER EXPERIENCE Please provide a brief bio highlighting your visual arts experience below. INTEREST• ❑ Interest in contributing to the development of the Port's public art activities. Please tell us why you ore interested in serving on the PAC? What could you contribute to the PAC? AVAILABILITY ❑ Ability to commit to volunteering time to serve on the PAC, as well as selection panels on on as needed basis. Are you able to commit to volunteering time to serve on the PAC, as well as selection panels on an as needed basis? Please elaborate on your availability. (The Public Art Committee meets once bi-monthly with occasional additional meetings.) ADDITIONAL REQUIREMENTS• ❑ Resume ❑ Three References APPLICATION PROCEDURES; _ Thank you for completing this application form and for your interest in serving on the PAC. All application materials (including resume and three references) should be submitted (in electronic .PDF format) to: Yvonne Wise at the Public Art Office at ywiseportotsandiego.org. Once the application is received at the Public Art Office, it will be reviewed by staff to ensure all necessary information is included. PAC vacancies are filled on an as needed basis. The Public Art Office may retain the applications of individuals who are not appointed to the PAC for consideration at a later date. The tillable .PDF version of this application form is available at http://www.portofsa nd iego.org/pub tic-art/get-ad-committee-info.html If you have questions, please call 619.686.646E or send an email to: ywise@portofsandiego.org. PAC Application, page 2 of 2 TING DATE: CITY OF NATIONAL CITY, CALIFORNIA COMMUNITY DEVELOPMENT COMMISSION COUNCIL AGENDA STATEMENT July 19th, 2011 AGENDA ITEM NO. 44 ITEM TITLE: Authorize the reimbursement of Community Development Commission expenditures in the amount of $5,934.46 to the City of National City for the period of 6/15/11 through 06/21/11. PREPARED BY: K. Apalategui DEPARTMENT: j Finance PHONE: 019-336-4331 APPROVED 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 $5,934.46 ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Accept and File. BOARD / COMMISSION RECOMMENDATION: N/A 'ACHMENTS: Warrants for the period of 6/15/11 through 06/21/11 PAYEE IKON OFFICE SOLUTIONS U S BANK VERIZON WIRELESS VISTA PAINT WESTFLEX INDUSTRIAL N COMMUNITY DEVELOPMENT COMMISSION WARRANT REGISTER #51 6/21/2011 DESCRIPTION COPIER MAINTENANCE/SUPPLY BILLINGS CREDIT CARD EXP - COMM DEV WIRELESS SERVICE FOR ALL CITY MOP 68834 GRIZZLIER BROWN MOP 63850 MATERIAL & SUPPLY CHK NO DATE 242312 6/21/11 242313 6/21/11 242314 6/21/11 242315 6/21/11 242316 6/21/11 AMOUNT 4,305.12 30.00 219.66 1,272.19 107.49 A/P Total $ 5,934.46 Total disbursements paid with City's Funds $ 5,934.46 GRAND TOTAL $ 5,934.46 ETING DATE: CITY OF NATIONAL CITY, CALIFORNIA COMMUNITY DEVELOPMENT COMMISSION COUNCIL AGENDA STATEMENT July 19th, 2011 AGENDA ITEM NO. 145 ITEM TITLE: Authorize the reimbursement of Community Development Commission expenditures in the amount of $123,706.41 to the City of National City for the period of 6/22/11 through 06/28/111 PREPARED BY: IK. 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: Financ APPROVED 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: �,� F' ante ACCOUNT NO. APPROVED: MIS Approve the reimbursement of funds to the City of National City in the amount of $123,706.41 ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: (Accept and File. BOARD / COMMISSION RECOMMENDATION: N/A fACHMENTS: Warrants for the period of 6/22/11 through 06/28/11 lat'ORAM I) COMMUNITY DEVELOPMENT COMMISSION WARRANT REGISTER #52 6/28/2011 PAYEE ALL COUNTIES COURIER INC CHRISTENSEN & SPATH LLP DIXIELINE BUILDERS E2 MANAGE TECH INC LASER SAVER INC MAINTEX INC N C CHAMBER OF COMMERCE PRO BUILD PRUDENTIAL OVERALL SUPPLY SAN DIEGO TROLLEY INC VISTA PAINT HARRIS & ASSOCIATES INC PUBLIC EMP RETIREMENT SYSTEM PAYROLL Pay period Start Date 13 5/31/2011 DESCRIPTION DELIVERY SERVICES / REDEV LEGAL SERVICES / MAY 2011 REIM/ CASA QUINTA & CASA FAMILIAR ENVIRONMENTAL CONSULT/2/26-4/01/11 MOP# 45725. INK CARTRIDGES/SEC 8 4 CORNER TURKISH TOWELS 25LB/CS NC INFORMATION & OUTREACH PROGRAM MOP#45707. PAINTING SUPPLIES/NSD MOP# 45742. LAUNDRY SERVICES/NSD FLAGGING SERVICES 5/25/2011 MOP# 68834. PAINTING SUPPLIES/NSD 8TH ST. SMART GROWTH, SERVICES 5/31 SERVICE PERIOD 6-11-3 OTHER DISBURSEMENTS PAID WITH CDC FUNDS SECTION 8 HAPS PAYMENTS End Date 6/13/2011 Check Date 6/22/2011 CHK NO DATE AMOUNT 242395 6/28/11 11.45 242396 6/28/11 5,762.50 242397 6/28/11 6,754.45 242398 6/28/11 5,034.83 242399 6/28/11 509.91 242400 6/28/11 322.47 242401 6/28/11 10, 000.00 242402 6/28/11 1,194.73 242403 6/28/11 13.87 242404 6/28/11 44.70 242405 6/28/11 411.05 242421 6/28/11 18,226.74 242435 6/28/11 -2,864.98 AIP Total $ 45.421.72 78,284.69 Total disbursements paid with City's Funds $ 123 706.41 Start Date End Date 6/22/2011 6/28/2011 6,340.20 GRAND TOTAL $ 130.046.61 ---ETING DATE: CITY OF NATIONAL CITY, CALIFORNIA COMMUNITY DEVELOPMENT COMMISSION COUNCIL AGENDA STATEMENT July 19, 2011 AGENDA ITEM NO. 46 ITEM TITLE: Resolution of the Community Development Commission of the City of National City authorizing its Chairman to execute a Subordination Agreement with Amalia Ochoa allowing a new mortgage of $76,100 to be and remain a lien prior and superior to a First -Time Home Buyer assistance loan of $17,358 issued by the CDC on a single -unit property located at 915 Olive Avenue in National City PREPARED BY: Carlos Aguirre PHONE: 619 336-4391 EXPLANATION: I` DEPARTMENT: Adminstrative Services APPROVED The CDC made a loan for $17,358 from HOME Investment Partnerships Act funds to Amalia Ochoa ("Borrower") on October 19, 1995 to assist an eligible low-income family in the purchase of a single-family house located at 915 Olive in National City. The existing CDC loan is an enforceable obligation entered into before June 29, 2011. The CDC loan is fully deferred until 2028 as long as the residence is occupied by the Borrower and the Borrower performs under all other Covenants and Agreements contained in the Deed of Trust of the CDC loan. The Borrower is interested in refinancing the debt on the property and has been approved for a new loan with Union Bank. The new lender is requiring that the CDC execute a subordination agreement (Attachment No.1) allowing the new loan to hold superior position to the CDC -issued loan. The CDC loan will maintain second lien position on the property. The purpose of the refinance is to allow the -rower to reduce the interest rate paid on their current mortgage at 7.875% to approximately 4.5%. There be no cash proceeds to the Borrower through an escrow of the refinance transaction. The new combined loan -to -value ratio will be 42% as substantiated by a current appraisal of the property at $225,000. FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: There is no fiscal impact associated with this request. ENVIRONMENTAL REVIEW: The subordination agreement is exempt from environmental review. ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Staff recommends the approval of the resolution to execute the subordination agreement. BOARD / COMMISSION RECOMMENDATION: There is no board or commission recommendation required for the subordination agreement. rACHMENTS: 1. Subordination Agreement RESOLUTION NO. 2011 — RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AUTHORIZING THE CHAIRMAN TO EXECUTE A SUBORDINATION AGREEMENT WITH AMALIA OCHOA ALLOWING A NEW MORTGAGE OF $76,100 TO BE AND REMAIN A LIEN PRIOR AND SUPERIOR TO A FIRST-TIME HOMEBUYER ASSISTANCE LOAN OF $17,358 ISSUED BY THE CDC ON A SINGLE -UNIT PROPERTY LOCATED AT 915 OLIVE AVENUE IN NATIONAL CITY WHEREAS, the Community Development Commission of the City of National City ("CDC") made a loan of $17,358 ("CDC Loan") from HOME Investment Partnerships Act funds to Amalia Ochoa ("Borrower") on October 19, 1995, to assist an eligible low-income family in the purchase of a single-family located at 915 Olive Ave in National City; and WHEREAS, the existing CDC Loan is an enforceable obligation entered into before January 1, 2011; and WHEREAS, the CDC Loan is fully deferred until 2028, as long as the residence is occupied by the Borrower and the Borrower performs under all other Covenants and Agreements contained in the Deed of Trust of the CDC Loan; and WHEREAS, the Borrower is interested in refinancing the debt on the property and has been approved for a new loan with Union Bank that requires the CDC to execute a Subordination Agreement allowing the new loan to hold superior position to the CDC -issued loan that will maintain second lien position on the property; and WHEREAS, the purpose of the refinance is to allow the borrower to reduce the interest rate paid on their current mortgage at 7.875% to approximately 4.5% with no cash proceeds to the Borrower through the escrow tied to the refinance; and WHEREAS, maintaining a second lien position pursuant to the borrower refinancing to a lower interest rate without a cashout acts to further preserve and secure the City interest on the property. NOW, THEREFORE, BE IT RESOLVED that the Community Development Commission of the City of National City hereby authorizes the Chairman to execute a Subordination Agreement in favor of a new first trust deed with Union Bank, and to execute any additional escrow documents required to comply with the terms and conditions of said Subordination Agreement. Said Subordination Agreement is on file in the Office of the City Clerk. PASSED and ADOPTED this 19th day of July, 2011. Ron Morrison, Chairman ATTEST: APPROVED AS TO FORM: Brad Raulston, Secretary Claudia G. Silva CDC General Counsel RECORDING REQUESTED BY TICOR TITLE COMPANY OF CALIFORNIA Attachment No. 1 AND WHEN RECORDED MAIL TO: "OMMUNITY DEVELOPMENT l'OMMISSION CITY OF NATIONAL CITY 1243 NATIONAL CITY BLVD NATIONAL CITY, CA 91950 ORDER NO.: 00015154-019-CH6 SPACE ABOVE THIS LINE FOR RECORDER'S USE SUBORDINATION AGREEMENT NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT. THIS AGREEMENT, made this 19th day of July 2011 by Amalia Ochoa, an unmarried woman owner of the land hereinafter described and hereinafter referred to as "Owner", and The Community Development Commission of the City of National City, a corporation present owner and holder of the deed of trust and note first hereinafter described and hereinafter referred to as "Beneficiary". WITNESSETH THAT WHEREAS, Owner has executed a deed of trust, dated 10/19/1995 to Not Shown as trustee, covering: LOT 16 OF SUSAN MANOR, IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 3416, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, APRIL 24, 1956. to secure a note in the sum of S17, 358.00 , dated 10/19/1995 in favor of The Community Development Commission of The City of National City, a Corporation, which deed of trust was recorded October 20, 1995, Official Records of said county; and WHEREAS.. Owner has executed, or is about to execute, a deed of trust and note in the sum of $76,100.00 , dated , in favor of Union Bank, N.A., hereinafter referred to as "Lender", payable with interest and upon the terms and conditions described therein, which deed of trust is to be recorded concurrently herewith; and WHEREAS, it is a condition precedent to obtaining said loan that said deed of trust last above mentioned shall unconditionally be and remain at all times a lien or charge upon the land hereinbefore described, prior and superior to the lien or charge of the deed of trust first above mentioned; and WHEREAS, Lender is willing to make said loan provided the deed of trust securing the same is a lien or charge upon the above described property prior and superior to the lien or charge of the deed of trust first above mentioned and provided that Beneficiary will specifically and unconditionally subordinate the lien or charge of the deed of trust first above mentioned to the lien or charge of the deed of trust in favor or Lender; and Page 1 of 3 Casuborda Order No.: 00015154-019-CH6 Attachment No. l WHEREAS, it is to the mutual benefit of the parties hereto that Lender make such loan to Owner; and Beneficiary is willing `hat the deed of trust securing the same shall, when recorded, constitute a lien or charge upon said land which is unconditionally wior and superior to the lien or charge of the deed of trust first above mentioned. NOW THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and other valuable consideration, the receipt and sufficiency of which consideration is hereby acknowledged, and in order to induce Lender to make the loan above referred to, it is hereby declared, understood and agreed as follows: (1) (2) (3) That said deed of trust securing said note in favor of Lender, and any renewals or extensions thereof, shall unconditionally be and remain at all times a lien or charge on the property therein described, prior and superior to the lien or charge of the deed of trust first above mentioned. That Lender would not make its loan above described without this subordination agreement. That this agreement shall be the whole and only agreement with regard to the subordination of the lien or charge of the deed of trust first above mentioned to the lien or charge of the deed of trust in favor of Lender above referred to and shall supersede and cancel, but only insofar as would affect the priority between the deeds of trust hereinbefore specifically described, any prior agreement as to such subordination including, but not limited to, those provisions, if any, contained in the deed of trust first above mentioned, which provide for the subordination of the lien or charge thereof to another deed or deeds of trust or to another mortgage or mortgages. Beneficiary declares, agrees and acknowledges that (a) He/She consents to and approves (i) all provisions of the note and deed of trust in favor of Lender above referred to, and (ii) all agreements, including but not limited to any loan or escrow agreements, between Owner and Lender for the disbursement of the proceeds of Lender's loan; Lender in making disbursements pursuant to any such agreement is under no obligation or duty to, nor has Lender represented that it will, see to the application of such proceeds by the person or persons to whom Lender disburses such proceeds and any application or use of such proceeds for purposes other than those provided for in such agreement or agreements shall not defeat the subordination herein made in whole or in part; c) He/She intentionally and unconditionally waives, relinquishes and subordinates the lien or charge of the deed of trust first above mentioned in favor of the lien or charge upon said land of the deed of trust in favor of Lender above referred to and understands that in reliance upon, and in consideration of, this waiver, relinquishment and subordination specific loans and advances are being and will be entered into which would not be made or entered into but for said reliance upon this waiver, relinquishment and subordination; and (d) An endorsement has been placed upon the note secured by the deed of trust first above mentioned that said deed of trust has by this instrument been subordinated to the lien or charge of the deed of trust in favor of Lender above referred to. NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH ALLOWS THE PERSON OBLIGATED ON YOUR REAL PROPERTY SECURITY TO OBTAIN A LOAN A PORTION OF WHICH MAY BE EXPENDED FOR OTHER PURPOSES THAN IMPROVEMENT OF THE LAND. (h) The Community Development Commission of the City of National City, a corporation By: Ron Morrison, Chairman Amalia Ochoa Beneficiary Owner (All signatures must be acknowledged) Form Furnished By Ticor Title Company of California IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO. (SUBORDINATION FORM "A") Deed of Trust to New Deed of Trust Page 2 of 3 Casuborda CITY OF NATIONAL CITY, CALIFORNIA COMMUNITY DEVELOPMENT COMMISSION COUNCIL AGENDA STATEMENT METING DATE: July 19, 2011 AGENDA ITEM NO. 47 it EM TITLE: Disclosure of Property Interest located within the Redevelopment Project Area; Chairman Ron Morrison PREPARED BY: Claudia G. Silva DEPARTMENT: C PHONE: (Ext. 4222) APPROVED BY: EXPLANATION: On March 1, 2011, pursuant to Health and Safety Code Section 33130, a Disclosure of Chairman Morrison's property interest located within the Redevelopment Project Area was entered into the minutes of the City Council and CDC meeting. Chairman Morrison no longer has such property interest. This entry into the minutes is intended to memorialize the end of the former property interest. FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Enter disclosure on the minutes. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: Memorandum from CDC General Counsel 2. Memorandum from Chairman Morrison Chairman Ron Morrison Members I 'is `Louie' Natividad ma Rios ajandra Sotelo-Solis nosalie Zarate Executive Director Brad Raulston ,�l=' INCORPORATED City of National City Community Development TO: Executive Director, CDC DATE: July 6, 2011 FROM: CDC General Counsel SUBJECT: Disclosure of Property Interest Located Within Redevelopment Project Area — Property Interest No Longer Exists BACKGROUND Attached is a Disclosure of Property Interest Located within the Redevelopment Project Area signed by Chairman Ron Morrison. Section 33130 of the Health and Safety Code (the Community Redevelopment Law) requires that such a statement be entered on the minutes of the redevelopment agency and of the legislative body (the CDC). A Disclosure of Property Interest by Chairman Morrison was entered into the minutes of the City Council and CDC meeting on March 1, 2011. This subsequent disclosure states the property interest no longer exists. RECOMMENDED ACTION It is requested that this disclosure be entered on the minutes of he City Council and CDC at their meeting of July 19, 2011. /gm Attachment AMA C Rb DIA G. VA CDC General t sel 1243 National City Boulevard; National City, California 91950 Tel.: (619) 336.4250 Fax: (619) 336.4286 www.nationalcityca.qov +r+ CALIFORNIA_. O3 INCORPORATED _ TO: Executive Director, CDC FROM: Chairman Ron Morrison SUBJECT: Disclosure of Property Interest Located within Redevelopment Project Area — Property Interest No Longer Exists DATE: July 7, 2011 Pursuant to Section 33130 of the Ilealth and Safe Code, please enter into the minutes of the March 1, 2011 CDC meeting the fact that as of S ' Z y , 2011, I no longer own or have direct or indirect financial interests in the following property located within the National City Redevelopment Project Area: 2740 K Avenue National City, CA 91950 Ron Morrison Chairman Mayor Ron Morrison 1243 National City Boulevard, National City, CA 91950-4301 619/336-4233 Fax 619/336-4239 www.nationalcityca.gov .. is ITEM #48 7/19/11 HABITAT FOR HUMANITY ORIENTATION MEETING (HOUSING-GRANTS/ADMINISTRATIVE SERVICES) ITEM #49 7/19/11 CLOSED SESSION REPORT (CITY ATTORNEY)