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Home My WebLink About2011 11-01 CC CDC AGENDA PKTi Agenda Of A Regular Meeting — National City City Council / Community Development Commission of the City of National City Council Chambers Civic Center 1243 National City Boulevard National City, California Regular Meeting — Tuesday — November 1, 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 interpretacibn en espanol se proporciona durante sesiones del Consejo Municipal. Los audidfonos estan disponibles en el pasillo al principio de la junta. Council Requests That All Cell Phones And Pagers Be Turned Off During City Council Meetings COPIES OF THE CITY COUNCIL OR COMMUNITY DEVELOPMENT COMMISSION MEETING AGENDAS AND MINUTES MAY BE OBTAINED THROUGH OUR WEBSITE AT www.nationalcitvca.gov CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION AGENDA 11/1/2011 - Page 2 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. 1. 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) 2. Resolution of the City Council of the City of National City authorizing an appropriation of 2011 Tax Allocation Bond funds in the amount of $11,610 for the preparation of an application by Kimley-Horn and Associates, Inc., for Proposition 84 — Urban Greening Grant Program funds in the amount of $700,000 with a $125,000 match, for the Hoover Avenue Park element of the Paradise Creek Enhancement Project. (Engineering) 3. Resolution of the City Council of the City of National City awarding a contract to Black Rock Construction Company in the amount not -to -exceed $145,797.50, inclusive of Change Order 1 in the amount of $56,000 and authorize a 10% contingency in the amount of $14,579 for any unforeseen changes to the project for the National City Concrete Improvements Project, Specification 11-06. (Funded CDBG & CDBG-R funds) (Development Services/Engineering Division) 4. Temporary Use Permit — Sweetwater Harley Davidson "Birthday Party for Janice Castillo" at 3201 Hoover Avenue on November 4, 2011 from 8:00 p.m. to 1:30 a.m. with no waiver of fees. (Neighborhood Services) 5. Temporary Use Permit — Christmas Tree Lighting hosted by the Community Services Department on December 8, 2011 from 5:00 pm to 8:00 pm at Morgan Square, between "A" Avenue and National City Boulevard. This is a City sponsored event under Policy No. 804. (Neighborhood Services) CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION AGENDA 11/1/2011 - Page 3 CONSENT CALENDAR (Cont.) 6. WARRANT REGISTER #14 Warrant Register #14 for the period of 09/28/11 through 10/04/11 in the amount of $1,403,885.57. (Finance) 7. WARRANT REGISTER #15 Warrant Register #15 for the period of 10/05/11 through 10/11/11 in the amount of $385,137.74. (Finance) PUBLIC HEARINGS 8. Public Hearing to consider an Ordinance amending Title 18 (Zoning) of the National City Municipal Code by amending Section 18.29.070 pertaining to the Floodway Overlay Zones. (Applicant: City initiated) (Case File 2011-25 A) (Development Services/Planning) **Companion Item #10** 9. Public Hearing — Street Vacation vacating a portion of D Avenue, south of 31st Street, and a portion of 32"d Street, east of D Avenue to allow construction of the 165,000 square -foot Gateway project. (Applicant: Sudberry Properties, Inc.) (Case File No. 2008-37 SC) (Development Services/Planning) ORDINANCE FOR INTRODUCTION 10. An Ordinance of the City Council of the City of National City amending Title 18 (Zoning) of the National City Municipal Code by amending Section 18.29.070 pertaining to the Floodway Overlay Zones. (Applicant: City initiated) (Case File 2011-25 A) (Development Services/Planning) **Companion Item #8** ORDINANCE FOR ADOPTION 11. An Ordinance of the City Council of the City of National City amending Section 1.40.010 of the National City Municipal Code regarding Claims for Money,. Damages or Refunds of Money. (City Attorney) CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION AGENDA 11/1/2011 - Page 4 NON CONSENT RESOLUTION 12. Resolution of the City Council of the City of National City certifying a Mitigated Negative Declaration and adopting a Mitigation Monitoring & Reporting Program for the 165,000 square -foot Gateway Project. (Applicant: Sudberry Properties, Inc.) (Case File No. 2008-37-IS) (Development Services/Planning) NEW BUSINESS 13. Notice of Decision — Planning Commission approval of a Conditional Use Permit and Minor Use Permit for construction of the 165,000 square -foot Gateway project, and zone variance for less than required parking. (Applicant: Sudberry Development, Inc.) (Case File 2008-37 CUP, MUP, Z) (Development Services/Planning) 14. Notice of Decision — Planning Commission approval of a Conditional Use Permit for the construction of a foodmart with accessory beer and wine sales at an existing Shell gas station at 1601 East 81" Street. (Applicant: Vintners Distribution, Inc.) (Case File 2011-03 CUP) (Development Services/Planning) 15. City Council approval of the Investment Management Committee recommendation to select Chandler Asset Management to provide Investment Management Services for the City of National City. (City Manager) 16. City Council approval for the City of National City to participate in the County of San Diego Investment Pool. (City Manager) 17. National City's 1251" Year Celebration. (City Manager) 18. City Council Policy Manual Review Request. (City Manager) 19. Presentation to the City Council on Crime/Cold Case Update. (Police) CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION AGENDA 11/1/2011 - Page 5 COMMUNITY DEVELOPMENT COMMISSION CONSENT CALENDAR 20. Authorize the reimbursement of Community Development Commission expenditures in the amount of $49,416.64 to the City of National City for the period of 09/28/11 through 10/04/11. (Finance) 21. Authorize the reimbursement of Community Development Commission expenditures in the amount of $4,880.03 to the City cf National City for the period of 10/05/11 through 10/11/11. (Finance) STAFF REPORTS 22. Staff Report — Update on AB-X-27 - Redevelopment Appeal. (City Manager) 23. Staff Report - $500,000 Federal Safe Routes to School Grant Award. (Development Services/Engineering) 24. Closed Session Report (City Attorney) MAYOR AND CITY COUNCIL ADJOURNMENT Regular City Council and Community Development Commission Meeting — Tuesday — November 15, 2011 — 6:00 p.m. — Council Chambers — National City, California (Please see attached Modified City Council Meeting Schedule) OFFICE OF THE CITY CLERK 1243 National City Blvd. National City, California 91950 Michael R. Dalla, CMC - City Clerk 619-336-4228 phone / 619-336-4229 fax NOTICE OF MODIFIED CITY COUNCIL MEETING SCHEDULE Please be advised that the City Council has adopted the following modified meeting schedule for December 2011 and January 2012. 2011 December 6 2012 January 10 January 24 Meeting — 6:00 p.m. Meeting — 6:00 p.m. Meeting — 6:00 p.m. Beginning in February 2012, the normal City Council Meeting Schedule (the first and third Tuesday of the month) will resume. City of National City Office of the City Clerk 1243 National City Boulevard, National City, CA 91950-4397 Michael R. Dalla, CMC - City Clerk (619) 336-4228 Fax: (619) 336-4229 To: Honorable Mayor and Council From: Michael R. Dalla, City Clerk Subject: Ordinance Introduction and Adoption ITEM #1 • 2I/1/11 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: November 1, 2011 AGENDA ITEM NO. EM TITLE: Resolution of the City Council of the City of National City authorizing an appropriation of 2011 Tax Allocation Bond funds in the amount of $11,610 for the preparation of an application by Kimley-Horn and Associates, Inc., for Proposition 84 — Urban Greening Grant Program funds in the amount of $700,000, with a $125,000 match, for the Hoover Avenue Park element of the Paradise Creek Enhancement Project PREPARED BY: Colby Young C DEPARTMENT: Engine ri PHONE: (619) 336-4297 APPROVED B --- EXPLANATION: On October 5, 2010, the City Council adopted Resolution No. 2010-227, approving an agreement with Kimley-Horn & Associates Inc., for a two-year period to provide on -call general engineering, construction inspections, and project management services for various capital improvement projects for the not -to -exceed amount of $100,000. An Amendment was approved on July 5, 2011, by Resolution No. 2011-142, to increase the not -to -exceed amount by an additional $100,000. On May 10, 2011, National City authorized KHA to prepare three Urban Greening Concept Proposals for the first phase (of two) of the Proposition 84 -Urban Greening Grant Program, which was created to expand green space and parks. The state of California has invited National City to submit a full application for the Hoover Avenue Park Concept. A successful application may award the City of National City $700,000 to develop the Hoover Avenue Park Concept element of the Paradise Creek Enhancement project, and will require a grant match of $125,000 (grant match will be paid with 2011 Tax Allocation Bond). Should the application not receive an award this funding cycle, it may be resubmitted in the final cycle. In order to meet the grant submittal deadline of November 17, 2011, the City Engineer authorized KHA to begin preparing the application on October 24, 2011, under their on -call eement dated October 5, 2010, and amended July 5, 2011. FINANCIAL STATEMENT: APPROVED: �" ?' Finance ACCOUNT NO. 524-409-500-598-4135 APPROVED: MIS $11,610 is available in the 2011 Tax Allocation Bond to appropriate to 524-409-500-598-4135 (Finance Department will create account upon approval by City Council). No pledge of General Funds is being made. ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt resolution BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: RESOLUTION NO. 2011 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING AN APPROPRIATION OF 2011 TAX ALLOCATION BOND FUNDS IN THE AMOUNT OF $11,610 FOR THE PREPARATION OF AN APPLICATION BY KIMLEY-HORN AND ASSOCIATES, INC., FOR PROPOSITION 84 - URBAN GREENING GRANT PROGRAM FUNDS IN THE AMOUNT OF $700,000, WITH A $125,000 MATCH, FOR THE HOOVER AVENUE PARK ELEMENT OF THE PARADISE CREEK ENHANCEMENT PROJECT WHEREAS, on October 5, 2010, the City Council adopted Resolution No. 2010- 227, approving an agreement with Kimley-Horn & Associates Inc. ("KHA"), for a two-year period to provide on -call general engineering, construction inspections, and project management services for various capital improvement projects for the not -to -exceed amount of $100,000; and WHEREAS, an Amendment was approved on July 5, 2011, by Resolution No. 2011-142, to increase the not -to -exceed amount by an additional $100,000; and WHEREAS, on May 10, 2011, KHA was tasked with preparing three Urban Greening Concept proposals for the first of two phases of the Proposition 84 - Urban Greening Grant Program, which was created to expand green space and parks; and WHEREAS, the state of California has invited National City to submit a full application to the Proposition 84 - Urban Greening Grant Program for the Hoover Avenue Park Concept for the Paradise Creek Enhancement Project; and WHEREAS, if approved for the grant, National City would receive $700,000, with a $125,000 local match, to develop the Hoover Avenue Park element of the Paradise Creek Enhancement Project; and WHEREAS, in order to meet the grant submittal deadline of November 17, 2011, the City Engineer authorized KHA to begin preparing the grant application on October 24, 2011, under their on -call Agreement dated October 5, 2010, and amended July 5, 2011. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the appropriation of 2011 Tax Allocation Bond funds in the amount of $11,610 for the preparation of an application by Kimley-Horn & Associates Inc., for Proposition 84 - Urban Greening Grant Program funds in the amount of $700,000, with a $125,000 match, for the Hoover Avenue Park Element of the Paradise Creek Enhancement Project. PASSED and ADOPTED this 1st day of November, 2011. Ron Morrison, Mayor ATTEST: APPROVED AS TO FORM: Michael R. Dalla, City Clerk Claudia Gacitua Silva, City Attorney CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: November 1, 2011 AGENDA ITEM NO. 3 EM TITLE: Resolution of the City Council of National City awarding a contract to Black Rock Construction Company, in the amount not -to -exceed $145,797.50, inclusive of Change Order 1 in the amount of $56,000 and authorize a 10% contingency in the amount of $14,579 for any unforeseen changes to the project for the National City Concrete Improvements Project, Specification 11-06. (Funded CDBG & CDBG-R funds) PREPARED BY: Barby Tipton PHONE: 336-4583 EXPLANATION: See attached APPROVED BY: DEPARTMENT: Developm4es-Engineering Divisio FINANCIAL STATEMENT: APPROVED: Finance ACCOUNT NO. APPROVED: MIS Funds are available in expenditure account 301-409-500-598-6137 (Concrete Improvements) in the amount of $145,797.50 ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt the Resolution. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: . Explanation L. Cost Proposal worksheet (three lowest bidders) 3. Resolution On October 3, 2011, four bids were received and opened for the City of National City Concrete Improvement Project, Specification 11-06. The lowest responsive bidder was Black Rock Construction Company with a proposed bid amount of $89,797.50. There was a typographical error on the bid documents that listed the units bid for ADA pedestrian ramps as "SF" (per square foot) instead of "EA" (each). The bidding contractors were aware of this but had to bid the line item for the project as presented. Prices received for the "square foot price" are consistent with the industry for a square foot price of ADA pedestrian ramp. The apparent low bidder, Black Rock Construction Company's bid for this line item is $20.00 per square foot. An expected bid price for "each" pedestrian ramp would be between $1,500 and $2,000. The City wished to install 32 pedestrian ramps instead of 24 square feet of pedestrian ramp. Due to the excellent low bid prices the City would like to increase the ADA pedestrian ramp square footage to add 2,800 square feet at the contractor's price of $20.00 per square foot for an additional cost of $56,000. This will construct an estimated 32 ADA pedestrian ramps. The Contractor and the City agree to add 2,800 square feet to the square foot units of line item #2,"Remove and Replace Pedestrian Ramps per G-28, G-29, or G-31 with Truncated Domes (G-30)", of the San Diego Regional Standard Drawings and that the Contractor will install these ramps per the contract documents. The Contractor and City agree that the Contractor shall be paid for all additional square footage in excess of the original bid amount of 24 square feet by up to an additional 2,800 square feet at the original bid cost of $20.00 per square foot and that all costs and requirements of the original bid shall apply and there shall be no other additional costs or deductions. This Change Order requires Council approval before it can become part of the contract. The bid opening information sheet and the cost proposal worksheet for the three lowest bidders are attached for your information. Black Rock Construction Company has satisfactorily performed this type of work in the past for the City and therefore is found to be qualified for such construction improvements. Staff reviewed bid documents and recommends that Council award the contract to Black Rock Construction Company in the not to exceed amount of $145,797.50 that includes Change Order 1 in the amount of $56,000 and authorize a 10% contingency in the amount of $14,579 for any unforeseen changes to the project. L:oncrtmprovements Project akack Rock Construction Crest Equipment Pal GenEngineering UNIT PRICE AMOUNT 72,000.00 NO. ITEM QTY gurNIT UNIT PRICE AMOUNT UNIT PRICE AMOUNT 1 Remove and Replace PCC SideWalk Panels (G-7) 8000 SF 6.75 54,000.00 6.75 54,000.00 9 2 Remove and Replace Pedestrian Ramps per G-28, G- 24 SF 20 480.00 22.5 540.00 75 1,800.00 3 Remove and Replace Driveway Apron Per G-14 692 SF 8.75 6,055.00 12 8,304.00 12 8,304.00 4 Remove and Replace (in -kind) Curb & Gutter per 65 LF 40 2,600.00 36 2,340.00 59 3,835.00 5 Remove and Replace Curb only per G-1 98 LF 30 2,940.00 29 2,842.00 39 3,822.00 6 Remove and stump trees, re grade 4 EA 500 2,000.00 800 3,200.00 1250 5,000.00 7 Preserve historic Stamps in Concrete 2 EA 150 300.00 500 1,000.00 250 500.00 8 Remove and Replace Unsuitable Subgrade with 50 TN 85 4,250.00 48 2,400.00 90 4,500.00 9 Remove and Replace Alley Apron (G-17) 374 SF 8.75 3,272.50 12 4,488.00 8 2,992.00 10 Variable Thickness Asphalt Concrete 90 TN 150 13,500.00 185 16,650.00 179 16,110.00 11 Install Root Barriers 40 LF 10 400.00 28 1,120.00 25 1,000.00 Additive #1 (not awarded) Total: 89,797.50 96,884.00 119,863.00 .Remove:&:Replaee:PCG: Sidewalk: Panels (G 7) ;: 3360 4 300 . >;: SF: ; (i;75. '' $22;680.00 6.75 3 ?$:22,68:0.00 ' 11 -: $36 960.00: H. Reinove and Replace Pedestrian Ramp per G-28; G-29, or:G 31 with truncated domes (G-3Q) EA: 2000 . <: $8,000.00 2800:'• Sl 1:,200.00 1975 $7,900.00: Remove:& Replace•Mriueway; Apron (G-14). SF: 9 $2,700.00 12 :; :: $3,600.00. 9 $2' 700.00 :: Grand Total: $ 123,177.50 $ 134,364.00 $ 167,423.00 RESOLUTION NO. 2011 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AWARDING A CONTRACT TO BLACK ROCK CONSTRUCTION COMPANY IN THE AMOUNT OF $145,797.50, INCLUSIVE OF CHANGE ORDER NO. 1 IN THE AMOUNT OF $56,000, AND AUTHORIZING A 10% CONTINGENCY IN THE AMOUNT OF $14,579 FOR ANY UNFORESEEN CHANGES TO THE NATIONAL CITY CONCRETE IMPROVEMENTS PROJECT WHEREAS, the Engineering Division of the Development Services Department, in open session on October 3, 2011, did publicly open, examine, and declare four sealed bids for the National City Concrete Improvements Project ("Project"); and WHEREAS, the City desires to increase the ADA pedestrian ramp square footage by 2,800 square feet, from the original bid amount of 24 square feet, which requires a change order in the amount of $56,000; and WHEREAS, a 10% contingency amount up to $14,579 for unforeseen changes to the Project is requested. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby awards the contract for the National City Concrete Improvements Project to the lowest responsive, responsible bidder, to wit: BLACK ROCK CONSTRUCTION COMPANY BE IT FURTHER RESOLVED by the City Council of the City of National City that the Mayor is hereby authorized to execute on behalf of the City a contract in the amount of $145,797.50 with Black Rock Construction Company for the National City Concrete Improvements Project. Said contract is on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the Mayor is hereby authorized to execute on behalf of the City Change Order No. 1 in the amount of $56,000 to add 2,800 square feet of ADA pedestrian ramps to what was originally stated in the bid package, which amount is already included in the contract amount of $145,797.50. Said Change Order No. 1 is on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the City Council hereby authorizes a 10% contingency amount up to $14,579 for unforeseen changes to the Project. PASSED and ADOPTED this lst day of November, 2011. Ron Morrison, Mayor ATTEST: APPROVED AS TO FORM: Michael R. Della, City Clerk Claudia Gacitua Silva, City Attorney CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: November 1, 2011 AGENDA ITEM NO. 4 EM TITLE: TEMPORARY USE PERMIT — Sweetwater Harley Davidson `Birthday Party for Janice Castillo" at 3201 Hoover Avenue on November 4, 2011 from 8:00 p.m. to 1:30 a.m. with no waiver of fees. PREPARED BY: Vianey Rolon PHONE: (619) 336-4364 EXPLANATION: DEPARTMENT: Nei APPROVED BY: Services Division This is a request from the Sweetwater Harley Davidson to conduct a birthday party for Janice Castillo with about 100-invited guest. There will he a DJ, food and a bar set up on the roof deck of property Event organizers have requested approval for the sale/consumption of alcoholic beverages pending approval from the Alcohol and Beverage Control Agency (ABC). Private security will be provided and no city services are being requested. FINANCIAL STATEMENT: APPROVED: Finance ACCOUNT NO. APPROVED: MIS The City has incurred $237.00 for processing the TUP through various City Departments and a $200.00 inspection fee for after hour/weekend fire inspection (NCFD). Total Fees are $437.00 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 with no waiver of fees. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: lication for a Temporary Use Permit with recommended approvals and conditions of approval. Fax: Oct 0 2011 02:58pm P001/009 Type of Event: Public Concert Parade Motion Picture Event Title: Actual Event Hours: Event Location: ,� tf Event Date(s): From &Jt i 4 to ��j V. TetahXnticipated Attendance Ibb Month/pay/(Ear Participants) ( Spectators) Setup/assembly/construction Date: II-4-f/ Start time: 1 Fair Demonstration Grand Opening Festival Circus )(Other_ 6fr Community Event cjiYc4�Party Qc Please describe the scope of your setup/assembly work (specific details): r- _ Dismantle Date: It- 11 Completion Time: dam m List any strect(s) requiring closure as a result of this event. Include street name(s), day and time of closing and day and time of reopening. Sponsoring Organization: Chief Officer of Organization (Name) Applicant (Name): - Address: :30L_AQ►%ir Daytime Phone: (ifij 4'77 4477Evening Phone. 0?) I-5 f F (nA 477- 44 io Contact Person On site" day of the event ! / (� r. " I'- , - k L cV ntat t_ lefq-,I4-&-/AS Pager/Cellular NOTE: THIS PERSON MUST BE IN A 1 TENDANCE FOR THE DURATION OF THE EVENT AND IMMEDIATELY AVAILABLE TO CITY OFFICIALS z Jli.lkiik Nit'-1 t-;ADI( Fax: Oct 6 2011 02:58nm P002/009 Is your organization a `Tax Exempt, nonprofit' organization? ` YES NO Are admission, entry, vendor or participant fees required? YES K NO If YES, please explain the purpose and provide amount(s): Estimated Gross Receipts including ticket, product and sponsorship sales from this event Estimated Expenses for this event_ Whatis the projected arnount 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_ I 1'/4 414d L 4 Lire &sf AL?1rna4 vats_mil h, usJ duti.14 ' ivaf.- . ,7 YFS 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 Fax: Oct 6 2011 02:59pm P002/009 Xy YES NO Does the event involve the sale or use of alcoholic beverages? Li YES NO Will items or services be sold at the event? If yes, phase describe: fi 1 /Ai-rs 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 1 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 XNO Will the event involve the use of the City stage or PA system? In addition to the route map required above, please attach a diagram showing the overall layout and set-up locations for the following items: > Alcoholic and Nonalcoholic Concession and/or Beer Garden areas. > Food Concession and/or Food Preparation areas Please describe how food will be served at the event: If you intend to cook food in the event area please specify the method: GAS ELECTRIC _ CHARCOAL OTHER (Specify): > Portable and/or Permanent Toil t Facilities Number of portable toilets: (1 for every 250 people is required, unless the applicant can show that the 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 tenUcanopy 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 > 1 rash Containers and dumpsters (Note: You must properly dispose of waste and garbage throughout the term of your event and immediately upon conclusion of the event the area must be returned to a clean condition.) Number of trash cans ,3 Trash containers with lids: ,3 Describe your plan for clean-up and removal of waste and garbage during and after the event: /leati V1 1.4uss f dcn'll Ai Sc 071 -1 ' t 1-t propel ekt- — Attr 5 Fax: Oct 6 2011 02:59pm P004/009 Please describe your procedures for both Crowd Control and Internal Security: R RYES 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: X YES — NO Is this a night event? If YES, please state how the event and surrounding area will be illuminated to ensure safety of the participants and spectators: .1AvG bt; I,/G' LA xliuitG Please indicate what arrangement you have made for providing First Aid Staffing and Equipment. ahiudzi41tIlitacky- 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: Pier hot handifi 7a ki $pad! 4 Fax: Oct 6 2011 03:00pm PO05/009 Please describe your plans to notify all residents, businesses and churches impac;ed by the event: NOTE: Neighborhood residents must be notified 72 hours in advance when events are scheduled in the City parks. YES NO Are there any musical entertainment features related to your event? If YES, please state the number of stages, number of bands and type of music_ Number of Stages: Type of Music: e ' YES — NO Will sound ampfification be used? If YES, please indicate: Start time: R • DO am/Finish Time . : 3O m YES XNO 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 YES Number of Bands- 0 Fireworks, rockets, or other pyrotechnics? If YES, please describe. NO Any signs. banners, decorations, Special lighting? If YES, please describe. Revised 08110/05 5 Fax. Oct 6 2011 03:00pm P006/009 Event: Jor Office e Use G t j Department Date Approved? Yes No Initial Specific Conditions of Approval Council Meeting Date: Approved: Yes No Vote: Kathleen Trees, Director Building & Safety Department 6 Fax. Oct 6 2011 03.00pm P007/009 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 -5IA%044SY /49 (Vaso{ Person in Charge of Activity ty//041 fk. Address 3a0/ ' 1W1Vtr 4 Telephone 619-477-- ¢77 Date(s) of Use /% 4 -a 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 cow# rising out of or related to the use of public property or the rettvity take rider the Omit by the permittee or its agent.'., employees or &ontra9fors. me/af Ap 'cant Official Title For Office Use Only jedda, Date Certificate of Insurance Approved Date Fax. Oct 6 2011 01.01pm P008/009 Non-profit organizations, which meet the criteria on page v of the instructions. will be considered for a waiver It you would like to request a waiver of the processing fees, please complete the questionnaire below. 1. Is the event for which the TUP is sought sponsored by a non-profit organization? Yes (proceed to Question 2) No (Please sign the form and submit it with the TUP Application) 2. Please state the name and type of organization sponsoring the event for which the TUP is sought and then proceed to Question 3. Name of the sponsoring organization Type of Organization (Service Club, Church, Social Service Agency. etc.) 3. Will the event generate net income or proceeds t the sponsoring organization? Yes (Please proceed to Question 4) No (Please sign the form anu 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 Fax: Oct 6 2011 03:01pm P009/009 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 CITY OF NATIONAL CITY NEIGHBORHOOD SERVICES DIVISION APPLICATION FOR A TEMPORARY USE PERMIT RECOMMENDATIONS AND CONDITIONS SPONSORING ORGANIZATION: Sweetwater Harley Davidson EVENT: Birthday Party for Janice Castillo DATE OF EVENT: November 4, 2011 TIME OF EVENT: 8pm to 1:30am 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 [ 1 YES [ x ] NO [ ] YES [ x ] NO [ ] YES [x] NC) [ ] YES [ x ] NO [ ] SEE CONDITIONS SEE CONDITIONS SEE CONDITIONS SEE CONDITIONS SEE CONDITIONS SEE CONDITIONS SEE CONDITIONS SEE CONDITIONS CONDITIONS OF APPROVAL: DEVELOPMENT SERVICES (619) 336-4318 The speakers are to be faced away from residential areas. The appropriate ABC permit for alcohol needs to be obtained. RISK MANAGER (619) 336-4370 We see no signeu Hold Harmless / Indemnification form in the packet. Also we would like: 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 Public Works has no involvement in this event. FINANCE Approved, no stipulations FIRE (619) 336-4550 Stipulations required by the Fire Department for this event are as follows: 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) Access to Sweetwater Harley Davidson to be maintained at all times, to both entrances and Fire Department connections for fire sprinkler systems, standpipes, etc 3) Fire Department access into and through the event 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 14 feet 4) Fire Hydrants shall not be blocked or obstructed 5) Participants on foot are to move immediately to the sidewalk upon approach of emergency vehicle(s) 6) Vehicles in roadway arc to move immediately to the right upon approach of emergency vehicle(s). 7) Provide a 2A:I OBC 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. 8) If cooking booths arc used, booths to have one 2A:10BC on site. If grease or oil is used for 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 sec attached example. 9) If tents or canopies are used, tents having an area in excess of 200 square feet and or canopies in excess of 400 square feet or multiple tents and or canopies placed together equaling or greater than the above stated areas, are to be used, they shall be flame- retardant treated with an approved State Fire Marshal seal attached. A ten feet separation distance must be maintained between tents and canopies. A permit from the Fire Department must be obtained. Cooking shall not be permitted under tents or canopies unless the tents or canopies meet "State Fire Marshal approval for cooking. Please see Fire Department for direction. Certificate of State Fire Marshal flame resistancy shall be provided to the National City Fire Department if applicable. A permit for the projected canopies/tents shall be four hundred ($400.00) dollars. Fees can only be waived by City Council. Canopies: Tents: 0-400sf- $0 401 500 sf - S250.00 501 — 600 sf - $300.00 601 — 700 sf - $400.00 0 —200 sf - S200.00 201 —(I) sf-$400.00. 10) Fire Department access into and through the booth areas arc to be maintained at all times. 11) A fire safety inspection is to be conducted by the Fire Department prior to operations of the entire event. Fee for after hour/weekend inspection shall be $200.00 dollars for the first two hours. A fee of $100.00 dollars shall be charged for every hour (or part) after the first two hours. 12) Site map required. No site map included Note: Total fee amount for all Fire Department permits is ($200.00). Fees can only be waived by City Council. Please contact the Fire Department for assistance If you have any questions please feel free to contact me. COMMUNITY SERVICES Community Services has no comments for Harley Davidson event POLICE 1 have reviewed the Temporary Use Permit (TUP) for the Birthday Party for Janice Castillo at Sweetwater Harley Davidson. The event is scheduled to take place on November 4, 2011, 2000 — 0130 hours. Per the TUP, the event will take place entirely on the premises of Sweetwater Harley Davidson, 3201 Hoover Avenue. There will be a DJ present for entertainment. The event organizers have requested consumption of alcoholic beverages and food service. The Chief of Police is not opposed the request. The organizers list they have hired a private security company, Casper and Associates. Based upon my review of the TUP, no NCPD personnel will be required at the event. There are no NCPD stipulations regarding the event other than the event organizers must follow all laws, especially those regarding alcoholic beverages. -Dan Fahinski. Sergeant 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: November 1, 2011 AGENDA ITEM NO. 5 .. EM TITLE: TEMPORARY USE PERMIT — Christmas Tree Lighting hosted by the Community Services Department on December 8, 2011 from 5 pm to 8 pm at Morgan Square, between "A" Avenue and National City Boulevard. This is a City sponsored event under Policy No. 804. PREPARED BY: Vianey Rolon PHONE: (619) 336-4364 EXPLANATION: DEPARTMENT: Nei •or o'd Services Division APPROVED BY: This is a request from the Community Services Department to conduct the Christmas Tree Lighting event at Morgan Square on "A" Avenue between E. 9th Street and National City Boulevard on December 8, 2011. This event will include the lighting of the Christmas Tree Ceremony, musical performances, the Kimball Museum will be open and there will also be a Christmas Bazaar where food, drinks and various other items will be sold from booths. Street closures are required on "A" Avenue at E. 9th Street on Morgan Square and E. Plaza Blvd. FINANCIAL STATEMENT: APPROVED: Finance ACCOUNT NO. APPROVED: MIS The City has incurred $237.00.00 for processing the TUP through various City departments, plus $650.33 for Public Works. Total fees are $887.33 ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Approve the Application for a Temporary Use Permit subject to compliance with all conditions of approval. If approved, set fees are to be waived per City sponsored event Policy #804. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: >lication for a Temporary Use Permit with recommended approvals and conditions of approval. Type of Event: Public Concert Parade Motion Picture Event Title: Event Location Fair _ Demonstration Grand Opening Festival Circus Other Xommunity Event lock Party Ghee ericY aicciel (2,0,k) Event Date(s): From 12. U ID) -to ►Z l$,jl Total Anticipated Attendance: 2 S a Month/Day/Year ( Participants) Actual Event Hours: amer to 8 am/� ( Spectators) Setup/assembly/construction Date: CZ kJ 11 Start time: 3 Please describe the scope of your setup/assembly work (specific details): 50- up -row }curs / F Dismantle Date: 12. 18� i! Completion Time: / ame List any street(s) requiring closure as a result of this event. Include street narne(s), day and time of closing and day and time of reopening. a. We`p ^'� L.r';.n rod♦ �7 F 'T-It—va ve ^,. Sponsoring Organization: Chief Officer of Organization (Name) _ Applicant (Name): Law -ten Ono.it k - Address. I HO 12-81 a)IAe, For Profit ,Not -for -Profit Daytime Phone: (at- 1428q Evening Phone: ( ) Fax: O Contact Person "on site" day of the event: Pager/Cellular: NOTE: THIS PERSON MUST BE IN ATTENDANCE FOR THE DURATION OF THE EVENT AND IMMEDIATELY AVAILABLE TO CITY OFFICIALS 1 Is your organization a "Tax Exempt, nonprofit" organization? Are admission, entry, vendor or participant fees required? If YES, please explain the purpose and provide amount(s): NO 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. •`Ctpe 1� m..rprr,rrxi • flnUS\cp.mb-rcilS 1�im*a11 trvswm op2n kD cObi C food j6n fv,s Qor _ sokte cmci-s Qor 1Q 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: 7 _ 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` .VM) oc'tnxs/c c '-erN a1 YES O 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. 0 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. YESNO Will the event involve the use of the City stage or PA system? In addition to the route map required above, please attach a diagram showing the overall layout and set-up locations for the following items: Alcoholic and Nonalcoholic Concession and/or Beer Garden areas. Food Concession and/or Food Preparation areas Please describe how food will be served at the event: if you intend to cook food in the event area please specify the method: GAS ELECTRIC CHARCOAL OTHER (Specify): Portable and/or Permanent Toilet Facilities Number of portable toilets: (1 for every 250 people is required, unless the applicant can show that there are facilities in the immediate area available to the public during the event) Y Tables and Chairs 15 — cj' 1OO o rs u}n - 1p l(_J��Ces Fencing, barriers and/or barricades 1F�� • Generator locations and/or source of electricity • Canopies or tent locations (include tent/canopy dimensio ➢ 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: a5Q- h cbns or) s 3 ns) n Get, on f sic01 gCf�,i . Please describe your procedures for both Crowd Control and Internal Security: YES\LTI.Q Have you hired any Professional Security organization to handle security arrangements for this event? If YES, please list: - Security Organization: Security Organization Address: Security Director (Name): Phone: YES NO Is this a night event? If YES, please state how the event and surrounding area will be illuminated to ensure safety of the participants and spectators: ak-refth-- l'Ign-h n9 Please indicate what arrangement you have made for providing First Aid Staffing and Equipment. Please describe your Accessibility Plan for access at your event by individuals with disabilities: Po areas (1QE5' 1Q Please provide a detailed description of your PARKING plan: Please describe your plan for DISABLED PARKING: eio-,yhhi dedicated pc-ts 4 Please describe your plans to notify all residents, businesses and churches impacted by the event: IeAe-r' NOTE: Neighborhood residents must be notified 72 hours in advance when events are scheduled ip the City parks. NO Are there any musical entertainment features related to your event? If YES, please state the number of stages, number of bands and type of music. Number of Stages: Number of Bands: VarlW Type of Music: NO Will sound amplification be used? If YES, please indicate: Start time: 5 am/gym jFinish Time 8 ame YES NO Will sound checks be conducted prior to the event? If YES, please indicate: YES Start time: am/'pm Finish Time am/pm Please describe the sound equipment that will be used for your event: 0 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 Only Department Date Approved? Yes No Initial Specific Conditions of Approval Council Meeting Date: Approved: Yes No Vote: Kathleen Trees, Director Building & Safety Department City of National City PUBLIC PROPERTY USE HOLD HARMLESS AND INDEMNIFICATION AGREEMENT Persons requesting use of City property, facilities or personnel are required to provide a minimum of $1,000,000 combined single limit insurance for bodily injury and property damage which includes the City, its officials, agents and employees named as additional insured and to sign the Hold Harmless Agreement. Certificate of insurance must be attached to this permit C, ,nrw1 5 with Organization Person in Charge of Activity Address £ken Maxi lem 124" Telephone 310-- `I2 `7 Date(s) of Use 12 j Bj) j 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 itle�lt 1 St For Office Use Only Certificate of Insurance Approved Date 7 Non-profit organizations, which meet the criteria on page v of the instructions, will be considered for a waiver. If you would like to request a waiver of the processing fees, please complete the questionnaire below. 1. Is the event for which the TUP is sought sponsored by a non-profit organization? Yes (proceed to Question 2) No (Please sign the form and submit it with the TUP Application) 2. Please state the name and type of organization sponsoring the event for which the TUP is sought and then proceed to Question 3. Name of the sponsoring organization Type of Organization (Service Club, Church, Social Service Agency. etc.) 3. Will the event generate net income or proceeds t the sponsoring organization? Yes (Please proceed to Question 4) No (Please sign the form and submit it with the TUP Application) 4. Will the proceeds provide a direct financial benefit to an individual who resides in or is employed in the city, and who is in dire financial need due to health reasons or a death in the family? Yes (Please provide an explanation and details. No (Please proceed to Question 5) 8 5. Will the proceeds provide a direct financial benefit to city government such as the generation of sales tax? Yes (Please provide an explanation and details. No (Please proceed to Question 6) 6. Will the proceeds provide a direct financial benefit to a service club, social services agency, or other secular non-profit organization located within the city such as Kiwanis, Rotary, Lions, Boys and Girls Club? Yes (Please provide an explanation and details. No (Please proceed to Question 7) 7. Will the proceeds provide a direct financial benefit to an organization, which has been the direct recipient of Community Development Block Grant (CDBG) funding? Yes Year funds were received: Funds were used to: No (P lease sign the form and submit it with the TUP Application) Signature Date 9 CITY OF NATIONAL CITY NEIGHBORHOOD SERVICES DIVISION APPLICATION FOR A TEMPORARY USE PERMIT RECOMMENDATIONS AND CONDITIONS SPONSORING ORGANIZATION: Community Services EVENT: Christmas at Brick Row DATE OF EVENT: December 8, 2011 TIME OF EVENT: 5pm to 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 [ x ] FIRE YES [ x ] NO [ ] SEE CONDITIONS 1 1 COMMUNITY SERVICES YES [ x ] NO [ ] SEE CONDITIONS [ ] POLICE YES [ x ] NO [ ] SEE CONDITIONS [ ] CITY ATTORNEY YES [ x ] NO [ ] SEE CONDITIONS [ x ] CONDITIONS OF APPROVAL: DEVELOPMENT SERVICES (619) 336-4318 A traffic control plan will need to be submitted and approved showing the street closure and detours. RISK MANAGER (619) 336-4370 Since this is a city sponsored event. Risk Management sees no outstanding issues. PUBLIC WORKS (619)366-4580 Street Division I. Staff will deliver barricades to street corners and install barricades and remove them at the conclusion of the event. 2. Staff will post "no parking" signs in affected streets before the event. 3. The cost to provide Street personnel support for this event is estimated to be $25397. • "No Parking" signs 25 x $0.45 ea = $ 11.25 • Barricades 10 x S0.35 ea = 3.50 • Equipment 4 x $19.09 = 76.36 • Regular Hours 2 hrs x $32.57 = 65.14 • Overtime Hours 2 hrs x S48.86 = 97.72 • TOTAL = $ 253.97 Facilities Division I. Electrician Overtime Hours 4 hrs x $33.32 =$ 133.28 2. Custodians (2) OT Hours 4 hrs ea x $22.26 = 178.08 3. Chairs 100 x $.75 ea = 75.00 4. Tables 10 x $1.00 ea — 10.00 • TOTAL $ 396.36 Parks Division No involvement in this event. FINANCE I need a list of all vendors at least 2 weeks prior to event. They all should be licensed FIRE (619) 336-4550 Stipulations required by the Fire Department for this event are as follows: 1) Access to Morgan Square and Brick Row to be maintained at all times 2) Firc Department access into and through the festival 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) Access shall be maintained to all Fire Hydrants, Fire Department Connections for Fire Sprinkler Systems, Standpipes, etc. 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) Any electrical power used is to be properly rounded and approved. Extension cords shall be used as "Temporary Wiring" only. 7) If tents or canopies are used, tents having an area in excess of 200 square feet and or canopies in excess of 400 square feet or multiple tents and or canopies placed together equaling or greater than the above stated areas, are to be used, they shall he flame-retardant treated with an approved State Fire Marshal seal attached. A ten feet separation distance must be maintained between tents and canopies. A permit from the Firc 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. Canopies: Tens: 0-400 sf- $0 401 - 500 sf - $250.00 501 — 600 sf - $300.00 601 — 700 sf - $400.00 0 —200 sf - $200.00 201 (+) sf - $400.00 8) If concession stands arc utilized for cooking. they shall have a minimum of 10 feet of clearance on two sides. 9) All cooking booths or areas to have one 2A:10BC fire extinguisher. 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. 12) What type of cooking wilt occur with vendors at event 10) A fire safety inspection is to be conducted by the Fire Department prior to operations of the event to include all cooking areas etc. 1 I) Provide map of site area which shall include set up of vendors at event 13) Fees can only be waived by City Council. COMMUNITY SERVICES W are coordinating the Christmas at Brick Row POLICE I have reviewed the Temporary Use Permit (TUP) for the Christmas at Brick Row. The event is scheduled to take place on December 8, 2011. Per the TUP, the event will take place entirely on the streets at the Brick Row/Morgan Square area (00 E. 9th Street and 900 A Avenue). "1'he event takes place in the evening hours, 1700-2000 hours. This is a city event. The organizers estimate approximately 250 participants. There is no private security for the event. The event blocks the above listed city streets. Neither of these streets is a through roadway so there should be minimal impact on traffic flow. Additionally, because these are not thorough roadways, the streets should be able to close/block in a safe manner. The Patrol squads will be alerted to extra patrol the area on the day of the event. Based upon my review of the TUP, no NCPD personnel will be required at the event. There are no NCPD stipulations regarding the event. -Dan Fabinski, Sergeant 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: November 1st, 2011 AGENDA ITEM NO.6, EM TITLE: Warrant Register #14 for the period of 09/28/11 through 10/04/11 in the amount of $1,403,885.57 PREPARED BY: K. Apalategui DEPARTMENT: Fina PHONE: 1619-336-4331 APPROVED BY: EXPLANATION: Per Government Section Code 37208, attached are the warrants issued for the period of 09/28/11 through 10/04/11 The Finance Department has implemented a policy explanation of all warrants above $50,000.00 Vendor Check Amount Explanation Health Net 243840 62,698.48 Insurance R1192A Oct 2011 Kaiser Health Plan 243850 154,490.09 Insurance Active Oct 2011 Public Emp Ret System 243871 265,793.16 Retirement Insurance Service Period 9-11-4 FINANCIAL STATEMENT: ACCOUNT NO. N/A; ENVIRONMENTAL REVIEW: N/) ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Ratification of warrants in the amount of $1,403,885.57 BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: rrant Register #14 1/3 WARRANT REGISTER #I4 10/4/2011 PAYEE DESCRIPTION CHK NO DATE AMOUNT BIG 5 SPORTING GOODS 5 COLE 13X13 SHELTERS 243785 10/4/11 716.48 PARTY PRODUCTIONS RENTALS RENTAL 25 - 26" ROUND TABLES 243786 10/4/11 221.25 CALIFORNIA REDEVELOPMENT AGENCY RENEWAL 12/01/11-11/30/12 243787 10/4/11 7,010.00 DESROCHERS RETIREE HEALTH BENEFITS OCT 2011 243788 10/4/11 110.00 DIXIELINE BUILDERS REIMB: CASA ONTA/FAMILIAR EXPENSES 243789 10/4/11 39,485.00 ENVIRONMENTAL H S LABORATORIES LEAD PAINT TESTING 243790 10/4/11 6.00 NAN MCKAY AND ASSOC INC SR FIN CONSULT SVCS / SEC 8 243791 10/4/11 948.50 NBS LANDSCAPE MAINT OCT - DEC 2011 243792 10/4/11 819.31 OCANA REIMB: CSMFO TRAINING / SEC8 243793 10/4/11 622.66 PRO BUILD MOP# 45707. SUPPLIES / NSD 243794 10/4/11 125.40 PRUDENTIAL OVERALL SUPPLY MOP# 45742. LAUNDRY SERVICES/ NSD 243795 10/4/11 27.74 SDG&E GAS AND ELECTRIC UTILITIES / CDC 243796 10/4/11 15-51 SWEETWATER AUTHORITY WATER UTILITIES / CDC 243797 10/4/11 60.56 VISTA PAINT MOP# 68834. PAINT / NSD 243798 10/4/11 192.14 ABCANA INDUSTRIES POOL CHEMICALS 243799 10/4/11 352.75 ACEDO RETIREE HEALTH BENEFITS OCT 2011 243800 10/4/11 160.00 AIRGAS WEST MOP 45714 MATERIALS & SUPPLIES 243801 10/4/11 85.55 °LCEM FENCE COMPANY INC FENCE & GATE INSTALLATIONS 243802 10/4/11 685.00 LL FRESH PRODUCTS FOOD / NUTRITION CENTER 243803 10/4/11 2,280.63 ,.LLEN RETIREE HEALTH BENEFITS OCT 2011 243804 10/4/11 125.00 ALTEC INDUSTRIES INC. ENGLISH; SAFETY; DANGER SIGNS 243805 10/4/11 126.27 ANDERSON RETIREE HEALTH BENEFITS OCT 2011 243806 10/4/11 11000 AT&T/MCI SBC AT&T PHONE SERVICE / MIS 243807 10/4/11 6,387.16 AT&T/MCI SBC AT&T PHONE SERVICE FOR FY12 243808 10/4/11 2,517.16 BECK RETIREE HEALTH BENEFITS OCT 2011 243809 10/4/11 140.00 BISHOP RETIREE HEALTH BENEFITS OCT 2011 243810 10/4/11 110.00 BONSUISSE INC MILK & DAIRY DELIVERY / NUTRITION 243811 10/4/11 366.48 BOYD RETIREE HEALTH BENEFITS OCT 2011 243812 10/4/11 145.00 BRENNTAG PACIFIC INC POOL CHEMICALS 243813 10/4/11 1,609-63 CAPE FIRE / LTD OCT 2011 243814 10/4/11 576.00 CALIFORNIA ELECTRIC SUPPLY MOP 45698 ELECTRICAL MATERIAL 243815 10/4/11 68.42 CALIFORNIA LAW ENFORCEMENT PD / LTD OCT 2011 243816 10/4/11 1,560.00 CONDON RETIREE HEALTH BENEFITS OCT 2011 243817 10/4/11 280.00 COOPER'S PLUMBING & HEATING PLUMBING SERVICES, REPAIRS 243818 10/4/11 372.50 CORPUZ RETIREE HEALTH BENEFITS OCT 2011 243819 10/4/11 140.00 COUNTY OF SAN DIEGO CO OF SD SHARE / PARKING CITATION 243820 10/4/11 19,228.13 DANESHFAR RETIREE HEALTH BENEFITS OCT 2011 243821 10/4/11 250.00 DEFRATIS RETIREE HEALTH BENEFITS OCT 2011 243822 10/4/11 120.00 DELTA DENTAL CITY SHARE 8/22/11,9/5/11 243823 10/4/11 12,589.03 DICERCHIO RETIREE HEALTH BENEFITS OCT 2011 243824 10/4/11 70.00 DREDGE RETIREE HEALTH BENEFITS OCT 2011 243825 10/4/11 250.00 DREW FORD MOP 49078 AUTO PARTS 243826 10/4/11 419.74 -'SER III RETIREE HEALTH BENEFITS OCT 2011 243827 10/4/11 250.00 RGUSON ENTERPRISES INC MOP 45723 PLUMBING MATERIAL 243828 10/4/11 294.12 GELSKEY RETIREE HEALTH BENEFITS OCT 2011 243829 10/4/11 115.00 GIBBS JR RETIREE HEALTH BENEFITS OCT 2011 243830 10/4/11 120.00 GOO RETIREE HEALTH BENEFITS OCT 2011 243831 10/4/11 165.00 GRAINGER MOP 65179 ELECTRICAL MATERIAL 243832 10/4/11 1,427.78 2/3 WARRANT REGISTER #14 10/4/2011 PAYEE DESCRIPTION CHK NO DATE AMOUNT GRANICUS INC GRANICUS WEBCAST SERVICE / MIS 243833 10/4/11 1,477.35 GREGORY GONZALES REFUND: CITATION DISMISSED 243834 10/4/11 30.00 HAMILTON MEATS & PROVISIONS MEAT DELIVERY / NUTRITION CENTER 243835 10/4/11 1,298.82 HANSON RETIREE HEALTH BENEFITS OCT 2011 243836 10/4/11 135.00 HEALTH NET FULL NETWORK 57135A OCT 2011 243837 10/4/11 6,764.73 HEALTH NET HEALTH NET - R1192F OCT 2011 243838 10/4/11 3,152.35 HEALTH NET HEALTH NET - 57135F OCT 2011 243839 10/4/11 1,304.42 HEALTH NET INC HEALTH INS R1192A OCT 2011 243840 10/4/11 62,698.48 HEALTH NET INC HEALTH INS 57135J OCT 2011 243841 10/4/11 1,264.78 HODGES RETIREE HEALTH BENEFITS OCT 2011 243842 10/4/11 200.00 HOLLIS RETIREE HEALTH BENEFITS OCT 2011 243843 10/4/11 185.00 HONEYWELL INTERNATIONAL INC REPAIRS NOT COVERED BY MAINTENANCE 243844 10/4/11 585.29 JAMES RETIREE HEALTH BENEFITS OCT 2011 243845 10/4/11 140.00 JEFFREY L SERVATIUS RETIREE HEALTH BENEFITS OCT 2011 243846 10/4/11 340.00 JJJ ENTERPRISES TROUBLESHOOTING PANEL 243847 10/4/11 347.50 JUDD ELECTRIC ELECTRICAL REPAIRS 243848 10/4/11 341.25 JUNIEL RETIREE HEALTH BENEFITS OCT 2011 243849 10/4/11 50.00 KAISER FOUNDATION HEALTH PLANS KAISER INS ACTIVE OCT 2011 243850 10/4/11 154,490.09 KAISER FOUNDATION HEALTH PLANS KAISER RET INS OCT 2011 / 140220-03 243851 10/4/11 11,678.: KIMBLE RETIREE HEALTH BENEFITS OCT 2011 243852 10/4/11 300.0E LANDA RETIREE HEALTH BENEFITS OCT 2011 243853 10/4/11 155.00 LASER SAVER INC MOP# 45725. TONERS / ENG 243854 10/4/11 59.76 LIMFUECO RETIREE HEALTH BENEFITS OCT 2011 243855 10/4/11 160.00 MATIENZO RETIREE HEALTH BENEFITS OCT 2011 243856 10/4/11 100.00 MCCABE RETIREE HEALTH BENEFITS OCT 2011 243857 10/4/11 280.00 MEDINA RETIREE HEALTH BENEFITS OCT 2011 243858 10/4/11 105.00 METRO FIRE & SAFETY SEMI-ANNUAL SYSTEM SERVICE 243859 10/4/11 174.36 MJC CONSTRUCTION RETENTION PAYMENT, NC PARKS ADA UPG 243860 10/4/11 16,490.62 MORALES REFUND/ DOUBLE -PAYMENT CITATION 243861 10/4/11 70.00 MURRAY RETIREE HEALTH BENEFITS OCT 2011 243862 10/4/11 150.00 MYERS TIRE SUPPLY 1/4" PILOT WIRE P/PLUG #14041 243863 10/4/11 568.58 MYERS RETIREE HEALTH BENEFITS OCT 2011 243864 10/4/11 140.00 NOSAL WILLIAM A RETIREMENT SETTLEMENT OCT 2011 243865 10/4/11 1,137.19 OCHOA RETIREE HEALTH BENEFITS OCT 2011 243866 10/4/11 125.00 PAUU RETIREE HEALTH BENEFITS OCT 2011 243867 10/4/11 340.00 PEASE JR RETIREE HEALTH BENEFITS OCT 2011 243868 10/4/11 140.00 POST RETIREE HEALTH BENEFITS OCT 2011 243869 10/4/11 280.00 POTTER RETIREE HEALTH BENEFITS OCT 2011 243870 10/4/11 150.00 PUBLIC EMP RETIREMENT SYSTEM SERVICE PERIOD 9-11-4 243871 10/4/11 265,793.16 RAY RETIREE HEALTH BENEFITS OCT 2011 243872 10/4/11 190.00 REGIONAL TRAINING CENTER CCMA / JULY 2011 - JUNE 2012 243873 10/4/11 750.00 RELIANCE STANDARD VTL OCTOBER 2011 243874 10/4/11 2,377.63 ROARK RETIREE HEALTH BENEFITS OCT 2011 243875 10/4/11 135.E ROE RETIREE HEALTH BENEFITS OCT 2011 243876 10/4/11 120.., RUIZ RETIREE HEALTH BENEFITS OCT 2011 243877 10/4/11 310.00 SDG&E GAS & ELECTRIC SERVICE / NUTRITION 243878 10/4/11 293.40 SHORT RETIREE HEALTH BENEFITS OCT 2011 243879 10/4/11 300.00 SOUTH COAST EMERGENCY CAP, COOLANT RESERVOIR / PW 243880 10/4/11 680.92 a� Gltt tF6RNI:/ °-rt 3/3 PAYEE STAPLES ADVANTAGE STRASEN SYSCO SAN DIEGO THE LINCOLN NATIONAL LIFE INS TRIVIZ TURNER'S PORTABLE WELDING U.S. HEALTHWORKS URIAS VICTOR CASTRO WAL MART STORES INC ZIETLOW SECTION 8 HAPS PAYMENTS IAYCORPORlATED WARRANT REGISTER #14 10/4/2011 DESCRIPTION MOP# 45704. OFFICE SUPPLIES/ENG RETIREE HEALTH BENEFITS OCT 2011 CONSUMABLES/ NUTRITION CENTER LIFE & AD&D, STD, LTD OCT 2011 RETIREE HEALTH BENEFITS OCT 2011 LABOR, 3 HRS @ $60/HR MEDICAL SERVICES / HR RETIREE HEALTH BENEFITS OCT 2011 REIMB. PROJECT WITHDRAWN REFUND OF CONSTRUCTION & DEBRIS RETIREE HEALTH BENEFITS OCT 2011 Start Date End Date 9/28/2011 10/4/2011 CHK NO DATE AMOUNT 243881 10/4/11 10.34 243882 10/4/11 135.00 243883 10/4/11 2,558.65 243884 10/4/11 8,503.20 243885 10/4/11 135-00 243886 10/4/11 245.25 243887 10/4/11 155.00 243888 10/4/11 125.00 243889 10/4/11 1,906.00 243890 10/4/11 47,428.50 243891 10/4/11 150.00 A/P Total 703,587.72 700,297.85 GRAND TOTAL $ 1,403,885.57 Certification IN ACCORDANCE WITH SECTION 37202, 37208, 372059 OF THE GOVERNMENT CODE, WE i_EREBY CERTIFY TO THE ACCURACY OF THE DEMANDS LISTED ABOVE AND TO THE AVAILABILITY OF FUNDS FOR THE PAYMENT THEREOF AND FURTIIER THAT THE ABOVE CLAIMS AND D MANDS HAVE BEEN AUDITED AS REQUIRED BY LAW. FINANCE CITY MANAGER FINANCE COMMITTEE RONALD J. MORRISON, MAYOR -CHAIRMAN ALEJANDRA SOTELO-SOLIS, VICE -MAYOR ROSALIE ZARA"FE, MEMBER LUIS NATIVIDAD, MEMBER MONA RIOS, MEMBER 1-HEREBY CERTIFY THAT THE FOREGOING CLAIMS AND DEMANDS WERE APPROVED AND THE CITY TREASURER IS AUTHORIZED TO ISSUE SAID WARRANTS IN PAYMENT TIIEREOF BY THE CITY COUNCIL ON THE Et OF NOVEMBER, 2011. AYES NAYS ABSENT CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: November 1st, 2011 AGENDA ITEM NO. rEM TITLE: Warrant Register #15 for the period of 10/05/11 through 10/11/11 in the amount of $385,137.74 PREPARED BY: 'K. Apaiategui, DEPARTMENT: Fin PHONE: 619-336-43311 APPROVED BY: EXPLANATION: Per Government Section Code 37208, attached are the warrants issued for the period of 10/05/11 through 10/11/11 The Finance Department has implemented a policy explanation of all warrants above $50,000.00 Vendor Check Amount Explanation Villa Ford 243983 101,229.48 4 Ford Crown Victoria's Police Department FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Ratification of warrants in the amount of $385,137.74 BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: arrant Register #15 PAYEE CHRISTENSEN & SPATH LLP EDCO DISPOSAL CORPORATION OLIVERIA POWER PLUS SAN DIEGO CLIPPING SERVICE SAN DIEGO HOUSING FEDERATION SDG&E STAPLES ADVANTAGE VISTA PAINT AFLAC ALL FRESH PRODUCTS ARROWHEAD FORENSIC PRODUCTS AT&T MOBILITY ATLANTIC SAFETY PRODUCTS, INC. BEARD BEHAVIOR ANALYSIS BONSUISSE INC BRENNTAG PACIFIC INC ISPORTS IFORNIA COMMERCIAL SECURITY i.r+LIFORNIA ELECTRIC SUPPLY CALIFORNIA TRAINING INSTITUTE CALIFORNIA TRAINING INSTITUTE CDWG CODE 4 COMM YOUTH ATHLETIC CTR COUNTY OF SAN DIEGO COX COMMUNICATIONS CPP PRINTING DAILY JOURNAL CORPORATION DALEY & HEFT LLP DAY WIRELESS SYSTEMS DELTA CARE USA DEPARTMENT OF INDUSTRIAL DEPARTMENT OF JUSTICE DIAZ D-MAX ENGINEERING FERGUSON ENTERPRISES INC GALINDO ROJAS GIEDD GIL GLOCK INC (LOCKINC DEN WEST COLLEGE DEN WEST COLLEGE GTC SYSTEMS INC HAMILTON MEATS & PROVISIONS HONEYWELL INTERNATIONAL INC HYDRO SCAPE PRODUCTS INC WARRANT REGISTER # 15 10/11/2011 DESCRIPTION LEGAL SERVICES / T&T COMMUNITIES WASTE DISPOSAL SERVICES / CDC REIMB: HAFOG CONFERENCE / SEC8 EQUIPMENT RENTAL (POWER POLES) NEWS READING & CLIPPING SVCS/CDC MEMBERSHIP RENEWAL GAS AND ELECTRIC UTILITIES / CDC MOP# 45704. OFFICE SUPPLIES / CDC MOP# 68834. PAINTING SUPPLIES/NSD AFLAC ACCT BDM36 OCT 2011 FOOD / NUTRITION CENTER LAB SUPPLIES / PD SECURE WIRELESS CIRCUIT / PD LAB SUPPLIES / POLICE 125 PLAN REIMBURSEMENT INTERVIEW & INTERROGATE COURSE MILK & DAIRY DELIVERY / NUTRITION POOL CHEMICALS NIKE T90 CLUB TEAM SZ4 PN 1273243 MOP 45754 R&M BUILDINGS MOP 45698 ELECTRICAL MATERIAL FORCE ENCOUNTERS THREAT & ERROR MGMT TRAINING INV: ZNL9138 / CAMERAS - MIS THE BULLET PROOF MIND SEMINAR BATTLE OF THE BDGS APPRECIATION RCS COMMUNICATIONS MAINT /SEP 11 COX COMMUNICATIONS DATA & VIDEO ST OF THE CITY ADDRESS PROGRAM ANNUAL SUBSCRIPTION RENEWAL LIABILITY CLAIM COSTS COMPANY MAINT FIRE / SEP 2011 PMI DENTAL INS OCT 2011 CONVEYANCE CHARGES NEW EMPLOYEE FINGERPRINT - CITY TRAVEL EXPENSE - CHALLENGE CONE STORM WATER SERVICES, AUGUST TO SEP MOP 45723 PLUMBING MATERIAL 125 PLAN REIMBURSEMENT CIVILIAN SUPERVISORY COURSE INTERVIEW & INTERROGATION COURSE GLOCK ARMORER'S COURSE GLOCK ARMORER'S COURSE CIVILIAN SUPERVISORY COURSE CIVILIAN SUPERVISORY COURSE NETWORK ENGINEERING SERVICE/MIS MEAT DELIVERY / NUTRITION REPAIRS MOP 45720 PIPES, VALVES, FITTINGS CHK NO DATE 243892 10/11/11 243893 10/11/11 243894 10/11/11 243895 10/11/11 243896 10/11/11 243897 10/11/11 243898 10/11/11 243899 10/11/11 243900 10/11/11 243901 10/11/11 243902 10/11/11 243903 10/11/11 243904 10/11/11 243905 10/11/11 243906 10/11/11 243907 10/11/11 243908 10/11/11 243909 10/11/11 243910 10/11/11 243911 10/11/11 243912 10/11/11 243913 10/11/11 243914 10/11/11 243915 10/11/11 243916 10/11/11 243917 10/11/11 243918 10/11/11 243919 10/11/11 243920 10/11/11 243921 10/11/11 243922 10/11/11 243923 10/11/11 243924 10/11/11 243925 10/11/11 243926 10/11/11 243927 10/11/11 243928 10/11/11 243929 10/11/11 243930 10/11/11 243931 10/11/11 243932 10/11/11 243933 10/11/11 243934 10/11/11 243935 10/11/11 243936 10/11/11 243937 10/11/11 243938 10/11/11 243939 10/11/11 243940 10/11/11 1/3 AMOUNT 2,362.50 104.75 1,066.28 195.00 78.75 550.00 8.57 126.78 387.40 1,452.44 4,409.29 584.30 4,248.26 5,157.00 64.98 472.00 298.10 622.79 186.46 497.81 395.44 277.00 209.00 958.98 99.00 237.00 9,051.52 79.76 252.59 784.08 542.50 2,001.50 2,927.93 1,125.00 561.00 67 28 20,602.12 1,570.72 121.93 1,280.00 753.22 195.00 195.00 166.00 166.00 6,657.50 1,607.42 5,691.88 1,297.67 2/3 PAYEE JOSSE KAISER FOUNDATION HEALTH PLANS KIMLEY HORN AND ASSOC INC KONE L1 IDENTITY SOLUTIONS LASER SAVER INC LOPEZ LYNN PEAVEY MAINTEX INC MARTINEZ MARY POWELL MASON'S SAW & MILLER MUNISERVICES LLC NAPA AUTO PARTS PADRE JANITORIAL SUPPLIES INC PE PRO BUILD PRUDENTIAL OVERALL SUPPLY REYNOSO RIVERSIDE SHERIFFS DEPT SHEPHARD SILVA SMART & FINAL SMART SOURCE OF CA LLC SPARKLETTS STAPLES ADVANTAGE STUTZ ARTIANO SHINOFF & SUPER SERGIOS MEXICAN FOOD SYSCO SAN DIEGO THE LIGHTHOUSE INC THIRD DEGREE COMMUNICATIONS TRAINING FOR SAFETY INC TRAINING FOR SAFETY INC TRITECH SOFTWARE SYSTEMS U S BANK U S BANK UNDERGROUND SERVICE ALERT VALLEY INDUSTRIAL SPECIALTIES VERIZON WIRELESS VERIZON WIRELESS VIDEO4THEWEB.COM VILLA FORD WESTFLEX INDUSTRIAL WILLY'S ELECTRONIC SUPPLY INC.ORPQRATED WARRANT REGISTER # 15 10/11/2011 DESCRIPTION 125 PLAN REIMBURSEMENT KAISER RETIREES INS OCT 2011 CITY WIDE SPEED SURVEYS / POLICE REPAIRS & MAINTENANCE NEW EMPLOYEE FINGERPRINT TEST PRINTER MAINT & REPAIR / MIS TRANSLATION SERVICES FOR FY 2012 LAB SUPPLIES / POLICE MISCELLANEOUS JANITORIAL SUPPLIES CIVILIAN SUPERVISORY COURSE REFUND OF C&D DEPOSIT MOP 45729 MATERIALS & SUPPLIES ADV TRAFFIC COLLISION INVESTIGATION DISTRICT TAX AUDIT & SUTA SVCS MOP 45735 AUTO PARTS JANITORIAL SUPPLIES / NUTRITION 125 PLAN REIMBURSEMENT MOP 45707 PLUMBING MATERIAL MOP 45742 LAUNDRY SERVICE EDUC REIMB - FAMILY THERAPY REG AVD TRAFFIC COLL INVEST INTERV & INTERROGATION COURSE CALPELRA TRAINING CONE MOP# 45756. TITY TOTS SUPPLIES MOP# 63845. BUSINESS CARD/GRANTS WATER / MYR MOP# 45704. OFFICE SUPPLIES/ POLICE LIABILITY CLAIM COSTS MEALS FOR FIRE DEPT CREW-10/6/11 FOOD & CONSUMABLES / NUTRITION MOP 45735 AUTO PARTS INTERVIEW & INTERROGATION COURSE ADVANCE DISPATCHER UPDATE ADVANCED DISPATCHER UPDATE TRITECH CAD REFRESH -REPLACE/ PD CREDIT CARD EXPENSES - PD CREDIT CARD EXPENSES - PD UNDERGROUND SRVS ALERT CHRGS MOP 46453 PLUMBING MATERIAL VERIZON CELL PHONE CHARGES WIRELESS PHONE SERVICE / CITY MAYOR'S STATE OF THE CITY ADDRESS INV: J11907 / J11912 MOP 63850 AUTO PARTS MOP# 45763. ELECTRICAL SUPP/ MIS CHK NO DATE AMOUNT 243941 10/11/11 384.60 243942 10/11/11 23,275-85 243943 10/11/11 18,065.00 243944 10/11/11 281.65 243945 10/11/11 32.00 243946 10/11/11 230.40 243947 10/11/11 280.00 243948 10/11/11 992.70 243949 10/11/11 975.99 243950 10/11/11 1,280.00 243951 10/11/11 86.63 243952 10/11/11 51.63 243953 10/11/11 1,486.46 243954 10/11/11 11548.20 243955 10/11/11 253.24 243956 10/11/11 188.84 243957 10/11/11 561.54 243958 10/11/11 1,944.79 243959 10/11/11 552 243960 10/11/11 243961 10/11/11 440.00 243962 10/11/11 384.00 243963 10/11/11 253.40 243964 10/11/11 151.73 243965 10/11/11 31.54 243966 10/11/11 2.00 243967 10/11/11 1,477.80 243968 10/11/11 8,083.17 243969 10/11/11 36.38 243970 10/11/11 2,54874 243971 10/11/11 387.90 243972 10/11/11 395.00 243973 10/11/11 285.00 243974 10/11/11 285.00 243975 10/11/11 40, 422.50 243976 10/11/11 1, 660.92 243977 10/11/11 520.00 243978 10/11/11 148.50 243979 10/11/11 1,006.68 243980 10/11/11 121.51 243981 10/11/11 4,806.56 243982 10/11/11 250.00 243983 10/11/11 101, 229.2 243984 10/11/11 31( 243985 10/11/11 271./6 A/P Total 301,930.35 3/3 PAYEE CALIFORNIA IACOPORATED WARRANT REGISTER # 15 10/11/2011 DESCRIPTION WIRED PAYMENTS TRISTAR RISK MANAGEMENT SEPT 2011 WC REPLENISHMENT CHK NO DATE AMOUNT 36096116 10/11/11 83,207.39 GRAND TOTAL $ 385,137.74 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 FURTIIER THAT THE ABOVE CLAIMS AND DEMANDS HAVE BEEN AUDITED AS REQUIRED BY LAW. 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 AUTHORIZED TO ISSUE SAID WARRANTS IN PAYMENT THEREOF BY THE CITY COUNCIL ON THE D' OF NOVEMBER, 2011. AYES NAYS ABSENT CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: November 1, 2011 AGENDA ITEM NO. 8 Al TITLE: A Public Hearing to consider an Ordinance Amending Title 18 (Zoning) of the National City Municipal Code by Amending Section 18.29.070 Pertaining to the Floodway Overlay Zones. (Applicant City -Initiated) (Case File 2011-25 A) PREPARED BY: Martin Reeder DEPARTMENT: Development Planning. PHONE: 336-4313 APPROVED BY: EXPLANATION: On October 4, 2011 the City Council initiated a Code Amendment that is intended to clarify the Land Use Code language. Since adopting the new code in June of this year there have been various discrepancies and typographic issues that need to be remedied. Although the amendment will ultimately cover much more than just the Overlay Zones chapter, Development Services staff is attempting to fast -track this particular section amendment so as to comply with requirements of the Federal Emergency Management Agency (FEMA) and State of California Department of Water Resources (DWR). The remaining items to be amended will follow at a later date. Changes to Chapter 18.29 were prepared and considered by the Planning Commission on October 17, 2011. The attached Planning Commission staff report describes the changes in detail. FINANCIAL STATEMENT: ACCOUNT Na ENVIRONMENTAL REVIEW: Not a project under CEQA (no physical change) ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Staff concurs with the Planning Commission's recommendation to adopt the Amendments to Title 18.29 of the Municipal Code pertaining to Overlay Zones. BOARD / COMMISSION RECOMMENDATION: The Planning Commission approved the Conditional Use Permit. Ayes: Baca, Farias, Flores, Pruitt, ReynoldsAbsent:, Alvarado, DeLaPaz ATTACHMENTS: Planning Commission Staff Report with attachments Resolution No. 26-2011 Title: Item no. 6 October 17, 2011 r INCO R,F'D7i ATL �• CITY OF NATIONAL CITY - DEVELOPMENT SERVICES DEPARTMENT 1243 NA ZONAL CITY BLVD., NATIONAL CITY, CA 91950 PLANNING COMMISSION STAFF REPORT PUBLIC HEARING — AMENDMENT TO TITLE 18 (ZONING) CHAPTER 18.29 OF THE NATIONAL CITY MUNICIPAL CODE PERTAINING TO OVERLAY ZONES Case File No.: 2011-25 A Location: Citywide Staff report by: Martin Reeder, AICP — Assistant Planner Environmental review: Not a project under CEQA (no physical change) BACKGROUND The Flood Insurance and Mitigation Administration (FIMA), a component of the Federal Emergency Management Agency (FEMA), manages the National Flood Insurance Program (NFIP). The NFIP makes Federally -backed flood insurance available to homeowners, renters, and business owners in flood prone communities, of which the City of National City is one. The City joined the NFIP in 1979 and has 120 flood insurance policies in effect. The State Department of Water Resources (DWR), acting on behalf of FEMA, conducted a Community Assistance Visit in July of this year to audit the City's participation in the NFIP and provided comments. Although the City received good feedback from DWR, it was determined that additional language was needed in the Land Use Code to fully implement the NFIP. On October 4, 2011 the City Council initiated a Code Amendment that is intended to clean up the Land Use Code. Since adopting the new code in June of this year there have been various discrepancies and typographic issues that need to be remedied. Although the amendment will ultimately cover much more than just the Overlay Zones chapter, Development Services staff is attempting to fast -track this particular section amendment so as to comply with FEMA/DWR requirements. The remaining items to be amended will follow at a later date. 1 Proposal The general purpose of this amendment is to add specific language to Chapter 18.29.070 — Floodway (-FW), Floodway Fringe (-FF-1), and Floodway Fringe -Shallow Hooding (-FF-2) Zones — of the Land Use Code identified by the above -mentioned Community Assistance Visit. As part of this amendment, staff has also included clean up items for this code section (e.g., typographic errors, inconsistencies, etc). A strike- through/underline copy of the code section to be amended is attached for your review. Analysis The required changes must be made in order for the City to continue to be in compliance with its NFIP responsibilities, and for National City residents to continue to be able to obtain flood insurance. The specific language is located in 18.29.070 (V) as new subsections 6 and 7. The language refers to duties and responsibilities of the floodplain administrator and notifications that need to be transmitted to FEMA. The amendment is consistent with General Plan policy in that the Plan discusses potential flood hazards and protection from such. The Safety Element of the General Plan - Flood Hazards and Inundation contains Policy S-2.4, which reads as follows. Policy S-2.4: Adopt regulations that limit the risk of loss to reasonable levels within mapped floodplain hazard areas or areas subject to potential inundation by levee failure, darn failure, or as the result of a tsunami. The National Flood Insurance Program is an example of such a regulation, and amendment of the Land Use Code in order to continue NFIP compliance would be consistent with this policy. RECOMMENDATION Recommend approval of the Amendment to Section 18.29 of the Land Use Code based on the attached findings. ATTACHMENTS 1. Recommended Findings for Approval 2. Existing Land Use Code Chapter 18.29.070 — Floodway (-FW), Floodway Fringe (- FF-1), and Floodway Fringe -Shallow Flooding (-FF-2) Zones 3. Draft Changes to Title 18, Chapter 18.29.070 of the Municipal Code 4. FEMA Community Visit Report 5. Public Notice (published in the San Diego Union -Tribune, not mailed) MARTIN REEDER Assistant Planner / MARYAM BABA Director of Development Services 2 RECOMMENDED FINDINGS FOR APPROVAL OF AN AMENDMENT TO TITLE 18 (ZONING_) CHAPTER 18.29 OF THE NATIONAL CITY MUNICIPAL CODE PERTAINING TO OVERLAY ZONES CASE FILE 2011-25 A 1. That the proposed amendment is in the public interest and is consistent with General Plan policy, as the General Plan calls for the adoption of regulations that limit the risk of loss to reasonable levels within mapped floodplain hazard areas or areas subject to potential inundation by levee failure, or as the result of a tsunami. 2. That the proposed amendment will allow the City's continued enforcement of National Flood Insurance Program (NFIP) regulations, ensuring National City's good standing and guaranteed availability of flood insurance coverage for residences that are in flood hazard areas_ 3 2. When located on a lot adjoining another residential use, mobile home parks shall be permanently screened from such adjoining property by a fence or wall and suitable landscaping, adjacent to or opposite the other residential use. F.E. Discontinuance Procedures 1 he application for discontinuance of a mobile horne park shall he accompanied by: a_ A relocation plan to provide for the tenants who will be displaced by the disconlinuance of the properly as a mobile home park or the conversion of mobile horne spaces to other uses_ b A phasing plan indicating the timing and mariner in which the existing mobile I -come units will be discontinued_ 18.29.07(1 FLOODWAY (-FW), FLOODWAY FRINGC (-Ff--1), AND FLOODWAY FRINGE SHALLOW FLOODING (-FF 2) ZONES A - STATEMENT OF PURPOSE. It is the purpose of this chapter to piornote the public health, sateiy and general welfare, and to minimize public and private losses due to flood conditions in specific areas r,y rrovisions designed to- 1. Protect human life and health; 2_ Minimize expenditure of public money for costly flood control projects; 3. Minimize the need for rescue and relief efforts associated with flooding and generally undertaken at Ibe expense of the general public; 4. Minimize prolonged business interruptions; S- Minimize damage to public facilities and utilities such as water and gas mains, electric, telephone and sewer Tines, streets and bridges located in areas of special flood hazard, 6_ Help maintain a stable tax base by providing for the second use and development of areas of special flood hazard so as to minimize future flood blight areas; 7. Ensure that potential buyers are notified that property is in an area of special flood hazard: and 8_ Ensure that those who occupy the areas of special flood hazard assume responsibility for their actions. B - METHODS OF REDUCING FLOOD LOSSES. In order to accomplish its purposes. this chapter includes methods and provisions to: 1. Restrict or prohibit uses which are dangerous to health, safety and property due to water or erosion hazards, or which result in damaging increases in erosion or flood heights or velocities; 2_ Require that uses vulnerable to floods, including facilities which sere such uses, be protected against flood damage at the time of initial construction; 3_ Control the alteration of natural floodplains, stream cliannets and natural protective barriers. which help accommodate or channel floodwaters: 4. Control filling, grading, dredging, and other development which may increase flood damage; and S_ Prevent or regulate the construction of flood barriers',vhicii will unnaturally divert floodwaters or which may increase flood hazards in other areas C -WARNING AND DISCLAIMER OF LIABILITY The degree of flood protection required by this chapter is considered reasonable for regulatory purposes and is based on scientific and engineering considerations. Larger floods can and will occur on rare occasions. Flood heights may be Increased by man-made or natural causes_ This chapter does not imply that land outside the areas of special flood hazards or uses permitted within such areas will be free from flooding or flood damages. This chapter shall not create liability on the part of the city, any officer or employee thereof, the state of California or the Federal Insurance Administration, Federal Emergency Management Agency for any flood damages that result from reliance on this chapter or any administrative decision lawfully made thereunder Ordinance No. 2011-2362 93 Amending F Ile 18 — Land Use Code 4 D - ABROGATION AND GREATER RESTRICTIONS. This chapter is not intended to repeal, abrogate or impair any existing easements, covenants or deed restrictions. However, where this chapter and another chapter, easement, covenant or deed restrictions conflict or overlap, whichever imposes the more stringent restriction shall prevail_ L - DEFINITIONS. Unless specifically defined below, or in this Title, words or phrases used in this chapter shall he interpreted so as to give them the meaning they have in common usage and to give this chapter its most reasonable application. 1. "Accessory use" means a use which is incidental and subordinate to the principal use of the parcel of land on which it is located. 2. "Adversely affects" means, for purposes of this chapter, that the cumulative effect of the proposed development when combined with all other existing and anticipated development will increase the water surface elevation of the base flood more than one foot at any point. 3. "Alluvial fan' means a geomorphologic feature characterized by a cone or fan -shaped deposit of boulders, grave!, and fine sediments that have been eroded from slopes, Transported by flood flows, and then deposited on the valley floor, and which is subject to flash flooding, high velocity flows, debris flows, erosion, sediment movement and deposition, and channel migration 4. "Apex" means the point of highest elevation on an alluvial fan, which on undisturbed fans is generally the point where the major stream that formed the fan ernerges from the slope. 5. 'Appeal" means a request for a review of the floodplain administrator's Interpretation of any provision of this chapter_ 6. "Area of shallow flooding" means a designated AO or AH zone on the Flood Insurance Rate Map (FIRM). The base flood depths range from one to three feet; a clearly defined channel does not exist, the path of flooding is unpredictable and indeterminate; and, velocity flow may be evident_ Such flooding is characterized by ponding or sheet flow. 7. "Area of special flood hazard" —see "Special flood hazard area." 8. "Base flood" means a flood which has a one percent chance of being equaled or exceeded in any given year (also called the "one hundred year flood")_ Base flood is the term used throughout this chapter. 9. "Basement" means any area of the building having its floor subgrade-- i.e., below ground level —on all sides. 10. "Building" --see "Structure." 11. "Development" means any man-made change to improved or unimproved real estate, including but not limited to buildings or other structures, mining, dredging, filling, grading, paving, excavation or drilling operations, or storage of equipment or materials_ 12. "Encroachment" means the advance or infringement of uses, plant growth, fill, excavation, buildings, permanent structures or development into a floodplain which may impede or alter the flow capacity of a floodplain. 13. "Exception" means a grant of relief from the requirements cf this chapter which permits construction in a manner that would otherwise be prohibited by this chapter 14_ "Existing manufactured liorneirnobile home park or subdivision" means a manufactured home park or subdivision for which the construction of facilities for servicing the loss on which the manufactured liurnes{mobile homes are to he affixed (including, at a minimum, the installation of utilities, the construction of streets, arid either final site grading or the pouring of concrete pads) is completed before the effective date of this chapter. 15_ "Expansion to an existing manufactured home/mobile home park or subdivision" means the preparation of additional sites by the construction of facilities for servicing the lots on which the manufactured homes/mobile 11ornes are to be affixed (including the installation of utilities, the construction of streets. and either final site grading or pouring of concrete pads) 16. "Flood, flooding or floodwater" means a general and temporary condition of partial or complete inundation of normally dry land areas from the overflow of inland or tidal waters, andlor the unusual and rapid accumulation or runoff of surface waters from any source_ Ordinance No_ 2011-2362 94 Amending Title 18 - Land Use Code 5 17_ "Hood Boundary and Floodway Map (IUFM)" means the official map on which the Federal Emergency Management Agency or Federal Insurance Administration has delineated both the areas of special flood ha; and s and the tloodway. 18. "Flood Hazard Boundary Map" means the official map on which the Federal Ernergency Management Agency or Federal Insurance Administration has delineated the areas of flood hazards 19. "Flood Insurance Rate tvlap (FIRM)" means the official map on which the Federal Emergency Management Agency or the Federal Insurance Administration has delineated both the areas of special flood hazards and the risk premium zones applicable to the community. 20. "Flood Insurance Study" means the official report provided by the Federal Insurance Administration that includes flood profiles, the Flood Insurance Rate Map. the Hood Boundary and Floodway Map, and the water surface elevation of the base flood_ 21. "Floodplain or flood -prone area" means any land area susceptible to being inundated by water from any source —see "Flooding_" 22_ "Floodplain administrator" means the individual appointed to administer and enforce the Floodplain management regulations_ This individual shall be the city engineer of the city_ 23_ "Floodplain management" means the operation of an overall program of corrective and preventive measures for reducing flood damage and preserving and enhancing, where possible, natural resources in the floodplain. including but not limited to emergency preparedness plans, flood control works, floodplain management regulations, and open space plans_ 29. "Floodplain management regulations" means this chapter and other zoning ordinances, subdivision regulations, building codes, health regulations, special purpose ordinances (such as grading and erosion control) and ollrer applications of police power which control development ill flood -prone areas. The term describes federal, state or local regulations In any combination thereof which provide standards for preventing and reducing flood loss and damage_ 25. "Floodproofing" means any combination of structural and nonstructural additions, changes or adjustments to structures which reduce or eliminate. flood damage to real estate or improved real property, water and sanitary facilities, structures and their contents. 26. "Floodway" means the channel of a river or other watercourse and the adjacent land areas that must be reserved in order to discharge the base flood without cumulatively increasing the water surface elevation more than one foot. Also referred to as "regulatory tloodway_" 27_ "Floodway encroachment lines" means the lines marking the limits of floodways on federal, state and Irxtal floodplain reaps. 28_ "Floodway fringe" means that area of the floodplain on either side of the "regulatory floodway" where encroachment may be permitted 29. "Fraud and victimization," as related to Section .30.260 (Conditions for exceptions) of this chapter, means that the exception granted Hurst not cause f d r victimization of the public_ In examining this requirement, the planning commission will consider the fact that every newly constructed building adds to government responsibilities and remains a part of the community for fifty to one hundred years. Buildings that are permitted to be constructed below the base flood elevation are subject, during all those years. to increased risk of damage from floods, while future owners of the property and the community as a whole are subject to all the costs, inconvenience, danger, and suffering that ['lose increased flood damages bring. In addition, future owners may purchase the property, unaware that it is subject to potential flood damage, and can be insured only at very high flood insurance rates. 30_ "Functionally dependent use" means a use which cannot perform its intended purpose unless it is located or carried out in close proximity to water_ The term includes only docking facilities, port facilities that are necessary for the loading and unloading of cargo or passengers, and ship building and ship repair facilities, and does not include long-term storage or related manufacturing facilities. 31. "habitable floor" means any floor usable for living purposes, which includes working, sleeping, eating, cooking or recreation, or a combination thereof A floor used only for storage purposes is not a "habitable floor." 32. "Hardship." as related to Section 8.30.26 (Conditions for exceptions) of this chapter, means the unusual hardship that '.vould result fro ire to grant the requested exception. The planning commission requires that the exception be unusual and peculiar to the property involved_ Mere economic or financial hardship alone is not exceptional. Inconvenience, aesthetic considerations, physical handicaps, personal preferences, or the disapproval of one's neighbors likewise cannot. as a rule, qualify as an exceptional hardship. All of these problems can be resolved through other means without granting Ordinance No. 2011-2362 95 Amending 1 itle Id — Land Use Code 6 an exception, even if the alternative is more expensive, or requires the property owner to build elsewhere or put the parcel to a different use than originally intended. 33_ "Highest adjacent grade" means the highest natural elevation of the ground surface prior to construction next to tyre proposed walls of a structure_ 34. "I listoric structure" rneans any structure that is: ,. Listed individually in the National Register of Historic Places (a listing maintained by the Department of interior) or preliminarily determined by the Secretary of the Interior as meeting the requirements for individual listing on the National Register; b. Certified or preliminarily determined by the Secretary of the Interior as contributing to the historical significance of a registered historic district or a district preliminarily determined by the Secretary to qualify as a registered historic district; c. Individually listed on a state inventory of historic places in stales with historic preservation programs which have been approved by the Secretary of Interior; or d. Individually listed on a local inventory of historic places in communities with historic preservation programs that have been certified either by an approved state program as determined by the Secretary of the Interior or directly by the Secretary of the Interior in states with approved programs. 35, "levee" means a man-made structure, usually an earthen embankment, designed and constructed in accordance with sound engineering practices to contain, control or divert the flow of water so as to provide protection from temporary flooding. 36_ "Levee system" means a flood protection system which consists of a levee, or levees, and associated structures, such as closure and drainage devices, which are constructed and operated in accord with sound engineering practices_ 37, "Lowest floor" means the lowest floor of the lowest enclosed area, including basement. An unfinished or flood resistant enclosure, usable solely for parking of vehicles, building access or storage in an area other than a basement area (see 'Basement") is not considered a building's lowest floor, provided that such enclosure is not built so as to render the structure in violation of the applicable nonelevation design requirements of this title. (Note: This definition allows attached garages to be built at grade. Below grade garages are not allowed as they are considered to be basements) 38. "Manufactured borne" or "mobile home" means a structure, transportable in one or more sections, which is built on a permanent chassis and is designed tor use with or without a permanent foundation when connected to the required utilities. The term "manufactured home" does not include "recreational vehicles" or "travel trailers." 39. "Manufactured homelmobile home park or subdivision" means a parcel (or contiguous parcels) of land divided into two or more manufactured home lots for sale or rent. 40. "Mean sea level" means, for purposes of the National Flood Insurance Program, the National Geodetic Vertical Datum (NGVD) of 1929 or other datum, to which base flood elevations shown on a community's Flood Insurance Rate Map are referenced. 41. "New construction" for floodpiain management purposes means structures for which the "start of construction" commenced on or after the effective date of floodplain management practices adopted by this community. and includes any subsequent improvements to such structures_ 42. "New manufactured home/mobile home park or subdivision" means a manufactured home/mobile home park or subdivision for which the construction of facilities for servicing the iols on which the manufactured horses/mobile homes are to be affixed (including, at a minimum, the installation of utilities, the construction of streets, and either final site grading or the pouring of concrete pads) is completed on or after the effective date of the ordinance codified in this chapter_ 43. "Obstruction" means and includes, but is not limited to, any dam, wall, wharf, embankment, levee, dike, pile, abutment, protection, excavation, channelization, bridge, conduit, culvert, building, wire, fence, rock, gravel, refuse, fill, structure, vegetation or other material in, or along, across or projecting into any watercourse which may alter, impede, retard or change the direction and/or velocity of the flow of water, or due to its location, its propensity to snare or collect debris carried by the flaw of water. er its likelihood of being carried downstream. 44 "One hundred year flood" - see "Base flood_" 45_ "Principal structure" means a structure used for the principal use of the property as distinguished from an accessory use. 46_ "Public safety and nuisance." as related to Section 18.30 260 of this chapter, means that the granting of an exception must not result in anything which is injurious to the safely or health of an entire Ordinance No. 201 1-2362 96 Amending Title 18 Land Use Code 7 community or neighborhood, or any considerable number of persons, or unlawfully obstructs the free passage or use, in the customary manner, of any navigable lake, or river, bay, stream, canal or basin. 47_ "Recreational vehicle" means a vehicle which is: a. Built on a single chassis; h. Four hundred square feet or less when measured at the largest horizontal projection; c_ Designed to be self-propelled or permanently towable by a light -duty truck; and d_ Designed primarily not for use as a permanent dwelling but as temporary living quarters for recreational, camping, travel, or seasonal use. 48_ "Regulatory floodway" means the channel of a river or other watercourse and the adjacent land areas that roust be reserved in order to discharge the base hood without cumulatively increasing the water - surface elevation more than one foot 49_ "Riverine" means relating to, forrned by, or resembling a river (including tributaries), stream, brook, etc. 50_ "Sheet flow" —see "Area of shallow flooding." 51. "Special flood hazard area (SF/ IA)" means an area having special flood or flood -related erosion hazards, and shown on a FBHM or FIRM as Zone A, AO, Al—A30, AL, A99 and AH_ 52. "Start of construction" means and includes substantial improvement and other proposed new development, and means the date the building permit was issued, provided the actual start of construction, repair, reconstruction, rehabilitation, addition, ;s acernent, or other improvement was within one hundred eighty days from the dale of the permit The actual start means either the first placement of permanent construction of a structure (other than a manufactured home) on a site, such as the pouring of slab or footings, Ore installation of piles, the construction of columns, or any work beyond the stage of excavation, or the placement of a manufactured home on a foundation_ Permanent construction does not include land preparation, such as clearing, grading, and filling, nor does it include the installation of streets and/or walkways. nor does it include excavation for a basement, footings, piers or foundations or the erection of temporary forms; nor does it include the installation on the property of accessory buildings:, such as garages or sheds not occupied as dwelling units or not part of the main structure. For a substantial improvement, the actual start of construction means the first alteration of any wall, ceiling, floor, or other structural part of a building, whether or not that alteration affects the external dimensions of the building For a structure (other than a mobile forme) without a basement or poured footings, the "start of construction" includes the first permanent framing or assembly of the structure or any part thereof on its piling or foundation- For mobile homes not within a mobile home park or mobile home subdivisions, "start of construction" means the affixing of the mobile home to its permanent site. For mobile homes within mobile home parks or mobile home subdivisions, "start of construction" is the date on which the construction of facilities for servicing the site on which the mobile home is to be affixed (including, al a minimum, the construction of streets, either final site grading or the pouring of concrete pads, arid installation of utilities) is completed. 53_ "Structure" means a walled and roofed building_ that is principally aboveground. This includes a gas or liquid storage tank or manufactured/mobile home. 54. "Substantial damage" means damage of any origin sustained by a structure whereby the cost of restoring the structure to its before damaged condition would equal or exceed fifty percent of the market value of the structure before the damage occurred. 55. "Substantial improvement" means any reconstruction, rehabilitation, addition or other proposed new development of a structure, the cost of which equals or exceeds fifty percent of the market value of the structure before the "start of construction" of the improvement This term includes structures which have incurred "substantial damage," regardless of the actual work performed The term does not, however, include either: a_ Any project for improvement of a structure to correct violations or to comply with state or local health, sanitary, or safety code specifications which have been identified by a local code conformance official and which arc solely necessary to assure safe living conditions; or b Any alteration of a "historic structure" provided that the alteration will not preclude the structure's continued designation as a "historic structure " 56. "Violation" means the failure of a structure or other development to he fully compliant with the community's floodplain management regulations_ A structure or other development without the elevation certificate, other certifications, or other evidence of compliance required in this chapter is presumed to be in violation until such time as that documentation is provided. Ordinance No 2011-2362 97 Amending Otte 18-Land Use Code 8 57 "Water surface elevation" means the height, in relation to the National Geodetic Vertical Datum (NGVD) of 1929 (or other datum, where specified), of Floods of various magnitudes and frequencies in the floodplains of coastal or riverine areas 58. "Watercourse" means a lake, river, creek, stream, wash, arroyo, channel or other topographic feature on or over which waters flow at least periodically. Watercourse includes specifically designated areas in wliich substantial flood damage may occur - LANDS TO WHICH CHAPTER APPLIES. This chapter shall apply to all areas of special flood hazards within the jurisdiction of National City. G - BASIS FOR Fes; I ABLISHING THE AREAS 01- SPECIAL FLOOD HAZARD The areas of special flood hazard as shown on the special flood hazard map as floodway (FW), ftoodway fringe (FF-1), and floodway fringe -shallow flooding (FF-2) zones and conforming with The areas of special flood hazard identified by the Federal Insurance Administration (FIA) of the Federal Emergency Management Agency (FEMA) in the Flood Insurance Study (FIS) for National City dated August 4, 1988, and accompanying Flood Insurance Rate Maps (FIRMS) and Hood Boundary and Fkxadway Maps (FBI -Ms), dated August 4, 1988, and all subsequent amendments and/or revisions, are adopted by reference and declared to be a part of this chapter_ phis FIS and attendant mapping is the minimum area of applicability of this chapter and may be supplemented by studies for other areas which allow implementation of this chapter and which are recommended to the planning commission by the floodplain administrator. The study, FIRMS and FBFMs are on file at the office of the floodplain administrator at 1243 National City Boulevard, National City, California, 91950_ 11 - COMPLIANCE. No structure or land shall hereafter be constructed, located, extended, converted or altered without hill compliance with the terms of this chapter and other applicable regulations. Violation of the requirements (including violations of conditions and safeguards established in connection with conditions) shall constitute a misdemeanor. Nothing herein shall prevent the city from taking such lawful action as s necessary to prevent or remedy any violation_ - INTERPRETATION In the interpretation and application of this chapter, all provisions shall be: A_ Considered as minimum requirements; B. Liberally construed in favor of the city; and C_ Deemed neither to limit nor repeal any other powers granted under state statutes J - SEVERABIL_ITY This chapter and the various parts thereof are declared to be severable. Should any section of this chapter be declared by the courts to be unconstitutional or invalid, such decision shall not affect the validity of the chapter as a whole, or any portion thereof other than the section so declared to be unconstitutional or invalid. K - FLOODWAY TONE (FW) ESTABLISHED There is established, on the special flood hazard reap, a designated floodway zone. The FW zone shall be applied to (lase areas of special flood hazard designated as floodways on the "Flood Boundary and Floodway Map" of the Flood Insurance Study. Ordinance No. 2011-2362 98 Amending Title 1B—Land Use Lode 9 L - FLOODWAY FRINGE ZONE (FF-1) ESTABI ISHFD There is established, on the special flood hazard map, a designated floodway fringe zone. The FF-1 zone shall be applied to those areas of sFcial flood hazard designated as floodway fringe on the "Flood Boundary and Floodway Map" of the Flood Insurance Study, but excluding areas of shallow flooding designated AO or AH on the Flood Insurance Rate Map (FIRM)_ M - FLOODWAY FRINGE --SHALLOW FLOODING TONE (FI -2) ESTABLISHED. There is established, on the special flood hazard map, a designated floodway fringe -shallow flooding zone I he FF-2 zone shall be applied to those areas of special flood hazard designated as floodway fringe on the "Flood Boundary and F000dway Map" of the Flood Insurance Study, and designated as areas of shallow flooding AO or AH on the Flood Insurance Rate Map (FIRM). N - STANDARDS APPLICABLE I O ALL AREAS OF SPECIAL FLOOD I IAZARD. In all areas of special flood hazards including the [W, FF-1 and FF-2 zones, the following standards are required: 1. Anchoring. a. All new construction and substantial improvements shall be adequately anchored to prevent flotation, collapse or lateral movement of the structure resulting from hydrodynamic and hydrostatic loads, including the effects of buoyancy. b. All manufactured/mobile homes shall meet the anchoring standards of Section 18.30.170_ 2. Construction Materials and Methods. All new construction and substantial improvements shall be constructed: a. With materials and utility equipment resistant to flood damage; b- Using methods and practices that minimize flood damage: c_ With electrical, heating, ventilation, plumbing, and air conditioning equipment and other service facilities that are designed and/or located so as to prevent water from entering or accumulating within the components during conditions of flooding; and if d. Within Zones AH or AO, so that there are adequate drainage paths around structures on slopes to guide flood waters around and away from proposed structures_ 3. Elevation and Flocxiproofing_ (See Section 18.30.050 definitions for "new construction," "substantial damage' and "substantial improvement_") a. Residential construction, new or substantial improvement, shall have the lowest floor, including basement: i. In an AO zone, elevated above the highest adjacent grade to a height exceeding the depth number specified in feet on the FIRM by at least one foot, or elevated at least three feet above the highest adjacent grade if no depth number is specified; ii. In an A zone, elevated at least one foot above the base flood elevation, as determines by the city, iii. In all other zones, elevated at least one foot above the base flood elevation. Upon the completion of the structure, the elevation of the lowest floor including basement shall be certified by a registered professional civil engineer or surveyor to be properly elevated. Such certification or verification shall be provided to the floodptain administrator. b. Nonresidential construction shall either be elevated to conform with subsection (C)(1) of this section or together with attendant utility and sanitary facilities i. Be completely floodproofed below the elevation recommended under subsection (C)(1) of this section so that the structure is watertight with walls substantially impermeable to the passage of water; and ii_ Have structural components capable of resisting hydrostatic and hydrodynamic loads and effects of buoyancy; and iii. Be certified by a registered professional civil engineer that the standards of this subsection (C)(2) of this section are satisfied. Such cerlificddion shall be provided to the ftoodplain administrator c. All new construction and substantial improvements with fully enclosed areas below the lowest floor (excluding basement) that are usable solely for parking vehicles, building access or storage, and which are subject to flooding shall be designed to automatically equalize hydrostatic flood forces on exterior Ordinance No. 2011-2362 99 Amending Title 18 - Land Use Code 10 walls by allowing for the entry and exit of floodwaters. Designs for meeting this requirement must exceed the following minimum criteria: i_ Be certified by a registered professional civil engineer; or ii. Be certified to comply with a local floodproofing standard approved by the Federal Insurance Administration, Federal Emergency Management Agency; or ill_ Have a minimum of two openings having a total net area of not less than one square inch for every square foot of enclosed area subject to flooding. The bottom of all openings shall be no higher than one foot above grade. Openings may be equipped with screens, louvers, valves or ether coverings or devices provided that they permit the automatic entry and exit of floodwaters_ d_ Manufactured homes shall also meet the standards in subsection (C)(3) of this section and Section 18.30.170. 4_ Storage of Material and Equipment_ a. The storage or processing of materials that are, in time of flooding, flammable, explosive, or could be injurious to human, animal or plant life is prohibited. h_ Storage of other material or equiprnent may be allowed if not subject to major damage by floods and firmly anchored to prevent flotation or if readily removable from the area within the time available after flood warning 0 - STANDARDS FOR UTILITIES. 1_ All new and replacement water supply and sanitary sewage systems shall be designed to minimize or eliminate: a_ Infiltration of floodwaters into the systems; and b. Discharge from the systems into floodwaters 2. On -site waste disposal systems shall he located to avoid impairment to them, or contamination from thern during flooding. P - STANDARDS FOR SUBDIVISIONS 1_ All preliminary subdivision proposals shall identify the flood hazard area and the elevation of the base flood 2. All subdivision plans will provide the elevation of proposed structure(s) and pad(s). If the site is filled above the base flood elevation, the final first floor and pad elevations shall he certitied_by a registered professional civil engineer or surveyor and provided to the floodplain administrator_ 3. All subdivision proposals shall be consistent with the need to minimize flood damage. 4_ All subdivision proposals shall have public utilities and facilities such as sewer, gas, electrical and water systems located and constructed to minimize flood damage_ 5_ All subdivisions shall provide adequate drainage to reduce exposure to flood hazards_ O - STANDARDS FOR MANUFACTURED HOMES/MOBILE HOMES. 1. All manufactured homes that are placed or substantially improved, within Lones A1-30, AH and AL on the Flood Insurance Rate Map, on sites located: a. Outside of a manufactured home park or subdivision; b. In a new manufactured home park or subdivision; c. In an expansion to an existing manufactured home park or subdry sion; or d In an existing manufactured home park or subdivision on a site upon which a manufactured home has incurred "substantial damage" as the result of a flood, shall he elevated on a permanent foundation such that the lowest floor of the manufactured home is elevated at least one fool above the base flood elevation and be securely anchored to an adequately anchored foundation system to resist flotation, collapse and lateral movement_ 2 All manufactured homes 10 be placed or substantially improved on sites in an existing manufactured home park or subdivision within Zones A1-30, All and AL on the Flood Insurance Rate Map that are not subject to the provisions of subsection A of this section shall be elevated so that either: a_ The lowest floor of the manufactured home is at least one foot above the base flood elevation, or Ordinance No. 2011-2362 100 Amending l isle 18 — hand Use Code b. The manufactured horse chassis is supported by reinforced piers or other foundation elements of at least equivalent strength that are no Tess than thirty-six inches in height above grade and shall be securely anchored to an adequately anchored foundation system to resist flotation, collapse and lateral movement 3. All mobile homes/manufactured horses shall be anchored to resist flotation, collapse er lateral movement by providing over -the -top and frame ties to ground anchors. Specific requirements shall be that, a. Over -the -top ties be provided at each of the four corners of the mobile home, with two additional ties per side at intermediate locations, with mobile homes less than fifty feet long requiring only one additional lie per side; b. Frame ties be provided at each corner of the home with five additional ties per side at intermediate points, with mobile homes less than fifty feet long requiring only four additional ties per side, c. All components of the anchoring system be capable of carrying a force of four thousand eight hundred pounds; and d. Any additions to the mobile home shall be similarly anchored - STANDARDS FOR RECREAT IONAI VEI IICLES Ali recreational vehicles placed on sites within Zones A1-30, Ali and AE on the community's Flood Insurance Rate Map will either. 1_ Be on the site for fewer than one hundred eiyhly consecutive days; 2_ Be fully licensed and ready for highway use —a recreational vehicle is ready for highway use i1 it is on its wheels or jacking system, is attached to the site only by quick disconnect type utilities and security devices, and has no permanently attached additions, or 3. Meet the perrnit requirements of Section 18.30.200 of this chapter and the elevation and anchoring requirements for manufactured homes ur Section 18.30.170A. S - FLOODWAYS (F\V). Located within areas of special flood hazard established in Section 18.30.070 are areas designated as floodways to which the following provisions apply: 1. Encroachments, including fill, new construction, manufactured homes, substantial improvements, and other development, shall be prohibited unless certification by a registered professional civil engineer is provided demonstrating that encroachments shall not result in any increase in flood levels during the occurrence of the base flood discharge 2. If Section 18 30.190A is satisfied, all new construction, substantial improvements, and other new development shall comply with all other applicable flood hazard reduction provisions of Sections 18.30.140 through 18 30 190 and require approval of a conditional use perrnit pursuant to Title 18 of the National City Municipal Code. (Ord. 2107 § 1 (part), 1996) - ESTARI 131IMENT OE DEVELOPMENT PERMI t A development permit shalt be obtained concurrently with or before issuance of any building. grading, conditional use, planned development, or planned unit development permit, or site plan approval, and before construction or development begins within any area of special flood hazard established in Section 18.30.070_ Application for a development permit shall be on forms furnished by the floodplain administrator and may include, but not be limited to: plans in duplicate drawn to scale showing the nature, location, dimensions and elevation of the area in question; existing or proposed structures, fill, storage of materials, drainage facilities; and the location of the foregoing_ Specifically, the following information is required: 1. Identify and describe the work to be covered by the permit for which application is rade; 2. Describe the land on which the proposed work is to be done by lot, block, tract. house and street address; or similar description that will readily identify and definitely locate the proposed building cr work, 3. Indicate the use or occupancy for which the proposed work is intended, 4. Re accompanied by plans and specifications for proposed construction: Ordinance No_ 2011-2362 101 Amending title 18 — t and Ilse Code 12 5. Be signed by the permittee or his authorized agent who may be required to submit evidence to indicate such authority; 6_ Proposed elevation in relation to mean sea level of the lowest floor (including hasement) of all structures in AO zone elevation of highest adjacent grade and proposed elevation of lowest floor of all structures; 7. Proposed elevation in relation to mean sea level to which any structure will be floodproofed, if required in Section 18.30.140(C)(3); 8. All appropriate certifications listed in Section 18.30.220E of this chapter; 9. Description of the extent to which any watercourse will he aitered or relocated as a result of the proposed development; 10. Give such other information as reasonably may he required by the floodplain administrator, including but not limited to: a_ A typical valley cross-section showing the channel of the stream, elevation of land areas adjoining each side of the channel, cross -sectional areas to be corrupted by the proposed development and higher water information, b_ Locations and elevations of streets, water supply, sanitary facilities, photographs showing existing land uses and vegetation upstream and downstream, soil types and other pertinent information, c. Profile showing the slope of the bottom of the channel or flow line of the stream, K_ Evidence of prior or concurrent approval of any conditional use permit which may be rea!ired by Section 18.30.220 for alteration of watercourses_ U - DESIGNATION OF THE El OODPLAIN ADMINISTRATOR The city engineer is appointed to administer, implement and enforce this chapter by granting or denying development permits in accord with its provisions. V - DUTIES AND RESPONSIBILITIES OF THE FLOODPLAIN ADMINIST RA I OR the duties of the floodplain administrator shall include, but not be limited to the following: 1. Permit Review. Review all development permits to determine that: a. Permit requirements of this chapter have been satisfied; b. All other required state and federal permits have been obtained; c_ I he site is reasonably safe from flooding; and d_ The proposed development does not adversely affect the carrying capacity of the areas where base Flood elevations have been determined but a floodway has not been designated_ 2. Review and Use of any Other Base Flood Data_ When base flood elevation data have not been provided in accordance with Section 18.30.070, the floodplain administrator shall obtain, review and reasonably utilize any base flood and floodway elevation data available from a federal or state agency or other source, in order to administer Sections 18.30.140 through 18.30.190, inclusive. Any such information shall be submitted to the city for adoption. 3_ Information to be Obtained and Maintained_ a_ Obtain and record the actual elevation (in relation to mean sea level) of the lowest habitahle floor (including basement) of alt new or substantially improved structures: b. For all new or substantially unproved flood -proofed structures: i. Verify and record the actual elevation (in relation to mean sea level); and u. Maintain the floodproofing certifications required in subsection (C)(1), (2) and (3) of Section 18.30.140, subsection B of Section 18.30.160, and subsection A of Section 18 30.190; c. Maintain for public inspection all records pertaining to the provisions of this chapter_ 4. Conditional Use Permit Required. In alteration or relocation of a watercourse, a conditional use permit shall he required by the planning commission. Such permit shall include the following conditions: a. Notification of adjacent communities and the California Department of Water Resources prior to alteration or relocation; b. Submission of evidence of such notification to the Federal Insurance Administration, Federal Emergency Management Agency: c_ Assurance that the flood carying capacity within the altered or relocated portion of said watercourse is maintainers, Ordinance No 2011-2362 102 Arnendrng 1 itle 18 - I and Ilse Code 13 d. The new channel shall he completed before the old channel is abandoned. 5 Documentation of Floodplain Development Obtain and maintain for public inspection and make available as needed the following a. Certification required by Section 18.30.140(C)(1) (floor elevations); b_ Certification required by Section 18 30.1'10(C)(2) (elevation or floodproofing of nonresidential structures); c. Certification required by Section 18.30.140(Cj(3) (wet ftoodproofing standard); d. Certification of elevation required by Section 18.30.160E (subdivision standards); e. Certification required by Section 18.30.190A (tloodway encroachments)_ 6. Remedial Action_ l ake action to remedy violations of this chapter as specified in Section 18.30.080_ W - MAP 1)L 1 LI;MINATION_ The boundaries of the FW, FF-1 and FF-2 zones shall he determined by the scale contained on the special flood hazard map. Where interpretation is needed to the exact location of said boundaries (for example where there appears to be a conflict between a mapped boundary and actual field conditions), the planning commission shall make such determination in accordance with this Title based upon 1. The recommendation of the lloodplain administrator. and 2. A review of the Flood Hazard Boundary Maps adopted by reference and declared to be a part of this chapter; and 3. Technical evidence which may be presented by the applicant The regulatory flood elevation for the point in question shall be the governing factor in locating the boundary on land. The person contesting the location of the boundary shall he given a reasonable opportunity to appeal the interpretation as provided in Section 18.30.240. X - APPEALS. The planning commission shall hear and decide appeals when it is alleged there is an error in any requirement, decision or determination made by the floodptain administrator in the enforcement or administration of this chapter. Appeals may be filed and shall be processed in the same manner as for site plan review as provided in this Title. Y - EXCEPTIONS_ 1_ Applications tor exceptions from the terns of this chapter shall be submitted and processed in the same manner as conditional use permits, as provided in this Title 2. In passing upon such applications for exceptions, the planning commission shall consider all technical evaluations, all relevant factors, standards specified in other sections of this chapter and the; a. Danger that materials may be swept onto other lands to the injury of others: b. Danger to life and property due to flooding or erosion damage; c. Susceptibility of the proposed facility and its contents to flood damage and the effect of such damage on the individual owner and future property owners: d_ Importance of the services provided by the proposed facility to the community; e. Necessity to the facility of a waterfront location where applicable; f. Availability of alternative locations for the proposed use which are not subject to flooding or erosion damage; g. Compatibility of the proposed use with existing and anticipated development; h. Relationship of the proposed use to the comprehensive plan and floodplain management program for that area; i. Safely of access to the property in times of flood for ordinary and emergency vehicles, j. Expected heights, velocity, duration, rate of rise, and sediment transport of the floodwaters expected at the site; and k. Costs of providing governmental services during and after flood conditions, including maintenance and repair of public utilities and facilities such as sev✓er, gas, electrical and water systems, and streets and bridges Ordinance No 2011 2362 103 Amending Title 10 — Land Use Code 14 3. Any applicant to whom an exception is granted shall be given written notice over the signature of a community official that: a. The issuance of an exception to construct a structure below the base flood level will result in increased premium rates for flood insurance; and b. Such construction below the base flood level increases risks to life and property. c A copy of the notice shall be recorded by the floodplain administrator in the office of the San Diego County Recorder and shall be recorded in a manner so that it appears in the chain of title of the affected parcel of land. 4. The floodplain administrator will maintain a record of all exception actions, including justification for their issuance, and report such exceptions issued in its biennial report submitted to the Federal Insurance Administration, Federal Emergency Management Agency_ Z - CONDI I IONS FOR EXCEPTIONS. 1. Generally, exceptions may be issued for new construction and substantial improvements and other proposed development to be erected on a lot of one-half acre or less in size contiguous to and surrounded by lots with existing structures constructed below the base flood level, providing items in Sections 18.30.140 through 18.30.210, inclusive, of this chapter have been fully considered. As the lot size increases beyond one-half acre, the technical justification required for issuing the exception increases. 2. Exceptions may be issued for the repair or rehabilitation of "historic structures" (as defined in Section 18.30.050 of this chapter) upon a determination that the proposed repair or rehabilitation will not preclude the structure's continued designation as a historic structure and the exception is the minimum necessary to preserve the historic character and design of the structure. 3. Exceptions shall not be issued within any 'napped regulatory floodway if any increase in flood levels during the base flood discharge would result. 4_ Exceptions shall only be issued upon a determination that the exception is the "minimum necessary," considering the flood hazard, to afford relief. "Minimum necessary" means to afford relief with a rninimum of deviation from the requirements of this chapter_ For example, in the case of exceptions to an elevation requirement, this means the planning commission need not grant permission for the applicant to build at grade, or even to whatever elevation the applicant proposes. but only to that elevation which the planning commission believes writ both provide relief and preserve the integrity of this chapter_ 5. Exceptions shall only be issued upon a. A showing of good and sufficient cause: b. A determination that failure to grant the exception would result in exceptional hardship to the applicant; and c. A determination that the granting of an exception will not result in increased flood heights, additional threats to public safety, extraordinary public expense, create nuisances, cause fraud on or victimization of the public as identified in Section 18.30.050 of this chapter, or conflict with existing local laws or ordinances. 6. Exceptions may he issued for new construction, substantial improvement, and other proposed development necessary for the conduct of a functionally dependent use provided That the provisions of Section 18.30.260A through E are satisfied and that the structure or other development is protected by methods that minimize flood damages during the base flood and does not result in additional threats to public safety and does not create a public nuisance. 7. Upon consideration of the factors of Section 18.30.250 and the purposes of this chapter, the planning commission may attach such conditions to the granting of exceptions as it deems necessary to further the purposes of this chapter. AA - FEES_ 1 A nonrefundable fee as established in the fee schedule adopted by the city shall be paid to the city at the time of filing an application for a development permit pursuant to Section 18.30.200_ 2. A nonrefundable fee as established in the fee schedule adopted by the city shall be paid to the city at the time of filing an appeal pursuant to Section 18.30.240_ 3_ A nonrefundable fee as established in the fee schedule adopted by the city shall be pad to the city at the lime of filing for an exception pursuant to Section 18.30.250. Ordinance No 2011-2362 104 Amending Title 18 Land Use Code 15 Detetioi Addition 18.29.070 FLOODWAY (-FW), FLOODWAY FRINGE (-FF-1), AND FLOODWAY FRINGE SHALLOW FLOODING (-FF-2) ZONES A - STATEMENT OF PURPOSE. It is the purpose of this chapter to promote the public health, safety and general welfare, and to minimize public and private losses due to flood conditions in specific areas by provisions designed to: 1. Protect human life and health; 2. Minimize expenditure of public money for costly flood control projects; 3. Minimize the need for rescue and relief efforts -associated with flooding and generally undertaken at the expense of the general public; 4. Minimize prolonged business interruptions; 5. Minimize damage to public facilities and utilities such as water and gas mains, electric, telephone and sewer lines, streets and bridges located in areas of special flood hazard; 6. Help maintain a stable tax base by providing for the second use and development of areas of special flood hazard so as to minimize future flood blight areas; 7. Ensure that potential buyers are notified that property is in an area of special flood hazard; and 8. Ensure that those who occupy the areas of special flood hazard assume responsibility for their actions. B - METHODS OF REDUCING FLOOD LOSSES. In order to accomplish its purposes, this chapter includes methods and provisions to: 1_ Restrict or prohibit uses which are dangerous to health, safety and property due to water or erosion hazards, or which result in damaging increases in erosion or flood heights or velocities; 2. Require that uses vulnerable to floods, including facilities which serve such uses, be protected against flood damage at the time of initial construction; 3_ Control the alteration of natural floodplains, stream channels and natural protective barriers, which help accommodate or channel froodwaters; 4. Control filling, grading, dredging, and other development which may increase flood damage; and 5. Prevent or regulate the construction of flood barriers which will unnaturally divert floodwaters or which may increase flood hazards in other areas. C - WARNING AND DISCLAIMER OF LIABILITY. The degree of flood protection required by this chapter is considered reasonable for regulatory purposes and is based on scientific and engineering considerations. Larger floods can and will occur on rare occasions_ Flood heights may be increased by man- made or natural causes. This chapter does not imply that land outside the areas of special flood hazards or uses permitted within such areas will be free from flooding or flood damages. This chapter shall not create liability on the part of the city, any officer or 16 employee thereof, the state of California or the Federal Insurance Administration, Federal Emergency Management Agency for any flood damages that result from reliance on this chapter or any administrative decision lawfully made thereunder. D - ABROGATION AND GREATER RESTRICTIONS. This chapter is not intended to repeal, abrogate or impair any existing easements, covenants or deed restrictions. However, where this chapter and another chapter, easement, covenant or deed restrictions conflict or overlap, whichever imposes the more stringent restriction shall prevail. E - DEFINITIONS_ Unless specifically defined below, or in this Title, words or phrases used in this chapter shall be interpreted so as to give them the meaning they have in common usage and to give this chapter its most reasonable application. 1. "Accessory use" means a use which is incidental and subordinate to the principal use of the parcel of land on which it is located. 2. "Adversely affects" means, for purposes of this chapter, that the cumulative effect of the proposed development when combined with all other existing and anticipated development will increase the water surface elevation of the base flood more than one foot at any point. 3_ "Alluvial fan" means a geomorphologic feature characterized by a cone- or fan -shaped deposit of boulders, gravel, and fine sediments that have been eroded from slopes, transported by flood flows, and then deposited on the valley floor, and which is subject to flash flooding, high velocity flows, debris flows, erosion, sediment movement and deposition, and channel migration. 4. "Apex" means the point of highest elevation on an alluvial fan, which on undisturbed fans is generally the point where the major stream that formed the fan emerges from the slope. 5. "Appeal" means a request for a review of the floodplain administrator's interpretation of any provision of this chapter. 6. "Area of shallow flooding" means a designated AO or AH zone on (he Flood Insurance Rate Map (FIRM). The base flood depths range from one to three feet; a clearly defined channel does not exist, the path of flooding is unpredictable and indeterminate; and, velocity flow may be evident. Such flooding is characterized by ponding or sheet flow. 7. "Area of special flood hazard" —see "Special flood hazard area." 8. "Base flood" means a flood which has a one percent chance of being equaled or exceeded in any given year (also called the "one hundred year flood"). Base flood is the term used throughout this chapter. 9. "Basement" means any area of the building having its floor subgrade—i.e., below ground level —on all sides. 10. "Building" —see "Structure." 11. "Development" means any man-made change to improved or unimproved real estate, including but not limited to buildings or other structures, mining, dredging, filling, grading, paving, excavation or drilling operations, or storage of equipment or materials_ 12_ "Encroachment' means the advance or infringement of uses, plant growth, fill, excavation, buildings, permanent structures or development into a floodplain which may impede or alter the flow capacity of a floodplain. 13. "Exception" means a grant of relief from the requirements of this chapter which permits construction in a manner that would otherwise be prohibited by this chapter. 17 14. "Existing manufactured home/mobile home park or subdivision" means a manufactured home park or subdivision for which the construction of facilities for servicing the lots on which the manufactured homes/mobile homes are to be affixed (including, at a minimum, the installation of utilities, the construction of streets, and either final site grading or the pouring of concrete pads) is completed before the effective date of this chapter. 15. "Expansion to an existing manufactured home/mobile home park or subdivision" means the preparation of additional sites by the construction of facilities for servicing the Tots on which the manufactured homes/mobile homes are to be affixed (including the installation of utilities, the construction of streets, and either final site grading or pouring of concrete pads) 16. "Flood, flooding or floodwater" means a general and temporary condition of partial or complete inundation of normally dry land areas from the overflow of inland or tidal waters, and/or the unusual and rapid accumulation or runoff of surface waters from any source. 17. "Flood Boundary and Floodway Map (FBFM)" means the official map on which the Federal Emergency Management Agency or Federal Insurance Administration has delineated both the areas of special flood hazards and the floodway. 18. "Hood Hazard Boundary Map" means the official map on which the Federal Emergency Management Agency or Federal Insurance Administration has delineated the areas of flood hazards. 19_ "Flood Insurance Rate Map (FIRM)" means the official map on which the Federal Emergency Management Agency or the Federal Insurance Administration has delineated both the areas of special flood hazards and the risk premium zones applicable to the community. 20. "Flood Insurance Study" means the official report provided by the Federal Insurance Administration that includes flood profiles, the Flood Insurance Rate Map, the Flood Boundary and Floodway Map, and the water surface elevation of the base flood. 21. "Floodplain or flood -prone area" means any land area susceptible to being inundated by water from any source see "Flooding_" 22. "Floodplain administrator" means the individual appointed to administer and enforce the floodplain management regulations This individual shall be the city engineer of the city_ 23. "Floodplain management" means the operation of an overall program of corrective and preventive measures for reducing flood damage and preserving and enhancing, where possible, natural resources in the floodplain, including but not limited to emergency preparedness plans, flood control works, floodplain management regulations, and open space plans. 24. "Floodplain management regulations" means this chapter and other zoning ordinances, subdivision regulations, building codes, health regulations, special purpose ordinances (such as grading and erosion control) and other applications of police power which control development in flood -prone areas. The term describes federal, state or local regulations in any combination thereof which provide standards for preventing and reducing flood loss and damage. 25. "Floodproofing" means any combination of structural and nonstructural additions, changes or adjustments to structures which reduce or eliminate flood damage to real estate or improved real property, water and sanitary facilities, structures and their contents. 26. "Floodway" means the channel of a river or other watercourse and the adjacent land areas that must be reserved in order to discharge the base flood without cumulatively 18 increasing the water surface elevation more than one foot. Also referred to as "regulatory floodway." 27. "Floodway encroachment lines" means the lines marking the limits of floodways on federal, state and local floodplain maps 28. "Floodway fringe" means that area of the floodplain on either side of the "regulatory {Ioodway" where encroachment may be permitted. 29. "Fraud and victimization," as related to subsection Z 1€1.-30.260 (Conditions for exceptions) of this chapter, means that the exception granted must not cause fraud on or victimization of the public. In examining this requirement, the planning commission will consider the fact that every newly constructed building adds to government responsibilities and remains a part of the community for fifty to one hundred years. Buildings that are permitted to be constructed below the base flood elevation are subject, during all those years, to increased risk of damage from floods, while future owners of the property and the community as a whole are subject to all the costs, inconvenience, danger, and suffering that those increased flood damages bring. In addition, future owners may purchase the property, unaware that it is subject to potential flood damage, and can be insured only at very high flood insurance rates. 30. "Functionally dependent use" means a use which cannot perform its intended purpose unless it is located or carried out in close proximity to water. The term includes only docking facilities, port facilities that are necessary for the loading and unloading of cargo or passengers, and ship building and ship repair facilities, and does not include long-term storage or related manufacturing facilities. 31. "Habitable floor" means any floor usable for living purposes, which includes working, sleeping, eating, cooking or recreation, or a combination thereof. A floor used only for storage purposes is not a "habitable floor_" 32. "Hardship," as related to subsection Z 1-8 0-260 (Conditions for exceptions) of this chapter, means the unusual hardship that would result from a failure to grant the requested exception. The planning commission requires that the exception be unusual and peculiar to the property involved. Mere economic or financial hardship alone is not exceptional. Inconvenience, aesthetic considerations, physical handicaps, personal preferences, or the disapproval of one's neighbors likewise cannot, as a rule, qualify as an exceptional hardship. All of these problems can be resolved through other means without granting an exception, even if the alternative is more expensive, or requires the property owner to build elsewhere or put the parcel to a different use than originally intended. 33. "Highest adjacent grade" means the highest natural elevation of the ground surface prior to construction next to the proposed walls of a structure 34. "Historic structure" means any structure that is: a. Listed individually in the National Register of Historic Places (a listing maintained by the Department of Interior) or preliminarily determined by the Secretary of the Interior as meeting the requirements for individual listing on the National Register; b. Certified or preliminarily determined by the Secretary of the Interior as contributing to the historical significance of a registered historic district or a district preliminarily determined by the Secretary to qualify as a registered historic district; c. Individually listed on a state inventory of historic places in states with historic preservation programs which have been approved by the Secretary of Interior; or d. Individually listed on a local inventory of historic places in communities with historic preservation programs that have been certified either by an approved state program as determined by the Secretary of the Interior or directly by the Secretary of the Interior in states with approved programs. 19 35. "Levee" means a man-made structure, usually an earthen embankment, designed and constructed in accordance with sound engineering practices to contain, control or divert the flow of water so as to provide protection from temporary flooding. 36. "Levee system" means a flood protection system which consists of a levee, or levees, and associated structures, such as closure and drainage devices, which are constructed and operated in accord with sound engineering practices. 37_ "Lowest floor" means the lowest floor of the lowest enclosed area, including basement. An unfinished or flood resistant enclosure, usable solely for parking of vehicles, building access or storage in an area other than a basement area (see "Basement") is not considered a building's lowest floor, provided that such enclosure is not built so as to render the structure in violation of the applicable nonelevation design requirements of this title. (Note: This definition allows attached garages to be built at grade. Below grade garages are not allowed as they are considered to be basements) 38. "Manufactured home" or "mobile home" means a structure, transportable in one or more sections, which is built on a permanent chassis and is designed for use with or without a permanent foundation when connected to the required utilities. The term "manufactured home" does not include "recreational vehicles" or "travel trailers." 39. "Manufactured home/mobile home park or subdivision" means a parcel (or contiguous parcels) of land divided into two or more manufactured home lots for sale or rent. 40. "Mean sea level" means, for purposes of the National Flood Insurance Program, the National Geodetic Vertical Datum (NGVD) of 1929 or other datum, to which base flood elevations shown on a community's Flood Insurance Rate Map are referenced_ 41. "New construction" for floodplain management purposes means structures for which the "start of construction" commenced on or after the effective date of floodplain management practices adopted by this community, and includes any subsequent improvements to such structures. 42. "New manufactured home/mobile home park or subdivision" means a manufactured home/mobile home park or subdivision for which the construction of facilities for servicing the lots on which the manufactured homes/mobile homes are to be affixed (including, at a minimum, the installation of utilities, the construction of streets, and either final site grading or the pouring of concrete pads) is completed on or after the effective date of the ordinance codified in this chapter. 43. "Obstruction" means and includes, but is not limited to, any dam, wall, wharf, embankment, levee, dike, pile, abutment, protection, excavation, channelization, bridge, conduit, culvert, building, wire, fence, rock, gravel, refuse, fill, structure, vegetation or other material in, or along, across or projecting into any watercourse which may alter, impede, retard or change the direction and/or velocity of the flow of water, or due to its location, its propensity to snare or collect debris carried by the flow of water, or its likelihood of being carried downstream. 44. "One hundred year flood" —see "Base flood." 45. "Principal structure" means a structure used for the principal use of the property as distinguished from an accessory use. 46. "Public safety and nuisance," as related to subsection Z-1836-260 (Conditions for exceptions) of this chapter, means that the granting of an exception must not result in anything which is injurious to the safety or health of an entire community or neighborhood, or any considerable number of persons, or unlawfully obstructs the free passage or use, in the customary manner, of any navigable lake, or river, bay, stream, canal or basin. 47. "Recreational vehicle" means a vehicle which is: a. Built on a single chassis: 20 b. Four hundred square feet or less when measured at the largest horizontal projection; c. Designed to be self-propelled or permanently towable by a light -duty truck: and d. Designed primarily not for use as a permanent dwelling but as temporary living quarters for recreational, camping, travel, or seasonal use. 48. "Regulatory floodway" means the channel of a river or other watercourse and the adjacent land areas that must be reserved in order to discharge the base flood without cumulatively increasing the water surface elevation more than one foot. 49. "Riverine" means relating to, formed by, or resembling a river (including tributaries), stream, brook, etc. 50. "Sheet flow" —see "Area of shallow flooding." 51. "Special flood hazard area (SFHA)" means an area having special flood or flood - related erosion hazards, and shown on a FBHM or FIRM as Zone A, AO, Al A30, AE, A99 and AH. 52. "Start of construction" means and includes substantial improvement and other proposed new development, and means the date the building permit was issued, provided the actual start of construction, repair, reconstruction, rehabilitation, addition, placement, or other improvement was within one hundred eighty days from the date of the permit. The actual start means either the first placement of permanent construction of a structure (other than a manufactured home) on a site, such as the pouring of slab or footings, the installation of piles, the construction of columns, or any work beyond the stage of excavation; or the placement of a manufactured home on a foundation. Permanent construction does not include land preparation, such as clearing, grading, and filling; nor does it include the installation of streets and/or walkways; nor does it include excavation for a basement, footings, piers or foundations or the erection of temporary forms; nor does it include the installation on the property of accessory buildings, such as garages or sheds not occupied as dwelling units or not part of the main structure. For a substantial improvement, the actual start of construction means the first alteration of any wall, ceiling, floor, or other structural part of a building, whether or not that alteration affects the external dimensions of the building_ For a structure (other than a mobile home) without a basement or poured footings, the "start of construction" includes the first permanent framing or assembly of the structure or any part thereof on its piling or foundation_ For mobile homes not within a mobile home park or mobile home subdivisions, "start of construction" means the affixing of the mobile home to its permanent site. For mobile homes within mobile home parks or mobile home subdivisions, "start of construction" is the date on which the construction of facilities for servicing the site on which the mobile home is to be affixed (including, at a minimum, the construction of streets, either final site grading or the pouring of concrete pads, and installation of utilities) is completed. 53. "Structure" means a walled and roofed building that is principally aboveground. This includes a gas or liquid storage tank or manufactured/mobile home. 54. "Substantial damage" means damage of any origin sustained by a structure whereby the cost of restoring the structure to its before damaged condition would equal or exceed fifty percent of the market value of the structure before the damage occurred_ 55. "Substantial improvement" means any reconstruction, rehabilitation, addition or other proposed new development of a structure, the cost of which equals or exceeds fifty percent of the market value of the structure before the "start of construction" of the improvement. This term includes structures which have incurred "substantial damage," regardless of the actual work performed. The term does not, however, include either: a. Any project for improvement of a structure to correct violations or to comply with state or local health, sanitary, or safety code specifications which have been identified by a 21 local code conformance official and which are solely necessary to assure safe living conditions; or b. Any alteration of a "historic structure" provided that the alteration will not preclude the structure's continued designation as a "historic structure." 56. "Violation" means the failure of a structure or other development to be fully compliant with the community's floodplain management regulations. A structure or other development without the elevation certificate, other certifications, or other evidence of compliance required in this chapter is presumed to be in violation until such time as that documentation is provided. 57. "Water surface elevation" means the height, in relation to the National Geodetic Vertical Datum (NGVD) of 1929 (or other datum, where specified), of floods of various magnitudes and frequencies in the floodplains of coastal or riverine areas. 58. "Watercourse" means a lake, river, creek, stream, wash, arroyo, channel or other topographic feature on or over which waters flow at least periodically. Watercourse includes specifically designated areas in which substantial flood damage may occur. F - LANDS TO WHICH CHAPTER APPLIES. This chapter shall apply to all areas of special flood hazards within the jurisdiction of National City. G - BASIS FOR ESTABLISHING THE AREAS OF SPECIAL FLOOD HAZARD. The areas of special flood hazard as shown on the special flood hazard map as floodway (FW), floodway fringe (FF-1), and floodway fringe -shallow flooding (FF-2) zones and conforming with the areas of special flood hazard identified by the Federal Insurance Administration (FIA) of the Federal Emergency Management Agency (FEMA) in the Flood Insurance Study (FIS) for National City dated August 4, 1988, and accompanying Flood Insurance Rate Maps (FIRMs) and Flood Boundary and Floodway Maps (FBFMs), dated August 4, 1988, and all subsequent amendments and/or revisions, are adopted by reference and declared to be a part of this chapter. This FIS and attendant mapping is the minimum area of applicability of this chapter and may be supplemented by studies for other areas which allow implementation of this chapter and which are recommended to the planning commission by the floodplain administrator. The study, FIRMs and FBFMs are on file a'. the office of the floodplain administrator at 1243 National City Boulevard, National City, California, 91950. H - COMPLIANCE. No structure or land shall hereafter be constructed, located, extended, converted or altered without full compliance with the terms of this chapter and other applicable regulations_ Violation of the requirements (including violations of conditions and safeguards established in connection with conditions) shall constitute a misdemeanor. Nothing herein shall prevent the city from taking such lawful action as is necessary to prevent or remedy any violation. I - INTERPRETATION. In the interpretation and application of this chapter, all provisions shall be: A. Considered as minimum requirements; B. Liberally construed in favor of the city; and 22 C. Deemed neither to limit nor repeal any other powers granted under state statutes. J - SEVERABILITY. This chapter and the various parts thereof are declared to be severable. Should any Fection of this chapter be declared by the courts to be unconstitutional or invalid, such decision shall not affect the validity of the chapter as a whole, or any portion thereof other than the section so declared to be unconstitutional or invalid. K - FLOODWAY ZONE (FW) ESTABLISHED. There is established, on the special flood hazard map, a designated floodway zone. The FW zone shall be applied to those areas of special flood hazard designated as floodways on the "Flood Boundary and Floodway Map" of the Flood Insurance Study. L - FLOODWAY FRINGE ZONE (FF-1) ESTABLISHED. There is established, on the special flood hazard map, a designated floodway fringe zone. The FF-1 zone shall be applied to those areas of special flood hazard designated as floodway fringe on the "Flood Boundary and Floodway Map" of the Flood Insurance Study, but excluding areas of shallow flooding designated AO or AH on the Flood Insurance Rate Map (FIRM). M - FLOODWAY FRINGE —SHALLOW FLOODING ZONE (FF-2) ESTABLISHED. There is established, on the special flood hazard map, a designated floodway fringe - shallow flooding zone. The FF-2 zone shall be applied to those areas of special flood hazard designated as floodway fringe on the "Flood Boundary and Floodway Map" of the Flood Insurance Study, and designated as areas of shallow flooding AO or AH on the Flood Insurance Rate Map (FIRM). N - STANDARDS APPLICABLE TO ALL AREAS OF SPECIAL FLOOD HAZARD. In all areas of special flood hazards including the FW, FF-1 and FF-2 zones, the following standards are required: 1. Anchoring. a. All new construction and substantial improvements shall be adequately anchored to prevent flotation, collapse or lateral movement of the structure resulting from hydrodynamic and hydrostatic loads, including the effects of buoyancy. b. All manufactured/mobile homes shall meet the anchoring standards of subsection O 1-8. 30.170. 2. Construction Materials and Methods. All new construction and substantial improvements shall be constructed: a With materials and utility equipment resistant to flood damage; b. Using methods and practices that minimize flood damage; c. With electrical, heating, ventilation, plumbing, and air conditioning equipment and other service facilities that are designed and/or located so as to prevent water from entering or accumulating within the components during conditions of flooding; and if d. Within Zones AH or AO, so that there are adequate drainage paths around structures on slopes to guide flood waters around and away from proposed structures. 23 3. Elevation and Floodproofing. (See subsection E 48.30.050 definitions for "new construction," "substantial damage" and "substantial improvement.") a. Residential construction, new or substantial improvement, shall have the lowest floor, including basement: i. In an AO zone, elevated above the highest adjacent grade to a height exceeding the depth number specified in feet on the FIRM by at least one foot, or elevated at least three feet above the highest adjacent grade if no depth number is specified; ii. In an A zone, elevated at least one foot above the base flood elevation, as determined by the city; iii. In all other zones, elevated at least one foot above the base flood elevation. Upon the completion of the structure, the elevation of the lowest floor including basement shall be certified by a registered professional civil engineer or surveyor to be properly elevated. Such certification or verification shall be provided to the floodplain administrator. b. Nonresidential construction shall either be elevated to conform with subsection 3 a (L;)(-1) of this section or together with attendant utility and sanitary facilities: I_ Be completely floodproofed below the elevation recommended under subsection 3 a (C)(1-) of this section so that the structure is watertight with walls substantially impermeable to the passage of water; and ii_ Have structural components capable of resisting hydrostatic and hydrodynamic loads and effects of buoyancy; and iii. Be certified by a registered professional civil engineer that the standards of this subsection 3 b (G)(2) of this section are satisfied. Such certification shall be provided to the floodplain administrator. c. All new construction and substantial improvements with fully enclosed areas below the lowest floor (excluding basement) that are usable solely for parking vehicles, building access or storage, and which are subject to flooding shall be designed to automatically equalize hydrostatic flood forces on exterior walls by allowing for the entry and exit of floodwaters. Designs for meeting this requirement must exceed the following minimum criteria: i. Be certified by a registered professional civil engineer; or ii. Be certified to comply with a local floodproofing standard approved by the Federal Insurance Administration, Federal Emergency Management Agency; or iii. Have a minimum of two openings having a total net area of not less than one square inch for every square foot of enclosed area subject to flooding. The bottom of all openings shall be no higher than one foot above grade. Openings may be equipped with screens, louvers, valves or other coverings or devices provided that they permit the automatic entry and exit of floodwaters. d_ Manufactured homes shall also meet the standards in subsection 3 c (G)(3) of this section and subsection Q 4. Storage of Material and Equipment. a. The storage or processing of materials that are, in time of flooding, flammable, explosive, or could be injurious to human, animal or plant life is prohibited. b. Storage of other material or equipment may be allowed if not subject to major damage by floods and firmly anchored to prevent flotation or if readily removable from the area within the time available after flood warning. 0 - STANDARDS FOR UTILITIES- 1 _ All new and replacement water supply and sanitary sewage systems shall be designed to minimize or eliminate: a Infiltration of floodwaters into the systems; and 24 b. Discharge from the systems into floodwaters. 2. On -site waste disposal systems shall be located to avoid impairment to them, or contamination from them during flooding. P - STANDARDS FOR SUBDIVISIONS. 1. All preliminary subdivision proposals shall identify the flood hazard area and the elevation of the base flood. 2. All subdivision plans will provide the elevation of proposed structure(s) and pad(s). If the site is filled above the base flood elevation, the final first floor and pad elevations shall be certified by a registered professional civil engineer or surveyor and provided to the floodplain administrator. 3. AU subdivision proposals shall be consistent with the need to minimize flood damage 4. All subdivision proposals shall have public utilities and facilities such as sewer, gas. electrical and water systems located and constructed to minimize flood damage. 5. All subdivisions shall provide adequate drainage to reduce exposure to flood hazards. Q - STANDARDS FOR MANUFACTURED HOMES/MOBILE HOMES. 1. All manufactured homes that are placed or substantially improved, within Zones Al 30, AH and AE on the Flood Insurance Rate Map, on sites located: a. Outside of a manufactured home park or subdivision; b. In a new manufactured home park or subdivision; c. In an expansion to an existing manufactured home park or subdivision; or d. In an existing manufactured home park or subdivision on a site upon which a manufactured home has incurred "substantial damage" as the result of a flood, shall be elevated on a permanent foundation such that the lowest floor of the manufactured home is elevated at least one foot above the base flood elevation and be securely anchored to an adequately anchored foundation system to resist flotation, collapse and lateral movement. 2. All manufactured homes to be placed or substantially improved on sites in an existing manufactured home park or subdivision within Zones A1-30, AH and AE on the Flood Insurance Rate Map that are not subject to the provisions of subsection A of this section shall be elevated so that either: a. The lowest floor of the manufactured home is at least one foot above the base flood elevation; or b. The manufactured home chassis is supported by reinforced piers or other foundation elements of at least equivalent strength that are no less than thirty-six inches in height above grade and shall be securely anchored to an adequately anchored foundation system to resist flotation, collapse and lateral movement. 3. All mobile homes/manufactured homes shall be anchored to resist flotation, collapse or lateral movement by providing over -the -top and frame ties to ground anchors. Specific requirements shall be that: a. Over -the -top ties be provided at each of the four comers of the mobile home, with two additional ties per side at intermediate locations, with mobile homes less than fifty feet long requiring only one additional tie per side; b. Frame ties be provided at each corner of the home with five additional ties per side at intermediate points, with mobile homes less than fifty feet long requiring only four additional ties per side; c. All components of the anchoring system be capable of carrying a force of four thousand eight hundred pounds; and 25 d Any additions to the mobile home shall be similarly anchored. R - STANDARDS FOR RECREATIONAL VEHICLES. All recreational vehicles placed on sites within Zones A1-30, AH and AE on the community's Hood Insurance Rate Map will either: 1. Be on the site for fewer than one hundred eighty consecutive days; 2. Be fully licensed and ready for highway use —a recreational vehicle is ready for highway use if it is on its wheels or jacking system, is attached to the site only by quick disconnect type utilities and security devices, and has no permanently attached additions; or 3. Meet the permit requirements of subsection T 18 0400 of this chapter and the elevation and anchoring requirements for manufactured homes in subsection 0 1 a 18: 3047AA. S - FLOODWAYS (FW)_ Located within areas of special flood hazard established in subsection G 48.30.0-70 are areas designated as floodways to which the following provisions apply: 1. Encroachments, including fill, new construction, manufactured homes, substantial improvements, and other development, shall be prohibited unless certification by a registered professional civil engineer is provided demonstrating that encroachments shall not result in any increase in flood levels during the occurrence of the base flood discharge. 2. If subsection S 1 48.30.190A is satisfied, all new construction, substantial improvements, and other new development shall comply with all other applicable flood hazard reduction provisions of subsections N 18:30.1- 0 through S 18.30-1-90 and require approval of a Conditional Use Permit pursuant to Title 18 of the National City Municipal Code. (Ord. 2107 § 1 (part), 1996) T - ESTABLISHMENT OF DEVELOPMENT PERMIT. A development permit shall be obtained concurrently with or before issuance of any building, grading, conditional use, planned development, or planned unit development permit, or site plan approval, and before construction or development begins within any area of special flood hazard established subsection G 18.30.070. Application for a development permit shall be on forms furnished by the floodplain administrator and may include, but not be limited to: plans in duplicate drawn to scale showing the nature, location, dimensions and elevation of the area in question; existing or proposed structures, fill, storage of materials, drainage facilities; and the location of the foregoing. Specifically, the following information is required: 1. identify and describe the work to be covered by the permit for which application is made; 2_ Describe the land on which the proposed work is to be done by lot, block, tract, house and street address; or similar description that will readily identify and definitely locate the proposed building or work; 3. Indicate the use or occupancy for which the proposed work is intended; 4. Be accompanied by plans and specifications for proposed construction; 5_ Be signed by the permittee or his authorized agent who may be required to submit evidence to indicate such authority; 26 6. Proposed elevation in relation to mean sea level of the lowest floor (including basement) of all structures in AO zone elevation of highest adjacent grade and proposed elevation of lowest floor of all structures; 7. Proposed elevation in relation to mean sea level to which any structure will be floodproofed, if required in subsection N 3 c 18:30.140(G)(3); All appropriate certifications listed in subsection V 5 48-30..-220€ of this chapter; 9. Description of the extent to which any watercourse will be altered or relocated as a result of the proposed development; 10. Give such other information as reasonably may he required by the floodplain administrator, including but not limited to: a. A typical valley cross-section showing the channel of the stream, elevation of land areas adjoining each side of the channel, cross -sectional areas to be corrupted by the proposed development and higher water information, b. Locations and elevations of streets, water supply, sanitary facilities, photographs showing existing land uses and vegetation upstream and downstream, soil types and other pertinent information, c. Profile showing the slope of the bottom of the channel or flow line of the stream; K. Evidence of prior or concurrent approval of any Conditional Use Permit which may be required by subsection V 48-30-2-20 for alteration of watercourses. U - DESIGNATION OF THE FLOODPLAIN ADMINISTRATOR. The city engineer is appointed to administer, implement and enforce this chapter by granting or denying development permits in accord with its provisions. V - DUTIES AND RESPONSIBILITIES OF THE FLOODPLAIN ADMINISTRATOR. The duties of the floodplain administrator shall include, but not be limited to the following: 1. Permit Review. Review all development permits to determine that: a. Permit requirements of this chapter have been satisfied; b. All other required state and federal permits have been obtained; c. The site is reasonably safe from flooding; and d_ The proposed development does not adversely affect the carrying capacity of the areas where base flood elevations have been determined but a floodway has not been designated. 2. Review and Use of any Other Base Flood Data. When base flood elevation data have not been provided in accordance with subsection G 4-8--30 070, the floodplain administrator shall obtain, review and reasonably utilize any base flood and floodway elevation data available from a federal or state agency or other source, in order to administer subsections N 48-30440 through S 18-30 190, inclusive. Any such information shall be submitted to the city for adoption. 3. Information to be Obtained and Maintained. a. Obtain and record the actual elevation (in relation to mean sea level) of the lowest habitable floor (including basement) of all new or substantially improved structures; b. For all new or substantially improved flood -proofed structures: i. Verify and record the actual elevation (in relation to mean sea level); and ii. Maintain the floodproofing certifications required in subsection 3 a h and c (G -'1), (2) and (3) of subsection N 1R-30-140, part 2 subsection B of subsection P-18.30-1-fi0, and part 1 subsection --A of subsection S 484i0-4-90; c. Maintain for public inspection all records pertaining to the provisions of this chapter. 27 4. Conditional Use Permit Required. In alteration or relocation of a watercourse, a Conditional Use Permit shall be required by the planning commission. Such permit shall include the following conditions: a. Notification of adjacent communities and the California Department of Water Resources prior to alteration or relocation; b. Submission of evidence of such notification to the Federal Insurance Administration, Federal Emergency Management Agency; c_ Assurance that the flood carrying capacity within the altered or relocated portion of said watercourse is maintained; d. The new channel shall be completed before the old channel is abandoned. 5. Documentation of Floodplain Development. Obtain and maintain for public inspection and make available as needed the following: a. Certification required by subsection N 3 a18-40-140(C)(1) (floor elevations); b. Certification required by subsection N 3 b 18.30-.-140(C)(--2) (elevation or floodproofing of nonresidential structures); c. Certification required by subsection N 3 c -18-80-140(C)(3) (wet floodproofing standard); d. Certification of elevation required by subsection P 2 1-84O-Th0B (subdivision standards); e. Certification required by subsection S 1 18.30.190A (floodway encroachments). 6. Remedial Action. Take action to remedy violations of this chapter as specified in subsection H 48.30.08-0. 7. Base Flood Elevation changes due to physical alterations: a. Within 6 months of information becoming available or project completion, whichever comes first, the floodplain administrator shall submit or assure that the permit applicant submits technical or scientific data to FEMA for a Letter of Map Revision (LOMR) b. All LOMR's for flood control projects are approved prior to the issuance of building permits. Building Permits must not be issued based on Conditional Letters of Map Revision (CLOMR's). Approved CLOMR's allow construction of the proposed flood control project and land preparation as specified in the "start of construction" definition. Such submissions are necessary so that upon confirmation of those physical changes affecting rlooding conditions, risk premium rates and floodplain management requirements are based on current data_ 8. Changes in corporate boundaries: Notify FEMA in writing whenever the corporate boundaries have been modified by annexation or other means and include a copy of a map of the community clearly delineating the new corporate limits. W - MAP DETERMINATION. The boundaries of the FW, FF-1 and FF-2 zones shall be determined by the scale contained on the special flood hazard map. Where interpretation is needed to the exact location of said boundaries (for example where there appears to be a conflict between a mapped boundary and actual field conditions), the planning commission shall make such determination in accordance with this Title based upon: 1. The recommendation of the floodplain administrator; and 28 2. A review of the Flood Hazard Boundary Maps adopted by reference and declared to be a part of this chapter; and 3. Technical evidence which may be presented by the applicant. The regulatory flood elevation for the point in question shall be the governing factor in locating the boundary on land. The person contesting the location of the boundary shall be given a reasonable opportunity to appeal the interpretation as provided in subsection X 4 _30-240. X - APPEALS. The planning commission shall hear and decide appeals when it is alleged there is an error in any requirement, decision or determination made by the floodplain administrator in the enforcement or administration of this chapter. Appeals may be filed and shall be processed in the same manner as for site plan review as provided in this Title. Y - EXCEPTIONS. 1. Applications for exceptions from the terms of this chapter shall be submitted and processed in the same manner as Conditional Use Permits, as provided in this Title. 2. In passing upon such applications for exceptions, the planning commission shall consider all technical evaluations, all relevant factors, standards specified in other sections of this chapter and the: a. Danger that materials may be swept onto other lands to the injury of others; b. Danger to life and property due to flooding or erosion damage; c. Susceptibility of the proposed facility and its contents to flood damage and the effect of such damage on the individual owner and future property owners; d. Importance of the services provided by the proposed facility to the community; e. Necessity to the facility of a waterfront location where applicable; f. Availability of alternative locations for the proposed use which are not subject to flooding or erosion damage; g. Compatibility of the proposed use with existing and anticipated development; h_ Relationship of the proposed use to the comprehensive plan and floodplain management program for that area; i. Safety of access to the property in times of flood for ordinary and emergency vehicles; j. Expected heights, velocity, duration, rate of rise, and sediment transport of the floodwaters expected at the site; and k. Costs of providing governmental services during and after flood conditions, including maintenance and repair of public utilities and facilities such as sewer, gas, electrical and water systems, and streets and bridges. 3. Any applicant to whom an exception is granted shall be given written notice over the signature of a community official that: a. The issuance of an exception to construct a structure below the base flood level will result in increased premium rates for flood insurance: and b. Such construction below the base flood level increases risks to life and property. c. A copy of the notice shall be recorded by the floodplain administrator in the office of the San Diego County Recorder and shall be recorded in a manner so that it appears in the chain of title of the affected parcel of land. 4. The floodplain administrator will maintain a record of all exception actions, including justification for their issuance, and report such exceptions issued in its biennial report submitted to the Federal Insurance Administration, Federal Emergency Management Agency. 29 Z - CONDITIONS FOR EXCEPTIONS. 1. Generally, exceptions may be issued for new construction and substantial improvements and other proposed development to be erected on a lot of one-half acre or less in size contiguous to and surrounded by lots with existing structures constructed below the base flood level, providing items in subsections N_18-.-30.140 through U 18-30.2-10, inclusive, of this chapter have been fully considered. As the lot size increases beyond one-half acre, the technical justification required for issuing the exception increases. 2. Exceptions may be issued for the repair or rehabilitation of "historic structures" (as defined in subsection E 18 050 of this chapter) upon a determination that the proposed repair or rehabilitation will not preclude the structure's continued designation as a historic structure and the exception is the minimum necessary to preserve the historic character and design of the structure. 3_ Exceptions shall not be issued within any mapped regulatory floodway if any increase in flood levels during the base flood discharge would result. 4. Exceptions shall only be issued upon a determination that the exception is the "minimum necessary," considering the flood hazard, to afford relief. "Minimum necessary" means to afford relief with a minimum of deviation from the requirements of this chapter. For example, in the case of exceptions to an elevation requirement, this means the planning commission need not grant permission for the applicant to build at grade, or even to whatever elevation the applicant proposes, but only to that elevation which the planning commission believes will both provide relief and preserve the integrity of this chapter. 5. Exceptions shall only be issued upon: a. A showing of good and sufficient cause; b. A determination that failure to grant the exception would result in exceptional hardship to the applicant; and c. A determination that the granting of an exception will not result in increased flood heights, additional threats to public safety, extraordinary public expense, create nuisances, cause fraud on or victimization of the public as identified in subsection E 18 30.050 of this chapter, or conflict with existing local laws or ordinances. 6. Exceptions may be issued for new construction, substantial improvement, and other proposed development necessary for the conduct of a functionally dependent use provided that the provisions of subsection Z 1-5 48.302-60A through E are satisfied and that the structure or other development is protected by methods that minimize flood damages during the base flood and does not result in additional threats to public safety and does not create a public nuisance. 7. Upon consideration of the factors of subsection Y 18.30.250 and the purposes of this chapter, the planning commission may attach such conditions to the granting of exceptions as it deems necessary to further the purposes of this chapter. AA - FEES. 1. A nonrefundable fee as established in the fee schedule adopted by the city shall be paid to the city at the time of filing an application for a development permit pursuant to subsection T 18.30.2-00. 30 2. A nonrefundable fee as established in the fee schedule adopted by the city shall be p� id to the city at the time of filing an appeal pursuant to subsection X18.30.240. 3. A nonrefundable fee as established in the fee schedule adopted by the city shall be paid to the city at the time of filing for an exception pursuant to subsection Y 31 STALE Of CALIFORNIA -- CALIFORNIA NATURAL RESOURCES AGENCY EDMUND G. BROWN JR_, Governcr DEPARTMENT OF WATER RESOURCES SOUTHERN REGION OFFICE i/O FAIRMONT AVENUE, SUIIE 102 GLENDAI E, CA 91203 1035 lonorable Ron Morrison Mayor of the City of National City 1243 National City Boulevard National City, California 91950 Dear Mayor Morrison: OCT 0 3 2011 Thank you for the cooperation and courtesy extended to Salomon Miranda of @ staff during our Community Assistance Visit in your community on Wednesday, Jul 20, 2011.-1 We hope the meeting was as useful and informative for your cornmunity's floodplain management staff as it was for us. The purpose of the CAV is to provide information and assistance about the National Flood Insurance Program. On behalf of the Federal Emergency Management Agency, I commend your staff for their conscientious efforts in implementing the NFIP. Continued enforcement of the NFIP regulations will ensure your community's good standing in the NFIP and guarantee availability of flood insurance coverage for residences that are in flood hazard areas. A copy of your Community Visit Report is enclosed for your review and action. Our CAV revealed that the City's floodplain regulations needed to be updated to bring your community's floodplain management program into compliance with NFIP requirements. After the CAV meeting, City staff drafted a new ordinance that meets the NFIP regulations. With its adoption, the community will be in full compliance with the minimum National Flood Insurance Program requirements as specified in title 44, Code of Federal Regulations, Sections 59, 60.3 through 60.6. Please submit to this office two certified copies of the approved ordinance for our records. On behalf of FEMA, i commend your staff for their excellent work in preparing the ordinance. This concludes DWR's role in this Comrnunity Assistance Visit with your community. If you have any questions concerning this letter or any aspect of the NFIP, please contact Mr. Salomon Miranda of my staff at (818) 500-1645 extension 245 or at Salomon@water.ca.gov. [can he reached at (818) 500-1645 extension 222 Sincerely, ORIGINAL SIGNED SY: Mark Stuart Mark Stuart, Chief Southern Region Enclosure 32 Honorable Ron Morrison Page 2 cc + enclosures: Ms. Maryam Babaki, Director of Development Services/City Engineer City of National City 1243 National City Boulevard National City, California 91950 bcc (email): Mr. Charles Nissley, Senior Engineer Tech City of National City 1243 National City Boulevard National City, California 91950 Ms. Barby Tipton, Management Analyst City of National City 1243 National City Boulevard National City, California 91950 Mr. Robert Durrin, Planner Federal Emergency Management Agency Region IX robert durrin(@dhs.gov Ms_ Cynthia McKenzie, Senior Planner Federal Emergency Management Agency Region IX ynthia.mckenziedhs.gov Mr. William Horn CA Department of Water Resources Floodplain Assistance Section Division of Hood Management billh@water.ca.yov 33 FEDERAL EMERGENCY MANAGEMENT AGENCY COMMUNITY VISIT REPORT SECTION 1. NAME OF COMMUNITY National City 2 STATE California 3. COMMUNITY ID NUMBER 060293 4 COUNTY San Diego 5 VISIT CONDUCTED BY Salomon Miranda 6. AGENCY California Department of Water Resources Z DATE OF VISIT July 20, 2011 SECTION II 8. NAME OF LOCAL OFFICIAL Maryann Babaki, City Engineer 9. f ELEPHONE NUMBER (619) 336-4383 10 ADDRESS OF LOCAL OFFICIAL 1243 National City Boulevard. National City, California 91950 SECTION III -FINDINGS PART A QUESTIONS - Select appropriate response Serious RESPONSE Minor None 1_ Are there problems with the community's floodplain management regulations"? X 2 Are there problems with the community's administrative/enforcement procedures? X X 3 Are there any engineering or other problems with the reaps or Flood Insurance Study? 4 Are there any other problems in the community's floodplain management program X 5. Are there problems with the Biennial Report data? YES X NO 6. Are there any programmatic issues or problems identified? YES X NO identified 7. Are there any potential violations _ _ A potential violation or X No violations have been of the community's floodplain management regulations? violations has/have been identified identified. on the part of the community to remedy the violation(s) X YES NO during the CAV. X Actions are being taken OTHER COMMENTS AND INFORMATION Page 1 of 6 34 NATIONAL FLOOD INSURANCE PROGRAM COMMUNITY ASSISTANCE VISIT National City, California July 20, 2011 SECTION III — FINDINGS (Continued) PART B — NARRATIVE The National Flood Insurance Program (NFIP) is based on an agreement between the federal government and participating communities that have been identified as flood prone The Federal Emergency Management Agency (FEMA), through the Federal Insurance Administration, makes flood insurance available to the residents of a participating community, provided the community adopts and enforces adequate floodplain management regulations that meet the minimum NFIP requirements. Currently, about 19,000 of the nation's 22,000 cities, towns, counties, and boroughs are members of the NFIP. A Community Assistance Visit (CAV) is a scheduled visit to a NFIP community for the purpose of maintaining periodic contact with the community to evaluate the effectiveness of local floodplain management practices and to offer assistance, if needed This report describes the findings of the July 20, 2011, CAV for the community of National City and recommends corrective actions where deficiencies were identified. The recommendations, when implemented, will enable your community to comply with the NFIP requirements as specified in Title 44, Code of Federal Regulations. BACKGROUND The City of National City is located in the southwest part of San Diego County. National City was originally part of the 2.6,000-acre El Rancho de la Nacion, which was purchased in 1868 by Frank Kimball and his brothers. Incorporated in 1887, National City has an area of approximately 9 square miles and has approximately 58,000 residents. National City enjoys a pleasant Mediterranean climate during the summers and cool wet weather during the winter months. The average temperature is 55 degrees Fahrenheit in January and 85 degrees in August. The mean annual precipitation is approximately 10 inches. Page 2 of 6 35 The major flood sources in National City are the Sweetwater River and Paradise Creek, which have a drainage area of approximately 219 square miles and 5 square miles, respectively. The FEMA's 1988 Flood Insurance Study for National City indicates that large floods occurred in the Sweetwater River drainage area in 1825, 1862, 1884, 1916, 1927, and 1937. In addition to the Sweetwater River and Paradise creek flood threats, National City is exposed to run-off from small tributaries that cause ponding in low-lying areas of the City. National City joined the NFIP on February 15, 1979. According to its Flood Insurance Rate Maps, effective June 19, 1997, the City has AE (with floodways), A, AH, and AO (1' and 3') flood designation zones. There are 120 flood insurance policies in force in National City that carry a total value of $36.9 million in coverage. Since joining the NFIP, the amount of $66,591 has been paid towards 13 reported losses in the community. The Department of Water Resources (DWR) staff performed the previous CAV on August 24, 2006, and asked for the City to: 1) update its floodplain management ordinance in order to meet the minimum NFIP requirements, 2) provide finish floor documentation for 5 structures identified during the floodplain field inspection as potential violations, and 3) submit to FEMA the 2005 Biennial Report_ In a transmittal dated December 10, 2007, the City submitted to DWR the lowest floor elevation documentation for the 5 structures, as previously requested. After reviewing this documentation, we concluded that the structures were built in compliance with the NFIP regulations. In addition, the City filed the 2005 Biennial Report with FEMA and drafted a new floodplain management ordinance which met the minimum NFIP requirements. However, the draft ordinance was not submitted to City Council for its adoption. In this CAV, DWR staff has concluded that the community needs to again update its floodplain management ordinance as identified herein. SUPPORT COMMENTS FOR SECTION III — PART A 1. Community's Floodplain Management Regulations The Floodplain Management Ordinance (No. 2010-2362) is found in Chapter 18.30 of the National City Municipal Code. After the recent CAV meeting, DWR staff reviewed the regulations and determined there is a need for an update to meet the minimum NFIP requirements pursuant to the Title 44, Code of Federal Regulations, Sections 59, 60.3-60.6, and 65.3 (CFR). To assist the City in drafting amended floodplain management regulations, DWR staff provided an electronic copy of the current California Model Floodplain Management Ordinance. dated April 2006, to the City's staff for its reference. Page 3 of 6 36 DWR staff recommends the following updates to the community's floodplain management regulations: • Under Section 18.30.220 Insert requirements to submit new technical data to FEMA within six months of changes in the base flood elevation, pursuant to CFR Section 65.3 (Model Ordinance Section 4.2.D.2-3). 2. Community's AdministrationlEnforcement Procedures The City Engineer is designated as the Floodplain Administrator pursuant to City's Municipal Code, Section 18.30.210. The City's Development Services Department reviews all building permit applications_ The Engineering Division and the Development Services Department identify if a proposed development lies within a Special Flood Hazard Area (SFHA) and ensures compliance with the City's floodplain management regulations. Building and Safety Division is in charge of inspecting all new construction and responding to all residential Code enforcement issues. On June 21, 2011, the City adopted new floodplain management regulations that exceed the minimum standards for developing in the floodplain by adding to the lowest floor elevation one foot of free -board above the Base Flood Elevation (BFE). According to City's Municipal Code, Section 18.30.140, the as -built lowest floor elevation in the SFHA is required to be at least one foot above the BFE for all new residential and non-residential structures and for all substantial improvements. Non- residential structures can also be flood -proofed one foot above the BFE as long as a certification by a registered professional engineer or architect is obtained to demonstrate that the structure is watertight with walls substantially impermeable to water. For AO Zones, the lowest floor elevation is required to be one foot above the PFE or elevated at least three feet above the highest adjacent grade if no depth is specified. All building permits are kept in the City's Development Services Department and Building and Safety Division. 3. Engineering or Other Problems with the Maps or Flood Insurance Study None 4. Other Problems in the Community's Floodplain Management Program None Page 4 of 6 37 5. Problems with the Biennial Report Data None 6. Programmatic Issues or Problems Identified None 7. Potential Violations Identified or Suspected of the Community's Floodplain Management Regulations During the floodplain field inspection, 2 potential violations were identified: Address: 1540 Plaza Blvd. and 1100 Highland Avenue Suspected Violation: New commercial construction in Zone AO-1' Action Taken: City staff submitted copies of the certified grading plans for both structures, which reflect that the lowest floor elevations are above the graded pad. In addition, proper drainage control was taken into consideration; the pads were filled and compacted to allow surface water to flow away from the perimeter of the structures and drain into the street or into on -site drainage structures without intermediate ponding. OTHER COMMENTS AND INFORMATION a) Flood Mitigation Projects, Issues, or Concerns None b) Executive Order 11988 Floodplain Management None c) Community Action Needed On September 22, 2011, we received from the community a draft ordinance that amends the City's current floodplain regulations, as specified in Section III, Part A.1 of this Report. Our review indicates that the draft ordinance meets the NFIP regulations and after its adoption the community will be in full compliance with the minimum National Flood Insurance Program requirements as specified in Title 44, Code of Federal Regulations, Sections 59, 60.3 through 60.6. Please submit to DWR two certified copies of the approved ordinance for our records. Page 5 of 6 38 d) DWR Follow-up Needed File ordinance. e.) Other Comments After the CAV meeting, DWR staff provided the City with the following information: 1) Substantial Improvement and Substantial Damage (SI/SD) Desk Reference 2) SI/SD cumulative language information 3) Community Rating System information 4) Flood Insurance information f) Field Inspection Attendee List Salomon Miranda, DWR staff, conducted the field inspection prior to the CAV meeting. g) CAV Meeting Attendee List • Maryam Babaki, City Engineer, City of National City • Charles Nissley, Sr. Engineering Tech, City of National City • Barby Tipton, Management Analyst, City of National City • Salomon Miranda, WR engineer, DWR Date CAV Closed SECTION IV COMPLETED BY THE FEMA REGIONAL OFFICE Initials Salomon Miranda, California Department of Water Resources, Southern Region Page 6 of 6 39 } CAL'IFORN►A INCORPOILAr L) CITY OF NATIONAL CITY - DEVELOPMENT SERVICES DEPARTMENT 1243 NATIONAL CITY BLVD_, NATIONAL CITY, CA 91950 NOTICE OF PUBLIC HEARING AN AMENDMENT TO TITLE 18 (ZONING) CHAPTER 18.29 OF THE NATIONAL CITY MUNICIPAL CODE PERTAINING TO OVERLAY ZONES CASE FILE NO: 2011-25 A The National City Planning Commission will hold a public hearing after the hour of 6:00 p.m. Monday, October 17, 2011, in the City Council Chambers, 1243 National City Blvd., National City, California on a proposed Amendment to the Municipal Code, Chapter 18.29 — Overlay Zones. The general purpose of this amendment is to add language to the Land Use Code required by the Federal Emergency Management Agency (FEMA) in order for citizens to continue to be able to obtain flood insurance in the City of National City. Members of the public are invited to comment. Any person interested in this matter may appear at the above time and place and be heard. Written comments should be received by the Planning Division on or before 12 p.m., October 17, 2011. Planning Division staff may be contacted at 619-336-4310 or planninqOnationalcityca.gov. If you challenge the nature of the proposed action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the public hearing entity conducting the hearing at, or prior to, the public hearing. DEVELOPMENT SERVICES DEPARTMENT MARYAM BABAKI Director of Development Services 40 RESOLUTION NO. 26-2011 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NATIONAL CITY, CALIFORNIA, RECOMMENDING APPROVAL OF AN AMENDMENT TO TITLE 18 (ZONING) CHAPTER 18.29 OF THE NATIONAL CITY MUNICIPAL CODE PERTAINING TO OVERLAY ZONES. APPLICANT: CITY OF NATIONAL CITY. CASE FILE NO. 2011-25 A WHEREAS, pursuant to the terms and provisions of the Government Code of the State of California, proceedings were duly initiated for the amendment of the National City Municipal Code, Chapter 18.29; and, WHEREAS, the Planning Commission of the City of National City, California, considered said proposed amendment at a duly advertised public hearing held on October 17, 2011, at which time the Planning Commission considered evidence; and, WHEREAS, at said public hearing the Planning Commission considered the staff report provided for Case File No. 2011-25 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, WHEREAS, this action is taken in an effort to be compliant with applicable State and Federal law; and, WHEREAS, the action hereby taken is found to be essential for the preservation of the public health, safety and general welfare. NOW, THEREFORE, BE IT RESOLVED by the City Planning Commission of the City of National City, California, that the evidence presented to the Planning Commission at the public hearing held on October 17, 2011, support the following findings: RECOMMENDED FINDINGS FOR APPROVAL OF AN AMENDMENT TO TITLE 18 (ZONING) CHAPTER 18.29 OF THE NATIONAL CITY MUNICIPAL CODE PERTAINING TO OVERLAY ZONES 1. That the proposed amendment is in the public interest and is consistent with General Plan policy, as the General Plan calls for the adoption of regulations that limit the risk of loss to reasonable levels within mapped floodplain hazard areas or areas subject to potential inundation by levee failure, or as the result of a tsunami. 41 2 That the proposed amendment will allow the City's continued enforcement of National Flood Insurance Program (NFIP) regulations, ensuring National City's good standing and guaranteed availability of flood insurance coverage for residences that are in flood hazard areas. BE IT FURTHER RESOLVED that based on the findings herein before stated, the Planning Commission hereby recommends approval of said proposed amendment for Council consideration and approval thereafter. BE IT FURTHER RESOLVED that copies of this Resolution be transmitted forthwith to the applicant and to the City Council_ CERTIFICATION This certifies that the Resolution was adopted by the Planning Commission at their meeting of October 17, 2011, by the to!lowing vote: AYES: NAYS: ABSENT: ABSTAIN: Flores, Reynolds, Pruitt, Baca, Farias Alvarado, Delapaz Ct9AIAIV 4 2 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: November 1, 2011 EM TITLE: Public Hearing — Street Vacation vacating a portion of D Avenue south of 31st Street, and a portion of 32nd Street east of D Avenue to allow construction of the 165,000 square -foot Gateway project. (Applicant: Sudberry Properties, Inc.) (Case File No. 2008-37 SC). AGENDA ITEM NO. 9 PREPARED BY: Martin Reeder PHONE: 619-336-4313 DEPARTMENT: Deve APPROVED BY: vcs/Planning. EXPLANATION: The City Council initiated the vacation request on September 20, 2011 to vacate the easterly half of D Avenue south of East 32nd Street, and the unimproved portion of East 32nd Street east of D Avenue. The Planning Commission determined that the vacation is consistent with the General Plan on October 17, 2011. The attached Background Report describes the proposed vacation in more detail. This Street Vacation is associated with a Conditional Use Permit, Minor Use Permit, and Zone Variance for the 165,000 square -foot Gateway project. Pursuant to the City's Street Vacation Procedures adopted in 2006, public hearings for street vacations need to be noticed in the newspaper and on site for a minimum of two consecutive weeks prior to the hearing. Due to the expedited timeline of this project, the deadline to post on site was missed; therefore, the posting was not adequate and no action should be taken at this time. It was deemed appropriate to leave this item on the agenda due to the item having been noticed in the San Diego on Tribune, thus affording interested parties the opportunity to comment. However, the item should be tinued in order for appropriate posting and re -noticing to occur. FINANCIAL STATEMENT: ACCOUNT NO. ENVIRONMENTAL REVIEW: Mitigated Negative Declaration (2008-37 IS). ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: 1 Finance MIS STAFF RECOMMENDATION: Staff recommends continuance of the public hearing to November 15, 2011. BOARD / COMMISSION RECOMMENDATION: The Planning Commission determined the Street Vacation request complies with the General Plan. Vote: Ayes — Farias, Baca, Pruitt, Reynolds, Flores Absent: Alvarado, DeLaPaz. ATTACHMENTS: Background Report Recommended Finding 3. Location Map BACKGROUND REPORT The streets to be vacated are D Avenue south of East 315' Street and approximately four blocks of East 32nd Street, which in this area is not improved (paper street). Half of the street area to be vacated is in the City, while the other half is in Chula Vista; the City boundary runs down the centerline of D Avenue. Specifically, the area to be vacated is 750 feet of the easterly half (40 feet) of D Avenue and a 560-foot section of 32nd Street east of the D Avenue centerline. Conversely, the applicant is requesting vacation of the westerly 40 feet of D Avenue and part of 32nd Street west of D Avenue, both in Chula Vista. General Plan Conformance D Avenue in this location is not considered either an arterial or collector street. The street dead -ends at SR-54 and is used as primary access to the swap meet property. There is also secondary access to the drive-in site. Seeing as both of these uses are proposed to be replaced by this project, and all three properties are owned by the project proponents, it can be seen that the roads will serve no future need should the project be approved. Furthermore, the City has no plans to connect D Avenue to its counterpart in Chula Vista, which would entail either a tunnel under or bridge over SR- 54. As mentioned previously, 32nd Street in this location is a paper street and does not exist. The `street' is a dirt area north of the drive-in property (west of D Avenue) and part of the swap meet parking lot (east of D Avenue). Additionally, 32nd Street does not extend beyond this area, with the exception of a small portion in the Lincoln Acres area and also an area west of Interstate 5 on Port of San Diego property. Therefore, the paper street to be vacated serves no future need or use. Adopted in January 2006, the City's Street Vacation Procedures require the City Council to initiate a request to vacate any public streets. The Council initiated the street vacation request on September 20, 2011. Pursuant to the Streets and Highways Code, Section 8313 and the Street Vacation Procedures, the Planning Commission must determine v. hether a proposed vacation is in conformance with the General Plan and forward the recommendation to the City Council. The Commission found the vacation in conformance with the General Plan at their meeting of October 17, 2011. Summary Seeing as neither D Avenue nor 32nd Street in this area are identified as being in current or future need in the Circulation Element, the proposed street vacations would be consistent with the policies and goals of the General Plan. Furthermore, the vacation will facilitate the project under review, which will contribute to the overall economic health of the City. i RECOMMENDED FINDING FOR APPROVAL OF THE STREET VACATION 2008-37 IS, SV, LS, CUP — Gateway That neither D Avenue nor 32"d Street in the project area are identified as being in current or future need in the Circulation Element, the proposed street vacations would be consistent with the policies and goals of the General Plan and since the vacation will facilitate the project under review, which will contribute to overall economic health of the City. CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: November 1, 2011 AGENDA ITEM NO. 10 iM TITLE: An Ordinance of the City Council of the City of National City Amending Title 18 (Zoning) of the National City Municipal Code by Amending Section 18.29.070 Pertaining to the Floodway Overlay Zones. (Applicant City - Initiated) (Case File 2011-25 A) 'Vt7 PREPARED BY: Martin Reeder DEPARTMENT: Devel.. cs/Planning. PHONE: 336-4313 APPROVED BY: EXPLANATION: The City Council held a public hearing on proposed changes to amend Chapter 18.29 of the Municipal Code on November 1, 2011 and voted to approve the Amendment regarding "Overlay Zones". The attached ordinance will fulfill that action. FINANCIAL STATEMENT: ACCOUNT NO. ENVIRONMENTAL REVIEW: Not a project under CEQA (no physical change) ORDINANCE: INTRODUCTION: x FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Introduce the Ordinance BOARD / COMMISSION RECOMMENDATION: The Planning Commission approved the Conditional Use Permit. Ayes: Baca, Farias, Flores, Pruitt, ReynoldsAbsent:, Alvarado, DeLaPaz ATTACHMENTS: finance ORDINANCE NO. 2011 — AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AMENDING TITLE 18 (ZONING) OF THE NATIONAL CITY MUNICIPAL CODE BY AMENDING SECTION 18.29.070 PERTAINING TO OVERLAY ZONES BE IT ORDAINED that the City Council hereby amends Chapter 18.29 of the National City Municipal Code by amending, Section 18.29.070 to read as follows: 18.29.070 Floodway (-FW), floodway fringe (-FF-1), and floodway fringe shallow flooding (-FF-2) zones. A. Statement of Purpose. It is the purpose of this chapter to promote the public health, safety and general welfare, and to minimize public and private losses due to flood conditions in specific areas by provisions designed to: 1. Protect human life and health; 2. Minimize expenditure of public money for costly flood control projects; 3. Minimize the need for rescue and relief efforts associated with flooding and generally undertaken at the expense of the general public; 4. Minimize prolonged business interruptions; 5. Minimize damage to public facilities and utilities such as water and gas mains, electric, telephone and sewer lines, streets and bridges located in areas of special flood hazard; 6. Help maintain a stable tax base by providing for the second use and development of areas of special flood hazard so as to minimize future flood blight areas; 7. Ensure that potential buyers are notified that property is in an area of special flood hazard; and 8. Ensure that those who occupy the areas of special flood hazard assume responsibility for their actions. B. Methods of Reducing Flood Losses. In order to accomplish its purposes, this chapter includes methods and provisions to: 1. Restrict or prohibit uses which are dangerous to health, safety and property due to water or erosion hazards, or which result in damaging increases in erosion or flood heights or velocities; 2. Require that uses vulnerable to floods, including facilities which serve such uses, be protected against flood damage at the time of initial construction; 3. Control the alteration of natural floodplains, stream channels and natural protective barriers, which help accommodate or channel floodwaters; 4. Control filling, grading, dredging, and other development which may increase flood damage; and 5. Prevent or regulate the construction of flood barriers which will unnaturally divert floodwaters or which may increase flood hazards in other areas. C. Warning and Disclaimer of Liability. The degree of flood protection required by this chapter is considered reasonable for regulatory purposes and is based on scientific and engineering considerations. Larger floods can and will occur on rare occasions. Flood heights may be increased by man-made or natural causes. This chapter does not imply that land outside the areas of special flood hazards or uses permitted within such areas will be free from flooding or flood damages. This chapter shall not create liability on the part of the city, any officer or employee thereof, the state of California or the Federal Insurance Administration, Federal Emergency Management Agency for any flood damages that result from reliance on this chapter or any administrative decision lawfully made thereunder. D. Abrogation and Greater Restrictions. This chapter is not intended to repeal, abrogate or impair any existing easements, covenants or deed restrictions. However, where this chapter and another chapter, easement, covenant or deed restrictions conflict or overlap, whichever imposes the more stringent restriction shall prevail. E Definitions. Unless specifically defined below, or in this Title, words or phrases used in this chapter shall be interpreted so as to give them the meaning they have in common usage and to give this chapter its most reasonable application. 1. "Accessory use" means a use which is incidental and subordinate to the principal use of the parcel of land on which it is located. 2. "Adversely affects" means, for purposes of this chapter, that the cumulative effect of the proposed development when combined with all other existing and anticipated development will increase the water surface elevation of the base flood more than one foot at any point. 3. "Alluvial fan" means a geomorphologic feature characterized by a cone- or fan -shaped deposit of boulders, gravel, and fine sediments that have been eroded from slopes, transported by flood flows, and then deposited on the valley floor, and which is subject to flash flooding, high velocity flows, debris flows, erosion, sediment movement and deposition, and channel migration. 4. "Apex" means the point of highest elevation on an alluvial fan, which on undisturbed fans is generally the point where the major stream that formed the fan emerges from the slope. 5. "Appeal" means a request for a review of the floodplain administrator's interpretation of any provision of this chapter. 6. "Area of shallow flooding" means a designated AO or AH zone on the Flood Insurance Rate Map (FIRM). The base flood depths range from one to three feet; a clearly defined channel does not exist; the path of flooding is unpredictable and indeterminate; and, velocity flow may be evident. Such flooding is characterized by ponding or sheet flow. 7. "Area of special flood hazard" — see "Special flood hazard area." 8. "Base flood" means a flood which has a one percent chance of being equaled or exceeded in any given year (also called the "one hundred year flood"). Base flood is the term used throughout this chapter. 9. "Basement" means any area of the building having its floor subgrade — i.e., below ground level —on all sides. 10. "Building" — see "structure." 11. "Development" means any man-made change to improved or unimproved real estate, including but not limited to buildings or other structures, mining, dredging, filling, grading, paving, excavation or drilling operations, or storage of equipment or materials. 12. "Encroachment" means the advance or infringement of uses, plant growth, fill, excavation, buildings, permanent structures or development into a floodplain which may impede or alter the flow capacity of a floodplain. 13. "Exception" means a grant of relief from the requirements of this chapter which permits construction in a manner that would otherwise be prohibited by this chapter. 14. "Existing manufactured home/mobile home park or subdivision" means a manufactured home park or subdivision for which the construction of facilities for servicing the lots on which the manufactured homes/mobile homes are to be affixed (including, at a 2 Ordinance No. 2011- Amending Section 18.29.070 Overlay Zones minimum, the installation of utilities, the construction of streets, and either final site grading or the pouring of concrete pads) is completed before the effective date of this chapter. 15. "Expansion to an existing manufactured home/mobile home park or subdivision" means the preparation of additional sites by the construction of facilities for servicing the lots on which the manufactured homes/mobile homes are to be affixed 1',ncluding the installation of utilities, the construction of streets, and either final site grading or pouring of concrete pads) 16. "Flood, flooding or floodwater" means a general and temporary condition of partial or complete inundation of normally dry land areas from the overflow of inland or tidal waters, and/or the unusual and rapid accumulation or runoff of surface waters from any source. 17. "Flood Boundary and Floodway Map (FBFM)" means the official map on which the Federal Emergency Management Agency or Federal Insurance Administration has delineated both the areas of special flood hazards and the floodway. 18. "Flood Hazard Boundary Map" means the official map on which the Federal Emergency Management Agency or Federal Insurance Administration has delineated the areas of flood hazards. 19. "Flood Insurance Rate Map (FIRM)" means the official map on which the Federal Emergency Management Agency or the Federal Insurance Administration has delineated both the areas of special flood hazards and the risk premium zones applicable to the community. 20. "Flood Insurance Study" means the official report provided by the Federal Insurance Administration that includes flood profiles, the Flood Insurance Rate Map, the Flood Boundary and Floodway Map, and the water surface elevation of the base flood. 21. "Floodplain or flood -prone area" means any land area susceptible to being inundated by water from any source —see "Flooding." 22. "Floodplain administrator" means the individual appointed to administer and enforce the floodplain management regulations. This individual shall be the city engineer of the city. 23. "Floodplain management" means the operation of an overall program of corrective and preventive measures for reducing flood damage and preserving and enhancing, where possible, natural resources in the floodplain, including but not limited to emergency preparedness plans, flood control works, floodplain management regulations, and open space plans. 24. "Floodplain management regulations" means this chapter and other zoning ordinances, subdivision regulations, building codes, health regulations, special purpose ordinances (such as grading and erosion control) and other applications of police power which control development in flood -prone areas. The term describes federal, state or local regulations in any combination thereof which provide standards for preventing and reducing flood loss and damage. 25. "Floodproofing" means any combination of structural and nonstructural additions, changes or adjustments to structures which reduce or eliminate flood damage to real estate or improved real property, water and sanitary facilities, structures and their contents. 26. "Floodway" means the channel of a river or other watercourse and the adjacent land areas that must be reserved in order to discharge the base flood without cumulatively increasing the water surface elevation more than one foot. Also referred to as "regulatory floodway." 27. "Floodway encroachment lines" means the lines marking the limits of floodways on federal, state and local floodplain maps. 3 Ordinance No. 2011- Amending Section 18.29.070 Overlay Zones 28. "Floodway fringe" means that area of the floodplain on either side of the "regulatory floodway" where encroachment may be permitted. 29. "Fraud and victimization," as related to subsection Z (Conditions for exceptions) of this chapter, means that the exception granted must not cause fraud on or victimization of the public. In examining this requirement, the planning commission will consider the fact that every newly constructed building adds to government responsibilities and remains a part of the community for fifty to one hundred years. Buildings that are permitted to be constructed below the base flood elevation are subject, during all those years, to increased risk of damage from floods, while future owners of the property and the community as a whole are subject to all the costs, inconvenience, danger, and suffering that those increased flood damages bring. In addition, future owners may purchase the property, unaware that it is subject to potential flood damage, and can be insured only at very high flood insurance rates. 30. "Functionally dependent use" means a use which cannot perform its intended purpose unless it is located or carried out in close proximity to water. The term includes only docking facilities, port facilities that are necessary for the loading and unloading of cargo or passengers, and ship building and ship repair facilities, and does not include long-term storage or related manufacturing facilities. 31. "Habitable floor" means any floor usable for living purposes, which includes working, sleeping, eating, cooking or recreation, or a combination thereof. A floor used only for storage purposes is not a "habitable floor." 32. "Hardship," as related to subsection Z (Conditions for exceptions) of this chapter, means the unusual hardship that would result from a failure to grant the requested exception. The planning commission requires that the exception be unusual and peculiar to the property involved. Mere economic or financial hardship alone is not exceptional. Inconvenience, aesthetic considerations, physical handicaps, personal preferences, or the disapproval of one's neighbors likewise cannot, as a rule, qualify as an exceptional hardship. All of these problems can be resolved through other means without granting an exception, even if the alternative is more expensive, or requires the property owner to build elsewhere or put the parcel to a different use than originally intended. 33. "Highest adjacent grade" means the highest natural elevation of the ground surface prior to construction next to the proposed walls of a structure. 34. "Historic structure" means any structure that is: a. Listed individually in the National Register of Historic Places (a listing maintained by the Department of Interior) or preliminarily determined by the Secretary of the Interior as meeting the requirements for individual listing on the National Register; b. Certified or preliminarily determined by the Secretary of the Interior as contributing to the historical significance of a registered historic district or a district preliminarily determined by the Secretary to qualify as a registered historic district; c. Individually listed on a state inventory of historic places in states with historic preservation programs which have been approved by the Secretary of Interior; or d. Individually listed on a local inventory of historic places in communities with historic preservation programs that have been certified either by an approved state program as determined by the Secretary of the Interior or directly by the Secretary of the Interior in states with approved programs. 35. "Levee" means a man-made structure, usually an earthen embankment, designed and constructed in accordance with sound engineering practices to contain, control or divert the flow of water so as to provide protection from temporary flooding. 4 Ordinance No. 2011- Amending Section 18.29.070 Overlay Zones 36. "Levee system" means a flood protection system which consists of a levee, or levees, and associated structures, such as closure and drainage devices, which are constructed and operated in accord with sound engineering practices. 37. "Lowest floor" means the lowest floor of the lowest enclosed area, including basement. An unfinished or flood resistant enclosure, usable solely for parking of vehicles, building access or storage in an area other than a basement area (see "Basement") is not considered a building's lowest floor, provided that such enclosure is not built so as to render the structure in violation of the applicable nonelevation design requirements of this title. (Note: This definition allows attached garages to be built at grade. Below grade garages are not allowed as they are considered to be basements) 38. "Manufactured home" or "mobile home" means a structure, transportable in one or more sections, which is built on a permanent chassis and is designed for use with or without a permanent foundation when connected to the required utilities. The term "manufactured home" does not include "recreational vehicles" or "travel trailers." 39. "Manufactured home/mobile home park or subdivision" means a parcel (or contiguous parcels) of land divided into two or more manufactured home lots for sale or rent. 40. "Mean sea level" means, for purposes of the National Flood Insurance Program, the National Geodetic Vertical Datum (NGVD) of 1929 or other datum, to which base flood elevations shown on a community's Flood Insurance Rate Map are referenced. 41. "New construction" for floodplain management purposes means structures for which the "start of construction" commenced on or after the effective date of floodplain management practices adopted by this community, and includes any subsequent improvements to such structures. 42. "New manufactured home/mobile home park or subdivision" means a manufactured home/mobile home park or subdivision for which the construction of facilities for servicing the lots on which the manufactured homes/mobile homes are to be affixed (including, at a minimum, the installation of utilities, the construction of streets, and either final site grading or the pouring of concrete pads) is completed on or after the effective date of the ordinance codified in this chapter. 43. "Obstruction" means and includes, but is not limited to, any dam, wall, wharf, embankment, levee, dike, pile, abutment, protection, excavation, channelization, bridge, conduit, culvert, building, wire, fence, rock, gravel, refuse, fill, structure, vegetation or other material in, or along, across or projecting into any watercourse which may alter, impede, retard or change the direction and/or velocity of the flow of water, or due to its location, its propensity to snare or collect debris carried by the flow of water, or its likelihood of being carried downstream. 44. "One hundred year flood" — see "Base flood." 45. "Principal structure" means a structure used for the principal use of the property as distinguished from an accessory use. 46. "Public safety and nuisance," as related to subsection Z (Conditions for exceptions) of this chapter, means that the granting of an exception must not result in anything which is injurious to the safety or health of an entire community or neighborhood, or any considerable number of persons, or unlawfully obstructs the free passage or use, in the customary manner, of any navigable lake, or river, bay, stream, canal or basin. 47. "Recreational vehicle" means a vehicle which is: a. Built on a single chassis; b. Four hundred square feet or less when measured at the largest horizontal projection; c. Designed to be self-propelled or permanently towable by a Tight -duty truck; and Ordinance No. 2011- Amending Section 18.29.070 Overlay Zones 5 d. Designed primarily not for use as a permanent dwelling but as temporary living quarters for recreational, camping, travel, or seasonal use. 48. "Regulatory floodway" means the channel of a river or other watercourse and the adjacent land areas that must be reserved in order to discharge the base flood without cumulatively increasing the water surface elevation more than one foot. 49. "Riverine" means relating to, formed by, or resembling a river (including tributaries), stream, brook, etc. 50. "Sheet flow" —see "Area of shallow flooding." 51. "Special flood hazard area (SFHA)" means an area having special flood or flood -related erosion hazards, and shown on a FBHM or FIRM as Zone A, AO, Al— A30, AE, A99 and AH. 52. "Start of construction" means and includes substantial improvement and other proposed new development, and means the date the building permit was issued, provided the actual start of construction, repair, reconstruction, rehabilitation, addition, placement, or other improvement was within one hundred eighty days from the date of the permit. The actual start means either the first placement of permanent construction of a structure (other than a manufactured home) on a site, su,.:h as the pouring of slab or footings, the installation of piles, the construction of columns, or any work beyond the stage of excavation; or the placement of a manufactured home on a foundation. Permanent construction does not include land preparation, such as clearing, grading, and filling; nor does it include the installation of streets and/or walkways; nor does it include excavation for a basement, footings, piers or foundations or the erection of temporary forms; nor does it include the installation on the property of accessory buildings, such as garages or sheds not occupied as dwelling units or not part of the main structure. For a substantial improvement, the actual start of construction means the first alteration of any wall, ceiling, floor, or other structural part of a building, whether or not that alteration affects the external dimensions of the building. For a structure (other than a mobile home) without a basement or poured footings, the "start of construction" includes the first permanent framing or assembly of the structure or any part thereof on its piling or foundation. For mobile homes not within a mobile home park or mobile home subdivisions, "start of construction" means the affixing of the mobile home to its permanent site. For mobile homes within mobile home parks or mobile home subdivisions, "start of construction" is the date on which the construction of facilities for servicing the site on which the mobile home is to be affixed (including, at a minimum, the construction of streets, either final site grading or the pouring of concrete pads, and installation of utilities) is completed. 53. "Structure" means a walled and roofed building that is principally aboveground. This includes a gas or liquid storage tank or manufactured/mobile home. 54. "Substantial damage" means damage of any origin sustained by a structure whereby the cost of restoring the structure to its before damaged condition would equal or exceed fifty percent of the market value of the structure before the damage occurred. 55. "Substantial improvement" means any reconstruction, rehabilitation, addition or other proposed new development of a structure, the cost of which equals or exceeds fifty percent of the market value of the structure before the "start of construction" of the improvement. This term includes structures which have incurred "substantial damage," regardless of the actual work performed. The term does not, however, include either: a. Any project for improvement of a structure to correct violations or to comply with state or local health, sanitary, or safety code specifications which have been identified by a local code conformance official and which are solely necessary to assure safe living conditions; or 6 Ordinance No. 2011- Amending Section 18.29.070 Overlay Zones b. Any alteration of a "historic structure" provided that the alteration will not preclude the structure's continued designation as a "historic structure." 56. "Violation" means the failure of a structure or other development to be fully compliant with the community's floodplain management regulations. A structure or other development without the elevation certificate, other certifications, or other evidence of r^mpliance required in this chapter is presumed to be in violation until such time as that documentation is provided. 57. "Water surface elevation" means the height, in relation to the National Geodetic Vertical Datum (NGVD) of 1929 (or other datum, where specified), of floods of various magnitudes and frequencies in the floodplains of coastal or riverine areas. 58. "Watercourse" means a lake, river, creek, stream, wash, arroyo, channel or other topographic feature on or over which waters flow at least periodically. Watercourse includes specifically designated areas in which substantial flood damage may occur. F. Lands to which Chapter Applies. This chapter shall apply to all areas of special flood hazards within the jurisdiction of National City. G. Basis for Establishing the Areas of Special Flood Hazard. The areas of special flood hazard as shown on the special flood hazard map as floodway (FW), floodway fringe (FF-1), and floodway fringe -shallow flooding (FF-2) zones and conforming with the areas of special flood hazard identified by the Federal Insurance Administration (FIA) of the Federal Emergency Management Agency (FEMA) in the Flood Insurance Study (FIS) for National City dated August 4, 1988, and accompanying Flood Insurance Rate Maps (FIRMs) and Flood Boundary and Floodway Maps (FBFMs), dated August 4, 1988, and all subsequent amendments and/or revisions, are adopted by reference and declared to be a part of this chapter. This FIS and attendant mapping is the minimum area of applicability of this chapter and may be supplemented by studies for other areas which allow implementation of this chapter and which are recommended to the planning commission by the floodplain administrator. The study, FIRMs and FBFMs are on file at the office of the floodplain administrator at 1243 National City Boulevard, National City, California, 91950. H. Compliance. No structure or land shall hereafter be constructed, located, extended, converted or altered without full compliance with the terms of this chapter and other applicable regulations. Violation of the requirements (including violations of conditions and safeguards established in connection with conditions) shall constitute a misdemeanor. Nothing herein shall prevent the city from taking such lawful action as is necessary to prevent or remedy any violation. I. Interpretation. In the interpretation and application of this chapter, all provisions shall be: 1. Considered as minimum requirements; 2. Liberally construed in favor of the city; and 3. Deemed neither to limit nor repeal any other powers granted under state statutes. J. Severability. This chapter and the various parts thereof are declared to be severable. Should any section of this chapter be declared by the courts to be unconstitutional or invalid, such decision shall not affect the validity of the chapter as a whole, or any portion thereof other than the section so declared to be unconstitutional or invalid. K. Floodway Zone (FW) Established. There is established, on the special flood hazard map, a designated floodway zone. The FW zone shall be applied to those areas of special flood hazard designated as floodways on the "Flood Boundary and Floodway Map" of the Flood Insurance Study. L. Floodway Fringe Zone (FF-1) Established. There is established, on the special flood hazard map, a designated floodway fringe zone. The FF-1 zone shall be applied 7 Ordinance No. 2011- Amending Section 18.29.070 Overlay Zones to those areas of special flood hazard designated as floodway fringe on the "Flood Boundary and Floodway Map" of the Flood Insurance Study, but excluding areas of shallow flooding designated AO or AH on the Flood Insurance Rate Map (FIRM). M. Floodway Fringe — Shallow Flooding Zone (FF-2) Established. There is established, on the special flood hazard map, a designated floodway fringe -shallow flooding zone. The FF-2 zone shall be applied to those areas of special flood hazard designated as floodway fringe on the "Flood Boundary and Floodway Map" of the Flood Insurance Study, and designated as areas of shallow flooding AO or AH on the Flood Insurance Rate Map (FIRM). N. Standards Applicable to All Areas of Special Flood Hazard. In all areas of special flood hazards including the FW, FF-1 and FF-2 zones, the following standards are required: 1. Anchoring. a. All new construction and substantial improvements shall be adequately anchored to prevent flotation, collapse or lateral movement of the structure resulting from hydrodynamic and hydrostatic loads, including the effects of buoyancy. b. All manufactured/mobile itvmes shall meet the anchoring standards of subsection Q. 2. Construction Materials and Methods. All new construction and substantial improvements shall be constructed: a. With materials and utility equipment resistant to flood damage; b. Using methods and practices that minimize flood damage; c. With electrical, heating, ventilation, plumbing, and air conditioning equipment and other service facilities that are designed and/or located so as to prevent water from entering or accumulating within the components during conditions of flooding; and if d. Within Zones AH or AO, so that there are adequate drainage paths around structures on slopes to guide flood waters around and away from proposed structures. 3. Elevation and Floodproofing. (See subsection E definitions for "new construction," "substantial damage" and "substantial improvement.") a. Residential construction, new or substantial improvement, shall have the lowest floor, including basement: In an AO zone, elevated above the highest adjacent grade to a height exceeding the depth number specified in feet on the FIRM by at least one foot, or elevated at least three feet above the highest adjacent grade if no depth number is specified; ii. In an A zone, elevated at least one foot above the base flood elevation, as determined by the city; In all other zones, elevated at least one foot above the base flood elevation. Upon the completion of the structure, the elevation of the lowest floor including basement shall be certified by a registered professional civil engineer or surveyor to be properly elevated. Such certification or verification shall be provided to the floodplain administrator. b. Nonresidential construction shall either be elevated to conform with subsection 3 a of this section or together with attendant utility and sanitary facilities: Be completely floodproofed below the elevation recommended under subsection 3 a of this section so that the structure is watertight with walls substantially impermeable to the passage of water; and 8 Ordinance No. 2011- Amending Section 18.29.070 Overlay Zones ii. Have structural components capable of resisting hydrostatic and hydrodynamic loads and effects of buoyancy; and iii. Be certified by a registered professional civil engineer that the standards of this subsection 3 b of this section are satisfied. Such certification shall be provided to the floodplain administrator. c. All new construction and substantial improvements with fully enclosed areas below the lowest floor (excluding basement) that are usable solely for parking vehicles, building access or storage, and which are subject to flooding shall be designed to automatically equalize hydrostatic flood forces on exterior walls by allowing for the entry and exit of floodwaters. Designs for meeting this requirement must exceed the following minimum criteria: Be certified by a registered professional civil engineer; or ii. Be certified to comply with a local floodproofing standard approved by the Federal Insurance Administration, Federal Emergency Management Agency; or iii. Have a minimum of two openings having a total net area of not less than one square inch for every square foot of enclosed area subject to flooding. The bottom of all openings shall be no higher than one foot above grade. Openings may be equipped with screens, louvers, valves or other coverings or devices provided that they permit the automatic entry and exit of floodwaters. d. Manufactured homes shall also meet the standards in subsection 3 c of this section and subsection Q. 4. Storage of Material and Equipment. a. The storage or processing of materials that are, in time of flooding, flammable, explosive, or could be injurious to human, animal or plant life is prohibited. b. Storage of other material or equipment may be allowed if not subject to major damage by floods and firmly anchored to prevent flotation or if readily removable from the area within the time available after flood warning. O. Standards for Utilities. 1. All new and replacement water supply and sanitary sewage systems shall be designed to minimize or eliminate: a. Infiltration of floodwaters into the systems; and b. Discharge from the systems into floodwaters. 2. On -site waste disposal systems shall be located to avoid impairment to them, or contamination from them during flooding. P. Standards for Subdivisions. 1. All preliminary subdivision proposals shall identify the flood hazard area and the elevation of the base flood. 2. All subdivision plans will provide the elevation of proposed structure(s) and pad(s). If the site is filled above the base flood elevation, the final first floor and pad elevations shall be certified by a registered professional civil engineer or surveyor and provided to the floodplain administrator. 3. All subdivision proposals shall be consistent with the need to minimize flood damage. 4. All subdivision proposals shall have public utilities and facilities such as sewer, gas, electrical and water systems located and constructed to minimize flood damage. 5. All subdivisions shall provide adequate drainage to reduce exposure to flood hazards. 9 Ordinance No. 2011- Amending Section 18.29.070 Overlay Zones Q. Standards for Manufactured Homes/Mobile Homes. 1. All manufactured homes that are placed or substantially improved, within Zones A1-30, AH and AE on the Flood Insurance Rate Map, on sites located: a. Outside of a manufactured home park or subdivision; b. In a new manufactured home park or subdivision; c. In an expansion to an existing manufactured home park or subdivision; or d. In an existing manufactured home park or subdivision on a site upon which a manufactured home has incurred "substantial damage" as the result of a flood, shall be elevated on a permanent foundation such that the lowest floor of the manufactured home is elevated at least one foot above the base flood elevation and be securely anchored to an adequately anchored foundation system to resist flotation, collapse and lateral movement. 2. All manufactured homes to be placed or substantially improved on sites in an existing manufactured home park or subdivision within Zones A1-30, AH and AE on the Flood Insurance Rate Map that are not subject to the provisions of subsection A of this section shall be elevated so that either: a. The lowest floor of the manufactured home is at least one foot above the base flood elevation; or b. The manufactured home chassis is supported by reinforced piers or other foundation elements of at least equivalent strength that are no less than thirty- six inches in height above grade and shall be securely anchored to an adequately anchored foundation system to resist flotation, collapse and lateral movement. 3. All mobile homes/manufactured homes shall be anchored to resist flotation, collapse or lateral movement by providing over -the -top and frame ties to ground anchors. Specific requirements shall be that: a. Over -the -top ties be provided at each of the four corners of the mobile home, with two additional ties per side at intermediate locations, with mobile homes less than fifty feet long requiring only one additional tie per side; b. Frame ties be provided at each corner of the home with five additional ties per side at intermediate points, with mobile homes less than fifty feet long requiring only four additional ties per side; c. All components of the anchoring system be capable of carrying a force of four thousand eight hundred pounds; and d. Any additions to the mobile home shall be similarly anchored. R. Standards for Recreational Vehicles. All recreational vehicles placed on sites within Zones A1-30, AH and AE on the community's Flood Insurance Rate Map will either: 1. Be on the site for fewer than one hundred eighty consecutive days; 2. Be fully licensed and ready for highway use —a recreational vehicle is ready for highway use if it is on its wheels or jacking system, is attached to the site only by quick disconnect type utilities and security devices, and has no permanently attached additions; or 3. Meet the permit requirements of subsection T of this chapter and the elevation and anchoring requirements for manufactured homes in subsection Q 1 a. S. Floodways (FW). Located within areas of special flood hazard established in subsection G are areas designated as floodways to which the following provisions apply: 1. Encroachments, including fill, new construction, manufactured homes, substantial improvements, and other development, shall be prohibited unless certification by a registered professional civil engineer is provided demonstrating that encroachments shall not result in any increase in flood levels during the occurrence of the base flood discharge. 10 Ordinance No. 2011- Amending Section 18.29.070 Overlay Zones 2. If subsection S 1 is satisfied, all new construction, substantial improvements, and other new development shall comply with all other applicable flood hazard reduction provisions of subsections N through S and require approval of a Conditional Use Permit pursuant to Title 18 of the National City Municipal Code. (Ord. 2107 § 1 (part), 1996) T. Establishment of Development Permit. A development permit shall be obtained concurrently with or before issuance of any building, grading, conditional use, planned development, or planned unit development permit, or site plan approval, and before construction or development begins within any area of special flood hazard established in subsection G. Application for a development permit shall be on forms furnished by the floodplain administrator and may include, but not be limited to: plans in duplicate drawn to scale showing the nature, location, dimensions and elevation of the area in question; existing or proposed structures, fill, storage of materials, drainage facilities; and the location of the foregoing. Specifically, the following information is required: 1. Identify and describe the work to be covered by the permit for which application is made; 2. Describe the land on which the proposed work is to be done by lot, block, tract, house and street address; or similar description that will readily identify and definitely locate the proposed building or work; 3. Indicate the use or occupancy for which the proposed work is intended; 4. Be accompanied by plans and specifications for proposed construction; 5. Be signed by the permittee or his authorized agent who may be required to submit evidence to indicate such authority; 6. Proposed elevation in relation to mean sea level of the lowest floor (including basement) of all structures in AO zone elevation of highest adjacent grade and proposed elevation of lowest floor of all structures; 7. Proposed elevation in relation to mean sea level to which any structure will be floodproofed, if required in subsection N 3 c; 8. All appropriate certifications listed in subsection V 5 of this chapter; 9. Description of the extent to which any watercourse will be altered or relocated as a result of the proposed development; 10. Give such other information as reasonably may be required by the floodplain administrator, including but not limited to: a. A typical valley cross-section showing the channel of the stream, elevation of land areas adjoining each side of the channel, cross -sectional areas to be corrupted by the proposed development and higher water information, b. Locations and elevations of streets, water supply, sanitary facilities, photographs showing existing land uses and vegetation upstream and downstream, soil types and other pertinent information, c. Profile showing the slope of the bottom of the channel or flow line of the stream; 11. Evidence of prior or concurrent approval of any Conditional Use Permit which may be required by subsection V for alteration of watercourses. U. Designation of the Floodplain Administrator. The city engineer is appointed to administer, implement and enforce this chapter by granting or denying development permits in accord with its provisions. V. Duties and Responsibilities of the Floodplain Administrator. The duties of the floodplain administrator shall include, but not be limited to the following: 1. Permit Review. Review all development permits to determine that: 11 Ordinance No. 2011- Amending Section 18.29.070 Overlay Zones a. Permit requirements of this chapter have been satisfied; b. All other required state and federal permits have been obtained; c. The site is reasonably safe from flooding; and d. The proposed development does not adversely affect the carrying capacity of the areas where base flood elevations have been determined but a floodway has not been designated. 2. Review and Use of any Other Base Flood Data. When base flood elevation data have not been provided in accordance with subsection G, the floodplain administrator shall obtain, review and reasonably utilize any base flood and floodway elevation data available from a federal or state agency or other source, in order to administer subsections N through S, inclusive. Any such information shall be submitted to the city for adoption. 3. Information to be Obtained and Maintained. a. Obtain and record the actual elevation (in relation to mean sea level) of the lowest habitable floor (including basement) of all new or substantially improved structures; b. For all new or substantially improved flood -proofed structures: Verify and record the actual elevation (in relation to mean sea level); and ii. Maintain the floodproofing certifications required in subsection 3 a b and c of subsection N, part 2 of subsection P, and part 1 of subsection S; c. Maintain for public inspection all records pertaining to the provisions of this chapter. 4. Conditional Use Permit Required. In alteration or relocation of a watercourse, a Conditional Use Permit shall be required by the planning commission. Such permit shall include the following conditions: a. Notification of adjacent communities and the California Department of Water Resources prior to alteration or relocation; b. Submission of evidence of such notification to the Federal Insurance Administration, Federal Emergency Management Agency; c. Assurance that the flood carrying capacity within the altered or relocated portion of said watercourse is maintained; d. The new channel shall be completed before the old channel is abandoned. 5. Documentation of Floodplain Development. public inspection and make available as needed the following: a. Certification required by subsection b. Certification required by subsection floodproofing of nonresidential structures); c. Certification required by subsection standard); Obtain and maintain for N 3 a (floor elevations); N 3 b (elevation or N 3 c (wet floodproofing d. Certification of elevation required by subsection P 2 (subdivision standards); e. Certification required by subsection S 1 (floodway encroachments). 6. Remedial Action. Take action to remedy violations of this chapter as specified in subsection H. 7. Base Flood Elevation changes due to physical alterations: a. Within 6 months of information becoming available or project completion, whichever comes first, the floodplain administrator shall submit or assure that the 12 Ordinance No. 2011- Amending Section 18.29.070 Overlay Zones permit applicant submits technical or scientific data to FEMA for a Letter of Map Revision (LOMR) b. All LOMR's for flood control projects are approved prior to the issuance of building permits. Building Permits must not be issued based on Conditional Letters of Map Revision (CLOMR's). Approved CLOMR's allow construction of the proposed flood control project and land preparation as specified in the "start of construction" definition. Such submissions are necessary so that upon confirmation of those physical changes affecting flooding conditions, risk premium rates and floodplain management requirements are based on current data. 8. Changes in corporate boundaries: Notify FEMA in writing whenever the corporate boundaries have been modified by annexation or other means and include a copy of a map of the community clearly delineating the new corporate limits. W. Map Determination. The boundaries of the FW, FF-1 and FF-2 zones shall be determined by the scale contained on the special flood hazard map. Where interpretation is needed to the exact location of said boundaries (for example where there appears to be a conflict between a mapped boundary and actual field conditions), the planning commission shall make such determination in accordance with this Title based upon: 1. The recommendation of the floodplain administrator; and 2. A review of the Flood Hazard Boundary Maps adopted by reference and declared to be a part of this chapter; and 3. Technical evidence which may be presented by the applicant. The regulatory flood elevation for the point in question shall be the governing factor in locating the boundary on land. The person contesting the location of the boundary shall be given a reasonable opportunity to appeal the interpretation as provided in subsection X. X. Appeals. The planning commission shall hear and decide appeals when it is alleged there is an error in any requirement, decision or determination made by the floodplain administrator in the enforcement or administration of this chapter. Appeals may be filed and shall be processed in the same manner as for site plan review as provided in this Title. Y. EXCEPTIONS. 1. Applications for exceptions from the terms of this chapter shall be submitted and processed in the same manner as Conditional Use Permits, as provided in this Title. 2. In passing upon such applications for exceptions, the planning commission shall consider all technical evaluations, all relevant factors, standards specified in other sections of this chapter and the: a. Danger that materials may be swept onto other lands to the injury of others; b. Danger to life and property due to flooding or erosion damage; c. Susceptibility of the proposed facility and its contents to flood damage and the effect of such damage on the individual owner and future property owners; d. Importance of the services provided by the proposed facility to the community; e. Necessity to the facility of a waterfront location where applicable; f. Availability of alternative locations for the proposed use which are not subject to flooding or erosion damage; g. Compatibility of the proposed use with existing and anticipated development; h. Relationship of the proposed use to the comprehensive plan and floodplain management program for that area; 13 Ordinance No. 2011- Amending Section 18.29.070 Overlay Zones i. Safety of access to the property in times of flood for ordinary and emergency vehicles; j. Expected heights, velocity, duration, rate of rise, and sediment transport of the floodwaters expected at the site; and k. Costs of providing governmental services during and after flood conditions, including maintenance and repair of public utilities and facilities such as sewer, gas, electrical and water systems, and streets and bridges. 3. Any applicant to whom an exception is granted shall be given written notice over the signature of a community official that: a. The issuance of an exception to construct a structure below the base flood level will result in increased premium rates for flood insurance; and b. Such construction below the base flood level increases risks to life and property. c. A copy of the notice shall be recorded by the floodplain administrator in the office of the San Diego County Recorder and shall be recorded in a manner so that it appears in the chain of title of the affected parcel of land. 4. The floodplain administrator will maintain a record of all exception actions, including justification for their issuance, and report such exceptions issued in its biennial report submitted to the Federal Insurance Administration, Federal Emergency Management Agency. Z. Conditions for Exceptions. 1. Generally, exceptions may be issued for new construction and substantial improvements and other proposed development to be erected on a lot of one-half acre or less in size contiguous to and surrounded by lots with existing structures constructed below the base flood level, providing items in subsections N through U, inclusive, of this chapter have been fully considered. As the lot size increases beyond one-half acre, the technical justification required for issuing the exception increases. 2. Exceptions may be issued for the repair or rehabilitation of "historic structures" (as defined in subsection E of this chapter) upon a determination that the proposed repair or rehabilitation will not preclude the structure's continued designation as a historic structure and the exception is the minimum necessary to preserve the historic character and design of the structure. 3. Exceptions shall not be issued within any mapped regulatory floodway if any increase in flood levels during the base flood discharge would result. 4. Exceptions shall only be issued upon a determination that the exception is the "minimum necessary," considering the flood hazard, to afford relief. "Minimum necessary" means to afford relief with a minimum of deviation from the requirements of this chapter. For example, in the case of exceptions to an elevation requirement, this means the planning commission need not grant permission for the applicant to build at grade, or even to whatever elevation the applicant proposes, but only to that elevation which the planning commission believes will both provide relief and preserve the integrity of this chapter. 5. Exceptions shall only be issued upon: a. A showing of good and sufficient cause; b. A determination that failure to grant the exception would result in exceptional hardship to the applicant; and c. A determination that the granting of an exception will not result in increased flood heights, additional threats to public safety, extraordinary public expense, create nuisances, cause fraud on or victimization of the public as identified in subsection E of this chapter, or conflict with existing local laws or ordinances. 14 Ordinance No. 2011- Amending Section 18.29.070 Overlay Zones 6. Exceptions may be issued for new construction, substantial 'rrrrovement, and other proposed development necessary for the conduct of a functionally dependent use provided that the provisions of subsection Z 1-5 through E are satisfied and that the structure or other development is protected by methods that minimize flood damages during the base flood and does not result in additional threats to public safety and does not create a public nuisance. 7. Upon consideration of the factors of subsection Y and the purposes of this chapter, the planning commission may attach such conditions to the granting of exceptions as it deems necessary to further the purposes of this chapter. AA. Fees. 1. A nonrefundable fee as established in the fee schedule adopted by the city shall be paid to the city at the time of filing an application for a development permit pursuant to subsection T. 2. A nonrefundable fee as established in the fee schedule adopted by the city shall be paid to the city at the time of filing an appeal pursuant to subsection X. 3. A nonrefundable fee as established in the fee schedule adopted by the city shall be paid to the city at the time of filing for an exception pursuant to subsection Y. PASSED AND ADOPTED this day of , 2011. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney Ron Morrison, Mayor 15 Ordinance No. 2011- Amending Section 18.29.070 Overlay Zones CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: November 1, 2011 AGENDA ITEM NO. 11 M TITLE: An Ordinance of the City Council of the City of National City amending Section 1.40.010 of the National City Municipal Code regarding Claims for Money, Damages or Refunds of Money PREPARED BY: PHONE: EXPLANATION: Claudia G. Silva DEPARTMENT: Ci Ext. 4222 APPROVED BY: ttorney Recent developments in case law have raised questions regarding class claims for refunds of local taxes and fees. In the past, many cities relied on a 1992 California Supreme Court case (Woosley v. State of California) for the proposition that class claims for local tax refunds were prohibited. Recently, however, the California Supreme Court in Ardon v. City of Los Angeles rejected that proposition. The Court in Ardon does not address whether a local ordinance may bar such class claims, thus, the attached ordinance is drafted to specifically preclude class claims against the City. FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: X Finance MIS STAFF RECOMMENDATION: Adopt ordinance. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: >osed ordinance. ORDINANCE NO. 2011 — 2369 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AMENDING SECTION 1.40.010 OF THE NATIONAL CITY MUNICIPAL CODE REGARDING CLAIMS FOR MONEY, DAMAGES OR REFUNDS OF MONEY BE IT ORDAINED by the City Council of the City of National City that the National City Municipal Code is amended by amending Chapter 1.40 as follows: Section 1. Section 1.40.010 of the National City Municipal Code is hereby amended to read as follows: Section 1.40.010 Claims for money, damages or refunds of money. A. Claims Required. All claims against the city for money or damages not otherwise governed by the Government Claims Act, California Government Code Sections 900 et seq., or another state law (hereinafter in this ordinance, "claims") shall be presented within the time, and in the manner, prescribed by Part 3 of Division 3.6 of Title 1 of the California Government Code (commencing with Section 900 thereof) for the claims to which that Part applies by its own terms, as those provisions now exist or shall hereafter be amended, and as further provided by this ordinance. No order of a refund may be made until a written claim therefore has been presented to the city in accordance with this section. In accordance with California Government Code Sections 935(b) and 945.6, no suit for money, damages or a refund may be brought against the city until a written claim has been presented to the city council and has been acted upon or has been deemed to be rejected by the city council. No suit for money, damages or a refund may be maintained by a person who has not complied with the requirements of this section. Only the person who filed the claim may bring such a suit, and if another person should do so, judgment shall not be rendered for the plaintiff. B. Form of Claim. All claims shall be made in writing and verified by the claimant or by his or her guardian, conservator, executor or administrator. All claims shall contain the information required by California Government Code Section 910. The foregoing reference to Government Code Section 910 shall not be construed to authorize a class claim, and no claim may be filed on behalf of a class of persons unless verified by every member of that class. C. Claim Prerequisite to Suit. In accordance with California Government Code Sections 935(b) and 945.6, all claims shall be presented as provided in this section and acted upon by the city prior to the filing of any action on such claims, and no such action may be maintained by a person who has not complied with the requirements of this section. D. Suit. Any action brought against the city upon any claim or demand shall conform to the requirements of Sections 940-949 of the California Government Code. Any action brought against any employee of the city shall conform with the requirements of Section 950-951 of the California Government Code. Section 2. Authority. This ordinance is enacted pursuant to Section 935 of the California Government Code. Section 3. Severability. Should any provision of this Ordinance, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of this Ordinance or the application of this Ordinance to any other person or circumstance and, to that end, the provisions hereof are severable. 1 Ordinance No. 2011 —2369 Amending NCMC Section 1.40.010 Section 4. Effective Date; Transitional Clause. This Ordinance shall take effect thirty days after adoption as provided by Government Code Section 36937. However, any claim that would have been timely if presented on the day before this Ordinance becomes effective which claim would be untimely under the requirements of the this Ordinance may, notwithstanding this Ordinance, be presented not later than the 45th clay after the adoption of this Ordinance. Section 5. Certification. The City Clerk shall certify to the passage and adoption of this Ordinance, and shall cause the same to be published according to law. PASSED and ADOPTED this 1st day of November, 2011. ATTEST: Michael R. Della, City Clerk APPROVED AS TO FORM: Claudia G. Silva City Attorney Ron Morrison, Mayor 2 Ordinance No. 2011 — 2369 Amending NCMC Section 1.40.010 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: November 1, 2011 AGENDA ITEM NO. 12 EM TITLE: A Resolution certifying a Mitigated Negative Declaration and adopting a Mitigation Monitoring & Reporting Program for the 165,000 square -foot Gateway project (Applicant: Sudberry Properties, Inc.) (Case File No. 2008-37 IS). PREPARED BY: Martin Reeder DEPARTMENT: Develo t Svcs/Planning. PHONE: 619-336-4313 APPROVED BY. ��/� EXPLANATION: Sudberry Development is proposing to construct a 165,000 square -foot commercial development, including a home improvement store, auto retail outlet, gas station, bank/retail building, and a drive -through restaurant. The project is proposed on the former swap meet and drive-in movie theater site at the northeast corner of National City Blvd. and State Route 54. The applicant submitted an Initial Study (IS), which determined the proposed project could have a potentially significant environmental effect in the following areas: Aesthetics, Biological Resources, Cultural Resources, Geology/Soils, Hazards/Hazardous Materials, Hydrology/ Water Quality, Noise, and Transportation/Traffic. The associated Mitigated Negative Declaration (MND) identifies mitigation measures that will avoid or reduce all potentially significant environmental effects to below a level of significance. The attached background report describes the project in detail. This Mitigated Negative Declaration and Mitigation Monitoring & Reporting Program are associated with the Street Vacation (2008-37 SC) and Notice of Decision (2008-37 CUP, MUP, Z) for the Gateway project, which are on the Council agenda. Certification of the MND is required prior to approval of the Gateway project. FINANCIAL STATEMENT: ACCOUNT NO. ENVIRONMENTAL REVIEW: Mitigated Negative Declaration (2008-37 IS). ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS I STAFF RECOMMENDATION: Staff recommends adopting the Resolution certifying the Mitigated Negative Declaration (MND) and adopting the Mitigation Monitoring & Reporting Program (MMRP). BOARD / COMMISSION RECOMMENDATION: The Planning Commission recommended approval of the MND and MMRP. Vote: Ayes — Farias, Baca, Pruitt, Reynolds, Flores Absent: Alvarado, DeLaPaz ATTACHMENTS: 1. Background Report. 2. Mitigated Negative Declaration (2008-37 IS) including Mitigation Monitoring & Reporting Program (Appendix Z) provided electronically and on file in the City Clerk's Office. 3. Findings for Approval. 4. Resolution. RESOLUTION NO. 2011 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY CERTIFYING A MITIGATED NEGATIVE DECLARATION, AND ADOPTING A MITIGATION MONITORING & REPORTING PROGRAM FOR THE 165,000 SQUARE -FOOT GATEWAY PROJECT APPLICANT: SUDBERRY PROPERTIES, INC. CASE FILE NO. 2008-37 IS WHEREAS, application was made for an Initial Study, for which a Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program for the 165,000 square - foot Gateway project were prepared and reviewed; and WHEREAS, on October 17, 2011, the Planning Commission considered the proposed Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program, together with any comments received during the public review process, and recommended approval of said items; and WHEREAS, the City Council considered said Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program, together with comments received during the public review process, at a duly advertised public hearing held on November 1, 2011; and WHEREAS, at said public hearing the City Council considered the staff report provided for Case File No. 2008-37 IS, which is maintained by the City, and incorporated herein by reference, along with evidence and testimony at said hearing; and WHEREAS, the City Council has considered the Planning Commission's report and recommendation, and the presentation of staff regarding the proposed Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program; and WHEREAS, this action is taken pursuant to all applicable procedures required by State law and City law; and WHEREAS, the action hereby taken is found to be essential for the preservation of the public health, safety and general welfare. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that the testimony and evidence presented to the Planning Commission at the public hearing held on October 17, 2011, and to the City Council at the public hearing held on November 1, 2011, support the following findings: 1. That the Mitigated Negative Declaration (2008-37 IS) has been read and considered together with comments received during the public review process; and 2. That based on the whole record, including the Initial Study, there is no substantial evidence that the project will have a significant effect on the environment, and that the Mitigated Negative Declaration reflects the City's independent judgment and analysis. Resolution No. 2011 — November 1, 2011 Page Two BE IT FURTHER RESOLVED that based on these findings, the Mitigated Negative Declaration is certified, and the Mitigation Monitoring and Reporting Program is adopted, subject to the following condition: 1. All mitigation measures as specified in the Mitigation Monitoring, and Reporting Program (Appendix Z of the Mitigated Negative Declaration), adopted as part of this certification, referring to site lighting, habitat impacts, cultural resource impacts, soils and grading, hazardous materials, hydrology, noise, and traffic shall be incorporated herein by reference as conditions of approval. 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. PASSED and ADOPTED this 1st day of November, 2011. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney BACKGROUND REPORT P cposal The project proposes new construction of approximately 165,000 square feet of commercial building area, a total of 961 parking spaces, landscaping, signage, lighting, and utilities. In addition to the on -site development with its associated internal roads ur i utilities, the project would include vacation of D Avenue from 31st Street to its terminus just north of SR-54 and vacation of unimproved 32nd Street from B Avenue to F Avenue. Road improvements at the proposed project's primary access point on National City Boulevard and 33rd Street, to include construction of a new traffic signal and widening of the primary access driveway, is also proposed. The commercial development would consist of five single -story buildings ranging in height from 25 to 50 feet. Table 1 summarizes the proposed uses and area for each building, as well as the jurisdiction in which the building would be located. Building A Table 1 — Proposed Commercial Uses Proposed Use Fast food with drive -through Jurisdiction National City Area (ft�) 3,500 8 Bank with drive -through, or retail as described below National City 4,500 C Gas station, car wash, and convenient store/retail Auto retail commercial (Carmax) Chula Vista 3,770 Retail, home improvement store (Lowe's) (120,587 ft2 main store and 31,658 ft2 garden Chula Vista National City 32,500 120,587 Total 164,857 As a potential alternate development for Building B, the project applicant may construct an in -line retail building of approximately 7,500 square feet. The project would also include off -site improvements on an approximately 0.25-acre area at the SR-54 westbound off -ramp to National City Blvd. within the Caltrans right- of-way_ These improvements would consist of extending vehicle lane capacity along the existing off -ramp right-hand turn lane to approximately 590 feet, the construction of an additional right-hand turn lane with approximately 350 feet of lane capacity, re -striping the off -ramp travel lanes, and construction of a retaining wall along the northern portion of the off -ramp embankment. Improvements will also include modification to the existing westbound off -ramp traffic signal in order to interconnect and coordinate itwith the proposed traffic signal at the project's main access point at National City Boulevard and 33rd Street. Construction of improvements in this area is subject to Caltrans approval. i Signage proposed as part of the project includes tenant signs on three sides of the proposed buildings, several monument signs on the project site adjacent to National City Boulevard and SR-54 (including a gas station monument sign), a pylon sign at the project's primary access point at National City Boulevard and 33rd Street, and two f.eeway pylon signs along the southern boundary of the project site adjacent to SR-54 — one in National City and one in Chula Vista. The Gateway project is expected to be developed over approximately three years, with construction beginning in the first quarter of 2012_ Construction of the project is divided into two phases; the initial phase of development would include demolition, rough grading, and construction of Buildings A, B, C, and G. As part of the first phase of development, the project would construct the SR-54 westbound off -ramp improvements, the internal spine road leading from the primary project access point at National City Boulevard and traveling along the southern boundary of the project site to the eastern portion of the site, as well as the project's extension of D Avenue from the existing cul- de-sac to the aforementioned spine road. On -site utilities and connections associated with the first phase buildings would be constructed/installed at the same time as Buildings A, B, C, and G. Environmental Review The applicant submitted an Initial Study (IS), which determined the proposed project could have a potentially significant environmental effect in the following areas: Aesthetics, Biological Resources, Cultural Resources, Geology/Soils, Hazards/Hazardous Materials, Hydrology/ Water Quality, Noise, and Transportation/Traffic. The Mitigated Negative Declaration (MND) identifies mitigation measures that will avoid or reduce all potentially significant environmental effects to below a level of significance. 70 separate entities were mailed the Notice of Intent and/or Draft Mitigated Negative Declaration for review and comment. Comment letters were received from Sweetwater Authority, the Native American Heritage Commission (NAHC), the Department of Toxic Substances Control (DTSC), and San Diego County Archaeological Society (SDCAS). The comments were generally related to post -entitlement permits or activities (i.e., grading) and did not require any significant changes to the MND, although some clarifications were made to the MND as a result of comments. The MND was noticed for a 30 day period, commencing on October 14, 2010 and ending November 15, 2010. In technical studies provided with the Draft MND, no significant biological resources were located within National City, although the City of Chula Vista may require mitigation of non- native grasslands on the property within their jurisdiction. No historical or cultural resources were noted in site studies and it was also determined that there would be no impacts on land use and planning with the recent zone changes enacted by the City_ It was determined that potential impacts related to geological conditions, hazardous materials, 2 hydrology/water quality, noise and transportation/traffic would be present, mostly during construction. Traffic — A Traffic Impact Analysis was prepared and submitted as a technical appendix to the MND. The report was based on a shopping center use of 257,000 square feet (the original project size) and also analyzed the cumulative projects shown in Table 1. The original project was predicted to result in 15,720 average daily trips (ADT). The new layout (with Carmax) would only generate 15,170 ADT. The higher number was used for purposes of environmental analysis. The current state (swap meet) generates almost 3,000 ADT. Table 1 — Cumulative Projects Project Name Location Proposal; Status Big Box retail Plaza Bonita Riverview Gateway Chula Vista Bayfront Master Plan Costco site near Plaza Bonita 152,591 ft' retail Not constructed Westfield Plaza Bonita 184,600 ft' retail Complete Sweetwater Rd. & 1-805 24,000 ft2 commercial expansion & 643 residential units Not constructed Chula Vista Bayfront Mixed Use, RV -park, Hotel, Industrial Not constructed It should be noted that the proposed Gateway project is now only around 165,000 square feet in size and that three of the four cumulative projects are yet to be constructed. Furthermore, there is a strong likelihood that the potential projects, if constructed, will be smaller than originally proposed. Based on the information contained in the traffic analysis, the traffic engineer has identified two direct irnpacts that can be attributed to the Gateway project. The impacts are to the intersection of National City Blvd. at 33rd Street, and to the intersection of D Avenue at 30th Street_ These irnpacts are noted under opening year 2011 with project conditions and under horizon year 2030 with project conditions. In both cases, the level of service (LOS) for these intersections would be below LOS D, or failing. In order to mitigate these impacts, four mitigation measures have been included in the MND. These measures are: • New traffic signal at National City Blvd. and 33rd Street timed to coincide with existing signal at National City Blvd. and westbound SR-54 off ramp; • Demolition of median and relocation of Mile of Cars sign on National City Blvd. north of 33`d Street, to increase storage lane capacity; • Extending existing right-hand turn lane on westbound SR-54 off ramp and adding new right -turn lane; • Re -striping of turn lanes at the D Avenue and 30`h Street intersection to increase storage lane capacity; • Traffic control plan for pre and post construction activities. With these mitigation measures in place, the project area roadways are intended to operate at LOS D or better. A Mitigation Monitoring and Reporting Program (MMRP) is included with the MND to ensure that all potential impacts from the project to surrounding areas will be mitigated to a level of less than significance. Mitigation measures include the following: • Aesthetics — photometric lighting plan and outdoor lighting studies. • Biological Resources — avoid impacts to raptors and/or migratory birds. • Cultural Resources — Historical, archaeological and paleontological resource monitoring during construction and development activities. • Geology & Soils— building design to accommodate liquefaction settlement. • Hazards & Hazardous Materials — hazardous material management for demolition and grading activities. • Hydrology & Water Quality — Best Management Practices (BMPs) for grading and construction activities, as well as after project completion. • • Noise — management of construction activities with regard to noise and ongoing compliance with Municipal Code standards. • Transportation & Traffic — traffic control improvements including a new traffic light, freeway off -ramp widening, re -striping and traffic light timing; construction traffic management. Concerns noted in the comment letters mentioned above included discovery of artifacts during grading (NAHC), and identification of potentially contaminated sites (DTSC). These comments were incorporated as mitigation measures in the MMRP (CR-1 through 3 and HAZ-1 and 2). SDCAS wrote in support of the proposed mitigation measures related to cultural resources (CR-1 and 2) located in the MMRP. A Condition of Approval of the associated discretionary permit requires compliance with all Sweetwater Authority requirements (2008-37 LS, SC, CUP, MUP, Z). The Mitigated Negative Declaration (2008-37 IS) including Mitigation Monitoring & Reporting Program (Appendix Z) was provided electronically. The Planning Commission conducted a hearing on this project on October 17, 2011, at which time they recommended approval of the Mitigated Negative Declaration including Mitigation Monitoring & Reporting Program based on attached findings (Resolution No. 24-2011). Staff concurs with the decision of the Planning Commission. 4 RECOMMENDED FINDINGS FOR CERTIFICATION OF THE MITIGATED NEGATIVE DECLARATION 2008-37 IS — Gateway That the Mitigated Negative Declaration (2008-37 IS) has been read and considered together with any comments received during the public review process; and, That based on the whole record including the Initial Study, there is no substantial evidence that the project will have a significant effect on the environment and that the Mitigated Negative Declaration reflects the City's independent judgment and analysis. CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: November 1, 2011 AGENDA ITEM NO. 13 EM TITLE: Notice of Decision — Planning Commission approval of a Conditional Use Permit and Minor Use Permit for construction of the 165,000 square -foot Gateway project, and Zone Variance for less than required parking. (Applicant Sudberry Development, Inc.) (Case File 2008-37 CUP, MUP, Z) PREPARED BY: Martin Reeder PHONE: 336-4313 DEPARTMENT: Devel APPROVED cs/Planning. EXPLANATION: The overall project proposes to construct an approximately 165,000 ft2 commercial shopping center in National City (swap meet property) and Chula Vista (former drive-in site). As part of the project the applicant is requesting a Conditional Use Permit for a drive -through restaurant, a Minor Use Permit for a retail/bank building, and a Variance for less than required parking for the National City portion of the project. The attached Background Report describes the project in more detail. Planning Commission conducted a public hearing on October 16, 2011. There were some concerns noted from Keystone Trailer Park residents who were concerned that the overall project would displace or impact them. Staff and the applicant explained that the project would not impact their residences and would be designed to prevent any impacts to their properties. The Commission voted to approve the CUP, MUP, and Zone Variance based on required findings and subject to conditions of approval. Tho associated Parcel map was approved by the Planning Commission. The Street Vacation applications and ironmental certification associated with this Notice of Decision are separately items on this Council agenda. FINANCIAL STATEMENT: ACCOUNT NO. ENVIRONMENTAL REVIEW: Mitigated Negative Declaration (2008-37 IS) ORDINANCE: INTRODUCTION: APPROVED: APPROVED: 1 FINAL ADOPTION: f 1 Finance MIS STAFF RECOMMENDATION: Staff concurs with the decision of the Planning Commission and recommends that the Notice of Decision be filed. BOARD / COMMISSION RECOMMENDATION: The Planning Commission approved the Conditional Use Permit, Minor Use Permit and Zone Variance. Ayes: Baca, Farias, Flores, Pruitt, Reynolds Absent: Alvarado, DeLaPaz ATTACHMENTS: Location Map Background Report Resolution No. 24-2011 Reduced Plans 3150 3200 IL PAIR AT!c leuo!leN 3131 CA I I • • E 31 st St CITY OF NATIONAL CITY CFT,Y75-n State Route 54 Project .arcels Streets tc be Vacated Project Boundary 0 Z. 0 l Q 30 5 3023 3020 o jN.)Ni 3040 3008 Zone Boundary City Boundary E 30th St N I 3007 I 3021 3022 3033 w 3038 _ A CO co 3017 A 3027 a' I D < 3029 I A N W N 3041 cn Oa' Io I A 0 3038 3037; 3104 t T r 1. 3005 3009 3035 D I 3039 cp r- I 1 I 0 125 250 I Feet 500 3105 3200 APN: (multiple) Planning Commission Location Map 2010-37 IS, SC, LS, CUP 1 C 3 1 1 BACKGROUND REPORT History This application was submitted in 2008, with a General Plan and Zoning Map change amendment being initiated by Planning Commission on October 20, 2008. The associated environmental document (Mitigated Negative Declaration) was noticed for a 30 day period, commencing on October 14, 2010 and ending November 15, 2010. Furthermore, the City Council has most recently initiated the Street Vacation process at their meeting of September 20, 2011. This item was originally set for hearing for November 22, 2010, although it was continued multiple times due to ongoing negotiations between the project developer and potential tenants. Since the start of the project the City has updated the General Plan and Land Use Code, which no longer require any form of zone change or general plan amendment. The proposed shopping center is now allowed by right in the zones in which the project is located. Site Characteristics The approximately 26-acre project site is located east of National City Boulevard, immediately north of State Route (SR) 54, west of F Avenue, and south of 30th Street. The project area is comprised of 13 parcels, all but one of which are located within National City. One parcel, the largest single parcel within the project area, is located within the City of Chula Vista. However, the majority of the land area is within National City, thus National City is the lead agency. The majority of the parcels are zoned Major Mixed -Use District (MXD-2), with two of the remaining parcels zoned Major Mixed -Use Corridor (MXC-2) and Commercial Automotive (CA) respectively. The Chula Vista parcel is zoned Limited Industrial (IL). The CA -zoned property is also located within the City's Coastal Zone; however, this parcel is located within an area exempted from Coastal Development Permits provided no Variances are required (none are required or requested in this case). Two of the parcels are currently undeveloped — a 1.3-acre lot located south of Keystone Trailer Park and a smaller MXD-2 — zoned property in the northern portion of the project area. The remaining parcels are developed with a drive-in movie theater (Chula Vista parcel) and paved parking lots used for conducting the National City swap meet. One of the 13 project area parcels, located on the east side of D Avenue south of East 31'` Street, is developed with a single-family residence. The attached location map shows the site in more detail. Proposal The project proposes new construction of approximately 165,000 square feet of commercial building area, a total of 961 parking spaces, landscaping, signage, lighting, and utilities. In addition to the on -site development with its associated internal roads 2 and utilities, the project would include vacation of D Avenue from 31st Street to its terminus just north of SR-54 and vacation of unimproved 32nd Street from B Avenue to F Avenue. Road improvements at the proposed project's primary access point on National City Boulevard and 33rd Street, to include construction of a new traffic signal mid widening of the primary access driveway, is also proposed_ The commercial development would consist of five single -story buildings ranging in height from 25 to 50 feet. Table 1 summarizes the proposed uses and area for each building, as well as the jurisdiction in which the building would be located. A Table 1 — Proposed Commercial Uses last food with drive -through Jurisdiction National City Area (ft2) 3,500 B Bank with drive -through, or retail as described below C Gas station, car wash, and convenient store/retail E Auto retail commercial (Carmax) National City Chula Vista Chula Vista 4,500 3,770 32,500 G Retail, horse improvement store (Lowe's) (120,587 ft' main _ store and-31658Jt2 aarde centerl Total National City 120,587 164,857 As a potential alternate development for Building B, the project applicant may construct an in -line retail building of approximately 7,500 square feet. Signage proposed as part of the project includes tenant signs on three sides of the proposed buildings, several monument signs on the project site adjacent to National City Boulevard and SR-54 (including a gas station monument sign), a pylon sign at the project's primary access point at National City Boulevard and 33rd Street, and two freeway pylon signs along the southern boundary of the project site adjacent to SR-54 — one in National City and one in Chula Vista The Gateway project is expected to be developed over approximately three years, with construction beginning in the first quarter of 2012. Construction of the project is divided into two phases; the initial phase of development would include demolition, rough grading, and construction of Buildings A, B, C, and G. As part of the first phase of development, the project would construct the SR-54 westbound off -ramp improvements, the internal spine road leading from the primary project access point at National City Boulevard and traveling along the southern boundary of the project site to the eastern portion of the site, as well as the project's extension of D Avenue from the existing cul- de-sac to the aforementioned spine road_ On -site utilities and connections associated with the first phase buildings would be constructed/installed at the same time as Buildings A, B, C, and G. 3 Demolition of existing structures on the project site would include the single-family residence on the northeast portion of the site (APN 562-280-29), a former projection house in the southern portion of the site, the two existing swap meet buildings on the eastern portion of the site, and a large soldier pile retaining wall next to the projection house. Building E and the associated parking areas, on -site utilities, and connections would be constructed as part of the second phase of development. Rough grading is expected to occur as a single operation. Analysis Conditional Use Permit The proposed fast-food restaurant (Building A) requires a Conditional Use Permit (CUP) per Land Use Code section 18.22.020 (Allowed Land Uses Commercial Zones), as it is an eating place with a drive -through located within the CA zone_ In addition, section 18.30.360 requires that fast food eating places be a minimurn of 300 feet from the nearest residentially -zoned property. In this case, the nearest such property is over 600 feet away. Drive -through design is regulated through section 18.41.020 (Non Residential Site Planning Standards) — subsection C (Drive -Through Businesses), which requires minimum vehicular queuing distances to be established through the CUP process, minimum interior turning radii, and drive -through window location requirements. These issues will be addressed as part of the building permit process, although there is a condition requiring compliance with the above -noted code sections. Minor Use Permit Land Use Code section 18.22.020 (Allowed Land Uses Commercial Zones), allows for banks, classified under 'goods and services, retail', in the CA zone with a Minor Use Permit (MUP). A Minor Use Permit is a ministerial permit that is administered by staff with findings of approval and conditions (if necessary). Findings are essentially the same as those required by a CUP (e.g., allowed use, General Plan consistency, compatibility, physical suitability, etc). The process involves a^ application and property owner notification, both of which have been conducted as part of the discretionary part of this application. Therefore, findings of approval have been attached to this permit so that they are part of the overall project approval_ Parkinq/Circulationgraffic Parking - Table 4 shows the required and provided parking proposed for Gateway. Table 4 — Parking Spaces Jurisdiction Parking required Parking provided Difference National City 643 587 -56 Chula Vista 182 374 +192 Total 825 961 +136 4 The Land Use Code requires that new shopping centers provide a minimum of one space per 200 square feet (5/1,000) of commercial area, which would require 643 spaces based on the 128,587 square feet proposed in National City_ However, only 587 spaces are proposed, 56 less than required (9%). The applicant is requesting an exception for less than required parking, based on the fact that the individual commercial uses are separated rather than being a unified shopping center/mall. In the MXD-2 zone the parking requirement for individual commercial uses would be one space per 250 square feet (4/1,000), which would only require 515 spaces, less than proposed. In addition, the overall shopping center parking is actually 136 spaces over (17%), based on the 5/1,000 ratio, due to the Chula Vista property being over by 192 spaces_ Furthermore, it is likely that patrons of the mall may park and walk to separate uses, reducing the need for parking based on each individual use. There are also three bus stops within walking distance of the center, two on National City Blvd. north of 33rd Street and one at 30th Street and D Avenue. It should be noted that plans show an alternative design for Building B, which is 3,000 square feet larger than the proposed 4,500 square -foot bank building. There would also be six less parking spaces with the alternate design. Although the parking in National City would be under by 62 spaces (almost 10%) in this scenario, the overall project would still be over by 130 spaces. For purposes of findings of approval for the requested exception, the 10% number has been assumed, even though the overall project would exceed parking requirements by 16%. Furthermore, according to SANDAG traffic generation rates, a bank with a drive -through would generate 200 average daily trips (ADT) per 1,000 square feet as opposed to only 40 ADT per 1,000 square feet for specialty retail/strip commercial. The Planning Commission conducted a hearing on this project on October 17, 2011, at which time they recommended approval of the Conditional Use Permit, Minor Use Permit, and Zone Variance based on attached findings and subject to Conditions of Approval as contained in Planning Commission Resolution No. 24-2011. Staff concurs with the decision of the Planning Commission and recommends that this decision be filed. 5 RESOLUTION NO. 24-2011 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NATIONAL CITY, CALIFORNIA, RECOMMENDING APPROVAL OF A STREET VACATION, PARCEL MAP, VARIANCE, CONDITIONAL USE PERMIT AND MINOR USE PERMIT, AND PROPOSED FINDING OF NO SIGNIFICANT ENVIRONMENTAL EFFECT FOR CONSTRUCTION OF A 165,000 SQUARE -FOOT COMMERICAL CENTER, LOCATED AT THE NORTHEAST CORNER OF NATIONAL CITY BLVD. AND STATE ROUTE 54. APPLICANT: SUDBERRY DEVELOPMENT. CASE FILE NO. 2008-37 IS, SV, LS, CUP APN: 562-252-05, 06 & 07, 562-280-16, 17, 21, 22, 29, 31, 42 & 44, 562-321-08, 562-322-01, 02, 26 & 30 WHEREAS, application was made for adoption of a Mitigated Negative Declaration & Mitigation Monitoring and Reporting Program for a Street Vacation, Parcel Map, and Conditional Use Permiii for construction of a 165,000 square -foot commercial center, located at the northeast corner of National City Blvd. and State Route 54 and generally described as: Real property in the City of National City, County of San Diego, State of California, described as on attached Exhibit "A'. WHEREAS, the Planning Commission of the City of National City, California, considered said applications at a duly advertised public hearing held on October 17, 2011, at which time the Planning Commission considered oral and documentary evidence; and, WHEREAS, at said public hearing the Planning Commission considered the staff report provided for Case File No. 2008-37 IS, SV, LS, CUP, which is maintained by the City and incorporated herein by reference; along with evidence and testimony at said hearing; .and, WHEREAS, this action is taken pursuant to all applicable procedures required by State law and City law; and, WHEREAS, the action hereby taken is found to be essential for the preservation of the public health, safety and general welfare. NOW, THEREFORE, BE IT RESOLVED by the City Planning Commission of the City of National City, California, that the testimony and evidence presented to the Planning Commission at the public hearing held on October 17, 2011, support the following findings: 6 RECOMMENDED FINDINGS FOR APPROVAL OF THE MITIGATED NEGATIVE DECLARATION 2008-37 IS, SV, LS, CUP — Gateway That the Mitigated Negative Declaration (2008-37 IS) has been read and considered together with any comments received during the public review process; and, That based on the whole record including the Initial Study, there is no substantial evidence that the project will have a significant effect on the environment and that the Mitigated Negative Declaration reflects the City's independent judgment and analysis. RECOMMENDED FINDINGS FOR APPROVAL OF THE TENTATIVE PARCEL MAP 2008-37 IS, SV, LS, CUP — Gateway The proposed map is consistent with the National City General Plan, since the proposed Tots meet minimum standards with regard to size, street frontage and access, and since the parcel will facilitate a proposed commercial shopping center, an allowed use in the Major Mixed Use District (MXD-2) zone. The site is physically suitable for the proposed type of development, since the proposed commercial shopping center is consistent with other commercial uses in the corridor along the same section of State Route 54 and since there will be adequate access into, out of and within the site_ The site is physically suitable for the proposed density of development, since the large overall site area can accommodate the relatively small amount of commercial space proposed, and since the design is consistent with the City's Design Guidelines. The design of the subdivision or the proposed improvements are not likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat, since there is no natural habitat nor bodies of water on the site, and the site is surrounded by urban development. The design of the subdivision and the proposed/required improvements would not result in impacts to public services, since all necessary public services are available and will be provided. The design of the subdivision and the proposed/required improvements will not conflict with easements, acquired by the public at large, for access through or use of the property within the proposed subdivision, since no such easements are located on the site. The discharge of sewerage waste from the subdivision into the City of National City sewer system will not result in violation of existing requirements prescribed by the California Regional Quality Control Board pursuant to Division 7 (commencing with Section 13000) of the Water Code, as specified by Government Code Section 66474.6, since the design and implementation will be consistent with Best Management Practices and City standards. The design of the subdivision provides, to the extent feasible, for future passive and natural heating and cooling opportunities in the subdivision, based on consideration of local climate, topography, property configuration and other design and improvement requirements without requiring reduction in allowable density or lot coverage. RECOMMENDED FINDING FOR APPROVAL OF THE STREET VACATION 2008-37 IS, SV, LS, CUP — Gateway That neither D Avenue nor 32nd Street in the project area are identified as being in current or future need in the Circulation Element, the proposed street vacations would be consistent with the policies and goals of the General Plan and since the vacation will facilitate the project under review, which will contribute to overall economic health of the City. RECOMMENDED FINDINGS FOR APPROVAL OF THE VARIANCE FOR LESS THAN REQUIRED PARKING 2008-37 IS, SV, LS, CUP — Gateway The exception will not be detrimental to the public health, safety, welfare or be detrimental to the use of other properties in the vicinity, since separate commercial uses in the Major Mixed -Use District, Major Mixed -Use Corridor and Commercial Automotive zones would require a lesser parking standard that is able to be met, and since the overall project (in both cities) has at least 16% more parking spaces than are required. Granting of the exception is in accordance with the intent and purposes of the General Plan and with all specific plans or other plans of the City, since the General Plan encourages the expansion of retail space and new retail development within the City that increases sales tax revnues, which the requested exception facilitates, and since the overall project (in both cities) has at least 16% more parking spaces than are required. RECOMMENDED FINDINGS FOR APPROVAL OF THE CONDITIONAL USE PERMIT 2008-37 IS, SV, LS, CUP — Gateway That the site for the proposed use is adequate in size and shape, since the 25.7- acre site can accommodate the development of 165,000 square feet of commercial space with adequate access, parking and circulation for the shopping center. That the site has sufficient access to streets and highways that are adequate in width and pavement type to carry the volume and type of traffic generated by the proposed use, since National City Blvd. (an arterial street), D Avenue (a collector street) and State Route 54 (a freeway) have sufficient capacity to adequately handle the approximately 15,720 average daily trips (ADT) generated by the project without a significant decrease in their operating levels of service, with mitigation measures implemented as stated in the Mitigation Monitoring & Reporting Program_ That the proposed use will not have an adverse effect upon adjacent or abutting properties, since there are no viewsheds in the vicinity of the project area, the project meets all City Design Guidelines, and since the project will maintain appropriate separation from neighboring residential uses and will not divide an existing neighborhood. 4. That the proposed use is deemed essential and desirable to the public convenience and welfare, since the project will encourage retail development that increases sales tax revenues generated in the City, and promote the development and use of a currently underutilized property. RECOMMENDED FINDINGS FOR APPROVAL OF THE MINOR USE PERMIT 2008-37 IS, SV, LS, CUP — Gateway That the proposed use is allowed within the applicable zoning district and complies with all other applicable provisions of this Land Use Code, since eating places with a drive -through are specifically allowed in the Commercial Automotive zone with a Minor Use Permit per Land Use Code section 18.22.020. The proposed use is consistent with the General Plan and any applicable specific plan, since the use is typically allowed in all commercial and mixed -use zones throughout the City. The design, location, size, and operating characteristics of the proposed activity would be compatible with the existing and future land uses in the vicinity, since the bank would be part of a major commercial shopping center and is located along a major commercial thoroughfare. The site 'is physically suitable for., the type, density, and intensity of use being proposed, including access, utilities, and the absence of physical constraints, since the half -acre site can accommodate the development of a 7,500 square feet of commercial space with adequate access, parking and circulation within the proposed shopping center. 5 Granting the permit would not constitute a nuisance or be injurious or detrimental to the public interest, health, safety, convenience, or welfare, or materially injurious to persons, property, or improvements in the vicinity and zoning district in which the property is located, since a bank is a typically allowed use in all commercial and mixed -use zones, and since permits for the use will require compliance with all applicable zoning and building codes. BE IT FURTHER RESOLVED that based on the findings herein before stated, the Planning Commission hereby makes a finding of no significant impact and recommends approval of a Street Vacation, Parcel Map, and Conditional Use Permit for 9 construction of a 165,000 square -foot commercial center, located at the northeast corner of National City Blvd. and State Route, subject to the following conditions: General 1. This Street Vacation, Tentative Parcel Map and Conditional Use Permit allows for the construction of 128,587 square feet of commercial floor area, including a drive - through fast food restaurant, as part of the 165,000 square -foot Gateway shopping center located on seven new parcels. Except as required by Conditions of Approval, all plans submitted for permits associated with the project shall conform to Exhibits B and C, Case File No. 2008-37 IS, SV, LS, CUP, dated 9/14/2010. 2. Within four (4) days of approval, pursuant to Fish and Game Code 711.4 and the California Code of Regulations, Title 14, Section 753.5, the applicant shall pay all necessary environmental filing fees for the San Diego County Clerk. Checks shall be made payable to the County Clerk and submitted to the National City Planning Division. Approval of the tentative map expires two (2) years after adoption of the resolution of approval at 6:00 p.m. unless prior to that date a request for a time extension not exceeding three (3) years has been filed as provided by National City Municipal Code §17.04.070. The Conditional Use Permit shall be valid for the life of the tentative map approval. Before the Street Vacation, Tentative Parcel Map and Conditional Use Permit shall become effective, the applicant and the property owner both shall sign and have notarized an Acceptance Form, provided by the Planning 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 Street Vacation, Tentative Parcel Map and 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 Street Vacation, Tentative Parcel Map and 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 5 All plans submitted for construction shall comply with the 2010 editions of the California Building, Electrical, Mechanical, Plumbing, Energy, Fire, Residential and Green Codes. 6. Television cable companies shall be notified a minimum of 48 hours prior to filling of cable trenches. Engineering 7. A Hydrology study is required for the new project. The study should consider the proposed project area to the closest municipal storm drain collection point. The study should consider the adequacy of the existing storm drain system to convey any additional run off. All Hydrology study findings and recommendations are part of Engineering Division requirements. io 8. A drainage plan shall be submitted showing all of the proposed and existing on - site and off -site improvements. The plan shall be prepared by a Registered Civil Engineer, or other qualified professional, and shall be in accordance with the City requirements. The plan shall show all existing drainage facilities on -site and off -site including those in the adjacent State Highway, how drainage will be treated and all existing and proposed structures used to transport the drainage to the point where it leaves public drainage system. The Priority Project Applicability checklist for the National Pollutant Discharge Elimination System (NPDES) is required to be completed and submitted to the Engineering Division. The checklist will be required when a project site is submitted for review of the City Departments. The checklist is available at the Engineering Division. If it is determined that the project is subject to the "Priority Project Permanent Storm Water BMP Requirements" and the City of National City Storm Water Best Management Practices of the Jurisdictional Urban Runoff Management Program (JURMP) approved Standard Urban Storm Water Mitigation Plan (SUSMP) documentation will be required prior to issuance of an applicable engineering permit. The SUSMP shall be prepared by a Registered Civil Engineer. 10. The Best Management Practices (BMPs) for the maintenance of the proposed construction shall be undertaken in accordance with the National Pollutant Discharge Elimination System (NPDES) regulations which may require a Storm Water Pollution Prevention Plan (SWPPP) for the project. An approved SWPPP will be required prior to issuing of a construction permit. 11. All surface run-off shall be treated with an approved Standard Urban Runoff Mitigation Plan (SUSMP) Best Management Practice (BMP) for all Priority SUSMP projects. No runoff will be permitted to flow over the sidewalk. Adjacent properties shall be protected from surface run-off resulting from this development. 12. The property owner and/or landlord shall be responsible for the maintenance, repair, or reconstruction of all irrigation and landscaping improvements installed within the public right-of-way. Sprinkler heads shall be adjusted so as to prevent overspray upon the public sidewalk or the street. The proposed sprinkler heads shall be installed behind the sidewalk, and the irrigation mainline upon private property only, as required by the City. The property owner and/or landlord shall remove and relocate all irrigation items from the public right-of-way at no cost to the City, and within a reasonable time frame upon a written notification by the City Engineer. 13. Metallic identification tape shall be placed between the bottom layer of the finished surface and the top of all irrigation lines in the public right-of-way. 14. A grading and drainage plan shall be submitted showing all of the proposed and existing on -site and off -site improvements. The plan shall be prepared in accordance with the City's standard requirements by a Registered Civil Engineer. All necessary measures for prevention of storm water pollution and hazardous material run-off to the public storm drain system from the proposed parking lot or development shall be implemented with the design of the grading. This shall include the provision of such devices as storm drain interceptors, clarifiers, or filters. Best Management Practices for the maintenance of the parking lot, including sampling, monitoring, and cleaning of private catch basins 11 and storm drains, shall be undertaken in accordance with the National Pollution Discharge Elimination System (NPDES) regulations. A private storm water treatment maintenance agreement shall be signed and recorded. A checklist for preparation of the grading plan/drainage plan is available at the Engineering Division. 15. The existing and proposed curb inlets on property shall be provided with a "No D';mping" signage in accordance with the NPDES program. 16. A National Pollutant Discharge Elimination System (NPDES) permit is required for discharges of storm water runoff associated with construction greater than 1 acre activity where clearing, grading, and excavation results in a land disturbance. A construction storm water permit shall be obtained from the Regional Water Quality Control Board. A copy of shall be given to the City of National City Engineering Division prior to any work beginning on the project. 17. A Notice of Intent (NO1) shall be filed with the Regional Water Quality Control Board (RWQCB). 18. Industrial facilities shall comply with NPDES regulations. A Storm Water Pollution Prevention plan shall be prepared and submitted to the Engineering Division for approval. The facility shall satisfy the sampling and monitoring requirements of the NPDES regulations. 19. A sewer permit will be/may be required. The method of sewage collection and disposal shall be shown on the grading/drainage plan. Any new sewer lateral in the City right-of-way shall be 6-inch in size with a clean out. A sewer stamp "S" shall be provided on the curb to mark the location of the lateral. 20. Separate street and sewer plans prepared by Registered Civil Engineer, shall be submitted showing all of the existing and proposed improvements. The plans shall be in accordance with City requirements. 21. A geotechnical engineering report shall be submitted for the Engineering Division's review, after Planning Commission approval. The report shall address the stability of all of the existing and proposed slopes on the property. It shall also address the adequacy of the building pads, the criteria for any new retaining wall design, the maximum allowable soil bearing pressure and the required pavement structural sections for the proposed streets, the parking areas, and the driveways. As a minimum, the parking lot pavement sections shall be 2 inch A.C. over 4-inch Class I1 aggregate base. The street pavement sections shall be in accordance with National City modified Standard Drawing G- 34. All soils report findings and recommendations shall be part of the Engineering Division requirements. 22. A 15-foot wide sewer easement shall be granted to the City along that portion of D Avenue being vacated. 23. Street right-of-way, specifically that portion of land to be used to construct a 44- foot radius cul-de-sac, and 20 feet along the property frontage of Lots 4 and 5 to be dedicated as 31 st Street to the City. 24. The deteriorated portions of the existing National City Blvd D Avenue and F Avenue street improvements along the property frontages shall be removed and replaced. 12 25. The existing pedestrian ramps on National City Blvd along the property frontages shall be removed and replaced with standard ramps that comply with A.U.A. requirements and the Regional Standard Drawings. 26 Street pavement repair will be required. The work shall be as follows: Construction of cul-de-sac on D Avenue, and one and one-half in asphalt cap over F Avenue adjacent to the property. 27. The existing street improvements along the property frontage(s) shall be kept free from weed growth by the use of special weed killers, or other approved methods_ 28. All existing survey monuments, including any benchmark, within the boundaries of the project shall be shown on the plans. If disturbed, a licensed land surveyor or civil engineer shall be shown on the plans. If disturbed, a licensed land surveyor or civil engineer shall restore them after completion of the work_ A Corner Record shall be filed with the County of San Diego Recorder. A copy of the documents filed shall be given to the City of National City Engineering Division as soon as filed. 29. The driveway on National City Blvd. shall have pedestrian ramps and an alley apron approach. Plans for construction of the alley apron shall be in conformance with Regional Standard Drawing G-17 or another design approved by the Engineering Division. 30. A permit shall be obtained from the Engineering Division for all improvement work within the public right-of-way, and any grading construction on private property. 31. All missing street improvements along the property frontages shall be constructed. Abandoned driveway aprons shall be replaced with curb, gutter, and sidewalks. Street improvements shall be in accordance with the City Standards. 32. A title report shall be submitted to the Engineering Division, after the Planning Commission approval, for review of all existing easements and the ownership at the property. 33. NO PARKING zone(s) (red curbing) shall be provided along the property frontage(s) at the following location(s): cul-de-sac from return to return shall be red curbed. 34. Separate traffic signal plans will be required. The plans shall show the following: National City Blvd. at 33`d Street and modifications plans at 30th Street and D Avenue. 35. All electrical, telephone and similar distribution service wires for the new structure(s) shall be placed underground. 36. A cost estimate for all of the proposed grading, drainage, street improvements, landscaping and retaining wall work shall be submitted with the plans_ A performance bond equal to the approved cost estimate shall be posted. Three percent (3%) of the estimated cost shall also be deposited with the City as an initial cost for plan checking and inspection services at the time the plans are submitted. The deposit is subject to adjustment according to actual worked hours and consultant services. 13 37. The final map shall meet all of the requirements of the Subdivision Map Act, and the City of National City Municipal Codes including certification, acknowledgement, complete boundary information and monumentation. 38. Separate water and sewer laterals shall be provided to each lot/parcel. 39. The developer shall bond for the monumentation, the public improvements and the on -site grading, drainage, landscaping, and other improvements through an agreement with the City prior to the approval of the final map. 40. The proposed street vacation at D Avenue shall be approved by the City Council prior to the final map approval (See Planning Division). 41. All utilities distribution facilities within the boundaries of the subdivision, and within the half street abutting the new subdivision, shall be placed underground. 42. The final map shall be recorded prior to issuance of any building permit. 43. All new property line survey monuments shall be set on private property, unless otherwise approved_ 44. The final map shall use the California Coordinate System for its "Basis of Bearings" and express all measured and calculated bearings in terms of the system_ The angle of grid divergence from a true meridian and the north point shall appear on the map. Two measured ties from the boundary of the property to existing horizontal control stations shall be shown. Fire 45_ The project shall be in compliance with the current editions of the NFPA, CFC 2010 edition, title 19 and local City of National City Municipal Codes. 46. F Avenue shall be used as emergency vehicular access only. A gate shall be installed to restrict entrance for only emergency vehicle traffic into the south east corner of the shopping center. The gate shall be equipped with a Knox box and emergency strobes so as to provide emergency vehicle access and egress. A Knox key wwitch shall be required in conjunction with strobe for emergency access and shall be placed at front of property. Please contact the National City Fire Department for exact field location. 47. The required width of emergency fire apparatus access roads shall not be obstructed in any manner, including parking of vehicles. All access roads shall be no less than 20 feet wide, no less than 14 feet high and shall have an all- weather road with the ability to support 75,000 pounds or greater. Where a fire hydrant is located on a fire apparatus road, the minimum road width shall be 26 feet. The roadway shall maintain a 28-foot radius for emergency vehicle turns. Please see the Engineering Division for exact criteria. 48. Fire access roads in excess of 150 feet to public street shall be provided with width not apply if exclusive Fire Dept. access activated gate, etc). the furthest end of the property from a and turnaround provisions. This shalt is provided (e.g., Knox gate, strobe- 49. Buildings greater than 30 feet in height or buildings with portions of or facilities exceeding 30 feet in height above the ground shall be provided with approved fire apparatus access roads. Overhead utility and power lines shall not be located within the aerial fire apparatus access roadway. 14 50. During construction the project shall strictly follow Chapter 14 of the CFC edition "Fire Safety During Construction Alteration or Demolition of a Building". Planning 51. Prior to recordation of the Final Map, the applicant shall submit a Grant Deed, Title Report and/or agreement authorizing control of all property associated with this application. 52. The trash enclosures shall have an exterior material that is finished and painted to match the proposed buildings and shall also have a roof to the satisfaction of the Development Services Director. 53. A landscape and below -grade irrigation plan shall be submitted in conformance with Chapter 44 — Landscaping. The plan shall reflect the approved landscape concept plan, including plant species, number, and plant sizes, all fencing and gates, parking lot and walkway lighting, and enhanced paving. The plan shall also show landscaping on the west side of Building A consistent with the requirements of condition number 61. The plans shall be submitted with the building permits for review and approval by the Planning Division. 54. All requirements for this project as stated in the letter from Sweetwater Authority, dated October 29, 2008 shall be provided and/or incorporated into building plans. 55_ All delivery vehicles exceeding a maximum gross weight of 6,000 lbs. (3 tons) are required to use designated truck routes. 56. All proposed signs in excess of 10 feet shall be equipped with a raptor perch deterrent device. 57. The digital advertising display located on sign B shall shall be operated in such as way as to reduce brightness levels of the display during both daytime and nighttime hours. The display shall include a dimming feature that shall be monitored and adjusted appropriately to reduce impacts to sensitive receptors, as necessary. The sign shall meet all requirements of Chapter 18.47 — Signs and Outdoor Advertising Displays. Caltrans approval shall be obtained (if necessary) prior to installation. 58. The drive -through restaurant (Building A) shall conform to all requirements of Land Use Code section 18.41.020 (Non Residential Site Planning Standards) — subsection C (Drive -Through Businesses). Plans submitted for building permits shall show proof of conformity. 59. All requisite permits shall be obtained from Caltrans for all work occurring within the Caltrans right-of-way. 60. All areas where pedestrian walkway and vehicle travel ways intersect shall be demarcated by contrasting hardscsape, consistent with the Pedestrian Circulation Plan (sheet A.1.1 of Exhibit C). Pedestrian circulation improvements shall include demarcated path of travel (painted or otherwise) from F Avenue to the project site. 61. All rooftop equipment shall be painted to match the surface upon which is mounted and shall be screened from adjacent views consistent with Land Use Code requirements. 62. No grading permit involving the area of D Avenue shall be issued until SDG&E has issued a "Letter of Permission for Grading" due to existing 10-inch and 20-inch high- 15 pressure gas transmission lines in the area. All easements as required by SDG&E shall be granted or reserved prior to vacation of D Avenue. 63. All seasonal display areas utilizing required parking spaces shall be in conformance with the Outdoor Display plan (sheet A-9 of Exhibit C), and shall be limited to March 15th through July 4`h, and September 1st through December 24t 64. The developer shall coordinate with the Metropolitan Transit System (MTS) in pursuit of the relocation of the two Route 932 bus stops on the southeast and southwest corners of the National City Blvd. / West 33`d St. intersection to the southeast and southwest corners of said intersection. 65. Benches and trash receptacles shall be provided for the two bus stops located on National City Blvd. and W. 33rd Street, and the bus stop located at D Avenue and E. 30th St. if not already provided. 66. All mitigation measures as specified in the Mitigation Monitoring, and Reporting Program (Appendix Z of the Mitigated Negative Declaration) adopted as part of this approval referring to site lighting, habitat impacts, cultural resource impacts, soils and grading, hazardous materials, hydrology, noise, and traffic shall be incorporated herein by reference as conditions of approval as Exhibit A. BE IT FURTHER RESOLVED that copies of this Resolution be transmitted forthwith to the applicant and to the City Council_ CERTIFICATION: This certifies that the Resolution was adopted by the Planning Commission at their meeting of October 17, 2011, by the following vote: AYES: Flores, Reynolds, Pruitt, Baca, Farias NAYS: ABSENT: Alvarado, Delapaz ABSTAIN: CHAIRMAN 16 PLANNING RESUBMITTAL 4 SEPTEMBER 11, 2010 SHEET INDEX TS TIf 99(32 OAL PPe11MU+4355 033u,c AND DM, P., PPEU0,9AA. 09AONc AND DEEP. PUN 04Cn120 IUPA, 4'Io4In8 Suw,rµ4. weRA.L ERE Plums PElf e'S#A)`I JRC.AlICN Pi . 3.2 HREDEPAPI31021 ACME. v R3..0 uE3'Anal 0 n, e x ' CU.DR.G 33EY35.51 0 A I na 3031,D..30333.71.1 3-3 306[ BAII P353,0 33:; c.l 313IJI6G G 515E S0C1103,3 1,8 e15110MV t N.il.t u0F a I,ryES ,Ca AU 3,53, D IIDOCP l ANJ1UrE 3N0504PE fDn0EPI333N .1 :ANDS.. cn,RoI I'Ipry CONSTRUCTION TYPES PADS 3,A,C 6i RDA. 0u.36030 SPJ) VE 2/YCY:OO11333e Co::OP no.,I IP[ vrr, CAVE OR DE., PROJECT DA-A eI a 390 ARe4INCI Intl CMU W ;atilt CAFCC r CENTER PAD EI0; RC.C'. EEO, E • CY P>D=.C. RV.NL0•hC 31050. c5 193,S6 0P 515. at,. .92,505E;156: ACC 577,530srp2.1130 5w101,33 A, B. c,c D33115 N.55 0, E, P, P.10. :31,Bn1 s 11.300 I.50: 12 so: , In" 31 30005E 33, 51 10e'4 e'3C.31A 9;1050, UR I 5I3 00Al13 IA 0l1 00CI 003 31Au11373. 0rc. As.03.0 SI n 35A03 3G; ! 0001 .335,333,3 0501 ON SIZE 00901i83E Yn YIn J 51, 4er, r 10I4 FAR(INC PROYIG 5 ACCFe51E[[ PAIN NC REGUIPnI 3255 0i IDEMI A0C(551010 PARUN3 PRO.n[o NAIIONAI )T1 PAM,G 30M,3R3 3,13590 ARA IN NMIDN4 3113 A, 5APNING 31O11Re0 0 4 PAP2fn1: PROY1.EC t'l,.lA 51533 PAP.. 305.33R5 trirED.0 AREA 03119A513, 9 I0I4 PAM. r.11:> I oral W PARkU PA051090 PROJECT TEAM OEYELDPER: MARK ',MOW SUDBEPR! FROPERPES, IN:. .a95 MOREHOUSE DRIVE 260 RAN WOO, CA 91121 IB32, 536.2500 I.lur:'. 531 .5009 ARCHRfCT ANDY 33EYE%Son ANOREW Xllll 51EVE153C,Y ARDnI3EC23 :303 MJRf8O0S6 CR. JE Si. MC SAN D,FGO CA9i1'51 (359) 250.7153 130m; 333-3009 C15113 ENCANE9R, 0930.ANG TANG 6+GINEE6NG CCM:An! O110 INNJYAIIOPI WAR CARLSBAD, CA 620O9 1060) 692-1550 I.(I60) 69..1, G9011034I:9. E53G1.5. ROOM ..03.1353. 6900 P.30CF323 DPJ.'; 50301000.CA921]I INifi':. }aD00 1,e,ti :SIt6 iG .3n05UPE Ap,C415EC• SCA W DI DESIGN ORO:IP 2333 EOUR2N AVENUE 3/.3 JIEGO CA 92101 lE I RY 233[ 1 A62 1,1019) 23.173, EN o1RONMEN!A[ MN. TAW DUD:N 6_S3NIRO 51R5tE E3U5311A3. (A YIO'la :730) 479.3::2 GI FN 5_1 WD1 REN co51.w'E A333 A:WAFD N0 SCCAE VICINITY MAP :I, I: II:,:N:::,. RE131: J.9 Gateway at the Mile National City % Chula Vista, California NOR, - y �7f rl'P r 3ri,ttilt P.ay9Af I or�f�FAF 6�5�6 .e 'p...3 �f a�ldl'6L6f1 PROJECT SUMMARY 51'E SUMMARY sire ARIA CHULA VISA N4TICJNAL Lr, 0 Bu1L3IN9 SVMMARY R.11001NG AREA NOT INC. GARDEN CFNTER) GARDEN CEN'ER °AD A . NC PAD - PAD -lY RETAIL D • CV RE'AI', E• CV °AD F-CV PE -AIL G • I6C KIOSK 1,119,556 53 125.71 SC) TR2,,6 SF 112 A0 AC) 527.SLO SF 11 2 I', AC) 223.992 SF 31,LS, SF St h 3770 SF 4,200 SF 7',SCO 5F 5,300 5F 320,387 SF 223 5F PARKING SUMMARY •014L °ARKING PRONDeD I OBS 5TA LS l4 G; ICGvl ACCE555LE PARKING REQUIRED 12% OF TOTAII 22 STALLS ACCE551 B.E PARKJNG PNO'+1DED 31 STALLS NATIONAL CITY PARKING SUMMARY BUILDING AREA IN NATONAL CI'" 126,597 S° IOTA. PARKING REQUIRED 515 STALLS (n.0!1 00S) IOTA, PARKING PROVIDED 6G4 STALLS I<].'I 500 CHULA VISTA PARKING SUMMARY BUILDING AREA IN CHULA VISTA R5 i95 SF TOTAL PARKJNG REQUIRED <T7 STALLS (5 (1; 0001 TOTAL'LARKING PROVIDED 4'c S"A.. 5 -L r,l 11u J ' 1 os`" q —,.i IT n 1`R"1 7-- \\- - 7t. ~-1—Ln i ' ff:----- .--::::::-------7-1'-:---------------'-"--------------------,------------17-'------' ---:-------:- -=-5--T--'-'5---:::------' - --'1 :7-- , PROJECT PHASING PHASE 1 PHASE 2 IL SITE PLAN LESEVD Pr-A.I v:, LINE FIRE tinJRANI BUILDINGS A, e, C, G BUILDINGS D. E, F, KIOSK ,5,4 • Z.i I III L� GAG .g. PI; .,t A.TERN ATIVE =AD AI TER5,4 IIVL V.T LPI-:'E-THRL EXTERIOR LIGHTING CONCEPTS ppmw 015086BRlRAEc0r1 lavn Arrow-, r•Ar tat000to,A, tycoon: co J.11 . 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ELEVATION LEGEND A-4 Gateway at the Mile National City / Chula Vista, California Sadilerriy .21.'t '/omiiciit tom........ U4TERIALS I CONC PAHf,.➢AWS', OROOnE C. CONC nsnEL LP L i F S - CSLCR *o us rcM wi>DJ FACEDCMJ i.NOewSeLc K saoE SnOC4s LOC SW,R<o n ncH a CEwS9w,'..NDS,. LOn nuc muHE _�. -RAsn CwNRaeicR 'CNCE 6 G�R-E r; yLAr_n sin,. COATED MCa' .w awJRm nmsH uDEN Cwi_ER .i. RDE so!u(:rrOE ..: R14riSLJD'1+ n0i1•CnR9ONArf N<NEL NES ins SHED OnSRnC AO DOC,. NFG 5 4NGJJiO'✓:.YTTE F. 000L & ME FRA --, COLOR TJ1.1ACC N, 0LD..: onn, CR ADS Ww: [XI00 ON S!GNRGE tbY lT' H0L S) SELL SIR, CRS PNNIED - n11 O'J SisnrcR] vMC2 _I"1 Mn COONS=on e curtfR 1001,`EC EI FS rwn0R - CORN'CE `^J FHC--INI EFEO MCC, CC,N PRE•=NJ_0ED UETAL COP,C OR i SSCrs COLO. TO w0CF W 0DJ WALL. L T1 tl L.Avo ✓a.NTES wi CS+ia cCLLDW COLCRS .0,F5fn-SEOE L•sci,S. VA,nn CC crv'SO LC OLn`EUJN nfG SI 4+OAROBft1GFi A10C LCE Al COLO%'.S r, 11 00 ri. MI�n1N( M_Oat,„ Ti3iiC:ri4:4iiGX 'f�gyp•••z•� �.�BAB ..�1i ■ SCALE 1'=2C'-C' WEST ELEVATION EAST ELEVATION NORTH ELEVATION SOUTH ELEVATION Dal, JONE IN. 20': <L 40. 80' 00 00 LON,nnnL 5101I;Y A-6 KEY PLAN NATK}NAt :CfTY sdE&Y 9'ge RIVE3i NEIL3D, 6 ,F6 r.00q VIEW - 4 VIEW - 3 VIEW - 2 A-7 • 44 C, -.'41;1,1:;141,:illi..''e.'ss'ix'Ais'ftesi'ks'1"%.';‘,,',4*.,istst'A;..0..C''s•,41e0ff'ilk.ti'.,410.....‘4.J.f.'ir,f...10,.'‘0,'frios',,f4'7,,,t-ft'^..1,,,,,,,,,,k ' , mISIDEN . 51, -', SPL;HT Lr,IL g PA r NOTE: ALL SPECIFIED ELEVATIONS ARE TAKEN FROM MEAN SEA LEVEL. : 1 g • 1 . 1 : 1 • •14.13 f,111 11114 ,n1.0,01.11 A 'MI .704 5.54 BUILDING E SIGHT LINE STUDIES Gateway at the Mile Chsila Vista / National City, California KEY PLAN A-8 Sailberly Dar:4watt ATONAL C/ I�I I'i �L .II!I!I I-:E RAC, tty r!Y I I CSC 11 _I I : _ 11 III i ) 'a —�rJi r OUTDOOR DISPLAY_ �I u'11 i III ,I Ill,Hi COI 11 11'Ir1 • A'AIOMALI C/hV1II 'IL CHL/LA VISTA by I n n il ii4w e'l l "? F. sL�"_' "_ I sG h ,", i I LEFHONE N I µ ,l.l^fli hR EQ1:OAF:hi a 1lrl 1,4111-.HLI NYLi1 A • T E.ECTRICAL 1.029 KVA GAS 4 BOC M8H TELEPHONE (2)' 00 PAR CABLES L w s e c c c c o o c c H 'I II qIL!, i ++Nrr nt.[f p5c 1a . n1mM �lpvanC hJ eEE e..n.-Ir.. cnnunhons 1 fE RAO,T F �01'CPi Cry u, rf vpm Mv� a '..I:H µL rt5 Cf0E5 Ma„1.vl'E.S .,.n ticcnno. r.. A' BEJ i 111E a i Ena.0Er .. I -ms ae.am5-a.mE ANCES a .u1El NeNSIONS E1-'w°r ',WEL, iruf J . ANN., CON^kr, Pi Prp., 0 0 LU1 NNAN,,,N.44 ,";:z• y LANDMAO,,,,t9 .4.K.Albm r". VjEll LSI MAU AND CA...LAM,. ua ' I L'.W CRo•ung, , I ! it • MI, ..,_11.@ , M...X7116: 1 43 .W. .-'o W,E,4 '1E,Y PE.P14,,ER Pu Nrri... eitkk; et . ' 441.. & • tar .:u 71...,,‘10Weldiatilli t.• irdt, \ ..... ,,,40.1.-_,Alt 61-...TTAI "0::t40;i44.1 ftriimINN. ] i ] -7-1 IN .iel II:!4 A ,,.......ti. r. ....-.=-71-2 40 11:-Willifilri!atil=r2.41.........=0" LANDSCAPE CONCEPT PLAN THE GATEWAY CHULA VISTA N NATIONAL :ITV, CALIFORNIA 9 t. ' ' t , z L Th I I Ji .A1 • IT 0.11 Of ifIEE,, Tr,- VERT., 4,01 Sp,AND F,Ct..,,,of THE LANDSCAPE CONCEPT PLAN THE GATEWAY CHULA VISTA I NA-ICNAL CITY, CALIFORNIA 0 ‘/.GETATED 610SV,LE 0 PLA,71,0 PETPINING CHAIN LU CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: November 1, 2011 vM TITLE: Notice of Decision — Planning Commission approval of a Conditional Use Permit for the construction of a food mart with accessory beer and wine sales at an existing Shell gas station at 1601 East 8th Street. (Applicant Vintners Distribution, Inc.) (Case File 2011-03 CUP) AGENDA ITEM NO. 14 PREPARED BY: Martin Reeder DEPARTMENT: Developmentcs/Planning. PHONE: 336-4313 APPROVED BY• EXPLANATION: The applicant is proposing to construct a 1,030 square -foot food mart as part of a renovation of the gas station. Alcohol would be stored in coolers located along the back wall of the food mart. The coolers make up about 8% of the overall sales area. Although the gas station is open 24 hours a day, beer and wine is only proposed to be sold from 8 a.m. to 12 a.m.; the doors are locked at midnight. Other improvements include upgraded landscaping, a new trash enclosure, perimeter fencing, and the closure of a driveway on 8th Street to provide additional parking. Planning Commission conducted a public hearing on October 17, 2011. No concerns were noted from area residents. Commissioners asked questions regarding the business, noticing of the community meeting, other alcohol outlets in the area, and department comments. The Commission voted to approve the CUP based on required findings and subject to conditions of approval. FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: APPROVED: ENVIRONMENTAL REVIEW: Categorically Exempt pursuant to Class 1 Section 15332 (In -fill development projects) ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Staff concurs with the decision of the Planning Commission and recommends that the Notice of Decision be filed. BOARD / COMMISSION RECOMMENDATION: The Planning Commission approved the Conditional Use Permit. Ayes: Baca, Farias, Flores, Pruitt, Reynolds Absent: Alvarado, DeLaPaz ATTACHMENTS: Location Map Planning Commission Staff Report 3. Resolution No. 25-2011 4. Reduced Plans 01 CO RS-1 ter, c 1 co rn 624 CST 01 01 w 714 720 64 MXC-2 0 824 844 619 East 8th St 835 624 630 p 640 CD RM-1 rn W N 0) 635 639-655 702 RM-3 Subject Parcel — — — Lone Boundary I f I Feet 0 75 150 300 APN: -37-112-10 Planning Commission Location Map 2011-03 CUP 1 10.3.11 Title: Item no. 4 October 17, 2011 CITY OF NATIONAL CITY - DEVELOPMENT SERVICES DEPARTMENT 1243 NATIONAL CITY BIVD., NATIONAL CITY, CA 91950 PLANNING COMMISSION STAFF REPORT PUBLIC HEARING — CONDITIONAL USE PERMIT FOR THE CONSTRUCTION OF A FOOD MART WITH ACCESSORY BEER AND WINE SALES AT AN EXISTING GAS STA-T ION AT 1601 EAST 8TH STREET. Case File No.: 2011-03 CUP Location: Shell Service Station at the northeast corner of 8th and Palm. Assessor's Parcel No.: 557-112-10 Staff report by: Assistant Planner Martin Reeder, AICP Applicant/Property owner: Vintners Dist., Inc. Combined General Plan/ Zoning designation: Major Mixed -Use Corridor (MXC-2) Parcel size: 0.53 Acres Adjacent land use/zoning: North: Single -Family Residences / Multi -Unit Residential (RM-1) East: Power Tires / Major Mixed -Use Corridor (MXC-2) South: Carnival Market across 8`h Street / Major Mixed -Use Corridor (MXC-2) West: Commercial across Palm Avenue / Major Mixed -Use Corridor (MXC-2) Environmental review: Exempt pursuant to CEQA Section 15332 (In -fill development projects) BACKGROUND Site characteristics The subject property is located on the northeast corner of East 8th Street and Palm Avenue in the Major Mixed -Use Corridor (MXC-2) zone The 23,087 square -foot parcel has 150 feet of frontage on 8th Street and 160 feet on Palm Avenue. There are four entrances to the property, two each from both 8th and Palm_ The lot is developed with a Shell gas station, which includes a small cashier kiosk, a car wash and an office. The station currently operates 24 hours a day. Proposed use The applicant is proposing to renovate the gas station property, including the addition of a 1,030 square -foot food mart/convenience store, which would replace the existing kiosk_ The alcohol would be stored in coolers located along the back wall of the convenience store. The coolers make up about 8% of the overall sales area. The applicant originally asked for alcohol sales hours of 6 a.m. and 1 a.m. seven days a week, but changed the hours to 8 a.m. and 12 a.m. at the request of the Institute of Public Strategies_ Improvements are also proposed for the other structures on site, including an upgrade of the carwash facade and canopy columns to match the color scheme of new convenience store. Other improvements include upgraded landscaping, a new trash enclosure and perimeter fencing. At the suggestion of staff, the applicant is also proposing to remove one of the driveways on 8`h Street (the one closest to Palm Avenue) and add four parking spaces. History This project was approved by Planning Commission in 2008, but the approval has since expired. The current application is identical to the previous project (2008-11 CUP). Analysis The current owner has been operating the Shell station at this location since February 1987 and desires to modernize the facility by adding a convenience store, offering a wider array of products to their customers, including beer and wine. The applicant proposes to continue operating 24 hours a day, seven days a week. Alcohol sales would be restricted to between 8 a.m. and 12 a.m. seven days a week. This will necessitate a control system to ensure no alcohol is sold after the prescribed sales hours. The applicant has stated that the doors would be locked at midnight and that no more alcohol would be sold. This is addressed on Condition number 14. Both the addition of the convenience store and the sale of beer and wine require a Conditional Use Permit (CUP). A gas station may have a sales display area with up to 216 cubic feet of non -automotive product; however, Chapter 18.30.190 of the Land Use 3 Code allows for a greater sales area of such products with an approved CUP. Likewise, Chapter 18.30.050 allows for off -sale beer and wine sales with an approved CUP_ Design/Landscaping The new convenience store would be connected to the existing car wash located on the east side of the property. Facade improvements to the car wash will be continuous with the new convenience store facade, giving the two buildings the appearance of one_ The architectural design utilizes multiple building materials, including different colored plaster finishes, block, and pop -out trim, providing architectural variation. The front elevation would have large glass windows providing for ample natural light in the new store. A central entry facade is provided that would include an identification sign for the store The gas pump canopy columns are proposed to have the same color scheme as the convenience store, as is the car wash. The canopy itself will remain yellow, per the branding requirements of Shell Oil. No information has been provided regarding rooftop mechanical equipment, which is required to be screened by the Land Use Code. A Condition of Approval has been added to ensure compliance with mechanical equipment screening requirements at the building permit stage. As previously mentioned, the project also includes upgraded landscaping and perimeter fencing. Landscape plans show street trees, shrubs and ground cover. The proposed landscaping would improve the appearance of the property resulting in improved water conservation, since the existing landscaping is primarily turf. New vinyl fencing is proposed along the north and east property lines, replacing deteriorating fencing along the rear of the property. A Condition of Approval has been added to show fencing details on building plans. Conditions also require a new trash enclosure door and cover, removal of a payphone enclosure (with no payphone), and screening of the vapor recovery system located on the embankment on the east side of the property. Parking There is no specific parking requirement for a gas station; however, retail use requires one space for each 250 square feet. In this case, that would be approximately four spaces. which would be provided. In order to accommodate these spaces, one of the four driveways would be removed. The westernmost driveway on 8th Street, closest to the intersection, would be closed to provide three of the four parking spaces, including one handicapped -accessible space. The accessible space would be the nearest space to the convenience store and would also have an accessible path of travel between the space and the store. A Conditional of Approval has been included requiring compliance with all handicapped accessibility standards (Condition No. 7(. Traffic Trip generation rates provided by the San Diego Association of Governments (SANDAG) for this type of facility (gas station with convenience store and carwash), are based on the number of fuel spaces (155 Average Daily Trips per pump). Since no new gas pumps are being added, no significant increase in the number of daily trips is expected. Combined with the fact that the most store customers would also be 4 purchasing fuel, the addition of the convenience store is not anticipated to have a significant effect on traffic in the area. Public Input Pursuant to Section 18.30.050 (C) of the land Use Code, a community meeting was held Monday September 12, 2011 at 5:00 p.m. at the Pizza Hut on Sweetwater Road. The applicant certified that all property owners and tenants within 660 feet of the property were notified by mail of the meeting. A sign -in sheet and meeting minutes have been provided (attached). According to the applicant, no interested parties attended. Alcoholic Beverage Control Per State Alcoholic Beverage Control (ABC) there are currently no off -sale licenses in this census tract (119.01) where a maximum of two (2) are recommended, although there is one on -sale location in the same census tract - Alotta's Cocktail Lounge at 419 Palm Avenue. The nearest off -sale licensed facilities are 7-11, at 8th and Highland, and Big Lots at 1420 Plaza Blvd., both of which are approximately a half mile away. Census tract 119.01 encompasses the area from 4th to 8th Streets, from Palm Avenue to Euclid Avenue, and the small area between Palm Avenue, 1-805, Division and 4th Streets (36 square blocks). ABC does not consider this census tract to be over -saturated with regard to alcohol sales outlets. There are some single-family residences in the nearby area — across Palm Avenue and on East 7th Street, behind the gas station — however, all these residences are uphill and away form the gas station. Combined with the existing commercial nature of the subject and surrounding properties, and of it's proximity to an arterial street (East 8th Street), it is unlikely that the addition of the convenience store would have a significant effect on the neighboring residential properties. Sales Area As previously mentioned, the applicant is proposing to utilize approximately 8' of their sales area for the display of alcoholic beverages. With 650 square feet of sales area, this would be a maximum of approximately 53 square feet. This number is based on the size of the coolers shown on plans; no other sales area is proposed. A Condition of Approval has been included limiting the sales area accordingly. City Department comments As of the writing of this report, no comments were received from the Police Department. Crime statistics indicate that the reporting area (Beat 21) had a 2009 crime rate of 109.7%, below the 120% considered to be a high crime area. The Fire Department provided comments based on Fire Code requirements. These requirements have been included as Conditions of Approval. 5 Institute for Public Strategies comments Comments were received from the Institute for Public Strategies (IPS). Recommendations were provided addressing the following: • 8 a.m_ to 12 a.m. alcohol sales hours (condition no. 16) • Alcohol sales training (condition no. 17) • No sales of beer or malt beverages in 22, 32, 40-oz or similar size containers (condition no. 18) • No alcohol products sold in less than six pack quantities • No excessive alcohol advertising targeting youth or holidays (condition no. 15) Four of these items have been included as conditions, as noted above. No change has been made regarding 3-packs. City Council recently adopted a policy that establishes standards for alcohol CUPs. As part of this policy, specific Conditions of Approval are required of all new CUPs. These conditions are included with this staff report as numbers 16 through 29. The policy is written such that only the City Council may waive or modify these conditions. Condition no. 19 allows no less than three -pack quantities of beer, something IPS is requesting to have removed or modified to allow no less than six packs of beer. Although only Council can waive or modify this condition, Planning Commission can, if they see fit, make a recommendation that Council modify the condition. Summary The overhaul of this property will have a positive impact on the business climate in the area. The upgrade of the business is consistent with General Plan policies emphasizing the rehabilitation and improvement of older buildings and businesses. The addition of alcohol sales would add to the viability of the business and, more importantly, be conditioned in such a way as to ensure responsible sales practices. In contrast to other non -conforming businesses in the area, this project will be subject to the most recent Conditions of Approval. 6 RECOMMENDATION Approve 2011-03 CUP subject to the conditions listed below, based on attached findings ATTACHMENTS 1. Recommended Findings for Approval/Denial 2. Recommended Conditions 3. Location Map 4. Census Tract Map and Police Beat Map 5_ Institute for Public Strategies comments 6. Community meeting advertisement and minutes 7. Public Hearing Notice (Sent to 443 property owners) 8. Notice of Exemption 9. Site Photos 10. Applicant's Plans (Exhibit A, Case File No. 2011-03 CUP, dated 1/26/2011) MARTIN REEDER MARYAM B Assistant Planner Development Services Director 7 RECOMMENDED FINDINGS FOR APPROVAL That the site for the proposed use is adequate in size and shape, since the addition of a 1,030 square -foot convenience store is at an existing developed service station site that would continue to maintain adequate parking and circulation areas and that the sales area for beer and wine will be no more than 8 percent, or 53 square feet, of the available sales area of the proposed convenience store. That the site has sufficient access to streets and highways that are adequate in width and pavement type to carry the volume and type of traffic generated by the proposed use, since the addition of a convenience store with accessory alcohol sales is not expected to result in an appreciable increase in traffic. That the proposed use will not have an adverse effect upon adjacent or abutting properties, since the gas station is located in a developed commercial area, easily accessed by an adjacent arterial street. Also, conditions of approval controlling the sale of beer and wine will reduce any potential for adverse effects. 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 mixed -use zone. 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. RECOMMENDED FINDING FOR DENIAL 1. That public convenience and necessity is not served by the proposed use of the property for the retail sales of alcoholic beverages pursuant to law. 8 RECOMMENDED CONDITIONS OF APPROVAL General 1 This Conditional Use Permit authorizes the construction of a 1,030 square -foot convenience store and for the sale of beer and wine for off -site consumption at the Shell Service Station at 1601 East 8th 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. 2011-03 CUP, dated 1/26/2011. 2. Within four (4) days of approval, pursuant to Fish and Game Code 711.4 and the California Code of Regulations, Title 14, Section 753.5, the applicant shall pay all necessary environmental filing fees for the San Diego County Clerk. Checks shall be made payable to the County Clerk and submitted to the National City Planning 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. 4. 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. 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 both shall sign and have notarized an Acceptance Form, provided by the Planning Division, acknowledging and accepting all conditions imposed upon the approval of this permit. Failure to return the signed and notarized Acceptance Form within 30 days of its receipt shall automatically terminate the 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. Fire 8. Plans submitted for construction shall comply with the 2010 edition of the California Fire Code and the 2010 edition of NFPA. All plans shall be directly submitted to the National City Fire Department through permit and payment. 9 9. Per NFPA 13 Chapter 7 Section 7.3.2.4 Supervision, sprinkler piping and fire detection devices shall be automatically supervised where more than 20 sprinklers are on the system. A fire alarm system required. Planning 10.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 issuance of a building permit_ The landscape plan shall reflect the use of drought tolerant planting and water conserving irrigation devices. Landscape and irrigation plans shall be consistent with Chapter 18.44 — Landscaping of the Land Use Code. 11. Building plans shall show details for hardscape on site, including parking lot striping; details for proposed vinyl fencing; removal of the existing payphone enclosure and screening for the vapor recovery system located on the east side of the lot. 12. A new door and cover shall be provided for the existing trash enclosure. The finish of the trash enclosure shall be painted to match other buildings on site. 13. Any proposed rooftop mechanical equipment shall be screened in compliance with the Land Use Code Section 18.42.04 and corresponding Design Guidelines. 14. Locks shall be installed on all cooler doors and publicly accessible storage areas where alcohol is displayed for sale. All such areas shall be kept locked excepting during approved alcohol sales hours. 15. Advertising or sales practices that target youth or offer special holiday promotions shall be prohibited. 16. The sale of alcoholic beverages shall be limited to between the hours of 8:00 a.m. and 12:00 a.m. seven days a week. 17. 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 p; !or to issuance of a city business license. 18. The sale of beer or malt beverages in quantities of quarts, 22 ounce, 32 ounce, 40 ounce, or similar size containers is prohibited. 19. No beer products shall be sold of less than manufacturer's pre -packaged three -pack quantities of 24 ounce cans per sale. There shall be no sale of single cans or bottles. 20. No sale of wine shall be sold in containers of less than 750 milliliters. The sale of wine with an alcoholic content greater than 15% by volume is prohibited. 21. 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. 10 22_ 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. 23. 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 and containers shall be given free of charge. 24. 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. 25.The display of alcoholic beverages shall be limited to an area in substantial conformance with the walk-in cooler as shown on Exhibit A, Case Ale No. 2011-03 CUP, dated 1/26/2011. 26. 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 by 22 inches in size, with lettering not less than one inch in height. The signs shall read as follows: a "No open alcoholic beverage containers are allowed on these premises." b. "No loitering is allowed." 27. Containers of alcohol may not be stored on the premises, after being sold to patrons, for the purpose of later consumption. 28. 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_ 29. 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 shall be made available to the City Finance Department and any Peace Officer of the California Department of Alcoholic Beverage Control upon demand. Police 30. Permittee shall comply with all regulatory provisions of the Business and Professions Code that pertain to the sale, display and marketing or merchandising of alcoholic beverages. 11 39.0 NAL ANAL,- 106.02 City of National City CENSUS TRACTS NA FIONAL' CHLLA VISTA Miles Sr 2003 Sweetwater, Marsh National Wildtife=Refugi 125.00 Pkrkc; 33.`02_._ ERA 31 Sweetwater County Park Sq Henderson Recreation Center. Bo5t4FAbe uri 2 St = Beta -Si ur FI7r-St ; ,... Q+ba-r sr R Ary3 e Rey'nrtds St —i," San Diego Sooa Are, I M.arjnus'yy - - - Tµ' 'ea•a Si g A u %. f=amrna h_._. > S I s, aka St- ? *'tinsa yt 'ro‘ 7 - a S� ,.. 3; Rod c may. 5. 9v. opyrrghtpTand(f)1988-2000 Mrc ros off Copo;atron,andlonissappllers nghtsGesened Pod;on59199020p5'InstallShi eld el1vare Corporation -All rights- reserved. 8 ettau; rrranOng and illfectinn d-tttA a a 92705VTEQ All nqh s reserved. NAV"EQ aad NAVTEQi ON BOARD are tretlernarksaGil NA' TCO lt� 2005 Te'le FNr h llas oAmerca Inc A. All weshlstrerved Tele'Atl& and .fele-fiVas Nodti America are Iratlemafks of e W135 Inc uource: Microsoft Mappoint NCPD CAU, 4/18/07 City of National City Beat 21 13 National City Car Wash Remodel and Convenience Store Addition 1601 East 8`h St. & Palm Ave. Environmental Scan _Case File No. 2011-03 February 25, 2011 Submitted by: Institute for Public Strategies- Debbie Ramos The proposed location of the Food Mart is at the Shell gas station located at Palm Ave and 8th Street in National City. The census tract is 119.01 which allows for 2 off sale alcohol licenses; currently there are none. In 2010, there were 5 DUI arrests and 2 Drunk in Public arrests made in the 1600-1900 blocks of 8t Street. There are many small businesses located nearby, including liquor stores, convenience stores and a Carnival Supermarket that already sells alcoholic beverages. An additional liquor license in the city has the potential to increase crime, reduce resident quality of Zile and increase the incidence of alcohol related accidents. If the CUP is granted, it is recommended that: The sale of alcoholic beverages is limited to the hours of 8:00- 1 2:00; That all persons selling alcoholic beverages shall receive Responsible Beverage sales and Service training; The sale of beer or malt beverages in quantities of quarts, 22, 32, 40 ounce or similar sized containers be prohibited; No beer or malt beverage products shall be sold in quantities of less than a six-pack. No excessive alcohol advertising that targets youth or holidays. 14 +WHAT: WHEN: WHERE: COMMUNITY MEETING September 12, 2011 (Monday) 5:00pm PIZZA HUT 1838 Sweetwater Rd. National City, CA National City Shell located at 1601 E. Eight Street (corner of Eight and Palm) is submitting plans to add a Food Mart to an existing gas station with carwash. The plans were approved by the community but now we also wish to have a beer and wine license. As a member of the community your thoughts about this matter is very much welcomed. September 12, 2011 Raman Goyal 41805 Alhrae Street, second floor Fremont, CA 94538 Subject: Case File No. 2011-03 CUP — 1601 East 8`h Street, National City, CA 91950 To: National City- Development Services Department Regarding the case number listed above, we had a community meeting on September 12, 2011 in Pizza Hut. All the letters were mailed according to the mailing list that we provided to the city, but unfortunately nobody from the community showed up. From National City Shell, I, Raman Goyal, Ankush Tayal and our architect, Mr. Geoffrey A. Bonney were present at the meeting. We waited for over one hour and still had nobody show up. However, few of our gas station customers have asked us why we are holding this meeting again when we were already approved by the neighborhood. So in this matter, since National City Shell has done everything according to the city requirements, we would like to ask the city to proceed with the approval process of the project in a timely manner. Please feel free to send any questions or concerns to Raman Goyal at (951)850-5378. Thank You, R91/1-,La Raman Goyal 0 16 CITY OF NATIONAL CI I Y - DEVELOPMENT SERVICES DEPARTMENT 1243 NATIONAL CITY BLVD., NATIONAL CITY, CA 91950 NOTICE OF PUBLIC HEARING CONDITIONAL USE PERMIT FOR THE CONSTRUCTION OF A FOOD MART WITH ACCESSORY BEER AND WINE SALES AT 1601 E. 8TH ST. CASE FILE NO.: 2011-03 CUP APN: 557-112-10 The National City Planning Commission will hold a public hearing after the hour of 6 p.m. Monday, October 17, 2011, in the City Council Chambers, Civic Center, 1243 National City Blvd., National City; California, on the proposed request. (Applicant: Vintners Distribution, Inc.) The applicant- is proposing to construct a 1,030 square -foot convenience store adjacent to an existing car wash. As part of the store operation, the applicant is requesting to sell beer and wine between the hours of 6 a.m. and 1 a.m. seven days a week. Information is available for review at the City's Planning Division, Civic Center. Members of the public are invited to comment. Written comments should be received by the Planning Division on or before 12:00 p.m., October 17, 2011, who can be contacted at 619-336-4310 or planningnnationalcityca.gov If you challenge the nature of the proposed action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Planning Commission at, or prior to, the public hearing. NATIONAL CITY PLANNING DIVISION MARYAM BABAKI Development Services Director 17 ._.' IN CORYOA,LTEP NOTICE OF EXEMPTION TO: County Clerk County of San Diego P.O. Box 1750 1600 Pacific Highway, Room 260 San Diego, CA 92112 Project Title: 2011-03 CUP Project Location: 1601 East 8th Street, National City, CA 91950 Contact Person: Martin Reeder Telephone Number: (619) 336-4313 Description of Nature, Purpose and Beneficiaries of Project: Conditional Use Permit for a new 1,030 square -foot. Mini -mart, with beer and wine sales for off -site consumption, at an existing gas station.. Applicant: Vintners Dist_, Inc_ 41805 Albrae Street, 2nd Floor Fremont, CA 94538 Exempt Status: N l_J Telephone Number: (510) 270-3410 Statutory Exemption. (State type and Section No., if applicable) Categorical Exemption. Class 1 Section 15332 (In -fill development projects) Not a project as defined in Section 15332 of CEQA Not subject to CEQA (Sec. 15061b3) Reasons why project is exempt: The proposal to expand an existing gas station by 1,030 square feet will not have a negative effect on the environment, since the gas station is not located in or near an environmentally sensitive area, and since it is located in a fully urbanized area with all infrastructure in place for full build out of the General Plan. Date: MARTIN REEDER, AICP Assistant Planner 18 2011-03 CUP Food -Mart Construction — Shell Service Station — Site Photos Existing Service Station Looking Northeast Existing Carwash Looking Southeast 19 Proposed Food Mart Location Looking West Driveway to be Removed 20 RESOLUTION NO. 25-2011 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NATIONAL CITY, CALIFORNIA, APPROVING A CONDITIONAL USE PERMIT FOR THE CONSTRUCTION OF A FOOD MART WITH ACCESSORY BEER AND WINE SALES AT AN EXISTING GAS STATION AT 1601 EAST 8T" STREET APPLICANT: VINTNERS DISTRIBUTION INC. CASE FILE NO. 2011-03 CUP WHEREAS, the Planning Commission of the City of National City considered a Conditional Use Permit for the construction of a food mart with accessory beer and wine sales at an existing gas station at 1601 East 8th Street (APN: 557-112-10) at a duly advertised public hearing held on October 17, 2011, at which time oral and documentary evidence was presented; and, WHEREAS, at said public hearings the Planning Commission considered the staff report contained in Case File No. 2011-03 CUP maintained by the City and incorporated herein by reference along with evidence and testimony at said hearing; and, WHEREAS, this action is taken pursuant to all applicable procedures required by State law and City law; and, WHEREAS, the action recited herein is found to be essential for the preservation of public health, safety, and general welfare. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of National City, California, that the testimony and evidence presented to the Planning Commission at the public hearing held on October 17, 2011, support the following findings: That the site for the proposed use is adequate in size and shape, since the addition of a 1,030 square -foot convenience store is at an existing developed service station site that would continue to maintain adequate parking and circulation areas and that the sales area for beer and wine will be no more than 8 percent, or 53 square feet, of the available sales area of the proposed convenience store. That the site has sufficient access to streets and highways that are adequate in width and pavement type to carry the volume and type of traffic generated by the proposed use, since the addition of a convenience store with accessory alcohol sales is not expected to result in an appreciable increase in traffic. That the proposed use will not have an adverse effect upon adjacent or abutting properties, since the gas station is located in a developed commercial area, easily accessed by an adjacent arterial street. Also, conditions of approval controlling the sale of beer and wine will reduce any potential for adverse effects. 21 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 mixed -use zone. 5. 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 construction of a 1,030 square -foot convenience store and for the sale of beer and wine for off -site consumption at the Shell Service Station at 1601 East 8th 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. 2011-03 CUP, dated 1/26/2011. 2. Within four (4) days of approval, pursuant to Fish and Game Code 711.4 and the California Code of Regulations, Title 14, Section 753.5, the applicant shall pay all necessary environmental filing fees for the San Diego County Clerk. Checks shall be made payable to the County Clerk and submitted to the National City Planning 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. 4. 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. 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 effecth e, the applicant and the property owner both shall sign and have notarized an Acceptance Form, provided by the Planning Division, acknowledging and accepting all conditions imposed upon the approval of this permit. Failure to return the signed and notarized Acceptance Form within 30 days of its receipt shall automatically terminate the 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. 22 Fire 8. Plans submitted for construction shall comply with the 2010 edition of the California Fire Code and the 2010 edition of NFPA. All plans shall be directly submitted to the National City Fire Department through permit and payment. 9. Per NFPA 13 Chapter 7 Section 7.3.2.4 Supervision, sprinkler piping and fire detection devices shall be automatically supervised where more than 20 sprinklers are on the system. A fire alarm system required. Planning 10. 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 issuance of a building permit. The landscape plan shall reflect the use of drought tolerant planting and water conserving irrigation devices. Landscape and irrigation plans shall be consistent with Chapter 18.44 — Landscaping of the Land Use Code. 11. Building plans shall show details for hardscape on site, including parking lot striping; details for proposed vinyl fencing; removal of the existing payphone enclosure and screening for the vapor recovery system located on the east side of the lot. 12 A new door and cover shall be provided for the existing trash enclosure. The finish of the trash enclosure shall be painted to match other buildings on site. 13. Any proposed rooftop mechanical equipment shall be screened in compliance with the Land Use Code Section 18.42.04 and corresponding Design Guidelines. 14. Locks shall be installed on all cooler doors and publicly accessible storage areas where alcohol is displayed for sale. All such areas shall be kept locked excepting during approved alcohol sales hours. 15. Advertising or sales practices that target youth or offer special holiday promotions shall be prohibited. 16. The sale of alcoholic beverages shall be limited to between the hours of 8:00 a.m. and 12:00 a.m. seven days a week. 17. 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 city business license. 18. The sale of beer or malt beverages in quantities of quarts, 22 ounce, 32 ounce, 40 ounce, or similar size containers is prohibited. 19. No beer products shall be sold of less than manufacturer's pre -packaged three -pack quantities of 24 ounce cans per sale. There shall be no sale of single cans or bottles. 20_ No sale of wine shall be sold in containers of less than 750 milliliters. The sale of wine with an alcoholic content greater than 15% by volume is prohibited. 23 21. 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. 22. 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. 23. 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 and containers shall be given free of charge. 24. 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. 25. The display of alcoholic beverages shall be limited to an area in substantial conformance with the walk-in cooler as shown on Exhibit A, Case File No. 2011-03 CUP, dated 1/26/2011. 26. 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 by 22 inches in size, with lettering not less than one inch in height. The signs shall read as follows: a. 'No open alcoholic beverage containers are allowed on these premises." b. "No loitering is allowed." 27. Containers of alcohol may not be stored on the premises, after being sold to patrons, for the purpose of later consumption. 28. 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. 29. 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 shall be made available to the City Finance Department and any Peace Officer of the California Department of Alcoholic Beverage Control upon demand_ Police 30. Permittee shall comply with all regulatory provisions of the Business and Professions Code that pertain to the sale, display and marketing or merchandising of alcoholic beverages. BE IT FURTHER RESOLVED that copies of this Resolution be transmitted forthwith to the applicant and to the City Council. 24 BE IT FINALLY RESOLVED that this Resolution shall become effective and final on the day following the City Council meeting where the Planning Commission resolution is set for review, unless an appeal in writing is filed with the City Clerk prior to 5:00 p.m. on the day of that City Council meeting. The City Council may, at that meeting, appeal the decision of the Planning Commission and set the matter for public hearing. CERTIFICATION: This certifies that the Resolution was adopted by the Planning Commission at their meeting of October 17, 2011, by the following vote: AYES: Flores, Reynolds, Pruitt, Baca, Farias NAYS: ABSENT: Alvarado, Delapaz ABSTAIN: /</., AIR AN ! / 25 rif3 11( So.l ��, . ,..... , sl J31I NJNtl A3NNo8 ,aae� o� 'i. '; sores son mob t r m, 4fl =. 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Rf <nuWu rs en.e« _. 20 ff,-w. nee rIv . v+cre., - Qi ' LJ \ LJ 1� alit-1 L .61.ffeM_ drmeD G•_L�� 9111111 ELEVATION • TRASH ENCLOSURE L'M-O (9` TRASH ENCLOSURE - ROOF DETAIL veo'+(3� EL AC-6 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: AGENDA ITEM NO. 15 M TITLE: City Council approval of the Investment Management Committee recommendation to select Chandler Asset Management to provide Investment Management Services for the City of National City PREPARED BY: PHONE: EXPLANATION: �Z_ Leslie Deese, Asst. City Manager and DEPARTMENT: City Manager Committee Members 619-336-4240 APPROVED BY: See attached Staff Report FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: APPROVED: Finance MIS Fees will be based on the average balance of assets under Chandler's direct management at the annual rate of 6 basis points, or 0.06 of 1 %. ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: The Committee recommends the City Council approve the selection of Chandler Asset Management for Investment Management Services. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: ff Report "1 1andler Asset Management Proposal (Attachment #1) Chandler Asset Management Presentation to Committee (Attachment #2) vity Council approval of Committee recommendation to select Chandler Asset Management for Investment Management Services Staff Report: On July 19, 2011, the City Council approved an RFP for Investment Management Services for the City of National City and approved the creation of a Committee tasked with evaluating proposals and bringing forward a recommendation of up to two qualified firms for its investment portfolio. This report sets forth the Committee's recommendation to select Chandler Asset Management for the reasons set forth herein. The amount to be invested would be dependent on a cash flow analysis that would be conducted following City Council approval of the selection. If the selection is approved by City Council this date, the Agreement will follow at the next regularly scheduled meeting on November 15, 2011. Background: 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 at 5.25% for all funds yielded $2,346,415 compared to 2011 investment earnings at 0.4% yielding $438,636 to date. Furthermore, utilizing the services of a professional investment advisor to manage a portion of the City's portfolio may enable the City to achieve some "added value" and allow City staff to assume other critical finance related responsibilities. The City's primary investment objective is to achieve a reasonable rate of return on public funds while minimizing the potential for capital losses arising from market changes or issuer default. With today's volatile market and complex investment instruments, a professional investment manager is best suited to achieving the City's investment goals while minimizing portfolio risk. Although the generation of revenues through interest earnings on investment is an appropriate City goal, the primary consideration in the investment of City funds is safety of funds by preserving capital in the overall portfolio. As such, consistent with the City's Investment Policy, the yield objective is to achieve a reasonable rate of return on investments rather than the maximum generation of income, which could expose the City to unacceptable levels of risk. Current Investment Portfolio: The combined value of the portfolio is approximately $50 million of various fund types, which is currently placed between the California Treasurer's Local Agency Investment Fund (LAIF) and other low risk securities (see Exhibit A). This amount fluctuates depending on expenditures, such as payroll and other day-to- day operations. National City has 75.39% of its total portfolio invested in LAIF. This is a liquid investment pool which allows participants to earn market rate returns of large investments, while retaining access to funds within 24 hours of a withdrawal request. Due to the current circumstances of the economy and market conditions, LAIF return has been plunging for the last several years and current projections are continued to decline. For the month ended June 30, 2011, LAIF's monthly average effective yield was 0.45%. RFP Process: As previously stated, the City Council authorized the issuance of a Request for Proposal (RFP) from interested firms in providing investment management services for its investments portfolio. The City Council appointed two council members to serve on the evaluation committee for potential financial management services. The committee provided for a balanced representation with members of the City Council, the City Treasurer, Finance, and City Manager's Office, and was comprised of the following members: Councilmember Luis Natividad Councilmember Mona Rios City Treasurer Mitch Beauchamp Financial Services Officer Tina Norrdin National City's Financial Advisor Michael Busch (Urban Futures, Inc.) Assistant City Manager Leslie Deese The RFP was sent to several investment management firms that had previously contacted the City and was posted on the City's website and other heavily trafficked finance related websites, including the California Society of Municipal Finance Officers (CFSMO) and California Municipal Treasurers Association (CMTA). Responses to the RFP were due by 5:00 pm on August 18, 2011. The City received eighteen (18) responses. The firms that responded to the RFP for investment management services, listed in alphabetical order are: BNY Melon Chandler Asset Management Cutwater Cypress Asset Management Dana Investment Advisors Dwight Asset Management Co. Estrada Hinojosa & Company, Inc. First Southwest Company Garcia, Hamilton & Associates JPMC LM Capital Group, LLC Main Street Capital Advisors Pacific Income Advisors Public Financial Management Reams Asset Management Company Union Bank US Bank Wells Capital Management Committee Evaluation Criteria: In order to rank the firms and provide a recommendation to the City Council, in addition to the criteria outlined in the RFP, the Committee considered: • Accessibility to the Firm • Investment Strategies • Relevant Experience • Strategies to Add Value • Investment Administration Services: Policies, Benchmarking, Oversight, Reporting, Training • Cost of Services After reviewing and considering each proposal, the Committee concluded that while all the firms had the experience to provide investment management services for the City, three firms were independently ranked as the top three by each committee member to interview. Listed in alphabetical order: Chandler Asset Management LM Capital Group, LLC Public Financial Management (PFM) The Committee felt that the City would be well -served by any of these three firms. Community Development / Redevelopment Funds The RFP assumed the investment of both the City and CDC funds; however, due to AB x 27 and the pending Supreme Court stay, the City Attorney advises that the CDC funds must remain invested with LAIF until the California Supreme Court's decision on January 15, 2012. Committee Recommendation: As the Committee was tasked with making a recommendation to the City Council, Chandler Asset Management was selected by the Committee to assist the City in selecting long-term investments for its bond proceeds and other investable funds pursuant to the City's Investment Policy. Chandler Asset Management Founded in 1988, Chandler Asset Management is a California corporation located in San Diego, a certified woman -owned, employee business enterprise with over 20 years of experience providing Investment management services to public agencies, foundations and endowments, not -for -profit organizations, and corporations. Their San Diego headquarters would allow ongoing interaction between City staff and Chandler staff easier. Chandler has a strong track record in managing investment portfolios. As of June 30, 2011, Chandler manages over $6 billion for 102 clients. Public agencies comprise 77% of the assets. Included in these assets are $4.6 billion managed specifically for municipal clients. Chandler also serves in an advisory capacity to the County of San Diego. Chandler is a registered investment adviser, regulated and monitored by the Securities and Exchange Commission and is registered with the Securities and Exchange Commission as an investment adviser. Chandler is not a broker/dealer and has no branches of its operations that perform these services. All purchases of investments are made through a competitive process and avoid any appearance of a conflict of interest. The investment manager holds no funds directly. All investments would be held at the City's custodial bank for safekeeping. The investment manager instructs how the portfolio should be invested in accordance with the City's financial policies, and processes those transactions through the City's custodial bank. City staff provides guidelines and constraints to the investment manager based on the City Code and regular monitoring of their performance to ensure compliance. Reference Checks: City staff conducted reference checks with several of the firm's client cities. All of the references that were checked provided positive feedback on their working relationship with Chandler. Of the cities that were contacted, Chandler manages a portion of their long-term investment portfolio, with the long-term portfolio being described as investments with maturities between one and five years. addition to the reference checks, several Committee members conducted a ;rite visit of Chandler's San Diego Office to view their trading desks and meet their staff. The Committee feedback was very positive and believes that Chandler Asset Management would provide National City with excellent service. Contract Term: The Committee recommends a 2-year term with three (3) additional 1-year options for a total of 5-years. Fees: Due to the current investment environment, Chandler has offered the City a reduced fee for its services. Chandler proposes to manage the City's investment portfolio at the annual rate of 6 basis points, or 0.06 of 1 %. As an example, for a $20 million portfolio, the annual cost to the City would be $12,000. The fee schedule will remain in effect for a minimum of two years from the date of contract execution, or until such time as the Federal Reserve Bank officially increases the Federal Funds rate by any amount. Once the Federal Reserve has increased the Federal Funds rate, or after two years, whichever is later, Chandler proposes the following standard fee schedule: Assets Under Management Annual Asset Management Fee First $20 million 0.10 of 1 % (10 basis points) Next $40 million 0.08 of 1 % (8 basis points) Assets in excess of $60 million 0.06 of 1% (6 basis points) The fees expressed above do not include any custody fees that may be charged by the City's bank or other third party custodian; however these fees are minimal. Fees are based on the average balance of assets under Chandler's direct management and are all inclusive for the services that Chandler will provide including: • Review of National City's Investment Policy; • Personal visits and meetings with City staff on a quarterly or semi-annual basis, or as requested; • Educational offerings to City staff and elected officials; • No setup or other one-time fees; • No additional costs associated with the sale and purchase of securities, other than those that may be imposed by the custodian; • No annual minimum; • No other forms of compensation. Resource Impacts: • Available Funding — The fees incurred for this advisory service will be deducted from the investment income generated from the portfolio securities and is based on the size of the investments under advisement. • Staffing, Workload Impact — The City Manager's Office, the City Treasurer, Finance and Accounting staff will monitor the Investment Manager's performance. • Future Budget Implications — There will be no expenditure budget implications. Additional investment income may be realized. County of San Diego's Relationship with Chandler Asset Management: An accompanying item on the November 1, 2011 Council Agenda recommends National City participates in the County of San Diego's Investment Pool. Because Chandler serves in an advisory capacity to the County of San Diego, the Committee wanted to ensure there would not be a conflict of interest. Neither the County nor Chandler believes a conflict of interest would exist. Chandler provides advice to the County; they do not handle their investment portfolio. Chandler will provide advice separately to the City of National City and the County of San Diego; the advice provided to one would not influence the advice provided to the other. Furthermore, Chandler would only be compensated on assets National City places under their direct management; not for assets managed by the County. Next Steps: If the recommendation to select Chandler is approved by Council on November 1st the next steps in the process would be: Execute Agreement (Council) Select & Execute Agreement for Custodian (City Manager) Conduct Cash Flow Analysis (Chandler/Staff) Update Investment Policy (Chandler/Staff) City Council Approval of revised Investment Policy Review Cash Flow Projections (Staff) Transfer of Cash / Investments November 15, 2011 November 2011 November -December November -December . December 6, 2011 December 2011 January 2012 CDC / Redevelopment Inv. Mgmt. Contract & Subsequent Fund Transfer TBD - After January 15, 2012 California Supreme Court Decision Exhibit A SUMMARY OF INVESTMENT PORTFOLIO As of June 30, 2011 Investment Type INVESTMENTS HELD BY THE CITY YTM % of Book Value Market Value 365 Equiv. Portfolio LAIF Medium Term Notes Federal Agency Securities CDARS Program 38,266,020.00 500,000.00 9,989,750.00 2,000,000.00 38,326,345.23 0.44814. 75.39% 510,320-00 4.000% 0.99% 10,062,622.10 2.228% 1968% 2,000,000.00 1.050% 3.94% Totals for June 2011 50,755,770.00 50,899,287.33 0.857% 100.0014 Totals for June 2010 51,556,596.76 Portfolio increase from same quarter last year Federal Agency Securities 19.88% Medium Term Notes 0.99% -B00,826.76 CDARS Program 3.94% LAIF 75.39% Investments Liquidity Book Value % of Portfolio On Demand Within One Month One Month to One Year One Year to Two Years Five Years City of National City Finance Department 38,268,020.00 3,000,000.00 7,409,750.00 1,000,000.00 1,000,000.00 50,755,770.00 75.39% 5.91% 14.76% 197% 1.97% 100.00% c� CHANDLER ASSET MANAGEMENT August 16, 2011 City of National City Leslie Deese, Assistant City Manager • 1243 National City Blvd. National City, CA 91950 ATTACHMENT #1 San Diego I Chicago I Denver ( Pleasanton RE: City of National City Request for Proposal for Investment Management Services Dear Ms. Deese: We welcome the opportunity to present our qualifications to serve as investment manager for the city of National City. As you read our statement of qualifications and become acquainted with our firm, you will understand our dedication to providing superior investment services to our clients. We have read and understand fully the RFP. Our proposal is prepared and presented in response to your request and in accordance with the RFP guidelines and requirements. Given our over 20-year tenure as investment advisers to the public sector, as well as the depth and breadth of experience and quality of our professional team, we meet or exceed all of your requirements. With Chandler Asset Management, you will benefit from • our commitment to partnership with each client • our experienced and well-resourced professional investment team • an investment process that is consistent and repeatable throughout market cycles • competitive results, documented in accordance with industry standards • our San Diego headquarters that makes ongoing interaction between your staff and ours easy Our proposal presents detailed information on why we believe we are the best qualified to provide the investment advisory services you have requested. We look forward to the opportunity to discuss our capabilities and the enclosed proposal with you. Please be advised that both Martin Cassell and I are authorized to represent Chandler Asset Management in all matters related to the RFP. Sincerely, �ti Kay C ndler Presid nt 5 Lusk Boulevard San Diego, CA 92121 PHONE 858.546.3737 FAX 858.546.3741 www.chandlerasset.com CHANDLER ASSET MANAGEMENT Chandler Asset Management Proposal IN RESPONSE TO City of National City Investment Management Services 41/(1IIIPIAi1!{Il \17.1 `,,�t,/ l u f u U l 111�11�L�� August 18, 2011 1 CHANDLER ASSET MANAGEMENT Chandler Asset Management Proposal IN RESPONSE TO City of National City Investment Management Services fRJIj) V11/11inissiiimmita Table of Contents A. Organization 1 B. Personnel 4 C. Investment Management Approach and Discipline 6 D. Reporting Capabilities I 0 E. Fees 11 F. Other Considerations 12 CHANDLER ASSET MANAGEMENT A. Organization 1. Describe the brief history of your firm, including date founded, ownership, and any subsidiary relationship or relationships with other financial institutions Chandler Asset Management ("Chandler'), founded in 1988, is registered with the Securities and Exchange Commission as an investment adviser. For over 23 years, Chandler has provided investment management services to public agencies, foundations and endowments, not -for -profit organizations, and corporations. Chandler is a California corporation and a certified woman -owned business enterprise. Our headquarters is here in San Diego —making interaction especially easy with the City. Chandler is 100% employee owned. The key employees of Chandler are the owners of the firm: an ownership structure that contributes to our ability to attract and retain the highest quality investment professionals. Chandler is completely independent and has no affiliations with broker/dealers, banks, or other financial institutions. 2. Describe experience of the firm in providing investment management services to the public sector. Since our inception, the primary focus for Chandler has been managing funds for governmental entities. Our staff members have extensive experience managing public funds. Our investment professionals apply time - tested, results -proven concepts of conservative, fixed -income management to the challenges of investing public funds in order to meet the specific objectives and constraints of each client. Chandler manages a wide variety of accounts for public entities, local agencies, and California Code clients, and has a strong track record in managing investment portfolios for these organizations. As of June 30, 2011, we manage over $6 billion for 102 clients. Included in these assets are $4.6 billion managed specifically for municipal clients. We are extremely familiar with the issues affecting the City's portfolio and the applicable California Code provisions. We understand the unique cash flow and liquidity requirements, and regulatory and accounting nuances of these mandates. We also have substantial experience managing the assets of other fixed -income investors, including foundations and endowments, not -for -profit organizations, and corporations. This experience with investors outside the public sector enhances our ability to bring the best practices of the private sector to our governmental mandates. 3. Describe any SEC regulatory censure or litigation related to services the firm provides. None. 1 CHANDLER ASSET M1A"''. EMENT 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. Chandler Asset Management Assets Under Management As of June 30, 2011 5. Provide the approximate client turnover using II- ibrmat below: Chandler Asset Management Client Turnover As of June 30, 2011 1 Includes 941 separate accounts managed on one SMA platform. 2 Number gained and lost does not include changes to the platform described in footnote 1. 2 CA% CHANDLER ASSET MANAGEMENT 6. Provide a list of relevant public sector client references, including contact p6rsons and telephone numbers. Relevant list would include clients with similar types of jurisdictions, portfolio size, and investment objectives. p'.aiYa 'di l ��y5. �lll F ..•i?�t«CY. � San Diego Pooled Insurance Program Authority (SANDPIPA) 1237 Bear Valley Parkway Escondido, CA 92027 $24.3 2008 Ms. Laura Seiler Pool Manager (760) 738-7010 lseiler@sandpipa.org City of Brea One Civic Center Circle Brea, CA 92821 $103.0 1996 Mr. William Gallardo Finance Director (714) 671-4418 billga@ci.brea.ca.us City of Corona 400 South Vicentia Avenue Corona, CA 92882 $195.3 2006 Ms. Debra Foster Finance Director (951) 736-2315 debra. foster@ci.corona.ca.us City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92659 $57.5 1991 Mr. Dan Matusiewicz Deputy Administrative Services Director 644-3126 (949) danm@newportbeachca.gov City of San Marcos 1 Civic Center Drive San Marcos, CA 92069 57 2009 Ms. Laura Rocha Finance Director (760) 744-1050 lrocha@ s an-marco s. n et 7. Describe the type and amount of insurance coverage thee firm maintains with respect to investment management activities. Chandler carries $10 million in Errors and Omissions/Professional Liability Insurance through Twin Cities Fire Insurance, a Hartford company. The firm also carries a $1 million fidelity bond with The Hartford Insurance Company. 8. Provide a copy of the firm's most recent audited financial statement. A copy of the firm's reviewed fmancial statements is included separately. We request that you maintain the confidentiality of this information as Chandler is not publicly held. CAt CHANDLER ASSET MANAGEMENT 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. Chandler Asset Management Professional Team Z•ZASSIMM ',;,, OfttV"Orl* '511,-,,.:t Alt • NationaltW V0,3,fc Kay Chandler, CFA President Client service 1975 1988 Martin Cassell, CFA CEO, Chief Investment Officer Leads the investment team 1987 1991 Nicole Dragoo, IACCP COO, Chief Compliance Officer Leads investment operations team Regulatory compliance 2000 2001 Ted Piorkowski, CFA SVP, Portfolio Manager Portfolio management and trading 1987 1999 Jayson Schmitt, CFA SVP, Portfolio Manager Portfolio management and trading 1994 1995 Brian Perry, CFA VP, Portfolio Manager & Strategist Portfolio management and trading Investment Strategy 1996 2005 William Dennehy II, CFA VP, Portfolio Manager Portfolio management and trading 1992 2011 Shelly Henbest Credit Analyst Credit analysis 2000 2009 Eric Young Portfolio Specialist Portfolio management support 2005 2007 Mia Corral VP, Client Service Client service and relationship management 1997 2004 For detailed resumes of all team members please see the team biographies in Appcndix A. 2. Describe actions taken by the firm to keep its investment professionals informed of developments relevant to government investment managers and investments in general. Maintaining an authoritative presence in the specialized area of providing investment advice to public entities is crucial to the firm and to our clients. Firm leadership recognizes the importance of ensuring staff stays current on developments that may affect local governments, as well as knowledgeable in technical investment areas. 4 CAI I CHANDLER ASSET MANAGEMENT CFA Program Continuing Education. All portfolio managers at Chandler have demonstrated their expertise and commitment to portfolio management by earning the designation of Chartered Financial Analyst (CFA). Other team members are working to achieve this designation. We encourage CFA charter holders to participate in annual continuing education courses. Ongoing Registered Investment Adviser Continuing Education. We encourage and support staff members to stay abreast of SEC regulatory requirements. To that end, Chandler provides on -going live and Web -based training sessions on a variety of topical areas. Ad Hoc Learning Activities. Chandler's management encourages and supports professional staff to identify and participate in instructional programs that are relevant to their investment management work. At the same time, staff members recognize the importance of staying current on developments that may affect local governments, and lend their own expertise to develop recommendations and best practices for advisers and their clients. Our involvement occurs on several levels. Local Agency Clients We have been providing our services to public agencies since 1988. Throughout that time, we have followed, and often been involved, in drafting investment legislation and recommended practices on a state and national level, providing guidance on safe and effective practices for the management of public funds. Speakers, Faculty and Authors Preparation for our many speaking engagements keeps us current on important government investment developments. Team members are frequent contributors to technical publications. Kay Chandler is one of four co-authors of The California Investment Primer, a reference book commissioned by the California State Treasurer for California public fund managers. Ned Connolly is a regular faculty instructor for the GFOA and a former member of the Committee on Treasury and Investment Management. Sofia Anastopoulos joined the firm in 2010. Formerly with GFOA, she was responsible for the GFOA's Treasury and Investment Management activities, served as senior staff on the GFOA committee on Treasury and Investment Management, edited the Association's Treasury and Investment Management Newsletter, which focuses on issues relevant to public sector investors, served as instructor for the GFOA and regional associations and contributed to GFOA's various publications. Some of Sofia's recent publications geared towards informing public officials of best current practices include Elected Official's Guide: Investing (Second Edition), Introduction to Broker -Dealers for State and Local Government (Second Edition), and Introduction to Investment Advisers for State and Local Government (Second Edition). Sofia currently serves on the GFOA's Committee on Treasury and Investment Management. 3. State whether there has been any turnover of key personnel in the firm or additions to staff in the past year. One portfolio manager Left the firm in 2010. A portfolio manager hired to take over his duties recently started work at the firm. Mr. William Dennehy II, CFA, joined us from Northern Trust. 5 CA% CHANDLER ASSET MANAGEMENT C. Investment Management Approach and Discipline 1. Describe the firm's overall investment philosophy and approach to this engagement. Chandler's Investment Philosophy We believe that effective risk management enhances the potential for higher returns while maintaining the primary objectives of safety and liquidity. Chandler's Investment Discipline To execute our philosophy, the firm employs a rigorous, quantitatively based discipline, comprised of three stages: portfolio structure, security selection, and periodic rebalancing. Portfolio Structure A proprietary Ilorizon Analysis Model is the quantitative foundation for Chandler's portfolio construction process. The Model enables the portfolio management team to integrate its research into the portfolio management process in a quantitative, disciplined, and repeatable way. Inputs to the Model include: (1) current yields on Treasury, agency and corporate securities; (2) specific client constraints, such as maturity restrictions and maximum sector exposure; and (3) nine different forecasted interest rate scenarios that are at a six-month horizon date. Through an iterative process, the Model generates the "optimal portfolio structure" (duration, maturity distribution and sector allocation), which is the portfolio that achieves a return greater than the benchmark in each of the nine scenarios. That is, the Model generates a portfolio structure that we expect will outperform the portfolio's benchmark over a wide range of possible future interest rate movements. The portfolio management team then evaluates the optimal portfolio structure. The team makes any necessary changes and begins the construction of the optimal portfolio. This combination of a rigorous quantitative structure and experienced qualitative oversight is a hallmark of all Chandler's portfolio management activities. Security Selection The security selection decision is separate from the portfolio structuring process, and is on page 8. Portfolio Rebalancing With the passage of time, portfolio characteristics tend to drift away from the desired structure. For that reason, the team reruns the Horizon Analysis Model monthly, and rebalances as market conditions and portfolio characteristics change. Chandler's Approach to This Engagement At the beginning of our relationship with National City, the firm's investment professionals discuss with client all aspects of the investment program, including investment objectives, risk tolerances, and policy constraints. Based on an agreed upon understanding of those considerations, we assist the client to select a market benchmark that reflects the risk profile and objectives. At this point, given the level of experience and firm resources, the team has the framework necessary to execute a disciplined, custom-tailored investment strategy. 6 CA% I CHANDLER ASSET MANAGEMENT 2. Describe the primary strategies for adding value to a portfolio. Chandler employs a disciplined portfolio management process custom-tailored to individual clients. The team will collaborate with you to quantify the risk guidelines appropriate for your portfolio and to select an investment style and benchmarks that reflect your objectives. With these guidelines in place, the team executes an investment program designed to add value in the following ways: • maintaining the proper duration in your portfolio in order to manage market risk • managing the portfolio's duration distribution, or placement of securities along the yield curve, based on relative value analysis • managing sector allocation based on analysis of market and credit conditions and in compliance with your investment guidelines • analyzing relative value of securities and continuously reviewing dealer inventories to identify securities that offer the best value for implementing our strategies • maintaining an ongoing dialogue with you through investment meetings and telephone contact with your staff 3. Describe the types of investment research the firm utilises and the methodology used to reconunend investment decisions. The ongoing development of sophisticated tools for investment research is a high priority at Chandler Asset Management. We devote considerable resources to enhancing our own in-house capabilities and to evaluating research from outside sources to incorporate into our own proprietary processes. Members of the portfolio management team conduct rigorous analysis of research acquired from external sources, including Bloomberg, Egan -Jones Ratings Company, and Stone & McCarthy Research Associates. It is our team's analysis of the internal and external research that forms the basis for structuring client portfolios. Current resources include: Horizon Analysis Model The proprietary Horizon Analysis Model described on page 6 is the quantitative foundation for Chandler's portfolio construction process. 'Ihe Model enables our portfolio management team to integrate its research into the portfolio management process in a quantitative, disciplined, and repeatable way. Bloomberg, LP We use the Bloomberg system to monitor market activity and security prices in real dine. Bloomberg's extensive database is an important resource in our fundamental evaluation of credit quality and relative value. Charles River Development Investment Management System (CRD) In 2008, the firm implemented CRD to automate and streamline our investment management operations. Our clients benefit from extensive portfolio management tools, efficient trade order management, and real- time pre -trade compliance testing and monitoring on a single integrated platform. Price Discovery and Electronic Trading We use TradeWeb® and other electronic trading platforms for price discovery, competitive bidding, and trade execution and documentation. 7 CA% CHANDLER ASSET MANAGEMENIT Economic Research The independent firm of Stone & McCarthy Research Associates (SMRA) provides us with a broad macroeconomic analysis, in-depth market commentary, and sector analysis, delivered over the internet. SMRA's examination of current economic conditions and projections of future economic scenarios is a major tool that we use in developing our own interest rate forecasts. Credit Research External resources for credit research described in detail on page 12 include the independent sources of Egan - Jones Ratings Company and Gimme Credit. 4. Describe the firms procedure for due diligence review, portfolio review; investment management and client contact. Due Diligence, Portfolio Review and Investment Management Each portfolio is invested to a model that Chandler and the client have developed together. Investment team members review all portfolios daily for compliance with investment policy and consistency with current portfolio structure recommended for the client's model. Trades In seeking best trade execution, Chandler combines trades for a number of clients into one large block, and then allocates the trades to individual portfolios, using an allocation process designed to treat all clients fairly in the transaction. Team members execute transactions through online trading platforms such as TradeWeb®, MarketAxess® or directly through individual brokers. The main consideration for broker selection is best execution, including best price and reliability of delivery. A minimum of three quotations will be sought and documented on trade tickets, and can be reported to clients at the time of execution. The winning seller delivers securities directly to the Client's custodian bank using standard DVP procedures. Security Choice The Horizon Analysis Model, described on page 6, is one of the primary tools for establishing the target duration, term structure and asset allocation in the portfolio. Security selection is a process that is separate from portfolio structure at Chandler. Once the team has determined the percent of the portfolio in any duration range or security type, portfolio managers seek individual securities to complete the portfolio structure. Corporate and agency securities are subject to the rigorous process of credit analysis described on page 12, which results in an "Approved Issuer List." Portfolio managers select securities from the Approved List based on relative value considerations. Controls The primary control in the portfolio management process is third party bank custody of client cash and securities, with all transactions occurring on a delivery -vs. -payment basis. Chandler maintains a broad array of internal controls to protect client assets, provide and document best trade execution and ensure portfolio compliance. The Charles River Development System (CRD) offers pre - trade and post -trade compliance testing, as well as ongoing review of account positions against market benchmarks and Chandler's model portfolio. In addition, CRD integrates with Bloomberg and other electronic platforms to record execution details and document competitive price quotations. 8 CIS I CHANDLER ASSET MANAGEMENT CRD integrates seamlessly with the firm's investment operations department and accounting system. Portfolio managers electronically send executed transaction information to Chandler's investment operations professionals for settlement processing and broker/custodian notification. Transactions are then electronically imported into the portfolio accounting/reporting system, which also serves as the ultimate book of record for all transactions. We have designed these controls to provide appropriate separation of duties and to reduce the possibility of human error in the process. Client contact Contact with our clients is on a regular basis and is as extensive as each client requests. Team members develop a regular schedule of in -person client meetings that is consistent with the client's preferences, on a quarterly or semi-annual basis. Senior staff members, including your portfolio manager, attend client meetings. In addition, portfolio managers make frequent calls to update clients on market conditions and portfolio adjustments. The firm's client service staff works closely with clients to review investment policies, assist with custodial relationships, enhance staff understanding of the investment program, and to serve as a general resource to the Client regarding investment matters. 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. Providing consistently "superior performance" requires us to be continuously focused on client investment objectives; the most important of which is a public agency's primary objective—rafety ofpnncipaI.. The current low -interest rate environment creates the considerable challenge of protecting principal if interest rates should begin to rise, while, at the same time, seeking reasonable levels of income. We are currently addressing this challenge specifically by maintaining portfolio duration slightly shorter than the duration of the appropriate benchmark to add protection to principal if rates rise, as we structure portfolio maturities, sector allocation, and issuers to provide above benchmark income levels. Our discipline of maintaining portfolio duration within a band around the duration of the portfolio's benchmark has served us well over the years, and we expect that we will continue to add value in this way. Please refer to the answer to the question 2 on page 7 regarding primary strategies Chandler uses to add value. 6. Describe procedures used to ensure that the portfolio is in compliance with the client's objectives and policies. Compliance is a top priority at Chandler. The firm employs a multi -level compliance review process to ensure portfolios comply with client guidelines, including: • A "pre -trade" automated compliance test ensures policy compliance even before a security is added to the portfolio. • A month -end review of each portfolio rechecks compliance with policy. • A written compliance analysis provided to each client in our month -end report package serves as backup for the monthly Treasurer's report. • A comprehensive weekly process ensures credit quality meets your policy standards and our strict quality requirements. • A portfolio structure that satisfies liquidity objectives with short maturity securities and return objectives with higher duration investments. 9 CM CHANDLER ASSET MANAGEMENT • Frequent communication between our team and yours helps us stay informed of any developments that may modify your objectives. Our San Diego presence makes interaction with you particularly easy. • In -person meetings held as frequently as you choose provide additional opportunities to review portfolio composition and performance at a high level. 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. As an investment adviser to public agencies for over twenty years, we have devoted significant resources to develop client reports that are accurate, timely, and complete, and that meet the specific requirements of our clients. Samples of reports, prepared in accordance with GAAP, and in compliance with GASB, are included in Appendix B. 2. Describe the frequency and format of the performance reports that would be provided. We prepare detailed monthly accounting and performance reports delivered via e-mail no later than the third business day following month -end. We provide quarterly portfolio reports that include economic and market information as well as discussion of strategy and transactions. A brief description of our reports follows, and complete samples are available in Appendix B. Monthly Reports We provide monthly portfolio accounting reports to all clients as part of our regular services. Each monthly report begins with a one -page management summary of portfolio characteristics that provides an excellent overview of the portfolio, including performance relative to the client's selected benchmark(s). A detailed asset listing, including cost, book, and market values, a transaction ledger, an earned interest report, and a cash flow report follows the summary page. Quarterly Investment Reports We provide quarterly reports to clients in a format designed to facilitate discussion between the portfolio manager and the client. The reports present portfolio characteristics, return, and compliance using graphs, charts, and illustrations in a format that is useful for management, elected officials, and interested members of the public. Like all of our reports, the periodic performance report can be customized to meet specific client needs. We propose to provide this report for our quarterly meetings with you. GASB Report We will provide a fiscal year-end report that provides all the information you will need to prepare the portfolio risk assessment required by GASB 40. 3. Describe the types of benchmarks that would be included with the performance reports. The selection of an appropriate market benchmark, defined as an unmanaged market index that reflects the portfolio characteristics of the strategy selected by the City, is critical to our investment process. A benchmark index provides an objective, consistent measurement to compare portfolio return to market return in order to assess the effectiveness of the investment program. 10 CA% CHANDLER ASSET MANAGEMENT We believe that performance benchmarks serve a dual purpose. First, a proper benchmark will reflect not only the investment objectives and permitted investments, but also the client's investment constraints. Therefore, we suggest market benchmarks that mirror the portfolio characteristics of a model portfolio for the client. Second, the benchmark should be the basis for discussion about incremental outperformance of the portfolio relative to the benchmark. That is, the goal is not just to "beat" the benchmark, but also to analyze what factors contributed to differences in performance. Since the benchmark reflects the risk profile of the client, it is important to understand whether the manager is taking on undesired risk to achieve results. One of our first steps in working with clients such as the City is to assist in selecting one or more benchmarks that match each client's risk and return profile. We will work with the City on the selection and then structure and maintain your portfolio over time with characteristics similar to those of the benchmark, as we strive to add value over and above the benchmark through our process of active management. E. Fees 1. Provide the fee schedule that would apply to this account. Due to the current investment environment, Chandler has decided to offer the City a reduced fee. Our fee proposal to you is that we manage the City's investment portfolio at the annual rate of 6 basis points, or 0.06 of 1%. For a $20 million portfolio, the annual cost to the City will be $12,000. The fee schedule will remain in effect for a minimum period of two years from the date of contract execution, or until such time as the Federal Reserve Bank officially increases the Federal Funds rate by any amount. Once the Federal Reserve has increased the Federal Funds rate, or after two years, whichever is later, we propose the following standard fee schedule: Proposed Fee Schedule for National City Assets Under Management First $20 million Next $40 million Assets in excess of $60 million Annual Asset Management Fee 0.10 of 1% (10 basis points) 0.08 of 1% (8 basis points) 0.06 of 1% (6 basis points) Fees arc based on the average balance of assets under Chandler's direct management and are billed monthly in arrears. 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. Our proposed fee schedule is all-inclusive for the services that Chandler will provide the City, including our personal visits and educational offerings for your staff. There is no setup or other one-time fees, and no 11 CA% CHANDLER ASSET MANAGEMENT additional costs associated with the sale and purchase of securities, other than those that may be imposed by the custodian. There is no annual minimum. There arc no other forms of compensation. The fee schedule does not include charges that the City will incur for third party custodial services at a bank trust department; these charges are minimal. 3. Is there a minimum annual fee? No. F. Other Considerations 1. Describe any assistance the firm would provide in reviewing custodial and safekeeping arrangements. The firm works with many different third -party custodians, and We are familiar with best practices for effective securities safekeeping. Our team will review your existing custody arrangements and recommend changes if necessary. We will provide you with information about the custodians we work with, and assist you in the selection process. 2. Describe the type and frequency of credit analysis that would be provided on security issuers and financial institutions. Chandler's investment team employs a rigorous, proprietary credit analysis process aimed at identifying stable and improving credits and early detection of weak and deteriorating credits. The process includes both qualitative and quantitative aspects. Credit Analyst Shelly Henbest is responsible for fundamental macroeconomic, industry -wide, and issuer - specific analysis. She prepares research reports and recommendations for review and action by the firm's Credit Committee. Committee members conduct independent credit research and meet once per week to develop a disciplined and actionable credit strategy. The decision process on individual issuers is bifurcated. If Committee members unanimously approve an issuer, it is immediately added to the Approved Issuer List. If any member of the Committee expresses a concern about the issuer further evaluation ensues. If the issuer passes additional screening, it is added to the Approved Issuer List; if not, it may be followed for later approval. Credit research is ongoing; not just limited to month end. An issuer can be added to or removed from the Approved Issuer List at any time on the recommendation of the Committee. External resources for credit analysis, which the Committee uses as additional research for its credit recommendations, include the independent rating service, Egan -Jones Rating Agency, an independent analytic firm, Gitnme Credit, Moody's, S&P and Fitch, and Wall Street sources. Ultimate approval of credits is the responsibility of Chief Investment Officer Martin Cassell. 3. Describe the nature and frequency of meetings the firm would recommend to keep staff informed. The purpose of client meetings is fourfold: first, to discuss cash flow, investment objectives and any new client considerations; second, to review economic and market conditions as they relate to the transactions we executed during the report period; third, to preview investment strategy for the upcoming months; and 12 GE, CHANDLER ASSET MANAGEMENT fourth, to present portfolio performance in comparison to selected benchmarks. We propose to meet with City staff on a quarterly or semi-annual basis, as your schedule permits, and we will be pleased to meet with policymakers or the governing body annually or as you deem necessary. Ve will prepare a special presentation for these meetings, which presents market information, current and proposed investment strategy, portfolio characteristics, and performance. The format is designed to promote discussion between our team and yours. A sample quarterly report is included in Appendix B. 4. Describe expertise and service capabilities that distinguish your firm from others. Chandler is an independent, employee -owned advisory firm. We believe this corporate structure provides unique and significant benefits to our clients. Chandler Asset Management offers the following distinctions to our clients: Expert Staff —all portfolio managers at Chandler have demonstrated their expertise and commitment to portfolio management by earning the designation of Chartered Financial Analyst (CFA). Disciplined Approach —Chandler employs a proprietary disciplined, quantitatively based process that has achieved a consistent, long-term track record. Repeatable Process —we believe that our process, proven through market cycles, can continue to provide results that meet our client's goals for return and risk management. Commitment to Customized Solutions —we are willing to apply our disciplined approach and Chandler resources to provide customized investment management services that address each client's own objectives. Client Focus —we are committed to providing a level of service that exceeds your expectations for timely reporting, comprehensive communication, and direct access to the portfolio management staff. We look forward to sharing more with you about how Chandler can deliver the services that the City requires. 13 CAt I ASSEANDLER MANAGEMENT Chandler Asset Management Proposal IN RESPONSE TO City of National City Investment Management Services `�`1`�4`l1{►t►[Irlli1""ilgi J/ rY �. r f --- r5. r 0"1111 1 I I I 1 \l � S1 /�� llilluiaiu11{1111A„`\``` Appendix CM CHANDLER ASSET MANAGEM:NT Chandler Asset Management Proposal IN RESPONSE TO City of National City Investment Management Services ,\\11kkuttuliii a tiigi//// f0. (`,rrrrrd,�tttaltil411• "?��`�f`/ Appendix A Chandler Team Biographies I� CHANDLER ASSET MANAGEMENT Chandler Asset Management Professional Team Biographies Kay Chandler, CFA President Kay Chandler is the President of Chandler Asset Management and founded the firm in 1988. Ms. Chandler is responsible for overseeing all aspects of the finn's investment process. She leads client service and communication and is focused on the strategic direction of the firm. Recognized for her expertise, she is frequently asked to speak on topics such as investment policy, portfolio management, and the risk characteristics of fixed income securities. Ms. Chandler served as the investment officer for the County of San Diego from 1975 until 1983 and then in the same position for the City of San Diego from 1983 until 1985. As a managing director at Pacific Century Advisers from 1985 until 1988, she handled over $1 billion in fixed - income assets for institutional investors. She is a co-author of The California Public Fund Investment Primer, commissioned by the California State Treasurer and published in 2005. Ms. Chandler received her B.A. from Oberlin College in 1970, and attended graduate school at San Diego State University. She is a member of the CFA Society of San Diego and holds the designation of Chartered Financial Analyst (CFA). She is a member of the Board of Governors of the San Diego Foundation, and serves as a member of the Foundation's Investment Committee. Martin Cassell, CFA Chief Executive and Investment Officer Martin Cassell is the Chief Executive and Investment Officer at Chandler Asset Management and is a principal of the firm. Mr. Cassell is responsible for defining, planning, and directing company programs. He heads implementation of the firm's investment strategies and portfolio risk management. He designed the proprietary quantitative models that drive our investment process, establishing duration, structure, and asset allocation throughout client portfolios. Mr. Cassell joined Chandler Asset Management in 1991 from the City of San Diego where he managed a $1 billion fixed income portfolio. He began his investment career in 1987 managing portfolios at World Savings and Loan. Mr. Cassell received his B.S. in finance from California State University, Hayward. He is a member of the CFA Society of San Diego and holds the designation of Chartered Financial Analyst. He is also a member of the California Association of Joint Powers' Authorities (CAJPA) finance committee. 14, CAI CHANDLER ASSET MANAGEMENT Nicole Dragoo, IACCP Chief Operating and Compliance Officer Nicole Dragoo is the Chief Operating and Compliance officer at Chandler Asset Management. Ms. Dragoo is responsible for regulatory compliance and legal matters and implements and oversees the firm's operational and administrative functions. She also directly oversees the investment operations department, which is responsible for maintaining data integrity, trade settlement, performance calculation, client reporting and portfolio accounting. Prior to joining Chandler in 2001, she served as a trading associate on the institutional fixed income sales desk at Merrill Lynch. Ms. Dragoo earned a B.A. from the University of San Diego in business economics and the J.D. from the University of San Diego School of Law. She is a member of the State Bar of California, the American Bar Association, the San Diego County Bar Association, and the Southern California Compliance Group. Additionally, Ms. Dragoo holds the designation of Investment Adviser Certified Compliance Professional (IACCP). Ted Piorkowski, CFA SVP, Portfolio Manager Ted Piorkowski is a Senior Vice President and Portfolio Manager at Chandler Asset Management. In addition to his duties as a portfolio manager, he oversees daily trading and is responsible for implementing portfolio strategy. Mr. Piorkowski leads the Portfolio Management and Sector Committees. Prior to joining Chandler Asset Management in 1999, Mr. Piorkowski served as a vice president and fund manager for Sefton Capital Management. He was responsible for the management of over $300 million in both mutual fund vehicles and individually managed institutional portfolios. From 1988 through 1994, Mr. Piorkowski managed money market and enhanced money market funds for San Diego Trust and Savings Bank and its successor, San Diego Financial Capital Management. Mr. Piorkowski earned both his B.A. and M.B.A. in finance from San Diego State University. He is a member of the CFA Society of San Diego and holds the designation of Chartered Financial Analyst. ll CHANDLER ASSET MANAGEMENT Jayson Schmitt, CFA SVP, Portfolio Manager Jayson Schmitt is a Senior Vice President and Portfolio Manager at Chandler Asset Management. He has been instrumental in the development and integration of quantitative analytic tools for the portfolio management process. Prior to joining Chandler Asset Management in 1995, Mr. Schmitt was employed as a financial analyst with USA Federal Credit Union in San Diego, managing a $100 million liquidity book. His responsibilities there also included asset/liability management. Mr. Schmitt earned his B.A. in economics from San Diego State University. Fie is a member of the CFA Society of San Diego and holds the designation of Chartered Financial Analyst. Brian Perry, CFA VP, Portfolio Manager & Investment Strategist Brian Perry joined Chandler Asset Management in 2005 and currently serves a Portfolio Manager and as the firm's Investment Strategist. Mr. Perry analyzes economic developments, conducts research on financial topics, and helps formulate investment strategy. He was also instrumental in creating a new quantitative corporate credit analysis program and in developing the firm's capital market forecasts and asset allocation models. He serves as the leader of the Interest Rate and Capital Market Expectations Committees. In addition to his investment responsibilities, Mr. Perry is responsible for Chandler's client education activities. He edits the monthly Chandler Bond Market Review, has contributed numerous articles to investment industry publications, and is a frequent speaker at investment conferences and charity events. He has appeared on NBC news to discuss the financial markets and is the author of From Piggybank to Portfolio, an investment guidebook scheduled for publication in summer, 2010. Prior to joining Chandler, Mr. Perry worked as a fixed income trader for an investment bank where he was responsible for trading government, corporate and emerging market securities. Mr. Perry earned a B.S. in finance from Villanova University, an M.B.A. in international business from National University and an M.A. in international affairs from The Fletcher School at Tufts University. He is a member of the CFA Society of San Diego and holds the designation of Chartered Financial Analyst. 18 CA% CHANDLER ASSET MANAGEMENT Shelly Henbest Credit Analyst Shelly Henbest joined Chandler Asset Management as a Credit Analyst in 2009. She is actively involved in analyzing and assessing the credit suitability of debt issuers and assisting portfolio managers in the portfolio management process. Ms. Henbest is a member of the firm's Credit Committee and is responsible for monitoring developments in the financial markets and providing fundamental economic and investment research. Ms. Henbest brings more than eight years of experience in equity research and financial analysis. Most recently, she was an Associate Analyst at Bear, Stearns & Co. Inc., focusing on the consumer/retail sector. Prior to joining Bear Stearns, Ms. Henbest was an equity research associate at C.L. King & Associates. She began her career at Ford Equity Research in San Diego as a quantitative equity analyst. Ms. Henbest was a three-year member of Institutional Investor magazines "All -America Research Team," and is a level 2 candidate in the CFA program. Ms. Henbest earned her B.A. in business economics from the University of California, Santa Barbara. Eric Young Associate, Portfolio Specialist Eric Young joined Chandler Asset Management in 2007 and is currently a Portfolio Specialist assisting the portfolio management team with their daily responsibilities. He provides support in the areas of fixed income trading, economic analysis, and credit selection. He is involved with researching securities valuation and selection, and analyzing specific portfolio information. Prior to joining Chandler Asset Management Mr. Young gained experience as an associate in internal operations with Citigroup Asset Management. Mr. Young earned his B.A. from the University of Connecticut in economics, with a minor in finance and business related studies. CM I CHANDLER ASSET MANAGEMENT Mia Corral Vice President, Client Service Mia Corral is a Vice President of Client Service. Ms. Corral is an active member of CSMFO, CMTA and GFOA. Her focus is on the development of client relationships and on client service. Ms. Corral joined Chandler Asset Management in 2004 and has more than ten years of financial industry experience. Prior to joining Chandler, Ms. Corral was employed at Nicholas Applegate Capital Management for five years, as an institutional client service assistant, then as an assistant marketing manager for the managed accounts division of the firm where she worked on marketing initiatives developing collateral material and product communication pieces. Ms. Corral earned her B.A. in speech communication with an emphasis in business communications from San Diego State University. CA% CHANDLER ASSET MANAGEMENT Chandler Asset Management Proposal IN RESPONSE TO City of National City Investment Management Services ?ilnItill) so' r�f��s/�//hl�rnwuwl►1111�,iA```% Appendix B Sample Monthly Report Sample Quarterly Report Sample GASB 40 CM ( CHANDLER ASSET MANAGEMENT Monthly Account Statement Sample Client June 1, 2010 through June 30, 2010 Chandler Team For questions about your account, please call (800) 317-4747 or Email operations@chandlerasset.com Custodian Bank of America Patty Jeffries 800-331-1630 Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Prices are provided by IDC, an independent pricing source. 6225 Lusk Boulevard San Diego, CA 92121 1 Phone 800.317.4747 1 Fax 858.546.3741 www.chandlerasset.com c� Sample Client Portfolio Summary As of 6/30/2010 �,��:��.�:a��r�-.;ram �r�:.�,•� PORTFOLIO CHARACTERISTICS Average Duration Average Coupon Average Purchase YTM Average Market YTM Average S&P Rating Average Final Maturity Average Life 1.97 3.57 % 2.34 % 0.97 % AAA 2.06 yrs 2.06 yrs ACCOUNT SUMMARY SECTOR ALLOCATION Money Market Fund FI (0.4 %) FDIC Insured US :orporate (13.1 %) i Agency J (52.9 %) Sample Client US Corporate (16.0 %) US Treasury (17.6 %) 40% 30% 20% 10% 12.4 % 4.4 % 3.2 35.0 % 24.1% 16.6 % 66,630 -13,384 33,613,050 34,307,582 34,668,320 4.4 % 0.59 % 0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5+ 1.27 % 2.04 % Maturity (Yrs) 3.37 % TOP ISSUERS Issuer % Portfolio Government of United States 17.6 % Federal Home Loan Bank 12.8 % Federal National Mortgage Assoc 12.7 % Federal Home Loan Mortgage Corp 12.5 % Federal Farm Credit Bank 11.1 % Tennessee Valley Authority 3.8 % US Bank Corp FDIC Insured 2.5 % JP Morgan FDIC Insured 2.5 % 75.5 % CREDIT QUALITY 3Yrs 5.23 % AAA (66.4 %) A (5.0 %) TSY AA (17.6%) (11.0%) rs 4.66 % Since 3/31/1991= }. 3/31/1'991''' 5.48 % 179.52 1-3 yr Treasury 0.43 % 1.16% 1.87 2.69 4.78 % 4.24 % 5.22 166.48 1-3 Year Govt/A Rated or better Corporate 0.46 % 1.03 % 1.87 3.35 4.86 % 4.35 % N/A N/A Performance shown above is for demonstration purposes only to provide you with a comprehensive sample of our standard reports. It is not intended as a representation of our performance. Past performance is not indicative of future returns. Performance on our reports is reported gross of investment management fees. Please see composite returns and additional performance related disclosures in the accompanying GIPS compliant per ce presentations. Security Description 3133XCJ38 FHLB Callable Note 1X 08/10/2006 4.7% Due 8/10/2010 Par Value/Units 725,000.00 noiaings rcepon of 6/30/10 Purchase Date Book Yield 01/05/2007 4.93 % Cost Value Book Value 719, 671.25 724,837.04 0.47 % Mkt Price Mkt YTM 100.47 Market Value Accrued Int. 728,398.80 % of. Port. Moo. 'term (yrs) Gain/Loss S&P Duration 2.10 % 13,346.04 3,561,76 Aaa 0.11 AAA 0.11 3133XGLE2 FHLB Note 5.125% Due 9/10/2010 655,000.00 05/25/2010 0.31 % 664,104.50 100.95 661,041.30 0.22 % 661,235.60 10,350.36 1.90 % Aaa 0.20 194.30 AAA 0.19 31331YGP9 FFCB Note 3.75% Due 12/6/2010 525,000.00 02/12/2008 539,105.18 101.50 532,875.00 1.51 % Aaa 0.44 2.74 % 527,182.78 0.28 % 1,367.19 5,692.22 AAA 0.43 880591DN9 Tennessee Valley Authority Note 5.625% Due 1/18/2011 31331VSK3 FFCB Note 4.875% Due 2/18/2011 500,000.00 12/27/2007 524,575.00 102.87 514,361.00 1.49 % Aaa 0.55 3.90 % 504,422.18 0.39 % 12,734.38 9,938.82 AAA 0.54 650,000.00 04/22/2008 684,187.40 102.81 668,281.25 1.92 % Aaa 0.64 2.92 % 657,692.99 0.42 % 11,706.77 10,588.26 AAA 0.62 3137EABF5 FHLMC Note 3.25% Due 2/25/2011 750,000.00 11/05/2008 755,187.75 101.75 763,125.00 2.18 % Aaa 0.66 2.93 % 751,481.33 0.56 % 8,531.25 11,643.67 AAA 0.64 3133XENX3 FHLB Note 4.875% Due 3/11/2011 31331YG46 FFCB Note 2.625% Due 4/21/2011 500,000.00 02/12/2007 496,305.00 103.09 515,469.00 1.48 % Aaa 0.70 5.08 % 499,370.48 0.43 % 7,447.92 16,098.52 AAA 0.68 775,000.00 Various 769,872.50 101.78 788,805.07 2.24 % Aaa 0.81 2.68 % 774,726.95 0.41 % 3,955.74 14,078.12 AAA 0.80 3133XFJY3 FHLB Note 5.25% Due 6/10/2011 475,000.00 09/17/2007 485,136.50 104.34 495,633.05 1.41 % Aaa 0.95 4.62 % 477,562.05 0.63 % 1,454.69 18,071.00 AAA 0.93 31331VJ80 FFCB Note 5.375% Due 7/18/2011 580,000.00 Various 626,076.69 105.13 609,725.00 1.77 % Aaa 1.05 2.42 % 597,198.17 0.48 % 14,115.35 12,526.83 AAA 1.01 31331Y3P3 FFCB Note .G 3.5% Due 10/3/2011 675,000.00 Various 702,917.68 103.69 699,890.63 2.00 % Aaa 1.26 0.80 % 697,741.74 0.55 % 5,775.00 2,148.89 AAA 1.23 31359MLS0 FNMA Note 5.375% Due 11/15/2011 550,000.00 02/24/2009 601,718.70 106.56 586,093.75 1.67 % Aaa 1.38 1.82 % 576,145.81 0.58 % 3,777.43 9,947.94 AAA 1.33 31359M5H2 FNMA Note 5% Due 2/16/2012 500,000.00 Various 544,783.50 106.97 534,844.00 1.54 % Aaa 1.63 1.71 % 526,018.97 0.69 % 9,375.00 8,825.03 AAA 1.55 3137EAARO FHLMC Note 4.75% Due 3/5/2012 620,000.00 Various 656,781.58 106.84 662,431.56 1.90 % Aaa 1.68 2.74 % 639,891.28 0.65 % 9,489.45 22,540.28 AAA 1.61 3133XTAW6 FHLB Note 2.25% Due 4/13/2012 665,000.00 05/08/2009 672,913.50 102.75 683,287.50 1.94 % Aaa 1.79 1.83 % 669,831.09 0.70 % 3,241.88 13,456.41 AAA 1.75 31398AWK4 FNMA Note 1.875% Due 4/20/2012 675,000.00 05/08/2009 675,905.85 102.09 689,133.15 1.96 % Aaa 1.81 1.83 % 675,555.31 0.71 % 2,496.09 13,577.84 MA 1.77 3133XTS49 FHLB Note 1.875% Due 6/20/2012 685,000.00 Various 685,990.56 102.19 699,984.38 1.98 % Aaa 1.98- 1.75 % 686,616.38 0.76 % 392.45 13,368.00 AAA 1.94 31331X3S9 FFCB Note 4.5% Due 10/17/2012 31359MQV8 FNMA Callable Note 1X 02/21/2006 4.75% Due 2/21/2013 880591 CWO Tennessee Valley Authority Note 6% Due 3/15/2013 550,000.00 06/03/2008 564,888.50 108.16 594,859.65 1.70 % Aaa 2.30 3.82 % 557,831.63 0.90 % 5,087.50 37,028.02 AAA 2.18 550,000.00 10/26/2009 597,423.20 109.56 602,593.75 1.73 % Aaa 2.65 2.05 % 587,766.54 1.07 % 9,434.03 14,827.21 MA 2.47 700,000.00 06/29/2010 791,924.00 112.91 790,352.50 2.27 % Aaa 2.71 1.07 % 791,831.05 1.15 % 12,'366.67 (1,478.55) AAA 2.50 Chandler Asset Management - CONFIDENTIAL Page 2 Execution Time: 7/2/2010 10:46:45 AM CI% I Sample Client Transaction Ledger 5/31/10 Thru 6/30/10 Transaction Type h Settlement Date CUSIP Quantity Security Description Price Acq/Disp Yield Amount Interest Pur/Sold Total Amount Gain/Loss Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase Purchase 3Purchase n Purchase Purchase Purchase Security Contribution 06/06/2010 06/09/2010 06/10/2010 06/15/2010 06/15/2010 06/16/2010 06/17/2010 06/20/2010 06/21/2010 06/23/2010 06/26/2010 06/28/2010 097101802 097101802 097101802 097101802 097101802 097101802 097101802 097101802 097101802 097101802 097101802 09247XAF8 06/28/2010 713448BG2 06/29/2010 617446HR3 06/30/2010 097101802 06/30/2010 880591CW0 Subtotal 06/21/2010 097101802 Subtotal 9,843.75 Columbia Trsy Reserve Trust Class 272 9,000.00 Columbia Trsy Reserve Trust Class 272 12,468.75 Columbia Trsy Reserve Trust Class 272 30,787.50 Columbia Trsy Reserve Trust Class 272 550,000.00 Columbia Trsy Reserve Trust Class 272 9,531.25 Columbia Trsy Reserve Trust Class 272 850,000.00 Columbia Trsy Reserve Trust Class 272 6,421.88 Columbia Trsy Reserve Trust Class 272 3,984.38 Columbia Trsy Reserve Trust Class 272 5,015.00 Columbia Trsy Reserve Trust Class 272 9,031.25 Columbia Trsy Reserve Trust Class 272 350,000.00 Blackrock Inc Note 2.25% Due 12/10/2012 325,000.00 Pepsico Inc. Note 4.65% Due 2/15/2013 335,000.00 Morgan Stanley Note 5.3% Due 3/1/2013 5,625.00 Columbia Trsy Reserve Trust Class 272 700,000.00 Tennessee Valley Authority Note 6% Due 3/15/2013 3,211,708.76 250.00 Columbia Trsy Reserve Trust Class 272 250.00 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 102.191 1.34 % 108.399 1.39 % 104.232 3.62 % 1.000 113.132 1.07 % 1.000 9,843.75 0.00 9,000.00 0.00 12,468.75 0.00 30,787.50 0.00 550,000.00 0.00 9,531.25 0.00 850,000.00 0.00 6,421.88 0.00 3,984.38 0.00 5,015.00 0.00 9,031.25 0.00 357,668.50 393.75 352,296.75 5,583.23 349,177.20 5,819.69 9,843.75 9,000.00 12,468.75 30,787.50 550,000.00 9,531.25 850,000.00 6,421.88 3,984.38 5,015.00 9,031.25 358,062.25 357,879.98 354,996.89 5,625.00 0.00 5,625.00 791,924.00 12,250.00 804,174.00 3,352,775.21 24,046.67 3,376,821.88 250.00 0.00 250.00 0.00 250.00 250.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 TOTAL ACQUISITIONS 3,211,958.76 3,353,025.21 24,046.67 3,377,071.88 0.00 Sale Sale Sale 06/28/2010 097101802 06/29/2010 097101802 06/29/2010 38141 GCG7 715 942 23 20,973.96 310,000.00 Columbia Trsy Reserve Trust Class 272 Columbia Trsy Reserve Trust Class 272 Goldman Sachs Group Inc Note 5.7% Due 9/1/2012 1.000 1.000 105.881 2.89 % 715,942.23 20,973.96 328,231.10 0.00 0.00 5,791.83 715, 942.23 20,973.96 334,022.93 0.00 0.00 -4,093.08 nl JI i •• ♦ r1111GV?GAISus CUSIP Security Description 06052AAA9 Bank of America Corp FDIC Guaranteed Note 1.7% Due 12/23/2010 IuI UIttt; CdfI1�U 5/ Thru 6/30/10 Trade Date cook Value: Begin Prior Accrued Accr. Of Discount Settle Date Book Value: Acq Inc. Received Amort. Of Premium Units Book Value: Disp Ending Accrued Net Accret/Amort Book Value: End Total Interest Income Earned 12/19/2008 12/23/2008 590,000.00 590,000.00 0.00 0.00 590,000.00 4,402.06 5,015.00 222.89 835.83 0.00 0.00 0.00 835.83 Unreal G!L Total Income 0.00 835.83 06406HBE8 Bank of New York Note 4.95% Due 11 /01 /2012 05/18/2010 05/21/2010 490,000.00 530,813.84 0.00 0.00 529,428.75 2,021.25 0.00 4,042.50 2,021.25 0.00 1,385.09 (1,385.09) 636.16 0.00 636.16 084670AS7 Berkshire Hathaway Note 4.75% Due 05/15/2012 533,930.74 1,076.67 0.00 07/29/2009 0.00 0.00 1,005.50 08/03/2009 0.00 3,095.42 (1,005.50) 510, 000.00 532,925.24 2,018.75 1,013.25 0.00 1,013.25 09247XAF8 Blackrock Inc Note 2.25% Due 12/10/2012 06/23/2010 06/28/2010 350,000.00 0.00 357,668.50 0.00 357,642.82 0.00 (393.75) 459.38 65.63 0.00 25.68 (25.68) 39.95 0.00 39.95 166751AK3 ChevronTexaco Corp Note 3.45% Due 03/03/2012 502,941.55 4,132.33 0.00 07/08/2009 0.00 0.00 605.69 07/13/2009 0.00 5,541.08 (605.69) 490, 000.00 502,335.86 1,408.75 803.06 0.00 803.06 31331VJ80 FFCB Note 5.375% Due 07/18/2011 598,548.82 11, 517.43 0.00 Various 0.00 0.00 1,350.65 Various 0.00 14,115.35 (1,350.65) 580, 000.00 597,198.17 2,597.92 1,247.27 0.00 1,247.27 31331VSK3 FFCB Note 4.875% Due 02/18/2011 658,687.78 9,066.15 0.00 04/22/2008 0.00 0.00 994.79 04/23/2008 0.00 11, 706.77 (994.79) 650,000.00 657,692.99 2,640.62 1,645.83 0.00 1,645.83 31331X3S9 FFCB Note 4.5% Due 10/17/2012 558,111.67 3,025.00 0.00 06/03/2008 0.00 0.00 280.04 06/05/2008 0.00 5,087.50 (280.04) 550, 000.00 557,831.63 2,062.50 1,782.46 0.00 1,782.46 31331Y3P3 FFCB Note 3.5% Due 10/03/2011 699,228.13 3,806.25 0.00 Various 0.00 0.00 1,486.39 Various 0.00 5,775.00 (1,486.39) 675,000.00 697,741.74 1,968.75 482.36 0.00 482.36 31331YG46 FFCB Note 2.625% Due 04/21/2011 774,699.09 2,260.42 346.81 Various 0.00 0.00 318.95 Various 0.00 3,955.74 27.86 775, 000.00 774,726.95 1,695.32 1,723.18 0.00 1,723.18 Chandler Asset Management . CONFIDENTIAL Page 9 Execution Time. 7/2/2010 10:46:45 AM Sample Client Cash Flow Report From 06/30/2010 Transaction Payment Date Type CUSIP Quantity Security Description Principal Amount Income Total Amount 07/07/2010 Interest 07/18/2010 Interest 07/18/2010 Interest 07/28/2010 Interest 07/31/2010 Interest 07/31/2010 Interest 07/31/2010 Interest 3137EABX6 31331VJ80 880591 DN9 3137EACD9 912828JZ4 949746NY3 912828FN5 770,000.00 FHLMC Note 2.5% Due 1/7/2014 580,000.00 FFCB Note 5.375% Due 7/18/2011 500,000.00 Tennessee Valley Authority Note 5.625% Due 1/18/2011 700,000.00 FHLMC Note 3% Due 7/28/2014 800,000.00 US Treasury Note 1.75% Due 1/31/2014 330,000.00 Wells Fargo Company Note 4.375% Due 1/31/2013 695,000.00 US Treasury Note 4.875% Due 7/31/2011 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9,625.00 15,587.50 14,062.50 10,500.00 7,000.00 7,218.75 16,940.63 9,625.00 15,587.50 14,062.50 10, 500.00 7,000.00 7,218.75 16,940.63 Jul 2010 08/01/2010 Interest 08/05/2010 Interest 9.D 08/10/2010 Maturity 08/13/2010 Interest 08/15/2010 Interest 08/16/2010 Interest 08/18/2010 Interest 08/21 /2010 Interest 08/25/2010 Interest 78387GAH6 31398AV D 1 3133XCJ38 36962G4E1 713448BG2 31359M5H2 31331VSK3 31359MQV8 3137EABF5 310,000.00 625,000.00 725,000.00 FHLB Callable Note 1X 08/10/2006 4.7% Due 8/10/2010 535,000.00 325,000.00 Pepsico Inc. Note 4.65% Due 2/15/2013 500,000.00 FNMA Note 5% Due 2/16/2012 650,000.00 FFCB Note 4.875% Due 2/18/2011 550,000.00 FNMA Callable Note 1X 02/21/2006 4.75% Due 2/21/2013 750,000.00 SBC Communications Note 5.875% Due 2/1/2012 FNMA Note 2.75% Due 2/5/2014 General Electric Capital Corp Note 3.5% Due 8/13/2012 FHLMC Note 3.25% Due 2/25/2011 0.00 0.00 0.00 725,000.00 0.00 0.00 0.00 0.00 0.00 0.00 80,934.38 9,106.25 8,593.75 17,037.50 9,362.50 7,556.25 12,500.00 15,843.75 13, 062.50 12,187.50 80,934.38 9,106.25 8,593.75 742,037.50 9,362.50 7,556.25 12,500.00 15,843.75 13,062.50 12,187.50 Aug 2010 09/01/2010 Interest 617446HR3 09/03/2010 Interest 166751AK3 335,000.00 Morgan Stanley Note 5.3% Due 3/1/2013 490,000.00 ChevronTexaco Corp Note 3.45% Due 3/3/2012 725,000.00 0.00 0.00 105,250.00 8,877.50 830,250.00 8,877.50 8,452.50 8,452.50 Sep 2010 655,000.00 123,708.13 778,708.13 CAI Sample Client June 30, 2010 COMPLIANCE WITH INVESTMENT POLICY Assets managed by Chandler Asset Management are in full compliance with State law and with the Client's investment policy. S4 1 If 1k V.H}.�f).yy"�a�vd t �M. �.A Y�kL 1"F Y'R'{lul �, F Y fi hWl?i.Yi4 LY}'$ ) a\ M lis4Yi h'R.L` l.ps477''" ''W $,dye 'A4 e '�'S }yiry wJ h � 1 Ey fT n�" 0.: i T (4 i1J. 6 z•Y ti.+ks� F' d.flih^"ay `. '' .r rr.. 1,9 e` � � bl P,..+.`r.. a#' W+ 9 C n �� M- lk Treasury/Agency issues No Limit Complies Banker's Acceptances Al/P1; 530%; 180 days Complies Commercial Paper Al/P1; 510% per issuer Complies Max. maturity< 270 days 25% maximum Complies Repurchase Agreements 530 days Complies Rev. Repo Agreements <_30 days; 510% Complies Negotiable CDs 30%; A1/P1; 1 year; 510% per issuer; US banks w/ $1 billion in assets Complies Time CDs Collateralized/insured Complies Medium Term Notes A -rated; 4-year max. maturity; 30% maximum Complies Mortgage Pass Thrus 20% combined with asset -backed Complies Asset -backed securities AAA; 55 years; 20% combined with mortgage pass-thrus Complies LAIF Not used by outside adviser. Complies OCIP; LA County Pool Not used by outside adviser. Complies Inverse floaters, range notes Prohibited Complies Interest only strips Prohibited Complies Zero interest accruals Prohibited Complies Maximum maturity 5 years Complies CM I CHANDLER ASSET MANAGEMENT Investment Report Sample Client Period Ending March 31, 2010 6225 Lusk Blvd J San Diego, CA 92121 1 Phone 800.317.4747 '' 1 Fax `.`858.546 3741 www.chandlerasset.com w a Q TABLE OF CONTENTS SECTION 1 SECTION 2 SECTION 3 Economic Update Account Profile Portfolio Holdings c.I SECTION 1 ECONOMIC UPDATE Gv I ECONOMIC UPDATE • The severe global recession appears to have ended. While unemployment remains high, manufacturing activity is picking up, and the combined effect of massive fiscal and monetary stimulus has helped to ease credit conditions. Market participants are now focusing on the strength and durability of a potential economic recovery and possible structural changes in the global economy arising from the financial crisis. • The Federal Reserve kept the federal funds rate at a target range of 0.00% to 0.25% at its March 16th meeting. The Fed noted that, "the labor market is stabilizing" and that some business spending "has risen significantly." Nevertheless, the Fed still expects that, conditions "are likely to warrant exceptionally low levels of the federal funds rate for an extended period." The next regularly scheduled FOMC meeting is April 28th, 2010. • The yield curve remains very steep as longer -term rates are much higher than shorter -term rates. MI EMPLOYMENT • • MEMEL,. 400 200 0 -200 o -400 -600 -800 -1000 Non -farm Payroll (000's) 00 00 00 00 00 00 00 rn 00 00 rn 0 0 Source: Bloomberg 12 10 6 0 6 0 0 4 2 0 Unemployment Rate ao co 00 m m a> 00 w o> a> w o 0 0 0 0 0 0 0 0 0 0 0 0 The March employment report showed that the economy gained 162,000 jobs and the previous two months' reports were revised upwards. Taken together, the first quarter of 2010 showed the first quarterly increase in employment since Q4 2007. The unemployment rate remained at 9.7% for the third consecutive month. Although overall employment remains weak, it does appear that the labor market is gradually stabilizing. The trend in the unemployment rate is likely to be the key to the strength and durability of the economic recovery. CA CONSUMER Source: Bloomberg Single-family housing starts declined 0.6% in February to 499,000. Recent data indicates a housing market that has stabilized, but remains weak. In March, Retail Sales rose 7.6% on a year -over -year basis. Consumer spending appears to have rebounded from the depths of the recession, but has not yet reached the heights of the previous economic expansion. Consumers remain somewhat cautious due to job losses, home price declines, and a general tightening of credit standards. CI MANUFACTURING 60 55 50 45 40 35 30 Institute of Supply Management Purchasing ManagerIndex • 0 o o 0 0 0 0 0 \ \ \ \ CO 0 0) corn 0 0 0 M It) rn rn 0 0 n � rn 0 0 0 \ 1 V Expanding Contracting Source: Bloomberg During March, the ISM Manufacturing Index increased to 59.6 from 56.5 in February. ISM readings below 50 indicate that the manufacturing sector of the economy is contracting; readings above 50 indicate that the manufacturing sector is in an expansionary phase. With the ISM index above 50 for the eighth consecutive month, the manufacturing sector has entered an expansionary phase. Ca MANUFACTURING 82 80 78 76 74 0 ..+ 72 C Lm 70 68 66 64 62 Capacity Utilization ao 0o co COco co rn 0 rn rn 0 CD 0 0 0 0 0 0 0 0 0 0 0 0 CO- 00 O ( V Co DO O N N Source: Bloomberg Capacity Utilization, which is production divided by capacity, increased to 72.7% in February from 72.5% in January. Despite recent increases, current capacity utilization readings represent extreme lows and are one factor cited by economists who believe inflation will not significantly increase in the near future. INFLATION 6.0 5.0 4.0 3.0 4. • 2.0 • 1.0 u. CPI Y-O-Y % Change 0 0 CO 0 CO CO 0 0 0 0)0 0 0 S' 0 0 C) )L) n 0 o) u) 0) v) Source: Bloomberg a C 3.0 2.5 2.0 • 1.5 2 - 1.0 0.5 0.0 Core CPI Y-O-Y % Change ao ro 0 0 cM vZ 0 0 CO CDC 0 0 0 C r— 0) M In March, the CPI showed that consumer prices increased 2.3% on a year -over -year basis. The year -over -year Core CPI (CPI less food and energy) increased at a 1.1% rate. Tame inflation readings reduce the pressure on the Fed to aggressively reverse their historically easy monetary policy. Despite a strengthening economy and an increased money supply, many economists believe that inflation will remain moderate over the next 12 months. CA GDP 8.0 6.0 4.0 2.0 0.0 -2.0 -4.0 -6.0 -8.0 GDP Qtrly % Change 1 . III � �I . III 0 o 0 0 0 0 0 0 0 0 0 0 0 0 0 CO Q) N M CO 6) N c CO O> N c'O CD (A N T T T Source: Bloomberg The final reading for Q4 2009 Gross Domestic Product (GDP) reported that the economy grew at a revised annual rate of 5.6%. This was a significant improvement from the Q3 2009 reading of 2.2% and represented the second consecutive quarter of positive GDP growth. Many market participants believe that economic growth will continue, but uncertainty remains as to the durability of the economic recovery. Possible positive factors that might contribute to future GDP growth include inventory replenishment by businesses, continued fiscal and monetary stimulus, and pent up consumer demand. INTEREST RATES Yield on the Two -Year Note March 2008 through March 2010 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% ao m ao eo ao 0o ro w m rn rn rn rn o s rn rn rn rn rn o 0 0 4 4 4 4 4 4 4 V g V Q 4 4 4 4 4 V 4 q R f0 > > Oai o m `° n m > > m o . LL Q 4Q fn 0 Z 4Q (/) Z �o m '7 LL Source' Bloomberg The yield on the two-year note moved higher in March as market participants focused upon stronger economic data and continued record -high issuance of Treasury securities. CA I YIELD CURVES December 31, 2009 and March 31, 2010 5.00 4.50 4.00 3.50 3.00 2.50 w 2.00 a 1.50 1.00 0.50 0.00 12/31/09 -3/31/10 1' 0 0 7 r 2 2 N �!] O ro Source: Bloomberg Over the last three months, interest rates have fluctuated widely but currently stand near year-end levels. The yield curve remains steep as the yield on longer -term Treasuries is much higher than the yield on shorter -term Treasuries. C SECTION 2 ACCOUNT PROFILE at OBJECTIVES Investment Objectives The investment objectives of the Sample Client are first, to preserve principal in the overall portfolio; second, to provide liquidity; and third, to earn a market rate of return. Chandler Asset Management Performance Objectives Strategy The performance objective for the Sample Client is to achieve an annual total return on its portfolio which exceeds the return on a market index of one -to -five year government securities. In order to achieve its objective, we invest the Sample Clients funds in high -quality money market instruments, short term government securities, and AA or higher rated corporate medium term notes with a maximum maturity of five years. Cal COMPLIANCE • • Sample Client March 31, 2010 COMPLIANCE WITH INVESTMENT POLICY Assets managed by Chandler Asset Management are in full compliance with State lawand vtith the City's investment policy. b r S'T-iau y Yiai4 5 Wry 1 .'44 y .Y Y {'.'R r. a " 3 t =i.' L kle' �i * : hw v Nf i�-s3, � ± � s k l! #m vk 'n2 � °Y7 a G4 #Y� y' % 4cse{) � 4 3 y d : � f � Y t Y k. �eryy} MPi� �' t;Fs..' :Aqi.+ ,{ a a1p 4i. �v. Y s• �. Y4'•RSM� ®: k`t=� k" 'a�;.'�i ' . .4� am ', y� y�si 5 d x�. ��b�Mj . :ilf No � �itif 4afi }t gm N'^{. 'dySit z$ i irk f`" � R:�?1 d r R'i%", a Ev4( �! iyi�. '�[ �� Ak :�.v • 'I' U.S. Treasury Issues No limitations Complies Government Agencies 75% maximum Complies Banker's Acceptances <180 days; 20% maximum Complies Commercial Paper A-1 and P-1; <270 days; 25% maximum; 10% per issuer Complies Medium Term Notes A2/A rated or better; 30% maximum; 5% per issuer; no limit for investment adviser Complies Money Market Funds AAA/Aaa rated; 20% maximum; 10% per fund Complies Repurchase Agreements Not used by investment adviser Complies LAIF Not used by investment adviser Complies Maximum maturity 5 years Complies 5'. at ACCOUNT PROFILE PORTFOLIO CHARACTERISTICS Sample Client 3/31 /2010 12/31/09 Benchmark* Portfolio Portfolio Average Maturity (yrs) 2.54 2.66 2.61 Modified Duration 2.39 2.49 2.45 Average Book Yield n/a 3.28% 3.43% Average Market Yield 1.37% 1.65% 1.69% Average Quality AAA AAA AAA Total Market Value 189,986,865 189,759,638 * 1-5 yr G ovt During the last three months, portfolio activity included the net withdrawal of $1.83 million and other activity included a series of rebalancing transactions in order to maintain the desired portfolio's structure and duration target. Newly purchased securities included Treasury, Agency, Corporate, and FDIC Insured Corporates with maturities ranging from March 2012 through February 2015. We continued to emphasize IongerAgency and Corporate bond holdings to benefit from the financial market recovery. C ,I SECTOR DISTRIBUTION Agency 42.4% March 31, 2010 FDIC Insured US Corporate 21.8% US Corporate 18.5% US Treasury 17.3% Agency 48.8% December 31, 2009 FDIC Insured US Corporate 21.6% US Corporate 10.9% US Treasury 18.7% The portfolio sector allocation has changed moderately as we increased our holdings in Corporates by 7.6% and decreased our holdings in Agencies and Treasuries by 6.4% and 1.4%, respectively. CAt I QUALITY DISTRIBUTION 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 6"' 20.0% 10.0% 0.0% Sample Client March 31, 2010 vs. December 31, 2009 US Treasury AAA AA A ■ 3/31/10 ■ 12/31/09 <A NR US Treasury AAA AA A <A NR 3/31/10 17.3% 64.2% 11.5% 7.0% 0.0% 0.0% 12/31/09 18.7% 70.4% 6.9% 4.0% 0.0% 0.0% Source: S&P Ratings DURATION DISTRIBUTIC 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Sample Client Portfolio Compared to the Benchmark as of March 31, 2010 0-0.25 0.25-0.5 0.5-1 1 -2 2-3 3-4 • Portfolio • Benchmark* 4-5 5+ 0-0.25 0.25-0.5 0.5-1 1-2 2-3 3-4 4-5 5+ Portfolio 2.7% 0.9% 4.2% 20.8% 39.2% 25.5% 6.7% 0.0% Benchmark* 1.7% 1.0% 2.3% 35.7% 28.2% 18.9% 12.1% 0.0% * 1-5 yr Govt In order to take advantage of the historically steep yield curve, we have positioned the portfolio duration to be slightly longer than that of the Sample Client's 1-5 Year Government benchmark. CA) INVESTMENT PERFORMANCE 7.00% 6.00% 5.00% 4.00% 3.00% cita 2.00% 1.00% 0.00% 12 months 2 years Sample Client Period Ending March 31, 2010 Total Rate of Return Annualized Since Inception July 31, 2006 3 years • Sample Client 5 years • 1-5 yr Govt 10 Years Since Inception Sample Client 1-5 yr Government Annualized 3 months 12 months 2 years 3 years 5 years 10 Years Since Inception 1.09% 3.62% 4.31 % 5.83% N/A N/A 5.88% 0.89% 1.65% 3.27% 5.46% N/A N/A 5.55% Total rate of return: A measure of a portfolio's performance over time. It is the intemal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains and losses in the portfolio. cI SECTION 3 PORTFOLIO HOLDINGS CAI ISSUERS Sample Client As of March 31, 2010 Issue Name Investment Type Portfolio Govemment of United States Federal Home Loan Mortgage Corp Federal National Mortgage Association Federal Farm Credit Bank Federal Home Loan Bank Tennessee Valley Authority JP Morgan FDIC Insured General Electric Co FDIC Insured Goldman Sachs FDIC Insured PNCFunding FDIC Insured US Bank Corp FDIC Insured Wells Fargo Corp FDIC Insured Bank of America Corp FDIC Insured Wal-Mart Stores General Electric Co ChevronTexaco Corp Bank of New York Berkshire Hathaway JP Morgan Chase & Co Goldman Sachs Inc. Hewlett-Packard Corp Procter & Gamble Company Wells Fargo Corp IBM Corp Northern Trust Corp AT&T Corporation General Dynamics Corp Pfizer Inc. ConocoPhillips US Treasury Agency Agency Agency Agency Agency FDIC Insured US Corporate FDIC Insured US Corporate FDIC Insured US Corporate FDIC Insured US Corporate FDIC Insured US Corporate FDIC Insured US Corporate FDIC Insured US Corporate US Corporate US Corporate US Corporate US Corporate US Corporate US Corporate US Corporate US Corporate US Corporate US Corporate US Corporate US Corporate US Corporate US Corporate US Corporate US Corporate 17.29% 10.95% 10.61% 8.52% 7.70% 4.65% 3.19% 3.14% 3.12% 3.10% 3.09% 3.08% 3.03% 1.87% 1.60% 1.47% 1.40% 1.27% 1.09% 1.08% 1.03% 1.02% 1.00% 1.00% 0.99% 0.98% 0.94% 0.93% 0.86% Total CUSIP 31331VSK3 aampie e.uenu ount#10001 Security Description FFCB Note 4.875% Due 2/18/2011 Par Value/Units 1,900,000.00 notatngs mepori f 3/31/10 Purchase Date Book Yield 12/12/2007 3.80 % Cost Value Book Value 1,960,832.30 1,960,832.30 Mkt Price Mkt YTM 103.78 0.56 % Market Value % of Port. Moody Term (yrs) Accrued Int. Gain/Loss S&P Duration 1,971,844.70 11, 063.54 1.04 % 11,012.40 Aaa 0.89 AAA 0.87 3133XECU1 FHLB Note 4.625% Due 2/18/2011 3,160,000.00 04/03/2008 2.72 % 3,324,898.28 3,324,898.28 103.56 0.56 % 3,272,575.00 17,456.81 1.73 % (52,323.28) Aaa AAA 0.89 0.87 31359MHK2 FNMA Note 5.5% Due 3/15/2011 2,500,000.00 12/13/2007 3.90 Vo 2,620,855.00 2,620,855.00 104.69 0.57 % 2,617,187.50 6,111.11 1.38 % (3,667.50) Aaa AAA 0.96 0.94 31331VJ80 FFCB Note 5.375% Due 7/18/2011 4,500,000.00 Various 5.27 % 4,516,510.50 4,516,510.50 105.97 0.74 % 4,768,596.00 49,946.88 2.54 % 252,085.50 Aaa AAA 1.30 1.26 31359MZ30 FNMA Note 5% Due 10/15/2011 2,100, 000.00 01/09/2008 3.56 % 2,205,705.60 2,205,705.60 106.25 0.90 % 2,231,250.00 48,416.67 1.20 % 25,544.40 Aaa AAA 1.54 1.46 31359MLS0 FNMA Note 5.375% Due 11/15/2011 2,425,000.00 12/12/2007 3.91 % 2,552,719.90 2,552,719.90 107.09 0.96 % 2,597,924.65 49,?40.97 1.39 % 44,304.75 Aaa AAA 1.63 1.54 3134A4JT2 FHLMC Note 5.75% Due 1/15/2012 2,300,000.00 10/04/2007 4.59 % 2,402,198.20 2,402,198.20 108.19 1.11 % 2,488,312.50 27,919.44 1.32 % 86,114.30 Aaa AAA 1.79 1.70 3137EAAR0 FHLMC Note 4.75% Due 3/5/2012 3,000,000.00 03/06/2008 3.27 % 3,164,463.00 3,164,463.00 106.88 1.13 % 3,206,250.00 10,291.67 1.69 % 41,787.00 Aaa AAA 1.93 1.85 31398ABX9 FNMA Note 4.875% Due 5/18/2012 1,525,000.00 03/06/2008 3.33 % 1,616, 718.08 1,616,718.08 107.53 1.28 1,639,052.33 27,465.89 0.88 % 23,134.25 Aaa AAA 2.13 2.01 880591DT6 Tennessee Valley Authority Note 6.79% Due 5/23/2012 2,350,000.00 06/12/2008 4.35 % 2,555,225.50 2,555,225.50 111.47 1.35 % 2,619,448.65 56,734.22 1.41 % 64,223.15 Aaa AAA 2.15 1.98 3134A4QD9 FHLMC Note 5.125% Due 7/15/2012 1,250,000.00 07/12/2007 5.39 % 1,235,603.75 1,235,603.75 108.47 1.35 % 1,355,060.00 13,524.31 0.72 % 120,256.25 Aaa AAA 2.29 2.16 3133XML66 FHLB Note 4.625% Due 10/10/2012 3,000,000.00 03/06/2008 3.42 % 3,152,538.00 3,152,538.00 107.81 1.46 % 3, 234, 375.00 65,006.25 1.74 81, 837.00 Aaa AAA 2.53 2.35 31331X3S9 FFCB Note 4.5% Due 10/17/2012 4,250,000.00 Various 3.45 % 4,438,295.25 4,438,295.25 107.28 1.57 % 4, 559, 455.25 87,125.00 2.45 % 121,160.00 Aaa AAA 2.55 2.37 880591 C WO Tennessee Valley Authority Note 6% Due 3/15/2013 2,600,000.00 Various 3.88 % 2,826,993.00 2,826,993.00 112.20 1.75 % 2, 917,122.00 6,933.34 1.54 % 90,129.00 Aaa AAA 2.96 2.74 3133XQU34 FHLB Note 3.625% Due 5/29/2013 3,500,000.00 06/04/2008 3.93 % 3,451,822.50 3,451,822.50 105.75 1.75 % 3, 701, 250.00 42,996.53 1.97 249,427.50 Aaa AAA 3.16 2.96 31339X2M5 FHLB Note 3.875% Due 6/14/2013 2,000,000.00 08/05/2008 4.12 % 1,978,320.00 1,978,320.00 106.06 1.91 % 2,121,250.00 23,034.72 1.13 % 142,930.00 Aaa AAA 3.21 2.99 3137EABMO FHLMC Note 3.75% Due 6/28/2013 3, 000, 000.00 Various 4.00 % 2,966,425.50 2,966,425.50 105.30 1.90 % 3,173,904.00 29,062.50 1.69% 207,478.50 Aaa AAA 3.25 3.03 31398ASD5 FNMA Note 3.875% Due 7/12/2013 4,250,000.00 11/05/2008 3.65 % 4,290,859.50 4,290,859.50 106.47 1.83 % 4,524,924.00 36,1139.76 2.40 % 234,064.50 Aaa AAA 3.28 3.07 3134A4TZ7 FHLMC Note 4.5% Due 7/15/2013 4,250,000.00 11/05/2008 3.68 % 4,399,302.50 4,399,302.50 108.16 1.93 4,596,, 42.75 40,375.00 2.44 % 197,340.25 Aaa AAA 3.29 3.05 880591 DW9 Tennessee Valley Authority Note 4.75% Due 8/1/2013 2,950,000.00 Various 3.90 3,059,586.00 3,059,586.00 108.66 2.05 % 3,205349.05 23,354.17 1.70% 145,763.05 Aaa AAA 3.34 3.08 Chandler Asset Management - CONFIDENTIAL Execution Time: 5/7/2010 9:57:00 AM AIR 1 Sample Client Account#10001 Holdings Report As of 3/31/10 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. of Port. Gain/Loss Moody S&P Term (yrs) Duration 3133XSAE8 FHLB Note 3.625% Due 10/18/2013 2,000,000.00 11/10/2009 2.10 % 2,114,118.00 2,114,118.00 105.63 1.98 % 2,112,500.00 32,826.39 1.13 % Aaa 3.55 (1,618.00) AAA 3.28 31398AUJ9 FNMA Note 2.875% Due 12/11/2013 2,250,000.00 02/04/2009 2,269,489.50 2.68 % 2,269,489.50 102.53 2,306,954.25 1.22 % Aaa 2.16 % 19,765.63 37,464.75 AAA 3.70 3.47 3137EABX6 FHLMC Note 2.5% Due 1/7/2014 4,250,000.00 02/25/2009 4,202,459.50 2.75 % 4,202,459.50 101.16 4,299,270.25 2.28 % Aaa 3.78 2.18 % 24,791.67 96,810.75 AAA 3.56 31398AXJ6 FNMA Note 2.5% Due 5/15/2014 4,000,000.00 08/04/2009 3,932,956.00 2.88 % 3,932,956.00 100.56 4,022,500.00 2.14 % Aaa 4.13 2,36 % 37,777.78 89,544.00 AAA 3.86 3137EACD9 FHLMC Note 3% Due 7/28/2014 1,500,000.00 10/09/2009 1,530,936.00 2.54 % 1,530,936.00 102.22 1,533,282.00 0.81 % Aaa 4.33 2.46 % 7,8'.75.00 2,346.00 AAA 4.02 31331GL80 FFCB Note 3% Due 9/22/2014 4,675,000.00 Various 4,783,432.70 2.48 % 4,783,432.70 101.50 4,745,125.00 2.50 % Aaa 4.48 2.64 % 3,5;06.25 (38,307.70) AAA 4.17 Total Agency 75,485,000.00 3.56 % 77,553,264.06 77,553,264.06 79,822,184.88 42.43 % Aaa 2.74 1.60 % 798,741.50 2,268,840.82 AAA 2.56 91160HAA5 US Bancorp FDIC Guaranteed Note 2.25% Due 3/13/2012 5,750,000.00 03/10/2009 2.25 % 5, 749, 310.00 5, 749, 310.00 101.89 5,858,910.75 3.09 % Aaa 1.95 1.26 % 6,468.75 109,600.75 AAA 1.91 38146FAA9 Goldman Sachs FDIC Guaranteed Note 5,625,000.00 3.25% Due 6/15/2012 Various 5,723,309.75 2.68 % 5,723,309.75 104.27 1.28 % 5,865,1'65.00 3.12 % Aaa 2.21 53,328.13 141,855.25 AAA 2.12 949744AC0 Wells Fargo & Company FDIC 5,735,000.00 Various 5,750,945.80 Guaranteed Note 2.03 % 5,750,945.80 2.125% Due 6/15/2012 101.54 5,823,393.56 3.08 % Aaa 2.21 1.41 % 35,883.58 72,447.76 AAA 2.14 06050BAA9 Bank of America Corp FDIC Guaranteed 5,500,000.00 Various 5,703,627.50 103.91 5,715,1'60.00 3.03 % Aaa 2.21 Note 1.97 % 5,703,627.50 1.32 % 50,6;07.64 11,532.50 AAA 2.12 3.125% Due 6/15/2012 69351CAC7 PNC Funding Corp FDIC Guaranteed 5,725,000.00 08/31/2009 5,814,138.25 102.27 5,854,883.08 3.10 % Aaa 2.23 Note 1.73 % 5,814,138.25 1.26 % 36,2,10.62 40,744.83 AAA 2.16 2.3% Due 6/22/2012 36967HAV9 GE Capital Corp FDIC Guaranteed Note 5,850,000.00 06/03/2009 5,855,557.50 2.125% Due 12/21/2012 2.10 % 5,855,557.50 101.31 5,926,535.55 3.14 % Aaa 2.73 1.63 % 34,531.25 70,978.05 AAA 2.62 481247AM6 JP Morgan Chase FDIC Guaranteed 5,950,000.00 04/22/2009 5,968,445.00 101.42 6,034,668.50 3.19 % Aaa 2.74 Note 2.04 % 5,968,445.00 1.59 % 33,3f 5.45 66,223.50 AAA 2.64 2.125% Due 12/26/2012 Total FDIC Insured US Corporate 718507608 ConocoPhillips Note 8.75% Due 5/25/2010 40,135,000.00 1,575,000.00 2.11 % 40,565,333.80 40,565,333.80 1.40 % 41,078,70 6.44 250,895.42 21.75 % 513,382.64 Aaa AAA 2.33 2.25 rM 05/08/2008 3.44 % 1,737, 823.50 1,737,823.50 101.17 0.89 % 1,593,46.33 48,2 4.38 0.86 % (144,347.17) Al A 0.15 0.15 l`I.nndl..r Ann I RA n caM ERKAMl&I cAlkik CUSIP 931142BZ5 sample talent ount#10001 Security Description Wal-Mart Stores Note 4.125% Due 7/1/2010 Par Value/Units 3,500,000.00 HoI . ngs Report f 3/31/10 Purchase Date Cost Value Book Yield Book Value 01/09/2008 3.71 % 3,533,775.00 3,533,775.00 Mkt Price Mkt YTM 100.72 1.23 % Market Value Accrued Int. 3, 525,161.50 36,093.75 % of Port. Mood ,Term (yrs) Gain/Loss S& duration 1.87 % (8,613.50) Aa2 0.25 AA 0.25 369550AL2 General Dynamics Corp Note 4.5% Due 8/15/2010 1,750, 000.00 05/28/2008 3.44 % 1,788,955.00 1,788,955.00 101.42 0.68 % 1,774,762.50 10,062.50 0.94 % (14,192.50) A2 A 0.38 0.37 459200GR6 IBM Corp Note 2.1% Due 5/6/2013 1,865,000.00 01/27/2010 1.89 % 1,877,420.90 1,877,420.90 100.70 1.87 % 1,878,028.89 15,774.79 1.00 % 607.99 Al A+ 3.10 2.96 742718DL0 Procter & Gamble Co Note 4.6% Due 1/15/2014 1,785,000.00 01/25/2010 2.44 % 1,929,959.85 1,929,959.85 107.44 2.53 1,917,859.34 17,334.33 1.02 % (12,100.51) Aa3 AA- 3.80 3.46 717081AR4 Pfizer Inc. Note 4.5% Due 2/15/2014 1,640,000.00 Various 3.36 % 1,721,32350 1,721,323.50 106.82 2.64 % 1,751,818.48 9,430.00 0.93 % 30,494.98 Al AA 3.88 3.54 166751AH0 ChevronTexaco Corp Note 3.95% Due 3/3/2014 2,665,000.00 Various 2.64 % 2,801,437.00 2,801,437.00 104.43 2.75 % 2,783,190.09 8,187.47 1.47 % (18,246.91) Aa1 AA 3.93 3.62 38141EA33 Goldman Sachs Group Note 6% Due 5/1/2014 1,825,000.00 11/10/2009 3.51 % 2,011,296.00 2,011,296.00 109.50 3.48 % 1,998,345.80 45,625.00 1.08 % (12, 950.20) Al A 4.09 3.56 665859AK0 Northern Trust Company Note 4.625% Due 5/1/2014 1,740,000.00 02/01/2010 2.60 % 1,880,574.60 1,880,574.60 106.35 2.96 % 1, 850, 549.16 33, 531.25 0.99 % (30,025.44) Al AA- 4.09 3.66 36962G4C5 General Electric Capital Corp Note 5.9% Due 5/13/2014 2,700,000.00 08/07/2009 4.47 % 2,863,923.40 2,863,923.40 110.02 3.28 % 2,970,664.20 61,065,00 1.60 % 106,740.80 Aa2 AA+ 4.12 3.60 06406HBL2 Bank of New York Note 4.3% Due 5/15/2014 2,480,000.00 Various 2.94 % 2,609,790.70 2,609,790.70 105.27 2.93 % 2,610,681.12 40,286.22 1.40 % 890.42 Aa2 AA- 4.13 3.72 428236AV5 Hewlett Packard Company Note 4.75% Due 6/2/2014 1,790,000.00 Various 2.66 % 1,938,160.60 1,938,160.60 107.96 2.72% 1,932,539.50 28,105.49 1.03 % (5,621.10) A2 A 4.18 3.74 079860AG7 J Bellsouth Corp Note 5.2% Due 9/15/2014 1,725,000.00 01/22/2010 3.12 1, 878, 766.50 1, 878, 766.50 107.75 3.32 % 1,858,606.43 3,986.67 0.98 % (20,160.07) A2 A 4.46 3.98 46625HHP8 JP Morgan Chase Note 3.7% Due 1/20/2015 2,050,000.00 03/18/2010 3.45 % 2,072,948.30 2,072,948.30 100.62 3.56 % 2,062,625.96 14,959.30 1.09 % (10,322.34) Aa3 A+ 4.81 4.34 94980VAA6 Wells Fargo Bank Note 4.75% Due 2/9/2015 1, 825, 000.00 03/22/2010 3.83 % 1,898, 876.00 1,898,876.00 103.85 3.87 % 1,895,193.15 12,521.53 1.00 % (3,682.85) Aa3 AA- 4.87 4.29 084670AV0 Berkshire Hathaway Note 3.2% Due 2/11/2015 2,375,000.00 02/05/2010 3.22 % 2,373,028.75 2,373,028.75 100.85 3.01 % 2,395,273.00 10,555.56 1.27% 22,244.25 Aa2 AA+ 4.87 4.46 Total US Corporate 33,290,000.00 3.21 % 34,918,059.60 34,918,059.60 2.61 % 34,798,775.45 18.52 % 395,753.24 (119,284.15) Al AA- 3.40 3.07 912828FN5 US Treasury Note 4.875% Due 7/31/2011 5, 550, 000.00 Various 4.86 % 5,554,142.58 5,554,142.58 105.66 0.62 % 5,864,141.10 44,844.61 3.11 % 309, 998.52 TSY TSY 1.33 1.30 912828GA2 US Treasury Note 4.5% Due 11/30/2011 4,000,000.00 Various 4.62 % 3,981,054.69 3,981,054.69 106.11 0.80 % 4,244,376.00 60,329.67 2.27 % 263, 321.31 TSY TSY 1.67 1.60 912828GK0 US Treasury Note 4.625% Due 2/29/2012 2,975,000.00 10/04/2007 4.16 % 3,030,200.20 3,030,200.20 106.98 0.94 % 3,182,553.85 11,964.67 1.68 % 152,353.65 TSY TSY 1.92 1.84 Chandler Asset Management - CONFIDENTIAL Execution Time: 5/7/2010 9:57:00 AM Sample Client Account#10001 Holdings Report As of 3/31 /10 CUSIP Security Description Par Value/Units Purchase Date Book Yield Cost Value Book Value Mkt Price Mkt YTM Market Value Accrued Int. % of Port. Gain/Loss Moody 13'erm (yrs) S&P Duration 912828GQ7 US Treasury Note 4.5% Due 4/30/2012 2,000,000.00 05/30/2007 4.83 1,971,250.00 1,971,250.00 107.13 1.03 % 2.142, 500, 00 37, 790.06 1.15 % 171, 250.00 TSY 2.08 TSY 1.97 912828GU8 US Treasury Note 4.75% Due 5/31/2012 3,000,000.00 07/12/2007 2,964,609.38 5.02 % 2,964,609.38 107.79 1.10 % 3, 233, 673.00 48,024.86 1.73 % TSY 2.17 269,063.62 TSY 2.05 912828GW4 US Treasury Note 4.875% Due 6/30/2012 3,000,000.00 07/12/2007 2,981,484.38 5.02 % 2,981,484.38 108.27 3,248,202.00 1.73 % TSY 2.25 1.14 % 36,764.50 266,717.62 TSY 2.13 912828GZ7 US Treasury Note 4.625% Due 7/31/2012 3,000,000.00 10/04/2007 3,054,023.44 4.21 % 3,054,023.44 107.93 3,237,891.00 1.72 % TSY 2.34 1.17 % 22,997.24 183,867.56 TSY 2.22 912828HK9 US Treasury Note 3.375% Due 11/30/2012 2,500,000.00 12/06/2007 2,498,828.13 3.39 % 2,498,828.13 105.26 2,631,445.00 1.40 % TSY 2.67 1.36 % 28,279.53 132,616.87 TSY 2.53 912828HM5 US Treasury Note 3.625% Due 12/31/2012 3,500,000.00 03/06/2008 3,585,253.91 2.45 % 3,685,253.91 105.91 3,706,717.00 1.97 % TSY 2.76 1.43 % 31,893.99 21,463.09 TSY 2,61 912828HV5 US Treasury Note 2.5% Due 3/31/2013 1,000,000.00 01/06/2010 1,025,237.73 1.69 % 1,025,237.73 102.74 1,027,422.00 0.54 % TSY 3.00 1.56 % 68.31 2,184.27 TSY 2.89 Total US Treasury 30,525,000.00 4.21 % 30,746,084.44 30,746,084.44 32,518,920.95 17.29 % TSY 2.08 1.04 % 322,957.44 1,772,836.51 TSY 1.98 TOTAL PORTFOLIO TOTAL MARKET VALUE PLUS ACCRUED 183,782,741.90 188,218,517.72 100.00 % Aaa 2.66 179,435,000.00 3.28 % 183,782,741.90 1.65 % 1,768,347.60 4,435,775.82 AAA 2.49 189,986,865.32 - r.hand!Pr As_sP� ienLCDNFI ENTIPL C VpfJ ,tlnnS_in CA% CHANDLER ASSET MANAGEMENT GASB 40 Report Tuesday. June 30, 2009 Portfolio # 10001 Sector Agency US Treasury FDIC Insured US Corporate US Corporate Portfolio Characteristics Market Value 192,354,356 Ave Portfolio Duration 2.51 Ave Porfolio Maturity 2.72 Sector Characteristics Market Value Ave Duration Ave Maturity % of Port 100,571,860 35,638,016 34,775,805 21, 368,676 2.49 2.53 2.96 1.84 2.75 2.70 3.10 2.00 52.28% 18.53% 18.08% 11.11% 192,354,356 2.51 Concentration of Credit Issuer Name Government of United States Federal Home Loan Mortgage Corp Federal National Mortgage Association Federal Farm Credit Bank Federal Home Loan Bank Tennessee Valley Authority JP Morgan FDIC Insured Goldman Sachs FDIC Insured General Electric Co FDIC Insured US Bank Corp FDIC Insured Wells Fargo Corp FDIC Insured Bank of America Corp FDIC Insured General Electric Co 2.72 100.00% Interest Rate Shock Analysis Fair value of portfolio after increase of: 100 bps 200 bps 300 bps -4,825,986 -9,651,972 -14,477,958 Segmented Time Distribution <1 yr 1-3 yrs 3-5 yrs >5yrs 9,458,270 0 0 4,526,179 47,550,776 22,742,859 23, 046,153 11,068,461 43,562,815 12,895,158 11, 729,651 5,774,035 0 0 0 0 13,984,449 104,408,249 73,961,659 Ave. Ave. Ratings Cost Market Value Duration Maturity Moody/SP 33,293,305 24,282,674 21,637, 779 21,285,546 17,621,546 12,466,372 5,968,445 5,723,310 5,855,558 5,749,310 5,750,946 5,703,628 3,716,820 35,638,016 25,274,233 22,232,575 22,005,316 18,256,959 12,802,777 5,919,905 5,821,307 5,809,746 5,800,640 5,751, 798 5,672,409 3,726,594 0 % of Port 2.53 2.70 TSY TSY 18.53% 2.91 3.16 Aaa AAA 13.14% 2.58 2.77 Aaa AAA 11.56% 1.79 1.90 Aaa AAA 11.44% 2.23 2.73 Aaa AAA 9.49% 3.04 3.37 Aaa AAA 6.66% 3.34 3.49 Aaa AAA 3.08% 2.81 2.96 Aaa AAA 3.03% 3.33 3.48 Aaa AAA 3.02% 2.60 2.70 Aaa AAA 3.02% 2.85 2.96 Aaa AAA 2.99% 2.82 2.96 Aaa AAA 2.95% 1.72 1.83 Aa2 AA+ 1.94% CA% CHANDLER ASSET MANAGEMENT GASB 40 Report Concentration of Credit Issuer Name Wal-Mart Stores Goldman Sachs Inc. Wells Fargo Corp JP Morgan Chase & Co Toyota Motor Corp General Dynamics Corp Pfizer Inc. ConocoPhillips Ave. Ave. Ratings Cost Market Value Duration Maturity Moody/SP Vo of Port 3,533,775 2,899,435 2,072,723 2,019,900 1,945,560 1,788,955 1,721,324 1,737,824 3,585,890 2,845,032 2,040,183 2,025,376 1,947,076 1,808,902 1,708,477 1,681,147 0.97 1.00 Aa2 AA 1.86°i 0.55 0.58 Al A 1.48% 3.41 3.84 Al AA- 1.06% 3.45 3.84 Aa3 A+ 1.05% 1.78 1.88 Aa1 AA 1.01% 1.09 1.13 A2 A 0.94% 4.10 4.63 Aa2 AAA 0.89% 0.88 0.90 Al A 0.87% June 30 2009 Maturity Is Next Call CUSIP IssueName Issue Cpn Date Callable Date Market Value Duration MktTerm Ratings 38141GAL8 Goldman Sachs Group Inc Note 7.80 1/28/10 N 2,845,032 0.55 0.58 Al A 31359MXH1 FNMA Note 3.88 2/15/10 N 664,016 0.61 0.63 Aaa AAA 3134A33L8 FHLMC Note 7.00 3/15/10 N 1,098,563 0.69 0.71 Aaa AAA 31331XWL2 FFCB Note 4.75 5/7/10 N 4,143,752 0.84 0.85 Aaa AAA 31359MC92 FNMA Note 4.13 5/15/10 N 2,063,126 0.86 0.87 Aaa AAA 718507BQ8 ConocoPhillips Note 8.75 5/25/10 N 1,681,147 0.88 0.90 Al A 31359MFS7 FNMA Note 7.13 6/15/10 N 1,488,813 0.94 0.96 Aaa AAA 931142BZ5 Wal-Mart Stores Note 4.13 7/1/10 N 3,585,890 0.97 1.00 Aa2 AA 3134A4VB7 FHLMC Note 4.13 7/12/10 N 1,558,595 1.00 1.03 Aaa AAA 369550AL2 General Dynamics Corp Note 4.50 8/15/10 N 1,808,902 1.09 1.13 A2 A 3133XCQZ9 FHLB Note 4.38 9/17/10 N 2,872,031 1.18 1.22 Aaa AAA CA 3134A4VE1 FHLMC Note 4.13 10/18/10 N 1,620,719 1.27 1.30 Aaa AAA ,``3 31331YGP9 FFCB Note 3.75 12/6/10 N 3,120,939 1.40 1.44 Aaa AAA 3133XECU1 FHLB Note 4.63 2/18/11 N 3,343,675 1.56 1.64 Aaa AAA 31331VSK3 FFCB Note 4.88 2/18/11 N 5,309,375 1.56 1.64 Aaa AAA 912828EX4 US Treasury Note 4.50 2/28/11 N 530,000 1.60 1.67 TSY TSY 31359MHK2 FNMA Note 5.50 3/15/11 N 2,687,500 1.62 1.71 Aaa AAA 912828FA3 US Treasury Note 4.75 3/31/11 N 2,131,876 1.68 1.75 TSY TSY 36962GW59 General Electric Capital Cor Note 5.50 4/28/11 N 3,726,594 1.72 1.83 Aa2 AA+ 892332AQ0 Toyota Motor Credit Corp Note 5.45 5/18/11 N 1,947,076 1.78 1.88 Aa1 AA 31331VJ80 FFCB Note 5.38 7/18/11 N 4,857,188 1.92 2.05 Aaa AAA 912828FN5 US Treasury Note 4.88 7/31/11 N 7,115,259 1.96 2.08 TSY TSY 31359MZ30 FNMA Note 5.00 10/15/11 N 2,269,970 2.16 2.29 Aaa AAA 31359MLS0 FNMA Note 5.38 11/15/11 N 2,644,009 2.24 2.38 Aaa AAA 912828GA2 US Treasury Note 4.50 11/30/11 N 4,306.252 2.30 2.42 TSY TSY June 30 2009 Maturity Is Next CaII CUSIP IssueName Issue Cpn Date Callable Date Market Value Duration MktTerm Ratings 3133XJEE4 FHLB Callable Note 1X 5.00 12/22/11 Y 12/22/09 3,060,939 0.48 2.48 Aaa AAA 12/22/2009 3134A4JT2 FHLMC Note 5.75 1/15/12 N 2,537,188 2.33 2.55 Aaa AAA 912828GK0 US Treasury Note 4.63 2/29/12 N 3,224,156 2.49 2.67 TSY TSY 3137EAARO FHLMC Note 4.75 3/5/12 N 3,238,125 2.50 2.68 Aaa AAA 91160HAA5 US Bancorp FDIC Guaranteed 2.25 3/13/12 N 5,800,640 2.60 2.70 Aaa AAA Note 912828GQ7 US Treasury Note 4.50 4/30/12 N 2,164,376 2.66 2.84 TSY TSY 31398ABX9 FNMA Note 4.88 5/18/12 N 1,657,484 2.70 2.88 Aaa AAA 880591DT6 Tennessee Valley Authority Note 6.79 5/23/12 N 6,773,040 2.65 2.90 Aaa AAA 912828GU8 US Treasury Note 4.75 5/31/12 N 3,270,939 2.74 2.92 TSY TSY L 06050BAA9 Bank of America Corp FDIC Guaranteed 3.13 6/15/12 N 5,672,409 2.82 2.96 Aaa AAA Note 949744AC0 Wells Fargo & Company FDIC Guaranteed 2.13 6/15/12 N 5,751,798 2.85 2.96 Aaa AAA Note 38146FAA9 Goldman Sachs FDIC Guaranteed 3.25 6/15/12 N 5,821,307 2.81 2.96 Aaa AAA Note 912828GW4 US Treasury Note 4.88 6/30/12 N 3,286,875 2.81 3.00 TSY TSY 3134A4QD9 FHLMC Note 5.13 7/15/12 N 3,286,875 2.78 3.04 Aaa AAA 912828GZ7 US Treasury Note 4.63 7/31/12 N 3,266,250 2.85 3.09 TSY TSY 3133XML66 FHLB Note 4.63 10/10/12 N 3,242,814 3.03 3.28 Aaa AAA 31331X3S9 FFCB Note 4.50 10/17/12 N 4,574,063 3.05 3.30 Aaa AAA 912828HK9 US Treasury Note 3.38 11/30/12 N 2,632,033 3.23 3.42 TSY TSY 36967HAV9 GE Capital Corp FDIC Guaranteed 2.13 12/21/12 N 5,809,746 3.33 3.48 Aaa AAA Note 481247AM6 JP Morgan Chase FDIC Guaranteed 2.13 12/26/12 N 5,919,905 3.34 3.49 Aaa AAA Note 912828HM5 US Treasury Note 3.63 12/31/12 N 3,710,000 3.29 3.51 TSY TSY June 30 2009 CUSIP IssueName Issue Maturity Is Next CaII Cpn Date Callable Date Market Value Duration MktTerm Ratings 880591CW0 Tennessee Valley Authority Note 92976WBJ4 Wachovia Bank Note 46625HHB9 JP Morgan Chase Note 3133XQU34 FHLB Note 31339X2M5 FHLB Note 3137EABMO FHLMC Note 31398ASD5 FNMA Note 3134A4TZ7 FHLMC Note 880591OW9 Tennessee Valley Authority Note 31398AUJ9 FNMA Note 3137EABX6 FHLMC Note 717081AR4 Pfizer Inc. Note 6.00 5.50 4.75 3.63 3.88 3.75 3.88 4.50 4.75 2.88 2.50 4.50 3/15/13 5/1/13 5/1/13 5/29/13 6/14/13 6/28/13 7/12/13 7/15/13 8/1/13 12/11/13 1/7/14 2/15/14 N N N N N N N N N N N N 2,904,086 2,040,183 2,025,376 3,640,000 2,097,500 3,150,159 4,473,125 4,575,393 3,125,652 4,284,531 4,208,618 1,708,477 192,354,356 3.31 3.41 3.45 3.63 3.66 3.71 3.67 3.64 3.65 4.15 4.19 4.10 3.71 Aaa AAA 3.84 Al AA- 3.84 Aa3 A+ 3.92 Aaa AAA 3.96 Aaa AAA 4.00 Aaa AAA 4.04 Aaa AAA 4.04 Aaa AAA 4.09 Aaa AAA 4.45 Aaa AAA 4.53 Aaa AAA 4.63 Aa2 AAA City of National City and CHANDLER ASSET MANAGEMENT Kay Chandler, CFA President Mia Corral VP, Client Service Ted Piorkowski, CFA SVP, Portfolio Manager 6225 Lusk Blvd San Diego, CA 92121 1 Phone "'800.317.4747 858 546 3741 �. www.chandlerasset.col CA% Table of Contents SECTION 1 SECTION 2 SECTION 3 SECTION 4 SECTION 5 About Chandler Philosophy, Process & Historical Results Services that Support the Investment Process Distinctions of Chandler Asset Management Engagement Team Biographies -, Disclosures u VEM11111111111111111111 SECTION 1 About Chandler so IMI El VII M ! IN E IIE cn Fixed Income Specialists • Independent & Employee -Owned r Founded in 1988 SEC -registered ■ A San Diego firm • Responsive Client Service • Customizable accounting and reporting • Periodic personal meetings ■ Fiduciary duty • Experienced Investment Team ■ Team -based decision making • Disciplined investment process • Chartered Financial Analyst® designation As of 6/30/2011 Assets Under Management* $6.1 Billion Non -Profit 16% Corporate 1% Individuals 6% Public Agency 77% y II PO I Qv Representative Clients • Agoura Hills • Alameda • American Canyon • Arcata • Brea • Buena Park • Camarillo • Chino Hills • Corona • Alpine • Amador • Calaveras • Santa Clara • Tulare • San Diego County • Danville • Eureka • Fairfield • Indio • La Habra • La Mirada • Long Beach • Menifee • Monterey • Moreno Valley • Mountain View • Napa • Newport Beach • Perris • Pleasant Hill • San Bernardino • San Leandro • San Luis Obispo • Alameda Corridor Transportation Authority • Alameda County Transportation Authority • Authority for CA Cities Excess Liability • Big Independent Cities Excess Pool • Brea Olinda School District • California Joint Powers RMA • Central San Joaquin Valley RMA • Denver City and County • First 5 Alameda County • First 5 Santa Clara County • Fontana POA Retiree Benefit Trust • Moulton Niguel Water District • San Marcos • Santa Clarita • South San Francisco • Stockton • Tracy • Truckee • Vallejo • Westminster • Northern CA Cities Self Insurance Fund • Rancho CA Water District • Redwood Empire Municipal Insurance Fund • Sacram,ento Regional Transit District • San Diego Pooled IPA • Small Cities Organized Risk Effort • South Metro Fire Rescue Authority • Three Valleys Water District • Walnut Valley Water District • West San Gabriel JPA • Western Municipal Water District • YCPARMIA A listing of the firm's public agency clients, shown in alphabetical order. It is not known whether the listed clients approve or disapprove of Chandler Asset Management or the advisory services provided. 1 1 I 1 1 I 1 I I 1 c� investment Team Team Approach to Decision -Making and Portfolio Management ■ CIO assigns lead portfolio manager and back up portfolio manager to each account ■ All team members are familiar and have responsibilities for each account ■ Team members coordinate trading and share trade execution ■ Team members participate in research and operational committees 11. Xi MO ON Eli MI Illr IIIM CA% Experience and Dedication Investment Professional Responsibility Industry Firm Experience Tenure Kay Chandler, CFA President Strategic planning and client service 1975 1988 Nicole Dragoo, IACCP COO, Chief Compliance Officer Leads investment operations team Regulatory compliance 2000 2001 Jayson Schmitt, CFA SVP, Portfolio Manager Oversight of portfolio management, desk operations Portfolio management and trading 1994 1995 "tvlt�9ur Shelly Henbest Credit Analyst Credit analysis 2000 2009 Client Service Responsibility Industry Firm Experience Tenure mu la NE NE Ea Ma EN EN la RE NE Ea NE la NE lie am EE sin vim us INN MN MN MN eat um loo SECTION 2 Philosophy, Process & Historical Results no Ili 1 ® ® ® ® ® ® ® ® ® ®M 'CM CM 1x IBC II CA% I Chandler's Investment Philosophy We believe that our conservative approach to fixed income management will provide incremental outperformance and appropriately constrained risk. CA% Longer -Term Portfolios Provide Higher Expected Return Value on 6/30/2011 of LAIF Chandler Limited Maturity Chandler Short Term Bond $20 million invested 6/30/2001 6/30/2011 Annualized Return $25,840,498 $29,774,398 $31,591,714 2.60% 4.06% 4.68% • Past performance is not a guarantee of future results. Performance is annualized, presented gross of investment management fees, and represents returns achieved for institutional clients. Please see accompanying full GIPS® -compliant performance presentation. 1 CAI Longer Term Portfolios and Greater Volatility of Return 3.00% 2.50% 2.00% 0 T-0.50% N -1.50% -2.00% peGA9 .s.fs O°f Quarterly Change in Value peG )cc ADO Om° )Jc pe° • � pe• ° )mac --LAW — Chandler Limited Maturity —ChandlerShort Term Bond 0 0 $ H 9! 1 I I 19 I 9 11 1 a a Segmenting the Portfolio ■ San Diego County Pool • LAIF • Money market instruments offer diversification • Designed t•'.) stabilize and enhance income and • Provide for long term portfolio growth • Invested in • U.S. Treasury/Agencies • Corporate notes, if permitted I!__ II 1I. n 9 1_ 9— l M CM I Value -Added Investment Process A Quantitative, Disciplined and Repeatable Investment Process r FOUR KEY COMPONENTS TO OUR APPROACH Constraining portfolio duration relative to the benchmark Strategic allocations to key sectors, with value -based rotation Positioning securities along the yield curve to capture value across maturities Selecting bonds that we believe are undervalued and offer the greatest potential for risk -adjusted return 1 RI pl CA Disciplined Process Drives Portfolio Structure Value -Added by Disciplined Investment Portfolio Management YIELD CURVES CONSTRAINTS SCENARIOS HORIZON ANALYSIS MODEL WEEKLY TEAM STRATEGY MEETING SECTDR ALLOCATION WEEKLY TEAM STRATEGY MEETING CREDIT GROUP WEEKLY I -.- REFRESH.'. DAILY DESK DISCUSSION SECURITY SELECTION QUANTITATIVE RANKING l it m UI I! A 11 1f 'll I! 1 I I m Consistent Investment Results Chandler Asset Management Investment Results Periods Ending June 30, 2011 Investment Style LAIF Chandler Ultra Short Bond Chandler Limited Maturity Chandler Short Term Bond Portfolio Duration 0.15 0.91 1.72 2.25 Annualized Total Return 10 Year Period 6/30/11 Net of Fees (0.06 of 1%) 2.60% 3.17% 4.00% 4.62% 10-Year Growth of $20 Million Net of Fees $25.9 million $27.3 million $29.6 million $31.4 million - Past performance is not a guarantee of future results. Performance is annualized, presented gross of investment management fees, and represents returns achieved for institutional clients. Please see accompanying full GIPS® -compliant performance presentation. h® SECTION 3 Services that Support the Investment Process L L L 1 CAI More Than A Portfolio —A Comprehensive Investment Program III ENI UN 'Aim - - ti EEC IN in! in NI 1111 EMI ME Mt CA% Committed to Superior Service MR, MAIRIBMIS Effective Portfolio Management ... And More • Initial and annual Investment Policy review • Portfolio cash flow forecasting • Coordination of third -party custodial relationship • Compliance monitoring and reporting • Monthly reports — secure online access • Staff training and education • General resource on best practices Chandler: A local firm specializing in public agency investing r 7/ r 131. 111. ri 1111 AM Eli rot 11 Ell WE IF c Reports Designed For Use By Management Sample Cent - Chandler 1-6 Year Average Duration 2213 Average Coupon 289 % Average Purchase 'MA 1.77% Average Market YTM 0.75 % Average S&P Rating AAA Average Frnal Maturity 246 yrs Average Life 2.46 yrs Commercial Paper - (1.7 %) Agency__ %) FDIC Insured Corporate (141 %) US Yreaoury (23.1%) 25% 20% Portfolio Summary As of 3/31f2011 JiJ "-Sc.11111{,047,I0 198,338,104 1.354219 1- 199,692,323 282,261 283.372 -3,017,963 191,115,000 188,455.000 195.801,789 192,974.630 197,287,597 194,630,669 25.7 % 14.5 % 0 • 25 25.5 5.1 1-2 2-3 3.4 4.5 64 Maturity {Yrs) Issuer Government of United Stales Federal Home Loan Bank Federal National Mortgage Assoc Federal Home Loan Mortgage Corp Federal Farm Credit Bank Tennessee Valley Authority HSBC Corp FDIC Insured JP Morgan FDIC Insured % Portfolio 23.1 % 13.4 % 12 9 % 12 6 % 12.5 % 9.9 % 3.0 % 3 0 % 90.3 % CREDIT QUALITY AAA__ (74,2 %) NI4 (2.7%) 7SY (23.1 %) 18. „,1•1=1 a arms volo tow unit IMO '1910 ;MI 1 W CA% I Transition Execute investment management agreement Confirm investment policy and strategy Select custodian Execute custody agreement Transfer assets/cash Monitor receipt of assets Implement strategy Report to City • • • • • • National City/Chandler National City/Chandler National City National City National City/Custodian National City Chandler Chandler ' - • - 11111111MLAM111111111 SECTION 4 Distinctions of Chandler Asset Management 20 EN 112 111U UN ad BO 112 Un 112 112UUI 11 22 hall 112 112 U2 U2 SE EU U2 UN U2 UNt7' 1' 1'' 1133 Gt%J Chandler: The Right Partner for National City ■ Our firm is independent and owned by the employees. • We are the right size —big enough to get the job done right with expert staff, state-of-the-art technology and excellent price execution. • Our team is focused on client service as much as investment performance. 1.1 "IN MN TIN it ;MI'IN 1111 " 11 My- _ i- SECTION 5 Engagement Team Biographies Disclosures "! WI III 1111 r �'!1. I wl c� Biographies Kay Chandler, CFA President Kay Chandler is the president of Chandler Asset Management and founded the firm in 1988. Ms. Chandler is responsible for overseeing all aspects of the firm's investment process. She leads client service and communication and is focused on the strategic direction of the firm. Recognized for her expertise, she is frequently asked to speak on topics such as investment policy, portfolio management, and the risk characteristics of fixed income securities. Ms. Chandler served as the Investment Officer for the County of San Diego from 1975 until 1983 and then in the same position for the City of San Diego from 1983 until 1985. As a Managing Director at Pacific Century Advisers from 1985 until 1988, she managed over $1 billion in fixed -income assets for institutional investors. She is a co-author of The California Public Fund Investment Primer, commissioned by the California State Treasurer and published in 2005. Ms. Chandler received her B.A. from Oberlin College in 1970, and attended graduate school at San Diego State University. She is a member of the CFA Society of San Diego and holds the designation of Chartered Financial Analyst (CFA). She is a member of the Board of Governors of the San Diego Foundation, and serves as a member of the Foundation's Investment Committee. Martin Cassell, CFA CEO, Chief Investment Officer Martin Cassell is the chief executive and investment officer at Chandler Asset Management and is a principal of the firm. Mr. Cassell is responsible for defining, planning and directing company programs. He heads implementation of the firm's investment strategies and portfolio risk management. He designed the proprietary quantitative models that drive our investment process, establishing duration, structure and asset allocation throughout client portfolios. Mr. Cassell joined Chandler Asset Management in 1991 from the City of San Diego where he managed a $1 billion fixed income portfolio. He began his investment career in 1987 managing portfolios at World Savings and Loan. Mr. Cassell received his B.S. in finance from California State University, Hayward. He is a member of the CFA Society of San Diego and holds the designation of Chartered Financial Analyst. He is also a member of the California Association of Joint Power Authorities (CAJPA) finance committee. s CA Biographies 21111111111 Nicole Dragoo, IACCP COO, Chief Compliance Officer Nicole Dragoo is the chief operating and compliance officer at Chandler Asset Management. Ms. Dragoo is responsible for regulatory compliance and legal matters and implements and oversees the firm's operational and administrative functions. She also directly oversees the investment operations department, which is responsible for maintaining data integrity, trade settlement, performance calculation, client reporting and portfolio accounting. Prior to joining Chandler in 2001, she served as a trading associate on the institutional fixed income sales desk at Merrill Lynch. Ms. Dragoo earned her B.A. from the University of San Diego in business economics and the J.D. from the University of San Diego School of Law. She is a member of the State Bar of California, the American Bar Association, the San Diego County Bar Association and the Southern California Compliance Group. Additionally, Ms. Dragoo holds the designation of Investment Adviser Certified Compliance Professional (IACCP). Ted Piorkowski, CFA Senior Vice President, Portfolio Manager Ted Piorkowski is a. senior vice president and senior portfolio manager at Chandler Asset Management. In addition to his duties as a portfolio manager, he oversees daily trading and is responsible for implementing portfolio strategy. Mr. Piorkowski leads the Portfolio Management and Sector Committees. Prior to joining Chandler Asset Management in 1999, Mr. Piorkowski served as a Vice President and Fund Manager for Sefton Capital Management. He was responsible for the management of over $300 million in both mutual fund vehicles and individually managed institutional portfolios. From 1988 through 1994, Mr. Piorkowski managed money market and enhanced money market funds for San Diego Trust and Savings Bank and its successor, San Diego Financial Capital Management. Mr. Piorkowski earned both his B.A. and M.B.A. in finance from San Diego State University. He is a member of the CFA Society of San Diego and holds the designation of Chartered Financial Analyst. HOE MN El Ell ' - ME 1=1 o cPg Biographies Jayson Schmitt, CFA Senior Vice President, Portfolio Manager Jayson Schmitt is a senior vice president and portfolio manager at Chandler Asset Management. He has been instrumental in the development and integration of quantitative analytic tools for the portfolio management process. Prior to joining Chandler Asset Management in 1995, Mr. Schmitt was employed as a financial analyst with USA Federal Credit Union in San Diego, managing a $100 million liquidity book. His responsibilities there also included asset/liability management. Mr. Schmitt earned his B.A. in economics from San Diego State University. He is a member of the CFA Society of San Diego and holds the designation of Chartered Financial Analyst. William Dennehy 11, CFA Vice President, Portfolio Manager William Dennehy recently joined Chandler Asset Management as a portfolio manager, responsible for implementing portfolio strategy and securities trading in client accounts. Prior to joining Chandler, Mr. Dennehy worked at Northern Trust Global Investments in Chicago, most recently as senior portfolio manager and vice president, with a wide range of responsibilities in asset allocation, quantitative and qualitative analysis. Mr. Dennehy earned his B.S. in business administration, option in finance, at California State University, Chico. He is a holds the designation of Chartered Financial Analyst. II Ii I I I I I. al I -", -9 CM Biographies Shelly Henbest Credit Analyst Shelly Henbest joined Chandler Asset Management as a credit analyst in 2009. She is actively involved in analyzing and assessing the credit suitability of debt issuers and assisting portfolio managers in the portfolio management process. Ms. Henbest is a member of the firm's Credit Committee and is responsible for monitoring developments in the financial markets and providing fundamental economic and investment research. Ms. Henbest brings more than eight years of experience in equity research and financial analysis. Most recently, she was an associate analyst at Bear, Stearns & Co. Inc., focusing on the consumer/retail sector. Prior to joining Bear Stearns, Ms. Henbest was an equity research associate at C.L. King & Associates. She began her career at Ford Equity Research in San Diego as a quantitative equity analyst. Ms. Henbest was a three-year member of Institutional Investor magazine's "All - America Research Team," and is a level 3 candidate in the CFA program. Ms. Henbest earned her B.A. in business economics from the University of California, Santa Barbara. Eric Young Portfolio Specialist Eric Young joined Chandler Asset Management in 2007 and is currently a portfolio specialist assisting the portfolio management team with their daily responsibilities. He provides support in the areas of fixed income trading, economic analysis, and credit selection. He is involved with researching securities valuation and selection, and analyzing specific portfolio information. Prior to joining Chandler Asset Management, Mr. Young gained experience as an associate in internal operations with Citigroup Asset Management. Mr. Young earned his B.A. from the University of Connecticut in economics, with a minor in finance and business related studies. MI MI 3 mu it MB Ell ELll uim tu mu WM Ma am tun am cial Biographies 1:2K3 Mia Corral Vice President, Client Service Mia Corral is vice president of client service. Ms. Corral is an active member of CSMFO, CMTA and GFOA. Her focus is on the development of client relationships and on client service. Ms. Corral joined Chandler Asset Management in 2004 and has more than ten years of financial industry experience. Prior to joining Chandler, Ms. Corral was employed at Nicholas Applegate Capital Management for five years, as an institutional client service assistant, then as an assistant marketing manager for the managed accounts division of the firm where she worked on marketing initiatives developing collateral material and product communication pieces. Ms. Corral earned her B.A. in speech communication with an emphasis in business communications from San Diego State University. CAQV GIPS° Compliant Performance 6% 5% 4% 3% 1 Year INVESTMENT PERFORMANCE' Ultra Short Bond June 30, 2011 3 Year 5 Year 10 Year •Chandler Ultra Short Bond El BofA ML 0-3 Year Treasury 11/30/1988 Period Chandler Ultra Short Bond BofA ML 0-3 Year Treasury 1 Year 3 Year 5 Year 10 Year Since Inception 11/30/1988 1.22% 2.02% 3.34% 3.23% 5.22% 0.69% 1.55% 3.03% 2.83% 4.70% 'All performance figures presented abo'.e are annualized. 2Retums are presented gross of fees. Please see next page for additional information about the composite GIPS® Compliant Performance Ultra Short Bond Annual Rates of Return 2001 through 2010 Gross Net of Fee Composite Firm Composite Composite Index Composite Number of Assets Pct of Firm Assets Return Return Return Dispersion Portfolios (MM) Assets (MM) 2001 7.60% 7.33% 6.20% 0.20% 6 54.21 4.6% 1,177.15 2002 4.06% 3.80% 3.49% 0.44% 5 56.24 4.3% 1,319.72 2003 2.15% 1.89% 1.49% 0.53% 6 53.06 3.1% 1,735.41 2004 1.33% 1.07% 1.13% 0.22% 4 32.98 1.7% 1,960.83 2005 2.57% 2.31% 2.52% 0.07% 7 110.80 4.4% 2,540.33 2006 4.77% 4.51% 4.48% 0.08% 7 251.98 8.7% 2,884.73 2007 5.82% 5.56% 6.11% 0.26% 6 222.18 6.8% 3,285.55 2008 4.61% 4.35% 4.32% 0.55% 7 267.48 7.5% 3,542.87 2009 1.35% 1.10% 0.55% 0.20% 6 158.28 3.6% 4,394.10 2010 1.51% 1.26% 1.08% 0.12% 7 115.89 2.0% 5,080.90 Chandler Asset Management claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Chandler Asset Management has been independently verified by Beacon Verification Services for the period of June 30, 1997 through June 30, 2011. The verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm -wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. 1. Chandler Asset Management is an independent investment adviser registered as such with the Securities and Exchange Commission under the investment Advisers Act of 1940. Since 1988, Chandler Asset Management has provided fixed income investment management services to the public sector, as well as to foundations, endowments, individuals and corporations. A complete list and description of all of the firm's composites is available upon request. 2. The Ultra Short Bond Composite is a composite of individually managed accounts with an average modified duration approximately equal to the modified duration of the Bank of America Merrill Lynch 0-3 year Treasury index and a maximum final stated maturity of individual securities of three years. Leverage is not used in the management of accounts in this composite. The minimum account size required to be included in this composite is $2 million. This composite was created in November 1988. The name of this composite was changed from Principal Preservation effective June 30, 2009. 3. The 8 of A Merrill Lynch Treasury 0-3 Year Index is comprised of US Treasury securities issued by the US Government. Al securities in the index must have fixed coupon rates and a maturity not greater than three years regardless of any call features. 4. Valuations are computed and performance reported in U.S. Dollars. 5. Performance is calculated using a time -weighted total rate of return, which links performance monthly, and is reported gross of investment management fees and custodial fees,. but after all trading expenses. Results reflect the reinvestment of income, dividends and other earnings, and include realized and unrealized gains and losses and interest accrued through the last day of each month. Results do not reflect the potential impact of taxes. Past performance is not necessarily indicative of future results. Fees charged by Chandler Asset Management will reduce performance. 6. Net -of -fees performance returns are calculated by reducing the monthly gross performance by one -twelfth (1/12) of the actual maximum applicable fee of 0.25%. These monthly returns are then geometrically linked to produce annual returns which are presented before custodial fees but after management fees, all trading expenses and withholding taxes. An account of $10 million charged a management fee of 0.40 of 1% and with an annualized total return of 6% would have a value of $13,488,502 and would have paid fees of $266,218 after five years. Additional information regarding Chandler's fees is included in our Part 2A of Form ADV. 7. Asset weighted standard deviation of annual returns relative to the composite return is presented as a measure of composite dispersion. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. 8. From October 1992 until August 1993 the principals of Chandler Asset Management were associated with Acom Asset Management. Performance during that period was achieved while they were associated with Acorn. ® ® 1 C%i I GIPS° Compliant Performance 1 Year INVESTMENT PERFORMANCE' Limited Maturity June 30, 2011 3 Year 5 Year 10 Year ■Chandler Limited Maturity ®BofA ML 1-3 Year Treasury 9/30/1988 Period 1 Year 3 Year 5 Year 10 Year Since Inception 9/30/1988 Chandler BofA ML 1-3 Limited Maturity Year Treasury 1.83% 3.59% 4.59% 4.06% 5.82% 1.34% 2.80% 4.14% 3.61% 5.51% 'All performance figures presented above are annualized. 2Retums are presented gross of fees. Please see next page for additional information about the composite APIRINMINIMO l' at GIPS® Compliant Performance Limited Maturity Annual Rates of Return 2001 through 2010 Gross Net of Fee Composite Firm Composite Composite Index Composite Number of Assets Pct of Firm Assets Return Return Return Dispersion Portfolios (MM) Assets (MM) 2001 8.51% 8.24% 8.30% 0.12% 2 85.08 7.2% 1,177.15 2002 6.26% 5.98% 5.76% 0.09% 3 107.22 8.1% 1,319.72 2003 2.30% 2.07% 1.90% 0.05% 3 131.40 7.6% 1,735.41 2004 1.49% 1.25% 0.91% 0.06% 3 126.29 •6:4% 1,960.83 2005 2.03% 1.77% 1.67% 0.03% 4 129.40 5.1% 2,540.33 2006 4.60% 4.31% 3.96% 0.03% 4 44.35 1.5% 2,884.73 2007 6.88% 6.61% 7.32% 0.13% 6 90.19 2.7% 3,285.55 2008 6.82% 6.56% 6.61% 0.23% 8 202.18 5.7% 3,542.87 2009 2.10% 1.84% 0.78% 0.34% 9 223.97 5.1% 4,394.10 2010 2.96% 2.70% 2.35% 0.38% 8 201.20 4.0% 5,080.90 Chandler Asset Management claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Chandler Asset Management has been independently verified by Beacon Verification Services for the period of June 30, 1997 through June 30, 2011. The verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm -wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. 1. Chandler Asset Management is an independent investment adviser registered as such with the Securities and Exchange Commission under the Investment Adviser's Act of 1940. Since 1988, Chandler Asset Management has provided fixed income investment management services to the public sector, as well as 10 foundations, endowments, individuals and corporations. A complete list and description of all of the firm's composites and additional information regarding policies for calculating and reporting performance results is available upon request. 2. The Limited Maturity Composite is a composite of individually managed accounts with an average modified duration approximately equal to the modified duration of the Bank of America Merrill Lynch Index of 1-3 year Treasuries and a final stated maturity of individual securities of five years. Leverage is not used in the management of this composite. The minimum account size required to be included in this composite is $2 million. This composite was created September 1988. The name of this composite was changed from Short -Term Fixed Income effective June 30, 2009. 3. The B of A Merrill Lynch Treasury 1-3 Year Index is comprised of US Treasury securities issued by the US Govemment. All securities in the index must have fixed coupon rates and have at least one year but not greater than three years to maturity regardless of any call features. 4. Valuations are computed and performance reported in U.S. Dollars. 5. Performance is calculated using a time -weighted total rate of return, which links performance monthly, and is reported gross of investment management fees and custodial fees, but after all trading expenses. Results reflect the reinvestment of income, dividends and other earnings, and include realized and unrealized gains and losses and interest accrued through the last day of each month. Results do not reflect the potential impact of taxes. Past performance is not necessarily indicative of future results. Fees charged by Chandler Asset Management will reduce performance. 6. Net -of -fees performance returns are calculated by reducing the monthly gross performance by one -twelfth (1/12) of the actual maximum applicable fee of 0.25%. These monthly retums are then geometrically linked to produce annual returns which are presented before custodial fees but after management fees, all trading expenses and withholding taxes. An account of $10 million charged a management fee of 0.40 of 1 % and with an annualized total return of 6% would have a value of $13,488,502 and would have paid fees of $266,218 after five years. Additional Information regarding Chandler's fees is included in our Part 2A of Form ADV. 7. Asset weighted standard deviation of annual returns relative to the composite return is presented as a measure of composite dispersion. Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. 8. From October 1992 until August 1993 the principals of Chandler Asset Management were associated with Acorn Asset Management. Performance during that period was achieved while they were associated with Acorn. III ® Ili Ell ES CA% GIPS° Compliant Performance 1 Year INVESTMENT PERFORMANCE' Short Term Bond June 30, 2011 3 Year 5 Year 10 Year ■Chandler Short Term Bond ®BofA ML 1-5 Year Government 9/30/1995 Period Chandler Short Term Bond BofA ML 1-5 Year Government 1 Year 3 Year 5 Year 10 Year Since Inception 9/30M995 2.37% 4.54% 5.36% 4.68% 5.37% 2.10% 3.97% 5.05% 4.29% 5.08% 'All performance figures presented above are annualized. 2Returns are presented gross of fees. Please see next page for additional information about the composite CA GIPS® Compliant Performance Short Term Bond Annual Rates of Return 2001 through 2010 Gross Net of Fee Composite Firm Composite Composite Index Composite Number of Assets Pct of Firm Assets Return Return Return Dispersion Portfolios (MM) Assets (MM) 2001 9.39% 9.11% 8.53% 0.15% 2002 7.98% 7.71% 7.54% 0.22% 2003 2.75% 2,48% 2.15% 0.12% 2004 1.89% 1.63% 1.45% 0.08% 2005 1.58% 1.33% 1.45% 0.06% 2006 4.44% 4.18% 4.04% 0.06% 2007 7.45% 7.19% 7.88% 0.17% 2008 7.65% 7.38% 8.37% 0.56% 2009 2.80% 2.55% 0.91% 0.35% 2010 3.97% 3.71% 3.46% 0.10% 11 326.33 27.72% 1,177.15 12 322.40 24.43% 1,319.72 14 459.09 26.45% 1,735.41 17 463.57 ' 23.64% 1,960.83 17 507.61 19.98% 2,540.33 21 898.29 31.14% 2,884.73 24 1,074.07 32.69% 3,285.55 22 1,202.49 33.94% 3,542.87 29 1,553.53 35.35% 4,394.10 33 1,905.97 37.51% 5,080.90 Chandler Asset Management claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Chandler Asset Management has been independently verified by Beacon Verification Services for the period of June 30, 1997 through June 30, 2011. The ve ification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm -wide basis and (2) the firm's policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. 1. Chandler Asset Management is an independent investment adviser registered as such with the Securities and Exchange Commission under the Investment Adviser's Act of 1940. Since 1988, Chandler Asset Management has provided fixed income investment management services to the public sector, as well as to foundations, endowments, individuals and corporations. A complete list and description of all of the finn's composites and additional information regarding policies for calculating and reporting performance results is available upon request. 2. The Short Term Bond Composite is a composite of individually managed accounts with an average modified duration approximately equal to the modified duration of the Bank of America Merrill Lynch government 1-5 year index and a maximum final stated maturity of individual securities of five years. Leverage is not used in management of accounts in this composite. The minimum account size required to be included in this composite is $2 million. This composite was created in September 1995. The name of this composite was changed from 1-5 Year Govemment Fixed Income effective June 30, 2009. 3. The B of A Merrill Lynch Government 1-5 Year Index is comprised of securities issued by entities of the US Govemment, including the US Treasury and Agencies such as Fannie Mae, Resolution Trust Funding and the Federal Home Loan Bank. Corporate or foreign debt guaranteed by the US Government, such as USAID securities, may also be included in the index. All securities in the index must be investment grade, have fixed coupon rates or rates that change according to a predetermined schedule, and have at least one year but not greater than five years to maturity regardless of any call features. 4. Valuations are computed and performance reported in U.S. Dollars. 5. Performance is calculated using a time -weighted total rate of return, which links performance monthly, and is reported gross of investment management fees and custodial fees, but after all trading expenses. Results reflect the reinvestment of income, dividends and other earnings, and include realized and unrealized gains and losses and interest accrued through the last day of each month. Results do not reflect the potential impact of taxes. Past performance is not necessarily indicative of future results. Fees charged by Chandler Asset Management will reduce performance. 6. Net -of -fees performance returns are calculated by reducing the monthly gross performance by one -twelfth (1/12) of the actual maximum applicable fee of 0.25%. These monthly returns are then geometrically linked to produce annual returns which are presented before custodial fees but after management fees, all trading expenses and withholding taxes. An account of $10 million charged a management fee of 0.40 of 1% and with an annualized total retum of 6% would have a value of $13,488,502 and would have paid fees of $266,218 after five years. Additional information regarding Chandler's fees is included in our Part 2A of Form ADV. 7. Asset weighted standard deviation of annual returns relative to the composite retum is presented as a measure of composite dispersion, Policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. a • • • CAI Index Disclosures • LAIF The California State Local Agency Investment Fund (LAIF) is an investment portfolio managed by the State Treasurer. All securities are purchased under the authority of Government Code Section 16430 and 16480.4 and include securities issued by entities of the U.S. Government, including the U.S. Treasury and Agencies, Corporate debt, Certificates of Deposit, Mortgage Backed Securities and certain loans to the State and state agencies. The average maturity of the Fund will be between 120 days and 18 months. BofA Merrill Lynch 0-3 Treasury Index The Merrill Lynch Treasury 0-3 Year Index is comprised of U.S. Treasury securities issued by the U.S. Government. All securities in the index must have fixed coupon rates and a maturity not greater than three years regardless of any call features. BofA Merrill Lynch Treasury 1-3 Year Index The Merrill Lynch Treasury 1-3 Year Index is comprised of U.S. Treasury securities issued by the U.S. Government. All securities in the index must have fixed coupon rates and have at least one year but not greater than three years to maturity regardless of any call features. BofA Merrill Lynch Government 1-5 Year Index The Merrill Lynch Government 1-5 Year Index is comprised of securities issued by entities of the U.S. Government, including the U.S. Treasury and Agencies such as Fannie Mae, Resolution Trust Funding and the Federal Home Loan Bank. Corporate or foreign debt guaranteed by the U.S. Government, such as USAID securities, may also be included in the index. All securities in the index must be investment grade, have fixed coupon rates or rates that change according to a predetermined schedule, and have at least one year but not greater than five years to maturity regardless of any call features. CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT VEETING DATE: November 1, 2011 AGENDA ITEM NO.16 M TITLE: City Council approval for the City of National City to participate in the County of San Diego Investment Pool. PREPARED BY: Leslie Deese, Asst. City Manager and DEPARTMENT: City Manager PHONE: Committee Members (619- 336-4240) APPROVED BY: EXPLANATION: See attached Staff Report FINANCIAL STATEMENT: ACCOUNT NO. ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: The Committee recommends that the City Council approve the City's participation in the County Pool for National City's short-term cash flow needs. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: . Staff Report Exhibit A (Summary of Investment Portfolio) 3. County of San Diego Presentation to Committee (Dated 9/12/11) Staff Report: The purpose of this report is to recommend the City Council approve the City of National City's participation in the County of San Diego Investment Pool for the reasons set forth herein. If the City Council approves the City's participation in the County's Investment Pool, the Agreement will follow at the next regularly scheduled meeting on November 15, 2011. The amount to be invested would be dependent on a cash flow analysis that would be conducted in November / December 2011. Background: 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 at 5.25% for all funds yielded $2,346,415 compared to 2011 investment earnings at 0.4% yielding $438,636 to date. Although the generation of revenues through interest earnings on investment is an appropriate City goal, the primary consideration in the investment of City funds is safety of funds by preserving capital in the overall portfolio. As such, the City's yield objective is to achieve a reasonable rate of return on City investments rather than the maximum generation of income, which could expose the City to unacceptable levels of risk. National City's Current Investment Portfolio: The combined value of the City's portfolio is approximately $50 million of various fund types which is currently placed between the California Treasurer's Local Agency Investment Fund (LAIF), at 75.39%, and other low risk securities. (Exhibit A) This amount fluctuates depending on expenditures, such as payroll and other day-to-day operations. LAIF is a liquid investment pool which allows participants to earn market rate returns of large investments, while retaining access to funds within 24 hours of a withdrawal request. The deposit limit for regular accounts is at $50 million. Over the last couple of years, due to staffing resource limitations and competing priorities, as portfolio investments matured, the proceeds were placed in LAIF rather than reinvested in other instruments. While LAIF is a secure investment that is posting market earnings that meet the City's investment goal, a concentration of the City's portfolio placed predominately in LAIF tacks diversity. Additionally, the rate of return continues to decline; going from .538 in January 2011 to .378 in September 2011. The State Treasurer's office predicts that rates are anticipated to decline even further in the coming months. For comparison purposes, for the month ended June 30, 2011, LAIF's monthly average effective yield was 0.45%, compared to the County's average effective yield of 0.86%. On July 19, 2011, the City Council approved a Request for Proposal (RFP) for Investment Management Services for the City of National City and approved the creation of a committee tasked with evaluating proposals and bringing forward a recommendation of up to two qualified firms for its investment portfolio. Utilizing the services of a professional investment advisor to manage a portion of the City's portfolio may enable to the City to achieve some "added value" and allow City staff to assume other critical finance related responsibilities. The RFP process has been completed and a separate item is docketed on the November 1, 2011 Council agenda recommending the selection of Chandler Asset Management. The RFP assumed the investment of both the City and CDC funds; however, due to AB x 27 and the pending Supreme Court stay, the City Attorney advises that the CDC funds must remain invested with LAIF until a final determination has been made by the State Supreme Court. During the RFP process, City staff became aware of several local agencies and cities in the County that participate in the San Diego County Investment Pool. The Committee requested the County make a presentation on the Investment Pool (Exhibit B). The County offers two options to its participants: 1. Invest in the County Pool which provides more flexibility for day-to-day cash flow needs; 2. A dedicated Portfolio which provides long term investment needs such as matching long term liabilities. Committee Recommendation: The Committee recommends that the City Council approve the City's participation in the County Pool for National City's short-term cash flow needs. The Committee considered several factors in its recommendation: • Provides safety, returns, liquidity, and functionality comparable to that of LAIF in which National City is already invested; • Increased accountability. The City has no accountability with LAIF. The proposed relationship with the County would create a level of accountability that does not currently exist. • Diversification of investment portfolio; • Provides more flexibility for day-to-day cash flow needs; • Accommodates National City's liquidity needs upon reasonable notice due to the size of the Pool; • High liquidity with short term bond yield; • Local access to investment and accounting staff. County of San Diego Investment Pool: The San Diego County Investment Pool is a local government money fund which ranges in size from $3.7 to $6.3 billion in assets on an annual basis. In October 2011, County TreasurerfTax Collector Dan McAllister reported that the Pool's cash has increased to a record $7.2 billion, and is managed to provide a maximum return while safeguarding principal and maintaining liquidity. The Pool was originally created in 1853 by the County Board of Supervisors to invest the assets of the County and other public agencies located within the County. The three primary objectives of the County Pool, which mirror National City's objectives, are: 1. To safeguard principal; 2. To meet liquidity needs of Pool participants; and 3. To achieve an investment return on the funds within the guidelines of prudent risk management. Investment Pool Participants: The County Pool is comprised of 42 school and community college districts, the local Airport Authority and 48 other special districts and is comprised of monies deposited by mandatory and voluntary participants. Mandatory participants include the County of San Diego K-12 school districts, community college districts and fire districts. Voluntary participants are those agencies that are not required to invest their monies in the County Pool and do so only as an investment option. Voluntary participants include cities and various special districts, including: • City of Del Mar • City of Chula Vista • City of Lemon Grove • San Diego County Regional Airport Authority • SANDAG • San Diego Housing Authority 3 Pool Investments / Securities: The Pool monies are safeguarded through a minimum investment of 67% in AAA rated paper. The AAA rating indicates extremely strong protection against losses from credit defaults for those securities. The County does not invest in any securities that receive lower than an A -rating. The County of San Diego Pool Investments: • U.S. Treasuries • Federal Agency Securities • Negotiable CDs • Collateralized CDs • Repurchase Agreements • Commercial Paper • Medium Term Notes • Money Market Funds Pool Oversight: In accordance with State law, the authority to manage the County Pool assets is delegated to the County Treasurer's Office. The Pool's investment team, which has over 75 years of investment experience, reports directly to the County Treasurer. A ten -member Oversight Committee, comprised of County officials, school district officials, a special district official and up to five public members, meets regularly to review the Pool's investment strategy. Additionally, the County Investment Policy is reviewed and approved annually by the Oversight Committee and then approved by the County Board of Supervisors. The Policy focuses on risk management by setting limits on principal exposure and liquidity. Pool Strength and Stability: The County Pool has been rated AAA by Standard & Poor's (S&P) for the past 11 years. This is the absolute highest rating issued by S&P and indicates extremely strong protection against credit losses associated with the Pool's investments. S&P also assigned the Pool an S1 rating which indicates that the Pool possesses low sensitivity to changing market conditions due to its low risk profile and conservative investment policies. A disciplined approach has resulted in successful Pool management during the recent financial crisis. Diversification of security types, issuers, and Pool participants reduces the Pool's risk exposures and Pool balance and voluntary participation have increased, resulting in a new record high balance of $7.2 billion in April 2011. Pool Risk Factors: As mandated by State law, the County Pool is invested in a conservative manner and limits the investments to fixed -income securities. As such, the Pool is prohibited from investing in equities (stocks), index funds and any of the following derivative notes; inverse floaters, range notes, interest only strips derived from a pool of mortgages, and any security that could result in a zero interest accrual. Although many risks are mitigated by strict adherence to State law and the County's Investment Policy, some risks still remain. The three main risk factors facing many investment pools are: • Credit risk: The Pool's exposure to credit risk is lessened by diligent compliance to established credit guidelines and by limiting the allocation to certain types of securities. • Liquidity risk: As of August 31, 2011 the Pool has 75.5% in securities maturing one year or less in response to market and political uncertainties. The Pool seeks to reduce the amount of liquidity risk and to provide the necessary liquidity to Pool participants by limiting both the maturing length of securities and the allocation to moderately liquid and illiquid securities. A minimum of 50% of the Pool is invested in securities that mature in one year or less and at least half of those securities mature within 90 days. • Interest rate risk. The effects of interest rate risk are managed in the Pool by limiting the Pool's maximum duration and implementing a "buy -and - hold" investment strategy. By employing this strategy, the Pool is able to avoid realized losses resulting from a rise in interest rates. Credit Quality: The investment portfolio is heavily invested in the highest quality securities. Managers limit the potential loses due to credit risk and market risk by investing in highly rated paper rated at least A or better by Standard & Poor's. The AAA rating signifies that the pool possesses low sensitivity to changing market conditions given its low risk profile and conservative investment policies. S&P regularly monitors the pool's portfolio holdings to maintain the accuracy of its credit quality and volatility profile. Portfolio Assets: The Pool's primary objectives are to safeguard investment principal, to maintain adequate liquidity to meet daily and longer-tem projected cash flows and to achieve an investment return on the funds within the parameters of prudent risk management. The pool continues to invest in top -tier commercial paper, U.S. Agencies, medium term notes, 'AAAm' rated money market mutual funds, repurchase agreements and other high credit quality short- term money market securities. The pool, which averaged $5.5 billion in assets during the past year, invests a minimum of 25% in securities maturing overnight to 91 with a total of 50% maturing (one year or less) and the remainder of the portfolio in securities maturing in five years of less. Fees: The Investment Pool allocates net earnings to its participants on a quarterly basis, with investment and administrative fees deducted from total earnings prior to distribution. Historical fees have remained competitive, averaging between 13 and 15 basis points as a percentage of participants' average daily Investment Pool balance. Banking expenses, software expenses, and Treasury personnel comprise the majority of the quarterly fees. A more detailed schedule of historical investment and administrative costs may be found in the Investment Pool CAFR on the San Diego County Treasurer's website at www.sdtreastax.com. Regional Education Resources: The County of San Diego offers a series of annual financial training seminars that are open to all pool participants, including • Cash Handling Certification Workshop • Debt Seminar • Investment Symposium • Pool Participant Annual Meeting • Fraud Prevention Seminar This is a valuable resource given the City's reduction in training and travel opportunities available to staff. Reference Checks: City staff talked to several of the cities who participate in the County's Investment Pool. All of the cities provided positive feedback on their participation in the County Pool and the ease in working with the County's investment staff. Additionally, several Committee members visited the County offices to experience firsthand how the trading desks work. The Committee feedback was that the facility is professionally staffed and security of the operation is assured by back up procedures as well as oversight of the operation. Investment staff appears very knowledgeable of their roles in the management of public funds. County of San Diego's Relationship with Chandler Asset Management: An accompanying agenda item recommends the selection of Chandler Asset Management as the City's Investment Management firm. Because Chandler serves in an advisory capacity to the County of San Diego, the Committee wanted to ensure there would not be a conflict of interest. Neither the County nor Chandler believes a conflict of interest would exist. Chandler provides advice to the County; they do not handle their investment portfolio. Chandler will provide advice separately to the City of National City and the County of San Diego; the advice provided to one would not influence the advice provided to the other. Furthermore, Chandler would only be compensated on assets National City places under their direct management; not for assets managed by the County. Resource Impacts • Available Funding — The Investment Pool allocates net earnings to its participants on a quarterly basis, with investment and administrative fees deducted from total earnings prior to distribution. • Staffing, Workload Impact — The City Manager's Office, the City Treasurer, Finance and Accounting staff will monitor the County Pool's performance. • Future Budget Implications — There will be no expenditure budget implications. Additional investment income may be realized. Next Steps: If the City Council approves the Committee's recommendation to participate in the County Investment Pool, the next steps in the process would be: Execute Agreement (Council Action) Conduct Cash Flow Analysis (Chandler/Staff) Investment Policy Update (Council Action) Review Cash Flow Projections (Staff) Wire Portal Training w/County (Staff) Transfer of Cash / Investment (Staff) CDC / Redevelopment Inv. Mgmt. Contract & Subsequent Fund Transfer November 15, 2011 November -December December 6, 2011 December 2011 December 2011 January 2012 TBD - After January 15, 2012 California Supreme Court Decision Exhibit A SUMMARY OF INVESTMENT PORTFOLIO As of June 30, 2011 Investment Type INVESTMENTS HELD BY THE CITY YTM % of Book Value Market Value 365 Equiv. Portfolio LAIF Medium Term Notes Federal Agency Securities CDARS Program 38,266,020 00 500,000.00 9,989,750.00 2,000,000.00 38,326,345.23 510,120.00 10,062,622.10 2,000,000.00 0.448%. 4.000% 2.228% 1.050% 75.39% 0.99% 19.68% 3.94% Totals for June 2011 50,755,770.00 50,899,287.33 0.857% 100.00% Totals for June 2010 51 556.596.76 Portfolio increase from same quarter last year Federal Agency Securities 19.88% Medium Term Notes 0.99% -800,826.76 CDARS Program 3.94% LAIF 75.39% Investments Liquidity Book Value % of Portfolio On Demand Within One Month One Month to One Year One Year to Two Years Five Years City of National City Finance Department 38,266,020.00 3,000,000.00 7,489,760.00 1,000,000.00 1,000,000.00 50,75.6,770.00 75.39% 5.91% 14.76% 1.97% 1.97% 100.00% County of San Diego Presentation to National City September 12, 2011 CONTENTS County of San Diego Investment Pool September 12, 2011 Dan McAllister San Diego County Treasurer -Tax Collector No.1 Presentation to National City N0.2 NO. No.4 NO.6 NO.8 Sample Pool and Dedicated Reports Reports from Chandler Asset Management Pool Investment Agreement Dedicated Portfolio Investment Agreement Investment Policy S&P Rating Requirements l l l l Upcoming Seminars, Treasury Oversight Committe Agenda & Roster PF S0544 10 rsAVERY' READY INDEX® DIVIDERS County of San Diego Presentation to National City September 12, 2011 ❑ County's Leadership Roles ❑ Pool Operations ❑ Management Structure ❑ Strength and Stability ❑ Processes, Procedures, Internal Control, and Reporting ❑ Pool Characteristics and Composition ❑ Participants Characteristics ❑ Cities and Other Voluntaries ❑ Portfolio Characteristics ❑ Proposal to National City ❑ Advantages of Investing with the County ❑ Portfolio Set -Up and Requirements ❑ Considerations in Selecting a Manager ❑ Questions & Comments 2 County's Leadership Roles ❑ San Diego County is rated AAA by Standard & Poor's ❑ Awards ❑ 2011 Certificate of Achievement for Excellence in Financial Reporting, Government Finance Officers Association (GFOA) ❑ 2011 National Association of Counties (NACo) Awards ❑ Workflow Prioritization Matrix ❑ Improved Administration of County Pool Investment Strategy ❑ Treasury Oversight Committee ❑ Quarterly Oversight Committee Meeting - October 19, 2011 ❑ Regional Education Resource - Annual Seminar Series ❑ Cash Handling Certification Workshop - September 9, 2011 ❑ Debt Seminar - November 2, 2011 ❑ Investment Symposium - February 10, 2012 ❑ Cash Handling Certification Workshop - February 10, 2012 ❑ Pool Participant Annual Meeting - February 10, 2012 ❑ Fraud Prevention Seminar - July 2012 3 County's Leadership Roles ❑ Staff Memberships and Affiliations with Industry Organizations ❑ California Association of County Treasurers and Tax Collectors — Board Member ❑ Ca1TRUST — Board Member ❑ Government Finance Officers Association — Board Member ❑ Investment Managers Public Agency Council - Founding Member ❑ Association of Finance Professionals — Member ❑ California Municipal Treasurers Association — Education Committee Member ❑ California Society of Municipal Finance Officers — Member ❑ Association Certified Fraud Examiners — Member ❑ Association of Public Treasurers— Member 4 Pool Operations Management Structure Dan McAllister Treasurer — Tax Collector • • • INVESTMENT DIVISION • • • Lisa Marie Harris Chief Deputy Treasurer Rob Castetter Chief Investment Officer • Mark van den Herik, CFA Investment Officer Grace Chang , CFA Investment Officer Chandler Asset Management External Investment Adviser • Christy White Accountancy Corporation External Auditing Firm Alejandra Lopez Assistant to Chief De u Treasurer • • • • ACCOUNTING DIVISION Rebecca Shobe Treasury Accounting Manager • Erik Mezack, CPA Assistant Accounting Manager Tony Wen Senior Accountant Bobby Bacasen, CPA Associate Accountant Roxanna Galvin Associate Accountant 6 Strength and Stability ❑ The Pool has been rated AAAf by Standard & Poor's for the past 11 years ❑ A disciplined approach resulted in successful Pool management during the recent financial crisis ❑ Diversification of security types, issuers, and Pool participants reduces the Pool's risk exposures ❑ Pool balance and voluntary participation have increased, resulting in a new record high balance of $7.2 billion in April 2011 Highest Balance from 2001— 2011 YTD (billions) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD 7 Investment Team Processes ❑ Analyze cash flows and identify investable funds ❑ Evaluate economic and market conditions ❑ Monitor portfolio performance and credit exposure ❑ Develop and execute investment strategy ❑ Manage long term carve -out portfolio in accordance to its custom benchmark (custom benchmark: 30% 1-5 Treasury, 40% 1-5yr Agency, 30% 0-1 Treasury ) ❑ Assist with debt structuring and pricing for County and school district debt issues 8 Processes, Procedures & Internal Control Treasury Accounting Trade Functions • Security settlement • Daily cash position • Portfolio reporting • Internal portfolio accounting Treasury Accounting Reconciliation and Reporting Functions • Daily and monthly bank reconciliations • Monthly investment reporting • S&P reporting • Audit coordination • CAFR preparation for Investment Pool Treasury Accounting Wire Transfer Functions • Validation of fund/bank balances • Dual verification and approval of wire transfers • Processing of Investment Pool participant wire requests 9 Wire Portal Process ❑ Web -based platform for wire requests and approvals ❑ Authorized requestors & approvers established in Wire Administration and Request Portal (WARP) ❑ For ease of use, requestors establish recurring templates for routine wire transactions ❑ Requestors have the ability to request a free form wire as needed • Wire requests require a two- day advance notice for processing ❑ Wires can be requested with less than two-day notice for exception processing , Wire I ransferRequest - 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The link In be email Mil allow you to check the status of your transfer request Al fields required Request Type O Reaming ONon:- Recurrirng y.�l Set0o.A4-NAreRequest Information - .. £I Requeennd Organl1AtiOn: San Diego Rural Fire Protection District ill wRYType: ACM - r" ACCoORO Type: O Cnednne 0 satraps Transaction Type: -T ()Credit ()Date Twnpiate IR e l emptate Name: II ( IRequeet I Date: 1p1212011 t_f Arnaud: '..Settlement I pgIDynl J ,rasa: IIiatmciary Bank Name r 6eeeRdary Bank t0cebwr C i -. _.. —, IAEA Number: Accamt I Number: AI CCcoW0t Name: I IReference:. i- (ramac0on Dexnpnat: Section 81- Accounting information Invoice Batch Name: I For mul0ple allocations, provide each indleduel POETA and Its respective amounts bycrldln2 "ADD• to ado a line. To delete a POETA !allocation, seieetIte check boxes ronespon0lntto one or more Imes and tick 'Remove Selected Alorations' Protest OrpmNtatiar E0P0,d0rteType Task Award Oracle Furst Amount 1 C I 11 I I I I 1 ski 10 Portfolio Reporting to Standard & Poor's ❑ Transparent production of Monthly Investment Reports ❑ Staff prepares all reports required per the Investment Policy ❑ All monthly investment reports are available on the San Diego County Treasurer -Tax Collector website: http://www.co.san- diego.ca.us/ttc/investment-results.html county of San !Mega Iresurer la.. collector win.lows lnt.e.not nxRln.a. t- ItolO.1 It6il izfal xl �a ,.n ...r_ Pilo Ede view eavwaa. Tools Halo 9.P Ii►a:Prraim..,rear.- . - County of San Diego ki,,,)Treasurer-i ax Co]Tectof' ,„Z _ Trea_ay gr.nual Finnna�..t R.•p..is I Ir.ve...tnrent Result, I C,evsi.rght Corntnttter' j Wire T. anzte.r Gvi of Hr c TREASURY INVESTMENT RESULTS The Trelawer's Monthly Management Report for the County of San Diego is produced and diztdbuted the ISth of each month, for the previous month. The information provided. including all charts. tables, graphs and numerical representations. is provided to readers solely as a general overview of the economic and market conditions which the Treasurer utilizes in making Investment decisions. To view the report, you can click the month and year. Note'. The monthly reports are available on line starting with January 2007 to the last month of the current date. WEL raga F V sry w.wr. j][CanDer $y5gmg5t Nareeet[ l+ .mo . b41'anra.. 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L'rtFm u.,iaa cg... 11 Pool Characteristics and Composition Pool Participants Characteristics As ofAug31, 2011 Pool Participant Breakdown Community Colleges 16.73% Schools 39.37% County Funds 29.18% Voluntary Depositors 8.50% Non County Funds Southwest Community College 6.22% Ten Largest Pool Participants Top Pool Participants Balance Percentage San Diego County Schools (K-12) San Diego Community Colleges $ 2,352,988,000 565,679,000 SD County Regional Airport Authority 269,292,000 ssnm SANDAG 99,405,000 50,283,000 39.37% 9.45% 4.51 % 1.66% 0.84% Total $ 5,813,544,000 97.26% 13 Cities and Other Voluntaries Cities and Other Voluntary Participants ❑ City of Del Mar ❑ City of Chula Vista ❑ City of Lemon Grove ❑ San Diego County Regional Airport Authority D SANDAG ❑ San Diego Housing Authority Cl Top Rationales for Participating Diversification High Liquidity with Short Term Bond Yield Convenience & Flexibility Invest Bond Proceeds to Obtain Competitive Yields Relative to GICs ❑ Local Access to Investment & Accounting Staff 14 Federal Agency 65.08% Bank Notes 1.50% Treasury Notes 4.59% Treasury Bill 1.08% Asset Allocation & Credit Quality As of Aug 31, 2011 Asset Allocation Medium Term Repurchase Notes Agreement 0.43% 0.01% Collateralized/ FDIC CD 1.00% Commercial Paper 19.28% Negotiatble Money Market CDs 2.10% 4.34% Bond Fund 0.59% Credit Quality AA A-1 0.59% 14.27% AAA 3.12% A-1+ 43.35% 15 Pool Liquidity ❑ As of August 31, 2011 the Pool has 75.5% in securities maturing one year or less in response to market and political uncertainties 50% 40% 30% 20% 10% 0% Pool Maturity Distribution (year over year comparison) 30 days or 90 days 6 months 1 year 2 year 3 year Tess 4 year 5 year 16 Proposal to National City Advantages of Investing with the County ❑ The San Diego County Pool is rated AAA by Standard & Poor's ❑ The size of the Pool allows for accommodating your liquidity needs upon reasonable notice ❑ Scale advantage in operation and transaction costs ❑ Experienced investment staff with a combined experience of 65 years ❑ Resources available for focusing on public pool investing and management ❑ Chandler Asset Management- San Diego County Pool Investment Advisor ❑ Close proximity to your office, keeping your money local ❑ Dedicated portfolios (optional) allow for flexibility 18 Portfolio Set -Up and Requirements ❑ Two options available: ❑ Invest in the Pool- provides more flexibility for day to day cash flow needs ❑ Dedicated portfolio - provides long term investment needs such as matching long term liabilities (fee is approximately 0.05%) ❑ All participants must provide an annual forecast and continuing updates of cash flow needs 19 Considerations in Selecting a Manager ❑ The manager's history including its total assets under management (UAM) and growth of UAM ❑ The manager's familiarity with California Government Codes ❑ The manager's experience in servicing similar type of clients and references from another city, if possible ❑ The stability and depth of its staff in terms of experience and turnover of the employees ❑ The mechanics of money in terms of control of funds and custodian issues Cl Appropriate insurance for the manager 20 Questions & Comments ❑ Contact Information ❑ Dan McAllister, Treasurer -Tax Collector D Lisa Marie Harris, Chief Deputy Treasurer ❑ Rob Castetter, Chief Investment Officer ❑ Grace Chang, Investment Officer To reach contacts above please call or email Alejandra Lopez at 619.531.5222 or Alejandra.Lopez2@ sdcounty.ca.gov 2 Sample Pool Reporting Summary Portfolio Statistics County of San Diego Pooled Money Fund as of July 31, 2011 US Treasury Bill US Treasury Notes FNMA Discount Notes Federal Farm Credit Bank Notes Federal Farm Credit Bank Disc Notes Federal Home Loan Bank Notes Federal Home Loan Mortg. Corp. Disc Notes Federal Home Loan Mortg. Corp. Notes Fannie Mae Corporate Medium Term Notes Bond Fund Money Market Funds Repurchase Agreements Negotiable Certificates of Deposit Bank Notes Commercial Paper Collateralized/FDIC Certificates of Deposit Totals for July 2011 Totals for June 2011 Change From Prior Month Portfolio Effective Duration Book Value Market Value Percent of Portfolio 0.90% 4.51% 8.32% 2.85 % 8.11% 10.99% 8.35% 8.53% 14.01% 0.42% 0.58% 1.77% 0.01% 6.32% 1.48% 21.86% 0.99% 100.00% Book Value $54,936,778 265,368,987 507,095,067 172,827,710 494,832,750 664,570,589 508,881,834 517,070,969 849,835,354 25,154,016 35,000,000 107,785,000 517,718 385,000,000 90,000,000 1,333,569,834 60,161,000 $6,072,607,606 Market Price 99.88% 103.61 99.93% 100.30% 99.83% 101.30% 99.91% 101.29% 101.06% 102.64% 100.40% 100.00% 100.00% 100.00% 100.00% 99.99% 100.00% 100.55% 100.00% $5,836,902,268 100.56% 235,705,338 (.01%) 0.580 years July Return 0.071% 0.065% Annualized 0.838% 0.765% Fiscal Year To Date Return 0.071% 0.065% Accrued Interest $0 2,018,023 0 377,999 0 3,322,680 0 2,208,000 6,906,504 586,215 37,650 4,745 2 28,582 4,500 0 13,072 $15,507,972 $15,515,018 ($7,046) Annualized 0.838% 0.765% Market Value $54,934,500 274,577,816 506,900,129 173,447,163 494,167,765 669,621,457 508,633,051 519,991,150 854,375,086 25,659,750 35,140,140 107,785,000 517,718 385,000,000 90.000,000 1,333,469,244 60,161,000 $6,094,380,969 $5,856,303,122 $238,077,847 Calendar Year To Date Return 0.412% 0.378% Net Unrealized Gain/(Loss) (2,278) 9,208,829 (194,938) 619,453 (664,985) 5,050,868 (248,783) 2,920,181 4,539,732 505,734 140,140 0 0 0 0 (100,590) 0 $21,773,363 Vi..ighted Average Yield to Yield to Days to Maturity Worst Maturity 0.14% 0.14% 295 2.99% 2.99% 639 0.15% 0.15% 70 1.37% 1.37% 893 0.24% 0.24% 47 1.42% 1.08% 895 0.15% 0.15% 101 1.37% 1.05% 941 1.66% 1.00% 937 4.04% 4.04% 206 0.52% 0.52% 537 0.01% 0.01% 25 0.05% 0.05% 1 0.12% 0.12% 37 0.18% 0.18% 51 0.11% 0.11% 19 0.39% 0.39% 235 0.78% 0.62% 398 $19,400,854 0.84% 0.64% 425 $2,372,509 (.06%) (.02%) (27) Annualized 0.710% 0.652% Note: Yield to maturity(YTM): is the estimated rate of return on a bond given its purchase price, assuming all coupon payments are made on a timely basis and reinvested at this same rate of return to the maturity date, Yield to call (YTC): is the estimated rate of retum on a bond given its purchase price, assuming all coupon payments are made on a timely basis and reinvested at this same rate of return to the call date. Yield to worst (YTYIQ: is the lesser of yield to maturity or yield to call, reflecting the optionality of the bond issuer. Yields for the portfolio are aggregated based on the book value of each security. COUNTY OF SAN DIEGO.TREASURER - TAX COLLECTOR Sample Dedicated Portfolio Reporting NeW TREASURER -TAX COLLECTOR COUNTY ADMINISTRATION CENTER • 1600 PACIFIC HIGHWAY, ROOM 152 SAN DIEGO, CALIFORNIA 92101.2475 • (619) 531.5221 FAX (619) 557.4093 VISIT OUR WEB SITE AT: http:/Iwww.sdtreastax.com DATE: August 26, 2011 TO: Fiscal Manager FROM: Lisa Marie Harris Chief Deputy Treasurer RE: MONTHLY INVESTMENT SUMMARY OF DAN McALLISTER TREA3URIWTAX COLLECTOR USA MARIE HAI CHIEF DEPUTY TREASURER RESERVE FUND Investment Type Yield Book Value Market Value Unrealized Gain/(Loss) Federal Farm Credit Bureau 2.36% 10,313,916 10,712,100 398,184 Federal Home Loan Bank 1.14% 15,000,974 15,004,950 3,976 Medium Term Notes 4.26% 10,079,697 10,292,300 212,603 County Investment Pool 0.78% 92,980,979 92,980,979 - Totals for July 2011 1.22% 128,376,566 128,990,329 r 614,763 Totals for June 2011 1.27% 128,278,098 128,941,518 663,421 Change from Prior Month -0.04% $ 97,469 $ 48,811 $ (48,658) Please see attached table for the Zeserve Fund's monthly investment report for July 2011. As of July 31, 2011, the book value of the portfolio is $128,375,566. Currently, 72% of the portfolio is invested in the County Investment Pool. Amounts held in the County Investment Pool represent liquidity needs of the entity that cannot be invested in long-term securities. The overall yield to maturity of the portfolio is 1.22%. If you have any questions, please call me at (619) 531-5686. Respectfully, e Ham Chief Deputy Treasurer CAI n Diego County Short Term Pool Account#10006 Portfc iummary As of 7/31 /2011 MKVVM ..ATE anoV'IV.T',Vrn .wssvea� IVAWE 92.94Vs.,rs. uaans. »natt9SN.wwxx�rfker -rn5..:.,y�,y PORTFOLIO CHARACTERISTICS ACCOUNT SUMMARY TOP ISSUERS Average Duration Average Coupon Average Purchase YTM Average Market YTM Average S&P Rating Average Final Maturity Average Life 0.30 0.69 % 0.37 % 0.28 % AAA 0.92 yrs 0.35 yrs 4,831,504,795 8,929,017 4,840,433,813 1,718,887 4,823,688,722 4,827,282,632 4,833,702,971 5,102,507,799 9,031, 941 5,111,539,740 1,581,854 69,059,799 5,096,472,000 5,098,799,710 5,104,626,245 Issuer Federal National Mortgage Assoc Federal Home Loan Mortgage Corp Federal Farrn Credit Bank Federal Home Loan Bank Citigroup Inc Union Bank of California Bank of Montreal Chicago Bank of Nova Scotia % Portfolio 22.6 % 17.6 12.4 % 9.0 % 5.9 % 5.2 % 4.7 % 4.2 % 81.6 % SECTOR ALLOCATION MATURITY DISTRIBUTION CREDIT QUALITY Agency (61.6 %) San Diego County Short Term Pool Commercial Paper (25.6 %) Money Market Fund FI Negotiable CD (7.5%) Time Deposit (0.7%) US Corporate (1.8%) 0-.25 .25-.5 .5.1 1.2 2.3 3.4 4.5 5+ NR (2.4 %) (22.2 %) 91 Day T-bill -0.01 % 0.01 % 0.08 % 0.14 % 0.36 % N/A N/A 1.79 % 8.96 Chandler Asset Management - CONFIDENTIAL Page 1 Execution Time: 8/2/2011 4:15:49 PM c� .,an Diego County Long Term Pool B Account#10014 Portfoc.., Summary As of 7/31/2011 PORTFOLIO CHARACTERISTICS ACCOUNT SUMMARY TOP ISSUERS Average Duration 1.69 Average Coupon 2.50 % Average Purchase YTM 2.03 % Average Market YTM 0.54 % Average S&P Rating AAA Average Final Maturity 1.97 yrs Average Life 1.63 yrs 1,025,807,800 6,163,214 1,031,971,013 1,736,801 1,000,000,000 1,009,619,636 1,017,254,386 967,270,902 6,048,294 973,319,197 1,624,356 -63,166,734 939,080,000 948,192,177 955,378,881 Issuer % Portfolio Government of United States 34.1 % Federal National Mortgage Assoc 21.9 % Federal Home Loan Bank 21.8 % Federal Home Loan Mortgage Corp 13.5 % Federal Farm Credit Bank 3.6 % General Electric Co 2.7 % Bank of Nova Scotia 2.4 % 100.0 % SECTOR ALLOCATION MATURITY DISTRIBUTION CREDIT QUALITY US Corporate (2.7 %) Commercial Paper' (2.4 %) Agency (60.8 %) San Diego County Long Term Pool B US Treasury (34.1 %) 25% 20% 15% 10% 5% 0.44 % 20.7 % 11.8 % 17A% 16.6% 15.2 % 12.2 % 0•.25 .25-.5 .5.1 1-2 2.3 3-4 4.5 5+ Maturity (Yrs) 0.81 % 1.40 % 1.46 3.06 % AAA (97.3 %) N/A N/A AA (2.7 %) 18.18 % San Diego County Blended Benchmark* 0.38 % 0.84 % 1.41 % 1.54% 3.12% N/A N/A 3.90 % 18.04 30% 1-5 Yr Treasury, 40% 1-5 Yr Agency, 30% 0-1 Yr Treasury as of 12/31/2009; Prior Index- 30% 1-5 Yr Treasury, 30% 1-5 Yr Agency, 10% 1-5Yr AAA -A Corp, 30% 0-1 Yr Treasury Chandler Assel ,ment - CONFIDENTIAL Execution Time: 812?, 6:44 PM TREASURER -TAX COLLECTOR COUNTY ADMINISTRATION CENTER • 1600 PACIFIC HIGHWAY, ROOM 112 SAN DIEGO, CALIFORNIA 92101-2475 • (619) 595-4605 FAX (619) 557-5398 website: http:l/www.sdtreastax.com INVESTMENT MANAGEMENT AGREEMENT PROVIDING FOR INVESTMENT IN THE SAN DIEGO COUNTY TREASURER'S POOLED INVESTMENT FUND Dan McAllister TREASURER -TAX COLLECTOR THIS INVESTMENT MANAGEMENT AGREEMENT ("Agreement") IS ENTERED INTO AS OF , 200 , BY AND BETWEEN ("Agency") AND THE SAN DIEGO COUNTY TREASURER -TAX COLLECTOR ("Treasurer"). RECITALS A. Agency is a local public agency within the County of San Diego that is authorized by law to deposit funds to be managed and invested by the Treasurer. B. The governing body of Agency has by action dated , requested that the Treasurer accept a deposit of Agency's funds to be deposited in the San Diego County Treasurer's Pooled Investment Fund, ("the Pool"), which contains County funds and money deposited by other Local public agencies. C. Treasurer has provided Agency with a copy of the Treasurer's Investment Policy for the Pool ("Policy") adopted pursuant to Government Code section 27133, and Agency has reviewed the policy prior to entering into this Agreement. A copy of the Policy is attached hereto as Exhibit A. The Policy is subject to annual revision. IN VIEW OF THE ABOVE RECITALS, THE PARTIES AGREE AS FOLLOWS: 1. Deposit of Funds. Agency will deposit $ with Treasurer to be managed and invested as part of the Pool. Agency may, from time to time, as authorized by its goveming body and with the approval of the Treasurer, deposit additional funds with the Treasurer pursuant to this Agreement. Agency will provide the Treasurer with written documentation of its governing body's approval of the deposits. 2. Investment of Funds. Treasurer will manage and invest deposited funds in accordance with the Policy including any amendments or revisions to the Policy. 3. Notice of Amendments or Revisions of Policy. Treasurer will provide Agency with a copy of any amendments or revisions of the Policy within 30 days of the amendment or revision. 31 4. Non -Liability for Investment Results. Agency understands and agrees that as long as Treasurer invests the deposited funds in accordance with the Policy, neither Treasurer nor the County of San Diego shall be responsible or liable for any investment losses suffered by Agency or for any underperformance of the funds deposited. 5. Term of Agreement and Withdrawal of Funds. The term of this Agreement commences on the date set forth above and terminates when Agency has withdrawn all funds from the Pool. Agency may withdraw all or any portion of its funds subject to the conditions set forth in paragraph 35 of the Policy. Treasurer may terminate this agreement by giving Agency thirty days notice of termination, at which time Agency must withdraw all its funds from the Pool. 6. Reports and Annual Meeting. Agency shall provide Treasurer with cash flow reports on a quarterly basis indicating projected contributions to and withdrawals from the Pool. Treasurer shall provide Agency with monthly reports covering the performance of the pool and shall annually meet in person with Agency representatives to discuss any issues between the parties. 7. Disputes. The Parties agree to attempt to resolve any disputes under this Agreement by informal means and, if necessary, by mediation. Should mediation fail to resolve the dispute, either party may pursue its legal remedies. 8. Contacts for Responsibility. This Agreement shall be administered on behalf of the Treasurer by Lisa Marie Harris, Deputy Treasurer, and on behalf of Agency by . Either party, by written notice to the other, may change the person responsible for administering this Agreement. 9. Notices. Any notices provided for in this Agreement shall deliver personally or by United States mail, as follows: Treasurer: Lisa Marie Harris, Chief Deputy Treasurer 1600 Pacific Hwy., Room 102 San Diego, California 92101 Agency: Either party, by written notice to the other, may change the name and/or address to which written notices must be delivered. 10. Entire Agreement. This Agreement constitutes the entire agreement of the parties and supersedes any previous oral or written agreements. This Agreement may be amended only by written amendment executed by both parties. SAN DIEGO COUNTY TREASURER -TAX COLLECTOR By: AGENCY By: 90 Investment Framework: Objective: Constraints: Risk Tolerance: Credit Quality: Liquidity: Time Horizon: Taxes: Other: DEDICATED PORTFOLIO STATEMENT OF GUIDELINES & POLICIES Invest in high quality securities while maximizing yield in a portfolio with limited needs. In order of importance: Safety, Return and Liquidity. Client understands unrealized losses may occur Short term: A-1, Long term: AAA Updated cash flow model to be provided to Investment Staff on a quarterly basis. Portfolio life of 5+ years. Investment maturities not exceed 5 years. Not applicable Not applicable Profile: Portfolio Structure: Portfolio will invest primarily in the County Investment Pool, Commercial Paper, Negotiable CD, Medium Term Notes, US Agencies and Treasuries. The average duration of this portfolio will vary from 1 to 3 years based on interest rate expectations. Permissible Investment: Funds to be invested in the County Investment Pool ("Pool") or any investment authorized pursuant to Sections 53601 and 53635 of the Government Code pursuant to Constraints listed above. Primary Risks: Interest Rate Risk: As interest rates rise, the value of fixed income securities held by the portfolio is likely to decrease. Securities with longer dated maturities tend to be more sensitive to changes in interest rates, usually making them more volatile and susceptible to unrealized losses than securities with shorter dated maturities. This portfolio will most likely maintain longer dated maturities than both LAIF and the County Pool, hence more susceptible to unrealized losses. Issuer Non -Diversification Risk: A focus of investments in a small number of issuers or industries increases risk. Funds that invest in a relatively small number of issuers are more susceptible to risks associated with a single economic, political or regulatory occurrence than a more diversified portfolio might be. This portfolio will be less diversified than both LAIF and the County Pool, hence, more susceptible to Non -Diversification Risk. Expectations: Five year quarterly cash flow projection with expected draw schedule to be updated on a periodic basis or as needed. Any substantial cumulative deviation from the draw schedule may result in realized losses as the Investment Staff might have to liquidate assets to meet updated liquidity needs. Investment Staff Monthly Investment Report on portfolio performance. o SAN DIEGO COUNTY TREASURER'S CA DIEC 4� ��'��'� o POOLED MONEY FUND 0 1,�ry� °1 INVESTMENT POLICY N'h�MoCCC... January 1,2011 The Investment Policy and practices of the County Treasurer are based on prudent money management principles and California State Law, specifically Government Code Sections 27000.1 - 27000.5, 27130 - 27137, and 53600 - 53686. Section 53635 shall apply to a local agency that is a county, or other local agency that pools money in deposits or investments with other local agencies, including local agencies that have the same governing body. However, Section 53601 shall apply to all local agencies that pool money in deposits or investments exclusively with local agencies that have the same governing body. Section 53601.7 provides permissive authority to adopt policy to manage funds much like a money market fund. This Section will not be implemented for the Pooled Money Fund (the "Fund"). The practices of this office will always comply with the legal authority and limitations placed on it by the governing legislative bodies. The implementation of these laws, allowing for the dynamics of the money markets, will be the focus of this policy statement. All matters contained in this policy are to be read and applied pursuant to and consistent with state law. Where this Investment Policy specifies a percentage limitation, compliance will be measured as of the date of purchase. When investing, reinvesting, purchasing, acquiring, exchanging, selling and managing the Fund the objectives of this office shall be: 1. The primary objective shall be to safeguard the principal of the funds under the County Treasurer's control. 2. The secondary objective shall be to meet the liquidity needs of the participants. 3. The third objective shall be to achieve an investment return on the funds under control of the County Treasurer within the parameters of prudent risk management. The Fund is an actively managed portfolio. By this it is meant that the County Treasurer and his staff will observe, review, and react to changing conditions that affect the Fund; this shall be viewed as a full time responsibility by the County Treasurer and his staff. The authority to execute investment transactions that will affect the Fund will be limited to: County Treasurer Chief Deputy Treasurer Chief Investment Officer Investment Officers The County Treasurer and the above staff will meet on a regular basis to discuss current market conditions and future trends and how each of these affects the Fund. TABLE OF CONTENTS SAN DIEGO COUNTY TREASURER INVESTMENT POLICY Pool Policy Security of Principal Policy 3 Liquidity Policy 3 Return Policy 3 Maturity Policy 3 Prohibited Securities 4 Credit Rating Policy 4-5 Internal Controls 5-6 Permissible Investments Permissible Investments 6 Government Obligations 6-7 Local Agency Obligations 7 Bankers Acceptance 7-8 Commercial Paper 8 Medium -Term Notes 9 Negotiable Certificates of Deposit 9-10 Repurchase Agreements 10-11 Reverse Repurchase Agreements 11-12 Collateralized Certificates of Deposit 12-13 Covered Ca11/Put Options 13-14 Money Market Mutual Fund 14 Cal TRUST 14-15 Pass -through Securities 15When- issued Securities 16 Other Policy Topics Illiquidity Limitations 16 Maximum Exposure for Any One Issuer 16 Criteria for Selecting Brokers & Dealers 16-17 Securities Lending 17-18 Delegation of Investment Authority to the County Treasurer 18 Safekeeping Authority 18 County Treasury Oversight Committee 18 Rules Governing the Acceptance of Honoraria, Gifts and Gratuities 18-19 Reporting 19 Annual Audit 20 Cost and Earning Apportionment 20-21 Terms and Conditions for Depositing Funds by Voluntary Participants 21-22 Criteria for Withdrawal of Funds from the County Pool (Voluntary Participants) 22 Grandfathcred Agencies 22 Glossary of Terms 23-26 )j 3 2011 SAN DIEGO COUNTY TREASURER'S POOLED MONEY FUND INVESTMENT POLICY The purpose of the County Treasurer's Investment Policy is to implement the legislated parameters of the investment authority of the Fund. As an elected official of the County of San Diego, the County Treasurer must manage public monies in a way that is consistent with investment oversight, and sound investment practices. To have a policy which only concerns itself with maximizing return is a very dangerous course. The basic concept of investment return is based on a risk/reward relationship. Therefore, the higher the return, the higher the risk. Risk management must be an integral part of any investment policy. Risk management must include adequate internal controls so that Fund depositors and the public have confidence that public monies are secure. The policy stated below will concern itself with risk management. 1. SECURITY OF PRINCIPAL POLICY - The policy issues directed to protecting the principal entrusted to this office are: A. Limiting the Fund's exposure to each type of security. B. Limiting the Fund's exposure to each issue and issuer of debt. C. Determining the minimum credit requirement for each type of security. 2. LIQUIDITY POLICY - The policy issues directed to provide necessary liquidity to the participants are: A. Limiting the length of maturity for securities in the Fund. B. Limiting the Fund's exposure to Moderately Liquid and Illiquid securities. 3. RETURN POLICY - The policy issues directed to achieving a return are: A. Attaining a market rate of return taking into account the investment risk constraints and liquidity needs. B. A majority of the investments shall be limited to low risk securities in anticipation of earning a fair return relative to the risk being taken. 4. MATURITY POLICY A. The maximum maturity allowed by the California Government Code is 5 years with shorter limitations specified for certain types of securities. The mandatory minimum for the maturity structure of the Fund shall be to have 50% of the Fund in instruments with remaining maturities of one year or less. Furthermore, at least 25% of the Fund must mature within 90 days. The maximum effective duration for the Fund shall be 1.50 years. The following bullet points summarize these parameters: • At least 50% of the Fund maturing within t year • At least 25% of the Fund maturing within 90 days • Maximum effective duration of 1.50 years B. The Fund will be considered in compliance with the maturity policy if it meets the maturity targets above. In the event that the Fund distribution does not comply with the table above, until such time as the Fund is within maturity targets, all securities purchased shall be of a maturity or duration that will lower the maturity and or duration of the Fund. In the event a compliance violation has occurred, a variance report shall be made to the Oversight Committee as part of the normal monthly reporting. 5. PROHIBITED SECURITIES The California Government Code prohibits a local agency to invest in any of the following derivative notes: • Inverse Floater • Range Notes • Interest -only strips derived from a pool of mortgages • Any security that could result in zero interest accrual 6. CREDIT RATING POLICY A. This Investment Policy sets forth minimum credit ratings for each type of security. These credit limits apply to the initial purchase of a security and does not automatically force the sale of a security if the credit ratings of the security fall below the policy limits. B. The monitoring of credit ratings consists of the following procedures: 1. When a credit rating downgrade occurs, the Investment Group will evaluate the downgrade on a case -by -case situation to determine whether to hold or sell the security after further analysis of the credit rating on an ongoing basis. 2. In the event a security in the Fund receives a credit rating downgrade, the Investment Group will report the rating change to the Oversight Committee in the monthly report. In the same manner, the Oversight Committee will be informed on the Investment Group's decision to hold or sell a downgraded security. 3. The Investment Group shall meet at least quarterly to review and update the approved list of securities and establish credit criteria for each category of security. L. To ensure that the Fund maintains an overall credit rating of AAAf / Si, the highest rating given by Standard & Poors, the asset allocation with respect to credit quality will be provided to S&P on a monthly basis. Rated investments below Al (short term) or A (long term) rated, at the time of purchase, are prohibited in this policy. 7. INTERNAL CONTROLS A. The Chief Deputy Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the entity are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that: 1. The cost of a control should not exceed the benefits likely to be derived; and 2. The valuation of costs and benefits requires estimates and judgments by management. B. Accordingly, the Chief Deputy Treasurer shall establish and maintain internal controls that shall address the following points: 1. Control of Collusion - Collusion is a situation where two or more employees are working in conjunction to defraud their employer. 2. Separation of Transaction Authority from Accounting and Record Keeping - By separating the person who authorizes the transaction from the people who record or otherwise account for the transaction, a separation of duties is achieved. 3. Custodial Safekeeping - Securities purchased from any bank or dealer including appropriate collateral (as defined by California State Law), not insured by FDIC, shall be placed with an independent third party for custodial safekeeping. 4. Avoidance of Physical Delivered Bearer Securities - Book entry securities are much easier to transfer and account for since actual delivery of a document never takes place. Bearer securities must be properly safeguarded against loss or destruction. The potential for fraud and loss increases with such securities. 5. Clear Delegation of Authority to Subordinate Staff Members - Subordinate staff members must have a clear understanding of their authority and responsibilities to avoid improper actions. Clear delegation of authority also preserves the internal control structure that f�' is contingent on the various staff positions and their respective responsibilities. 6. Written Confirmation of Telephone Wire Transfers - Due to the potential for error and improprieties arising from telephone transactions, all telephone transactions should be supported by written or electronic communications and approved by the appropriate person. 7. Development of a Wire Transfer Agreement with the Lead Bank or Third Party Custodian - This agreement should outline the various controls, security provisions, and delineate responsibilities of each party making and receiving wire transfers. 8. Development of the Annual Treasurer's Investment Manual. Annually, Investment staff and Accounting staff will review and update internal control policies as stated in the manual. C. Provide for an annual independent review by an external auditor to assure compliance with policies and procedures. 8. PERMISSIBLE INVESTMENTS - Government Codes 53601, 53601.1, 53601.2, 53601.8, 53635, 53637, 53638, 53651, 53652, and 53653 address permissible investments. These investment categories are addressed individually in sections 9-22 below. 9. GOVERNMENT OBLIGATIONS - The Fund invests in two categories of Government Obligations: U.S. Treasury and Agency obligations. Both are issued at the Federal level. U.S. Treasury obligations are bills, notes and bonds issued by the Treasury and are direct obligations of the Federal Government. Agency obligations are notes and bonds of federal agencies, and government sponsored enterprises. Agencies are not the direct obligation of the Treasury but involve federal sponsorship or guarantees. A. Maximum Maturity - The maximum maturity of an issue shall be the current 5-year issue or an issue, which, at the time of the investment, has a term remaining to maturity not in excess of 5 years. B. Maximum Exposure of Fund - The maximum exposure to the Fund for this category is unlimited. C. Maximum Exposure Per Issue - The maximum exposure to the Fund of a single issue shall be 5% of the Fund value. D. Maximum Exposure Per Issuer - The maximum exposure to the Fund for an individual issuer shall be: 1. Treasury - Unlimited `i 7 2. Agency - No more than 25% of the Fund value shall be invested in any single issuer. E. Minimum Credit Requirement — None F. Liquidity Category - Liquid 10. LOCAL AGENCY OBLIGATIONS - These are bonds, notes, warrants or other evidences of indebtedness of any local agency or by a department, board or authority of any local agency within this State. In addition, the Fund is further authorized to purchase bonds and notes of any of the other 49 United States. A. Maximum Maturity - The maximum maturity of an issue shall be 5 years. B. Maximum Exposure of Fund - The maximum exposure to the Fund for this category shall be 15%. C. Maximum Exposure Per Issue - The maximum exposure to the Fund of a single issue shall be 5% of the Fund value. D. Maximum Exposure Per Issuer - The maximum exposure to a single issuer shall be 10% of the Fund value. E. Minimum Credit Requirement - Issuers outside of the County must be at or above the following investment grade from one of these ratings firms: 1. Standard & Poor's — SP-1 or A (long-term when applicable) 2. Fitch — F-1 or A (long-term when applicable) 3. Moody's - MIG 1 or A (long-term when applicable) (For 1 year or less, use short-term rating) (For over 1 year, use long-term ratings) F. Liquidity Category — Moderately Liquid 11. BANKER'S ACCEPTANCE - This is a draft or hill of exchange, accepted by a bank or trust company and brokered to investors in a secondary market. The purpose of the banker's acceptance (BA) is to facilitate trade and provide liquidity to the import-export markets. Acceptances are collateralized by the pledge of documents such as invoices, trust receipts, and other documents evidencing ownership and insurance of the goods financed. Since it's inception in 1914, there has been no known loss of principal to investors through the use of Banker's Acceptances. A. Maximum Maturity - the maximum maturity of an issue shall be 180 days. B. Maximum Exposure of Fund - The maximum exposure to the Fund for this category shall be 40%. C. Maximum Exposure Per Issue - The maximum exposure to a single issue shall be 2.5% of the Fund value. D. Maximum Exposure Per Issuer - The maximum exposure to a single issuer shall be 5% of the Fund value. E. Minimum Credit Requirement — The security must be at or above the following investment grade from one of these rating firms. If unrated by Standard & Poor's, security would need to be authorized by Standard & Poor's with a shadow rating prior to purchase. 1. Standard & Poor's — A-1 2. Moody's — P-1 3. Fitch — F-1 F. Liquidity Category — Liquid 12. COMMERCIAL PAPER - These are short-term, unsecured, promissory notes 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. A. Maximum Maturity - The maximum maturity of an issue shall be 270 days. B. Maximum Exposure of Fund - The maximum exposure to the Fund for this category shall be 40%. C. Maximum Exposure Per Issue - The maximum exposure to a single issue shall be 2.5% of the Fund for maturities greater than 5 days, 5% of the Fund value for paper maturing in 5 days or less. D. Maximum Exposure Per Issuer - The maximum exposure to a single issuer shall be 5% of the Fund value. E. Minimum Credit Requirements — The security must have the following minimum investment grade rating from one of these rating firms. If unrated by Standard & Poor's, security would need to be authorized by Standard & Poor's with a shadow rating prior to purchase. 1. Standard & Poor's — A-1 or A (long-term when applicable) 2. Fitch — F-1 or A (long-term when applicable) 3. Moody's — P-1 or A (long-term when applicable) F. Liquidity Category - Liquid MEDIUM -TERM NOTES ("MTN") - These are corporate notes, deposit notes, and bank notes sold by an agent in the open market on a continually offered basis. Issuers include well recognized banks and bank holding companies, thrifts, finance companies, insurance companies, and industrial corporations. These medium term notes are debt obligations generally unsecured, although some issues come to market on a collateralized or secured basis. A. Maximum Maturity - The maximum maturity of an issue shall be 5 years. B. Maximum Exposure of Fund - The maximum exposure to the Fund for this category shall be 30%. C. Maximum Exposure Per Issue — the maximum exposure to a single issue shall be 2.5% of the Fund issue. D. Maximum Exposure Per Issuer - The maximum exposure to a single issuer shall be 5% of the Fund value. E. Minimum Credit Requirements — The security must have the following minimum investment grade rating from one of these rating firms. If unrated by Standard & Poor's, security would need to be authorized by Standard & Poor's with a shadow rating prior to purchase. 1. Standard & Poor's —A-1 or A (long-term when applicable) 2. Moody's —P-1 or A (long-term when applicable) 3. Fitch —F-1 or A (long-term when applicable) (MTN's 1 year or less, use short-term rating.) (For MTN's over 1 year, use long-term rating.) F. Liquidity Category - Liquid 14. NEGOTIABLE CERTIFICATES OF DEPOSIT - These are issued by commercial banks and thrift institutions against funds deposited for specified periods of time and earn specified or variable rates of interest. Negotiable certificates of deposit ("NCD") differ from other certificates of deposit by their liquidity. NCD's are traded actively in secondary markets. In compliance with California Code 53601.8, all FDIC insured CD's, whether directly placed or placed through a private sector entity, will be classified as a NCD. A. Maximum Maturity 1. The maximum maturity of a NCD issue shall be 5 years. 2. The maximum maturity of any FDIC insured CD's, whether directly placed or placed through a private sector entity, shall be 13 months. So B. Maximum Exposure of Fund - The maximum exposure to the Fund for this category shall be 30%. C. Maximum Exposure Per Issue - The maximum exposure to a single issue shall be 2.5% of the Fund value. D. Maximum Exposure Per Issuer - The maximum exposure to a single issuer shall be 5% of the Fund value. E. Minimum Credit Requirement 1. All NCD must have the following investment grade from one of these rating firms. If unrated by Standard & Poor's, security would need to be authorized by Standard & Poor's with a shadow rating prior to purchase. a) Standard & Poor's - A=1 or A (long-term when applicable) b) Moody's - P-1 or A (long-term when applicable) c) Fitch - F-1 or A (long-term when applicable) (For NCD's 1 year or Less, use short-term rating) (For NCD's over 1 year, use Tong -term rating) 2. There is no minimum credit requirement for FDIC insured CD's, whether directly placed or placed through a private sector entity. F. Liquidity Category — Liquid 15. REPURCHASE AGREEMENT - A repurchase agreement (RP) consists of two simultaneous transactions. One is the purchase of securities by an investor (the Fund); the other is the commitment by the seller (i.e. a broker/dealer) to repurchase the securities at the same price, plus interest, at some mutually agreed - upon future date. A. Maximum Maturity - The maximum maturity of repurchase agreements shall be one year. B. Maximum Exposure of Fund - The maximum exposure to the Fund for this category shall be 40%. C. Maximum Exposure Per Issue - The maximum exposure to a single RP issue shall be 10% of the Fund value for RP's with maturities greater than 5 days, 15% of the Fund for RP's maturing in 5 days or less. D. Maximum Exposure Per Broker/Dealer - The maximum exposure to a single broker/dealer of RP shall be 10% of the Fund when the dollar weighted average maturity is greater than 6 days, 15% of the Fund when the dollar weighted average maturity is 6 days or less. 5E E. Eligible Broker/Dealers — Broker/Dealers shall sign a PSA Master Repurchase Agreement or a Tri-Party Repurchase Agreement. The Agreement must specify a minimum margin percentage of 102% and also provide for daily mark -to -market of the collateral by the custodian hank. F. Eligible Collateral - The securities eligible for repurchase agreement transactions shall be a security authorized in Section 53601 of the California Government Code. Collateral eligible for repurchase agreements maturing 7 days to 1 year shall be Treasuries and Government Agencies. G. Delivery of Collateral — Broker/Dealers shall deliver the underlying securities to either the County's safekeeping bank or a mutually agreed upon third party custodian bank or a counterparty bank's customer book -entry account. When a third party custodian is used, it will be the custodian's responsibility to transfer funds and securities between the broker/dealer and the County Fund in accordance with the terms of the repurchase agreement. H. Liquidity Category - Liquid 16. REVERSE REPURCHASE AGREEMENT - Reverse repurchase agreements (RRPs) are essentially the mirror image of RPs. In this instance, the Fund is the seller of securities and the broker or bank is the investor. Due to the nature of RRPs, the policy regarding this instrument is different from the above RP policy. A. Maximum Maturity — The maximum maturity of a securities lending loan shall be 92 days unless the agreement includes a written guarantee of a minimum earning or spread fro the entire period of the RRP. B. Maximum Exposure of Fund — No more than 20% of the Fund shall he invested in RRP's and/or securities lending at any one time. C. Maximum Exposure Per Issue — The maximum exposure to a single RRP issue shall be 5% of the Fund value. D. Maximum exposure Per Broker/Dealer — No more than 10% of the Fund shall be invested in RRP's with any one broker/dealer at any one time. E. Purpose of RRPs - The uses of RRPs shall be to invest the proceeds from the agreement into permissible securities that have the highest short-term credit ratings; to supplement the yield on securities owned; or to provide funds for the immediate payment of an obligation. The maturity of the RRP and the maturity of the security purchased shall be the same. S.� F. Eligible Securities - A RRP may only be entered into with a security, authorized in California Government Code 53601, which has been owned and paid for 30 days prior to the settlement of the RRP. G. Eligible Broker/Dealer — Broker/Dealers shall be primary broker/dealers of the Federal Reserve Bank of New York. H. Liquidity Category - Liquid 17. COLLATERALIZED CERTIFICATES OF DEPOSIT - This is the deposit of funds made by the County Treasurer in state or national banks or state or federal savings and loan associations or federal credit unions or FDIC insured industrial loan companies in California per California Government Code Section 53652. The deposit of the funds will be made under the following conditions: A. The deposit may not exceed the total of the paid up capital and surplus of a depository. B. The depository must maintain securities with a market value of at least 10% in excess of the total amount of the County Treasurer's deposits. These securities will be placed in the institution's pooled collateral account and monitored by the State Treasurer of California or a mutually agreed upon third party custodian bank. C. The County Treasurer may waive the first $250,000 of collateral for each depository, so long as that amount is insured by an agency of the Federal Government. The documents listed below in D will not be required for deposits of $250,000 or less. D. Each institution which receives County deposits must provide the County Treasurer with an up-to-date Contract, Annual Report, Affirmative Action Policy, Community Reinvestment Act Statement and EEO-1 Form. E. Maximum maturity shall be 13 months. F. Maximum exposure to the Fund for collateralized Certificates of Deposit shall be 10%. G. Institutions at or above the following investment grade, as deter -mined by the respective rating firms, may pledge mortgage based collateral for County deposits: 1. Fitch — F-1 2. Moody's — P-1 3. Standard & Poor's — A-1 H. Liquidity Category — Illiquid 13. COVERED CALL OPTION/PUT OPTION - An option is the right to buy or sell a specific security within a specific time period at a specific price. A. A covered call is when the County Treasurer sells the option to another party, giving them the right to buy an existing security in the Fund at a specific price within a specific time period. B. A put option is when the County Treasurer sells the option to another party, giving them the right to sell to the County Treasurer a security at a specific price within a specific time period. C. The seller of a covered call option/put option is paid at the time of the sale of the option. At the end of the option period, if the option is not exercised, the right to buy or sell the security is canceled. D. The County Treasurer will act only as a seller of covered call and put options with the following exception: County Treasurer may buy an option to offset an existing open option position. E. Securities subject to covered calls shall not be used for Reverse Repurchase Agreements. F. Cash sufficient to pay for outstanding puts shall be invested in securities maturing on or before the expiration date of the options. G. Maximum maturity - The maximum maturity of a covered call option/put option shall be 90 days. H. Maximum exposure - No more than 10% of the Fund may have options written against it at any given time. I. Credit risk - Options shall only be written with primary dealers. J. Liquidity Category - Liquid 19. MONEY MARKET MUTUAL FUND - Shares of beneficial interest issued by management companies. Such shares represent ownership of a diversified portfolio of securities, which are redeemable at their net asset value. The Government Code allows for purchases of mutual funds, but the Fund will limit use to money market mutual funds managed to maintain a $1.00 share price. A. Maximum exposure - The maximum exposure to the Fund for this category shall be 15%. B. Purchase price - The purchase price of the mutual fund shall not include any commission. C. Maximum exposure per fund - The maximum exposure to a single mutual fund shall be 10% of the Fund value. D. Minimum credit requirement - Mutual funds must have the following investment grade from at least one of these rating firms or retain an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than five years experience managing money market mutual funds with assets under management in excess of five hundred million dollars: 1. Standard & Poor's - AAAf 2. Moody's - Aaa 3. Fitch - Aaa E. Liquidity Category — Liquid 20. INVESTMENT TRUST OF CALIFORNIA (Cal TRUST) is a pooled investment program through the Ca1TRUST Joint Powers Authority, authorized by Government Code Section 53601(p). Ca1TRUST provides two pooled account options (Short -Term Account provides daily liquidity and the Medium -Term Account permits monthly deposits and withdrawals). All of the accounts comply with the limitations 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. A. Maximum Exposure — The maximum exposure to the Fund for this category shall be (2.5%), subject to limitations placed upon deposits by Ca1TRUST. B. Liquidity Category — Illiquid 21. PASS -THROUGH SECURITIES - These will be limited to equipment lease - backed certificates, consumer receivable pass -through certificates or consumer receivable -backed bonds. A. Maximum maturity - The maximum maturity of an issue shall be 5 years. B. Maximum exposure - The maximum exposure to the Fund for this category shall be 20%. C. Maximum exposure per issue - The maximum exposure to a single issue shall be 2.5% of the Fund value. SS D. Maximum exposure per issuer - The maximum exposure to a single issuer shall be 5% of the Fund value. E. Minimum credit requirement issuer — Issuers, if rated, must have the following investment grade from one of these rating firms: 1. Fitch —A 2. Moody's —A 3. Standard & Poor's —A F. Minimum credit requirement security - The security must have the following investment grade from one of these rating firms. If unrated by Standard & Poor's, security would need to be authorized by Standard & Poor's with a shadow rating prior to purchase. 1. Standard & Poor's —A-1 or AA (long-term when applicable) 2. Moody's —P-1 or AA (long-term when applicable) 3. Fitch —F-1 or AA (long-term when applicable) (For 1 year or less, use short-term rating) (For over 1 year, use long-term rating) G. Liquidity Category - Liquid 22. WHEN -ISSUED SECURITIES - The Fund may invest in new issues of Government Obligations offered on a when -issued basis; that is, delivery and payment take place after the date of the commitment to purchase, normally within 15 days. Both price and interest rate are fixed at the time of commitment. This allows the Fund to lock in an interest rate that may not be available on the issue date. The Fund does not earn interest on the securities until settlement, and the market value of the securities may fluctuate between purchase and settlement. Such securities can be sold before settlement. 23. ILLIQUIDITY LIMITATIONS - The Fund may not invest more than 20% of the total Fund in combination of Local Agency Obligations, which are classified as Moderately Liquid, and Collateralized Certificates of Deposit, which are classified as Illiquid. All other Investment Policy sanctioned asset categories are classified as Liquid. 24. MAXIMUM EXPOSURE FOR ANY ONE ISSUER — Unless otherwise specified in this policy, if a single issuer is involved in more than one of the above listed investment categories, the exposure to the issuer is limited to 5% of the Fund. The aforementioned does not apply to repurchase agreements. The limits for repurchase agreements are set forth in the County Treasurer's Policy in section 15. 5h 25. CRITERIA FOR SELECTING BROKERS AND DEALERS - In order to eliminate risk in making investments under this Investment Policy, all investments will be made only through qualified dealers. A. A qualified dealer must be a bank, savings and loan association, or an investment securities dealer. Commercial Paper and Certificate of Deposit issuers may be considered qualified dealers for direct issuance of their paper. B. Any dealer entering into a new business relationship to conduct security transactions with the County Treasurer is required to make application and qualify for recommendations by the Investment Group to the County Treasurer. C. The dealer must ensure that its staff is aware of the County Treasurer's Investment Policy and the California Government Code Sections 53601 and 53635. D. Investment securities dealers for Reverse Repurchase Agreements must be primary dealers regularly reporting to the Federal Reserve Bank. E. The dealer is required to have a net capital in excess of $1 million with liquidity lines of $50 million or more. F. The dealer is required to maintain an active secondary market for securities sold to the County and must be competitive in price for bids and offers. G. The dealer will be monitored by the Investment Group to ensure the services the County requires are delivered in a tinny and efficient manner. H. The primary account representative must be in the institutional or middle market fixed income division with 5 years or more experience covering large municipalities. I. A qualified dealer must not have made any political contributions to the County Treasurer, any member of the Board of Supervisors, or any candidate for these offices within any consecutive 48-month period following January 2006. The exception is if the broker/dealer is entitled to vote for any of these offices, the contributions shall not be in excess of $250 to each official per election. J. Each dealer every three years will be required to respond to the County's Request for Information (RFI) providing the County with up to date financial and investment experience information. 26. SECURITIES LENDING - This is a program conducted by an agent authorized to execute securities lending under the guidelines listed under RRP's and as detailed in the "Services for Securities Lending Agreement." A securities lending transaction is when the Fund transfers its securities to broker/dealers and other entities for collateral which may be cash or securities and simultaneously agrees to return the collateral for the same securities in the future. The loans must be secured continuously by cash collateral or securities and maintained at a value of at least equal to 102 % of the market value of the securities loaned. During the term of the loan, the Fund will continue to receive the equivalent of the interest paid by the issuer of the securities loaned. The Fund will have the right to call the loan and receive the securities loaned at any time with one day's notice. A. Maximum Maturity - The maximum maturity of a securities lending loan shall be 92 days. B. Maximum Exposure of Fund - No more than 20% of the Fund shall be exposed to securities lending and/or RRP's at any one time. C. Maximum Exposure Per Loan - The maximum exposure per loan shall be 5% of the total Fund. D. Maximum Exposure Per Counterpart - No more than 10% of the Fund shall be on loan with any single counterpart at any one time. E. Reinvestment shall be limited to Government Code and the County's authorized investment list. 27. DELEGATION OF INVESTMENT AUTHORITY TO THE COUNTY TREASURER - The State of California gives the Board of Supervisors the ability to delegate the investment authority to the County Treasurer for a one-year period in accordance with Section 53607 of the California Government Code. The delegation will require renewal each year. 28. SAFEKEEPING AUTHORITY A. The State of California gives the Board of Supervisors the ability to delegate the deposit for safekeeping authority to the County Treasurer in accordance with Section 53608 of the California Government Code. Board Resolution 109 adopted September 29, 1959 delegated this authority to the County Treasurer. B. In exercising this safekeeping function, the County Treasurer will require depositories to provide evidence that they are taking reasonable measures to prevent unauthorized access to the depository's electronic data files. C. The County Treasurer's Manual addresses contingency plans in the event that a disaster, natural or otherwise, disrupts normal operations. Contingency plans vary depending upon the severity and expected longevity of the disruption. se 29. COUNTY TREASURY OVERSIGHT COMMITTEE - The Board of Supervisors has established a County Treasury Oversight Committee pursuant to Sections 27130-27137 of the California Government Code. The County Treasurer shall annually prepare an investment policy that will be reviewed and monitored by the County Treasury Oversight Committee and shall be reviewed and approved at a public hearing by the Board of Supervisors. 30. RULES GOVERNING THE ACCEPTANCE OF HONORARIA, GIFTS, AND GRATUITIES: A. The County Treasury Oversight Committee: 1. Gifts and Gratuity limits: - Members may not accept a gift or gifts aggregating more than the Fair Political Practices Commission (FPPC) guidelines in a calendar year from an advisor, broker, dealer, banker, or other persons with whom the County Treasurer conducts business. 2. Honorarium limit - Members may not accept any honorarium from advisors, brokers, dealers, bankers, or other persons with whom the County Treasurer conducts business. 3. Employment - A member may not be employed by an entity that has contributed to the campaign of a candidate for the office of the County Treasurer or a candidate for a legislative body of the local agency that has deposited funds in the County Treasury in the previous three years or during the period the employee is a member of the Oversight Committee. A member may not secure employment with bond underwriters, bond counsel, security brokers or dealers, or with financial services firms during the period that the person is a member of the Committee or for one year after leaving the Committee. 4. Contributions - A member may not directly or indirectly raise money for a candidate for County Treasurer or a member of the governing board of any local agency that has deposited funds in the County Treasury while a member of the Committee. B. The County Treasurer and Designated Employees: 1. Gifts and Gratuity limits - The County Treasurer and designated employees may not accept a gift or gifts aggregating more than the Fair Political Practices Commission (FPPC) guidelines in a calendar year from a single source that does business with the County Treasurer's Office. 2. Honorarium limits - The County Treasurer and designated employees may not accept any honorarium. S9 3. Form 700 "Statement of Economic Interests" - The County Treasurer and designated employees are required to file a 700 form annually. 31. REPORTING - The County Treasurer shall prepare an investment report monthly to be posted on the County Treasurer Tax-Collector's website. A. The report will be available to the following officials: 1. Board of Supervisors 2. Oversight Committee 3. Chief Administration Officer 4. Auditor & Controller 5. Pool Participants B. The report will include the following: 1. A summary of Fund Statistics 2. The type of investment, issuer, date of maturity, par, and dollar amount invested on all securities, investments and moneys held by the Fund; and shall additionally include a description of any of the Fund's investments or programs that are under management of contracted parties, including the securities lending program. The report shall also include a current market value and the source of the valuation as of the date of the report for all securities held by the Fund. 3. Securities Lending Portfolio 4. Pool Purchases, Sales and Maturities 5. Pooled Money Fund Cash Flow Forecast 6. Included in the monthly report shall be a statement of compliance with the Investment Policy and a statement of the Fund's ability to meet cash flow requirements for the next six months. 32. ANNUAL AUDIT - The Treasury Oversight Committee shall cause an audit to be conducted annually on a fiscal year basis to determine if the County Treasury is in compliance with Section 27130-27137 of the California Government Code. 33. COSTS AND EARNINGS APPORTIONMENT A. Prior to quarterly interest distribution, investment costs incurred by the County Treasurer will be deducted from the interest earnings of the pool and Dedicated Portfolios based on an equitable distribution formula. The costs, which are authorized by Government Code Section 27013, are made up of too direct costs (salaries, banking services, computer services, and supplies), and indirect costs (department overhead and external overhead). B. The Pool earnings distributed to each participant are proportionate to the average daily balance of the amounts on deposit by the participant. The County Auditor and Controller conducts the apportionment process based on the net earnings of the Fund each quarter. C. In the event there is a negative balance in a participant's fund at any time, it shall reduce the average daily balance for the fund. If at quarter -end there is a negative average daily balance in a participant's fund, that fund will he charged the higher of the apportionment rate for the quarter or the overnight Repo rate in which the Fund invests. D. The apportionment rate is set approximately seven business days alter each calendar quarter end. Apportionments are not paid out by warrants; all earnings are credited to the participants' fund balance. 34. TERMS AND CONDITIONS FOR DEPOSITING FUNDS BY VOLUNTARY PARTICIPANTS — The State of California Government Code Section 53684 allows local agencies, upon adoption of a resolution by the governing body of the agency, the option of depositing excess funds in the County Treasury for the purpose of investment by the County Treasurer. A. The County, in its regional role to assist and aid other local agencies, adopted Board Resolution 11 on March 24, 1987, to allow agencies to deposit excess funds with the County Treasurer for investment. The limitation on acceptance of voluntary deposits and this Investment Policy is structured to help to ensure that, pursuant to Section 27133 of the California Government Code, the County Treasurer shall be able to find that all proposed deposits/withdrawals will not adversely affect the interests of the other depositors in the Fund. B. The policy for the acceptance of local agency deposits is: 1. The local agency must sign the Investment Management Agreement. The County Treasurer will allow a maximum of 25% of the total Fund in voluntary deposits. 2. The maximum amount of transactions per month shall be 10 per local agency. 3. The local agency must provide cash flows on a quarterly bases indicating projected withdrawals from the Fund. C. Before any deposits for new accounts from non -participating Voluntary Participants can be accepted by the County Treasurer, the local agency must perform the following: 1. Provide a resolution adopted by the Board or governing body that authorizes the local agency to deposit excess funds in the County Treasury for the purpose of investment by the County Treasurer. The resolution must: a) be signed by an authorized official b) indicate the resolution number and date passed by the Board or governing body, c) indicate the persons authorized to initiate deposits to and instruct withdrawals from the Fund, d) bear the seal of the local agency, if the local agency has a seal. 2. Provide wire/ACH transfer instructions for cash withdrawals from the Fund. All withdrawals and external deposits will be by the Fed Wire or Automated Clearing House (ACH). 3. Establish a trust account through the County Auditor and Controller's General Accounting Division. 35. CRITERIA FOR WITHDRAWAL OF MONIES FROM THE FUND BY VOLUNTARY PARTICIPANTS A. Before a local agency withdraws monies from the Fund it must submit a withdrawal request form a minimum of 2 working days prior to the desired withdrawal date. Although not encouraged, shorter notice may be honored at the discretion of the County Treasurer's Office if the withdrawal does not cause the maturity status of the Fund to exceed its limits, or jeopardize its ability to meet cash flow requirements. B. When monies are requested for withdrawal, the County Treasurer's Office must find that the withdrawal will not adversely affect the interests of all other depositors in the Fund. 36. GRANDFATHERED AGENCIES A. The grandfathered agencies, including the Community Colleges, who use the services of the County to keep their records and/or issue warrants/wires for the agency can continue to function 100% in this manner and will be treated as a mandatory participant (this assumes that the agency shall continue to make their deposits into the Fund). B. They can also opt to be treated as a voluntary participant and elect to withdraw funds in the same fashion as the other voluntary participants. However, any agency so opting shall be subject to all of the restrictions placed upon the other Voluntary Participants. GLOSSARY OF TERMS BANKERS ACCEPTANCE - Money market instrument created from transactions involving foreign trade. In its simplest and most traditional form, a banker's acceptance is merely a check, drawn on bank by an importer or exporter of goods. BID - The price offered by a buyer of securities. COLLATERALIZED CERTIFICATE OF DEPOSIT - An instrument representing a receipt from a bank for a deposit at a specified rate of interest for a specified period of time that is collateralized by the bank with securities at a minimum of 110% of the deposit amount. COMMERCIAL PAPER - Money Market instrument representing a short-term promissory note of a large corporation at a specified rate of return for a specified period of time. COUPON — The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. COVERED CALL OPTION - The sale of an option to another party giving them the right to buy an existing security in the Fund at a specified price within a specified time period. CREDIT RATING — The alphanumeric scale which provides an assessment of the credit opinion of one of the Nationally Recognized Statistical Rating Organizations for a particular investment or issuing entity. By way of example, the investment grade portion of S&P's credit rating is provided below from highest to lowest: AAA Highest AA A BBB Lowest DEDICATED PORTFOLIO — Any assets, besides those held in the Fund, invested by the County Treasurer on behalf of any San Diego County agency. DOLLAR WEIGHTED AVERAGE MATURITY - The sum of the amount of each security investment multiplied by the number of days to maturity, divided by the total amount of security investments. DURATION - Is a measure of the price volatility of a portfolio and reflects an estimate of the projected increase or decrease in the value of a portfolio based upon a decrease or increase in the interest rates. A duration of 1.0 means that for every one percent increase in interest rates, the market value of a portfolio would decrease by 1.0 percent. EARNINGS APPORTIONMENT - Is the quarterly interest distribution to the Pool Participants where the actual investment costs incurred by the County Treasurer are deducted from the interest earnings of the Fund. EFFECTIVE DURATION OR OPTION -ADJUSTED DURATION - Is the approximate percentage price change of a bond for a 100 basis point parallel shift in the yield curve allowing for the cash flow to change as a result of the change in yield. GOVERNMENT OBLIGATIONS - Securities issued by the U.S. Treasury and Federal Agencies. U.S. Treasuries are direct obligations of the Federal Government. Agencies are not direct obligations of the Federal Government, but involve Federal sponsorship or guarantees. Agency issuers include: Federal National Mortgage Association (FNMA) Federal Home Loan Bank (FHLB) Federal Farm Credit Bank (FFCB) Federal Agriculture Mortgage Corporation (FAMCA) Federal Home Loan Mortgage Corporation (FHLMC) Government National Mortgage Corporation (GNMA) Student Loan Marketing Association (SLMA) World Bank GRANDFATHERED AGENCIES - Such as community colleges and some fire districts that use the County's banking and accounting services. ILLIQUID — Non-existent, or thinly traded secondary market resulting in the inability to access funds prior to maturity, or possibly liquidate at the cost of principal. INVERSE FLOATERS — An inverse floater is a note structured so that its coupon varies inversely with a designated index. INVESTMENT GROUP - Shall be made up of the County Treasurer, Chief Deputy Treasurer, Chief Investment Officer, and Investment Officers. INVESTMENT MANAGEMENT AGREEMENT — An agreement between a voluntary participant and the San Diego County Treasurer -Tax Collector. The agreement addresses the terms and conditions of local agencies deposit of funds for investment into the Fund. LIQUID - Low expected yield give up due to liquidation, based on historical bid/offer spreads. LOCAL AGENCY OBLIGATION - An indebtedness issued by a local agency, department, board, or authority within the State of California. ,uJNG-TERM - The term used to describe a security when the maturity is greater than cne year. MEDIUM TERM NOTES - They are corporate notes and deposit notes that are debt obligations of banks, corporations, and insurance companies. They are issued at a specific rate of return for a specific period of time. MONEY MARKET MUTUAL FUND - A mutual fund with investments directed in short-term money market instruments only, which can be withdrawn daily without penalty. MODERATELY LIQUID — Modest expected yield give up due to liquidation, based on historical bid/offer spreads. NEGOTIABLE CERTIFICATE OF DEPOSIT - A money market instrument representing a receipt from a bank for a deposit at a specified rate of interest for a specified period of time that is traded in secondary markets. OFFERED — The price at which a holder of a security would be willing to sell the security. PASS -THROUGH SECURITIES - A debt instrument that reflects an interest in a mortgage pool, consumer receivables pool and equipment lease -backed pool that serves as collateral for a bond. PORTFOLIO VALUE - The total book value amount of all the securities held in the Fund. PRUDENT RISK - An investment system in which the investor will invest conservatively to receive a stable income with little risk. PUT OPTION - The sale of an option to another party giving them the right to sell to the Fund a security at a specified price within a specified time period. RANGE NOTES — Range notes (also called accrual notes) are bonds which accrue interest daily at a set coupon which is tied to an index. Range notes typically have two coupon levels; the higher of which is for the period that the index remains within a designated range. REPURCHASE AGREEMENT - A repurchase agreement consists of two simultaneous transactions. One is the purchase of securities by an investor (i.e. the Fund), the other is the commitment by the seller (i.e. a broker/dealer) to repurchase the securities at the same price, plus interest, at some mutually agreed future date. REVERSE REPURCHASE AGREEMENT - The mirror image of Repurchase Agreements. In this instance the Fund is the seller of securities to an investor (i.e. brokers). SAFEKEEPING - A custodian bank's action to store and protect an investor's securities by segregating and identifying the securities. SECURITIES LENDING - A transaction wherein the Fund transfers its securities to broker/dealers and other entitles for collateral, which may be cash or securities and simultaneously agrees to return the collateral for the same securities in the future. SHADOW RATING — A credit opinion provided by a Nationally Recognized Statistical Rating Organization for a security or entity that it had previously not rated. SHORT-TERM - The term used to describe a security when the maturity is one year or less. VOLUNTARY PARTICIPANTS - Local agencies that are not required to deposit their funds with the County Treasurer. WHEN -ISSUED SECURITIES - A security traded before it receives final trading authorization with the investor receiving the certificate/security only after the final approval is granted. STANDARD FUND PROFILE POOR'S San Diego County Treasurer's Pooled Money Fund Crgdtt~Qua�h Retmgs.tibftriitii Ipr¢trtd ptoteettgn =fosses fre defagi F'; pr0t •IAA, 13 Fa ) About the Fund Fund Rating Fund Type Investment Adviser Portfolio Manager Fund Rated Since Custodian Management The pool's investment team has considerable investment experience. The primary portfolio manager, Chief Investment Officer Rob Castetter and his team of investment professionals are responsible for the pool's day-to-day management. Rob has more than 24 years investment experience with San Diego County and focuses on managing and controlling risk in the portfolio. The Chief Deputy Treasurer, Lisa Marie Harris, is responsible for establishing and maintaining an internal control structure designed to ensure that assets of the County are protected from loss, theft or misuse. The pool's investment team reports to the County of San Diego Treasurer/Tax Collector, Dan McAllister. A ten -member oversight committee, comprised of county officials, school district officials, a special district official and up to 5 public members which reviews and approves the investment policy. Credit Quality The investment portfolio is heavily invested in the highest quality securities. Managers limit the potential losses due to credit risk and market risk by investing in highly rated paper rated at least A or better by Standard & Poor's. The AAAf rating indicates the extremely strong protection the pool's portfolio investments provide against losses from credit defaults. The S1 volatility rating signifies that the pool possesses low sensitivity to changing market conditions given its low risk profile and conservative investment policies. S&P regularly AAAf / S1 Variable NAV Government Investment Pool Chandler Asset Management March 31, 2011 Portfolio Composition as of March 31, 2011 MMF TO TBILL DCD 0.7%\9% \0 5% REPO 3.3% TNOTE 8.4% Dan McAllister San Diego County Treasurer - Tax Collector May 2001 Bank of New York Mellon Corp. DCP 267% BOND MUTFUND 0.4./ 0» AGGY 56.5% AGO" - Agency Fbed Rate. DCP - Commerual Papa, TNOTE - US Treasury Note. REPO - Repurct,ase Agreement, DCD - Cert.ricate of Deposit TD- Time Deposit. MMF - Money Market Fund: TBILL - US Treasury Bilt MUTFUND - Mutual Funds (non-MMF) BOND - Corporate Fixed Rate 'As assessed by Standard E. Paces monitors the pool's portfolio holdings to maintain the accuracy of its credit quality and volatility profile. Portfolio Assets The pool's primary objectives are to safeguard investment principal, to maintain adequate liquidity to meet daily and longer -term projected cash flows and to achieve an investment return on the funds within the parameters of prudent risk management. The pool continues to invest in top -tier commercial paper, U.S. Agencies, medium term notes, 'AAAm' rated money market mutual funds, repurchase agreements and other high credit quality short-term money market securities. The pool, which averaged $5.5 billion in assets during the past year, invests a minimum of 25% in securities maturing overnight to 91 with a total of 50% maturing (one year or less) and the remainder of the portfolio in securities maturing in five years or less. kttl4?d'$ P.0.0's Ati4lystt Jciei Fried t44(14 12=4 $ 3 www.standardandpoort,col'ri Investors should consider the investment objectives, risks and charges and expenses of the fund before investing. The prospectus which can be obtained from your broker -dealer, contains this and other information about the fund and should be read carefully before investing. San Diego County Treasurer's Pooled Money Fund Votatif fy Rattngs: Defir ItL ns .. , 'GO 'CO Data -Bank as:of'Mafch 31, 2Q1t_ ? Ticker yrnboI .• Portfolio Credit Quality as of March 31, 2011 * Total Returns as of March 31, 2011, (%)' Annualized Fund Index * Citi US Gov Bd 1-3y The returns shown above do not reflect the deduction ofsa/es loads or charges. Inclusion of Me sales load would reduce Me performance shown. Net Assets (milhons).. ; 0. 100 80 60 40 20 $12000 111000 $10,e0 b9000 AAAf/S1 6,167,63 anuary. 1653 Portfolio Maturity Distribution as of March 31, 2011 Years Portfolio Historical Performance Comparison (Growth of $ 10,000) — Fund — 03 US Gov Bd 1-3y 8 R o R r 4 The performance data quoted represents past performance. Past perfonnance does not guarantee future results. The investment return and prindpal * value of an investment will fluctuate so that an inventor's shams, which when redeemed, maybe worth more or less than their original cost Current performance data may be lower or higher than Me performance data quoted. Performance data current to the most recent month -end may be available by calling the fund at the phone number listed in the 'About the Fund' section on page 1 arer, Top Ten Holdings as of March 31, 2011 Security % Security % FNMA 17.52 FHLB 6.72 FFCB DN 8.81 FFCB 4.51 US TREASURY NOTE 8.24 CP UNION BANK NA 3.92 FHLMC 7.09 CP BANK OF NOVA SCO 3.75 FHLMC DN 6.87 CP TORONTO DOM HLDG 3.67 The volatility rating for this fund issued by Standard & Poo's can be found in the 'About the Fund' section on page 1. There is no standard method for determining volatility ratings. The rating is current as of the date of this profile report. The fund's portfolio may have changed since this date and there is no guarantee that the fund will continue to have the same rating or perform in the future as rated. Not all bond mutual funds have volatility ratings and those that do may have paid for them. The fact that a fund has a rating is not an indication that it is more o less risky or volatile than a fund that does not. The fund or a third party participating the marketing of fund shares paid Standard & Poor's for this rating. Standard & Poa's receives no payment for disseminating ratings, except for subscriptions to its publications Analytic services provided by Standard & Poor's Ratings Services ("Ratings Services") are the result of separate activities designed to preserve the independence and objectivity of ratings opinions. The credit ratings and observations contained herein are solely statements of opinion and not statements of fact or recommendations to purchase, hold, or sell any securities or make any other investment decisions. Accordingly, any user of the information contained herein should not rely on any credit rating or other opinion contained herein in making any investment derision. Ratings are based on information received by Ratings Services. Other divisions of Standard & Poor's may have information that is not available to Ratings Services. Standard & Poor's is neither associated nor affiliated with the fund. The information in this report has been obtained by Standard & Poor's from sources believed by it to be reliable at the time the report is published. The information in this report, however, may be inaccurate or incomplete due to the possibility of human, mechanical, or other error by Standard & Pool's, its sources or others, or the information in this report may become inaccurate or incomplete due to the passage of time. Standard & Poor's has no obligation to keep or to make the information in this report current, and it does not guarantee the accuracy, adequacy, or completeness of any information In this report. STANDARD & POOR'S MAKES NO EXPRE' OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OR USE. In no evert si Standard & Poor's, its affiliates or its third party licensors be liable for any direct, indirect, special or consequential damages in connection with the use of any data or information contained herein. Copyright © 2011 Standard & Poor's Financial Services LLC, a subsidiary of The McGraw-Hill Companies, Inc. All rights reserved. Permissions:To reprint, translate, or quote Standard & Poor's publicotions, contact: Client Services, 55 Water Street, New York, NY 10041; (1) 212-438-9823; or by email to: research_request@standardandpoas.com the McGraw- frill Companies FRIDAY, SEPTEMBER 09, 2011 8:00 AM NOON rer's Office is pleased to hos Cash Handling Work e Public Treasury Ins nd treasury officials, rcash handling technigl hg training instructio ampletion and a copy of°: ABOUT THE TRAINER Anthony Francisco, CPFA, has taught cash handling training courses to treasurers and cash handling staff for more than 10 years. He is the main author of the APT Cash Handling Manual and certification course and currently chairs the APT Cash Handling Committee. Anthony has served as Finance Director for the City of Norman, OK since 1996 where he oversees the City's budget, accounting, treasury, management information systems, debt administration, Investment, printing services, utility customer service, payroll and purchasing functions. Colin e nt fo e8o ly-Inct'ode POETA info' or register on Learn in M �nagehlen System' LMS For further information, contact Alejandra Lopez at 619.531.5222 Agency: Street: City: State: Zip: Phone: Fax: E-mail: �} 0 TREASURER -TAX COLLECTOR COUNTY OF SAN DIEGO COUNTY ADMINISTRATION CENTER • 1600 PACIFIC HIGHWAY, ROOM 112 SAN DIEGO, CALIFORNIA 92101-2477 • (619) 531-5225 • FAX (619) 595-4605 web site: http://www.sdtreastax.com DAN McALLISTER Treasurer -Tax Collector TREASURY OVERSIGHT COMMITTEE MEETING AGENDA Wednesday, October 19, 2011 - 1:30 p.m. County Administration Center 1600 Pacific Highway, Room 162 San Diego, CA 92101 Photographs of Treasury Oversight Committee members will be taken at 1:30 PM 1. Call Meeting to Order - Chair, Vernon Evans 2. Group Pictures of Treasury Oversight Members - Photographer 3. Request by Public to Address the Treasury Oversight Committee on Any Matter Within the Committee's Jurisdiction 4. Approval of April 14, 2011 Meeting Minutes 5. Economic Update 6. Portfolio Statistics & Strategy Update 7. Treasurer's Projects • Cash Handling Workshop — September 9, 2011 • Debt Seminar — November 2, 2011 • Investment Seminar / Cash Handling Workshop — February 2012 • Recruitment for Credit Analyst - Chair, Vernon Evans - Chair, Vernon Evans - Joel Friedman, Director Standard & Poor's - Rob Castetter / Kay Chandler - Treasurer, Dan McAllister 8. Adjournment — - Chair SAN DIEGO COUNTY BOARDS, COMMISSIONS, AND COMMITTEES MEMBER ROSTER REPORT TREASURY OVERSIGHT COMMITTEE Contact Person: Lisa Marie Harris Phone:619-531-5686 County Dept: Treasurer/Tax Collector Fax: 619-557-4093 Mail Stop: A49 Member Name: McAllister, Dan Term: CONCURRENT Nominated By: TREASURER Appointed By: BOARD OF SUPERVISORS Requirement: COUNTY TREASURER -TAX COLLECTOR Comments: Member Name: Term: Nominated By: Appointed By: Requirement: Comments: Member Name: Term: Nominated By: Appointed By: Requirement: Comments: Member Name: Term: Nominated By: Appointed By: Requirement: Comments: Member Name: Term: Nominated By: Appointed By: Requirement: Comments: Member Name: Term: Nominated By: Appointed By: Requirement: Comments: Member Name: Term: Nominated By: Appointed By: Requirement: Comments: BCC Position: Seat: Seat 1 Sandoval, Tracy BCC Position: INDEFINITE Seat: Seat 2 TREASURER BOARD OF SUPERVISORS AUDITOR/CONTROLLER Voting Member Robbins -Meyer, Helen BCC Position: INDEFINITE Seat: Seat 3 TREASURER BOARD OF SUPERVISORS BOARD OF SUPERVISORS REPRESENTATIVE Voting Member Duzyk, Lora INDEFINITE TREASURER BOARD OF SUPERVISORS COUNTY SUPERINTENDENT OF SCHOOLS REP Voting Member, Don Shelton (Ed.D) retired. BCC Position: Seat: Seat 4 Little II, Ronald D. BCC Position: INDEFINITE Seat: Seat 5 TREASURER BOARD OF SUPERVISORS COMMUNITY COLLEGES/SCHOOL REP 1st Appt. Wasmund, Renee BCC Position: INDEFINITE TREASURER BOARD OF SUPERVISORS Special District Representative (SANDAG) NON -VOTING MEMBER (EX-OFFICIO). Seat: Seat 6 Dillingham III, Benjamin Franklin BCC Position: 3-YEARS Seat: Seat 7 TREASURER BOARD OF SUPERVISORS Public Member 1st Full Term. Expiration: 1/3/2011 Appointed: 1/8/2007 MO: Expiration: INDEFINITE Appointed: 12/14/2004 MO: 2., Expiration: INDEFINITE Appointed: 8/4/1998 MO: 23 Expiration: INDEFINITE Appointed: 4/19/2005 MO: 9 Expiration: INDEFINITE Appointed: 11/9/2010 MO: 25 Expiration: 12/31/2012 Appointed: 12/8/2009 MO: 15 Expiration: 12/31/2013 Appointed: 11/9/2010 MO: 25 Monday, March 21, 2011 Page 1 of 2 2 Member Name: Term: Nominated By: Appointed By: Requirement: Comments: Member Name: Term: Nominated By: Appointed By: Requirement: Comments: Member Name: Term: Nominated By: Appointed By: Requirement: Comments: Member Name: Term: Nominated By: Appointed By: Requirement: Comments: SAN DIEGO COUNTY BOARDS, COMMISSIONS, AND COMMITTEES MEMBER ROSTER REPORT LaHay, Thomas BCC Position: Public Member 3-YEARS Seat: Seat 8 TREASURER BOARD OF SUPERVISORS Public Member 1st appt. 03/15/11 (16) Annette Hubbel resigned 2/2011 Evans, Vernon BCC Position: Chair 3-YEARS Seat: Seat 9 TREASURER BOARD OF SUPERVISORS Public Member Voting Member. Re-appt (2nd term) 12/11/07 Zapata, Chris BCC Positi^n • 3-YEARS Seat: Seat 10 TREASURER BOARD OF SUPERVISORS Public Member Voting Member. Re-appt. 12/9/08 Cooks, Wilmer Jr. BCC Position: 3-YEARS Seat: Seat 11 TREASURER BOARD OF SUPERVISORS Public Member Voting Member. Re-appt 12/11/07(2nd term) Expiration: 12/31/2012 Appointed: 3/15/2011 MO: 16 Expiration: 12/31/2011 Appointed: 12/11/2007 MO: 13 Expiration: 12/31/2012 Appointed: 12/9/2008 MO: 29 Expiration: 12/31/2011 Appointed: 12/11/2007 MO: 13 Monday, March 21, 2011 Page 2 of 2 SAN DIEGO COUNTY TREASURER -TAX COLLECTOR DAN MCALLISTER PRESENTS: LATEST TRENDS Marina Village Conference Center 1936 Quivira Way, Bayview Room San Diego, California 92109 Wednesday, November 2, 2011 8:15am•3:00pm 7:45 am Registration 8:15 am Welcome Dan McAllister Treasurer -Tax Collector, County of San Diego" 8:30 am Legislative Update: State Budgetary and Legislative Initiatives Affecting Local Government Blake Fowler Director of Public Finance, State Treasurer's Office. Catherine: Hill Regional Public Affairs Manager, League of California Cities (Invited) 9:15 am ` Continuing Disclosure: Impact of Dodd2Frank'on issuers; MSRB, GASS, other coming mandates LewisG. Feldman Partner, Goodwin Procter LLP Kevin Civale Partner„ Stradling;-Yocca, Carlson & Rauth Steven E. Heaney Partner, Managing Director, Stone & Youngberg LLC & Member, Municipal Securities Rulemaking Board 10.00 am Break 10:15 am New Trends & Variable Rate Debt: Prudent mix in today's market, trends in LOC and standby purchase agreement, private placements Anand Kesavan Senior Vice President Siebert Brandford Shank & Co., LLC Timothy J. McKeon SVP & Managing Director Government Banking, US Bank N.A. Brian D. Quint Partner, Quint Thimmig LLP 11:00 am Issuance and Sizing of TRANS: Bond proceeds investment Catherine Rando Director, Citi WilliamM. Doyle Partner, Orrick, Herrington & Sutclli ff LLP 12,00 pm Lunch Panel of Press TBD 1:15 pm School Districts: Trends in Bond Issuance or Other Recent. Developments Moderator. Lora Duzyk. Asst, Superintendent of Business Services, San Diego County Office of Education Speakers:. Connie LeLouis Supervising. Deputy Attorney General, CA Attorney General Office Mark J. Saladino TreasurerTax Collector, County of Los Angeles 2:00 pm Managing Rating Agency Relationships In a Challenging Environment Why ratings am more important than ever, rating trends since Sep. 2008, impact on marketing and pricing of bonds Angela Kukoda Senior Vice President, FirstSouthwest Steven Zimmerman Managing Director Standard & Poor's 3:00 pm Program Conclusions CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEET?`;'' DATE: November 1, 2011 AGENDA ITEM NO. 17 M TITLE: National City's 125-Year Anniversary Celebration PREPARED BY: Leslie Deese, Asst. City Manager -- DEPARTMENT: City Manager PHONE: 619-336-4240 �_�- L�� APPROVED BY: EXPLANATION: See Attached Staff Report FINANCIAL STATEMENT: ACCOUNT NO. ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Considering current events and scarce funding, provide Staff direction on stakeholders, resources, and coordination of potential event(s). BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: ff Report SUBJECT: National City's 125-Year Anniversary Celebration Staff Report: Incorporated on September 17, 1887, National City is the second oldest city in San Diego County. In 2012, National City will celebrate its 125-year anniversary. Special events are a major part of that special lifestyle that defines National City's history and makes our city unique. National City currently sponsors and co-sponsors over 20 events. However, due to the current economic situation, and budgetary constraints, not all of the events occur annually. With the anniversary date right around the corner, the City Council asked staff to provide a report to facilitate in the planning of event(s) commemorating National City's past, present and future. Items for Council consideration include: • Number and type of events • City resources to be devoted o Staffing o Funding o Facilities / Equipment • Committee Members • Community Partners o Neighborhood Councils o Chamber of Commerce o Service Clubs o Community Clubs, i.e., Old Town National City Historical Society Stein Farm National City Depot o Schools & Colleges o Faith Based Organizations • Sponsors • Advertising CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: November 1, 2011 AGENDA ITEM NO. 18 EM TITLE: City Council Policy Manual Review Request. PREPARED BY: Chris Zapata, City Manager PHONE: 336-4240 EXPLANATION: See attached Staff Report DEPARTMENT: City Manager APPROVED BY: FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Provide direction to staff regarding review of the Policy Manual, the scope of review, and the approximate time frame desired to complete the review. BOARD / COMMISSION RECOMMENDATION: N/A 'ACHMENTS: .,,aff Report BACKGROUND At the City Council meeting of October 18, 2011 a discussion regarding review and update of the City Council Policy Manual was initiated. The City Council Policy Manual is comprised of 52 policy sections covering ten areas: Administration Financial Services Legal and Legislative Services Municipal Planning and Development Public Works Personnel Services Traffic and Public Safety Public Service Facilities Real Estate and Public Property Risk Management DISCUSSION The Policy Manual is a comprehensive document that has 52 policies that vary in complexity and length. Some policies are one page and as simple as calling a special meeting. Others, such as the City Council policy on investments, are quite lengthy and fairly complicated. Over the past 5 years, the City Council has addressed various policies on an as needed basis. With this as a backdrop, this item has been placed on the November 1, 2011 agenda to receive City Council direction. A key question to be answered by the City Council is the intent to review the entire Policy Manual or a desire to address certain segments of the Policy Manual. Understanding the direction of the City Council in this matter will allow for the proper allocation or re -allocation of staff resources to complete the review. CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MFET!NC DATE: November 1, 2011 AGENDA ITEM NO. 19 M TITLE: Presentation to the City Council on Crime/Cold Case Update PREPARED BY: Sergeant Dennis Leach PHONE: 4438 EXPLANATION: Please see Attached for Cases and Descriptions DEPARTMENT: Police APPROVED BY: FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: e and Case Descriptions Cases for Council Members Mary Lou Olson January 1960 On January 4, 1960, ten year old Mary Lou Olson's body was found in Mexico, a week after she v-,s reported missing to NCPD by her father. An extensive investigation was conducted and although several people stood out as possible suspects, no physical evidence led to the prosecution of a suspect. In December, 1997, the case was reexamined and the body was exhumed but no evidence was gathered that pointed to a suspect. To this datc, the case remains open. Case #92M4009 Jovita Collazo Jovita Collazo was reported missing to NCPD in 1992 and the case remained unsolved until 2010 when her boyfriend, Michael Richardsons, at the time of her disappearance was arrested by the Sheriffs Office for murdering his current wife and mother-in-law. Detective Bavencoff put two and two together and re -opened Jovita's case. The case was presented to the District Attorney's Office and they are in the process of researching the proper way to incorporate the National City PD case with the San Diego Sheriff's case to obtain a conviction. Case #87113525 Crispino Buzon Navy Corpsman Crispino Buzon was reported missing to NCPD in 1987. The initial investigation identified Robert Nydegger as a potential suspect in Buzon's disappearance. Despite a thorough investigation by NCPD investigators in 1987 Buzon was never located and the case grew cold. The case was reactivated by NCIS, the San Diego District Attorney's Office, and NCPD in April2005. Crispino Buzon's skeletal remains were located in the San Bernardino desert in May 2008. In October 2009, Detective Bavencoff arrested Robert Nydegger for the murder of Crispino Buzon. Nydegger subsequently pled guilty to the murder in March 2010 and was sentenced to 15 years to life. Case closed by NCPD arrest. Case #86H5953 Jose de Jesus Moreno Romo On July 7`h, 1986, the body of Jose de Jesus Moreno Romo was discovered in alley in National City. The victim's co-workers were the prime suspects who fled to Mexico before detectives could make an arrest. An arrest warrant was entered in the system and in 2010, suspect; Efren Gutierrez attempted to cross the border into the U.S. and was arrested. The case is currently with the D.A.'s office and the Pre -Luminary hearing is scheduled for December 2011. Case #980943 "Ester" On 06/07/1998, a 40 year old resident of a local care facility was discovered to be 6 months pregnant. The victim was non -ambulatory, non -vocal with the mental equivalency of a two year old. The suspect was identified through DNA testing as an employee of the Care Facility. The suspect fled the country and was hiding in the Philippines until located a little over a year ago. The extradition process is currently underway. ETING DATE: CITY OF NATIONAL CITY, CALIFORNIA COMMUNITY DEVELOPMENT COMMISSION COUNCIL AGENDA STATEMENT November 1st, 2011 AGENDA ITEM NO.20 ITEM TITLE: Authorize the reimbursement of Community Development Commission expenditures in the amount of $49,416.64 to the City of National City for the period of 9/28/11 through 10/04/11, PREPARED BY: K. Apalategui DEPARTMENT: Fina PHONE: ,619-336-4331; APPROVED BY: EXPLANATION: Effective July 1, 2008 the Community Development Commission's fiscal operations have been merged with the City of National City. In order to streamline the payment process, the City of National City pays for all expenditures for the CDC. Attached is a detailed listing of all CDC warrants paid for with the City General Funds. Staff requests approval of the reimbursement of CDC activity. FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: APPROVED: Approve the reimbursement of funds to the City of National City in the amount of $49,416.64 ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Accept and File. BOARD / COMMISSION RECOMMENDATION: N/A rACHMENTS: warrants for the period of 9/28/11 through 10/04/11 N Jyr I7.PCO ATED COMMUNITY DEVELOPMENT COMMISSION WARRANT REGISTER #14 10/4/2011 PAYEE CALIFORNIA REDEVELOPMENT DESROCHERS DIXIELINE BUILDERS ENVIRONMENTAL H S LABORATORIES NAN MCKAY AND ASSOC INC NBS OCANA PRO BUILD PRUDENTIAL OVERALL SUPPLY SDG&E SWEETWATER AUTHORITY VISTA PAINT THE LINCOLN NATIONAL LIFE INS DESCRIPTION AGENCY RENEWAL 12/01/11-11/30/12 RETIREE HEALTH BENEFITS OCT 2011 REIMB: CASA QNTA/FAMILIAR EXPENSES LEAD PAINT TESTING SR FIN CONSULT SVCS / SEC 8 LANDSCAPE MAINT OCT - DEC 2011 REIMB: CSMFO TRAINING / SEC8 MOP# 45707. SUPPLIES / NSD MOP# 45742. LAUNDRY SERVICES! NSD GAS AND ELECTRIC UTILITIES / CDC WATER UTILITIES / CDC MOP# 68834. PAINT / NSD LIFE & AD&D, STD, LTD OCT 2011 OTHER DISBURSEMENTS PAID WITH CDC FUNDS SECTION 8 HAPS PAYMENTS Start Date 9/28/2011 CHK NO DATE AMOUNT 243787 10/4/11 7.010.00 243788 10/4/11 110.00 243789 10/4/11 39, 485.00 243790 10/4/11 6.00 243791 10/4/11 948.50 243792 10/4/11 819.31 243793 10/4/11 622.66 243794 10/4/11 125.40 243795 10/4/11 27.74 243796 10/4/11 15.51 243797 10/4/11 60.56 243798 10/4/11 192.14 243884 10/4/11 -6.18 A/P Total $ 49,416.64 Total disbursements paid with City's Funds $ 49,416.64 End Date 10/4/2011 700,297.85 GRAND TOTAL $ 749,714.49 TING DATE: CITY OF NATIONAL CITY, CALIFORNIA COMMUNITY DEVELOPMENT COMMISSION COUNCIL AGENDA STATEMENT November 1st, 2011 AGENDA ITEM NO•21 ITEM TITLE: ;Authorize the reimbursement of Community Development Commission expenditures in the amount of $4,880.03 to the City of National City for the period of 10/05/11 through 10/11/11 PREPARED BY: [K. Apalategui PHONE: 619-336-4331 EXPLANATION: Effective July 1, 2008 the Community Development Commission's fiscal operations have been merged with the City of National City. In order to streamline the payment process, the City of National City pays for all expenditures for the CDC. DEPARTMENT: Fina ce APPROVED BY: Attached is a detailed listing of all CDC warrants paid for with the City General Funds. Staff requests approval of the reimbursement of CDC activity. FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: APPROVED: Approve the reimbursement of funds to the City of National City in the amount of $4,880.03 ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Accept and File. BOARD / COMMISSION RECOMMENDATION: N/A 'ACHMENTS: Warrants for the period of 10/04/11 through 10/11/111 PAYEE CHRISTENSEN & SPATH LLP EDCO DISPOSAL CORPORATION OLIVERIA POWER PLUS SAN DIEGO CLIPPING SERVICE SAN DIEGO HOUSING FEDERATION SDG&E STAPLES ADVANTAGE VISTA PAINT COMMUNITY DEVELOPMENT COMMISSION WARRANT REGISTER #15 10/11/2011 DESCRIPTION LEGAL SERVICES / T&T COMMUNITIES WASTE DISPOSAL SERVICES / CDC REIMB: HAFOG CONFERENCE / SEC8 EQUIPMENT RENTAL (POWER POLES) NEWS READING & CLIPPING SVCS/CDC MEMBERSHIP RENEWAL GAS AND ELECTRIC UTILITIES / CDC MOP# 45704. OFFICE SUPPLIES / CDC MOP# 68834. PAINTING SUPPLIES/NSD CHK NO DATE AMOUNT 243892 10/11/11 2,362.50 243893 10/11/11 104.75 243894 10/11/11 1,066.28 243895 10/11/11 195.00 243896 10/11/11 78.75 243897 10/11/11 550.00 243898 10/11/11 8.57 243899 10/11/11 126.78 243900 10/11/11 387.40 AIP Total $ 4,880.03 Total disbursements paid with City's Funds $ 4,880.03 GRAND TOTAL $ 4,880.03 ITEM #22 11-1-11 REPORT - UPDATE ON AB-X-27 - REDEVELOPMENT APPEAL (CITY MANAGER) Item No. 23 November 1, 2011 Staff Report $500,000 Federal Safe Routes to School Grant Award (Development Services/Engineering) ITEM #24 11/1/11 CLOSED SESSION REPORT (CITY ATTORNEY)