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HomeMy WebLinkAbout2012 01-24 CC CDC ADJ AGENDA PKTAgenda Of An Adjourned Regular Meeting — National City City Council / Community Development Commission of the City of National City/ Housing Authority of the City of National City Council Chambers Civic Center 1243 National City Boulevard National City, California Regular Meeting — Tuesday — January 24, 2012 — 6:00 P.M. Open To The Public Please complete a request to speak form prior to the commencement of the meeting and submit it to the City Clerk. It is the intention of your City Council and Community Development Commission (CDC) to be receptive to your concerns in this community. Your participation in local government will assure a responsible and efficient City of National City. We invite you to bring to the attention of the City Manager/Executive Director any matter that you desire the City Council or Community Development Commission Board to consider. We thank you for your presence and wish you to know that we appreciate your involvement. ROLL CALL Pledge of Allegiance to the Flag by Mayor Ron Morrison Public Oral Communications (Three -Minute Time Limit) NOTE: Pursuant to state law, items requiring Council or Community Development Commission action must be brought back on a subsequent Council or Community Development Commission Agenda unless they are of a demonstrated emergency or urgent nature. Upon request, this agenda can be made available in appropriate alternative formats to persons with a disability in compliance with the Americans with Disabilities Act. Please contact the City Clerk's Office at (619) 336-4228 to request a disability -related modification or accommodation. Notification 24-hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. Spanish audio interpretation is provided during Council and Community Development Commission meetings. Audio headphones are available in the lobby at the beginning of the meetings. Audio interpretacion en espanol se proporciona durante sesiones del Consejo Municipal. Los audiofonos estan disponibles en el pasillo al principio de la junta. Council Requests That All Cell Phones And Pagers Be Turned Off During City Council Meetings COPIES OF THE CITY COUNCIL OR COMMUNITY DEVELOPMENT COMMISSION MEETING AGENDAS AND MINUTES MAY BE OBTAINED THROUGH OUR WEBSITE AT www.nationalcityca.qov CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION/ HOUSING AUTHORITY AGENDA 01/24/12 — Page - 2 PRESENTATION cr tss for Holiday Charities. (Mayor/Council) CITY COUNCIL CONSENT CALENDAR Consent Calendar: Consent calendar items involve matters, which are- of a routine or noncontroversial nature. All consent calendar items are adopted by approval of a single motion by the City Council. Prior to such approval, any item may be removed from the consent portion of the agenda and separately considered, upon request of a Councilmember, a staff member, or a member of the public. Approval of the Minutes of the Adjourned Regular City Council/Community Development Commission/Housing Authority Meeting of January 10, 2012. (City Clerk) 3. 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) 4. Resolution of the City Council of the City of National City authorizing the Mayor to execute a Second Amendment to the Agreement with Bureau Veritas North America, Inc. to increase the not -to -exceed amount of the Agreement by $300,000 for on -call general engineering services, construction inspections and project management services. (Funded by various CIP projects — No General Funds will be used) (Engineering) Resolution of the City Council of the City of National City authorizing the Mayor to execute a Second Amendment to the Agreement with Project Professional Corporation to increase the not -to -exceed amount of the Agreement by $300,000 for on -call general engineering services, construction inspections and project management services. (Funded by various CIP projects — No General Funds will be used) (Engineering) Resolution of the City Council of the City of National City authorizing the Mayor to execute a Second Amendment to the Agreement with Harris & Associates to increase the not -to -exceed amount of the Agreement by $200,000 for on -call general engineering services, construction inspections and project management services. (Funded by various CIP projects — No General Funds will be used) (Engineering) CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION/ HOUSING AUTHORITY AGENDA 01/24/12 — Page - 3 .mot•"SENT CALENDAR (Cont.) Resolution of the City Council of the City of National City authorizing the Mayor to execute a Second Amendment to the Agreement with Kimley-Horn & Associates, Inc. to increase the not -to -exceed amount of the Agreement by $200,000 for on -call general engineering services, construction inspections and project management services. (Funded by various CIP projects — No General Funds will be used) (Engineering) 8. Resolution of the City Council of the City of National City authorizing the acceptance of the Children Exposed to Domestic Violence (CEDV) Specialized Response Program Grant for two additional years in the amount of $350,000. (Police) 9 WARRANT REGISTER #23 Warrant Register #23 for the period of 11/30/11 through 12/06/11 in the amount of $1,587,778.81. (Finance) 10. WARRANT REGISTER #24 Warrant Register #24 for the period of 12/07/11 through 12/13/11 in the amount of $1,908,933.64. (Finance) PUBLIC HEARINGS 11. Public Hearing — Conditional Use Permit for Public Assembly and a Tattoo Studio at Sweetwater Harley Davidson located at 3201 Hoover Avenue. (Applicant Anastasia Polies) (Case File 2011-28 CUP) (Development Services/Planning) **Companion Item #14** CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION/ HOUSING AUTHORITY AGENDA 01/24/12 — Page - 4 PUBt IC HEARINGS (Cont.) 12. A Public Hearing to consider rescinding City Council's Resolution No. 2011-119, which adopted components of the National City Comprehensive Land Use Update, which included (1) An update of the General Plan and Land Use Map, (2) An Amendment of the Downtown Specific Plan and Specific Plan Map, (3) A Climate Action Plan, (4) Five Development Proposals in concept only (Street Conversions/Community Corridors, Senior Village Expansion, Las Palmas Park and Facilities Vision Concept Plan, Kimball Park Master Plan, and El Toyon Park Master Plan), and (5) Water Supply Assessment. Public Hearing to consider repealing City Council Policy Ordinance No. 2011-2362, which adopted the Land Use Code (Municipal Code Title 18 Zoning) Amendment as part of the City Comprehensive Land Use Update. Public Hearing to consider Planning Commission's recommendations contained in Resolution 2-2012 which recommended City Council: Certify the Final Environmental Impact Report, adopt a statement of overriding considerations, adopt a Mitigation Monitoring and Reporting Program, adopt a General Plan Update, including a General Plan Land Use Map Amendment, adopt a Land Use Code (Zoning) Amendment and Official Zoning Map Amendment, adopt a Downtown Specific Plan Map Amendment, adopt a Downtown Specific Plan Amendment and Specific Plan Map Amendment, adopt a Climate Action Plan, and approve in concept only five development proposals, including Street Conversions/Community Corridors, Senior Village Expansion, Las Palmas Park and Facilities Vision Concept Plan, Kimball Park Master Plan, and El Toyon Park Master Plan. These recommendations were based, in part, on findings and a Statement of Overriding Considerations set forth in Planning Commission's resolution. Proposed Change of Zone Boundaries or Classifications. The Land Use Code (Zoning) Amendment is a zoning regulation within the context of and adopted pursuant to the Land Use Code (Title 18 Zoning) of the National City Municipal Code. The Land Use Code and the associated Zoning Map implement the land use designations of the General Plan Land Use Map. Public Hearing to consider adopting a General Plan Update, including a General Plan Land Use Map Amendment, adopting a Land Use Code (Zoning) Amendment, including the Official Zoning Map, adopt a Downtown Specific Plan Amendment and Specific Plan Map Amendment, adopt a Climate Action Plan, approve, in concept only, five development proposals, including Street Conversions/Community Corridors, Senior Village Expansion, Las Palmas Park and Facilities Vision Concept Plan, Kimball Park Master Plan, and El Toyon Park Master Plan, and approve the Water Supply Assessment These recommendations are based, in part, on findings and a statement of overriding considerations set forth in City Council's resolution and ordinance. (Community Services) **Companion Items #13 and #15** CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION/ HOUSING AUTHORITY AGENDA 01/24/12 — Page - 5 ORDINANCE FOR INTRODUCTION An Ordinance of the City Council of the City of National City which (1) Repeals Council Ordinance 2011-2362 which adopted the Land Use (National City Municipal Code Title 18 Zoning), and (2) Adopting an Amendment of the Land Use Code (National City Municipal Code Title 18 Zoning), including the Official Zoning Map as a component of the Comprehensive Land Use Update. Case File No. 2011-17 GPA, ZC, SPA, IS. (Community Services) **Companion Items # 12 and #15** NON CONSENT RESOLUTIONS 14. Resolution of the City Council of the City of National City taking action on a Conditional Use Permit for Public Assembly and a Tattoo Studio at Sweetwater Harley Davidson located at 3201 Hoover Avenue. (Applicant: Anastasia Polies) (Case File 2011-28 CUP) (Development Services/Planning) **Companion Item #11 ** 15. A Resolution of the City Council of the City of National City which (1) Rescinds City Councils' Resolution 2011-119 which adopted/approved components of the National City Comprehensive Land Use Update, including (A) an update of he General Plan and Land Use Map, (B) an amendment of the Downtown Specific Plan and Specific Plan Map, (C) a Climate Action Plan, (D) Five Development Proposals in concept only, including Street Conversions/Community Corridors, Senior Village Expansion, Las Palmas Park and Facilities Vision Concept Plan, Kimball Park Master Plan and El Toyon Park Master Plan, and (E) the Water Supply Assessment, and (2) adopts a General Plan Update including a General Plan Land Use Map Amendment; adopting a Downtown Specific Plan Amendment and Downtown Specific Plan Map Amendment; adopting a Climate Action Plan; approving, in concept only, five development proposals, including Street Conversions/Community Corridors, Senior Village Expansion, Las Palmas Park and Facilities Vision Concept Plan, Kimball Park Master Plan, and El Toyon Park Master Plan; and approving the Water Supply Assessment. Case File No. 2011-17 GPA, ZC, SPA, IS. (Community Services) **Companion Items #12 and #13** NEW BUSINESS 16. Approve the release of a Request for Proposal for assignment of County of Sa Diego Contract Number 533563 assuming all food service operational obligations of the George H. Waters Nutrition Center. (Administrative Services) CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION/ HOUSING AUTHORITY AGENDA 01/24/12 — Page - 6 NEW BUSINESS (Cont.) 17. Request City Council to appoint two National City Council Members to a YMCA Capital Steering Committee in order to identify fundraising prospects and determine local fundraising potential for Las Palmas Park. (Community Services) 18. Temporary Use Permit — Circus event hosted by American Crown Circus at Kimball Park from February 24th through 27th, 2012 from 6:00 pm to 9:30 pm with request of waiver of fees. (Neighborhood Services) 19. Notice of Decision — Planning Commission approval of a Conditional Use Permit for the expansion of Chuck E. Cheese at 1143 Highland Avenue. (Applicant Chuck E. Cheese) (Case File 2011-30 CUP) (Development Services/Planning) 20. City of National City's Single Audit Report on Federal Awards for the Fiscal Year ended June 30, 2011. (Finance) 21. City of National City Comprehensive Annual Financial Report for the Fiscal Year ended June 30, 2011. (Finance) COMMUNITY DEVELOPMENT COMMISSION CONSENT CALENDAR 22. Resolution of the Community Development Commission of the City of National City adopting the January 24, 2012 Amendment to the Enforceable Obligations Payment Schedule last amended November 15, 2011. (Redevelopment/Special Projects) 23. Resolution of the Community Development Commission of the City of National City adopting the Enforceable Obligations Payment Schedule for the timF pr hd of January 1, 2012 through June 30, 2012. (Redevelopment/Special Projects) 24. Resolution of the Community Development Commission of the City of National City adopting the January 24, 2012 Amendment to the Draft Initial Recognized Obligations Payment Schedule. (Redevelopment/Special Projects) CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION/ HOUSING AUTHORITY AGENDA 01/24/12 — Page - 7 ENT CALENDAR (Cont.) 25. Resolution of the Community Development Commission of the City of National City authorizing its Chairman to execute a Subordination Agreement with Barbara J. Mellor allowing a new mortgage not -to -exceed $150,000 to be and remain a lien prior and superior to a First -Time Home Buyer assistance loan of $18,926 issued by the Community Development Commission (CDC) on a townhome unit located at 109 E. 9th Street in National City. (Administrative Services) 26. Resolution of the Community Development Commission of the City of National City ratifying and confirming the City Council's designation of the Housing Authority of the City of National City, under Part 1.85 of Division 24 of the Health and Safety Code, to accept housing assets and perform housing functions previously performed by the Community Development Commission of the City of National City on behalf of the Redevelopment Agency of the City of National City subject to reservations herein stated. (City Attorney) 27. Authorize the reimbursement of Community Development Commission expenditures in the amount of $232,328.50 to the City of National City for the period of 11/30/11 through 12/06/11. (Finance) 28. Authorize the reimbursement of Community Development Commission expenditures in the amount of $257,645.68 to the City of National City for the period of 12/07/11 through 12/13/11. (Finance) NEW BUSINESS 29. Approve the release of a Request for Proposal for Kimball Tower and Morgan Tower property management services. (Administrative Services) 30. Community Development Commission of the City of National City's Financial Statements and Supplemental Information for the Fiscal Year ended June 30. 2011. (Finance) CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION/ HOUSING AUTHORITY AGENDA 01/24/12 —Page - 8 STAFF REPORTS 31. Post Furlough Report. (Human Resources) 32. Closed Session Report. (City Attorney) MAYOR AND CITY COUNCIL ADJOURNMENT Adjourned Regular City Council, Community Development Commission and Housing Authority Meeting — Tuesday, January 31, 2012 — 6:00 p.m. — City Council Chambers — 1243 National City Blvd., National City, California Adjourned Regular City Council Meeting — City Council Community Planning & Fiscal Year 2011-12 Mid -Year Budget Workshop — Saturday, February 4, 2012 — 9:00 a.m. — City Council Chambers — 1243 National City Blvd., National City, California Regular City Council and Community Development Commission Meeting — Tuesday — February 7, 2012 — 6:00 p.m. — Council Chambers — National City, California ITEM #1 1/24/12 CERTIFICATES FOR HOLIDAY CHARITIES (MAYOR/COUNCIL) ITEM #2 1/24/12 APPROVAL OF THE MINUTES OF THE ADJOURNED REGULAR CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION/HOUSING AUTHORITY MEETING OF JANUARY 10, 2012 (CITY CLERK) City of National City Office of the City Clerk 1243 National City Boulevard, National City, CA 91950-4397 Michael R. Dalla, CMC - City Clerk (619) 336-4228 Fax: (619) 336-4229 To: Honorable Mayor and Council From: Michael R. Della, City Clerk Subject: Ordinance Introduction and Adoption ITEM #3 1/24/12 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." 0 Recycled Paper CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: January 24, 2012 AGENDA ITEM NO. 4 :M TITLE: Resolution of the City Council of National City authorizing the Mayor to execute a 2nd Amendment to the Agreement with Bureau Veritas North America, Inc. to increase the not -to -exceed amount of the Agreement by $300,000 for on -call general engineering services. construction inspections and project management services. (Funded by various CIP projects — No General Fund will be used.) PREPARED BY: Stephen Manganiello PHONE: 336-4582 EXPLANATION: See attached DEPARTMENT: Engineering APPROVED BY: 2 FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: APPROVED: Finance MIS There is no financial impact at this time. Funds will be encumbered on an as needed basis from allocations of CIP projects. No General Funds will be used. ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt resolution BOARD 1 COMMISSION RECOMMENDATION: N/A ATTACHMENTS: 1. Explanation 2. Amendment #2 — Bureau Veritas North America, Inc. 3. Resolution E ;,ianation: On October 19, 2010, per City Council Resolution No. 2010-234, the City of National ('it• entered into an agreement with Bureau Veritas North America, Inc. to provide on - call general engineering services, construction inspections and project management services for various Capital Improvement Projects. The contract amount was $100,000. On July 5, 2011, per City Council Resolution 2011-140, Council authorized the First Amendment to the Agreement to add an additional $100,000. This year's Capital Improvement (CIP) Program currently has 40 projects, totaling over $40 million. In order to keep these projects on schedule to meet various funding expenditure requirements and commitments to the citizens of National City, staff is requesting a Second Amendment to the Agreement to add an additional $300,000. This will allow Bureau Veritas North America, Inc. to continue to support staff with project delivery through the contract period, which terminates on October 6, 2012. Staff recommends execution of a Second Amendment to the Agreement. RESOLUTION NO. 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE A SECOND AMENDMENT TO THE AGREEMENT WITH BUREAU VERITAS NORTH AMERICA, INC., INCREASING THE NOT TO EXCEED AMOUNT AN ADDITIONAL $300,000 TO PROVIDE ON -CALL GENERAL ENGINEERING, CONSTRUCTION INSPECTIONS, AND PROJECT MANAGEMENT SERVICES FOR VARIOUS CAPITAL IMPROVEMENT PROJECTS FOR FY 2011-2012, FOR A TOTAL AGREEMENT AMOUNT OF $500,000 WHEREAS, on October 19, 2010, the City Council adopted Resolution No. 2010- 234, approving a two-year Agreement with Bureau Veritas North America, Inc., to provide on - call general engineering, construction inspections, and project management services for various capital improvement projects for a not to exceed amount of $100,000; and WHEREAS, on July 5, 2011, the City Council adopted Resolution No. 2011-140, approving the First Amendment to the Agreement increasing the not to exceed amount an additional $100,000, for a total Agreement amount of $200,000; and WHEREAS, this year's Capital Improvement Program currently has 40 projects, totaling over $40 Million. In order to keep these projects on schedule to meet various funding expenditure requirements and commitments to the citizens of National City, an additional $300,000 is necessary to support staff with project delivery through the contract period, which terminates on October 6, 2012, for a total Agreement amount of $500,000. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute the Second Amendment to the Agreement with Bureau Veritas North America, Inc., increasing the not to exceed amount an additional $300,000 to provide on -call general engineering, construction inspections, and project management services for various capital improvement projects for Fiscal Year 2011-2012, for a total Agreement amount of $500,000. Said Second Amendment to the Agreement in on file in the office of the City Clerk. PASSED and ADOPTED this 24th day of January, 2012. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney Ron Morrison, Mayor SECOND AMENDMENT TO AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND BUREAU VERITAS NORTH AMERICA, INC This second Amendment to the Agreement, is entered into this 24th day of January, 2012 by and between the City of National City, a municipal corporation ("CITY"), and Bureau Veritas North America, Inc. (the "CONSULTANT"). RECITALS WHEREAS, The CITY and the CONSULTANT entered into an agreement on October 19, 2010, ("the Agreement") through the adoption of City of National City Council Resolution No. 2010-234 wherein the CONSULTANT agreed to provide on -call general engineering services, construction inspections and project management services for various Capital Improvement Projects. WHEREAS, the original Agreement had a not -to -exceed amount of $100,000. WHEREAS, the Agreement expires on October 6, 2012, with an optional extension of one year when mutually agreed upon by the parties. WHEREAS, the parties amended the Agreement to increase the not - to -exceed limit by $100,000, for a total Agreement amount of $200,000 through the adoption of National City Council Resolution No. 2011-140, adopted on July 5, 2011. NOW, THEREFORE, the parties hereto agree that the Agreement entered into on October 19, 2010, shall be amended to increase the Agreement by an additional $300.000 to cover costs to provide for all services in the original Agreement. This will bring the total not -to -exceed amount for this contract to $500,000. The parties further agree that with the foregoing exception, each and every term and provision of the Agreement dated October 19, 2010, shall remain in full force and effect. 1 IN WITNESS WHEREOF, the parties hereto have executed this Agreement or,. the date and year first above written. CITY OF NATIONAL CITY BUREAU VERIT4S NORTH AMERICA, INC. By: Ron Morrison. Mayor APPROVED AS TO FORM: Claudia G. Silva City Attorney By: (Name) E { ln) (Print) (Title) Cur By: (Print) (Title) 2 --h c-C7Kr1) -- L.cm 1 IriLH 1 t Ut- LIABILITY INSURANCE 1 I OAI (MM,°o;;"Y' THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER_ THIS =ERTIFICATE DOTS NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES 3ELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND TIIE CERTIFICATE IIOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. II SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsernent A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsernent(s). PRonoCER — CON/ACT Ann Risk Services Northeast, loc. NAME: _ Par�,Ippanj' NI office 10 Lanldex Center- H VO.E Est). OS66) 28J-J122 PN (847) 953-5 On —_--_ ac. West P.0_ flax 608 Parsippany NJ 07054-0608 USA lFAX N. E-MAIL — --.—_ ADDRESS: ofSURER(S) AFFORDING COVERAGE NAIL N INSURED Bureau Serltas North America, inc. INSURER A: Lexington Insurance Company 19437 11590 L. Bernardo COUrt, N100 INSURER B- New Hampshire In: Co 23�,11 San Diego CA 9272/ USA INSURERct National Urtion Fire Ins Co of Pitt0bUrgh 19445 INSURLRD_ Commerce & TnduStry Ins co 19410 wsunutC Granite State Insurance Company 13809 COVERAGES INSURER F: CERTIFICATE NUMBER: 5700,121/5072 REVISION NUMBER: Tt1IS 1S TO CERTIFY THAT INDICATED CERTIFICATE EXCLUSIONS ItmR THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD NOTWITHSTANDING ANY REQUIREMENT, TERM OR COMAE/ON OF ANY CONIRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THUS MAY BE ISSUED OR MAY PERTAIN, 1HE INSURANCE AFFORDED BY 711E POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE IFRMS AND CONDITIONS OF SUCH POL CIES_ I IMITS SHOWN MAY HAVE BEEF REDUCED 1 Y PAID CLAIMS_ AM. Limits shown LTR o TYPE OF INSURANCE GENERAL I INSR SUBk wvu POLICY NUMnEH POLICY FFF POUiY EXP MMIDOh'YYY are as requested LIMITS — X LIABILITY CCJMMLHCIAL GENERAL IIARILIIY GL 6439313-I(�AM/UU(YY Vaig 1/2011 04/01/291i FACII OCCURRENCE E1,000, 000 -M(�� CLAIMSADE I y, 1CC OUR ET01eoN It PREMISES (L a ocwrrence) - b1, 000, 000 l 1 MED EXP(Any one person) j25 OOU PERSONAL& ADVINJURY S1,000.000 — GEN'L AGGREGATE L1M11 APPLIES GENERAL AGGREGATF S2,000,000 PER'. -IPOUCY X CPU- �JECT �l LrrL PROWCTS- COIAPIOP AGG 12,000,000 AUTOMOBLLEL1AHum CA 332/177 AOS 04/01/201.1 04/0121012 COMBINED SINGLE LIMIT (Ea accidcnr7 S 1, 000 , 000 - r — ANYAUTO ALL OWNED Sc iC0ur ED CA 33//118 A 04/01/201104/01/1012 BODILY INJURY( Per V�rzo,o All TCIS _ AUTOS NON-OWNED BOOM Y INJURY (Pe( accident) — HIRED AUTOS _—_ AUTOS NIOAMq(;E (Per arriArnl) UMORELLA I TAB OCCUR EXCFSSLIAD CLAIMS -MADE EACH OCCURRENCE AGGREGATE _ DWI RFTFNDuN B WORKERS COMPENSATION AND 'WCO25842103 B EMPLOYERS" 1IABILJIY ANY PR000JETOR!PAR rrvI_uIEXECUIIVE YrN OFFICER/MEMBER EJ(CLUIII-Il) I N I (Mandatory in NIT) N/A AOS WCO25842304 0-1/01/2011 04201/2011 04/01,2012 04/0122012 X F..L WC WC STATU- ER 11,000, 000 II yes-Jesraibe under DESCRIPTION of OPERATIONS helnw CA FI_. DISEASE -EA FLIRT°r EE 11,000,000 .. Arrhil&Eng EL.DISEASE-POIICYLIMII S1,000,000 DESCRIP Prof T ION OF OPERATIONS 026030221 SIR appl p y ll per alit terns 112302/2010 & rondi 12/1S/2011 ions Each Claim Aggregate 51,000,000— 11.,000, 000 — 1111 / LOCATIONS I VEHICLES (Attach ACORD 101. Additional Remarks Schedule, Amore ,, space required(idI The Architects & engineers policy nclodes coverage for Professional Liability and Contractors Pollution Liabi ity. RF_ on Call Professional Engineer ng & Construction Services. City of National City is included as Additional Insured as regulred by written contract, but limited to the operations of the Insured under said contract, per the applic tble endorsement with respect to the General Liability and Automobile Liability policies. A Waiver of Subrogation is granted i1 favor of Certificate Holder as required by written contract but limited to the operations of the Insured under said contract, with' respect to the workers' Compensation. -' ,,,' 41 /ERTIFICATF Ifr)f roFi NCELLATION City of National City Attn: Barby Tipton 1243 National City National City CA 91950 USA SHOULD ANY OF THE 400VE DESCRIBED POtIClEs BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE OCLNEREO W ACCORDANCE V,a1H _ PotICY PROVISIONS- AUTHIORIZED REPRESENTATIVE e Jt[671 t G[//r: a et CYfle9 L/ / LLilGll _ ACORD 25 (2010105) CJ1988-2010 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD 1 r1� Holder Inentifier 3 2 ENDORSEMENT This endorsement, effective 12:01 A.M. 04101 / 201 1 forms a part of polio'rtc CA 337-71-77 issued to BUREAU VERITAS NORTH AMERICA, INC_ by NATIONAL UNION FIRE INSURANCF COMPANY OF PITTSBURGH,PA THIS ENDORSEMENT CHANGES TI IE POI ICY PLEASE READ IT CAREFUL I Y ADDITIONAL INSURED - WHERE REQUIRED UNDER CONTRACT OR AGREEMENT This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM SCHEDULE ADDITIONAL INSURED: ANY PERSON OR ORGANIZATION FOR WHOM YOU ARE CONTRACTUALLY BOUND TO PROVIDE ADD 'L INSURED STATUS BUT ONLY TO Tl1E EXTENT OF SUCH PERSON OR ORGANIZATIONS LIABILITY ARISING OUT OF THE USE OF A COVERED AUTO I. SECTION II - LIABILITY COVERAGE, A. Coverage, 1. - Who Is Insured, is amended to add: 1. Any per sun or organization, shown in the schedule above, to whom you become obligated to include as an additional insured under this policy, as a result of any contract or agreement you enter into which requires you to furnish insurance to that person er organization of the type provided by this policy, but only with respect to liability arising out of use of a covered "auto". However, the insurance provided will not exceed the lesser of: (1) The coverage and/or limits of this policy, or (21 The coverage and/or limits required by said contract or agreement_ 87950 (1 °ro5) Archive Copy k2sf7G^,l AuthAfized Representative or Countersignature (in States Where Applicable.) Page 1 of 1 3 4 POLICY NUMBER: GL 6)0 -93 - 13 COMMERCIAL GENERAL LIABILITY CG 20 10 07 04 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED - OWNERS, LESSEES OR CONTRACTORS - SCHEDULED PERSON OR ORGANIZATION Ihis endorsement modifies insurance provided tinder the following_ COMMERCIAL GENERAL LIAR!! ITY COVERAGE PART SCHEDULE Name Of Additional Insured Persons) Or Organization(sl: BLANKET WHERE REOUIR❑) BY WRITTEN CONTRACT Locations) Of Covered Operations Information required to complete this Schedule, if not shown above, will be shown in the Declarations. A. Section II - Who Is An Insured is amended to include as an additional insured the person(s) or organization(s) shown in the Schedule, but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by: 1: Your acts or omissions; or 2. The acts or omissions of those acting on your behalf; in the performance of your ongoing operations for the additional insured(s) at the location(s) designated above. B. With respect to the insurance afforded to these additional insureds, the following additional exclusions apply: This insurance does not apply to "bodily injury" or "property damage" occurring after: CG 20 10 07 04 1_ All work, including materials, parts or equip- ment furnished in connection with such work, on the project (other than service, maintenance or repairs) to be performed by or on behalf of the additional insured(s) at the location of the covered operations has been completed; or 2. That portion of "your work" out of which the injury or damage arises has been put to its intended use by any person or organ ization other than another contractor or sub- contractor engaged in performing oper- ations for a principal es a part of the project_ 0 ISO Properties, Inc.,2004 Page 1 of 1 ❑ 4 5 WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT ,.is endorsesacnt changes the policy to which it is attached eltective on inception dale of the policy unless a different date is indicated below. 111u toil'jwaxd 'attaching clause" coed bo cornpl:3led e fly when Ihis endortantont is Issued subsequent to prepmatrxt d the per y)_ This endorsement, effective 120f AM 04/01/2011 Issued to BUREAU VERITAS NORTH AMERICA, INC. E3y NEW IIAMPSH IRE INSURANCE COMPANY Premium forms a part of Policy No. WC 025-84-2303 We have the right to recover our payments from anyone liable tor an injury covered by this policy. We will not enforce our right against the person or organization namod in the Schedule. This agreement appl;os only to the extent that you perform work under a written contract that regtilres you to ohtaln This agreement from us This agreement shall not operate directly or indirectly to benefit any one not named in the Schedule. Schedule ANY PERSON OR ORGANIZATION TO WHON YOU BECOME OBLIGATED TO WAIVE YOUR RIGHTS OF RECOVERY AGAINST, UNDER ANY CONTRACT OR AGREEMENT YOU ENTER INTO PRIOR TO THE OCCURRENCE OF LOSS. This form is not applicable in California, Kentucky, Nev., Hampshire, New Jersey, North Dakota, Ohio, Tennessee Texas. Utah, or Washington. WC 00 03 13 (Ed. 04184) Countersigned by Authorized Representative 5 6 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: January 24, 2012 AGENDA ITEM NO. 5 :M TITLE: Resolution of the City Council of National City authorizing the Mayor to execute a 2°d Amendment to the Agreement with Project Professional Corporation to increase the not -to -exceed amount of the Agreement by $300,000 for on -call general engineering services. construction inspections and project management services. (Funded by various CIP projects — No General Fund will be used.) PREPARED BY: Stephen Manganiello PHONE: 336-4582 EXPLANATION: See attached DEPARTMENT: Engineering APPROVED BY: FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: APPROVED: Finance MIS There is no financial impact at this time. Funds will be encumbered on an as needed basis from allocations of CIP projects. No General Funds will be used. ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt resolution BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: 1. Explanation 2. Amendment #2 — Project Professionals Corporation 3. Resolution Explanation: On October 5, 2010, per City Council Resolution No. 2010-225, the City of National City antered into an agreement with Project Professionals Corporation to provide on -call general engineering services, construction inspections and project management ervices for various Capital Improvement Projects. The contract amount was $300,000. On July 5, 2011, per City Council Resolution 2011-143, Council authorized the First Amendment to the Agreement to add an additional $300,000. This year's Capital Improvement (CIP) Program currently has 40 projects, totaling over $40 million. In order to keep these projects on schedule to meet various funding expenditure requirements and commitments to the citizens of National City, staff is requesting a Second Amendment to the Agreement to add an additional $300,000. This will allow Project Professionals Corporation to continue to support staff with project delivery through the contract period, which terminates on October 6, 2012. Staff recommends execution of a Second Amendment to the Agreement. RESOLUTION NO. 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE A SECOND AMENDMENT TO THE AGREEMENT WITH PROJECT PROFESSIONALS CORPORATION INCREASING THE NOT TO EXCEED AMOUNT AN ADDITIONAL $300,000 'i O PROVIDE ON -CALL GENERAL ENGINEERING, CONSTRUCTION INSPECTIONS, AND PROJECT MANAGEMENT SERVICES FOR VARIOUS CAPITAL IMPROVEMENT PROJECTS, FOR A TOTAL AGREEMENT AMOUNT OF $900,000 WHEREAS, on October 5, 2010, the City Council adopted Resolution No. 2010- 225, approving a two-year Agreement with Project Professionals Corporation to provide on -call general engineering, construction inspections, and project management services for various capital improvement projects for a not to exceed amount of $300,000; and WHEREAS, on July 5, 2011, the City Council adopted Resolution No. 2011-143, approving the First Amendment to the Agreement increasing the not to exceed amount an additional $300,000, for a total Agreement amount of $600,000; and WHEREAS, this year's Capital Improvement Program currently has 40 projects, totaling over $40 Million. In order to keep these projects on schedule to meet various funding expenditure requirements and commitments to the citizens of National City, an additional $300,000 is necessary to support staff with project delivery through the contract period, which terminates on October 6, 2012, for a total Agreement amount of $900,000. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute the Second Amendment to the Agreement with Project Professionals Corporation increasing the not to exceed amount an additional $300,000 to provide on -call general engineering, construction inspections, and project management services for various capital improvement projects for Fiscal Year 2011-2012, for a total Agreement amount of $900,000. Said Second Amendment to the Agreement in on file in the office of the City Clerk. PASSED and ADOPTED this 24th day of January, 2012. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney Ron Morrison, Mayor SECOND AMENDMENT TO AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND PROJECT PROFESSIONAL CORPORATION, INC This second Amendment to the Agreement, is entered into this 24th day of January, 2012 by and between the City of National City, a municipal corporation ("CITY"), and Project Professional Corporation, Inc. (the "CONSULTANT"). RECITALS WHEREAS, The CITY and the CONSULTANT entered into an agreement on October 5, 2010, ("the Agreement") through the adoption of City of National City Council Resolution No. 2010-225 wherein the CONSULTANT agreed to provide on -call general engineering services, construction inspections and project management services for various Capital Improvement Projects. WHEREAS, the original Agreement had a not -to -exceed amount of $300,000. WHEREAS, the Agreement expires on October 6, 2012, with an optional extension of one year when mutually agreed upon by the parties. WHEREAS, the parties amended the Agreement to increase the not - to -exceed limit by $300,000, for a total Agreement amount of $600,000 through the adoption of National City Council Resolution No. 2011-143, adopted on July 5, 2011. NOW, THEREFORE, the parties hereto agree that the Agreement entered into on October 5, 2010, shall be amended to increase the Agreement by an additional $300,000 to cover costs to provide for all services in the original Agreement. This will bring the total not -to -exceed amount for this contract to $900,000. The parties further agree that with the foregoing exception, each and every term and provision of the Agreement dated October 5, 2010, shall remain in full force and effect. 1 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written. CITY OF NATIONAL CITY PROPECT PROFESSIONALS CORPORATION, INC. By: By: Ron Morrison, Mayor ((PPrint) 70 -rc APPROVED AS TO FORM: (Title) Claudia G. Silva City Attorney C, e /77'e [ �e (Print) (F (Title) 2 "t,✓"" CERTIFICATE OF LIABILITY INSURANCE DATE(MM/DD/YYYY) 08/17/201 1 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. HIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S). AUTHORIZED REPRESENTATIVE R PRODUCER, AND THE CERTIFICATE HOLDER. r01PORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION is WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CONTACT NAME: AHERN INSURANCE BROKERAGE 9655 GRANITE RIDGE DR STE 500 PHONE lac, No, Ex1): (888) 661-3938 FAX LAM, No): (877) 5s2-6Ds1 SAN DIEGO, CA 92123 E-MAIL ADDRESS: Service.centerPtravelers.com (888) 661-3938 PRODUCER _C_USS4ME8x)N' 1104E_A146 X0052 882 INSURERIS) AFFORDING COVERAGE NAIL tt INSURED PROJECT PROFESSIONAL CORP INSURER A:TRAVELERS PROPERLY CASUALTY COMPANY OF AMERICA 656 FIFTH AVENUE STE. W INSURER B TRAVELERS CASUALTY INSURANCE COMPANY OF AMERICA SAN DIEGO, CA 92101 INSURER C: INSURER D. INSURER E: INSURER F. COVERAGES CERTIFICATE NUMBER: 652271604081322 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL TI IE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR TYPE OF INSURANCE ADDL INSIL SUBR POLICY NUMBER POLICY EFF (MM/DD/YVVY) POLICY EXP IMM/001VVYY) LIMITS B GENERAL X LIABIITY COMMERCIAL GENERAL LIABILITY X 680-9688P418-11 05/10/2011 05/10/2012 EACH OCCURRENCE $2,000,000 1 CLAIMS -MADE I X I OCCUR DAMAGE TO RENTED PREMISES (Ea occurrence) $300,006 X HREDwuro MED EXP (Any one person) $5,000 X NON OWNED AUTO PERSONAL BAp'JINJURY $2,000,000 GENERAL AGGREGATE $4,000,000 GENII AGGREGATE LIMIT APPLIES PER: PRO - PRODUCTS - COMP/OP AGG $4,000,000 POLICY X JECT LOC $ AUTOMOBILE LIABILITY ANY AUTO COMBINED SINGLE LIMIT (Ea accident) $ ALL OWNED AUTOS BODILY INJURY (Per person) $ SCHEDULED AUTOS BODILY INJURY (Pei accident) $ HIRED AUTOS PROPERTY DAMAGE (Per accidenp $ _ NON -OWNED AUTOS $ $ UMBRELLA LIAB EXCESS LIAB O OCCUR EACHOCCURP.ENCE $ CLAIMS -MADE AGGREGATE $ DEDUCTIBLE RETENTION $ $ $ A WORKERS COMPENSATION AND EMPLOYERS' LIABILITY Y/N NIA UB-1329R331-11 05/10/2011 05/10/2012 X vlienfaU- OW TORY LIMITS R ANY PROPRIETOR'PARTNERrEXECt1TIVE OFFICERIMEMBER EXCLUDED? E L. EACH ACCIDENT $ 1,000,000 (Mandatory in NH) 11 qes. describe un Aar E.L. DISEASE - EA EMPLOYES $ 1,000,000 SPECIAL PROVISIONS below E.L. DISEASE - POLICY LIMIT $ 1,000,000 DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (Attach ACORD 101, Additional Remarks Schedule, if more space is required) AS RESPECTS TO GENERAL LIABILITY, CERTIFICATE HOLDER IS ADDITIONAL INSURED - DESIGNATED PERSON/ORGANIZATION, CG T4 91 . CERTIFICATE HOLDER CANCELLATION CITY OF NATIONAL CITY, ITS ELECTED OFFICIALS, OFFICERS, AGENTS, 1243 NATIONAL CITY BLVD NATIONAL CITY, CA 91950 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE �j ./�//�, r r/L—y�J �/ I V /_ — ACORD 25 (2009/09) © 1988-2009 ACORD CORPORATION. All rights reserv?d The ACORD name and logo are registered marks of ACORD 3 TRAVELERS) One Tower Square, Hartford, Connecticut 06183 CHANGE ENDORSEMENT INSURING COMPANY: TRAG2Tr3RS "_FSUALTY INSURANCE COMPANY OF AMERICA Named Insured: PROJECT PROFESSIONAL CORP Policy Number: I-680-9688P418-ACJ-11 Policy Effective Date: 05-10-11 Policy Expiration Date: 05-10-12 Issue Date: 08-16-11 Premium $ NIL Effective from 05-10-11 at the time of day the policy becomes effective. THIS INSURANCE IS AMENDED AS FOLLOWS: TRANSACTION EFFECTIVE DATE IS AMENDED TO 08/11/2011 ADDITIONAL INSUREDS ARE ADDED TO THE POLICY AS PROVIDED UNDER THE ATTACHED ENDORSEMENT(S): CG T4 91 THE FOLLOWING FORMS AND/OR ENDORSEMENTS IS/ARE INCLUDED WITH THIS CHANGE. THESE FORMS ARE ADDED TO THE POLICY OR REPLACE FORMS ALREADY EXISTING ON THE POLICY: CG T4 91 11 88 NAME AND ADDRESS OF AGENT OR BROKER Countersigned by AHERN INSURANCE BRKRG X0052 9655 GRANITE RIDGE DR STE 500 SAN DIEGO CA 92123 DATE: Authorized Representative IL TO 07 09 87 (Page 01 of 01) Office: ELMIRA NY SRV CTR 4 POLICY NUMBER: I-680-9688P418-ACJ-11 EFFECTIVE DATE: 05-10-11 ISSUE DATE: 08-16-11 LISTING OF FORMS, ENDORSEMENTS AND SCHEDULE NUMBERS THIS LISTING SHOWS THE NUMBER OF FORMS, SCHEDULES AND ENDORSEMENTS BY LINE OF BUSINESS. IL TO 07 09 87 CHANGE ENDORSEMENT IL T8 01 01 01 FORMS, ENDORSEMENTS AND SCHEDULE NUMBERS COMMERCIAL GENERAL LIABILITY CG T4 91 11 88 ADDL INSD-DESIGNATED PERSON/ORGANIZATION IL T8 01 01 01 PAGE: 1 OF 5 COMMERCIAL GENERAL LIABILITY POLICY NUMBER: I-680-9688P418-ACJ-11 ISSUE DATE: 08-16-11 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED -DESIGNATED PERSON OR ORGANIZATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name of person or organization: CITY OF NATIONAL CITY, ITS ELECTED OFFICIALS, OFFICERS, AGENTS, AND EMPLOYEES 1243 NATIONAL CITY BLVD NATIONAL CITY CA 91950-4301 WHO IS AN INSURED (Section II) is amended to include as an insured the person or organization shown in the Schedule as an insured but only with respect to liability arising out of your acts or omissions. CG T4 9111 88 Copyright, Insurance Services Office, Inc., 1984 Page 1 cf 1 TlA VELERS AJ mok TOWER SQUARE HARTFORD, CT 06183 WORKERS COMPENSATION AND EMPLOYERS LIABILITY POLICY ENDORSEMENT WC 04 03 06'(01) — 001 POLICY NUMBER: (IJUB-1329R33-1-11) WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT-CALIFORNIA We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against the person or organization named in the Schedule. (This agreement applies only to the extent that you perform work under a written contract that requires you to obtain this agreement from us.) You must maintain payroll records accurately segregating the remuneration of your employees while engaged in the work described in the Schedule. THE ADDITIONAL PREMIUM FOR THIS ENDORSEMENT SHALL BE 1.000 % OF THE CALIFORNIA WORKERS' COMPENSATION PREMIUM OTHERWISE DUE ON SUCH REMUNERATION. SCHEDULE PERSON OR ORGANIZATION JOB DESCRIPTION CITY OF NATIONAL CITY CONSULTING DATE OF ISSUE: 03-31-11 STASSIGN: 7 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: January 24, 2012 AGENDA ITEM NO. 6 EM TITLE: Resolution of the City Council of National City authorizing the Mayor to execute a 2°a Amendment to the Agreement with Harris & Associates to increase the not -to -exceed amount of the Agreement by $200,000 for on - call general engineering, services, construction inspections and project management services. (Funded by various CIP projects — No General Fund will be used.) PREPARED BY: Stephen Manganiello PHONE: 336-4582 EXPLANATION: See attached DEPARTMENT: Engineering APPROVED BY: FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: APPROVED: Finance MIS There is no financial impact at this time. Funds will be encumbered on an as needed basis from allocations of CIP projects. No General Funds will be used. ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: rl FINAL ADOPTION: STAFF RECOMMENDATION: Adopt resolution BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: 1. Explanation 2. Amendment #2 — Harris & Associates, Inc. 3. Resolution Explanation: 1 October 5, 2010, per City Council Resolution No. 2010-226, the City of National City nnter^ri into an agreement with Harris & Associates, Inc. to provide on -call general engineering services, construction inspections and project management services for various Capital Improvement Projects. The contract amount was $100,000. On July 5, 2011, per City Council Resolution 2011-139, Council authorized the First Amendment to the Agreement to add an additional $100,000. This year's Capital Improvement (CIP) Program currently has 40 projects, totaling over $40 million. In order to keep these projects on schedule to meet various funding expenditure requirements and commitments to the citizens of National City, staff is requesting a Second Amendment to the Agreement to add an additional $200,000. This will allow Harris & Associates, Inc. to continue to support staff with project delivery through the contract period, which terminates on October 6, 2012. Staff recommends execution of a Second Amendment to the Agreement. RESOLUTION NO. 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE A SECOND AMENDMENT TO THE AGREEMENT WITH HARRIS & ASSOCIATES INCREASING THE NOT TO EXCEED AMOUNT AN ADDITIONAL $200,000 TO PROVIDE ON -CALL GENERAL ENGINEERING, CONSTRUCTION INSPECTIONS, AND PROJECT MANAGEMENT SERVICES FOR VARIOUS CAPITAL IMPROVEMENT PROJECTS FOR FY 2011-2012, FOR A TOTAL AGREEMENT AMOUNT OF $400,000 WHEREAS, on October 5, 2010, the City Council adopted Resolution No. 2010- 226, approving a two-year Agreement with Harris & Associates to provide on -call general engineering, construction inspections, and project management services for various capital improvement projects for a not to exceed amount of $100,000; and WHEREAS, on July 5, 2011, the City Council adopted Resolution No. 2011-139, approving the First Amendment to the Agreement increasing the not to exceed amount an additional $100,000, for a total Agreement amount of $200,000; and WHEREAS, this year's Capital Improvement Program currently has 40 projects, totaling over $40 Million. In order to keep these projects on schedule to meet various funding expenditure requirements and commitments to the citizens of National City, an additional $200,000 is necessary to support staff with project delivery through the contract period, which terminates on October 6, 2012, for a total Agreement amount of $400,000. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute the Second Amendment to the Agreement with Harris & Associates increasing the not to exceed amount an additional $200,000 to provide on -call general engineering, construction inspections, and project management services for various capital improvement projects for Fiscal Year 2011-2012, for a total Agreement amount of $400,000. Said Second Amendment to the Agreement in on file in the office of the City Clerk. PASSED and ADOPTED this 24th day of January, 2012. ATTEST: Michael R. Della, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney Ron Morrison, Mayor SECOND AMENDMENT TO AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND HARRIS & ASSOCIATES, INC This second Amendment to the Agreement, is entered into this 24th day of January, 2012 by and between the City of National City, a municipal corporation ("CITY"), and Harris & Associates, Inc. (the "CONSULTANT"). RECITALS WHEREAS, The CITY and the CONSULTANT entered into an agreement on October 5, 2010, ("the Agreement") through the adoption of City of National City Council Resolution No. 2010-226 wherein the CONSULTANT agreed to provide on -call general engineering services, construction inspections and project management services for various Capital Improvement Projects. WHEREAS, the original Agreement had a not -to -exceed amount of $100,000. WHEREAS, the Agreement expires on October 6, 2012, with an optional extension of one year when mutually agreed upon by the parties. WHEREAS, the parties amended the Agreement to increase the not - to -exceed limit by $100,000, for a total Agreement amount of $200,000 through the adoption of National City Council Resolution No. 2011-139, adopted on July 5, 2011. NOW, THEREFORE, the parties hereto agree that the Agreement entered into on October 6, 2010, shall be amended to increase the Agreement by an additional $200,000 to cover costs to provide for all services in the original Agreement. This will bring the total not -to -exceed amount for this contract to $400,000. The parties further agree that with the foregoing exception, each and every term and provision of the Agreement dated October 5, 2010, shall remain in full force and effect. i IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written. CITY OF NATIONAL CITY HARRIS By: By: Ron Morrison, Mayor ( ame) Elk s . (Print) APPROVED AS TO FORM: (Title) ATES, INC. By: 114— Claudia G. Silva (Name) City Attorney (Print) VtCe QrzesrO.c rr (Title) 2 CERTIFICATE OF LIABILITY INSURANCE [ DATE (MINDDJ'r YYY) 08/01/2011 rHis CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE 00ES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). '•RCUUCER 0757776 1-800-877-4560 HUB International Insurance Services Inc. P.O. Box 4047 Concord, CA 94524 INSURED Harris 6 Associates Inc. Attn: Susan Mandilag 1401 Willow Pass Road, Suite 500 Concord, CA 94520 CONTACT Dina Afkhami ONE UAX (A/C, Na Ext) 925 609 6500 1 (A/C Na) 925 609-6550 ... E-MAIL ADDRESS: diva .afkhami? hubinterna tional.o cm SERE_.. N SURER( AFFORDING COVERAGE NAIL 4 _.__ .. .. ..__ ERRS __. .__.. _USES.. SURERA: Massachusetts Bay Insurance Co INSNRE50: Wausau Underwriters Insurance Company INSURER C: Colony National Insurance Company INsu5ERD Travelers Property Casualty Co of Amer. INSURER : Continental Casualty Company INSURER r : COVERAGES CERTIFICATE NUMBER: 22567764 REVISION NUMBER: THIS INDICATED. CERTIFICATE EXCLUSIONS INSR LTR IS TO CERTIFY THAT THE POLICIES OF INSURANCE NOTWITHSTANDING ANY REQUIREMENT, MAY BE ISSUED OR MAY PERTAIN, AND CONDITIONS OE SUCH POLICIES. ADDL TYPE OF INSURANCE NOR SUER SUER MP LISTED BELOW HAVE BEEN ISSUED TO TERM OR CONDITION OF ANY CONTRACT THE INSURANCE AFFORDED BY THE POLICIES LIMITS SHOWN MAY HAVE BEEN REDUCED BY _._ POLICY EFF POLICY NUMBER (tdM/ODlYI'YV' THE INSURED OR OTHER DESCRIBED PAID CLAIMS. POLICY EXP (MMIDP/YYYY} NAMED ABOVE FOR THE POLICY PERIOD DOCUMENT WITH RESPECT TO WHICH THIS HEREIN IS SUBJECT TO AL'I_ THE TERMS, - - - L n11TS A GENERALLIADILTY __-_ X GENT COMMERCIAL GENERAL LIABILITY X J MERCALGEN I OCCUR Ded: 10,000 per Occ AGGREGATE LIMIT APPLIES PER: _ I x PRO t POLICY I JEC L LOC � 511F920172200 08/01/11 08/01/12 EACHGCCORRENCE ------CYO RENTE6 PREMISES (Fa nrcurrerc) MED EXP (Any cno poison) _._...._.._ PERSONAL 3 AUV INJURY GENERAL AGGREGATE PRODUCTS - COMP/OP AGG $ 1,000,000 - -�- -' g 500 ODO $ 10,000 ERRS. 5 1,000,000 s 2,00E1,000 $ 2, ODD, 000 SERE- SEES__ 5 B AUTOMOBILE X _ x x LIABILITY ANY AUTO ALL OWNED AUTOS LURED AUTOS Ded: 0 SERE _X_.. SCHEDULED AUTOS', NON-CANNED ED AUTOS ASJZ91455034011 08/01-/i 1-70-87 ' I l/12 COMBINED SNGLE IJ MIT (Ea accident)..... ._._._... _._$__..._ BODILY INJURY(Por Person) DODILY INJURY (Per Anrvten0 PROPERE (PFUMF8T DAMAGE (Per_egcidentj .._..__ .. 1, 000,000 5 $ $ 5 C .. X UMBRELLA LAD EXCESS LAB DEO 1 X I RETENTION X __ $ occuR AR6460401 I 08/01/11 ! . 08/01/12 EACH OCCURRENCE _._. ..._... ..__.. AGGREGATE _._ $ 10 000,000 .SEES_ 5 LO 000, 000 SEES_. .__... $ D WORKERS COMPENSATION AND EMPLOYERS' LIADUATV YIN ANY or RCE PRIE70R EXCTUOEO7 VI'IVE EXCLUDED? (tdandalory in MI) �' (Mond ory in NH) R yes desc6. under DESCRIPTION OF OPERATIONS Uclo.v N(A PJUB8166N36A11 ti ! 08/01/11 08/01/12 XIYORYLLNt1S1___.IER El EACH ACCIDENT --- --- El. DISEASE EMPLOYE ERRS.. EA ._. ...E El. DISEASE - POLICY LIMIT .....__.. ----- _-. 5 1, 000, 000 - -- -- --- 1,000,000 S ....... 000 5 1,000,000 E Professional Liability AEA113822501 ' 08/01/11 08/01/12 Per Claim: 10,000,000 Aggregate: 15,000,000 Ded. Each Claim: 150,000 DESCRIPTION se Workers General forms RE A. OF OPERATIONS /LOCATIONS 1 VEHICLES lAtlach ACORD 101, Add,I/onal Remarks Schedulel, If more space Is Compensation policy excludes monopolistic states ND, OH, WA, WY. 6 Auto Liability Additional Insured status granted, if required by 421-0778 0909 6 CA2049 0299. -Needed Xngi-m.+eri.ID,-j E;.rviccs (,EA 0082-0270) regNred) written contract/agreement, per attached CERTIFICATE HOLDER 082-0270 City of National City Ginny Orcutt c/o City Attorney's Office 1243 National City Blvd. National City, CA 91950-4301 USA ACORD 25 (2010/05) dgarcia 22567764 CANCELLATION SHOULD ANY OF TI(E ABOVE DESCRIBED POLICIES BE CANCELLED BFEORG THE EXPIRATION DATE THEREOF', NONCE WILL BE UELIVERL,1 .• . ACCORDANCE WITH THE POLICY PROVISIONS_ AUTHORIZED REPRESENTATIVE © 1988-2010 ACORD CORPORATION. All rights reserved, The ACORD name and Togo are registered marks of ACORD .:I2 3 POLICY NUMBER: Z11F920172200 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. Other Insurance — Primary and Non -Contributory (Additional Insured) endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART The following is added to Section IV — Commercial General Liability Conditions 4. Other Insurance a. Additional lnsureds If you agree in a written contract, written agreement or permit that the insurance provided to any person or organization included as an Additional Insured under Section II — Who is An Insured, is primary and non-contributory, the following applies: If other valid and collectible insurance is available to the Additional Insured for a loss we cover under Coverages A or B of this Coverage Part, our obligations are limited as follows: 1.Primary Insurance This insurance is primary to other insurance that is available to the Additional Insured which covers the Additional Insured as a Named Insured. We will not seek contribution from any other insurance available to the Additional Insured except; i. For the sole negligence of the Additional Insured; ii. when the Additional Insured is an Additional Insured under another primary liability policy; or when 2. below applies. If this insurance is primary, cur obligations arc not affected unless any of the other Insurance is also primary. Then, we will share with all that olher insurance by the method described in 3. below. 2. Excess Insurance This insurance Is n:<ces. over: (1) Any of the oli;er insurance, whether primary, excess, contingent or on any other basis: 421.0452 06 07 (a) That is Fire, Extended Coverage, Builder's Risk, Installation Risk or similar coverage for "your work"; (b) That is Fire insurance for premises rented to the Additional Insured or temporarily occupied by the Additional Insured with permission of the owner; That Is insurance purchased by the Additional Insured to cover the Additional Insured's liability as a tenant for "property damage" to premises rented to the Additional Insured or temporarily occupied by the Additional with permission of the owner; or (d) If the lass arises out of the maintenance or use of aircraft, "autos" or watercraft to the extent not subject to Exclusion g. of Section I — Coverage A -- Bodily Injury And Property Damage Liability. When this insurance is excess, we will have no duly under Coverages A or B to defend the insured against any "suit" if any other insurer has a duty to defend the insured against that "suit". It no other insurer defends, we will underiakr; to do so, hut we will be entitled to nghtc LrI('.inht ni! 1i 11; gi1121 irr.:urtxs_ When this insurance is excess over other insurance, we will pay only our share of fie amount of the lass, if any, that ex s sum of: (c) Includes copyrighted material of Insurance Services Offices, Inc., with its permission rage' s:v 4 POLIO' NUMBER: ZHF920172200 COMMERCIAL GENERAL LIABILITY CG 24 04 05 09 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. WAIVER OF TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO US This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART SCHEDULE Name Of Person Or Organization: AS REQUIRED BY CONTRACT Information required to complete this Schedule, if not shown above, will be shown in the Declarations. The following is added to Paragraph 8. Transfer Of Rights Of Recovery Against Others To Us of Section IV — Conditions: We waive any right of recovery we may have against the person or organization shown in the Schedule above because of payments we make for injury or damage arising out of your ongoing operations or "your work" done under a contract with that person or organization and included in the "products -completed operations hazard". This waiver applies only to the person or organization shown in the Schedule above. CG 24 04 05 09 © Insurance Services Office, Inc., 2008 Page 1 of 1 Policy Number: Policy Period: ASJZ91455034011 Wausau Underwriters Insurance Company August 1, 2011 to August 1, 2012 Excerpts from: Form CA0001 0306 BUSINESS AUTO COVERAGE FORM 5 Other Insurance a. For any covered "auto" you own, this Coverage Form provides primary insurance. For any covered "auto" you don't own, the insurance provided by this Coverage Form is excess over any other collectible insurance. However, while a covered "auto" which is a "trailer" is connected to another vehicle, the Liability Coverage this Coverage Form provides for the `trailer" is: (1) Excess while it is connected to a motor vehicle you do not own. (2) Primary while it is connected to a covered "auto" you own. b. For Hired Auto Physical Damage Coverage, any covered "auto" you lease, hire, rent or borrow is deemed to be a covered "auto" you own. However, any "auto" that is leased, hired, rented or borrowed with a driver is not a covered "auto". c. Regardless of the provision of Paragraph a. above, this Coverage Form's Liability Coverage is primary for any liability assumed under an "insured contract". d. When this Coverage Form and any other Coverage Form or policy covers on the same basis, either excess or primary, we will pay only our share. Our share is the proportion that the Limit of Insurance of our Coverage Form bears to the total of the limits of all the Coverage Forms and policies covering on the same basis. Page 1 of 1 6 9.12 TRAVELERS J WORKERS COMPENSATION AND EMPLOYERS LIABILITY POLICY ENDORSEMENT WC o0 03 13 (D0)- of POLICY NUM3ER (PJUB-8166N36-A-11) WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT We have the right to recover our payments from anyone liable for an Injury covered by this policy. We will not enforce our right against the person or organization named In the Schedule. (Thls agreement applies only to the extent that you perform work under a written contract that requires you to obtain thls agreement from us.) This agreement shall riot operate directly or Indirectly to benefit any one not named In the Schedule. SCHEDULE DESIGNATED PERSON: DESIGNATED ORGANIZATION: ANY PERSON OR ORGANIZATION FOR WHOM THE NAMED INSURED HAS AGREED I3Y WRITTEN CONTRACT EXECUTED PRIOR TO LOSS To FURNISH THIS WAIVER. DATE OE ISSUE: 07-29-11 ST ASSIGN: 7 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: January 24, 2012 AGENDA ITEM NO. 7 ._M TITLE: Resolution of the City Council of National City authorizing the Mayor to execute a 2°" Amendment to the Agreement with Kimley-Horn & Associates, Inc. to increase the not -to -exceed amount of the Agreement by $200,000 for on. -call general engineering services, construction inspections and project management services. (Funded by various CIP projects — No General Fund will be used.) PREPARED BY: Stephen Manganiello PHONE: 336-4582 EXPLANATION: See attached DEPARTMENT: Engineering APPROVED BY: FINANCIAL STATEMENT: APPROVED: L'Vl Finance ACCOUNT NO. APPROVED: MIS There is no financial impact at this time. Funds will be encumbered on an as needed basis from allocations of CIP projects. No General Funds will he used. ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt resolution BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: 1. Explanation 2. Amendment #2 — Kimley-Horn & Associates, Inc. 3. Resolution Lx i!rnation: un October 5, 2010, per City Council Resolution No. 2010-227, the City of National City entered into an agreement with Kimley-Horn & Associates, Inc. to provide on -call general engineering services, construction inspections and project management services for various Capital Improvement Projects. The contract amount was $100,000. On July 5, 2011, per City Council Resolution 2011-142, Council authorized the First Amendment to the Agreement to add an additional $100,000. This year's Capital Improvement (CIP) Program currently has 40 projects, totaling over $40 million. In order to keep these projects on schedule to meet various funding expenditure requirements and commitments to the citizens of National City, staff is requesting a Second Amendment to the Agreement to add an additional $200,000. This will allow Kimley-Horn & Associates, Inc. to continue to support staff with project delivery through the contract period, which terminates on October 6, 2012. Staff recommends execution of a Second Amendment to the Agreement. RESOLUTION NO. 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE A SECOND AMENDMENT TO THE AGREEMENT WITH KIMLEY-HORN & ASSOCIATES, INC., INCREASING THE NOT TO EXCEED AMOUNT AN ADDITIONAL $200,000 TO PROVIDE ON -CALL GENERAL ENGINEERING, CONSTRUCTION INSPECTIONS, AND PROJECT MANAGEMENT SERVICES FOR VARIOUS CAPITAL IMPROVEMENT PROJECTS FOR FY 2011-2012, FOR A TOTAL AGREEMENT AMOUNT OF $400,000 WHEREAS, on October 5, 2010, the City Council adopted Resolution No. 2010- 227, approving a two-year Agreement with Kimley-Horn & Associates, Inc., to provide on -call general engineering, construction inspections, and project management services for various capital improvement projects for a not to exceed amount of $100,000; and WHEREAS, on July 5, 2011, the City Council adopted Resolution No. 2011-142, approving the First Amendment to the Agreement increasing the not to exceed amount an additional $100,000, for a total Agreement amount of $200,000; and WHEREAS, this year's Capital Improvement Program currently has 40 projects, totaling over $40 Million. In order to keep these projects on schedule to meet various funding expenditure requirements and commitments to the citizens of National City, an additional $200,000 is necessary to support staff with project delivery through the contract period, which terminates on October 6, 2012, for a total Agreement amount of $400,000. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute the Second Amendment to the Agreement with Kimley-Horn & Associates, Inc., increasing the not to exceed amount an additional $200,000 to provide on -call general engineering, construction inspections, and project management services for various capital improvement projects for Fiscal Year 2011-2012, for a total Agreement amount of $400,000. Said First Amendment to the Agreement in on file in the office of the City Clerk. PASSED and ADOPTED this 24th day of January, 2012. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney Ron Morrison, Mayor SECOND AMENDMENT TO AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND KIMLEY-HORN & ASSOCIATES, INC This second Amendment to the Agreement, is entered into this 24th day of January, 2012 by and between the City of National City, a municipal corporation ("CITY"), and Kimley-Horn & Associates, Inc. (the "CONSULTANT"). RECITALS WHEREAS, The CITY and the CONSULTANT entered into an agreement on October 5, 2010. ("the Agreement") through the adoption of City of National City Council Resolution No. 2010-227 wherein the CONSULTANT agreed to provide on -call general engineering services, construction inspections and project management services for various Capital Improvement Projects. WHEREAS, the original Agreement had a not -to -exceed amount of $100,000. WHEREAS, the Agreement expires on October 6, 2012, with an optional extension of one year when mutually agreed upon by the parties. WHEREAS, the parties amended the Agreement to increase the not - to -exceed limit by $100,000, for a total Agreement amount of $200,000 through the adoption of National City Council Resolution No. 2011-142, adopted on July 5, 2011. NOW, THEREFORE, the parties hereto agree that the Agreement entered into on October 6, 2010, shall be amended to increase the Agreement by an additional $200,000 to cover costs to provide for all services in the original Agreement. This will bring the total not -to -exceed amount for this contract to $400,000. The parties further agree that with the foregoing exception, each and every term and provision of the Agreement dated October 5, 2010, shall remain in full force and effect. i IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written. CITY OF NATIONAL CITY KIMLEY-HO,RN SO ITES, INC. By: By: Ron Morrison, Mayor (Name) f1 i H >4 v_c_. s . doss (Print) ✓// �_ 1TF-E5( A9r7- APPROVED AS TO FORM: (Title) By: 0— Claudia G. Silva (Name) City Attorney (Print) 54,. IJL (( Pi c s c14K:1 (Titl e) 2 UtHTIFICATE OF LIABILITY INSURANCE DATE(A1M/DD/YYYY) 11/10/2011 THIS CERTIFICATE IS ISSUED AS A MATTER Of INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED ELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), EPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. HOLDER. THIS BY THE POLICIES AUTHORIZED ,,.1PORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER Crlyling Insurance Brokerage 450 Northridge Parkway Suite 102 Atlanta GA 30350 CpO1,12" JerryNo YOld PHONE (770)552-4225 FAX (PC No EKt/' to/C No): 1865)590-9092 E-h+err no olaQ AppPAIL FSg j Y• Y 9=eyling.com INSURER(S) AFFORDING COVERAGE NAIL Il INSURER Travelers Prop. Cas. Co America INSURED Kimley-Horn and Associates, Inc. P.O. Box 33068 Raleigh NC 27636 INSURERa:Travelers Indelnllity Company 25674 25682 INSURER c:Lexinuton Insurance Company 19437 INSURER D: INSURER En INSURER F COVERAGES (`C OTtonn V REVISION NUMBER: THIS INDICATED CERTIFICATE EXCLUSIONS INSR IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEENISSUED INSUREDPERIOD NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANYCONTRACT OR OTHEDOCUMENT WITH RESPECT TOLWH 00 10IS MAY BF ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO All THE TERMS. AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY f !AVE BEEN REDUCED 6Y PAID CLAIMS- LTR TYPE 0f INSURANCE ADOL INSR SURD Y11'D POLICY NU12809 POLICY EFF {MMIODlYVYVj POLICY EXP {A1M/DD(V VY Y) LIMITS GENERAL X LIABILITY EACH OCCURRENCE 1,000,000 A COMMERCIAL GENERAL LIABILITY IXIOCCUR DAMAGE TO RENTED PHEMISES (Ea nrrwrencel 3 1,000,000 CLAIMSMADE P-630-8193➢99A-TIL-11 12/1/2011 12/1/2012 AIEU ERF'Any one person) 10, 000 PERSONAL& AOV IN.IURV s 1,000,000 GENII. AGGREGATE GENERAL AGGREGATE e 2,000,000 POUGY X LIMIT APPLIES PRO. - 'pi PER: PRODUCTS • COMP/OP AGG 5 1, 000, 000 X L. a AUTOMOBILE X LIABILITY ANY AUTO COMBINED SINGLE LIMIT (Ea aLdeal) $ 1, 000 000 — ALL OWNED SCHEDULED BODILY INJURY (Po, person} 5 _ X AUTOS , X AUTOS ,P-810-57240497-TCT-11 ' 12/1/2011 12/1/2012 BODILY INJURY (Per accident)$ HIRED AUTOS AU OSWNED PFOPBRTY DAMAGE Pe, 2CCitllnQ "X Undeunsured E S X UMBRELLA LIAR EXCESSIIAB X OCCUR moorisl s2Gl EACH OCCURRENCE 5 5,000,000 A CLAIM$ -MADE 'X AGGREGATE ; 5,000,000 OLD RETENTO`JS 10,000 PSM -CUP-R193t399A-TIL-11 12/1/2011 12/1/2012 A WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY Y/N X WC STATU- OIH- 1'1F-1IS a PROPRETOR/PARTN III /EXECHTIVT. OFFICER/MEMEER EXCLUDED? IN III (Mandatory in N/A _Ell E.L. EACH ACCIDENT a 500, 000 NH) Il yes, eesrlbe ander YJ-U➢-8193R99-A-11 12/1/2011 12/1/2012 EL DISEASE EA EMPLOYEE S 500, 000 D DESCRIPTION OE OPERATIONS halo" E.1 DISEASE POLICY C Professional Liability 01E017332 12/1/2011 L2/1/2012 - 1i:ar Per Clam Aggregma 3 500_,000 $2, 000, 000 $2, 000, 000 DESCHIPI ION OF OPERATIONS /LOCATIONS / VEHICLES (Attach ACORD 101, Adai/ional Rema,'.s Schedule, if more spare i required) Re: A11 City of National City Projects The City of National City, its elected officials, officers, agents & employees are named as Additional Insureds on the above referenced liability policies with the exception of workers compensation & professional. liability. Waiver of Subrogation is applicable where required by written contract & allowed by law. CFRTIFIraTF Null nrD CELLATION City of National City c/o City Attorney's Office 1243 National City Blvd. National City, CA 91950-4301 ACORD 25 (2010/05) INS025 (20005)01 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUr0ORl7E0 RLPFILSENTATIVE Matias Ormaza/JERRY � © 1988-2010 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD 3 Policy Nurn?bor: P-630-8193B99A-TIL-11 OU}N35 COMMERCIAL GENERAL LIAF311_ITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. BLANKET ADDITIONAL INSURED - WRITTEN CONTRACTS (ARCHITECTS, ENGINEERS AND SURVEYORS) This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART 1. The following is added to SECTION II — WHO IS AN INSURED: Any person or organization that you agree in a "written contract requiring insurance" to include as an additional insured on this Coverage Part, but: a. Only with respect to liability for "bodily injury", "property damage" or "personal injury'; and b. If, and only to the extent that, the injury or damage is caused by acts or omissions of you or your subcontractor In the performance of "your work" to which the "written contract requiring insurance" applies. The person or organization does not qualify as an additional insured with respect to the independent acts or omissions of such person or organization. The insurance provided to such additional insured is limited as follows: c. In the event that the Limits of Insurance of this Coverage Part shown in the Declarations exceed the limits of liability required by the "written contract requiring Insurance", the in- surance provided to the additional insured shall be limited to the limits of liability required by that "written contract requiring insurance". This endorsement shall not increase the limits of insurance described in Section III — Limits Of Insurance. d. This Insurance does not apply to the render- ing of or failure to render any "professional services" or construction management errors or omissions. e. This Insurance does not apply to "bodily in- jury" or "property damage" caused by "your work" and included in the "products - completed operations hazard" unless the "written contract requiring insurance" specifi- cally requires you to provide such coverage for that additional insured, and then the insur- ance provided to the additional insured ap- CG D4 14 04 08 plies only to such "bodily injury' or "property damage" that occurs before the end of the pe- riod of time for which the 'written contract re- quiring insurance" requires you to provide such coverage or the end of the policy period, whichever is earlier. 2_ The following is added to Paragraph 4.a. of SEC- TION IV — COMMERCIAL GENERAL LIABILITY CONDITIONS: The insurance provided to the additional insured is excess over any valid and collodible "other in- surance", whether primary, excess, contingent or on any other basis, that is available to the addi- tional insured for a loss we cover. However, if you specifically agree in the "written contract requiring insurance" that this insurance provided to the ad- ditional insured under this Coverage Part must apply on a primary basis or a primary and non- contributory basis, this Insurance is primary to "other insurance" available to the addilional in- sured which covers that person or organization as a named insured for such loss, and we will not share with that "other insurance". But this insur- ance provided to the additional insured still is ex- cess over any valid and collectible "other insur- ance", whether primary, excess, contingent or on any other basis, that is available to the additional Insured when that person or organization is an additional insured under any "other insurance". 3. The following is added to SECTION IV — COM- MERCIAL GENERAL LIABIUTY CONDITIONS: Duties Of An Additional Insured As a condition of coverage provided to the addi- tional insured: a. The additional insured must give us written notice as soon as practicable of an "occur- rence" or an offense which may result in a claim. To the extent possible, such notice should include' ©2008 the iraveleis Companies, Inc -', e al 4 Policy Number: P-810-5724B497-TC'1'-11 COMMERCIAL AUTO THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. BUSINESS AUTO EXTENSION ENDORSEMENT This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unless modi- fied by the endorsement. GENERAL DESCRIPTION OF COVERAGE — This endorsement broadens coverage. However, coverage for any injury, damage or medical expenses described in any of the provisions of this endorsement may be excluded or limited by another endorsement to the Coverage Part, and these coverage broadening provisions do not apply to the extent that coverage is excluded or limited by such an endorsement. The following listing is a general cover- age description only. Limitations and exclusions may apply to these coverages. Read all the provisions of this en- dorsement and the rest of your policy carefully to determine rights, duties, and what is and is not covered. A. BROAD FORM NAMED INSURED B. BLANKET ADDITIONAL INSURED C. EMPLOYEE HIRED AUTO D. EMPLOYEES AS INSURED F. SUPPLEMENTARY PAYMENTS —INCREASED LIMITS F. HIRED AUTO — LIMITED WORLDWIDE COVERAGE — INDEMNITY BASIS G. WAIVER OF DEDUCTIBLE — GLASS PROVISIONS A. BROAD FORM NAMED INSURED The following is added to Paragraph A.1.. Who Is An Insured, of SECTION It — LIABILITY COV- ERAGE: Any organization you newly acquire or form dur- ing the policy period over which you maintain 50% or more ownership interest and (hat is not separately insured for Business Auto Coverage. Coverage under this provision is afforded only un- til the 180th day after you acquire or form the or- ganization or the end of the policy period, which- ever is earlier. B. BLANKET ADDITIONAL INSURED The following is added to Paragraph c. in A.1., Who Is An Insured, of SECTION II — LIABILITY COVERAGE: Any person or organization who is required under a written contract or agreement between you and that person or organization, that is signed and CA T3 53 06 09 H. HIRED AUTO PHYSICAL DAMAGE — LOSS OF USE — INCREASED LIMIT I. PHYSICAL DAMAGE — TRANSPORTATION EXPENSES — INCREASED LIMIT J. PERSONAL EFFECTS K. AIRBAGS L. NOTICE AND KNOWLEDGE OF ACCIDENT OR LOSS M. BLANKET WAIVER OF SUBROGATION N. UNINTENTIONAL ERRORS OR OMISSIONS executed by you before the "bodily injury" or "property damage" occurs and that is in effect during the policy period, to be named as an addi- tional insured is an "insured" for Liability Cover- age. but only for damages to which this insurance applies and only to the extent that person or or- ganization qualifies as an "insured" under the Who Is An Insured provision contained in Section II. C. EMPLOYEE HIRED AUTO 1. The following is added to Paragraph A.1., Who Is An Insured, of SECTION 11 — LI ABILITY COVERAGE: An "employee" of yours is an "insured" while operating an "auto" hired or rented under a contract or agreement in that "employee's" name, with your permission, while perfnrmi-e duties related to the conduct u ness 2009 the Travelers Companies, Inc_ Faye C: 1 includes the copyrighted material of Insurancs Services (-Ace, Inc v,ith its perm neon. 5 (3) and not in addition to such limit. Our duty to make such payments ends when we have used up the applicable limit of insurance in payments for damages, settlements or defense expenses. (2) This insurance is excess over any valid and collectible other insurance available to the "insured" whether primary, excess contingent or on any other basis. This insurance is not a substitute for re- quired or compulsory insurance in any country outside the United States, its ter- ritories and possessions, Puerto Rico and Canada. You agree to maintain at required or compulsory insurance in any such coun- try up to the minimum limits required by local law. Your failure to comply with compulsory insurance requirements will not invalidate the coverage afforded by this policy, but we will only be liable to the same extent we would have been liable had you complied with the compulsory in- surance requirements. (4) It is understood that we are not an admit- ted or authorized insurer outside the United States of America, its territories and possessions, Puerto Rico and Can- ada. We assume no responsibility for the furnishing of certificates of insurance, or for compliance in any way with the laws of other countries relating to insurance. G. WAIVER OF DEDUCTIBLE — GLASS The following is added to Paragraph D., Deducti- ble, of SECTION III — PHYSICAL DAMAGE COVERAGE: No deductible for a covered "auto" will apply to glass damage if the glass is repaired rather than replaced. H. HIRED AUTO PHYSICAL DAMAGE — LOSS OF USE — INCREASED LIMIT The following replaces the last sentence of Para- graph A.4.b., Loss Of Use Expenses, of SEC- TION III — PHYSICAL DAMAGE COVERAGE: However, the most we will pay for any expenses for loss of use is 565 per day, to a maximum of $750 for any one "accident". CA T3 53 06 09 K. L. COMMERCIAL AUTO I. PHYSICAL DAMAGE — TRANSPORTATION EXPENSES — INCREASED LIMIT The following replaces the first sentence in Para- graph A.4.a., Transportation Expenses, of SEC- TION III — PHYSICAL DAMAGE COVERAGE: We will pay up to $50 per day to a maximum of $1,500 for temporary transportation expense in- curred by you because of the total theft of a cov- ered "auto" of the private passenger type- J- PERSONAL EFFECTS The following is added to Paragraph A.4., Cover- age Extensions, of SECTION III.— PHYSICAL DAMAGE COVERAGE: Personal Effects We will pay up to $400 for "loss" to wearing ap- parel and othor personal effects which are: (1) Owned by an "insured"; and (2) In or on your covered "auto". This coverage applies only in the event of a total theft of your covered "auto". No deductibles apply to this Personal Effects coverage. AIRBAGS The following is added to Paragraph B.3., Exclu- sions, of SECTION III — PHYSICAL DAMAGE COVERAGE: Exclusion 3.a. does not apply to "loss" to ono or more airbags in a covered "auto" you own that in- flate due to a cause other than a cause of "loss" set forth in Paragraphs A.1.b. and A.1.c., but only: a. b. c. if that "auto" is a covered "auto" for Compre- hensive Coverage under this policy; The airbags are not covered under any war- ranty; and The airbags were not intentionally inflated. We will pay up to a maximum of $1,000 for any one "loss". NOTICE AND KNOWLEDGE OF ACCIDENT OR LOSS The following is added to Paragraph A.2.a., of SECTION IV — BUSINESS AUTO CONDITIONS: Your duty to give us or our authorized representa- tive prompt notice of the "accident" or "loss" ap- plies only when the "accident" or 'loss" Ls to: (a) You (if you are an individual); CO 2009 The Travelers Companies, Inc. rage 3 u; Includes the copyrighted malarial of Insurance Services Office, Inc. with its permission. 6 ANY PERSON OR ORGANIZATION FOR WHICH THE NAMED INSURED HAS AGREED BY WRITTEN CONTRACT EXECUTED PRIOR TO LOSS TO FURNISH THIS WAIVER. DATF nc iccu,. ST ASSIGN' TrAVELERS? WORKERS COMPENSATION AND EMPLOYERS LIABILITY POLICY ENDORSEMENT WC 99 03 76 (00) - 001 POLICY NUMBER: PJ-UB-8193R99-A-11 WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT - CALIFORNIA (BLANKET WAIVER) We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against the person or organization named in the Schedule. You must maintain payroll records accurately segregating the remuneration of your employees while engaged in the work described in the Schedule. The additional premium for this endorsement shall be 0 . mium otherwise due on such remuneration. Schedule % of the California workers' compensation pre - Person or Organization Job Description CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: January 24, 2012 AGENDA ITEM NO. 8 EM TITLE: Resolution of the City Council of the City of National City authorizing the acceptance of the Children Exposed to Domestic Violence (CEDV) Specialized Response Program Grant for two additional years in the amount of $350,000.. PREPARED BY: Lt. Keith Fifield DEPARTMENT: Police PHONE: 619-336-4514 APPROVED BY: EXPLANATION: On May 19th, 2009, the City of National City passed a resolution accepting the Children Exposed to Domestic Violence (CEDV) Specialized Response Program grant award for $200,000 each year for three years, for a total of $600,000. The three year funding ended on September 30, 2011. The State agency that administrates the CEDV grant, Cal-EMA, has offered National City an additional two years of funding at $175,000 each year for a total of $350,000 to continue the program. On November 28, 2011, the National City Police Department was notified that funding was approved and awarded for the 2011-2012 year in the amount $175,000. Cal-EMA also notified us that funding is extended to California Justice Act (CJA) grant recipients for a fifth year. This resolution would authorize formal acceptance of the award for 2011-2012 in the amount of $175,000 and authorize application and acceptance for a fifth year in 2012-2013 if continued funding for (CJA) programs is in fact made available. The awarded 2011-2012 grant F"11 04 8608 covers the period of October 1, 2011 to September 2012. Cal-EMA did not make award ifications until the end of November 2011 so these funds will cover the costs of the program retroactive to .. ober 1, 2011. 1' FINANCIAL STATEMENT: ACCOUNT NO. 290-411-629- ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Approve the Resolution BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: 11-2012 (EV11 04 8608) grant award letter. Lu 1-2012 (EV11 04 8608) RFA application and budget documents. Cal-EMA Memo offering extension of funding cycle to five years for CJA funded programs. RESOLUTION NO. 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE ACCEPTANCE OF A CHILDREN EXPOSED TO DOMESTIC VIOLENCE SPECIALIZED RESPONSE PROGRAM GRANT AWARD FOR TWO ADDITIONAL YEARS IN THE TOTAL AMOUNT OF $350,000 WHEREAS, the National City Police Department applied for and was granted a Children Exposed to Domestic Violence (CEDV) grant through the State of California, which provides up to $175,000 a year for two years for a total of $350,000; and WHEREAS, the grant requires that the Police Department subcontract with the South Bay Community Services to better serve the needs of young victims of domestic violence. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the acceptance of a Children Exposed to Domestic Violence grant through the State of California, which provides up to $175,000 a year for two years for a total of $350,000. PASSED and ADOPTED this 24th day of January, 2012. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney Ron Morrison, Mayor EDMUND G. BROWN JR. GOVERNOR November 28, 2011 Keith Fifield, Lieutenant National City, City of 1200 National City Boulevard National City, CA 91950 Cal E. CALIFORNIA EMERGENCY MANAGEMENT AGENCY Subject: NOTIFICATION OF APPLICATION APPROVAL Children Exposed to Domestic Violence Response Program Award #: EV 11 04 8608, Ca1 EMA ID: 073-50398 Dear Lt. Fifield: MIKE DAYTON ACTING SECRETARY Congratulations! The California Emergency Management Agency (Cal EMA) has approved your application in the amount of $ 1 75,000, subject to Budget approval. A copy of your approved subgrant is enclosed for your records. Ca1 EMA will make every effort to process payment requests within 60 This subgrant is subject to the Cal EMA Recipient Handbook. You are familiarize yourself with the Ca1 EMA Recipient Handbook, which can EMA's website at www.calema.ca.gov. days of receipt. encouraged to read and be viewed on Cal Any funds received in excess of current needs, approved amounts, or those found owed as a result of a close-out or audit, must be refunded to the State within 30 days upon receipt of an invoice from Ca1 EMA. Should you have questions on your subgrant, please contact your Program Specialist. PSVS Grant Processing Enclosure c: Recipient's file 3650 SCHRIEVER AVENUE • MATHER, CALIFORNIA 95655 PUBLIC SAFETY AND VICTIM SERVICES PROGRAMS DIVISION TELEPHONE: (916) 324-9200 • FAX: (916) 324-8554 EDMUND G BROWN JR GOVERNOR MIKE DAYTON ACTING SECRETARY 3650 SCHRIEVER AVENUE MATHER, CA 95655 CALIFORNIA EMERGENCY MANAGEMENT AGENCY PHONE (916) 323-1569 FAX (916) 327-5674 Application Cover Sheet RFA PROCESS CHILDREN EXPOSED TO DOMESTIC VIOLENCE SPECIALIZED RESPONSE PROGRAM Submitted by: Lt. Keith Fifield National City Police Department City of National City 1200 National City Blvd. National City, CA 919150 619-336-4514 (Cal EMA Use Only) Cal FMA #! JI J(D FIPS# �L171 CFDA# Grant # L7r)l'79e 7Ox CALIFORNIA EMERGENCY MANAGEMENT AGENCY„ h GRANT AWARD FACE SHEET (Cal EMA 2-101) ? I� AUG ?Oft The California Enerbency Management Agency, hereafter designated Cal EMA, hereby makes a Grant Awardj funds to the following: L, 1. Grant Recipient: City of National City in the amount and for the purpose and duration set forth in this Grant Award. 2. Implementing Agency: National City Police Department 2h. State Senate District#: 40th 2c. State Assembly District#: 80th 2d. Location of Project: City of National City 3. Disaster/Program Title H Z17 �av 2a. Congressional District: 2e. Congressional DistrictlsyJ 44th Children Exposed to Domestic Violence SRP 4. Performance Period .1'/k12011 to 44th 09/30/2012 Grant Yearo4Fund Source A. State B. Federal C. Total D. Cash Match E. In -Kind Match F. Total Match G. Total Project Cost 2011 5 CJAO 175,000 $0 $175,000 Select 6 Select $0 $0 Select 7 Select $0 $0 Select 8 Select $0 $0 Select 9 Select $0 SO to. TOTALS $0 S175,000 S175,000 $O $0 SO me Total Project Cost. $175,000 11. This Grant Award consists of this title page, the application for the grant, which is attached and made a part hereof, and the Assurances/Certifications which are being submitted. I hereby certify I am vested with the authority to enter into this Grant Award Agreement, and have the approval of the City/County Financial Officer, City Manager, County Administrator, Governing Board Chair, or Approving Body. The Grant Recipient certifies that all funds received pursuant to this agreement will be spent exclusively on the purposes specified in the Grant Award. The Grant Recipient signifies acceptance of this Grant Award and agrees to administer the grant project in accordance with the Grant Award as well as all applicable state and federal laws, audit requirements, federal program guidelines, and Cal EMA policy and program guidance. The Grant Recipient further agrees that the allocation of funds may be contingent on the enactment of the State Budget. 12. Federal DUNS Number 072494073 13. Federal Employer ID Number 956000749 14. Official Authorized to Sign for Applicant/Grant Recipient: Name: Keith Fifield Telephone: (619) 336-4514 (area code) Payment Mailing Adds Signature Title. FAX: (619) 336-4525 .pares code) T2 3 Nationar�ty Lieutenant Email: kfifield@nationalcityca.gov City: National City Zip + 4. 91950-4302 Date: 07/09/2011 :iIFOR C3i E1NA.USE ONLY] ( ., 1 here certify mown upon personal knowledge that budgeted funds are available for the period and purposes of this expenditure st• ted above. e.CC ' 12.1\,\ //izz/i Cal EMA Fiscal Officer Date Cal EMA Secrenee) Date Yrl Chapter: 2011-12 / 33 PCA No_ 18221 Item. 0690-102-0890 Fed Cat. 8 : 93.643 Component: 40.20. 902 Program:Children Exposed to Domestic Violence Specialized Response Program Fund- Federal Trust Match Req.: none /7 " 4j4GI Project No.. 11 CIAO Amount S / L, Grant ard Face Sheet — Cal EMA 2-101 (Revised 01/11) (Cal EMA Use Only) ;a! cMA # FIPS# CFDA# Grant # CALIFORNIA EMERGENCY MANAGEMENT AGENCY GRANT AWARD FACE SHEET (Cal EMA 2-101) he California Emergency Management Agency, hereafter designated Cal EMA, hereby makes a Grant Award of funds to the following: 1. Grant Recipient: City of National City in the amount and for the purpose and duration set forth in this Grant Award 2. Implementing Agency: National City Police Department 2a. Congressional District: 44th 2b. State Senate District#: 40th 2c. State Assembly District#: 80th 2d. Location of Project: City of National City 2e. Congressional District(s): 44th 3. DisasterfProgram Title Children Exposed to Domestic Violence SRP 4. Performance Period 01/10/2011 to 09/30/2012 Grant Year Fund Source A. State B. Federal C. Total D. Cash Match E. In -Kind Match F. Total Match G. Total Project Cost 2012 5. CJA1 175,000 f fsT�" 3 $0 $175,000 Select c- Select $0 $0 Select , Select i- ., $0 $0 Select 8_ Select � �-t ��. � �= $0 $0 Select 9- Select $0 $0 10. TOTALS $0 $175,000 $175,000 $0 $0 $0 rcc. Total Project Cost $175,000 11. This Grant Award consists of this tile page, the application for the grant, which is attached and made a part hereof, and the AssuranceslCertifications which are being submitted. I hereby certify I am vested with the authority to enter into this Grant Award Agreement, and have the approval of the City/County Financial Officer, City Manager, County Administrator, Governing Board Chair, or Approving Body. The Grant Recipient certifies that all funds received pursuant to this agreement will be spent exclusively on the purposes specified in the Grant Award. The Grant Recipient signifies acceptance of this Grant Award and agrees to administer the grant project in accordance with the Grant Award as well as all applicable state and federal laws, audit requirements, federal program guidelines, and Ca§ EMA policy and program guidance. The Grant Recipient further agrees that the allocation of funds may be contingent on the enactment of the State Budget. 12 Federal DUNS Number 072494073 14. Official Authorized to Sign for Applicant/Grant Recipient: Name: Keith Fifield Telephone: 13. Federal Employer ID Number 956000749 Title: Lieutenant =116'19) 336-4525 Email: kfifield@nationalcityca.gov ,(area code) Payment Mailing AddrCity_ Signature National City 7iP' 4: 91950-4302 Date: 07/09/20 1 1 .11fti1,-ENYA;ltSE6tlf eZiff " :. A1,.M*17' I hereby certify upon my own personal knowledge that budgeted funds are available for the period and purposes of this expenditure stated above. Cal EMA Fiscal Officer Date Car EMA Secretary(or designee) Date Grant Award Face Sheet — Cal EMA 2-101 (Revised 01/11) PROJECT CONTACT INFORMATION Recipient City of National City Grant Number [FOR CALEMA USE ONLY] Provide the name, title, address, telephone number, and e-mail address for the project contacts named below. NOTE: If you use a PO Box address, a street address is also required for package delivery and site visit purposes. 1 The Project Director for the project: Name: Keith Fifield Titie: Lieutenant Telephone #: 619-336-4514 Fax#: 619-336-4525 Email Address: kfifield@ nationalcityca.gov Address/City/Zip: 1200 National City Blvd. National City, CA 91950 2. The Financial Officer for the project: Name: Arnold Ocana Title: Accountant Telephone #: 619-336-4342 Fax#: 619-336-4349 Email Address: aocana@nationalcityca.gov Address/City/Zip: 1243 National City Blvd. National City, CA 91950 3. The person having Routine Programmatic responsibility for the project: Name: Jim White Title: Corporal Telephone #: 619-336-4424 Fax#: 619-336-4525 Email Address: jwhite@nationalcityca.gov Address/City/Zip: 1200 National City Blvd. National City CA 91950 4. The person having Routine Fiscal Responsibility for the project: Name: Ronni Zengota -rite: Operations Assistant Telephone #: 619-336-4516 Fax#: 619-336-4525 Email Address: rzengota@nationalcityca.gov Address/City/Zip: 1200 Natioinal City Blvd. National City, CA 91950 5. The Executive Director of a nonprofit organization or the Chief Executive Officer (i.e., chief of police, superintendent of schools) of the implementing agency: Name: Adolfo Gonzales Titie: Chief of Police Telephone #: 619-336-4432 Fax#: 619-336-4525 Email Address: agonzates@nationalcityca.gov Address/city/Zip: 1200 National City Blvd. National City, CA 91950 6. The Official Designated by the Governing Board to enter into the Grant Award Agreement for the city/county or Community -Based Organization, as stated in Block 14 of the Grant Award Face Sheet: Name: Keith Fifield Title: Lieutenant Telephone #: 619-336-4514 Fax#: 619-336-4525 Address/City/Zip: 1200 National City Blvd. National City, CA 91950 7. The chair of the Governing Body of the recipient: Name: Chris Zapata Email Address: Title: City Manager kfifield@nationalcityca.gov Telephone #: 619 336 424D Fax#: 619 336 4240 Email Address: czapata@nationalcityca.gov Address/City/Zip: 1243 National City Blvd. National City, CA 91950 Project Contact Information Cal EMA 2-102 (Revised 1/2011) SIGNATURE AUTHORIZATION Gant Recipient City of National City Implementing Agency: Grant Award #: National City Police Department *The Project Director and Financial Officer are REQUIRED to sign this form. *Project Director. Keith Fifield Signature: Date: Jul 16, 2011 "Financial Officer. Arnold Ocana Signature: Date: The following persons are authorized to sign for the The following persons are authorized to sign for the Project Director Sigture Manuel Rodriguez Jim White Name Signature Name Signature Financial Officer Si. nature Ronni Zengota Name Signature Name Signature Name Signature Name Name Signature Signature Name Name Signature Authorization CaIEMA 2-103 (Rev. 2112009) CERTIFICATION OF ASSURANCE OF COMPLIANCE Children's Justice Act Grant Programs 7 he apfI cant .lust complete a Certification of Assurance of Compliance-CJA (Cal EMA 2-104c), which includes details regarding Federal Grant Funds, Equal Employment Opportunity Program (EEOP), Drug Free Vforkpiace L,on,pliance, California Environmental Quality Act, Lobbying, Debarment and Suspension requirements, Proof of Authority from City Council/Governing Board, and the special conditions for grand awards with Children's Justice Act Fund. The applicant is required to submit the necessary assurances and documentation before finalization of the Grant Award Agreement. In signing the Grant Award Face Sheet, the applicant formally notifies Cal EMA that the applicant will comply with all pertinent requirements. Resolutions are no longer required as submission documents. Cal EMA has incorporated the resolution into the Certification of Assurance of Compliance, Section VI, entitled, 'Proof of Authority from City Council/Governing Board." The Applicant is required to obtain written authorization (original signature) from the City Council/Governing board that the official executing the agreement is, in fact, authorized to do so, and will maintain said written authorization on file and readily available upon demand. This requirement does not apply to state agencies. Certification of Assurance of Compliance — CJA Cal EMA 2-104c (Revised 1/2011) 1 Title: Address: Phone: Email: CERTIFICATION OF ASSURANCE OF COMPLIANCE Children's Justice Act Grant Programs Lt. •. !th Fifeld (officio! authorized to sign grant award, same person as Section 14 on Grant Award Face Sheet) RECIPIENT: City of National City IMPLEMENTING AGENCY: PROJECT TITLE: hereby certify that National City Police Department Children Exposed to Domestic Violence (CEDV) Special Response Program is responsible for reviewing the Grant Recipient Handbook and adhering to all of the Grant Award Agreement requirements (state and/or federal) as directed by Cal EMA including, but not limited to, the following areas: I. Federal Grant Funds Recipients expending $500,000 or more in federal grant funds annually are required to secure an audit pursuant to OMB Circular A-133 and are allowed to utilize federal grant funds to budget for the audit costs. See Section 8000 of the Recipient Handbook for more detail. ❑✓ The above named recipient receives $500,000 or more in federal grant funds annually. ❑ The above named recipient does not receive $500,000 or more in federal grant funds annually. Equal Employment Opportunity — (Recipient Handbook Section 2151) It is the public policy of the State of California to promote equal employment opportunity by prohibiting discrimination or harassment in employment because of race, religious creed, color, national origin, ancestry, disability (mental and physical) including HIV and AIDS, medical condition (cancer and genetic characteristics), marital status, sex, sexual orientation, denial of family medical care leave, denial of pregnancy disability leave, or age (over 40). Cal EMA-funded projects certify that they will comply with all state and federal requirements regarding equal employment opportunity, nondiscrimination and civil rights. Please provide the following information: Equal Employment Opportunity Officer: Human Resources Director Stacey Stevenson 140 E. 12th St. Suite B, National City, CA 919150 619-336-4308 sstevenson@nationalcityca.gov Certification of Assurance of Compliance — CJA Cal EMA 2-104c (Revised 1/2011) 2 1I1. Drug -Free Workplace Act of 1990 — (Recipient Handbook, Section 2152) The State of California requires that every person or organization awarded a grant or contract shall certify it will provide a drug -free workplace. IV. California Environmental Quality Act (CEQA) — (Recipient Handbook, Section 2153) The California Environmental Quality Act (CEQA) (Public Resources Code, Section 21000 et seq.) requires all Cal EMA funded projects to certify compliance with CEQA. Projects receiving funding must coordinate with their city or county planning agency to ensure that the project is compliance with CEQA requirements. V. Lobbying — (2006 Recipient Handbook Section 2154) Cal EMA grant funds, grant property, or grant funded positions shall not be used for any lobbying activities, including, but not limited to, being paid by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the making of any federal grant, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal grant or cooperative agreement. VI. Debarment and Suspension — (Recipient Handbook Section 2155) (This applies to federally funded grants only.) Cal EMA-funded projects must certify that it and its principals are not presently debarred, suspended, proposed for debarment, declared ineligible, sentenced to a denial of federal benefits by a state or federal court, or voluntarily excluded from covered transactions by any federal department of agency. VII. Proof of Authority from City Council/Governing Board The above -named organization (applicant) accepts responsibility for and will comply with the requirement to obtain written authorization from the city council/governing board in support of this program_ The applicant agrees to provide all matching funds required for said project (including any amendment thereof) under the Program and the funding terms and conditions of Cal EMA, and that any cash match will be appropriated as required. It is agreed that any liability arising out of the performance of this Grant Award Agreement, including civil court actions for damages, shall be the responsibility of the grant recipient and the authorizing agency. The State of California and Cal EMA disclaim responsibility of any such liability. Furthermore, it is also agreed that grant funds received from Cal EMA shall not be used to supplant expenditures controlled by the city council/governing board. The applicant is required to obtain written authorization from the city council/governing board that the official executing this agreement is, in fact, authorized to do so. The applicant is also required to maintain said written authorization on file and readily available upon demand. Certification of Assurance of Compliance — CJA Cal EMA 2-104c (Revised 1/2011) 3 I. Special Conditions for Grand Awards with Children's Justice Act Fund !arai grant funds shall not be used to support inherently religious activities such as religious instruction, v.,orship, or proselytization. Therefore, organizations must take steps to separate, in time or location, their inherently religious activities from the services funded under this program. Regulations pertaining to the prohibition of Federal funds for inherently religious activities can be found on the HFIS website at: http://www. os.dhhs.gov/fbci/waisgate2l . pdf. Federal grant funds provided under this award may not be used by the recipient to support lobbying activities in influence proposed or pending Federal or State legislation or appropriations. This prohibition is related to the use of Federal grant funds and is not intended to affect an individual's right or that of any organization, to petition Congress or any other level of Government, through the use of other resources. (See 45 CFR Part 93.) In accordance with Public Law 103-333, the "Department of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act of 1995," the following provisions are applicable to this grant award: Section 507: "Purchase of American -Made Equipment and Products — it is the sense of the Congress that, to the greatest extent practicable, all equipment and products purchased with funds made available in this Act should be American -made." In accordance with Part C of Public Law 103-227, the "Pro -Children Act of 1994," smoking may not be permitted in any portion of any indoor facility owned or regularly used for the provision of health, day are, education, or library services to children under the age of 18, if the services are funded by Federal programs wither directly or through State or local governments. Federal programs include grants, cooperative agreements, loans and loan guarantees, and contracts. The law does not apply to children's services provided in private residences, facilities funded solely by Medicare or Medicaid funds, and portions or facilities and used for inpatient drug and alcohol treatment. Certification of Assurance of Compliance — CJA Cal EMA 2-104c (Revised 1/2011) All appropriate documentation must be maintained on file by the project and available for Cal EMA or public scrutiny upon request. Failure to comply with these requirements may result in suspension of payments under the grant or termination of the grant or both and the Recipient may be ineligible for award of any future grants if the Cal EMA determines that any of the following has occurred: (1) the Recipient has made false certification, or (2) violates the certification by failing to carry out the requirements as noted above. CERTIFICATION I, the official named below, am the same individual authorized to sign the Grant Award Agreement [Section 14 on Grant Award Face Sheet], and hereby swear that I am duly authorized legally to bind the contractor or grant recipient to the above described certification. I am fully aware that this certification, executed on the date and in the county below, is made under penalty of perjury under the laws of the State oof aliforn a Authorized Official's Signature: Authorized Official's Typed Name: Keith Fifield Authorized Official's Title: Lieutenant Date Executed: July 9, 2011 Federal Employer ID #: 956000749 Federal DUNS # Current Central Contractor Registration Expiration Date: 072494073 Executed in the City/County of: City of National City / County of San Diego AUTHORIZED BY: (not applicable to State agencies) ❑ City Financial Officer ❑✓ City Manager ❑ Governing Board Chair Signature: Typed Name: Title: ❑ County Financial Officer ❑ County Manager Chris Zapata City Manager, City of National City Certification of Assurance of Compliance — CJA Cal EMA 2-104c (Revised 1/2011) 5 Applicant: National City Police Dept. Grant Number: Project Narrative Problem Statement (11 Pages): The program will take place in National City, located in tie southwestern portion of San Diego County with a population of 63,537 (59% Hispanic, 17% Asian & PI, 15% White, 6% African -American, and 3% Other). Situated less than 10 miles from the Mexican border, the city is home to many first -generation immigrant families with limited resources and a minimal command of English, making it difficult to find secure employment and access community resources. The City's average household size is 3.46 (the county's highest), and 27% of the population is aged 18 or less. In 1992, the city was listed as California's third poorest city in per capita income and the thirteenth poorest in the nation. The average salary for jobs in National City is $21,244, and the median household income is S29,826. The city's unemployment rate is 10.7% (up from 7.8% in 2004). In 2006, National City's violent crime rate of 8.25 per 1,000 population was the county's highest, and represents a 15°l0 increase from the previous year. National City's domestic violence rate of 23 per 1,000 households is the third highest in the county, after Oceanside and Chula Vista (SANDAL, 2008). National City Police Department (NCPD), South Bay Community Services (SBCS), and the County of San Diego Child Welfare Services (CWS) have worked collaboratively on the Domestic Violence Response Team (DVRT) since 1999. SBCS' DVRT Advocate, co -located at the Police Department, provides immediate on -site advocacy during 911 calls for domestic violence on a 24/7 basis (on scene with an Officer within 1 hour). On -site services include crisis intervention, safety planning, and a needs assessment for the adult victim and any children present. if needed, the Advocate will refer the victims to other appropriate services that have been identified as necessary during the assessment, such as shelter and counseling. If the victim needs shelter immediately, the Advocate assists in the arrangements. CWS is called if a child has been abused or neglected. Follow-up home visit the next day include intensive Project Narrative — CaIEMA 2-108 (Revised 2/1/2009) 1 Applicant National City Police Dept. Grant Number: assessments to identify any needs for services, such as: Comprehensive client centered, bilingual, culturally appropriate case assessment and coordination; short-term confidential shelter and long-term transitional housing (up to 18 months), trauma - informed individual and group counseling; emergency food, clothing, and transportation; TRO assistance and court accompaniment, therapeutic preschool; and rental assistance. In 07-08, the DVRT Advocate provided immediate crisis response to 27 DV calls, and provided non -emergency intervention in an additional 14 cases. These numbers are low, given that NCPD responded to 202 calls for domestic violence in 2007, and has responded to 252 calls since March 2008 (a 25% increase in domestic violence calls so far this year). NCPD and SBCS intend to increase the number of DVRT calls to 100, of which approximately 66 will involve children (two-thirds of cases). NCPD has 92 officers, 1/3 of these hired during the last few years. Most of the new officers have not yet been trained to utilize the DVRT Advocate when responding to DV calls, and NCPD and SBCS are currently implementing strategies, such as additional roll call trainings, to improve the DVRT call rate. However, given the high number of calls that involve children, the existing DVRT staff cannot adequately address the needs of all of the children. In addition, many of these families have contact with multiple services, such as the region's School Resource Officers (SROs) and our school/community-based Juvenile Diversion program and Community Assessment Team, as well as the DVRT. This contact is not always effectively coordinated, so that families may be interacting with more than one case manager or even receiving duplicated services. The proposed Children Exposed to Domestic Violence Specialized Response Program (CEDV-SRP) will address these programmatic weaknesses. SBCS is strongly committed to breaking the intergenerational cycle of violence, and has extensive experience addressing the special needs of children traumatized by domestic violence and re-establishing positive parenting relationships between these Project Narrative — CaIEMA 2-108 (Revised 2/1/2009) 2 Applicant: National City Police Dept. Grant Number: chi'dren and their non -offending parent whenever possible. The CEDV-SRP will enhance families' access to SBCS' range of age -appropriate therapeutic, developmental, and educational activities for children exposed to DV, including shelter, group & individual counseling, therapeutic preschool, and a range of family supports. 2. Plan and Implementation ( 2 paged: The CEDV-SRP will be a new component of the DVRT. The DVRT will be expanded to include an additional DV Advocate and Police Officer who will join the DVRT to address the immediate and longer -term needs of any child who has been exposed to DV. Required qualifications are (all require a clean driving license and background clearance for working with minors.): • Law Enforcement Officer: Graduation from high school or possession of 12th grade G.E.D. certificate, and completion of Basic Police Academy. • DV Advocate: Minimum one year experience in child, youth, and family services field, preferably in a community based or neighborhood service organization. Experience in the areas of individual, group, and 'family counseling, outreach, community education and development, advocacy, and case management Ability to work with a diverse cultural population. B.A. or B.S. degree, (M.A. or M.S.W. preferred) in social work, psychology, or related field, experience may be substituted. 40 Hour DV training. Bilingual preferred. The DV Advocate and Police Officer are co -located at the National City Police Department and communicate daily in person, by email and telephone. I addition they attend regular meetings and training together. CWS does not want to commit a worker to the program and did not want receive grant funds. As part of an informal collaboration between Child Welfare Services and NCPD, a social worker has been stationed here Project Narrative — CaFEMA 2-108 (Revised 2/1/2009) 3 Applicant National City Police Dept. Grant Number: one day per week. Her name is Jenni Olson and her desk is located in the Community Services office. She will be here Wednesdays from approximately 0830 to 1200 hours. Although Jenni will only be at NCPD a few hours each week, she wants you to know that she is available by telephone Monday through Friday until about 1730 hours. She can be reached at her cell phone [(619) 419-6038] or her CWS desk [(619) 336-5863]. If we need to contact a social worker from CWS to evaluate a situation after hours or on the weekend then we must use the Child Abuse Hotline at (800) 344-8000. Jenni is offering to assist us in our investigations in several ways: ® Making child abuse reports to the Child Abuse Hotline. ® If you are on a call that may involve removing children from the home you can call Jenni. She will either respond to the scene to assist or get another worker to respond. O She can search the CWS database to assist Detectives/Officers in determining who resides at a particular address as well as obtaining other pertinent information about the family living there. • She will soon have access to the County's Cal -Win program (welfare, food stamps, Medi-Cal) and can provide you with information that may help in your investigations. • She can assist Detectives/Officers in obtaining reports from CWS. Objectives and Activities (7 Pages): 1. Ensure the CEDV-SRP team receives specialized DV training in their own discipline. During Advanced Officer Training every two years, officers are trained to complete DV criminal investigations, including interviewing, photographing, and collecting evidence. Project Narrative — CalEMA 2-108 (Revised 2/1/2009) 4 Applicant: National City Police Dept. Grant Number: A" SBCS staff are required to attend at least 24 hours of training per year that is appropriate and specific to their client caseload and are critical for working with children, and families in a community setting, including Child Abuse Reporting, Cultural Competency- and Sensitivity, Trauma -informed Approach, and Confidentiality. DVRT Advocates must meet the definition of DV Counselor as defined in the California Evidence Code, Section 1037.1(a). Training for any new hires is scheduled within 30 days of their hiring. SBCS is committed to creating a violence free environment for all women, men, children, and families and has developed a strong training curriculum that offers the knowledge and skills to provide culturally sensitive counseling, referrals, and advocacy for the survivors of DV and their children. CWS Social Workers receive 6 weeks of initial training covering a variety of topics when they are first hired, as well as ongoing training on a variety of topics including DV. The county has a DV protocol that all social workers are trained to follow. In addition to the CEDV Officer, National City PD is sending several personnel to training, including police officers, detectives and the SBCS Advocates over the course of this project that are involved directly with CEDV programs and training and 1 or DV response and investigations. Cal EMA staff during earlier EV projects encouraged our project personnel to attend as much training and conferences as possible related to the program of Children Exposed to DV, and to train others involved in the DV process, so it has been a priority. 2. Ensure the CEDV-SRP team are cross -trained on the identification of each discipline's roles and procedures related to children exposed to domestic violence, and each discipline's limitations in responding to children exposed to domestic violence. All CEDV-SRP staff (Police Officers, Social Workers, and DV Advocates), including regular and on -call staff and day and night workers, will participate quarterly cross training, including roll call training for all Police Officers, that will supplement the cross- trainings already provided by the DVRT. Topics will include the effects of witnessing DV, Project Narrative — Ca]EMA 2-108 (Revised 2/1/2009) 5 Applicant: National City Police Dept Grant Number signs of child abuse and neglect, and guidelines for child witness interviews, as well as each discipline's roles and procedures related to children exposed to DV, and each discipline's limitations in responding to these children. 3. Develop a CEDV-SRP protocol specific to the law enforcement agency on the team. San Diego County has developed a countywide protocol for law enforcement response to DV. In 2007, a multi -agency committee revised and updated the protocol to reflect changes in the law and specifically address the protection of children exposed to DV. The protocol includes the following policy statements: "Children Exposed to DV should be considered as separate victims in DV incidents"; and, "Training will be provided regularly to enhance law enforcement's response to DV and children exposed to DV". It includes a section on Children exposed to DV with guidelines for child witness interviews. The MDT will review the DVRT protocol to incorporate additional child - focused items, based on the Attorney General's CEDV protocol. 4. Develop a comprehensive computerized database for the purpose of data collection and information sharing. The DVRT already maintains a comprehensive computerized database for the purpose.. of data collection and information sharing which documents all of the information required in the RFP. NCPD will be creating and implement a Law Enforcement Database using Mircrosoft Access and hardware purchased with 2009 CEDV-SRP funds. 5. A child protective services professional will attempt to provide immediate on - site response to domestic violence calls where children are present in the targeted service area. The Child Abuse Hotline will assess all hotline reports for an appropriate response time, and Immediate Response Service (IRS) referrals will be assigned for response within 24 hours. CWS South Region will evaluate the IRS and non -IRS referrals for immediate on -site response to DV calls where children are present. The Social Worker will investigate child abuse and neglect allegations by interviewing and counseling parents, children, and adolescents, analyzing information and data collected, determining degree Project Narrative — CaIEMA 2-108 (Revised 2/1/2009) 6 Applicant: National City Police Dept. Grant Nurnber: of danger and risk of future abuse and neglect, determining if removal of the child from the home is necessary, and conducting time sensitive investigations per court order or in compliance with State of California law. If the CVVS Social Worker determines that a cl hied needs to be removed from his/her home, they will arrange for an appropriate placement and refer family members to appropriate services. 6. A domestic violence advocate will attempt to provide immediate on -site response to domestic violence calls where children are present in the targeted service area. DV Advocates stationed at the NCPD will provide immediate on -site advocacy, and will be on scene with an Officer within 1 hour (usually within 20 minutes). DV Advocates conduct crisis intervention, safety planning, and assessment. If needed, the DV Advocate will refer the adult victim and/or child to other appropriate services as identified during the assessment, such as shelter or counseling. If shelter is needed immediately, the DV Advocate will assist in the arrangements. In cases in which DV Advocates are not called to the scene, NCPD will provide the DV Advocates with a copy of the police report, and the DV Advocate will immediately attempt to make contact to offer advocacy and follow- up services. The DV Advocate will also coordinate with program staff of any other program that the child is involved in. 7. Law enforcement officers will follow-up with the domestic violence adult victims and children by way of safety patrols or similar activities. Law enforcement officers will provide follow-up services such as neighborhood patrols if appropriate, as well as informing the School Resource Officers at the child's school about the situation so that the SRO is aware of the situation and can offer support to the child/family. 8. A child protective services professional and/or domestic violence advocate will attempt to make follow-up contact with the child and family and refer the family to relevant service providers for follow-up services. The DV Advocate and CWS Social Worker will work together to provide follow-up services for the child and family that address any needs identified by the assessment. Follow-up home visits made the next day will include more intensive assessments and Project Narrative — CaIEMA 2-108 (Revised 2/1/2009) 7 Applicant: National City Police Dept. Grant Number: identify any need for services. If the adult victim does not wish to make a follow-up appointment, the DV Advocate or CWS Social Worker will still attempt to make contact the following day and in the ensuing weeks will make several phone calls to ensure the children and adult victim are safe and aware of available services. If the adult victim declines services altogether, the contact will be noted in the database. The DV Advocate will refer children and families to a wide range of follow-up services such as bilingual, culturally appropriate case assessment and coordination; emergency and long term (up to 18 months) confidential shelter, individual and group counseling; case consultation, TRO assistance and court accompaniment: trauma -informed substance abuse treatment; independent living skills classes and financial empowerment services; parenting classes; emergency food, clothing, and transportation; and rental assistance programs. Services for children, all using a "Point of Engagement" delivery system, include: Mi Escuelita, a free, full -day, therapeutic preschool for children aged 3 - 5 who have been traumatized by family violence. As a result of this innovative program, children develop emotionally, socially, and developmentally in supportive home and school environments, increasing their chances of long-term healthy development free from violence. Community Services for Families, providing intensive case management, support groups, parenting classes, and referrals for families experiencing or at risk of family violence and child abuse. Most of the families are referred through CWS, and many suffer from DV. ➢ Child Abuse Treatment Program (CHAT, funded by the California Office of Emergency Services), providing intensive mental health services for child victims of crime. Project Narrative — CaIEMA 2-108 (Revised 2/1/2009) 8 Applicant: National City Police Dept. Grant Number: ➢ Health and Developmental Services for Children, which brings together social service, health, and educational organizations to provide health and developmental screenings, assessments, and treatment. SBC; is developing a 23 hr. assessment center to provide short-term shelter and services for child abuse victims recently taken from their home. SBCS envisions this as being part of a Children's Village that brings together an array of organizations providing tailored services and supports for victims of child abuse and family violence, their non -offending parents, and foster families, resulting in tong -terra stability for child abuse victims in the region. 9. Conduct bi-monthly regularly scheduled in person conferences to review all cases. NCPD, SBCS, and CWS will coordinate bi-monthly in -person case conferences to review all cases. DVRT staff will identify any other services and programs that the family is accessing, and will work to ensure that the services are coordinated, seamless, and unduplicative. Staff of these other programs may be invited to participate in the case consultations when appropriate. 10. Facilitate the regular exchange of information among personnel from law enforcement, child protective services, probation, mental health, public health, domestic violence agencies, and relevant attorneys through the development of a multidisciplinary team which meets every other month, The Multi -Disciplinary Team (MDT) including the CEDV-SRP staff (CVPD, SBCS, & CWS), representatives of the DA's office, and other relevant agencies, will meet quarterly to exchange information, adjust services to meet current needs, address and resolve challenges, evaluate the progress of the collaboration, and coordinate outreach to the community. National City Police Department, a department of the City of National City, employs 92 police officers and 43 professional staff members and serves over 60,000 residents in a nine square mile area. In partnership with our community, NCPD is committed to providing the highest level of service and public safety. We pursue this Project Narrative — CaIEMA 2-108 (Revised 2/1/2009) 9 Applicant: National City Police Dept. Grant Number commitment with an unwavering resolve while always respecting the rights and dignity of those we serve. NCPD's Administrative Division has many years of experience successfully managing federal and state grants, including grants from State Homeland Security, Law Enforcement Terrorism Prevention Program, Urban Area Security Initiative, the Office of Traffic Safety, and Justice Assistance. NCPD, CWS, and SBCS have worked collaboratively on DVRT services for adult victims and children since 1999. Originally, the DVRT only responded in cases where children were present, but was later expanded to include all DV calls. For the last 3 years, DV Advocates have been stationed full-time at the NCPD in order to provide immediate response and have direct liaison with PD staff. This close contact ensures mutual trust and cooperation and facilitates information sharing among the partners. In the past, DV Advocates have found that victims are less receptive to accessing follow-up services if the follow-up contact takes place more than 72 hours after the crisis is over. However, if follow-up services are suggested during the initial DVRT visit, clients are 50% more likely to connect with needed services. For this reason, the roll call trainings greatly stress the importance of ensuring that the DVRT Advocates are called immediately, so that this critical window of opportunity is not missed. The DVRT project also employs a Data Entry/Program Aide who is responsible for all data entry of the project. SBCS is the lead agency in the South Bay Regional Collaborative (SBRC), a partnership between SBCS and the region's four community collaboratives, Children's Hospital, and YMCA Family Stress Counseling Services. The SBRC is also contracted with the County of San Diego to provide Community Services for Families (CSF) in the South Region referred by the Children's Services Bureau. These services include case management, parenting classes, support groups, specialized training, and prevention/referral services. SBCS will ensure that victims with children who are served Project Narrative - CaIEMA 2-108 (Revised 2/1/2009) 10 Applicant. National City Police Dept. Grant Number: through the DVRT will be linked into the CSF program. The NCPD will facilitate a quarterly Multi -Disciplinary Team (MDT) meeting to discuss domestic violence topics with allied agencies, including hospitals, Adult Protection Services, Child Welfare Services and the other DV Providers. This collaboration demonstrates the region's intention to work together toward the mutual goal of providing maximum available assistance for domestic violence child victims. The outcome will be a permanent community collaboration of public and private agencies providing immediate response arid focuser) comprehensive follow-up services for child victims of family violence. As a result of contact with any of the partners of the Collaborative, child and adult victims of domestic violence will gain automatic access to a wide array of services, supports, and resources that will help them rebuild self-sufficient, non-violent lives for themselves and their children. Project Narrative — CaIEMA 2-108 (Revised 2/1/2009) 11 Applicant City of National City, Police Dept. Grant Number: Budget Narrative The budget supports the objectives by using the majority of funds for direct service activities. Part A: Personnel Services The grant supports a .75 FTE Police Officer, who will participate in the CEDV-SRP Team, provide immediate and follow-up response to DV calls in which children are present, inform the other CEDV-SRP Team members (DV Advocate and CWS Social Worker) when responding to such calls, participate in cross -training, protocol development, data sharing, case consultation, MDT meetings, and program coordination. Qualifications: Graduation from high school or possession of 12th grade G.E.D. certificate, and completion of Basic Police Academy. Benefits: Medicate, Uniform Allowance, LTD Insurance, Insurance with Compensation, Life AD/D Insurance, Pers (retirement), and Health Insurance. Total w/ benefits $106,250. (12 Months). Part B: Operating Subcontract with South Bay Community Services for one .5 FTE DV Advocate, to work on the CEDV SRP team. The DV Advocate will participate in the CEDV-SRP Team, provide immediate and follow-up response to DV calls in which children are present, participate in cross - training, protocol development, data sharing, case consultation, MDT meetings, and program coordination. The DV Advocate will be located full time at the NCPD. Qualifications: Min. 1-year experience in child, youth, and family services field, preferably in a community based service organization. Experience in the areas of individual, group, and family counseling, outreach, community education and development, advocacy, and case management. Ability to work with a diverse cultural population. B.A. or B.S. degree, (M.A. or M.S.W. preferred) in social work, psychology, or related field, experience may be substituted. 40 Hour DV training. Bilingual preferred. The total sub -contract is $55,850 (12 Months). There is no Subcontract with the County of San Diego for.5 FTE CWS Social Worker. The county does not wish to participate fully as hoped and is not seeking any of the grant funds. Budget Narrative - CaIEMA 2-107 (Revised 2/1!2009) 1 Applicant: City of National City, Police Dept, Grant Number: None the less, the Social Worker is committed to participate in the CEDV-SRP Team, provide follow-up response to DV calls in which children are present, participate in cross -training, protocol development, data sharing, case consultation, MDT meetings, and program coordination. CWS worker will not be available for 24hr callout but is working on site once a week at NCPD with the CEDV Police Officer and SBCS Advocate. Officers will use CWS 24hr hotline to report Child Abuse per current laws, policy and protocol. Qualifications: BA in social work from an accredited college or university; OR; BA from an accredited college or university with at least 24 semester units in the behavioral sciences, AND, 1 year of work experience or 2 semesters of supervised internship experience in a family or children's service agency performing duties of supervision, treatment or protective services to children. Training: National City PD is using the $3,000 to send several personnel to training, including the CEDV officer, police officers, detectives and the SBCS Advocates who are involved in DV investigations and / or CEDV — DV training. Cal EMA staff during earlier EV projects encouraged our project personnel to attend as much training and conferences as possible related to the program of Children Exposed to DV. and to train others involved in the DV process, so it has been a priority. Total Funds Requested: Total amount be request for EV11 (FY 2011-2012) is $175,000. Budget Narrative - CaIEMA 2-107 (Revised 2/1/2009) 2 BUDGET CATEGORY AND LINE ITEM DETAIL 3rant Recipient: Grant Number: A. Personal Services — Salaries/Employee Benefits COST Fci ce Officer Salary (CEL)V Investigator) police Corporal .75 FTE Salary 80,948.92 Jniform Allowance 750.00 _ongevity 540.02 Educational Incentive 2,428.40 3i-Lingual Pay Diff Pay 2.428.40 Total Personnel= 87,095.74 _TD Insurance 234.00 ?ERS 35,826.83 EPMC 2,629.81 Medicare 1.45% 1,259.94 SVorkers Comp 8,497-18 -iealth Insurance/Dental 5,980.65 _ife/AD&D Insurance 143.00 Total Benefits= 54,571.42 Total Salalry & Benefits = $141,667.16 75% or .75 FTE = $106,250.37 Senior Office Assistant- Overtime Data Entry $18.80 per hour teme and half = $28.21 per hour x 120 hours = $3,385.20 Enter Data into CEDV Police Computer Database Training Coordinator - Overtime CEDV Training Assesments & Admin. $26.23 per hour @ time and half = $30.98 per hour x 60 hours = $1,858.80 PERSONAL SECTION TOTAL $106,250 $3,3&. $1,859 $111,49 Cal EMA 2-106b (Revised 1/2011) budget pages without match BUDGET CATEGORY AND LINE ITEM DETAIL Grant Recipient Grant Number: B. Operating Expenses COST Sub Contract DVRT Advocate (South Bay Community Servcies) SBCS Personnel Program Director DVRT Advocate DVRT - On Call Staff Contract Compliance Staff Total Salaries= Benefits FICA 7.625% SUI fg 4.25% of first $7,000 Insurance W/compensa on ©2% Health Insurance Pension Total Benefits= Total Personnel= Non -Personnel Maage Office Supplies Tele-Cell-Pa. ers-Internet Total Non -Personnel = Total Direct Cost= f Overhead @ 5% Direct Cost 1 :ost= indirect Costs National Cit Flat rate not exceeding 10% of Personnel Salaries Annual Salary 65,000 10% 40,456 50% (@ 19.45/hr) 19,500 50% (@ 75.00 /shift 36,400 10% Cell Phone CEDV Officer Office Supplies DV Outreach Supplies and Printing Training Subsistence (Lodging and Meals 50% Tuition 20% Travel 20% 12 forecasted nights $84 per night = $1008 $36,00 per diem 12 days = $432 1000 miles @.051 cents/mile to and from = $510 5 registrations $155.00 ea. = $775 Incidentals 10% Training is for all personnel including police personnel and advocates attending CEDV program related training. SBCS SUB 6,500 20,228 9,750 3.0 $40,118 3,069 811 WY? 3,851 22 023 $10,556 $50,674 1,412 504 600 $2,516 $53,190 2660 $55,850 $1500 $800 $600 $300 $55,850 $1,500 $1,050 $500 $1,606 $3,000 OPERATING SECTION TOTAL $63,606 Cal EMA 2-106b (Revised 12011) budget pages without match BUDGET CATEGORY AND LINE ITEM DETAIL ;rant Recipient: C. Equipment Grant Number: COST EQUIPMENT SECTION TOTAL as Bfock:1OG on tf a Grant Award Face Sheet $0.00 Cal EMA 2-106b (Revised 12011) budget pages without match PROJECT SUMMARY 1. GRANT AWARD NO. 3. GRANT PERIOD 10/01/2011 t0 09/30/2012 2. PROJECT TITLE Children Exposed to Domestic Violence SR Program 4. APPLICANT City of National City 619-336-4411 Name: Phone: 5. GRANT AMOUNT (this is the same amount as 10G of the Grant Award Face Sheet) $ 175,000 Address 1243 National City Blvd. Fax # 619-336-4525 City: National City Zip: 919150 6. IMPLEMENTING AGENCY Name: National City Police Department Phone: 619-336-4514 Fax it619-336-4525 Address: 1200 National City Blvd. City: National City Zip: 91950 7. PROGRAM DESCRIPTION The CEDV-SRP will be a component of the existing Domestic Violence response team (DVRT). The DVRT will be expanded to include an additional .5 FTE DV Advocate, a CWS Social Worker, and a .75 FTE Police Officer who will join the DVRT to address the immediate and longer -term needs of any child who has been exposed to DV. Team members will also participate in cross -training, protocol development, data sharing, case consultation, MDT meetings, and program coordination. As a result of contact with any of the partners of the Collaborative, child and adult victims of domestic violence will gain automatic access to a wide array of services, supports, and resources that will help them rebuild self-sufficient, non-violent lives for themselves and their children. 8. PROBLEM STATEMENT Child witnesses to domestic violence experience serious trauma which, without intervention, can result in physical, emotional, and developmental delays and injuries. The project will take place in National City, looted in the southwestem portion of San Diego County with a population of 63,537 (59% Hispanic, 17% Asian & PI, 15% White, 6% African -American, and 3% Other). Situated very close to the Mexican border, National City's domestic violence rate of 23 per 1,000 households is the third highest in the county, and the city suffers from high rates of violent crime, unemployment, family poverty, and substance abuse. 9. OBJECTIVES Ensure the CEDV-SRP Team receive specialized DV training in their own discipline and each other's roles; Develop a CEDV-SRP protocol; Develop a comprehensive computerized database; Provide immediate on -site response to 66 DV calls where children are present; Attempt to provide follow-up with 66 DV adult victims and their children; Conduct 24 in person case conferences; Facilitate 6 MDT meetings; Complete a comprehensive programmatic evaluation. Project Summary - CaIEMA 2-150 (formerly OES 227) (Revised 2/1/2009) 1t?. ACTI`I!TIES Provide staff training and cross -training. Review existing DVRT protocol to incorporate recommended child -related issues. Provide immediate "n-site response and follow-up services to all DV calls where children are present. Conduct 24 in person case conferences. FacIita*e 6 MDT meetings. Cornpiete a xxnpro ,n3ive programmatic evaluation. 11. EVALUATION (if applicable) An Evaluator will complete a comprehensive programmatic evaluation. The evaluation will measure the impact the program has on reducing trauma to children exposed to domestic violence and increasing their safety. The evaluation is due in June 2011. 12. NUMBER OF CLIENTS (if applicable) 66 DV cases where children are present 13. PROJECT BUDGET (these are the same amounts as on Budget Pages) Personal Services Operating Expenses Equipment TOTAL $111,494 $63,506 $0 $175,000 $0 $0 $0 $0 $0 Totals: $111,494 $63,506 $0 $175,000I Project Summary - CaIEMA 2-150 (formerly OES 227) (Revised 2/112009) OTHER FUNDING SOURCES _Ate this form to report the total funds available to support the activities related to o,.i,plishing the goals and objectives of the Grant Award Agreement. In the "Grant column, report the CalEMA funds requested by category. In the "Other Funds" column, report all other funds available to support the project by category and then calculate the totals by category in the "Program Total" column. Total each column to arrive at the total program funds available. OTHER FUNDING SOURCES (Enter numbers without $ or decimal points.) RI GFT CA EGORY D . T— GRANT FUNDS (Use wcly the grantiuuis identified in the preceding budget pages.) OTHER FUNDS PROGRAM TOTAL Personal Services 111,494 35,417 $146,911 Operating Expenses 63,506 28,460 $91,966 Equipment 0 0 $0 TOTAL $175,000 $63,877 $238,877 r - This form does not become part of the grant award. Other Funding Sources - CaIEMA 2-151 (formerly OES 653) (Revised 2J1/2009) PRIOR, CURRENT AND PROPOSED CaI EMA FUNDING List all currently funded Cal EMA projects and all Cal EMA grants awarded to the applicant during the last five fiscal years. Include the fiscal year of operation, the grant number and the amount of Cal EMA funding. For current and proposed grants that include positions funded by more than one CaI EMA grant, list these personnel by title and the percentage of the position r� :nded by CaI EMA. The percentage of funding must not exceed 100 percent for any one individual. Example 2005-06 2005-06 2005-06 DC05160010 $50,000 CE05089504 $67,000 MR05040550 $68,000 Project Director Project Director Project Director 25% 25% 50% PRIOR, CURRENT AND PROPOSED CaI EMA FUNDING 2001-02 2002-133 $25,138 N/A N/A 2002-03 2003-167 $233,105 NIA N/A 2003-04 2004-045 $196,369 NIA N/A 2004-05 2005-15 $170,905 N/A N/A 2005-06 2006-0071 $110,839 N/A N/A 2006-07 2007-0008 $53,876 NIA N/A 2008-09 EV08 01 8608 $200,000 N/A N/A 2009-10 EVO9 02 8608 $200,000 N/A N/A 2010-11 EV10 03 8608 $175,000 N/A N/A Prior, Current and Proposed Cal EMA Funding 2-152 (Revised 6/2011) PROJECT SERVICE AREA INFORMATION COUNTY OR COUNTIES SERVED: Enter the name(s) of the county or counties served by the project. Put an asterisk where the project's principal office is located. Sari Diego County U.S. CONGRESSIONAL DISTRICT(S): Enter the number(s) of the U.S. Congressional District(s) which the project serves. Put an asterisk for the district where the project's principal office is located. 44th Congressional District STATE ASSEMBLY DISTRICT(S): Enter the number(s) of the State Assembly District(s) which the project serves. Put an asterisk for the district where the project's principal office is located. " 80th State Assembly District 4. STATE SENATE DISTRICT(S): Enter the number(s) of the State Senate District(s) that the project serves. Put an asterisk for the district where the project's principal office is located. '40th Slate Senate District 5. POPULATION OF SERVICE AREA: Enter the total population of the area served by the project. 63,700 Project Service Area Information 2-154 (Revised 2/1/2009) EDMUND G. BROWN JR. MIKE DAYTON ACTING SECRETARY GOVERNOR Cal EMA CALIFORNIA EMERGENCY MANAGEMENT AGENCY June 6, 2011 TO: CHILDREN'S JUSTICE ACT (CJA) FUNDED GRANT RECIPIENTS PROJECT DIRECTOR/FINANCIAL OFFICER RE: CHANGE IN CJA FUNDING CYCLE The California Emergency Management Agency (Cal EMA), Public Safety and Victim Services Division, is pleased to announce that the California Children's Justice Act (CJA) Task Force has recommended Cal EMA extend the funding cycle of CJA-funded programs from three to up to five years. Current CJA-funded grant recipients may request additional years of funding. All requests must be submitted, in writing, to your Cal EMA Program Specialist no later than February 28th of the projects final year of operation (requests may not be submitted during the first or second year of operation). Additional years will be granted on a yea -to -year and case -by -case basis. For further information, please contact your Program Specialist. Sincerely, SONIA BANALES Chief, Victim Services Branch 3650 SCHRIEVER AVENUE MATHER, CA 95655 PUBLIC SAFETY AND VICTIM SERVICES (916) 327-3672 PHONE • (916) 324-8554 FAx CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: January 24th, 2012 AGENDA ITEM NO.9 EM TITLE: ;Warrant Register #23 for the period of 11/30/11 through 12/06/11 in the amount of $1,587,778.81 PREPARED BY: K. Apalateguil DEPARTMENT: Financ PHONE: 619-336-43311 APPROVED BY: EXPLANATION: Per Government Section Code 37208, attached are the warrants issued for the period of 11/30/11 through 12/06/11 The Finance Department has implemented a policy explanation of all warrants above $50,000.00 Vendor Check Amount Explanation HCFA / City of El Cajon 244740 60,773.00 FY12 Member Assessment Fire Department Health Net Inc 244744 65,202.90 Health Insurance R1192A Dec 2011 Kimley Horn and Assoc 244752 216,740.89 Prop 84 Grant Application Preparation . -alic Emp Ret System 244767 277,817.60 Insui 7riod 11-11-4 j FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: k„ Finance MIS STAFF RECOMMENDATION: Ratification of warrants in the amount of $1,587,778.81 BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: rrant Register #23 PAYEE T-SHIRT MART LEAGUE OF CA CITIES DESROCHERS EDCO DISPOSAL CORPORATION FEDEX OPPER & VARCO PRO BUILD PRUDENTIAL OVERALL SUPPLY SAN DIEGO TROLLEY INC 1800-RADIATOR AFLAC AGUIRRE AIRGAS WEST AT&T MOBILITY AT&T/MCI BANK OF AMERICA PUBLIC & BOOT WORLD 3 F FORNIA ELECTRIC SUPPLY CALIFORNIA LAW ENFORCEMENT CALIFORNIA PEACE OFFICERS CEB CLAIMS MANAGEMENT ASSOCIATES CORNEJO CORPORATE PAYMENT SYSTEMS COUNTY OF SAN DIEGO COUNTY OF SAN DIEGO CPP PRINTING D PREP L L C D PREP L L C DANIELS TIRE SERVICE DAPPER TIRE COMPANY DATA TICKET INC DELTA CARE USA DELTA DENTAL DEPARTMENT OF JUSTICE D-MAX ENGINEERING DOKKEN ENGINEERING DREW FORD ENVIRONMENTAL HEALTH COALITION ESGIL CORPORATION ESGIL CORPORATION .KNER -X FERGUSON ENTERPRISES INC FIX AUTO NATIONAL CITY FLORES FRANK TOYOTA WARRANT REGISTER # 23 12/6/2011 DESCRIPTION SHIRTS / MAYOR MORRISON EXECUTIVE LUNCHEON MEETING RETIREE HEALTH BENEFITS DEC 2011 WASTE DISPOSAL SERVICES / CDC EXPRESS MAIL / SERVICE CDC LEGAL SVCS / OCT 2011 MOP 45707 MATERIALS - SUPPLIES MOP 45742 LAUNDRY SERVICE TROLLEY FLAGGING SERVICES FY2012 RADIATOR 1722VP AFLAC ACCOUNT BDM36 DEC 2011 323HS0000-01. REPAIR HEADSET/FIRE MOP 45714 WEARING APPAREL SECURE WIRELESS CIRCUIT / PD SBC AT&T PHONE SERVICE FOR FY12 CAT LOADER EQPT LEASE PMT#23 MOP 64096 WEARING APPAREL FIRE/LTD DEC 2011 MOP 45698 ELECTRICAL MATERIAL FIRE/LTD DEC 2011 THE ROLE OF THE POLICE COURSE CA SUBDIVISION MAP ACT CONSULTANT SVCS / DECEMBER 11 CRIME PREV THROUGH ENV DESIGN US BANK CITY CREDIT CARD - CITY REC & PLAYGROUND EQUIPMENT SHARE OF PARKING CIT REV OCT'11 BUSINESS CARDS MAYOR OFFICE CRIME PREVENTION - ENV DESIGN CRIME PREVENTION - ENV DESIGN TURF 4 PLY TL 23X850-12 MOP 72654 TIRES APPEALS, ON-LINE ACCESS / OCT 2011 PMI DENTAL INS / DEC 2011 DENTAL INS DEC 2011 INVESTIGATIVE SERVICES STORM WATER SERVICES PLAZA BLVD PS&E MOP 49078 AUTO PARTS CDBG EXPENSE REIMB / OCT 2011 PLAN CHECK SERVICES / FIRE PLAN CHECKING SERVICES / BUILDING CRIME PREVENTION - ENV DESIGN PAYMENT FOR FEDEX CHARGES MOP 45723 BUILDING MATERIAL LIABILITY CLAIM COSTS REIMB FOR A GEAR BAG - PD 2009 TOYOTA PRIUS HYBRIDS / PW CHK NO 244689 244690 244691 244692 244693 244694 244695 244696 244697 244698 244699 244700 244701 244702 244703 244704 244705 244706 244707 244708 244709 244710 244711 244712 244713 244714 244715 244716 244717 244718 244719 244720 244721 244722 244723 244724 244725 244726 244727 244728 244729 244730 244731 244732 244733 244734 244735 244736 DATE 12/1/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 12/6/11 1/4 AMOUNT 51.66 30.00 110.00 104.75 84.08 826.00 57827 46.38 27.27 110.93 1,452.44 1,277.81 63.57 2,317.19 6,353.54 3,077.02 250.00 560.00 250.52 1,560.00 555.00 133.40 4,965.00 507.21 72.83 247.00 15, 368.63 127.63 393-00 393.00 232.35 720.49 3,039.43 2,944.22 12,669.25 1,311.00 21, 297.53 4,697.68 215.19 24, 975.86 2,730.10 18, 681.75 50721 24.90 364.32 3,550.51 50.29 1,04925 2/4 PAYEE GEORGE'S LAWN EQUIPMENT CO GRAINGER GRANICUS INC HCFA C/O CITY OF EL CAJON HEALTH NET HEALTH NET HEALTH NET HEALTH NET INC HERNANDEZ HOME DEPOT CREDIT SVCS HORIZON HEALTH EAP JOHN DEERE LANDSCAPES KAISER FOUNDATION HEALTH PLANS KAISER FOUNDATION HEALTH PLANS KAISER FOUNDATION HEALTH PLANS KIMLEY HORN AND ASSOC INC L N CURTIS & SONS L1 IDENTITY SOLUTIONS LASER SAVER INC MARTINEZ METRO FIRE & SAFETY MUNICIPAL CODE CORPORATION MUNICIPAL MAINTENANCE EQUIP NAGLE NATIONAL CITY HISTORICAL SOCIETY NATIONAL NOTARY ASSOCIATION NCPOA NCPOA PERRY FORD PRUDENTIAL OVERALL SUPPLY PUBLIC EMP RETIREMENT SYSTEM QUAL CHEM CORP R J SAFETY SUPPLY RBF CONSULTING RELIANCE STANDARD RODRIGUEZ SDG&E SMART SOURCE OF CA LLC SOUTH BAY COMMUNITY SERVICES SOUTHERN CAL TRAINING OFFCR'S SOUTHERN CALIF TRUCK STOP SPIRIT HALLOWEEN STAPLES ADVANTAGE SWRCB TARULLI TIRE SAN DIEGO INC THE LINCOLN NATIONAL LIFE INS TURF MAKER TURNER'S PORTABLE WELDING �a= NNE try figs INCORPdRATEi WARRANT REGISTER # 23 12/6/2011 DESCRIPTION STAR EDGER BLADE 9" ROT 2658 MOP 65179 MATERIALS & SUPPLIES GRANICUS WEBCAST SERVICE FY12 MEMBER ASSESSMENT' FIRE HEALTH FULL NETWORK DEC 2011 HEALTH NET-R1192F DEC 2011 HEALTH NET 57135F DEC 2011 HEALTH INS R1192A DEC 2011 REIMB - ACE UNIFORMS REP - FIRE INV 8100411 / 3312470 BRICKROW SUPP EMPLOYEE ASSISTANCE PROGRAM MOP 69277 PLANTING MATERIALS RETIREES INS / DEC 2011 KAISER RET INS DEC 2011 KAISER RET INS ADJUSTMENT 2010-2011 PROP. 84 GRANT APPLICATION PREPARATION 12C 6 X 6 12 OZ CANV/DEBRI CARRIER INVESTIGATIVE SERVICES MOP 45725 TONER CARTRIDGE REFUND OF C&D COSTS RECHARGE TRUCK FIRE EXTINGUISHER MUNICIPAL CODE SUPPLEMENT#33 AIR FILTER INT II G-28113-02510 ICI ARSON/EXPLOSIVES COURSE REIMB TO PUBLICIZE KIMBALL HOUSE NOTARY ERRORS & OMISSIONS INS NCPOA CHRISTMAS PARTY -MAYOR NCPOA CHRISTMAS PARTY-NATIVIDAD MOP 45703 R&M AUTO EQUIPMENT MOP 45742 LAUNDRY SERVICE SERVICE PERIOD 11-11-4 GEL GASKET REMOVER / PW BLACK FRAME SMOKE MIRROR LENS 8TH ST SAFETY ENHANCEMENTS, AUG/SEPT VTL DECEMBER 2011 THE ROLE OF POLICE CHIEF COURSE GAS & ELECTRIC SERVICE/ NUT MOP 63845 ENVELOPES - COMM SVC CDBG EXPENSE REIMB JUL-SEP 2011 2012 SCTOA CALENDAR MOP 45758 GAS REFUND OF BANNER ADM COSTS MOP 45704 OFFICE SUPPLIES ANNUAL PERMIT CHARGE MOP 47940 TIRES LIFE & AD&D, STD, LTD INS DEC 2011 TM BLEND -APPLAUD II, INTEGRA 11, LABOR, REPAIRS TO VEH #426 CHK NO DATE AMOUNT 244737 12/6/11 200.20 244738 12/6/11 349.30 244739 12/6/11 1,477.35 244740 12/6/11 60, 773.00 244741 12/6/11 6,764.73 244742 12/6/11 2,101.57 244743 12/6/11 1,304.42 244 744 12/6/11 65, 202.90 244745 12/6/11 72.19 244746 12/6/11 999.23 244747 12/6/11 744.64 244748 12/6/11 482.72 244749 12/6/11 22, 461.11 244750 12/6/11 11,678.20 244751 12/6/11 279.55 244752 12/6/11 216, 740.89 244753 12/6/11 86.16 244754 12/6/11 67 244755 12/6/11 26L 244756 12/6/11 37.99 244757 12/6/11 35.00 244758 12/6/11 687.03 244759 12/6/11 183.84 244760 12/6/11 780.00 244761 12/6/11 5,000 00 244762 12/6/11 84.00 244763 12/6/11 50.00 244764 12/6/11 50.00 244765 12/6/11 101.72 244766 12/6/11 389.81 244767 12/6/11 277,817.60 244768 12/6/11 348.24 244769 12/6/11 196,32 244770 12/6/11 14.344.42 244771 12/6/11 2,406.51 244772 12/6/11 512.00 244773 12/6/11 1, 729.94 244774 12/6/11 1,114.71 244775 12/6/11 6,425.00 244776 12/6/11 50.00 244777 12/6/11 217.50 244778 12/6/11 1,975.00 244779 12/6/11 97 244780 12/6/11 18,19b. _ _ 244781 12/6/11 193.16 244782 12/6/11 8,330.67 244783 12/6/11 479-59 244784 12/6/11 1,391.00 3/4 WARRANT REGISTER # 23 12/6/2011 PAYEE . DESCRIPTION CHK NO DATE AMOUNT U S HEALTHWORKS MEDICAL SERVICES 244785 12/6/11 350.00 UNION TRIBUNE ADVERTISING OF PLANNING COMMISSION 244786 12/6/11 519.20 VALLEY INDUSTRIAL SPECIALTIES MOP 46453 BUILDING MATERIAL 244787 12/6/11 803.11 VCA MAIN ST ANIMAL HOSPITAL K9 VET CARE / POLICE 244788 12/6/11 67.25 VISTA PAINT MOP 68834 TRAFFIC CONTROL SUPPLY 244789 12/6/11 199.89 WAXIE SANITARY SUPPLY JANITORIAL SUPPLIES / FIRE 244790 12/6/11 173.47 WESTFLEX INDUSTRIAL MOP 63850 AUTO PARTS 244791 12/6/11 121.63 WILLY'S ELECTRONIC SUPPLY MOP 45763 SHOP SUPPLIES 244792 12/6/11 139.75 ACEDO RETIREE HEALTH BENEFITS DEC 2011 244793 12/6/11 160.00 ALLEN RETIREE HEALTH BENEFITS DEC 2011 244794 12/6/11 125.00 ANDERSON RETIREE HEALTH BENEFITS DEC 2011 244795 12/6/11 110.00 BECK RETIREE HEALTH BENEFITS DEC 2011 244796 12/6/11 140.00 BISHOP RETIREE HEALTH BENEFITS DEC 2011 244797 12/6/11 110.00 BOYD RETIREE HEALTH BENEFITS DEC 2011 244798 12/6/11 145.00 CONDON RETIREE HEALTH BENEFITS DEC 2011 244799 12/6/11 280.00 CORPUZ RETIREE HEALTH BENEFITS DEC 2011 244800 12/6/11 140.00 DANESHFAR RETIREE HEALTH BENEFITS DEC 2011 244801 12/6/11 250.00 'ATIS RETIREE HEALTH BENEFITS DEC 2011 244802 12/6/11 120.00 RCHIO RETIREE HEALTH BENEFITS DEC 2011 244803 12/6/11 70.00 DREDGE RETIREE HEALTH BENEFITS DEC 2011 244804 12/6/11 250.00 EISER III RETIREE HEALTH BENEFITS DEC 2011 244805 12/6/11 250.00 GELSKEY RETIREE HEALTH BENEFITS DEC 2011 244806 12/6/11 115.00 GIBBS JR RETIREE HEALTH BENEFITS DEC 2011 244807 12/6/11 120.00 GOO RETIREE HEALTH BENEFITS DEC 2011 244808 12/6/11 165.00 HANSON RETIREE HEALTH BENEFITS DEC 2011 244809 12/6/11 135.00 HODGES RETIREE HEALTH BENEFITS DEC 2011 244810 12/6/11 200.00 HOLLIS RETIREE HEALTH BENEFITS DEC 2011 244811 12/6/11 185.00 JAMES RETIREE HEALTH BENEFITS DEC 2011 244812 12/6/11 140.00 SERVATIUS RETIREE HEALTH BENEFITS DEC 2011 244813 12/6/11 340.00 JUNIEL RETIREE HEALTH BENEFITS DEC 2011 244814 12/6/11 50.00 KAISER FOUNDATION HEALTH PLANS KAISER RET INS COBRA OCT 2011 244815 12/6/11 6,985.36 KIMBLE RETIREE HEALTH BENEFITS DEC 2011 244816 12/6/11 300.00 LANDA RETIREE HEALTH BENEFITS DEC 2011 244817 12/6/11 155.00 LIMFUECO RETIREE HEALTH BENEFITS DEC 2011 244818 12/6/11 160.00 MATIENZO RETIREE HEALTH BENEFITS DEC 2011 244819 12/6/11 100.00 MCCABE RETIREE HEALTH BENEFITS DEC 2011 244820 12/6/11 280.00 MEDINA RETIREE HEALTH BENEFITS DEC 2011 244821 12/6/11 105.00 MURRAY RETIREE HEALTH BENEFITS DEC 2011 244822 12/6/11 150.00 MYERS RETIREE HEALTH BENEFITS DEC 2011 244823 12/6/11 140.00 NOSAL RETIREE SETTLEMENT DEC 2011 244824 12/6/11 1,137.19 OCHOA RETIREE HEALTH BENEFITS DEC 2011 244825 12/6/11 125-00 PAUU RETIREE HEALTH BENEFITS DEC 2011 244826 12/6/11 340.00 E JR RETIREE HEALTH BENEFITS DEC 2011 244827 12/6/11 140.00 RETIREE HEALTH BENEFITS DEC 2011 244828 12/6/11 280-00 POTTER RETIREE HEALTH BENEFITS DEC 2011 244829 12/6/11 150.00 RAY RETIREE HEALTH BENEFITS DEC 2011 244830 12/6/11 190.00 ROARK RETIREE HEALTH BENEFITS DEC 2011 244831 12/6/11 135.00 ROE RETIREE HEALTH BENEFITS DEC 2011 244832 12/6/11 120.00 4/4 WARRANT REGISTER # 23 12/6/2011 PAYEE DESCRIPTION CHK NO DATE AMOUNT RUIZ RETIREE HEALTH BENEFITS DEC 2011 244833 12/6/11 310.00 SHORT RETIREE HEALTH BENEFITS DEC 2011 244834 12/6/11 300.00 STRASEN RETIREE HEALTH BENEFITS DEC 2011 244835 12/6/11 135.00 TRIVIZ RETIREE HEALTH BENEFITS DEC 2011 244836 12/6/11 135.00 URIAS RETIREE HEALTH BENEFITS DEC 2011 244837 12/6/11 125.00 ZIETLOW RETIREE HEALTH BENEFITS DEC 2011 244838 12/6/11 150.00 ANP Total 895,218.87 Start Date End Date SECTION 8 HAPS PAYMENTS 11/30/2011 12/6/2011 692,559.94 GRAND TOTAL $ 1,587,778.81 Certification IN ACCORDANCE WITH SECTION 37202, 37208, 372059 OF THE GOVERNMENT CODE, WE "F,FrBY CERTIFY TO THE ACCURACY OF THE DEMANDS LISTED ABOVE AND TO THE ,VAILABILITY OF FUNDS FOR TIIE PAYMENT THEREOF AND FURTHER THAT THE ABOVE CLAIMS AND DEMANDS IIAVE BEEN AUDITED AS REQUIRED BY LAW. FINANCE CITY MANAGER FINANCE COMMITTEE RONALD J. MORRISON, MAYOR -CHAIRMAN ALEJANDRA SOTELO-SOLIS, VICE -MAYOR ROSALIE ZARATE, MEMBER LUIS NATIVIDAD, MEMBER MONA RIOS, MEMBER I HEREBY CERTIFY THAT THE FOREGOING CLAIMS AND DEMANDS WERE APPROVED AND THE CITY TREASURER IS AUTHORIZED TO ISSUE SAID WARRANTS IN PAYMENT THEREOF BY THE CITY COUNCIL ON 'I -I IE 24'" OF JANUARY, 2012_ AYES NAYS ABSENT CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: January 24th, 2012 AGENDA ITEM NO. 4.0 EM TITLE: 'Narrant Register #24 for the period of 12/07/11 through 12/13/11 in the amount of $1,908,933.64 PREPARED BY: 'K. ApalateguO DEPARTMENT: Fin PHONE: 619-336-4331! APPROVED BY: EXPLANATION: Per Government Section Code 37208, attached are the warrants issued for the period of 12/07/11 through 12/13/11 The Finance Department has implemented a policy explanation of all warrants above $50,000.00 Vendor Check Amount Explanation Public Emp Ret System 244947 264,259.36 Insurance Period 12-11-3 HDL Coren & Cone 244992 68,805.63 2010-11 Secure/Unsecured Audit Recording FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Ratification of warrants in the amount of $1,908,933.64 BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: rrant Register #24 1/4 PAYEE BEST BEST & KRIEGER LLP BIRRIAS COMMUNITY HOUSING WORKS DIXIELINE BUILDERS DIXIELINE BUILDERS E2 MANAGE TECH INC NAHRO OPPER & VARCO AMAZON BAKER & TAYLOR BRODART CITY OF NATIONAL CITY DEMCO INC KELLEY BLUE BOOK MIDWEST TAPE OMNIGRAPHICS SPRINT STAPLES ADVANTAGE -- SHOPPER INC 'OSTMASTER AEHOX CORPORATION 1800-RADIATOR ABCANA INDUSTRIES ACEDO ADDICTION MEDICINE AIRGAS WEST ALL FRESH PRODUCTS ALL THE KINGS FLAGS ALPHA OMEGA SERVICES ARCO GASPRO PLUS ASSI SECURITY INC AT&T/MCI AUSTIN DOORS BEATRIZ BELL BIBLE BAPTIST CHURCH BONSUISSE INC BRENNTAG PACIFIC INC BRIAN COX MECHANICAL INC BULL CAL EXPRESS CALIFORNIA COMMERCIAL SECURITY CALIFORNIA ELECTRIC SUPPLY CARQUEST AUTO PARTS E, INC. APER THAN DIRT CHILDREN'S HOSPITAL CHULA VISTA BLUEPRINT CO CITY OF NATIONAL CITY CIVILSOURCE INC NAT 'Tr ORICTI�D ATCOR P WARRANT REGISTER #24 12/13/2011 DESCRIPTION LEGAL SVCS THROUGH NOV 2011 ECONOMIC DEVELOPMENT LOAN/CDC EXPENSE REIMB/ LOAN# 1134-H03-NC HOME PROGRAM LOAN / 2604 E 14TH ST EXP REIM/ 138 NORTON AVE/ GRANTS PROPERTY MITIGATION PW/MAY-SEP11 CDC SECTION 8 NAHRO MEMBERSHIP LEGAL SVCS / JULY 2011 / REDEV BOOKS - AS NEEDED FOR FY 2012. BOOKS - AS NEEDED FOR FY 2012. BOOKS, AS NEEDED FOR FY 2012 OUT OF STATE SALES TAX ON INVOICE COLORED KRAFT ART ROLL C/O 11/22/11 BOOKS -AS NEEDED FOR FY 2012. DVD'S - AS NEEDED FOR FY 2012. BOOKS -AS NEEDED FOR FY 2012_ VIDEO CONFERENCING LONG DISTANCE MOP #45704 - SUPPLIES DVD'S PAC LOCKS. POSTAGE FOR OVERDUE NOTICES XEROX BASE CHARGES AND OVERAGES RADIATOR 103130K0 POOL CHEMICALS REFUND/CALPERS DEDUCTION DEC11 MEDICAL SERVICES / HR MOP 45714 MATERIALS & SUPPLIES FOOD / NUTRITION CENTER FLAGS, ACCESSORIES CALOSHA SCBA MASK FIT TESTS / FIRE FUEL ACCESS CONTROL PANEL / COUNCIL SBC AT&T PHONE SERVICE / CITY DOOR REPAIRS LOAN SETTLEMENT W/ HEIRS T&A # 1455 MILK & DAIRY DELIVERY / NUTRITION POOL CHEMICALS INV 233766 / 633987 / PREV MAINT REIM/ REG FINANCIAL MGMT TRAINING CAL EXPRESS / NOVEMBER 2011 ELECTRONIC DOOR REPAIRS MOP 45698 ELECTRICAL MATERIAL MOP 47557 AUTO PARTS SUPPLIES FOR FIRE DEPT MRE-520. HEARTY MRE MEALS/FIRE CHILD ABUSE EXAMS / POLICE PLANS - SCAN OF 130 SHEETS / CD PETTY CAS REPLENISHMENT/OCT 2011 PAVEMENT MANAGEMENT SYSTEM CHK NO DATE AMOUNT 244839 12/13/11 4,731.23 244840 12/13/11 208.00 244841 12/13/11 41,385 00 244842 12/13/11 29,425.00 244843 12/13/11 15, 874.35 244844 12/13/11 43,120.36 244845 12/13/11 1,300.00 244846 12/13/11 5,439 78 244848 12/13/11 3,244.60 244849 12/13/11 2,477.87 244850 12/13/11 970 97 244851 12/13/11 294.26 244852 12/13/11 130.89 244853 12/13/11 64.35 244854 12/13/11 3,057.90 244855 12/13/11 59.70 244856 12/13/11 11.20 244857 12/13/11 763.71 244858 12/13/11 406.22 244859 12/13/11 272.36 244860 12/13/11 580.08 244861 12/13/11 134.85 244862 12/13/11 1,095.48 244863 12/13/11 205.36 244864 12/13/11 715.00 244865 12/13/11 57.73 244866 12/13/11 6,726.24 244867 12/13/11 727.18 244868 12/13/11 750.00 244869 12/13/11 35, 949.22 244870 12/13/11 2,285.00 244871 12/13/11 357.32 244872 12/13/11 805.47 244873 12/13/11 6,000.00 244874 12/13/11 30, 000.00 244875 12/13/11 97029 244876 12/13/11 609.15 244877 12/13/11 1,310.64 244878 12/13/11 151.40 244879 12/13/11 223.00 244880 12/13/11 576.14 244881 12/13/11 1,124.75 244882 12/13/11 471.62 244883 12/13/11 1,051.38 244884 12/13/11 2,162.69 244885 12/13/11 420.00 244886 12/13/11 146.81 244 887 12/13/11 440.15 244888 12/13/11 24,127.00 2/4 PAYEE CLEAN HARBORS COMMERCIAL AQUATICS SERVICES CONSTRUCTION ELECTRONICS INC COUNTY OF SAN DIEGO COX COMMUNICATIONS DANIELS TIRE SERVICE DAPPER TIRE COMPANY DAY WIRELESS SYSTEMS DAY WIRELESS SYSTEMS (20) DREW FORD DUONG ELESCO ENNIS PAINT SAN DIEGO EXPERIAN FEDEX FERNANDEZ FOREIGN SPEEDO INC GRAINGER GRANICUS INC GROSSMAN PSYCHOLOGICAL GTC SYSTEMS INC HAMILTON MEATS & PROVISIONS HEALTH NET INC HOME DEPOT CREDIT SVCS HONEYWELL INTERNATIONAL INC HYDRO SCAPE PRODUCTS INC IRON MOUNTAIN JJJ ENTERPRISES JOHN DEERE LANDSCAPES JOSSE JUDD ELECTRIC KIMBALL MIDWEST KONE L N CURTIS & SONS LA MAESTRA FAMILY CLINIC LIFE -ASSIST, INC. LOPEZ MAINTEX INC MALLORY FIRE MAN K-9 INC. MASON'S SAW & MORA MUNICIPAL CODE CORPORATION MUNICIPAL EMERGENCY SERVICES NAPA AUTO PARTS NCPOA NEXUS IS INC ORIENTAL TRADING CO INC ORKIN PEST CONTROL xico` irowiTED WARRANT REGISTER #24 12/13/2011 DESCRIPTION CHK NO HAZARDOUS WASTE PICKUP 244889 POOL SERVICE, REPAIRS 244890 CONSTRUCTION ELECTRONICS FIRE ALARMS 244891 RCS COMMUNICATIONS MAINT/NOV11 COX COMMUNICATIONS DATA & VIDEO TIRE TUBES TIRES LABOR, RADIO REPAIRS ENCRYPTION KIT XTL5000 INSTALL MOP 49078 AUTO PARTS 125 PLAN REIMBURSEMENT SERVICE FOR LIBRARY INVERTER MOP 74690 TRAFFIC CONTROL SUPPLY CREDIT CHECKS / POLICE DEPT IN:768487833/769236751/772171065 REFUND: DIR DEP ACCOUNT CLOSED SPEEDOMETER CHECKS/PATROL CARS MOP 65179 ELECTRICAL MATERIAL GRANICUS WEBCAST SVCS / MIS PSYCHOLOGICAL EXAMS/ PD /NOV 11 NETWORK ENGINEERING SRVC/MIS MEAT DELIVERY / NUTRITION HEALTH INS 57135J DEC 2011 BARK / PARKS HVAC MAINTENANCE MOP 45720 PLANTING MATERIAL RECORD MANAGEMENT/DOC STORAGE ALARM MONITORING MOP 69277 MATERIALS & SUPPLIES 125 PLAN REIMBURSEMENT ELECTRICAL REPAIRS ATO-MINI-MAXI FUSE 40282U REPAIRS & MAINTENANCE SUPPLIES FOR FIRE DEPT REIM: CDBG 2011 217 HIGHLAND AVE MASTER CLASSIC II BLACK EDITION TRANSLATION SERVICES FOR FY 2012 JANITORIAL SUPPLIES MSA CYLINDER LOGO / FIRE WEEKLY MAINT TRAINING/POLICE K-9 GENERATORS REIMB / SUPPLIES FOR FIRE DEPT MUNICIPAL CODE SUPP #34 / C CLERK RESCUE TOOLS / FIRE DEPT MOP 45735 AUTO PARTS NCPOA CHRISTMAS PARTY / VM ORDER AND INSTALL/ FIRE DEPT CRAFT SUPPLIES / CSD PEST MAINTENANCE DATE AMOUNT 12/13/11 1,067.94 12/13/11 84.95 12/13/11 843.55 244892 12/13/11 9,063.00 244893 12/13/11 158.52 244894 12/13/11 129.09 244895 12/13/11 1,743.21 244896 12/13/11 70.00 244897 12/13/11 9,254.99 244898 12/13/11 78.21 244899 12/13/11 1,500.00 244900 12/13/11 572.00 244901 12/13/11 297.65 244902 12/13/11 28.80 244903 12/13/11 169.68 244904 12/13/11 10.00 244905 12/13/11 30.00 244906 12/13/11 349.75 244907 12/13/11 1,447.8n 244908 12/13/11 1,75f 244909 12/13/11 292.:. 244910 12/13/11 2,805.31 244911 12/13/11 1,284.78 244 912 12/13/11 174.66 244913 12/13/11 32,515.40 244914 12/13/11 137 -66 244915 12/13/11 135.00 244916 12/13/11 205.00 244917 12/13/11 53.01 244 918 12/13/11 384.60 244919 12/13/11 1,743.62 244920 12/13/11 140.29 244921 12/13/11 881.63 244922 12/13/11 10,356.27 244923 12/13/11 24,458.75 244924 12/13/11 493.35 244925 12/13/11 632.15 244926 12/13/11 494.18 244927 12/13/11 6,099.97 244928 12/13/11 800.00 244929 12/13/11 2,396.18 244930 12/13/11 15.75 244931 12/13/11 264.27 244932 12/13/11 7,666 -" 244933 12/13/11 47 244934 12/13/11 50.00 244935---12/13/11 . .. -3,164 41 244936 12/13/11 594.13 244937 12/13/11 373.33 PAYEE PACIFIC AUTO REPAIR PADRE JANITORIAL SUPPLIES INC PBS&J PDR DISTRIBUTION LLC PERRY FORD POWERSTRIDE BATTERY CO INC PRO BUILD PROJECT PROFESSIONALS CORP PRUDENTIAL OVERALL SUPPLY PUBLIC EMP RETIREMENT SYSTEM QUAL CHEM CORP RAMIREZ ROAD ONE TOWING RODRIGUEZ RON BAKER CHEVROLET ROUSTON RPM WELDING INC S D COUNTY SHERIFF'S DEPT """'3 ALIGNMENT SERVICE )IEGO MIRAMAR COLLEGE 0.,ry DIEGO PET SUPPLY SDG&E SILVA SMART SOURCE OF CA LLC SMITH SOUTHLAND AUTO BODY SOUTHWEST SIGNAL SERVICE SPARKLETTS STAPLES ADVANTAGE SUPERIOR READY MIX SWEETWATER AUTHORITY SYSCO SAN DIEGO THE LIGHTHOUSE INC THE STATE BAR OF CALIFORNIA TOPECO PRODUCTS TRACY FORD T'S & SIGNS U S BANK UNDERGROUND SERVICE ALERT UNION TRIBUNE PUB CO UNITED ROTARY BRUSH CORP US HEALTHWORKS USA MOBILITY WIRELESS, INC. NZUELA EY INDUSTRIAL SPECIALTIES VCA EMERGENCY ANIMAL HOSPITAL VERIZON WIRELESS VISLINK LAW ENFORCEMENT & VISTA PAINT LIVCORrciRATED WARRANT REGISTER #24 12/13/2011 DESCRIPTION MOP 72448 R&M AUTO EQUIPMENT JANITORIAL SUPPLIES / NUTRITION PROVIDE SEWER BILL/TAX ROLL 2012 PHYSICIANS DESK REFERENCE MOP 45703 AUTO PARTS MOP 67839 AUTO PARTS MOP 45707 BUILDING MATERIAL 8TH ST UTILITIES, OCTOBER/NOVEMBER MOP 45742 LAUNDRY SERVICE SERVICE PERIOD 12-11-3 AERO/HOSPITAL SURFACE DISINFECTANT REIMB: CNOA CONFERENCE TOW/STORAGE FEES/CASE 1760816 125 PLAN REIMBURSEMENT MOP 45751 AUTO PARTS REIMB/ PESTICIDE TRAINING REPAIR DOORS AT LAS PALMAS PARK SHERIFFS RANGE USE / 10/03/11 MOP 72442 R&M AUTO EQUIPMENT FIREARMS INSTRUCTOR COURSE/PD MOP# 45753. DOG FOOD / PD FACILITIES DIVISION GAS & ELECTRIC CALPERA CONFERENCE REIMB/ SILVA VEHICLE IMPOUND FORM / PD REIMB/ CERTIFIED MAILING BODY LABOR, 24.1 HRS @ $40/HR TRAFFIC SIGNAL & STREET LIGHTING WATER / MAYORS OFFICE COPY PAPER / CITY COLDMIX ASPHALTS WASTEWATER WATER BILL FOOD & CONSUMABLES / NUTRITION MOP 45726 AUTO PARTS STATE BAR MEMBERSHIP DUES MOP 63849 AUTO PARTS WC CLAIMS COSTS / 8/24/10-12/31/11 MAGNETICS SIGNS CALENDERS/CSD CREDIT CARD EXPENSES / POLICE UNDERGRD SVC ALERT CHRGS LEGAL NOTICES ADVERTISING FY2012 SWEEPER REPAIRS MEDICAL SERVICES / HR PAGING SERVICE / DEC 2011 REIMB/ PARAMEDIC CERTIFICATION MOP 46453 SHOP SUPPLIES STRAY ANIMAL VET CARE / POLICE WIRELESS PHONE SERVICE / CITY 3C's COMMAND VEHICLE RECEIVER SYSTEM MOP 68834 TRAFFIC CONTROL SUPPLY 3/4 CHK NO DATE AMOUNT 244938 12/13/11 125.69 244939 12/13/11 195.65 244 940 12/13/11 2,200.00 244941 12/13/11 65.19 244942 12/13/11 488.11 244943 12/13/11 325.22 244944 12/13/11 351.38 244945 12/13/11 25, 334.50 244946 12/13/11 336.04 244947 12/13/11 264,259.36 244948 12/13/11 211.21 244949 12/13/11 352.11 244950 12/13/11 165.00 244951 12/13/11 114.39 244952 12/13/11 55.64 244953 12/13/11 50.00 244954 12/13/11 1,691.74 244955 12/13/11 200.00 244956 12/13/11 126.00 244957 12/13/11 54.00 244958 12/13/11 132.73 244959 12/13/11 24,698.10 244960 12/13/11 768.97 244961 12/13/11 699.49 244962 12/13/11 93.16 244963 12/13/11 1,672.44 244964 12/13/11 18, 388.56 244965 12/13/11 20.78 244 966 12/13/11 8, 759.07 244967 12/13/11 2,474.19 244968 12/13/11 332.34 244969 12/13/11 9,462.82 244970 12/13/11 154.82 244971 12/13/11 475.00 244972 12/13/11 2.72 244973 12/13/11 14, 385. 00 244974 12/13/11 598.13 244975 12/13/11 3,936.80 244976 12/13/11 115.50 244977 12/13/11 2,626.40 244 97 8 12/13/11 460.98 244979 12/13/11 410.00 244980 12/13/11 786.14 244 981 12/13/11 217.00 244982 12/13/11 257.46 244983 12/13/11 491.88 244984 12/13/11 5,389.02 244985 12/13/11 19, 425.97 244986 12/13/11 459.55 FAYEE VWR SCIENTIFIC WAXIE SANITARY SUPPLY WESTFLEX INDUSTRIAL WILLY'S ELECTRONIC SUPPLY ZENGOTA HDL COREN & CONE HDL COREN & CONE WIRED PAYMENTS TRISTAR RISK MANAGEMENT PAYROLL Pay period Start Date 25 11/15/2011 NAN 7111-cOnrOR WARRANT REGISTER #24 12/13/2011 DESCRIPTION INV: 47075019 / POLICE LAB SUPPLIES JANITORIAL SUPPLIES MOP 63850 AUTO PARTS MOP 45763 AUTO PARTS REMB/REG FINANCIAL MGMT TRAINING 2010-11 SEC/UNSECURED AUDIT REC CONTRACT SVC PROP TAX OCT-DEC11 NOV 2011 WC REPLENISHMENT End Date 11/28/2011 Check Date 12/7/2011 4/4 CHK NO DATE AMOUNT 244987 12/13/11 759.72 244988 12/13/11 1,720.37 244989 12/13/11 15.37 244990 12/13/11 28.39 244991 12/13/11 180.61 244992 12/13/11 68,805.63 244993 12/13/11 2,400.00 A/P Total 36806664 12/13/11 888,452.73 67,839.66 952,641.25 GRAND TOTAL $ 1,908,933.64 Ce; t3 ration 'CORDANCE WITH SECTION 37202, 37208, 372059 OF THE GOVERNMENT CODE, WE ' "ERTIFY TO THE ACCURACY OF THE DEMANDS LISTED ABOVE AND TO THE , OF FUNDS FOR THE PAYMENT THEREOF AND FURTHER THAT THE ABOVE CLAIMS AND DEMANDS HAVE BEEN AUDITED AS REQUIRED BY LAW. FINANCE CI"FY 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 24th OF JANUARY, 2012. AYES NAYS ABSENT CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: January 24, 2012 AGENDA ITEM NO. 11 _M TITLE: Public Hearing — Conditional Use Permit for Public Assembly and a Tattoo Studio at Sweetwater Harley Davidson located at 3201 Hoover Avenue (Applicant Anastasia Polies) (Case File 2011-28 CUP) J/ V L— PREPARED BY: Martin Reeder DEPARTMENT: Devels/Planning. PHONE: 336-4313 APPROVED BY: EXPLANATION: The applicant is proposing to use the Sweetwater Harley Davidson building, including the showroom, parking lot, and roof deck for public assembly uses, including banquets, parties, and car shows on a more permanent basis, rather than obtain a TUP every time. The applicant is also proposing to operate a tattoo studio in an existing office located in the sales floor area. The attached background report describes the proposal in more detail. FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: APPROVED: ENVIRONMENTAL REVIEW: Categorically Exempt pursuant to Class 1 Section 15301 (Existing Facilities) ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Staff concurs with the decision of the Planning Commission and recommends that the Conditional Use Permit be approved. BOARD / COMMISSION RECOMMENDATION: The Planning Commission approved the Conditional Use Permit. Ayes: Alvarado, DeLaPaz, Farias, Flores, Pruitt, Reynolds Absent: Baca ATTACHMENTS: Background Report Recommended Findings for Approval 3. Recommended Conditions 4. Location Map 6. Public Hearing Notice 7. Notice of Exemption 8. Site Photos 9. Applicants Plans BACKGROUND REPORT The project site is an approximately 81,000 square -foot lot developed with a 42,640 ,r;.'are-foot motorcycle sales facility (Sweetwater Harley Davidson) that has a roughly ''00 square -foot roof deck atop the showroom building. The property has 99 on -site ng spaces (43 automobile spaces and 56 motorcycle spaces) and is located in the Light Industrial (IL) zone. The site is also located within the Coastal Zone overlay. Sweetwater Harley Davidson is open 7 days a week and employs 38 people. Since the construction of the facility, Sweetwater Harley Davidson has conducted numerous events at this location. All events have typically been approved on a temporary basis utilizing the Temporary Use Permit (TUP) process. The recent Land Use Code Update is not active in the Coastal Zone. This is due to the fact that the necessary changes in the City's Local Coastal Plan have not been approved by the Coastal Commission. Therefore, the City's previous zoning would generally apply. In this case, the zone would have been ML-CZ (Light Manufacturing — Coastal Zone) — essentially the same zone. The applicant is proposing to use the Sweetwater Harley Davidson building, including the showroom, parking lot, and roof deck for public assembly uses, including banquets, parties, and car shows on a more permanent basis, rather than obtain a TUP every time. Not only are multiple TUPs more expensive for the applicant, a constantly reoccurring 'temporary' event does not meet the spirit and intent of a temporary use. As part of this CUP, the applicant is also proposing to operate a tattoo studio in an existing office located in the sales floor area. The studio would be accessible through an independent door leading only to the studio. The area would be accessible via a door in the south wall of the sales area. Public Assembly uses are permitted in the IL zone with the issuance of a Conditional Use Permit (CUP). This type of use was considered a 'banquet facility' under the previous Land Use Code and also required a CUP. Typical concerns with public assembly include parking, noise, and building occupancy. The building was constructed in 2006 and included the roof deck that was approved for an assembly use. As noted above, the facility has conducted numerous events since its opening. Events are typically geared towards parties or organized gatherings, and often incorporate fundraising activities for local charities. The events often draw crowds in the hundreds. The roof deck has a maximum occupancy of 300 people and is approved for assembly use. This maximum will not change. The showroc; . maximum occupancy of 587 people and is not approved for assembly use (mercantile use only). In order to allow assembly in this area, a change of occupancy permit is required. Conditions of Approval from the Building Division address this requirement. Even when changed the maximum occupancy of the showroom would remain at 587 i The on -site parking requirement for public assembly use is generally 1 space per 35 square feet of seating area. The total area requested to be part of the project, including the cho\itiroom floor and roof deck, is over 20,000 square feet, which would require in excess of 700 parking spaces. However, given that there is no real seating area and most of the showroom (17,000 square feet) is dedicated to motorcycles and retail items, the actual assembly area would be significantly less. Furthermore, the only difference between an event and a busy sales day (with regard to the number of people) would be the type of occupancy (mercantile vs. assembly). Therefore, it could be foreseeable that the maximum occupancy could be attained under normal circumstances. In addition to the 99 on -site parking spaces, there is ample area off -site for street parking of vehicles, especially for motorcycles, which require much less space to park than automobiles. Furthermore, most area businesses are not open in the evening and on weekends, when most events take place. Conditions of Approval are included that regulate occupancy, access to the site, security, and emergency egress/ingress. Both the Fire Department and Building Division provided multiple comments, all of which have been incorporated as Conditions of Approval. Under the previous Land Use Code, a `tattoo parlor' was allowed under Use Group 19 — Goods and Services Other. This use group was allowed by right in the ML zone; however, the applicant has voluntarily included the tattoo use in their CUP application. The current Land Use Code regulates tattoo businesses as follows: • Shall not be located within one -mile of another such establishment. • Shall be located no less than 1,000 feet from a church, school, or playground. • Shall be no closer than 250 feet from a residential zone. • Shall not be located east of Interstate 805. • A CUP is required for all tattoo and body -piercing establishments. All of the above requirements are met with regard to Sweetwater Harley Davidson. Tattoo parlors are further regulated by Chapter 9.54 of the National City Municipal Code. This section refers to the San Diego County Code of Regulatory Ordinances (Department of Health) as the regulatory provisions applicable to tattoo artists, tattoo parlors and mobile tattoo vehicles within the City. Condition No. 29 requires compliance with these regulations. Concerns with tattoo shops usually focus on community character, particularly in cases of concentration of such uses. However, there is currently only one other tattoo shop in the City, which is located in Westfield Plaza Bonita. In addition, the tattoo studio would 2 he located within an existing building in an industrial area and not visible from the exterior. Ir addition to those mentioned above, Conditions of Approval have been included that require compliance with all Municipal Code requirements related to tattoos; and no consumption, or distribution of alcohol without either modifying this CUP or obtaining necessary Alcoholic Beverage Control (ABC) daily permits (for catered events). Staff also requested calls for service data from the Police Department. There were only 3 calls for service related to parties or music since January 2007. To address potential noise or disturbance issues, condition no. 28 requires that any sound -producing equipment used for events (especially on the roof deck) be oriented away from the nearest residential area (over a quarter -mile away) and that all requirements of Title 12 of the Municipal Code related to Noise be observed. The proposed use of the property as a public assembly facility is consistent with the Land Use Code with the approval of a Conditional Use Permit. The potential impacts are minimal given the remote location, since the site is within an existing building or in an area designed and used as such, and parking is available on -site and on adjacent city streets. Furthermore, the lot is surrounded by industrial uses and is near the intersection of two freeways. Likewise, a tattoo use is consistent with a motorcycle dealership, in that (according to the applicant) many patrons of this Harley Davidson dealership have and/or may be interested in tattoos. Operating a tattoo studio will allow the business to expand its offerings, thus adding to their profitability. 3 RECOMMENDED FINDINGS FOR APPROVAL 2011-28 CUP, 3201 Hoover Avenue Thal. the site for the proposed use is adequate in size and shape, since the mmn'sed use will be within an existing building and upon a roof deck designed for s�.icl use, and since no expansion of the building is proposed. 2. That the site has sufficient access to streets and highways that are adequate in width and pavement type to carry the volume of traffic generated by the proposed use, since the site was developed for and has been historically been used for public assembly use, since the proposed use involves no expansion, and since a tattoo studio is not expected to draw a significant number of additional patrons. 3. That the proposed use will not have an adverse effect upon adjacent or abutting properties, since the building is located in an industrial zone, near a freeway, and away from any residential areas. That the proposed use is deemed essential and desirable to the public convenience, since it will allow the business to expand its services, thus increasing profitability and the chances for success. 4 RECOMMENDED CONDITIONS OF APPROVAL 2011-28 CUP, 3201 Hoover Avenue General 1 this Conditional Use Permit authorizes public assembly and a tattoo studio at 3201 ,aver Avenue. Except as required by Conditions of Approval, all plans submitted for permits associated with the project shall conform to Exhibit A, Case File No. 2011-28 CUP, dated 10/27/2011. 2. 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 Planning Division 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 City Manager or designee prior to recordation. 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. Within four (4) days of approval, pursuant to Fish and Game Code 711.4 and the California Code of Regulations, Title 14, Section 753.5, the applicant shall pay all necessary environmental filing fees for the San Diego County Clerk. Checks shall be made payable to the County Clerk and submitted to the National City Planning Department. Building 5. Plans submitted for construction shall comply with the 2010 editions of the California Building, Electrical, Mechanical, Plumbing, Energy, Fire, Residential and Green Codes. 6. Use of the roof deck may be continued provided that: a. No alterations, modifications, additions, or enlargements to any part of the structure may be made, including anything attached to the roof, deck, or sides of the structure, without first obtaining a building permit. b. The maximum occupancy load of the roof deck is and shall be maintained at 300 people. c. No assembly is permitted in the mercantile area and no commingling or the root deck and mercantile area is permitted without obtaining a permit for = occupancy from the Building Division. 5 d. If a change in occupancy from mercantile to mercantile/assembly use is granted, the maximum occupancy of the lower level will be nor more than 587 people. e The applicant shall submit and have approved a floor plan showing the emergency path of travel from the roof deck, through the mercantile area, and to the public right - ay. f. All exit doors on both floors must be available for emergency exiting from assembly areas. Fire 7. Plans submitted for construction shall comply with the 2010 edition of the California Fire Code and the 2010 edition of National Fire Protection Association (NFPA) Codes and Standards. 8. Access to the street, both entrances, and Fire Department connections for fire sprinkler systems, standpipes, etc shall be maintained at all times. 9. Fire Department access into and through event areas shall 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. 10. Access to the building shall be maintained at all times. Access to all entrances, fire sprinkler systems, standpipes, fire hydrants, and Fire Department connections shall be maintained in all areas and at all times. 11. Event participants on foot shall move immediately to the sidewalk upon approach of any emergency vehicle(s). 12. Vehicles in the roadways are to move immediately to the right upon approach of any emergency vehicle(s). 13. Fire extinguishers shall be mounted in a visible location between 3'/ and 5 feet from the floor to the top of the extinguisher. The maximum travel distance from an extinguisher shall not be more than 75 feet. Required fire extinguishers shall not be obstructed and signs shall be posted above the extinguishers so as to indicate their exact location. 14. No cooking or heating of food (Sterno) shall be done inside of the building. 15. All linen used for this event which may include, but not be limited to, napkins, tablecloths, couches, chair covers etc., shall meet California State Fire Marshal requirements for flame spread and smoke propagation. Proof and documentation of this requirement shall be provided to the National City Fire Department prior to all events where this applies. 16.The showroom floor is designed and categorized as a mercantile occupancy. Approval shall be granted from the National City Building Official in order to use tl pis space as assembly occupancy. 17. The allowable occupancy load shall be posted on the showroom floor per California Building Code Standards. A permanent occupancy card shall be posted on the roof 6 top assembly area. Please contact the National City Building Official for direction and field placement. 18. Security shall be provided for events. Security shall control the occupancy load of the event and shall provide the allowable occupancy number to City Officials upon request. t y. A map and/or diagram shall be provided to the National City Fire Department describing the floor layouts for proposed events. Layouts shall include placement of tables, props etc. The floor plans shall also describe exits, elevator, and fire suppression systems throughout the building. 20. Exit signs shall be illuminated with green lettering per National City Ordinance and shall provide adequate direction towards available exits. 21. At no time shall tents or canopies be allowed inside of the showroom area. 22. If 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 exceeding the above stated areas are to be used, they shall be constructed of flame-retardant material. Tents and canopies shall have an approved State Fire Marshal seal attached. 23.A ten -foot separation distance must be maintained between tents, canopies, and/or between tents and canopies. 24. No cooking shall be permitted under tents or canopies. 25.A permit must be obtained from the Fire Department for all tents and canopies used for events. 26. The National City Fire Department may charge an after hours inspection due to events being held at Sweetwater Harley Davidson. The National City Fire and Building Departments shall review all submitted floor plans for approval. Please contact the National City Fire Department and Building Division for additional requirements and assistance. Planning 27.This approval does not include the sale, consumption, or distribution of alcohol products in association with any public or private events. No such use is permitted without modification of this Conditional Use Permit or unless appropriate short-term alcohol sales permits are procured from the Department of Alcoholic Beverage Control (ABC) by a licensed catering company. 28.All activities on site shall conform with Title 12 of the National City Municipal Code. Any amplification or other sound producing equipment shall be oriented away from the nearest residences or residential areas. 29.AII tattooing activities shall conform with Title 9.54 of the National City ^^ 3n;cirF! Code and with Title 6, Division 6, Chapter 3 (commencing with Section 66.301) of the San Diego County Code of Regulatory Ordinances, as now in effect or as may 7 hereafter be amended, as the regulatory provisions applicable to tattoo artists, tattoo parlors and mobile tattoo vehicles within the city of National City. tattooing and body piercing activities shall conform with Chapter 18.30.030 of the National City Land Use Code. 8 1 Subject Parcel — — — Zone Boundary I-1 1 I Feet 0 75 150 300 APN: 662-330-21 Planning Commission Location Map 2011-28 CUF' QORPORAT - CITY OF NATIONAL CITY - DEVELOPMENT SERVICES DEPARTMENT 1.243 NATIONAL CITY BLVD., NATIONAL CITY, CA 91950 NOTICE OF PUBLIC HEARING CONDITIONAL USE PERMIT FOR PUBLIC ASSEMBLY AND A TATTOO STUDIO AT SWEETWATER HARLEY DAVIDSON LOCATED AT 3201 HOOVER AVENUE. CASE FILE NO.: 2011-28 CUP APN: 562-330-21 The National City Planning Commission will hold a public hearing after the hour of 6:00 p.m. Monday, December 5, 2011, in the City Council Chambers, Civic Center, 1243 National City Boulevard, National City, California, on the proposed request. (Applicant: Anastasia Polies) The applicant is proposing to use the Sweetwater Harley Davidson building, including the showroom, parking lot, and roof deck for public assembly uses, including banquets, parties, and car shows. 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., December 5, 2011, who can be contacted at 619-336-4310 or planninq(a nationalcityca.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 10 CITY OF NATIONAL CITY - DEVELOPMENT SERVICES DEPARTMENT 1243 NATIONAL CITY BLVD., NATIONAL CITY, CA 91950 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: 2011-28 CUP Project Location: 3201 Hoover Avenue, 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 public assembly use and tattoo studio within an existing commercial building on an industrial property. Applicant: Anastasia Polies 3201 Hoover Avenue National City, CA 91950 Exempt Status: Telephone Number: (619) 921-5801 Categorical Exemption. Class 1 Section 15301 (Existing Facilities) Reasons why project is exempt: There is no possibility that the proposed use will have a significant impact on the environment since the facility will not result in the expansion of a previously existing use. The facility will operate within an existing building without the need for expansion or intensification of use. Date: MARTIN REEDER, Assistant Planner 11 2011-28 CUP —3201 Hoover Ave. — Sweetwater Harley Davidson — Site Photos Building Entrance looking east Rooftop deck looking west 12 Showroom area looking south 13 o'FP:ce 1 p s Sfa:,S Faye. EXHIBIT A CASE FILE NO. 2011-28 CUP DATE: 10/27/2011 i toa Tattoo C CC1-1to/i s 14 X X Y X 71 3 10 Cku,r NATIONAL CITY POLICE DEPARTMENT MEMORANDUM DATE: January 18, 2012 TO: Dr. Adolfo Gonzales, Chief of Police FROM: Julian Villagomez, Community Services Sergeant SUBJECT: Recommended Conditions for public or private events at the Harley Davidson Dealership. The following are recommended conditions of approval prior to TUP/CUP permits requested by the Harley Davidson Dealership located at 3201 Hoover Avenue. 1. Harley Davidson shall notify the National City Police Department in writing, 30-Days in advance of any hosted event. This includes private parties, gatherings, car and motorcycle shows and special events. 2. Hosted events where there will be the consumption or distribution of alcohol shall require a 30-Day advance written notice of the event to the National City Police Department in accordance with the approval/ permit of the Department of Alcoholic Beverage Control (ABC). The events catering company shall be a licensed catering business. 3. Large events require a Private Security company that is licensed and bonded for both armed and un-armed security personnel dependent on the event and the number of expected guests. Large groups are defined as groups or crowds of more than 50 people. Private Security personnel shall use the National City Police guidelines of "span and control" to ensure the safety and security of private security personnel and the events attendees. The private security company's name and certifications shall be forwarded in writing to the National City Police Department 30-Days in advance of the event. 4. All tattooing and body piercing activities shall conform to state, county and city laws and business permits. To ensure the integrity of the artists and tattoo parlor, a business log shall be kept to properly identify that all customers are of 18 years of age. The log shall include the customers name, date of birth, address and valid government issued identification as specified in National City Municipal Code Section NCMC 9.54. The customer log shall be available upon request to the National City Police Department. A copy of the customer log shall be forwarded to the National City Police Department on a monthly basis. 5. Should there be a consistent community or business complaint concerning issues of adequate parking along surface streets; during large events such as but not limited to car 09-07/MR and motorcycle shows, gatherings and special events; the National City Police Department requests the National City Traffic and Safety Committee review the overflow and impact of overflow parking onto City streets due to the hosted events. The Traffic and Safety Committee shall share their finding with the National City Police Department for any future enforcement considerations. 6. "No Loitering" signs shall be visible to the public at the entrances/exits of the Harley Davidson Dealership. 09-07/MR CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: January 24, 2012 AGENDA ITEM NO. 12 EM TITLE: Refer to Attachment 1, Item Title. PREPARED BY: Raymond Pe, Principal Planner PHONE: 336-4421 EXPLANATION: Refer to Attachment 2, Background Report. DEPARTMENT: Co APPROVED BY: Services FINANCIAL STATEMENT: ACCOUNT NO. Not Applicable ENVIRONMENTAL REVIEW: Not Applicable ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Hold the public hearing. BOARD / COMMISSION RECOMMENDATION: On January 9, 2012, the Planning Commission adopted Resolution 2-2012 recommending that the City Council adopt the General Plan Update including the General Plan Land Use Map, adopt the Land Use Code (Zoning) Amendment including the Official Zoning Map, adopt the Downtown Specific Plan Amendment including the Downtown Specific Plan Map, adopt the Climate Action Plan, and approve, in concept only, Five Development Proposals as components of the Comprehensive Land Use Update. ACHMENTS: 1) Item Title 2) Background Report 3) Other attachments are included on the attached CD and listed in the Background Report. Attachment 1 ITEM TITLE Hio hearing to consider rescinding City Council's Resolution 2011-119, which adopted 'vents of the National City Comprehensive Land Use Update, which included (1) an upuaie of the General Plan and land use map, (2) an amendment of the Downtown Specific Plan and specific plan map, (3) a Climate Action Plan, (4) Five Development Proposals in concept only (Street Conversions/Community Corridors, Senior Village Expansion, Las Palmas Park and Facilities Vision Concept Plan, Kimball Park Master Plan, and El Toyon Park Master Plan), and (5) Water Supply Assessment. Public Hearing to consider repealing City Council Ordinance No. 2011-2362, which adopted the Land Use Code (Municipal Code Title 18 Zoning) Amendment as part of the City Comprehensive Land Use Update. Public Hearing to consider Planning Commission's recommendations contained in Resolution 2-2012 which recommended City Council: certify the Final Environmental Impact Report, adopt a Statement of Overriding Considerations, adopt a Mitigation Monitoring and Reporting Program, adopt a General Plan Update including a General Plan Land Use Map Amendment, adopt a Land Use Code (Zoning) Amendment and Official Zoning Map Amendment, adopt a Downtown Specific Plan Amendment and Specific Plan Map Amendment, adopt a Climate Action Plan, and approve in concept only five development proposals, including Street Conversions/Community Corridors, Senior Village Expansion, Las Palmas Park and Facilities Vision Concept Plan, Kimball Park Master Plan, and El Toyon Park Master Plan. These recommendations were based, in part, on findings and a statement of overriding considerations set forth in Planning Commission's resolution. Proposed Change of Zone Boundaries or Classifications. The Land Use Code (Zoning) Amendment is a zoning regulation within the context of and adopted pursuant to the Land Use Code (Title 18 Zoning) of the National City Municipal Code. The Land Use Code and the associated Zoning Map implement the land use designations of the General Plan Land Use Map. Public Hearing to consider adopting a General Plan Update including a General Plan Land Use Map Amendment, adopting A Land Use Code (Zoning) Amendment including the Official Zoning Map, adopt A Downtown Specific Plan Amendment and Specific Plan Map Amendment, adopt a Climate Action Plan, approve, in concept only, five development proposals, including Street Conversions/Community Corridors, Senior Village Expansion, Las Palmas Park and Facilities Vision Concept Plan, Kimball Park Master Plan, and El Toyon Park Master Plan, and approve the Water Supply Assessment. These recommendations are based, in part, on findings and a statement of overriding considerations set forth in City Council's resolution and ordinance. CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: January 24, 2012 AGENDA ITEM NO. 12 EM TITLE: Refer to Attachment 1, Item Title. PREPARED BY: Raymond Pe, Principal Planner PHONE: 336-4421 EXPLANATION: Refer to Attachment 2, Background Report. DEPARTMENT: C APPROVED BY: y Services FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. Not Applicable APPROVED: ENVIRONMENTAL REVIEW: Not Applicable ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Hold the public hearing. BOARD / COMMISSION RECOMMENDATION: On January 9, 2012, the Planning Commission adopted Resolution 2-2012 recommending that the City Council adopt the General Plan Update including the General Plan Land Use Map, adopt the Land Use Code (Zoning) Amendment including the Official Zoning Map, adopt the Downtown Specific Plan Amendment including the Downtown Specific Plan Map, adopt the Climate Action Plan, and approve, in concept only, Five Development Proposals as components of the Comprehensive Land Use Update. ACHMENTS: 1) Item Title 2) Background Report 3) Other attachments are included on the attached CD and listed in the Background Report. Attachment 1 ITEM TITLE P :bIic hearing to consider rescinding City Council's Resolution 2011-119, which adopted 'vents of the National City Comprehensive Land Use Update, which included (1) an upaate of the General Plan and land use map, (2) an amendment of the Downtown Specific Plan and specific plan map, (3) a Climate Action Plan, (4) Five Development Proposals in concept only (Street Conversions/Community Corridors, Senior Village Expansion, Las Palmas Park and Facilities Vision Concept Plan, Kimball Park Master Plan, and El Toyon Park Master Plan), and (5) Water Supply Assessment. Public Hearing to consider repealing City Council Ordinance No. 2011-2362, which adopted the Land Use Code (Municipal Code Title 18 Zoning) Amendment as part of the City Comprehensive Land Use Update. Public Hearing to consider Planning Commission's recommendations contained in Resolution 2-2012 which recommended City Council: certify the Final Environmental Impact Report, adopt a Statement of Overriding Considerations, adopt a Mitigation Monitoring and Reporting Program, adopt a General Plan Update including a General Plan Land Use Map Amendment, adopt a Land Use Code (Zoning) Amendment and Official Zoning Map Amendment, adopt a Downtown Specific Plan Amendment and Specific Plan Map Amendment, adopt a Climate Action Plan, and approve in concept only five development proposals, including Street Conversions/Community Corridors, Senior Village Expansion, Las Palmas Park and Facilities Vision Concept Plan, Kimball Park Master Plan, and El Toyon Park Master Plan. These recommendations were based, in part, on findings and a statement of overriding considerations set forth in Planning Commission's resolution. Proposed Change of Zone Boundaries or Classifications. The Land Use Code (Zoning) Amendment is a zoning regulation within the context of and adopted pursuant to the Land Use Code (Title 18 Zoning) of the National City Municipal Code. The Land Use Code and the associated Zoning Map implement the land use designations of the General Plan Land Use Map. Public Hearing to consider adopting a General Plan Update including a General Plan Land Use Map Amendment, adopting A Land Use Code (Zoning) Amendment including the Official Zoning Map, adopt A Downtown Specific Plan Amendment and Specific Plan Map Amendment, adopt a Climate Action Plan, approve, in concept only, five development proposals, including Street Conversions/Community Corridors, Senior Village Expansion, Las Palmas Park and Facilities Vision Concept Plan, Kimball Park Master Plan, and El Toyon Park Master Plan, and approve the Water Supply Assessment. These recommendations are based, in part, on findings and a statement of overriding considerations set forth in City Council's resolution and ordinance. Attachment 2 BACKGROUND REPORT i:;aroc:uction On May 16, 2011, the Planning Commission adopted Resolution 14-2011, which recommended that the City Council certify the Final Environmental Impact Report, adopt a Statement of Overriding Considerations, adopt a Mitigation Monitoring and Reporting Program, and adopt the Comprehensive Land Use Update, which included a General Plan update, a Land Use Code amendment, a Downtown Specific Plan amendment, a Climate Action Plan, and five conceptual development proposals. The City Council subsequently certified the EIR, adopted a Statement of Overriding Considerations, adopted a Mitigation Monitoring and Reporting Program, and adopted the General Plan Update, Downtown Specific Plan Amendment, Climate Action Plan, and five conceptual development proposals on June 7, 2011, and adopted an ordinance adopting the Land Use Code Amendment on June 21, 2011. Prior to Planning Commission's May 16, 2011 public meeting, the City posted an agenda announcing the Planning Commission's consideration of the Comprehensive Land Use Update, and provided a non -mandatory copy of the agenda on the City's website. The City also posted a Notice of Public Hearing for the Planning Commission's May 16, 2011 meeting, which contained a more detailed listing of the components of the Comprehensive Land Use Update, in four public locations in the City Hall complex, including the same two notice boards in the City Hall complex where the Planning Commission's agenda was posted. This Notice was also published in a newspaper of general circulation in the City ten days prior to the Planning Commission hearing. On July 28, 2011, Community Youth Athletic Center and Victor Nunez filed a complaint seeking to invalidate all actions based upon Resolution 14-2011. The complaint alleged that the agenda for the May 16, 2011 Planning Commission agenda violated the Ralph M. Brown Act because it did not separately list all of the individual elements of Comprehensive Land Use Update considered by the Planning Commission. Based on the complaint and a subsequent motion by the plaintiffs, the Superior Court granted a limited preliminary injunction on November 10, 2011. The limited injunction restricts the City only from using the amendments to the General Plan, Land Use Code, and Downtown Specific Plan as a basis for making findings of physical blight within the Redevelopment Project Area. However, the Court's ruling gives a preliminary indication that the Court believes that a violation of the Brown Act may have occurred. There are substantial questions as to whether the plaintiffs would prevail at trial on their Brown Act claim. However, In the interest of caution and to minimize further expenditure of City funds in litigation and to provide additional opportunities for public participation, the City has elected to re -notice, re-agendize, and hold hearings related to the various components of the Comprehensive Land Use Update. On January 9, 2012, the Planning Commission rescinded its prior Resolution 14-2011 and adopted a new Resolution 2-2012 at the hearing. The City Council may readopt any and all components of the Comprehensive Land Use Update v-i'.' change, adopt revisions to the Comprehensive Land Use Update components, or reject me Comprehensive Land Use Update or portions of it. With the exception of the Land Use Code, the contents of the proposed Comprehensive Land Use Update are unchanged from the documents reviewed and adopted by the City Council on Page 1 June 7 and June 21, 2011. The proposed Land Use Code contains several minor revisions to correct and clarify various provisions in the document that were not included in the previous recommendation. These proposed revisions are included in a final version of the LUC (Exhibit E. 1) as well as in a strikethrough and underline version (Exhibit B-2) with comments and reasons for the proposed changes. The changes to the LUC are not substantive and would not result in a substantial increase in severity of an environmental impact identified in the EIR. The proposed resolution would rescind the previous City Council Resolution No. 2011-119, which adopted components of the Comprehensive Land Use Update, including an update of the General Plan and Land Use Map, an amendment to the Downtown Specific Plan and the Specific Plan Map, a Climate Action Plan, and five conceptual development proposals, which include Street Conversions/Community Corridors, Senior Village Expansion, Las Palmas Park and Facilities Vision Concept Plan, Kimball Park Master Plan, and El Toyon Park Master Plan, and the Water Supply Assessment. Additional details and conceptual figures for the various components are described in the Project Description in the Environmental Impact Report (Exhibits E-2 and E-3). The proposed resolution would also adopt the General Plan Update and Land Use Designation Map, adopt a Downtown Specific Plan and the Specific Plan Map, adopt a Climate Action Plan, and approve, in concept only, five development proposals (including Street Conversions/Community Corridors, Senior Village Expansion, Las Palmas Park and Facilities Vision Concept Plan, Kimball Park Master Plan, and El Toyon Park Master Plan), and would approve the Water Supply Assessment. City Council actions on the five development proposals, which are conceptual in nature only, are not legally required at this time. The proposed ordinance would repeal the previous City Council Ordinance No. 2011-2362, which adopted the Land Use Code (Zoning) amendment and would adopt the Land Use Code (Zoning) amendment including the Official Zoning Map. Background The Comprehensive Land Use Update includes an update of the General Plan and the Land Use Code, an amendment of the Downtown Specific Plan, a Climate Action Plan, and five conceptual development proposals. The General Plan is the City's principal policy document to guide growth, development, and conservation and is the foundation for all planning decisions. The Land Use Code implements the broad policies of the General Plan by specifying the uses permitted on each parcel of land, the intensity of development, and standards for development. The Downtown Specific Plan regulates the use and development of land within the downtown area of the City. The Climate Action Plan establishes a strategy to reduce greenhouse gas emissions that contribute to climate change. The five conceptual development proposals are: Street Conversions/Community Corridors; Senior Village Expansion; Las Palmas Park and Facilities Vision Concept Plan; Kimball Park Master Plan; and El Toyon Park Master Plan. The Environmental Impact Report assesses the potential environmental consequences of implementation of the Comprehensive Land Use Update. Page 2 r :cral Plan Update State law recommends that the General Plan be updated every ten years or more often if -Pssary; the last comprehensive update was in 1996. The General Plan is required to €Gress seven elements: land use, circulation, housing, safety, noise, open space, and ration. The General Plan Update (Exhibit A) does not include an update of the 2007 Housing Element because the Regional Housing Needs Assessment (RHNA) was adopted by SANDAG after the preparation of General Plan Update. The next planning cycle for the Housing Element begins in January 2013. The other required elements and several optional elements are addressed in the update: Land Use and Community Character, Circulation, Safety, Noise and Nuisance, Open Space and Agriculture, Conservation and Sustainability, Health and Environmental Justice, and Education and Community Participation. Land Use and Community Character Element The Land Use and Community Character Element identifies where future development and redevelopment should occur. The element balances growth and change with preserving and improving established residential neighborhoods and commercial and industrial districts to improve the quality of life in the community. Three key concepts are reflected in the land use plan: smart growth, mixed -use, and transit -oriented development. Smart growth describes urban design principles that serve the economic, environmental, and social needs of the community. Characteristics of smart growth include a mix of land uses; compact building design; a range of housing opportunities; walkable neighborhoods; distinctive communities with a strong sense of place; the preservation of open space and critical environmental areas; and a variety of transportation choices. Mixed -use development is characterized by a variety of compatible uses such as office, commercial, institutional, and residential within the same building, on the same parcel, or on a group of parcels within the same block. Transit -oriented development is moderate- to higher -density development, located within an easy walk of a major transit stop, generally with a mix of residential, employment, and shopping opportunities designed for pedestrians. The element generally directs future development and redevelopment along major and minor transit corridors, within urban and community centers, and near transit stations. This is accomplished through an increase in allowable densities in these locations through the creation of mixed -use land use designations, which replace existing commercial designations. Other goals set forth in the element include: the discontinuance of incompatible land uses; the strengthening of neighborhoods; the improvement of business districts; and enhanced aesthetics through public art, the preservation of viewsheds, and the establishment of community gateways. Circulation Element The Circulation Element is a transportation plan for the movement of people and goods and identifies the general location and extent of existing and proposed major roadways, Page 3 transportation routes, terminals, ports, and pedestrian and bikeway facilities. The element addresses the needs of mobility through an integrated circulation network that accommodates local and regional trips and supports public transit, walking, bicycling, and vehicular traffic and Parking. The element identifies strategies to meet the future needs generated by the land uses identified in the Land Use and Community Character Element. A key focus of the element is the development of a multi -modal transportation system that serves pedestrians, bicyclists, transit riders, and drivers. Since the City is almost completely developed, few changes are being proposed to the overall roadway network. The element seeks to enhance the existing system to improve circulation through multi -modal facilities. The element identifies Community Corridors, which are a street type intended to increase the comfort of walking and bicycling through traffic calming measures, streetscape improvements, pedestrian amenities, and bicycle facilities. Safety Element The Safety Element establishes goals and policies to protect the community from risks of injury, loss of life, and property and environmental damage associated with hazards such as wildfires, geologic and seismic hazards, flooding, hazardous materials, military installations, and brownfields. The element establishes development policies for areas affected by potential hazard risk and seeks to minimize the risk associated with those hazards. This element also includes policies to reduce crime through environmental design and response objectives related to police and fire operations and emergency services. Noise and Nuisance Element Noise can affect the environment and quality of life in the community. This element identifies and assesses noise levels throughout the community and establishes policies to minimize problems from intrusive sound and to ensure that new development does not expose people to unacceptable noise levels. Traffic is the most significant source of noise in the planning area, and the surrounding freeways and major arterials are the most prevalent sources of traffic noise. Non -transportation -related sources of noise include military operations, industrial manufacturing, commercial, and institutional uses. The California Building Code applies noise standards to new construction to provide suitable interior noise environments. Noise also is regulated through compatibility guidelines in the Noise Element and the Noise Ordinance of the Municipal Code. The compatibility guidelines are used to evaluate land use noise compatibility when reviewing proposed development projects. The Municipal Code sets forth noise regulations for specific times of days and types of operations. A nuisance is an unreasonable or unlawful use of property which results in material annoyance, inconvenience, discomfort, or damage to another person or to the public. Types of nuisances include the storage of junk, accumulation of trash, and over -growth of weeds, and are generally regulated by the Municipal Code. This element describes the issues pertaining to nuisances in the community and provides policy direction for their remediation. Page 4 Oren Cpace and Agriculture Element The Open Space and Agriculture Element establishes policies on open -space lands, sensitive rns „ rce areas, parks and recreational facilities, trails, urban agriculture, and cultural sites. The diet nent identifies remaining natural, open space areas for preservation due to their ecological This element seeks to ensure that adequate park and recreational facilities are available L.nd accessible with policies that expand opportunities through the use of vacant or under used sites and rights -of -way. Urban agriculture includes the cultivation, processing, and distribution of fruits, vegetables, flowers, and herbs in an urban setting. Urban agriculture provides sources of fresh foods and opportunities for neighborhood collaboration through gardens and community farms. The element also identifies cultural and historical resources and sets forth policies for their preservation. Conservation and Sustainability Element The Conservation and Sustainability Element addresses the conservation, development, and use of natural resources and their sustainability. Sustainability is the concept of meeting the needs of current generations without compromising the ability of future generations to meet their own needs. This element establishes policies for water and energy conservation, water quality, waste reduction, recycling, and climate change. Major sources of greenhouse gas (GHG) emissions are affected by local policies; land use plans play an important role in reducing emissions by dictating land use patterns and the need for vehicular modes of travel. Health and Environmental Justice Element The Health and Environmental Justice Element addresses the built environment's impact on public health and environmental justice. The mix of uses within a community, the accessibility of transit, and the proximity of parks and recreational facilities affect physical activity, eating habits, and stress levels. This element establishes goals and policies to improve access to healthy foods, increase levels of physical activity, and improve overall public health. This element addresses exposure to poor air quality by separating sensitive receptors from sources of air pollution, reducing emissions, and incorporating design features in new development. The element also emphasizes the need for meaningful public participation in the development and implementation of plans and policies. Education and Public Participation Element The Education and Public Participation Element recognizes that improving educational opportunities for people of all ages is critical to enhancing quality of life and contributes to developing an active and informed citizenry. This element sets forth goals and policies that address educational programs, day care, after -school programs, library facilities, cultural arts, access to technology resources, occupational training, and life-long learning p•-( addition to public participation. The element encourages collaboration between the GIN =nc' local school districts to improve opportunities for learning in the community. The element ^ r emphasizes the importance of civic involvement and volunteerism to inform the public decision - making process and to foster pride and a greater sense of community. Page 5 Land Use Code The Land Use Code amendment (Exhibit B-1) includes the Official Zoning Map (Exhibit B-3) and has been updated to be consistent with and to implement the policies of the General Plan Jr,u 0., Land Use Code amendment introduces mixed use zones that generally apply to the major commercial corridors such as Plaza Boulevard and Highland Avenue. These zones allow development floor area ratios (FAR) of up to 2.0 or 3.5 and densities of up to 48 or 75 dwelling units per acre. Other major changes address neighborhood gardens and community farms, neighborhood corner stores, second dwelling units, emergency shelters, transitional and supportive housing, payday lenders, pawn shops and businesses purchasing gold and other precious metals, medical marijuana dispensaries, and auto body uses. Downtown Specific Plan Amendment The Downtown Specific Plan Amendment (Exhibit C-1) is a clean up amendment of Chapters IV and V and includes an amendment of the Downtown Specific Plan Map (Exhibit C-4) that is consistent with the General Plan Update. A strikethrough-underline version (Exhibit C-2) of the amended chapters and the previous Downtown Specific Plan Map (Exhibit C-3) are attached. The major changes include minimum floor area ratios (FAR) for development zones to insure an appropriate intensity of development within the downtown area. The amendment also clarifies permitted uses in each development zone and references development standards in the Land Use Code that would apply to certain development zones in the Downtown Specific Plan. Climate Action Plan The Climate Action Plan (Exhibit D) addresses climate change at the local level by implementing policies of the General Plan Update. The Climate Action Plan addresses the major sources of greenhouse gas emissions in the City and establishes a long-term strategy to achieve a reduction target of 15 percent below 2005/2006 emission levels by the year 2020 with additional reductions by 2030. Implementation measures address energy use and efficiency, renewable energy, land use and urban design, waste reduction, water conservation, transportation demand management, alternative transportation modes, financing mechanisms, and other measures. Development Proposals The Comprehensive Land Use Update includes conceptual plans for five future development proposals governing improvements of certain streets and parks within the City and future development of senior housing. The conceptual plans are fully described in the EIR project description. These conceptual plans and proposals consist of: • Street Conversions/Community Corridors include neighborhood gardens, produce stands, paradise creek greenway improvements, street trees, sitting areas, various other public amenities through the closure of portions of various streets near (1) Hoover Avenue south of 18th Street, (2) West Avenue between 16th Street and 18th Street, (3) Page 6 Hoover Avenue between 22nd Street and Mile of Cars Way, (4) 12th Street east of Palm Avenue, (5) F Avenue between 18th Street and 19th Street, (6) Kimball Way at F Avenue, and (7) Q Avenue between La Posada Street and Delta Street. The C- ;a nunity Corridors establish roadway design standards intended to calm traffic and ase pedestrian safety. Community Corridors are proposed throughout the City. • Senior Village Expansion includes an expansion to the existing Senior Village multi- family residential complex, to include 200 additional senior residential units up to 60 feet in height and construction of a medical office structure, and a parking structure. The project site is located between 12th Street and 15th Street east of D Avenue. • Las Palmas Park and Facilities Vision Concept Plan which includes a soccer field, expanded playground, skate park, trails, dog park/run, community garden plots, open space and lake/irrigation pond, parking spaces, improvements to the community center and pool house, and new commercial space and associated parking in the current location of the driving range. Kimball Park Master Plan which includes parking spaces, community garden plots, a trail, vegetation enhancements within paradise creek. • El Toyon Park Master Plan which includes an expanded playground, a joint use facility to include a fire station and community center, community garden plots, trails, a dog run, picnic area, and demolition of some existing structures. Public Participation The City sought out and incorporated public input throughout the two-year preparation of the Comprehensive Land Use Update. As part of the public outreach and participation efforts, the City held a number of public workshops, community meetings, and other public engagement events. During this period, a total of 23 community meetings were held at different locations throughout the City in addition to the public hearings before the Planning Commission and City Council. Environmental Impact Report The Environmental Impact Report (Exhibits E-2, E-3, and E-4) identifies potentially significant environmental impacts in the following areas: Air Quality, Biological Resources, Hazards, Hydrology and Water Quality, Land Use, Noise, Transportation and Circulation, and Utilities and Service Systems. The EIR suggests mitigation measures that would reduce most impacts to less -than -significant levels. However, significant unavoidable impacts were identified in the areas of Air Quality, Transportation and Circulation, and Utilities and Service Systems. The Final EIR (Exhibit E-2) responds to environmental issues raised on the Draft EIR E-3, E-4) and makes revisions to the Draft EIR as necessary in response to these comments. Revisions were incorporated into the General Plan Update in response to these comments. Various alternatives to the Comprehensive Land Use Update, including the development proposals, were also evaluated in the EIR. Page 7 Attachments The following exhibits are included in the attached CD. A) General Plan Update B-1) Land Use Code Amendment (Clean Version) B-2) Land Use Code Amendment (Strikethrough-Underline Version) B-3) Official Zoning Map Amendment C-1) Downtown Specific Plan Amendment (Clean Version) C-2) Downtown Specific Plan Amendment (Strikethrough-Underline Version) C-3) Downtown Specific Plan Map (Prior to June 7, 2011) C-4) Downtown Specific Plan Map (Adopted June 7, 2011) D) Climate Action Plan E-1) Statement of Overriding Considerations and Findings of Fact E-2) Final Environmental Impact Report E-3) Draft Environmental Impact Report E-4) Draft Environmental Impact Report Appendices F) Planning Commission Resolution 14-2011 G) Mitigation Monitoring and Reporting Program H) Planning Commission Resolution 2-2012 I) Water Supply Assessment J) Planning Commission Resolution 20-2011 K) Planning Commission Staff Report 1-9-2012 L) Draft City Council Ordinance M) Draft City Council Resolution N) Correspondence Received at Planning Commission Hearing 1-9-24 Note: The Five Conceptual Development Proposals are described in the Environmental Impact Report project description. Page 8 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: January 24, 2012 AGENDA ITEM NO. 13 EM TITLE: An Ordinance which (1) repeals City Council Ordinance 2011-2362 which adopted the Land Use (National City Municipal Code Title 18 Zoning), and (2) adopting an amendment of the Land Use Code (National City Municipal Code Title 18 Zoning) including the Official Zoning Map as a component of the Comprehensive Land Use Update. Case File No. 2011-17 GPA, ZC, SPA, IS. PREPARED BY: Raymond Pe, Principal Planned-, DEPARTMENT: C. ni ervices PHONE: 336-4421 APPROVED BY: EXPLANATION: This is a companion item to the public hearing (Agenda Item 12 ) on the Comprehensive Land Use Update, Case File No. 2011-17 GPA, ZC, SPA, IS. The ordinance would repeal the existing Land Use Code adopted in Ordinance 201-2362 (National City Municipal Code Title 18 Zoning) in its entirely and adopt the amended Land Use Code, which includes the Official Zoning Map, to implement the General Plan Update as a component of the Comprehensive Land Use Update. Notice is further given of proposed changes of zone boundaries and classifications. The background report to the companion item public hearing (Agenda Item 16) provides further explanation. FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. Not Applicable APPROVED: MIS ENVIRONMENTAL REVIEW: An Environmental Impact Report (State Clearinghouse Number 2010051009) was certified by the City Council pursuant to the California Environmental Quality Act and there have been no changes to the proposed project or substantial changes in circumstances or new information that would warrant subsequent or supplemental environmental analysis in accordance with CEQA, including Public Resources Code § 21166 and CEQA Guidelines §§ 15162 and 15163. ORDINANCE: INTRODUCTION: )( FINAL ADOPTION: Finance STAFF RECOMMENDATION: Review and consider Planning Commission's recommendations contained in Resolution 2-2012 and introduce, by title, the first reading of the proposed ordinance. BOARD / COMMISSION RECOMMENDATION: On January 9, 2012, the Planning Commission adopted Resolution 2-2012 recommending that the City Council adopt the General Plan Update including the General Plan Land Use Map, adopt the Land Use Code (Zoning) Amendment including the Official Zoning Map, adopt the Downtown Specific Plan Amendment including the Downtown Specific Plan Map, adopt the Climate Action Plan, and approve, in icept only, Five Development Proposals as components of the Comprehensive Land Use Update. rACHMENTS: Refer to the companion item public hearing (Agenda Item 12) for additional relevant attachments that are referenced in the proposed ordinance. ORDINANCE NO. 2012 — AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AMENDING TITLE 18 OF THE MUNICIPAL CODE APPROVING AND ADOPTING A LAND USE CODE AMENDMENT AND OFFICIAL ZONING MAP AMENDMENT, AND REPEALING ORDINANCE 2011-2362 WHEREAS, on May 16, 2011, the Planning Commission adopted Resolution No. 14-2011, recommending that the City Council approve the Comprehensive Land Use Update, including the Land Use Code amendments; and WHEREAS, litigation has been filed challenging the validity of the Planning Commission's recommendations in Resolution 14-2011, and any actions "based on" that resolution, which Plaintiffs contended at oral argument included the amendments to the General Plan, the Land Use Code, and the Downtown Specific Plan; and WHEREAS, the City now desires to take further action to eliminate any uncertainty over the validity of the Planning Commission's resolution and the City Council's subsequent approvals concerning the Comprehensive Land Use Update to avoid costs and further litigation, and to further provide maximum opportunities for public review and public participation in City actions concerning the Comprehensive Land Use Update; and WHEREAS, the Comprehensive Land Use Update includes a General Plan Update; a Land Use Code Amendment; a Downtown Specific Plan Amendment; a Climate Action Plan; and five conceptual development proposals, namely, Street Conversions/Community Corridors, Senior Village Expansion, Las Palmas Park and Facilities Vision Concept Plan, Kimball Park Master Plan, and El Toyon Park Master Plan; and WHEREAS, the City Council of the City of National City adopted a General Plan Update, including a land use map; adopted a Downtown Specific Plan including the Specific Plan Map amendment; adopted a Climate Action Plan; and adopted, in concept only, five development proposals, including Street Conversions/Community Corridors, Senior Village Expansion, Las Palmas Park and Facilities Vision Concept Plan, Kimball Park Master Plan, and El Toyon Park Master Plan, and the associated Water Supply Assessment at a duly noticed public hearing held on January 24, 2012, at which time oral and documentary evidence was presented; and WHEREAS, the General Plan establishes general land use policies for the planning area, and the Land Use Code (Title 18 Zoning of the Municipal Code) establishes specific land use regulations and development standards to implement the policies of the General Plan; and WHEREAS, the General Plan Land Use Map establishes the general distribution of land uses throughout the planning area, and the Official Zoning Map, which comprises part of Title 18 of the Municipal Code, identifies the specific zones that apply within and implement each General Plan land use designation; and WHEREAS, the proposed Land Use Code and Official Zoning Map, as amended, would implement the General Plan Update through zone classifications that establish the permitted uses on each parcel of land, the intensity of development allowed, and the standards for development; and WHEREAS, at a duly noticed public hearing held on January 9, 2012, the Planning Commission reviewed and considered the staff report contained in Case File No. 2011-17 GPA, ZC, SPA, IS, along with evidence and testimony presented at said hearing; and WHEREAS, at said hearing, the Planning Commission reviewed and considered the proposed Land Use Code and Official Zoning Map, as amended, along with all evidence and testimony presented at said hearing, and along with the Environmental Impact Report prepared to assess project impacts of approving the Land Use Code and Official Zoning Map, as amended, together with any comments received; and WHEREAS, prior to said hearing, the City sought out and incorporated public input throughout the preparation of the General Plan Update and the Land Use Code Update. As part of the public outreach and participation efforts, the City held a total of 23 public workshops, community meetings, and other public engagement events at different locations throughout the City, in addition to public hearings before the Planning Commission and City Council; and WHEREAS, at said hearing, the Planning Commission adopted Resolution No. 2-2012 recommending that the City Council adopt the Land Use Code and Official Zoning Map, as amended, and said resolution was transmitted forthwith to the City Council; and WHEREAS, a duly noticed public hearing was held by the City Council on January 24, 2012, at which time oral and documentary evidence was presented, including the recommendation of the Planning Commission, as well as the information contained in the Environmental Impact Report prepared to assess the potential environmental impacts resulting from approval of the Land Use Code and Official Zoning Map, as amended. NOW, THEREFORE, the City Council of the City of National City, California, does ordain as follows, that the above recitals are true and correct and are incorporated herein by reference as if set forth in full. FURTHER, THEREFORE, the City Council of the City of National City does ordain as follows, that the oral and documentary evidence presented to the City Council at the public hearing held on January 24, 2012, support the following Findings of Fact. 1. The City Council has reviewed and considered Planning Commission's recommendations on the Land Use Code (Zoning) and associated Zoning map contained in Planning Commission Resolutions 20-2011 and 2-2012. 2. The Land Use Code and Official Zoning Map, as amended, reflects the desired future vision of the City that was expressed by the community through the public participation process over the course of more than two years of development of the General Plan Update and the Land Use Code and Official Zoning Map Amendments. Ordinance No. 2012- 2 Land Use Code Amendment and Official Zoning Map Amendment Land Use Code and Official Zoning Map, as amended, is in the public interest since it would meet the current needs of the community by providing for the types of land uses that are necessary and desirable to the community. The Land Use Code and Official Zoning Map, as amended, is consistent with and 1mnhrnents the land use policies of the General Plan and the land use designations of one General Plan. 5. The Land Use Code and Official Zoning Map, as amended, are deemed essential and desirable to the public health, safety, and general welfare of the community since specific land use regulations, development standards, and the designations of locations and distribution of land uses are necessary to reduce conflicts and insure compatibility. 6. The environmental impacts of the Zoning and Zoning Map amendments were addressed in the Comprehensive Land Use Update EIR (SCH No. 2010051009). That the testimony and evidence presented to the City Council at the public hearing held on January 24, 2012 and the City Council hearing for the second reading of this Ordinance, support the Findings of Fact, Statement of Overriding Considerations, and the MMRP attached hereto as Exhibit "E-1" and Exhibit "G". The City further finds and certifies that there has been no change to the proposed project or substantial changes in circumstances or new information that would warrant subsequent or supplemental environmental analysis in accordance with CEQA, including Public Resources Code section 21166 and CEQA Guideline sections 15162 and 15163. FURTHER, THEREFORE, the City Council of the City of National City does ordain as follows, that Title 18 of the Municipal Code is hereby amended to read as set forth in Exhibit "B-1". FURTHER, THEREFORE, the City Council of the City of National City does ordain as follows, that the proposed Official Zoning Map is hereby approved and adopted as the Official Zoning Map of the City of National City, and is attached hereto as Exhibit "B-3" and incorporated herein by reference. FURTHER, THEREFORE, the City Council of the City of National City does ordain as follows, that Ordinance 2011-2362 is hereby repealed in its entirety. PASSED and ADOPTED this day of , 2011. Ron Morrison, Mayor ATTEST: APPROVED AS TO FORM: Michael R. Dalla, City Clerk Claudia Gacitua Silva City Attorney Ordinance No. 2012- 3 Land Use Code Amendment and Official Zoning Map Amendment CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: January 24, 2012 AGENDA ITEM NO. 14 EM TITLE: Resolution taking action on a Conditional Use Permit for Public Assembly and a Tattoo Studio at Sweetwater Harley Davidson located at 3201 Hoover Avenue (Applicant Anastasia Polies) (Case r' 23 •' ) DEPARTMENT: Deve I PREPARED BY: Martin Reeder PHONE: 336-4313 APPROVED BY: EXPLANATION: The City Council conducted a hearing on this item at the January 24, 2012 City Council meeting. The attached resolution is needed to take action on the item. s/Planning. FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: APPROVED: ENVIRONMENTAL REVIEW: Categorically Exempt pursuant to Class 1 Section 15301 (Existing Facilities) ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Adopt the Resolution BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: solution RESOLUTION NO. 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING A CONDITIONAL USE PERMIT FOR PUBLIC ASSEMBLY AND A TATTOO STUDIO AT SWEETWATER HARLEY DAVIDSON LOCATED AT 3201 HOOVER AVENUE WHEREAS, the Planning Commission considered a Conditional Use Permit for Public Assembly and a Tattoo Studio at Sweetwater Harley Davidson located at 3201 Hoover Avenue at a duly advertised public hearing held on December 5, 2011, at which time oral and documentary evidence was presented; and WHEREAS, at said public hearing, the Planning Commission considered the staff report contained in Case File No. 2011-28 CUP, maintained by the City and incorporated herein by reference along with evidence and testimony from said hearing; and WHEREAS, the Planning Commission voted to approve the Conditional Use Permit for Public Assembly and a Tattoo Studio at Sweetwater Harley Davidson located at 3201 Hoover Avenue by a unanimous vote in favor of approval; and WHEREAS, a Notice of Determination was before the City Council on January 10, 2012, and a public hearing was set for January 24, 2012; and WHEREAS, the City Council considered a Conditional Use Permit for Public Assembly and a Tattoo Studio at Sweetwater Harley Davidson located at 3201 Hoover Avenue at a duly advertised public hearing held on January 24, 2012, at which time oral and documentary evidence was presented; and WHEREAS, at said public hearing, the City Council considered the staff report contained in Case File No. 2011-28 CUP, maintained by the City and incorporated herein by reference along with evidence and testimony from said hearing; and WHEREAS, this action is taken pursuant to all applicable procedures required by state and City laws; and WHEREAS, the action recited herein is found to be essential for the preservation of public health, safety, and general welfare. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that the testimony and evidence presented to the City Council at the public hearing held on January 24, 2012, support the following findings: 1. That the site for the proposed use is adequate in size and shape, since the proposed use will be within an existing building and upon a roof deck designed for such use, and since no expansion of the building is proposed. 2. That the site has sufficient access to streets and highways that are adequate in width and pavement type to carry the volume of traffic generated by the proposed use, since the site was developed for and has historically been used for public assembly use, since the proposed use involves no expansion, and since a tattoo studio is not expected to draw a significant number of additional patrons. Resolution No. 2012 — January 24, 2012 Page Two 3. I hat the proposed use will not have an adverse effect upon adjacent or abutting properties, since the building is located in an industrial zone, near a freeway, and away from any residential areas. 4. That the proposed use is deemed essential and desirable to the public convenience, since it will allow the business to expand its services, thus increasing profitability and the chances for success. 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 public assembly and a tattoo studio at 3201 Hoover Avenue. Except as required by Conditions of Approval, all plans submitted for permits associated with the project shall conform to Exhibit "A", Case File No. 2011-28 CUP, dated October 27, 2011. 2. 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 Planning Division 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 City Manager or designee prior to recordation. 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 National City Municipal Code. 4. Within four (4) days of approval, pursuant to Fish and Game Code Section 711.4 and the California Code of Regulations, Title 14, Section 753.5, the applicant shall pay all necessary environmental filing fees for the San Diego County Clerk. Checks shall be made payable to the County Clerk and submitted to the National City Planning Department. BUILDING 5. Plans submitted for construction shall comply with the 2010 editions of the California Building, Electrical, Mechanical, Plumbing, Energy, Fire, Residential and Green Codes. .�-:; ,,No.2012— January 24, 2012 Page Ti irce LlsP of the roof deck may be continued provided that: a. No alterations, modifications, additions, or enlargements to any part of the structure may be made, including anything attached to the roof, deck, or sides of the structure, without first obtaining a building permit. b. The maximum occupancy load of the roof deck is and shall be maintained at 300 people. c. No assembly is permitted in the mercantile area and no commingling of the roof deck and mercantile area is permitted without obtaining a permit for a change in occupancy from the Building Division. d. If a change in occupancy from mercantile to mercantile/assembly use is granted, the maximum occupancy of the lower level will be no more than 587 people. e. The applicant shall submit and have approved a floor plan showing the emergency path of travel from the roof deck, through the mercantile area, and to the public right-of-way. f. All exit doors on both floors must be available for emergency exiting from assembly areas. FIRE 7. Plans submitted for construction shall comply with the 2010 edition of the California Fire Code and the 2010 edition of National Fire Protection Association (NFPA) Codes and Standards. 8. Access to the street, both entrances, and Fire Department connections for fire sprinkler systems, standpipes, etc., shall be maintained at all times. 9. Fire Department access into and through event areas shall 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. 10. Access to the building shall be maintained at all times. Access to all entrances, fire sprinkler systems, standpipes, fire hydrants, and Fire Department connections shall be maintained in all areas and at all times. 11. Event participants on foot shall move immediately to the sidewalk upon approach of any emergency vehicle(s). 12. Vehicles in the roadways are to move immediately to the right upon approach of any emergency vehicle(s). Resolution No. 2012 — January 24, 2012 Pane Four 13. Fire extinguishers shall be mounted in a visible location between 31/2 and 5 feet from the floor to the top of the extinguisher. The maximum travel distance from an extinguisher shall not be more than 75 feet. Required fire extinguishers shall not be obstructed and signs shall be posted above the extinguishers so as to indicate their exact location. 14. No cooking or heating of food (Sterno) shall be done inside of the building. 15. All linen used for this event which may include, but not be limited to, napkins, tablecloths, couches, chair covers, etc., shall meet California State Fire Marshal requirements for flame spread and smoke propagation. Proof and documentation of this requirement shall be provided to the National City Fire Department prior to all events where this applies. 16. The showroom floor is designed and categorized as a mercantile occupancy. Approval shall be granted from the National City Building Official in order to use this space as assembly occupancy. 17. The allowable occupancy load shall be posted on the showroom floor per California Building Code Standards. A permanent occupancy card shall be posted on the roof top assembly area. Please contact the National City Building Official for direction and field placement. 18. Security shall be provided for events. Security shall control the occupancy load of the event and shall provide the allowable occupancy number to City Officials upon request. 19. A map and/or diagram shall be provided to the National City Fire Department describing the floor layouts for proposed events. Layouts shall include placement of tables, props, etc. The floor plans shall also describe exits, elevator and fire suppression systems throughout the building. 20. Exit signs shall be illuminated with green lettering per National City Ordinance, and shall provide adequate direction towards available exits. 21. At no time shall tents or canopies be allowed inside of the showroom area. 22. If 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 exceeding the above -stated areas are to be used, they shall be constructed of flame-retardant material. Tents and canopies shall have an approved State Fire Marshal seal attached. 23. A ten -foot -separation distance must be maintained between tents, canopies, and/or between tents and canopies. 24. No cooking shall be permitted under tents or canopies. 25. A permit must be obtained from the Fire Department for all tents and canopies used for events. Pesolution No. 2012 — January 24, 2012 Page Five hi National City Fire Department may charge an after-hours inspection fee due to events being held at Sweetwater Harley Davidson. The National City Fire and Building Departments shall review all submitted floor plans for approval. Please contact the National City Fire Department and Building Division for additional requirements and assistance. PLANNING 27. This approval does not include the sale, consumption or distribution of alcohol products in association with any public or private events. No such use is.permitted without modification of this Conditional Use Permit or unless appropriate short-term alcohol sales permits are procured from the Department of Alcoholic Beverage Control (ABC) by a licensed catering company. 28. All activities on site shall conform with Title 12 of the National City Municipal Code. Any amplification or other sound producing equipment shall be oriented away from the nearest residences or residential areas. 29. All tattooing activities shall conform with Title 9.54 of the National City Municipal Code and with Title 6, Division 6, Chapter 3 (commencing with Section 66.301) of the San Diego County Code of Regulatory Ordinances, as now in effect or as may hereafter be amended, as the regulatory provisions applicable to tattoo artists, tattoo parlors, and mobile tattoo vehicles within National City. 30. All tattooing and body piercing activities shall conform with Chapter 18.30.030 of the National City Land Use Code. BE IT FURTHER RESOLVED that copies of this Resolution shall be transmitted forthwith to the applicant. BE IT FURTHER RESOLVED that this Resolution shall become effective and final on the day following the City Council meeting where the Resolution is adopted. The time within which judicial review of this decision may be sought is governed by the provisions of Code of Civil Procedure Section 1094.6. PASSED and ADOPTED this 24th day of January, 2012. 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: January 24, 2012 AGENDA ITEM NO. 15 M TITLE: A Resolution which (1) rescinds City Councils Resolution 2011-119 which adopted/approved components of the National City Comprehensive Land Use Update, including (A) an update of the General Plan and Land Use Map, (B) an amendment of the Downtown Specific Plan and Specific Plan Map, (C) a Climate Action Plan, (D) Five Development Proposals in concept only, including Street Conversions/Community Corridors, Senior Village Expansion, Las Palmas Park and Facilities Visiion Concept Plan, Kimball Park Master Plan and El Toyon Park Master Plan, and (E) the Water Supply Assessment, and (2) adopts a General Plan Update including a General Plan Land Use Map Amendment; adopting a Downtown Specific Plan Amendment and Downtown Specific Plan Map Amendment; adopting a Climate Action Plan; approving, in concept only, five development proposals, including Street Conversions/Community Corridors, Senior Village Expansion, Las Palmas Park and Facilities Vision Concept Plan, Kimball Park Master Plan, and El Toyon Park Master Plan; and approving the Water Supply Assessment. Case File No. 2011-17 GPA, ZC, SPA, IS. PREPARED BY: Raymond Pe, Principal Planner� PHONE: 336-4421 DEPARTMENT: C, APPROVED BY: ervices EXPLANATION: This is a companion item to the public hearing (Agenda Item 12) on the Comprehensive Land Use Update, Case File No. 2011-17 GPA, ZC, SPA, IS. The resolution would rescind previous City Council actions as described in the previous section, and adopts the General Plan Update including the General Plan Land Use Map Amendment; adopts the Downtown Specific Plan Amendment and the Downtown Specific Plan Map Amendment; adopts the Climate Action Plan; approve, in concept only, five development proposals, including Street ^^aversions/Community Corridors, Senior Village Expansion, Las Palmas Park and Facilities Vision Concept 1, Kimball Park Master Plan, and El Toyon Park Master Plan; and approves the Water Supply Assessment. background report to the companion item public hearing (Agenda Item 16) provides further explanation. FINANCIAL STATEMENT: ACCOUNT NO. Not Applicable ENVIRONMENTAL REVIEW: An Environmental Impact Report (State Clearinghouse Number 2010051009) was certified by the City Council pursuant to the California Environmental Quality Act and there have been no changes to the proposed project or substantial changes in circumstances or new information that would warrant subsequent or supplemental environmental analysis in accordance with CEQA, including Public Resources Code § 21166 and CEQA Guidelines §§ 15162 and 15163. ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Review and consider Planning Commission's recommendations contained in Resolution 2-2012 and adopt the proposed resolution. BOARD / COMMISSION RECOMMENDATION: On January 9, 2012, the Planning Commission adopted Resolution 2-2012 recommending that the City Council adopt the General Plan Update including the General Plan Land Use Map, adopt the Land Use Code (Zoning) Amendment including the Official Zoning Map, adopt the Downtown Specific Plan Amendment including the Downtown Specific Plan Map, adopt the Climate Action Plan, and approve, in cept only, Five Development Proposals as components of the Comprehensive Land Use Update. ACHMENTS: Refer to the companion item public hearing (Agenda Item 12) for additional relevant attachments that are referenced in the proposed resolution. RESOLUTION NO. 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ^•fOPTING A GENERAL PLAN UPDATE, INCLUDING A GENERAL PLAN LAND USE MAP AMENDMENT; ADOPTING A DOWNTOWN SPECIFIC PLAN AMENDMENT, 'AND SPECIFIC PLAN MAP AMENDMENT; ADOPTING A CLIMATE ACTION PLAN; APPROVING, IN CONCEPT ONLY, FIVE DEVELOPMENT PROPOSALS, INCLUDING STREET CONVERSIONS/COMMUNITY CORRIDORS, SENIOR VILLAGE EXPANSION, LAS PALMAS PARK AND FACILITIES VISION CONCEPT PLAN, KIMBALL PARK MASTER PLAN, AND EL TOYON PARK MASTER PLAN; APPROVING THE WATER SUPPLY ASSESSMENT, AND RESCINDING RESOLUTION NO. 2011-119 CASE FILE NO. 2011-17 GPA, ZC, SPA, IS WHEREAS, the City has held a total of 23 community workshops/meeting regarding the Comprehensive Land Use Update ("CLUU"); and WHEREAS, on May 16, 2011, the Planning Commission adopted Resolution No. 14-2011, recommending that the City Council approve the Comprehensive Land Use Update; and WHEREAS, litigation has been filed challenging the validity of the Planning Commission's recommendations in Resolution 14-2011, and any actions "based on" that resolution, which Plaintiffs contended at oral argument included the amendments to the General Plan, the Land Use Code, and the Downtown Specific Plan; and WHEREAS, the City now desires to take further action to eliminate any uncertainty over the validity of the Planning Commission's Resolution and the City Council's subsequent approvals concerning the Comprehensive Land Use Update, to avoid costs and further litigation, and to further provide maximum opportunities for public review and public participation in City actions concerning the Comprehensive Land Use Update; and WHEREAS, the Planning Commission of the City of National City again reviewed and considered a Final Environmental Impact Report, Findings, Mitigation Monitoring and Reporting Program ("MMRP"), and Statement of Overriding Considerations prepared to assess and mitigate the project impacts from the proposed adoption of components of the Comprehensive Land Use Update, at a duly advertised public hearing held on January 9, 2012, at which time, oral and documentary evidence was presented on the Comprehensive Land Use Update ("CLUU"); and WHEREAS, the Comprehensive Land Use Update includes a General Plan Update, a Land Use Code Amendment, a Downtown Specific Plan Amendment, a Climate Action Plan, and five conceptual development proposals, namely, Street Conversions/Community Corridors, Senior Village Expansion, Las Palmas Park and Facilities Vision Concept Plan, Kimball Park Master Plan, and El Toyon Park Master Plan; and WHEREAS, the General Plan is the City's principal policy document to guide growth, development, and conservation, and is the foundation for all planning decisions; and WHEREAS, the Downtown Specific Plan regulates the use and development of land within the downtown area of National City; and WHEREAS, the Climate Action Plan establishes a strategy to reduce greenhouse gas emissions that contribute to climate change; and Resolution No. 2012 — January 24, 2012 Page Two WHEREAS, at the January 9, 2012 public hearing the Planning Commission considered the staff report contained in Case File No. 2011-17 GPA, ZC, SPA, IS, which is maintained by the City and incorporated herein by reference along with evidence and testimony at said hearing; and WHEREAS at said hearing, the Planning Commission reviewed and considered components of the proposed Comprehensive Land Use Update, along with all evidence and testimony presented at said hearing, and along with the Environmental Impact Report to assess project impacts of approving the Comprehensive Land Use Update, together with any comments received; and WHEREAS, at said hearing the Planning Commission voted to adopt Resolution 2-2012, which rescinded their prior recommendations on the CLUU contained in Resolution 14- 2011, and further recommended that the City Council certify the Final Environmental Impact Report; adopt a Mitigation Monitoring and Reporting Program; adopt Findings of Fact and a Statement of Overriding Considerations; adopt the General Plan Update, including a General Plan and Land Use Map amendment, adopt a Land Use Code (Zoning) amendment and Official Zoning Map amendment; adopt a Downtown Specific Plan amendment and Specific Plan Map amendment; adopt a Climate Action Plan; and approve, in concept only, five development proposals, including Street Conversions/Community Corridors, Senior Village Expansion, Las Palmas Park and Facilities Vision Concept Plan, Kimball Park Master Plan, and El Toyon Park Master Plan (identified as the "proposed project" in the EIR); and WHEREAS, prior to said hearing, the City sought out and incorporated public input throughout the preparation of the Comprehensive Land Use Update. As part of the public outreach and participation efforts, the City held a total of 23 public workshops, community meetings, and other public engagement events at different locations throughout the City in addition to public hearings before the Planning Commission and City Council; and WHEREAS, the City Council recognizes the need and desirability to conduct reviews of, and consider amendments to, the General Plan to accommodate the changing needs of the community; and WHEREAS, the City Council recognizes the need and desirability to consider amendments to the Downtown Specific Plan to be consistent with and implement the General Plan Update; and WHEREAS, the City Council recognizes the need and desirability to consider the policies and programs of the Climate Action Plan to be consistent with and implement the General Plan Update and to comply with State law; and WHEREAS, the City Council recognizes the need and desirability to consider the five development proposals that are a part of the Comprehensive Land Use Update to be consistent with and implement the General Plan Update; and WHEREAS, this action is taken pursuant to all applicable procedures required by state law and City law; and r, No. 2012 — January 24, 2012 Page Three WHEREAS, the action recited herein is found to be essential for the preservation or pubiiu health, safety, and general welfare. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that the above recitals are true and correct and are incorporated herein by reference as if set forth in full. BE IT FURTHER RESOLVED that the City Council has reviewed and considered the Planning Commission's recommendations contained in Planning Commission Resolution 2- 2012. BE IT FURTHER RESOLVED that the City Council has reviewed and considered the information contained in the Final Environmental Impact Report, which addressed the environmental impacts of the Comprehensive Land Use Update (SCH No. 2010051009) (Exhibits "E-2", "E-3", and "E-4"). BE IT FURTHER RESOLVED that the testimony and evidence presented to the City Council at the public hearing held on January 24, 2012, support the Findings of Fact, the Statement of Overriding Considerations, and the MMRP attached hereto as Exhibit "E-1" and Exhibit "G" and incorporated herein as though fully set forth. The City further finds and certifies that there has been no change to the project or substantial changes in circumstances or new information that would warrant subsequent or supplemental environmental analysis in accordance with CEQA, including Public Resources Code section 21166 and CEQA Guideline sections 15162 and 15163. BE IT FURTHER RESOLVED that the City Council hereby rescinds City Council Resolution No. 2011-119, which adopted components of the National City Comprehensive Land Use Update, which included (1) an Update of the General Plan and Land Use Map; (2) an amendment of the Downtown Specific Plan and Specific Plan Map; (3) a Climate Action Plan; (4) five development proposals in concept only (Street Conversions/Community Corridors, Senior Village Expansion, Las Palmas Park and Facilities Vision Concept Plan, Kimball Park Master Plan, and El Toyon Park Master Plan); and (5) Water Supply Assessment. BE IT FURTHER RESOLVED that the City Council has reviewed and considered the Water Supply Assessment ("WSA") contained in Exhibit "I" and approves the WSA. BE IT FURTHER RESOLVED that the City Council has reviewed and considered the information in the agenda packet (including, but not limited to the Final EIR, the "proposed project" and the alternatives in the Final EIR, the proposed General Plan, the proposed Land Use Code, the proposed Downtown Specific Plan, the proposed Climate Action Plan), and hereby approves and adopts the General Plan Update (Exhibit A), adopts the proposed Downtown Specific Plan Amendment (Exhibit C-1) and Map (Exhibit C-4), adopts the Climate Action Plan (Exhibit D), adopts, in concept only, the five development proposals described in the EIR (SCH No. 2010051009), including Street Conversions/Community Corridors, Senior Village Expansion, Las Palmas Park and Facilities Vision Concept Plan, Kimball Park Master Plan, and El Toyon Park Master Plan (collectively titled "Development Proposals"). These exhibits are consistent with the "proposed project" described in the Final EIR, as modified by the MMRP and Resolution No. 2012 — January 24, 2012 Page Four the minor revisions recommended by Staff and the Planning Commission (as described in the Planning Commission's Staff Report for January 9, 2012). These approvals are based upon the following findings: 1. The amended General Plan, Land Use Code, Downtown Specific Plan, Climate Action Plan, and the Development Proposals reflect the desired future vision of the City that was expressed by the community through the public participation process over the course of more than two years of development of the Update. 2. The amended General Plan, Land Use Code, Downtown Specific Plan, Climate Action Plan, and the Development Proposals are in the public interest, and the Update would meet the current needs of the community by providing for the types of land uses that are necessary and desirable to the community. 3. The amended General Plan, Land Use Code, Downtown Specific Plan, Climate Action Plan, and the Development Proposals would ensure consistency between the General Plan, the Land Use Code, the Climate Action Plan, the Downtown Specific Plan Amendment, and the five development projects that would implement the Comprehensive Land Use Update. 4. The amended General Plan, Land Use Code, Downtown Specific Plan, Climate Action Plan, and the Development Proposals are deemed essential and desirable to the public health, safety, and general welfare of the community since these items comprehensively address community issues identified through the public participation process and during the development of the Update. 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 24th day of January, 2012. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: January 24, 2012 AGENDA ITEM NO. 16 EM TITLE: Approve the release of a Request for Proposal for assignment of County of San Diego Contract Number 533563 assuming all food service operational obligations of the George H. Waters Nutrition Center PREPARED BY: Alfredo Ybarra PHONE: 619 336-4279 DEPARTMENT: Administrative Services APPROVED BYr EXPLANATION: The George H. Waters Nutrition Center, located at 1415 D Avenue, National City, 91950 is an anchor in the National City community where a wide segment of older adult population have outlived their social circles and for whom isolation is a critical issue; those that may be exhausted by the idea of meal preparation; those that have lost their sense of taste and have become indifferent to cooking; and all of whom need one warm, well -balance meal daily. Though the Nutrition Center has been providing this excellent nutritional program, the Nutrition Center has a history of operating in the red. For the past 6 years, the City has averaged an annual funding amount of $326,093 for Nutrition Center operations. As a result, the City Council is requested to authorize city staff to issue a competitive solicitation to identify a qualified and experienced nonprofit interested in accepting the operational obligations for the George H. Waters Nutrition Center. This report includes a timeline for the Request for Proposal cess. FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: APPROVED: Finance MIS The Nutrition Center is offset by a Contract with the County of San Diego, but has required a substantial city annual subsidy. No City annual operating funding allocation may be budgeted in future years, if solicitation of a Nutrition Center operator is successful. ENVIRONMENTAL REVIEW: Not applicable ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Approve the release of a Request for Proposal to identify an organization that will assume County Contract Number 533563 and all food service operational obligations of the George H. Waters Nutrition Center BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: 1. Background 2. Timeline 3. Request for Proposal for the Operation of the George H. Waters Nutrition Center Background .:nior Nutrition Program at the George H. Waters Nutrition Center offers one on - site (congregate) nutritionally balanced meal per day for senior adults sixty (60) years and older. The Nutrition Center Program also provides a "Home Delivered Meals Program." Approximately one (100) hundred seniors receive meals through the IIome Delivery Program, seven days a week for which there is no charge only a "suggested contribution." To reiterate the goal of each program is to promote better health, to reduce or prevent isolation though coordinated congregate, home delivered meals and supportive services. Staff and Voltmtecrs who deliver meals thru the Home Delivery Program also offer an important opportunity to check on the welfare of the homebound and offer a positive social contact. City Funding Though the Nutrition Center has been providing this excellent nutritional program, the Nutrition Center has a history of operating in the red. For many years, the City has provided annual funding to the Nutrition Center. Below is a listing of the city funding amounts provided to the Nutrition Center during the last six (6) years. FY 06 $340,017 FY 07 $224,315 FY 08 $363,513 FY 09 $341,904 FY 10 $320,589 FY 11 $366,260 Assumption of Contract Number 533563 Staff is requesting the City Council consider the assumption of the obligations of Contract Number 533563 to a third party including all operational food service management responsibilities. The new operator will assume the County of San Diego Contract No. 533563 and assume all operational duties of the Nutrition Center. If an experienced nonprofit provider can be found, they may be able to: 1. Restructure program service delivery method; thereby reduce operating costs, including labor costs and utility expenses. 2. Utilize their existing core business methods, to improve procedures and production. 3. Compete for nutrition grants to offset program funding deficiencies. If a nonprofit is contracted to assume the county contract, they would be able to continue providing nutritious meals, keep up with increasingly complex regulations, and perhaps ^vc nnal:e a profit. ,c,gh there are many reasons to consider the assignment of the contract to a third party, there are also some negative aspects that need to be considered. Some of the disadvantages of contract assignment include: 1. Employees may see that jobs are being outsourced, and they may see their jobs being lost. This can cause general uneasiness, which can lead to lower morale and less productivity. 2. Loss of control on the way service is managed and how decisions are made. 3. Loss of customers because they feel disconnected to the new provider and the city is no longer performing this function. If authorized, this action will result in the County of San Diego releasing the City of National City from all future obligations under Contract No. 533563. The new operator will assume all obligations of the County of San Diego Contract No. 533563. Attachment 2 TIMELINE FOR SELECTION OF OPERATOR TO ASSUME COUNTY CONTRACT 533563 AND ALL OPERATIONAL OBLIGATIONS OF THE GEORGE H. WATERS NUTRITION CENTER (DRAFT) JanuU;y 24, 2012 (Tuesday) Recommendation to City Council to Prepare and Release a Request for Proposal to assume all Nutrition Center operational obligations under County Contract Number 533563. January 31, 2012 (Tuesday) Informational meeting regarding assignment of Nutrition Center contract. February 1, 2012 (Wednesday): Release Request for Proposal February 29, 2012 (Wednesday): RFP Deadline March 5, 2012 (Monday) Conduct 15t RFP Review by panel: Panelists 1. Leslie Deese, Assistant City Manager 2. Brad Raulston, Executive Director 3. Alfredo Ybarra, Housing and Grants Manager Select 2-4 finalists March 12-13, 2012 (Monday -Tuesday): Conduct panel review of finalists Panelists 1. Mayor Ron Morrison 2, Councilmember Louie Natividad 3. Alfredo Ybarra, Manager 4. Nora McMains, National City resident 5. Yvonne Cordoba, National City resident Panel to provide recommendation to Cit Manager. March 19 - April 3, 2012 Negotiate Nutrition Center Agreement. Obtain County approval for assignment of contract. Aril 5 2012 Thursda Public Informational Meeting at KM Towers April 17, 2012 City Council to consider approval of recommended Nutrition Center operator and Novation Agreement. April 18, 2012 Begin Transition Period July 1, 2012 New Nutrition Center operator take control of operations. Attachment 4 Request for Proposal for the Operation of the George H. Waters Nutrition Center D1' F1 City of National City 1243 National City Boulevard National City, CA 91950 (619) 336-4279 CALIFORNIA. mcon.ponATE REQUEST FOR PROPOSAL FOR THE OPERATION OF THE GEORGE H. WATERS NUTRITION CITY LOCATED AT R'IORGAN TOWER 1415 "D" AVENUE, NATIONAL CITY, CA Key RFP Dates: Issued: February 1, 2012 Walk- Thru: February 9, 2012 (4 p.m.) Submittal: February 29, 2012 (4 p.m. deadline) 1 111:A1�1 BRIEF BACKGROUND OF CITY OF NATIONAL CITY National City (see location map) is located in San Diego County, approximately five miles south of dow"town San Diego and eleven miles north of the Mexican border. It encompasses 9.2 square miles and is considered ahnost fully developed. It is bordered by the City of San Diego to the north and east, the San Diego Bay to the west, and the City of Chula Vista to the south. In addition, a small unincorporated community, known as Lincoln Acres, is located to the southeast of National City, generally north of SR-54 and east of 1-805. 1-5 and 1-805 cross National City from north to south, and SR-54 traverses the southern edge. National City is San Diego County's second oldest city and was incorporated on September 17, 1887. NUTRITION CENTER BACKGROUND The George H. Waters Nutrition Center, located at 1415 D Avenue, National City, 91950 is an anchor in the National City community where a wide segment of older adult population have outlived their social circles and for whom isolation is a critical issue; those that may be exhausted by the idea of meal preparation; those that have lost their sense if taste and have become indifferent to cooking; and all of whom need one warm, well -balance meal daily. There are two components fundamental to the operation of the George H. Waters Nutrition Center: One is to recognize that wholesome food is essential to maintain a sense of physical well- being and two, to create an atmosphere where food is a shared social experience that offers companionship, creates a sense of daily comfort and security, and encourages fellowship through peer involvement. The George H. Waters Nutrition Center served its first meals in both the congregate setting and home delivered meals in 1979. For many years the center has provided meals to the Adult Day Health Care Centers under the auspices of Adult Protective Services. Home delivered meals have been a part of the center program since 1980 serving over 100 homebound, frail or otherwise disabled or handicapped seniors. The George H. Waters Nutrition Center is funded thru the Older American Act Title III. This federal program is administered by both State and County and is regulated by the California Department of Agriculture (CDA.) On site, off street parking consist of open parking stalls and disabled stalls and are shared with residents of the 151 unit Morgan Tower. Additional parking is typically accommodated along either side of D Avenue and Kimball Way. DINING CENTERS The Senior Nutrition Program at the George H. Waters Nutrition Center offers one on -site (congregate) nutritionally balanced meal per day for senior adults sixty (60) years and older. The current average daily congregate meal count is 162. Since its inception, the Nutrition Center has provided hot meals to thousands of senior residents at reduced costs. Meals are prepared on -site by an Executive Chef and a team of food service professionals. 2 I RAr Thy current staff at the Nutrition Center consist of the following: Position Title Number Nutrition Center Manager 1.00 Executive Chef 1.00 Sous Chef 1.00 Kitchen Aide 1.00 Food Service Worker 3.25 Dish Washer 0.50 Home Deliver Meal Coord. 1.00 Nutrition Driver 1.50 Office Assistant 1.00 Total 11.25 Meals are primarily served at the Morgan Tower location, but are also delivered to the Granger Avenue Cafe and the Summercrest Apartments. The suggested contribution per meal is $3.50. The Towers Granger Avenue Cafe Summererest 141.5 D Avenue in National 2717 Granger Avenue in Lincoln 2616 E. Plaza City Acres Blvd. HOME DELIVERED MEALS PROGRAM The Home Delivered Meals Program brings delicious meals to the homes of senior adults who are unable to come to one of the City's locations for lunch. In addition to providing a nutritionally balanced meal, it also helps to keep this often -isolated group of senior adults socially engaged. Meals are delivered on Mondays, Wednesday and Fridays. The meal recipients have contact with a delivery person who not only greets them, but is also there to check on their well-being. The suggested per meal contribution is $4.50 TARGETED CLIENTELE People eligible for participation in the Senior Nutrition Programs, as defined by the Older Americans Act, are 60 years of age or older. Eligibility is the same for all without regard to race, color, origin, sex or handicap. 3 DRAFT REQUEST FOR PROPOSALS 'NTP.ODUCI'1ON A Purpose of the RIP CITY is seeking proposals from qualified and experienced nonprofits interested and willing to assume the services specified in the attached County of San Diego Contract No. 533563 in consideration for the balance of compensation in Contract No. 533563. The contractor selected will assume all obligations of Contract No. 533563. The selected Contractor will be required to enter into a Novation Agreement (attached) between the County of San Diego, the City of National City, and the Contractor. The Nutrition City building has been diligently maintained through consistent efforts to provide modernization upgrades to the buildings and the site. During the term of this agreement, the exterior shell of the building will be maintained by the City of National City Community Development Commission and the company providing management services to Kimball Tower and Morgan Tower. The interior shell of the Nutrition City will be the sole responsibility of the contractor including, but no limited to interior walls, equipment, utility, and supplies. Your fiiui is invited to submit a written proposal outlining your organization's ability and willingness to assume the services specified to Contract No. 533563 in consideration for the balance of compensation in Contract No. 533563. The expiration date of the contract, if the annual one-year incremental extensions are granted by the County is June 30, 2014. The contract value is approximately $330,000 per year. B. Ownership Goal and Objectives The stated goal of the George H. Waters Nutrition Center is to assist individuals sixty (60) years and older to live independently because of better health and reduced isolation as a result of the Senior Nutrition Program, a program of coordinated congregate meals, home -delivered meals, and referral to appropriate supportive services. Individuals, communities, local and national governments are burdened by rising health cost, medications and the cost of nursing care. The mandate of the George H. Waters Nutrition Center is to provide good -nutrition combined with exercise and education to delay numerous conditions to which elderly adults are vulnerable, but that are preventable. The CITY has multiple objectives with regard to the Nutrition Center that we expect the selected Contractor to achieve: • Assist individuals sixty (60) years and older to live independently because of better health and reduce isolation as a result of the Senior Nutrition Program, a program of coordinated congregate meals, home -delivered meals, and referrals to appropriate supportive services. • Maintain and/or improve the current level of service provided by the Nutrition Center Program • Review the current menu of nutritionally balanced meals provided to senior adults and 4 guests to ensure compliance with the latest dietary recommendations. Comply with all contractual requirements and performance standards of the County Agreement. • Maintain a clean, well -maintained, physically appealing nutrition City building. • Eliminate the need for funding from the City of National City through operational efficiencies and increased revenues. 2. SCOPE OF SERVICES A. Statement of Work Contractor shall perform the work described in Article 2, Scope of Work, and the "Statement of Work" attached as Exhibit "A" to the attached County Agreement Number 533563. 3. PROPOSALS Candidates should have proven management expertise in the following areas: • Nutrition City Operations • Senior resident services and programs • Resource development and fiscal management The CITY proposes to award the contract on a basis of demonstrated qualification and experience in managing this scale of nutritional programs for functional elderly and disabled person. The CITY is seeking excellence in management of this program. Therefore, the award will be based on licenses and permits, experience in providing the service, current and/or past litigations, other government contracts involved, and fiscal solvency. NOTE: The CITY will no longer be providing funding for the Nutrition Center. The Nutrition Center operations, in prior years, were augmented by the CITY'S General Fund but that funding source is no longer available. The selected contractor will need to evaluate operations and, perhaps, seek additional funding from other sources. The selected Contractor is expected to execute a Novation Agreement (sample attached) for Contract No 533673 assigning and assuming all obligations in respect to Contract No. 533563. 4. SELECTION PROCESS A walk-thru of the Nutrition City will be conducted on Thursday, February 9, 2012 at 4:00 p.m. Responses are due no later than February 29, 2012 at 4 p.m. No late submittals will be accepted. The City of National City will hold interviews with the top 2-4 prospective candidates on or about March 12-13, 2012. The County of San Diego must approve the new contractor. Final selection of a nonprofit is expected to occur by April 17, 2012 if the County of San Diego has completed their review of qualifications. The selected nonprofit will begin working with the 5 I)I:A1 1 current management team immediately after their selection to begin the transition of operational responsibilities. The selected nonprofit will develop operating budgets and management plans and must begin operational management on July I, 2012. (ueshhons regarding this invitation of proposals should be directed to Alfredo Ybarra 5. PROPOSAL TERMS The City reserves the right to reject any and all proposals received as a result of this RFP. If a proposal is selected, it will be the most advantageous regarding quality of service, experience, financial solvency, the Contractor's qualifications and capabilities to provide the specified service, and other factors that the City may consider. The City does not intend to award a contract fully on the basics of any response made to the proposal; the City reserves the right to consider proposals for modifications at any time before a contract would be awarded, and negotiations would be undertaken with that contractor whose proposal is deemed to hest meet the City's specifications and needs. The City reserves the right to reject any or all bids, to waive or not waive informalities or irregularities in bids or bidding procedures, and to accept or further negotiate cost, terms, or conditions of any bid determined by the City to be in the best interests of the City even though not the lowest bid. Proposals must be signed by an official authorized to bind the contractor to its provisions for at least a period of 90 days. Failure of the successful bidder to accept the obligation of the contract may result in the cancellation of any award. In the event it becomes necessary to revise any part of the RFP, addenda will be provided. Deadlines for submission of RFP's may be adjusted to allow for revisions. The City will not be liable for any costs associated with the preparation, transmittal, or presentation of any materials submitted in response to this RFP To apply, please send 5 copies, by 4 p.m. on February 29, 2012, of the following: 1. Responses to all questions in the "Questionnaire" (attached) 2. Provide a resume of the organization's experience within the last five years in providing the services for which the organization is applying as described in Exhibit A, Statement of Work, or comparable services. 3. Articles of Incorporation and By-laws. 4. Letter of good standing with the State of California, Department of Corporations and federal and state non-profit certifications. 5. List of similar programs, with descriptions, currently managed. Identify if the organization is currently a contractor with the County of San Diego for the Senior Nutrition Program, state such in the response. 6. List of steps taken to ensure that its license will remain current and in good standing with the State California. 7. Current and valid health permits issued by the County of San Diego, Department of Environmental Ilealth, for all proposed production sites and contracted caterers for the proposed program. S. Current and valid driving licenses issued by the State of California for those staff proposed to provide home delivery services. 9. The most recent two years of financial audits. 10. Provide a description of any litigations and their resolution, if resolved, 6 f)l ;^.1I in the past five (5) years related to the organization's performance. If there is none, state as such in your submittal response. The proposal shall include all the following information. Failure to include all of the required of iii ation could result in the disqualification. A. The vendor's qualification, years in business, staff profile and experience with providing the services required by the City. Include verification that at least one of your personnel has completed some form of Food Service Management Training and the date of completion. B. The address of the location at which the food would be prepared and the distribution location, if different. C. The number of food service staff assigned on a permanent full time/part time basis that will be involved in the service of this contract. Identify staff position for primary contact for this contract. D. State the number of years working with a Senior Nutrition Food Program. E. Provide a copy of current food Establishment Inspection Report for all your food preparation establishments. G. Provide a Sample Five Day Menu. Submissions should be addressed to: Alfredo Ybarra, Manager Housing and Grants Division Administrative Services Department 1243 National City Boulevard National City, CA 91950 (619) 336-4279 Proposals should be prepared simply and economically providing a straightforward, concise description of the vendor's ability to meet the requirements of the REP. Proposals shall be written in ink or typewritten. No erasures are permitted. Mistakes may be crossed out and corrected and must be initialed in ink by the person signing the proposal. 7 ORA! I Questionaire l Please provide a description of your organization Provide a business plan to demonstrate how your organization will reorganize the nutrition center to make the nutrition center financially self-sufficient. 3. Discuss if your organization will consider retaining any of the existing staff? 4. Provide a transition plan. 5. How will your organization obtain the views of participants regarding the services received? 6. Please provide information detailing your experience with managing senior nutrition programs funded by the County of San Diego. 7. Please provide information on your organization's experience securing grant funding for senior nutrition services and program. 8 County Agreement Number 533563 Request for Proposal for the Operation of the George H. Waters Nutrition Center COUNTY AGREEMENT NUMBER 533563 AGREEMENT WITII CITY OF NATIONAL CITY FOR SENIOR NUTRITION PROGRAM This Agreement ("Agreement") is made and entered into on the date shown on the signature page ("Effective Date") by and between the County of San Diego, a political subdivision of the State of California ("County") and Contractor City of National City, iocuteu at 1243 National City Boulevard, National City, CA 91950 ("Contractor"), with reference to the following facts: RECITALS A. The County, by action of the Board of Supervisors on October 13, 2009 (Minute Order No. 6) authorized the Director of Purchasing and, to award a Contract for the Senior Nutrition Program. B. Contractor is specially trained and possesses certain skills, experience, education and competency to perform these services. C. The Chief Administrative Officer made a determination that Contractor can perform the services more economically and efficiently than the County, pursuant to Section 703.10 of the County Charter. D. The Agreement shall consist of this pro forma Agreement, Exhibit A Statement of Work, Exhibit A-1, Revised Statement of Qualifications, Exhibit B Insurance Requirements and Exhibit C, Payment Schedule or budget. In the event that any provision of the Pro Forma Agreement or its Exhibits, A, A-1, B or C, conflicts with any other term or condition, precedence shall be: First (1st) the Pro Forma: Second (2nd) Exhibit B; Third (3rd) Exhibit A; Fourth (4th) Exhibit C; Fifth (5th) Exhibit A-1. NOW THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: ARTICLE I PERFORMANCE OF WORK 1.1 Standard of Performance. Contractor shall, in good and workmanlike manner and in accordance with the highest professional standards, at its own cost and expense, furnish all of the labor, technical, administrative, professional and all other personnel, all supplies and materials, equipment, printing, transportation, facilities, and all other means whatsoever, except as herein otherwise expressly specified to be furnished by County, necessary or proper to perform and complete the work and provide the services required of Contractor by this Agreernent. 1.2 Contractor's Representative. The person identified on the signature page ("Contractor's Representative") shall ensure that Contractor's duties under this Agreement shall be performed on behalf of the Contractor by qualified personnel; Contractor represents and warrants that (1) Contractor has fulfilled all applicable requirements of the laws of the State of California to perform the services under this Agreement and (2) Contractor's Representative has full authority to act for Contractor hereunder, Contractor and County recognize that the services to be provided by Contractor's Representative pursuant to this Agreement are unique: accordingly, Contractor's Representative shall not be changed during the Term of the Agreernent without County's written consent. County reserves the right to terminate this Agreement pursuant to Clause 7.1 "Termination for Default", if Contractor's Representative should leave Contractor's employ, or if, in County's judgment, the work hereunder is not being performed by Contractor's Representative. 1.3 Contractor as Independent Contractor. Contractor is, for all purposes of this Contract, an independent Contractor, and neither Contractor nor Contractor's employees or subcontractors shall he deemed to be employees of the County. Contractor shall perform its obligations under this Contract according to the Contractor's own means and methods of work which shall be in the exclusive charge and under the control of the Contractor, and which shall not be subject to control or supervision by County except as to the results of the work. Neither Contractor nor Contractor's employees or subcontractors shall be entitled to any benefits to which County employees are entitled, including without limitation, overtime, retirement benefits, workers' compensation benefits and injury leave. 1.4 Contractor's Agents and Employees or Subcontractors. Contractor shall obtain, at Contractor's expense, all agents, employees and subcontractors required for Contractor to perform its duties under this Contract, and all such services shall be performed by Contractor's Representative, or under Contractor's Representatives' supervision, by persons authorized by law to perform such services. Retention by Contractor of any agent, employee or subcontractor shall be at Contractor's sole cost and expense, and County shall have no obligation to pay Contractor's agents, employees or subcontractors; to support any such person's or entity's claim against the Contractor; or to defend Contractor against any such claim. Any subcontract, or a combination of subcontract to the same individual or firm for the Contract period which is in excess of fifty thousand dollars ($50,000) or twenty five percent (25%) of the value of the Contract, whichever is less must have prior written concurrence of the Contracting Officer's Technical Representative ("COTR"). Contractor shall provide the County's COTR with copies of all other subcontracts relating to this Contract entered into by Contractor within 30 days after the effective date of the subcontract. Such subcontractors of Contractor shall be notified of Contractor's relationship to County. "Subcontractor" means any entity, other than County, that furnishes to Contractor services or supplies relevant to this Contract other than standard commercial supplies, office space, and printing services. ps_serv_contract_template. doe City of National City Agreement - Page 1 of 18 Revised GI30/09 COUNTY AGREEMENT NUMBER 533563 AGREEMENT WITH CITY OF NATIONAL CITY FOR SENIOR NUTRITION PROGRAM 1.4.1 Contractor Responsibility. In the event any subcontractor is utilized by Contractor for any portion of the project, Contractor retains the prime responsibility for carrying out all the terms of this Agreement, including the responsi- bility for performance and insuring the availability and retention of records of subcontractors in accordance with this Agreement. No subcontract utilizing funds from this Agreement shall be entered into which has a term extending beyond the ending date of this Agreement. Mandated Clause. All subcontracts shall include the Standard Terms and Conditions required of Contractor herein. ARTICLE 2 SCOPE OF WORK 2.1 Statement of Work. Contractor shall perform the work described in the "Statement of Work" attached as Exhibit "A" to this Agreement, and by this reference incorporated herein, except for any work therein designated to be performed by County. 2.2 Right To Acquire Equipment and Services. Nothing in this Agreement shall prohibit the County from acquiring the same type or equivalent equipment and/or service from other sources, when deemed by the County to be in its best interest. 2.3 Responsibility For Equipment. For cost reimbursement Agreements, County shall not be responsible nor be held liable for any damage to persons or property consequent upon the use, misuse, or failure of any equipment used by Contractor or any of Contractor's employees, even though such equipment may be furnished, rented, or loaned to Contractor by County. The acceptance or use of any such equipment by Contractor or Contractor's employees shall be construed to mean that Contractor accepts full responsibility for and agrees to exonerate, indemnify and hold harmless County from and against any and all claims for any damage whatsoever resulting from the use, misuse, or failure of such equipment, whether such damage be to the employee or property of Contractor, other Contractors, County, or other persons. Equipment includes, but is not limited to material, computer hardware and software, tools, or other things. 2.3.1 Contractor shall repair or replace, at Contractor's expense all County equipment or fixed assets that are damaged or lost as a result of Contractor negligence. 2.4 Non -Expendable Prerty Acquisition. County retains title to all non -expendable property provided to contractor by county, or which Contractor may acquire with funds from this Agreement if payment is on a cost reimbursement basis, including property acquired by lease purchase Agreement. Contractor may not expend funds under this Agreement for the acquisition of non -expendable property having a unit cost of $5,000 or more and a normal life expectancy of more than one year without the prior written approval of Contracting Officer Technical Representative. Contractor shall maintain an inventory of non -expendable equipment, including dates of purchase and disposition. Inventory records on non -expendable equipment shall be retained, and shall be made available to the County upon request, for at least three years following date of disposition. Non -expendable property that has value at the end of a contract (e.g. has not been depreciated so that its value is zero), and which the County may retain title under this paragraph, shall be disposed of at the end of the Agreement as follows: At County's option, it may: 1) have Contractor deliver to another County contractor or have another County contractor pick up the non -expendable property; 2) allow the contractor to retain the non -expendable property provided that the contractor submits to the County a written statement in the format directed by the County of how the non -expendable property will be used for the public good; or 3) direct the Contractor to return to the County the non -expendable property. ARTICLE 3 DISENTANGLEMENT 3.1 General Obligations At County's discretion, Contractor shall accomplish a complete transition of the services as set forth in Exhibit A to this Agreement (for purposes of this Article 3.1, these shall be referred to as the "Disentangled Services") being terminated from Contractor and the Subcontractors to County, or to any replacement provider designated by County, without any interruption of or adverse impact on the Disentangled Services or any other services provided by third parties. This process shall be referred to as the Disentanglement. Contractor shall fully cooperate with County and any new service provider and otherwise promptly take all steps, including, but not limited to providing to County or any new service provider all requested information or documentation, required to assist County in effecting a complete Disentanglement. Contractor shall provide all information or documentation regarding the Disentangled Services or as otherwise needed for Disentanglement, including, but not limited to, data conversion, client files, interface specifications, training staff assuming responsibility, and related professional services. Contractor shall provide for the prompt and orderly conclusion of all work required under the Agreement, as County may direct, including completion or partial completion of projects, documentation of work in process, and other measures to assure an orderly transition to County or the County's designee of the Disentangled Services. All Contractor work done as part of the Disentanglement shall be performed by Contractor and will be reimbursed by the County at no more than Contractor's costs, up to the total amount of this Agreement. Contractor shall not receive any additional or different compensation for the work otherwise required by the Agreement. Contractor's ps_ scrv_contract_template.doc City of National City Agreement - Page 2 of 18 Revised 6/30/09 COUNTY AGREEMENT NUMBER 533563 AGREEMENT WITH CITY OF NATIONAL CITY FOR SENIOR NUTRITION PROGRAM obligation to provide the Services shall not cease until the earlier of the following: 1) The Disentanglement is completed to the County's reasonable satisfaction, or 2) twelve (12) months after the Expiration Date of the Agreement. 3.2 Disentanglement Process The Lipentanglement process shall begin on any of the following dates: (i) the date County notifies Contractor that no funds or insufficient funds have been appropriated so that the Term shall be terminated pursuant to the Agreement, Paragraph 7.4; (ii) the date designated by County not earlier than sixty (60) days prior to the end of any initial or extended term that County has not elected to extend pursuant to the Agreement's, Signature Page, Contract Term; or (iii) the date any Termination Notice is delivered, if County elects to terminate any or all of the Services pursuant to the Agreement, Paragraph 7.1. Subject to Exhibit A Contractor's obligation to perform Disentangled Services, and County's obligation to pay for Disentangled Services, shall expire: (A) when funds appropriated for payment under this Agreement are exhausted, as provided in this Agreement, Paragraphs 7,1 and 7.4; (B) at the end of the initial or extended term set forth in this Agreement's, Signature Page, Contract Term; or (C) on the Termination Date, pursuant to this Agreement, Paragraphs 7.1 and 7.4 (with the applicable date on which Contractor's obligation to perform the Services expires being referred to herein as the "Expiration Date"). Contractor and County shall discuss in good faith a plan for determining the nature and extent of Contractor's Disentanglement obligations and for the transfer of the Disentangled Services in process provided, however, that Contractor's obligation under this Agreement to provide all Disentangled Services shall not be lessened in any respect. 3.3 Specific Obligations The Disentanglement shall include the performance of the following specific obligations: 3.3.1 No Interruption or Adverse Impact Contractor shall cooperate with County and all of the County's other service providers to ensure a smooth transition at the time of Disentanglement, with no interruption of Disentangled Services or other work required under the Agreement, no adverse impact on the provision of Disentangled Services or other work required under the Agreement or County's activities, no interruption of any services provided by third parties, and no adverse impact on the provision of services provided by third parties. 3.3.2 Third -Party Authorizations Without limiting the obligations of Contractor pursuant to any other clause in Exhibit A herein, Contractor shall, subject to the terms of any third -party contracts, procure at no charge to County any third -party authorizations necessary to grant County the use and benefit of any third -party contracts between Contractor and third -party contractors used to provide the Disentangled Services, pending their assignment to County. Similarly, at County's direction, Contractor shall obtain all legally necessary client consents or authorizations legally necessary to transfer client data to County or any new service provider. 3.3.3 Return, Transfer and Removal of Assets 3.3.3.1 Contractor shall return to County all County furnished assets or assets pursuant to Paragraph 2.4. 3.3.3.2 County shall be entitled to purchase at net book value those Contractor assets used for the provision of Disentangled Services to or for County, other than those assets expressly identified by the Parties as not being subject to this provision. Contractor shall promptly remove from County's premises, or the site of the work being performed by Contractor for County, any Contractor assets that County, or its designee, chooses not to purchase under this provision. 3.3.4 Transfer of Leases, Licenses. and Contracts Contractor, at its expense, shall convey or assign to County or its designee such fully -paid leases, licenses, and other contracts used by Contractor, County, or any other Person in connection with the Disentangled Services, as County may select, when such leases, licenses, and other contracts have no other use by Contractor. Contractor's obligation described herein, shall include Contractor's performance of all obligations under such leases, licenses, and other contracts to be performed by it with respect to periods prior to the date of conveyance or assignment and Contractor shall reimburse County for any losses resulting from any claim that Contractor did not perform any such obligations. 3.3.5 Delivery of Documentation Contractor shall deliver to County or its designee, at County's request, all documentation and data related to County, including, but not limited to, the County Data and client files, held by Contractor, and Contractor shall destroy all copies thereof not turned over to County, all at no charge to County. Notwithstanding the foregoing, Contractor may retain one (I) copy of the documentation and data, excluding County Data, for archival purposes or warranty support. psse rv_con t r ac t_t e mpl at e. doc City of National City Agreement - Page 3 of 18 Revised (d30/09 COUNTY AGREEMENT NUMBER 533563 AGREEMENT WITH CITY OF NATIONAL CITY FOR SENIOR NUTRITION PROGRAM 3.4 Findings Confidential. Any reports, information, data, etc., given to or prepared or assembled by Contractor under this Agreement which the County requests to be kept as confidential shall not be made available to any individual or ' rganization by the Contractor without the prior written approval of the County. 3 3 Publication, Reproduction or Use of Materials. No material produced, in whole or in part, under this Agreement shall be s"biect to copyright in the United States or in any other country. The County shall have unrestricted authority to publish, disclose, distribute and otherwise use, in whole or in part, any reports, data or other materials prepared under this Agreement. All reports, data and other materials prepared under this Agreement shall be the property of the County upon completion of this Agreement. ARTICLE 4 COMPENSATION The Payment Schedule, and/or budget are in Exhibit C and the compensation is on the signature page. County will pay Contractor the agreed upon price(s), pursuant to Exhibit C for the work specified in Exhibit A, Statement of Work. The County is precluded from making payments prior to receipt of services (advance payments). Contractor shall provide and maintain an accounting and financial support system to monitor and control costs to assure the Agreements completion. Invoices arc subject to the requirements below. 4.1 Fiscal for Provisional Rate, or Fixed Price Contracts with Cost Reimbursement Elements (Rey. 7/31/08) 4.1.1 General Principles. If cost reimbursement elements or provisional rates are included in this Agreement, Contractor shall, comply with generally accepted accounting principles and good business practices, including all applicable cost principles published by the Federal Office of Management and Budget (OMB), including A-122, which can be viewed at http://www.whitchouse.gov/omb/circulars. Contractor shall comply with all federal, State and other funding source requirements. Contractor shall, at its own expense, furnish all cost items associated with this Agreement except as herein otherwise specified in Exhibit C or elsewhere to be furnished by County. Contractor shall submit annually to County a cost allocation plan in accordance with OMB guidelines. If the pricing schedule and budget are segregated, the Payment Schedule is in Exhibit C-1 and the budget for cost reimbursement elements is in Exhibit C-2. Invoices are subject to the requirements of Paragraph 4.2 below. 4.1.2 Agreement Budget for Cost Reimbursement Elements. In no event shall the Agreement budget total be increased or decreased prior to County approved Agreement amendment. Some budget line item adjustments require County review and approval. Adjustments requiring County review and approval are listed in Exhibit C-2 "Contractor's Budget." 4.1.3 Administrative Adjustment. The COTR may make administrative Agreement adjustments to change or modify the budget as long as the total Agreement arnount or Agreement term is not modified. 4.1 .4 Agreement Amendrnent. An Agreement amendment signed by the Contracting Officer is required to modify the total Agreement amount or Agreement term. 4.1.5 Maximum Price. During the performance period of this Agreement, the maximum price for the items and/or services shall not exceed the lowest price at which Contractor then offers the items and/or services to its most favored customer. In no event shall County pay Contractor in excess of the amount identified on the Signature Page. 4.2 Invoices and Payment 4.2.1 Invoices. County agrees to pay Contractor in arrears only after receipt and approval of properly completed monthly invoices by the Contracting Officer's Technical Representative ("COTR") for the work performed in the prior month. Invoices shall be detailed and itemized referencing the Agreement number, invoice number, and submitted using the proper invoice form provided by COTR, pursuant to Exhibit C; documenting the total invoiced amount by Contractor. Contractor's monthly invoices shall include a statement certifying whether it is in compliance with Paragraph 8. l5 of this Agreement 4.2.2 Provisional Rates / Cost Reimbursement Elements. For provisional rates, or cost reimbursement elements, Contractor shall maintain records of its actual costs, as required herein, for those services paid under a provisional rate or as cost reimbursement. Contractor's last payment each fiscal year shall be withheld until after County and Contractor reconcile Contractor's actual costs with the amount paid from the provisional rates, if any. If County has paid Contractor more than their actual costs, Contractor shall refund County the excess amount paid in accordance with Paragraph 4.2.3. If Contractor's actual costs are more than the amount paid by County, County will pay Contractor the difference, up to, but not to exceed the annual contract amount identified in the Signature Page, in accordance with Paragraph 4.2.3 County's obligation to pay is also subject to the other requirements of this Agreement. ps_servcontract template.doc Agreement - Page 4 of 18 Revised 6/30/09 City of National City ps servcontract_tetnplate.doc COUNTY AGREEMENT NUMBER 533563 AGREEMENT WITH CITY OF NATIONAL CITY FOR SENIOR NUTRITION PROGRAM 4.2.3 Payments. Payment for the services performed under this Agreement shall be in accordance with Exhibit C, unless ether payment methodologies are negotiated and agreed to by both Contractor and County. Contractor shall iuein:ain supporting documentation of expenses as specified in Articles 11 and 13 for provisional rates or cost rr=nhursement elements. Payments will be made in arrears after receipt of properly completed invoice approved site COTR. Payment shall be NET 30 days from receipt and approval of invoice unless otherwise stated. For Provisional Rates, County will reimburse the good faith estimate of the actual allowable, allocable and reasonable costs incurred associated with the work performed during the month of service. Contractor shall maintain supporting documentation of expenses as specified in Articles 11 and 13. 4.2.3.1 This monthly invoice shall reflect a good faith estimate of the actual allowable, allocable and reasonable costs incurred associated with the work performed during the month of service. This good faith estimate shall be based on the budgeted net unit cost for each service category, hereafter known as provisional rates, multiplied by the units provided. 4.2.3.2 Reconciliation of Good Faith Estimates to Actual Allowable Expenses. Contractor shall submit a cost report to complete a reconciliation of the actual allowable, allocable and reasonable expenses incurred associated with the work performed under this agreement twice annually at a minimum; the COTR may require them more frequently. Cost reports submitted by Contractor shall include the actual allowable cumulative year to date expenses by service category for the period. Upon receipt of each cost report, County will reconcile year to date payments with year to date actual allowable, allocable and reasonable expenses and adjust the next monthly invoice for under payments or overpayments in excess of $100. Cost reports shall also include total amounts over paid by the County to Contractor or under paid by the County to the Contractor for each month of service. At the end of each fiscal year, Contractor shall complete an annual reconciliation of the actual allowable expenses incurred associated with the work performed under this agreement for that fiscal year. Overpayments and underpayments will be adjusted during the fiscal year and at the end of the fiscal year as instructed by the COTR. 4.2.3.2.1 Final Fiscal Year End Settlements. Contractor shall submit the final cost report reflecting the actual costs for reimbursement for services performed during the County fiscal year by the final fiscal year settlement date, which will be established by each program. This settlement date shall be no more than 60 calendar days from the end of the County fiscal year. Upon receipt of the fiscal year end cost report, County will reconcile year to date payments with fiscal year end actual allowable, allocable and reasonable expenses. County will reimburse Contractor for underpayments and will recoup overpayments from Contractor. County may, in its sole discretion, choose to not process invoices for reimbursement for services performed during that fiscal year after this date. The County fiscal year shall be defined as July 1, through June 30, unless otherwise defined in this Agreement. 4.2.3.3 Final Agreement Settlement Date. Contractor shall submit the final invoice for reimbursement for services performed during the final fiscal year of the contract by the final contract settlement date, which shall be no more than 60 calendar days from the final date of the contract services. County may, in its sole discretion, choose to not process invoices for reimbursement for services performed during the final fiscal year of the contract after the final Agreement settlement date. 4.2.4 Full Compensation. Pending any adjustments by the COTR and except as otherwise provided for in the cost reports submitted by Contractor to County if Provisional Rates are utilized, each invoice approved and paid shall constitute full and complete compensation to Contractor for all work completed during the billing period pursuant to Exhibit A and Exhibit C. This Agreement constitutes the entire Agreement between Contractor and County. Contractor shall be entitled only to payment and, if Provisional Rates or Reimbursable elements are included in this Agreement, reimbursement for allowable, allocable and reasonable costs, associated with services pursuant to Exhibit A. 4.2.5 Prompt Payment for Vendors and Subcontractors 4.2.5.1 Prompt payment for vendors and subcontractors. 4.2.5.1.1 Unless otherwise set forth in this paragraph, Contractor shall promptly pay its vendors and subcontractor(s) for satisfactory performance under its subcontract(s) to this Agreement. Such prompt payment shall be no later than thirty (30) days after Contractor receives payment for such services from County and shall be paid out of such amounts as are paid to Contractor under this Agreement. 4.2.5.1.2 Contractor shall include a payment clause conforming to the standards set forth in Paragraph 4.2.5.1.1 of this Agreement in each of its subcontracts, and shall require each of its Agreement - Page 5 of 18 Revised 6/30'09 City of National City COUNTY AGREEMENT NUMBER 533563 AGREEMENT_WITWCITY OF NATIONAL CITY FOR SENIOR NUTRITION PROGRAM subcontractors to include such a clause in their subcontracts with each lower -tier suhcontractor or supplier. Z ..% if Contractor, after submitting a claim for payment to County but before making a payment to a vendor or subcontractor for the goods or performance covered by the claim, discovers that all or a portion of the payment otherwise due such vendor or subcontractor is subject to withholding from the vendor or subcontractor in accordance with the vendor or subcontract agreement, then the Contractor shall: 4.2.5.2.1 Furnish to the vendor or subcontractor and the COTR within three (3) business days of withholding funds from its vendor or subcontractor a notice stating the amount to be withheld, the specific causes for the withholding under the terms of the subcontract or vendor agreement; and the remedial actions to be taken by the vendor or subcontractor in order to receive payment of the amounts withheld. 4 2.5.2.2 Contractor shall reduce the subcontractor's progress payment by an amount not to exceed the amount specified in the notice of withholding furnished under paragraph 4.2.5.2.1of this Agreement and Contractor may not claim from the County this amount until its subcontractor has cured the cause of Contractor withholding funds; 4.2.5.2.3 Upon the vendor's or subcontractor's cure of the cause of withholding funds, Contractor shall pay the vendor or subcontractor as soon as practicable, and in no circumstances later than ten (10) days after the Contractor claims and receives such funds from County. 4.2.5.3 Contractor shall not claim from County all of or that portion of a payment otherwise due to a vendor or subcontractor that Contractor is withholding from the vendor or suhcontractor in accordance with the subcontract agreement where Contractor withholds the money before submitting a claim to County. Contractor shall provide its vendor or suhcontractor and the COTR with the notice set forth in Paragraph 4.2.5.2.1 4.lof this Agreement and shall follow Paragraph 4.2.5.2.3 of this Agreement when vendor or subcontractor cures the cause of Contractor withholding its vendors or subcontractor's funds. 4.2.5.4 Overpayments. If Contractor becomes aware of a duplicate contract financing or invoice payment or that County has otherwise overpaid on a contract financing or invoice payment, Contractor shall immediately notify the COTR and request instructions for disposition of the overpayment. 4.2.6 Availability of Funding. The County's obligation for payment of any Agreement beyond the current fiscal year is contingent upon the availability of funding from which payment can be made. No legal liability on the part of the County shall arise for payment beyond June 30 of the calendar year unless funds are designated by the County and are made available for such performance. County shall, in its sole discretion, have the right to terminate or suspend this Agreement or reduce compensation and service levels proportionately Upon thirty (30) days' written notice to Contractor in the event that Federal, State or County funding for this Agreement ceases or is reduced prior to the ordinary expiration of the term of this Agreement. In the event of reduction of funding for the Agreement, County and Contractor shall meet within ten (10) days of written notice to renegotiate this Agreement based upon the modified level of funding. In this case if no Agreement is reached between County and Contractor within ten (10) days of the first meeting, either party shall have the right to terminate this Agreement within ten (10) days written notice of termination. In the event of termination of this Agreement in accordance with the terms of this Section, Contractor shall be entitled to retain all sums paid as of the effective date of such termination, subject to any payment offset to which County may be entitled, for damages or otherwise, under the terms of this Agreement. In the event of termination of this Agreement pursuant to this Section, in no event shall Contractor be entitled to any loss of profits on the portion of this Agreement so terminated, or to other compensation, benefits, reimbursements or ancillary services other than as herein expressly provided. 4.2.7 Conditions Prerequisite "fo Payments. County may elect not to make a particular payment if any of the following exists: 4.2.7.1 Misrepresentation. Contractor, with or without knowledge, made any misrepresentation of substantial and material nature with respect to any information furnished to County. 4.2.7.2 Unauthorized Actions by Contractor. Contractor took any action pertaining to this Agreement, which required County approval, without having first received said County approval. 4.2.7.3 Default. Contractor was in default under any terms and conditions of this Agreement. 4.2.7.4 Fees for Service. Contractor implemented a schedule of fees to be charged to clients or third party client representatives without prior County approval, unless authorized elsewhere in this Agreement. ps_serv_contract_template. doc City of National City Agreement - Page 6 of 18 Revised 6/30/09 COUNTY AGREEMENT NUMBER 533563 AGREEMENT WITH CITY OF NATIONAL CITY FOR SENIOR NUTRITION PROGRAM 4.2.8 Withholding Of Payment. County may withhold reimbursement until reports, data, audits, or other information rennired for Agreement administration or to meet County, State, federal or other funding source reporting or auditing requirements are received and approved by COTR or designee. County may also withhold payment if, in Comity's opinion, Contractor is in noncompliance with this Agreement. 4.2.9 interpretation of Claim Provisions. As used in this Article 4, the term "claim" refers to a claim filed pursuant to San Diego County Code of Administrative Ordinances Article V-A, "Processing and Certification of Routine Claims." The term "claim" as used in this Article 4 does not refer to a claim filed pursuant to San Diego County Code of Administrative Ordinances, Article X, "Claims against the County." 4.2.10 Severability Limits. Severability pertains only to those Agreements that originate in one fiscal year and end in another fiscal year. This Agreement is severable for and limited to the amounts in the attached budget. In no event shall Contractor exceed the Severability Limits. 4.2.11 Disallowance, In the event Contractor receives payment from County for a service, reimbursement for which is later disallowed by County or the State, the federal government, or any other finding source, Contractor shall promptly refund the disallowed amount to County on request, or County may offset the amount disallowed from any payment due to or to become due to Contractor under this Agreement or any other Agreement. Similarly, a disallowance under a prior Agreement may be offset against this Agreement. 4.2.12 Partial Payment. If Contractor fails to perform specified services, provide specified products or perform services or provide products timely and in accordance with specified requirements, Contractor shall be paid only the reasonable cost for the services performed or products provided for the payment period as determined by the COTR. 4.2.13 Project Generated Revenue. Project Generated Revenue realized by Contractor in excess of the Agreement budget shall be utilized in support of the Project. 4.2.13.1 Project Generated Revenue and Expenditures shall be reported at the end of the Agreement period. 4.2.13.2 With COTR approval, Contractor may expend a remaining balance of project generated revenue in the term of a subsequent County Agreement in support of this Project. 4.2.14 Rate of Expense. Contractor shall control its rate of expense in relation to units of service and anticipated revenues. 4.2.15 Contractor shall inform the COTR when it is anticipated that the need for services will exceed the approved service units and budget; however, Contractor's claim/invoice shall not exceed the approved budget. 4.2.16 Any records of revenues, expenditures and/or clinical records under this Agreement shall be subject to compliance with federal, State or local laws or regulations and may be audited and/or reviewed by the County and/or the appropriate federal, State or County agency. In the event of an atidit disallowance of any claimed cost which is subject to compliance with federal, State or local law or regulations, Contractor shall be liable for any costs or lost revenue resulting therefrom. ARTICLE 5 AGREEMENT ADMINISTRATION 5.1 County's Agreement Administrator. The Director of Purchasing and Contracting is designated as the Contracting officer ("Contracting Officer") and is the only County official authorized to make any Changes to this Agreement. The County has designated the individual identified on the signature page as the Contracting Officer's Technical Representative ("COTR") 5.1.1 County's COTR will chair Contractor progress meetings and will coordinate County's Agreement administrative functions. The COTR is designated to receive and approve Contractor invoices for payment, audit and inspect records, inspect Contractor services, and provide other technical guidance as required. The COTR is not authorized to change any terms and conditions of this Agreement. Only the Contracting Officer, by issuing a properly executed amendment to this Agreement, may make changes to the scope of work or total price. 5.1.2 Notwithstanding any provision of this Agreement to the contrary, County's COTR may make Administrative Adjustments ("AA") to the Agreement, such as line item budget changes or adjustments to the service requirements, which do not change the purpose or intent of the Statement of Work, the Terms and Conditions, the Agreement period or the total Agreement price. Each AA shall be in writing and signed by COTR and Contractor. All inquiries about such AA will be referred directly to the COTR. 5.2 Agreement Progress Meeting. The COTR and other County personnel, as appropriate, will meet periodically with the Contractor to review the Agreement performance. At these meetings the COTR will apprise the Contractor of how the County views the Contractor's performance and the Contractor will apprise the County of problems, if any, being experienced. The Contractor shall also notify the Contracting Officer (in writing) of any work being performed, if any, that the Contractor considers being over and above the requirements of the Agreement. Appropriate action shall be taken to resolve outstanding ps_serv_contract_temp Tate. doc City of National City Agreement - Page 7 of 18 Revised 6/30/09 COUNTY AGREEMENT NUMBER 533563 AGREEMENT WITH CITY OF NATIONAL CITY FOR SENIOR NUTRITION PROGRAM issues. The minutes of these meetings will be reduced to writing and signed by the CO'IR and the Contractor. Should the Contractor not concur with the minutes, the Contractor shall set out in writing any area of disagreement. Appropriate action will h taken to resolve any areas of disagreement. ARTICLE 6 CHANGES 6.I Contracting Officer. The Contracting Officer may at any time, by a written order, make changes ("Changes"), within the general scope of this Agreement, in the definition of services to be performed, and the time (i.e.) hours of the day, days of the week, etc. and place of performance thereof. If any such Change causes an increase or decrease in the cost of, or the time required for, the performance of any part of the work under this Agreement, whether changed or not changed by such an order, an equitable adjustment shall be made in the Agreement price or delivery schedule, or both, and the Agreement shall be modified in writing accordingly. Such changes may require Board of Supervisors approval. 6.2 Claims. Contractor must assert any claim for adjustment under this clause within thirty (30) days from the date of receipt by the Contractor of the notification of Change; provided, however, that the Contracting Officer, if he decides that the facts justify such action, may receive and act upon any such claim asserted at any time prior to final payment under this Agreement. Where the cost of property made obsolete or excess as a result of a change is included in the Contractor's claim for adjustment, the Contracting Officer shall have the right to prescribe the manner of disposition of such property. Failure to agree to any adjustment shall be a dispute concerning a question of fact within the meaning of the clause of this Agreement entitled "Disputes" (Article 15). however, nothing in this clause shall excuse the Contractor from proceeding with this Agreement as changed. ARTICLE 7 TERMINATION 7.1 Termination For Default. Upon Contractor's breach of this Agreement, County shall have the right to terminate this Agreement, in whole or part. Prior to termination for default, County will send Contractor written notice specifying the cause. The notice will give Contractor ten (10) days from the date the notice is issued to cure the default or make progress satisfactory to County in curing the default, unless a different time is given in the notice. If County determines that the default contributes to the curtailment of an essential service or poses an immediate threat to life, health or property, County may terminate this Agreement immediately upon issuing oral or written notice to the Contractor without any prior notice or opportunity to cure. In the event of termination under this Article, all finished or unfinished documents, and other materials, prepared by Contractor under this Agreement shall become the sole and exclusive property of County. In the event of such termination, the County may purchase or obtain the supplies or services elsewhere, and Contactor shall be liable for the difference between the prices set forth in the terminated order and the actual cost thereof to the County. The prevailing market price shall be considered the fair repurchase price. Notwithstanding the above, Contractor shall not be relieved of liability to County for damages sustained by County by virtue of any breach of this Agreement by Contractor, and County may withhold any reimbursement to Contractor for the purpose of off -setting until such time as the exact amount of damages due County from Contractor is determined. If, after notice of termination of this Agreement under the provisions of this clause, it is determined for any reason that the Contractor was not in default under the provisions of this clause, the rights and obligations of the parties shall, if this Agreement contains a clause providing for termination for convenience of the County, be the same as if the notice of termination had been issued pursuant to such clause. 7.2 Damages For Delay. If Contractor refuses or fails to prosecute the work, or any separable part thereof, with such diligence as shall ensure its completion within the time specified in this Agreement, or any extension thereof, or fails to complete said work within such time, County will be entitled to the resulting damages caused by the delay. Damages will be the cost to County incurred as a result of continuing the current level and type of service over that cost that would be incurred had the Agreement segments been completed by the time frame stipulated and any other damages suffered by County. 7.3 County Exemption From Liability. In the event there is a reduction of funds made available by County to Contractor under this or subsequent Agreements, the County of San Diego and its Departments, officers and employees shall incur no liability to Contractor and shall be held harmless from any and all claims, demands, losses, damages, injuries, or liabilities arising directly or from such action. 7.4 Full Cost Recovery Of Investigation And Audit Costs. Contractor shall reimburse County of San Diego for all direct and indirect expenditures incurred in conducting an audit/investigation when Contractor is found in violation (material breach) of the terms of the Agreement. Reimbursement for such costs shall be withheld from any amounts due to Contractor pursuant to the payment terms of the Agreement, or from any other amounts due to Contractor from County. ps_serv_contract_template.doc Agreement - Page 8 of 18 Revised G/30/09 City of National City COUNTY AGREEMENT NUMBER 533563 AGREEMENT WITH CITY OF NATIONAL CITY FOR SENIOR NUTRITION PROGRAM 7.5 Termination For Convenience. The County may, by written notice stating the extent and effective date terminate this Agreement for convenience in whole or in part, at any time. The County shall pay the Contractor as full compensation for work performed in accordance with the terms of this Contract until such termination: I The 'tnit or pro rata price for any delivered and accepted portion of the work- 7.5.2 A reasonable amount, as costs of termination, not otherwise recoverable from other sources by the Contractor as approved by the County, with respect to the undelivered or unaccepted portion of the order, provided compensation hereunder shall in no event exceed the total price. 7.5.3 In no event shall the County be liable for any loss of profits on the resulting order or portion thereof so terminated. 7.5.4 County's termination of this Agreement for convenience shall riot preclude County from taking any action in law or equity against Contractor for: 7.5.4.1 Improperly submitted claims, or 7.5.4.2 Any failure to perform the work in accordance with the Statement of Work, or 7.5.4.3 Any breach of any term or condition of the Agreement, or 7.5.4.4 Any actions under any warranty, express or implied, or 7.5.4.5 Any claim of professional negligence, or 7.5.4.6 Any other matter arising from or related to this Agreement, whether known, knowable or unknown before, during or after the date of termination. 7.6 Suspension Of Work. The Contracting Officer may order the Contractor, in writing, to suspend, delay, or interrupt all or any part of the work of this contract for the period of time that the Contracting Officer determines appropriate for the convenience of the Govemment. 7.7 Remedies Not Exclusive. The rights and remedies of County provided in this article shall not be exclusive and are in addition to any other rights and remedies provided by law or under resulting order. ARTICLE 8 COMPLIANCE WITH LAWS AND REGULATIONS 8.1 Conformance With Rules And Regulations. Contractor shall be in conformity with all applicable Federal, State, County, and local laws, rules, and regulations, current and hereinafter enacted, including facility and professional licensing and/or certification laws and keep in effect any and all licenses, permits, notices and certificates as are required. Contractor shall further comply with all laws applicable to wages and hours of employment, occupational safety, and to fire safety, health and sanitation. 8.2 Contractor Permits and License. Contractor certifies that it possesses and shall continue to maintain or shall cause to be obtained and maintained, at no cost to the County, all approvals, permissions, permits, licenses, and other forms of documentation required for it and its employees to comply with all existing foreign or domestic statutes, ordinances, and regulations, or other laws, that may he applicable to performance of services hereunder. The County reserves the right to reasonably request and review all such applications, permits, and licenses prior to the commencement of any services hereunder. 8.3 Equal Opportunity. Contractor shall comply with the provisions of Title VII of the Civil Rights Act of 1964 in that it will not discriminate against any individual with respect to his or her compensation, terms, conditions, or privileges of employment nor shall Contractor discriminate in any way that would deprive or intend to deprive any individual of employment opportunities or otherwise adversely affect his or her status as an employee because of such individual's race, color, religion, sex, national origin, age, handicap, medical condition, sexual orientation or marital status. 8.4 Affirmative Action. Each Contractor of services and supplies employing fifteen (15) or more full-time permanent employees, shall comply with the Affirmative Action Program for Vendors as set forth in Article IIIk (commencing_at Section 84) of the San Diego County Administrative Code, which program is incorporated herein by reference. A copy of this Affirmative Action Program will be furnished upon request by COTR or from the County of San Diego Internet web - site (www.co.san-diego.ca.us). 8.5 Non Discrimination. Contractor shall ensure that services and facilities are provided without regard to ethnic group identification, race, color, nation origin, creed, religion, age, sex, or physical, mental disability, political affiliation and marital status in accordance with Title IX of the Education Amendments of 1972; Title VII of the Civil Rights Act of 1964 (42 U.S.C. 2000-d), the Age Discrimination of 1975 (42 U.S.C. 6101), Article 9.5. Chapter I, Part I, Division 2, Title 2 (Section 11135, et seq) of the California Government Code, Title 9, Chapter 4, Subchapter 6 (Section 10800. et seq.) of the CCR and California Dept of Social Services Manual of Policies and Procedures (CDSS MPP) Division 21. ps_serv_contract_template.doe City of National City Agreement - Page 9 of 18 Revised 6/30/09 COUNTY AGREEMENT NUMBER 533563 AGREEMENT WITH CITY OF NATIONAL CITY FOR SENIOR NUTRITION PROGRAM 8.6 ATDS Discrimination. Contractor shall not deny any person the full and equal enjoyment of, or impose less advantageous terms, or restrict the availability of, the use of any County facility or participation in any County funded or supported s^ - lee or program on the grounds that such person has Acquired Immune Deficiency Syndrome, AIDS -related complex (Ak.i'). or AIDS -related status (ARS), as those terms are defined in Chapter 1, Section 32.1203, San Diego County Code of n + Flory Ordinances. .rican With Disabilities Act (ADA) 1990. Contractor shall not discriminate against qualified people with disabilities in employment, public services, transportation, public accommodations and telecommunications services in compliance with the Americans with Disabilities Act (ADA) and California Administrative Code Title 24. 8.8 Political Activities Prohibited. None of the funds, provided directly or indirectly, under this Agreerent shall be used for any political activities or to further the election or defeat of any candidate for public office. Contractor shall not utilize or allow its name to be utilized in any endorsement of any candidate for elected office. Neither the Agreement nor any funds provided thereunder shall he utilized in support of any partisan political activities, or activities for or against the election of a candidate for an elected office. 8.9 Lobbying. Contractor agrees to comply with the lobbying ordinances of the County and to assure that its officers and employees comply before any appearance before the County Board of Supervisors. None of the funds provided under this Agreement shall be used for publicity or propaganda purposes designed to support or defeat any legislation pending before Statc and Federal Legislatures or the Board of Supervisors of the County. 8.10 Religious Activity Prohibited. There shall be no religious worship, instructions or proselytization as part of or in connec- tion with the performance of this Agreement. 8.11 Drug and Alcohol -Free Workplace. The County of San Diego, in recognition of individual rights to work in a safe, healthful and productive work place, has adopted a requirement for a drug and alcohol free work place, County of San Diego Drug and Alcohol Use Policy C-25. This policy provides that all County -employed Contractors and Contractor employees shall assist in meeting this requirement. 8.11.1 As a material condition of this Agreement, the Contractor agrees that the Contractor and the Contractor employees, while performing service for the County, on County property, or while using County equipment: 8.11.1.1 Shall not be in any way impaired because of being under the influence of alcohol or a drug. 8.11.1.2 Shall not possess an open container of alcohol or consume alcohol or possess or be under the influence of an illegal drug. 8.11.1.3 Shall not sell, offer, or provide alcohol or a drug to another person; provided, however, that the foregoing restriction shall not be applicable to a Contractor or Contractor employee who as part of the performance of normal job duties and responsibilities prescribes or administers medically prescribed drugs. 8.11.2 Contractor shall inform all employees who are performing service for the County on County property or using County equipment of the County objective of a safe, healthful and productive work place and the prohibition of drug or alcohol use or impairment from same while performing such service for the County. 8.1 1.3 The County may terminate for default or breach this Agreement, and any other Agreement the Contractor has with the County, if the Contractor, or Contractor employees are determined by the Contracting Officer not to be in compliance with the conditions listed herein. 8.12 Board of Supervisors' Policies. Contractor represents that it is familiar, and shall use its best efforts to comply, with the following policies of the Board of Supervisors: 8.12.1 Board Policy B-67, which encourages the County's Contractors to offer products made with recycled materials, reusable products, and products designed to be recycled to the County in response to the County's requirements; and 8.12.2 Board Policies B-53 and B-39a, which encourage the participation of small and disabled veterans' business enterprises in County procurements; and 8.12.3 Zero Tolerance For Fraudulent Conduct In County Services. Contractor shall comply with County of San Diego Board of Supervisors Policy A-120 "Zero Tolerance for Fraudulent Conduct in County Services." There shall be "Zero Tolerance" for fraud committed by Contractors in the administration of County programs and the provision of County services. Upon proven instances of fraud committed by independent Contractors in connection with their performance under the Agreement, said Agreement shall be terminated; and 8.12.4 Interlocking Directorate. In recognition of County Policy A-79, not -for -profit Contractors shall not subcontract with related for -profit subcontractors for which an interlocking relationship exist unless specifically authorized in writing by the Board of Supervisors; and psscrv_contracttemplate.doc Agreement - Page 10 of 18 Revised 6/30/09 City of National City COUNTY AGREEMENT NUMBER 533563 AGREEMENT WIFH CITY OF NATIONAL CITY FOR SENIOR NUTRITION PROGRAM 8.12.5 Zero Tolerance In Coaching Medi-Cal Or Welfare Clients (Including Undocumented Immigrants). The County of Sin Diego in recognition of its unique geographical location and the utilization of Welfare and Medi-Cal system by foreign nationals who are not legal residents of this county or country, has adopted a Zero Tolerance policy and shall aggressively prosecute employees and Contractors who coach Medi-Cal or Welfare clients (including un- documented immigrants), to obtain services for which they are not otherwise entitled. As a material condition of this Agreement, Contractor agrees that the Contractor and Contractor's employees, while performing service for the County, on County property or while using County equipment shall not: (a) in any way coach, instruct, advise, or guide any Medi-Cal or Welfare clients or prospective clients who are undocumented immigrants on ways to obtain or qualify for Medi-Cal assistance, for which they are not otherwise entitled. (b) support or provide funds to any organization engaged directly or indirectly in advising undocumented immigrants on ways to obtain or qualify for Medi-Cal assistance, for which they are not otherwise entitled. Contractor shall inform all employees that are performing service for the County on County property or using County equipment of County's Zero Tolerance Policy as referenced herein. County may terminate for default or breach this Agreement and any other Agreement Contractor has with County, if Contractor or Contractor employees are determined not to be in compliance with the conditions stated herein. 8.13 Cartwright Act. Following receipt of final payment under the Agreement, Contractor assigns to the County all rights, title and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright act (Chapter 1) (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code) arising from purchases of goods, materials, or services by the Contractor for sale to the County under this Agreement. 8.14 Hazardous Materials. Contractor shall comply with all Environmental Laws and all other laws, rules, regulations, and requirements regarding Hazardous Materials, health and safety, notices, and training. Contractor agrees that it will not store any Hazardous Materials at any County Facility for periods in excess of ninety (90) days or in violation of the applicable site storage limitations imposed by Environmental Law. Contractor agrees to take, at its expense, all actions necessary to protect third parties, including, without limitation, employees and agents of the County, from any exposure to Hazardous Materials generated or utilized in its performance under this Agreement. Contractor agrees to report to the appropriate governmental agencies all discharges, releases, and spills of Hazardous Materials that are required to be reported by any Environmental Law and to immediately notify the County of it. Contractor shall not be liable to the County for the County's failure to comply with, or violation of, any Environmental Law. As used in this section, the term "Environmental Laws" means any and all federal, state or local laws or ordinances, rules, decrees, orders, regulations or court decisions (including the so-called "common law"), including, but not limited to, the Resource Conservation and Recovery Act, relating to hazardous substances, hazardous materials, hazardous waste, toxic substances, environmental conditions or other similar substances or conditions. As used in this section the term "Hazardous Materials" means any chemical, compound, material, substance or other matter that: (a) is a flammable, explosive, asbestos, radioactive nuclear medicine, vaccine, bacteria, virus, hazardous waste, toxic, overtly injurious or potentially injurious material, whether injurious or potentially injurious by itself or in combination with other materials; (b) is controlled, referred to, designated in or governed by any Environmental Laws; (c) gives rise to any reporting, notice or publication requirements under any Environmental Laws, or (d) is any other material or substance giving rise to any liability, responsibility or duty upon the County or Lessee with respect to any third person under any Environmental Laws. 8-15 Debarment And Suspension. As a sub -grantee of federal finds under this Agreement, Contractor certifies that it, its principals, its employees and its subcontractors: 8.15.1 Are not presently debarred, suspended, proposed for debarment, declared ineligible or voluntarily excluded from covered transactions by any Federal Department or agency; 8.15.2 Have not within a 3-year period preceding this Agreement been convicted of or had a civil judgment rendered against them for the commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State, or local) transaction; violation of Federal or State anti-trust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; 8.15.3 Are not presently indicted or otherwise criminally or civilly charged by a government entity (Federal, State, or local) with commission of any of the offenses enumerated in the paragraph above; and 8.15.4 Have not within a 3-year period preceding this Agreement had one or more public transaction (Federal, State, or local) terminated for cause or default. ps_se rv_cont ract_template. doc City of National City Agreement - Page 1 I of 18 Revised 6/30/09 COUNTY AGREEMENT NUMBER 533563 AGREEMENT WITH CITY OF NATIONAL CITY FOR SENIOR NUTRITION PROGRAM ARTICLE 9 CONFLICTS OF INTEREST; CONTRACTOR'S CONDUCT -t of Interest. Contractor presently has no interest, including but not limited to other projects or independent °ments, and shall not acquire any such interest, direct or indirect, which would conflict in any manner or degree with ,ance of services required to be performed under this Agreement. The Contractor shall not employ any person uig a.,y such interest in the performance of this Agreement. Contractor shall not hire County's employees to perform any portion of the work or services provided for herein including secretarial, clerical and similar incidental services except upon the written approval of County. Without such written approval, performance of services under this Agreement by associates or employees of County shall riot relieve Contractor from any responsibility under this Agreement. 9.2 Conduct of Contractor; Privileged Information 9.2.1 Contractor shall inform the County of all the Contractor's interests, if any, which are or which the Contractor believes to be incompatible with any interests of the County. 9.2.2 The Contractor shall not, under circumstances that might reasonably be interpreted as an attempt to influence the recipient in the conduct of his duties, accept any gratuity or special favor from individuals or organizations with whom the Contractor is doing business or proposing to do business, in accomplishing the work under this Agreement. 9.2.3 Contractor shall not use for personal gain or make other improper use of privileged information, which is acquired in connection with his employment. In this connection, the term "privileged information" includes, but is not limited to, unpublished information relating to technological and scientific development; medical, personnel, or security records of the individuals; anticipated materials requirements or pricing actions; and knowledge of selections of Contractors or subcontractors in advance of official announcement. 9.2.4 The Contractor, or employees thereof, shall not offer directly or indirectly gifts, gratuity, favors, entertainment, or other items of monetary value to an employee or official of the County. 9.2.5 Referrals. Contractor further covenants that no referrals of clients through Contractor's intake or referral process shall be made to the private practice of any person(s) employed by the Contractor. 9.3 Prohibited Agreements. As required by Section 67 of the San Diego County Administrative Code, Contractor certifies that it is not in violation of the provisions of Section 67, and that Contractor is not, and will not subcontract with, any of the following: 9.3.1. Persons employed by County or of public agencies for which the Board of Supervisors is the governing body; 9.3.2 Profit -making firms or businesses in which employees described in sub -section 9.3.1, above, serve as officers, principals, partners, or major shareholders; 9.3.3 Persons who, within the immediately preceding twelve (12) months came within the provisions of the above sub- sections and who (I) were employed in positions of substantial responsibility in the area of service to be performed by the Agreement, or (2) participated in any way in developing the Agreement or its service specifications; and 9.3.4 Profit -making firms or businesses in which the former employees described in sub -section 9.3.3 above, serve as officers, principals, partners, or major shareholders. 9.4 Limitation Of Future Agreements Or Grants. It is agreed by the parties to the Agreement that Contractor shall be restricted in its future Contracting with the County to the manner described below. Except as specifically provided in this clause, Contractor shall be free to compete for business on an equal basis with other companies. 9.4.1 If Contractor, under the terms of the Agreement, or through the performance of tasks pursuant to this Agreement, is required to develop specifications or statements of work and such specifications or statements of work are to be incorporated into a solicitation, Contractor shall be ineligible to perform the work described within that solicitation as a prime or subcontractor under an ensuing County Agreement. It is further agreed; however, that County will not, as additional work, unilaterally require Contractor to prepare such specifications or statements of work under this Agreement. 9.4.2 Contractor may not apply for nor accept additional payments for the same services contained in the Statement of Work. 10.1 Indemnity. County shall of County (collectively ps_serv_contract_template. doc City of National City ARTICLE 10 INDEMNITY AND INSURANCE not be liable for, and Contractor shall defend and indemnify County and the employees and agents "County Parties"), against any and all claims, demands, liability, judgments, awards, fines, Agreement - Page 12 of 18 Revised 6/30/09 COUNTY AGREEMENT NUMBER 533.563 AGREEMENT WITH CITY OF NATIONAL CITY FOR SENIOR NUTRITION PROGRAM mechanics' liens or other liens, labor disputes, losses, damages, expenses, charges or costs of any kind or character, including attorneys' fees and court costs (hereinafter collectively referred to as "Claims"), related to this Agreement and s,rising either directly or indirectly from any act, error, omission or negligence of Contractor or its Contractors, licensees, agents. servants or employees, including, without limitation, Claims caused by the concurrent negligent act, error or omission, wi:erher active or passive, of County Parties. Contractor shall have no obligation, however, to defend or indemnify County Parties from a Claim if it is determined by a court of competent jurisdiction that such Claim was caused by the sole negligence or willful misconduct of County Parties. 10.2 Insurance. Prior to execution of this Agreement, Contractor must obtain at its own cost and expense, and keep in force and effect during the term of this Agreement, including all extensions, the insurance specified in Exhibit "B," "Insurance Requirements," attached hereto. ARTICLE 11 AUDIT AND INSPECTION OF RECORDS The County shall have the audit and inspection rights described in this section. 11.1 Audit And Inspection. Contractor agrees to maintain and/or make available within San Diego County accurate books and accounting records relative to all its activities under this Agreement. Authorized Federal, State or County representatives shall have the right to monitor, assess, or evaluate Contractor's performance pursuant to this Agreement, said monitoring, assessments, or evaluations to include but not limited to audits, inspection of premises, reports, and interviews of project staff and participants. At any time during normal business hours and as often as County may deem necessary, Contractor shall make available to County, State or Federal officials for examination all of its records with respect to all matters covered by this Agreement and will permit County, State or Federal officials to audit, examine and make excerpts or transcripts from such records, and to make audits of all invoices, materials, payrolls, records of personnel, information regarding clients receiving services, and other data relating to all matters covered by this Agreement. If an audit is conducted, it will be done in accordance with generally accepted government auditing standards as described in "Government Auditing Standards," published for the United States General Accounting Office. If any services performed hereunder are not in conformity with the specifications and requirements of this Agreement, County shall have the right to require the Contractor to perform the services in conformity with said specifications and requirements at no additional increase in total Agreement amount. When the services to be performed are of such nature that the difference cannot be corrected, County shall have the right to (I) require Contractor immediately to take all necessary steps to ensure future performance of the services in conformity with requirements of the Agreement, and (2) reduce the Agreement price to reflect the reduced value of the services performed. In the event Contractor fails to perform the services promptly or to take necessary steps to ensure future performance of the service in conformity with the specif- ications and requirements of the Agreement, County shall have the right to either (1) by Agreement or to otherwise have the services performed in conformity with the Agreement specifications and charge to Contractor any cost occasioned to County that is directly related to the performance of such services, or (2) terminate this Agreement for default as provided in the Termination clause. 11.2 Cost or Pricing Data. If the Contractor submitted cost or pricing data in connection with the pricing of this Agreement or any change or modification thereto, unless such pricing was based on adequate price competition, established catalog or market prices of commercial items sold in substantial quantities of the general public, or prices set by law or regulation, the Contracting Officer or his representatives who are employees of the County or its agent shall have the right to examine all hooks, records, documents and other data of the Contractor related to the negotiation pricing or performance of such Agreement, change or modification, for the purpose of evaluating the accuracy, completeness and currency of the cost or pricing data submitted. 11.3 Availability. The materials described above shall be made available at the office of the Contractor, at all reasonable times, for inspection, audit or reproduction, until the expiration of three (3) years from the date of final payment under this Agreement, or by section 11.3.1 and 11.3.2, below: 11.3.1 If this Agreement is completely or partially terminated, the records relating to the work terminated shall be made available for a period of three (3) years from the date of any resulting final settlement. 11.3.2 Record which relate to appeals under the "Disputes" clause of this Agreement, or litigation or the settlement of claims arising out of the performance of this Agreement, shall be made available until such appeals, litigation, or claims have been disposed of, or three years after Agreement completion, whichever is longer. County shall keep the materials described above confidential unless otherwise required by law. ps_serv_contract_tcmpl atc.doc City ofNational City Agreement - Page 13 of 18 Revised 6/30/09 COUNTY AGREEMENT NUMBER 533563 AGREEMENT WITH CITY OF NATIONAL CITY FOR SENIOR NUTRITION PROGRAM 11.4 Subcontract. The Contractor shall insert a clause containing all the provisions of this Article 11 in all subcontract hereunder except altered as necessary for proper identification of the Contracting parties and the Contracting officer under the County's prime Agreement. ARTICLE 12 INSPECTION OF SERVICE 12.1 Subject to Inspection. All performance (including services, materials, supplies and equipment furnished or utilized in the performance of this Agreement, and woilcmanship in the performance of services) shall be subject to inspection and test by the County at all times during the term of this Agreement. Contractor shall cooperate with any inspector assigned by the County to permit the inspector to determine whether Contractor's performance conforms to the requirements of this Agreement. County shall perform such inspection in a manner as not to unduly interfere with Contractor's perforrnance. 12.2 Specification and Requirements. If any services performed by Contractor do not conform to the specifications and requirements of this Agreement, County may require Contractor to re -perform the services until they conform to said specifications and requirements, at no additional cost, and County may withhold payment for such services until Contractor correctly performs them. When the services to be performed are of such a nature that Contractor's cannot correct its performance, the County shall have the right to (1) require the Contractor to immediately take all necessary steps to ensure future performance of services conforms to the requirements of this Agreement, and (2) reduce the Agreement price to reflect the reduced value of the services received by County. In the event Contractor fails to promptly re -perform the services or to take necessary steps to ensure that future performance of the service conforms to the specifications and requirements of this Agreement, the County shall have the right to either (I) without terminating this Agreement, have the services performed, by Agreement or otherwise, in conformance with the specifications of this Agreement, and charge Contractor, and/or withhold from payments due to Contractor, any costs incurred by County that are directly related to the performance of such services, or (2) terminate this Agreement for default. ARTICLE 13 USE OF DOCUMENTS AND REPORTS 13.1 Findings Confidential. Any reports, information, data, etc., given to or prepared or assembled by Contractor under this Agreement which the County requests to be kept as confidential shall not be made available to any individual or organization by the Contractor without the prior written approval of the County. 13.2 Ownership, Publication, Reproduction And Use Of Material. All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems, and any other material or properties produced under this Agreement shall be the sole and exclusive property of County. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyright or patent right by Contractor in the United States or in any other country without the express written consent of County. County shall have unrestricted authority to publish, disclose, distribute and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. 13.3 Confidentiality. County and Contractor agree to maintain confidentiality and take industry appropriate and legally required measures to protect the confidentiality of any information regarding applicants, project participants or their immediate families which may be obtained through application forms, interviews, tests, reports, from public agencies or counselors or any other source. Without the written permission of the applicant or participant, such information shall be divulged only as necessary for purposes related to the audit and evaluation of the Agreement and then only to persons having responsibilities under the Agreement, including those furnishing services to Project under subcontract. County and Contractor agree that all information and records obtained in the course of providing services to project clients shall be subject to confidentiality and disclosure provisions of applicable Federal and State statutes and regulations adopted pursuant thereto. However, at County's request, Contractor shall permit County access to all records and information regarding the project and confidentiality shall not be a bar to County's access to all records and information. Contractor shall take industry appropriate and legally required measures to safeguard information regarding applicants, project participants or their immediate families including, but not limited to, the transfer of this information electronically or in hard copy format, verbal transfer of information, and staff training and monitoring regarding safeguards. Contractor shall evaluate their internal processes and practices for areas of potential vulnerability and take actions to put controls in place. Examples for management of confidential information can be found at www.cosdcompliance.org. 13.4 Maintenance Of Records. Contractor shall maintain and keep available all records within the County of San Diego for a minimum of three (3) years from the ending date of this Agreement unless County agrees in writing to an earlier disposition. 13.5 Custody Of Records. County, at its option, may take custody of Contractor's client records upon Agreement tertnination or at such other time as County may deem necessary. County agrees that such custody will conform to applicable confiden- ps_serv_contract_ternplate. doc City of National City Agreement- Page 14 of 18 Revised 6T30/09 COUNTY AGREEMENT NUMBER 533563 AGREEMENT WITII CITY OF NATIONAL CITY FOR SENIOR NUTRITION PROGRAM tiality provisions of State and Federal law. Said records shall he kept by County in an accessible location within San Diego CnLnfi' and shall be available to Contractor for examination and inspection. 13.6 Audit Requirement. Contractor shall annually engage a Licensed Certified Public Accountant to conduct an annual audit of 4. ^t 's operations. Contractors that expend $500,000 or more of federal grant funds per year shall also have an audit condu:ted in compliance with Government Auditing Standards, which includes Single Audit Act Amendments. Public Law 104-156, and OMB Circular A-133. Contractor shall include a clause in any Agreement or Agreement Contractor enters into with an audit firm to provide access by the County, State, Federal Government to the working papers of the independent auditor who prepare the audit for Contractor. Contractor shall submit two (2) copies of the annual audit report, the audit performed in accordance with OMB Circular A-133, and the management letter to the County fifteen (15) days after receipt from the independent Certified Public Accountant but no later than nine (9) months after the Contractor's fiscal year end. 13.7 Reports. Contractor shall submit reports required in Exhibit A and additional reports as may be requested by the COTR and agreed to by the Contractor. Format for the content of such reports may be developed by County. The timely submission of these reports is a necessary and material term and condition of this Agreement, and Contractor agrees that failure to meet specified deadlines will be sufficient cause to withhold payment. Contractor shall submit to County within thirty (30) days of the termination of this Agreement a report detailing all work done pursuant to this Agreement by Contractor. 13 8 Evaluation Studies. Contractor shall participate as requested by the County in research and/or evaluative studies designed to show the effectiveness and/or efficiency of Contractor services or to provide information about Contractor's project ARTICLE14 (RESERVED) ARTICLE 15 DISPUTES Notwithstanding any provision of this Agreement to the contrary, the Contracting Officer shall decide any dispute concerning a question of fact arising out of this Agreement that is not otherwise disposed of by the parties within a reasonable period of time. The decision of the Contracting Officer shall be final and conclusive unless determined by a court of competent jurisdiction to have been fraudulent, capricious, arbitrary or so grossly erroneous as necessarily to imply bad faith. Contractor shall proceed diligently with its performance hereunder pending resolution by the Contracting Officer of any such dispute. Nothing herein shall be construed as granting the Contracting Officer or any other administrative official; representative or board authority to decide questions of law, or issues regarding the medical necessity of treatment or to pre-empt any medical practitioners' judgment regarding the medical necessity of treatment of patients in their care. The foregoing does not change the County's ability to refuse to pay for services rendered if they dispute the medical necessity of care. ARTICLE 16 GENERAL PROVISIONS 16.1 Assignment and Subcontracting. Contractor shall not assign any interest in this Agreement, and shall not transfer any interest in the same (whether by assignment or novation), without the prior written consent of the County; County's consent shall not be unreasonably withheld.. The Contractor shall make no Agreement with any party for fumishing any of the work or services herein contained without the prior written consent of the COTR, pursuant to Paragraph 1.4. 16.2 Contingency. This Agreement shall bind the County only following its approval by the Board of Supervisors or when signed by the Purchasing and Contracting Director. 16.3 Entire Agreement. This Agreement, together with all Sections attached hereto and other agreements expressly referred to herein, constitute the entire agreement between the parties with respect to the subject matter contained herein. All prior or contemporaneous agreements, understandings, representations, warranties and statements, oral or written, including any proposals from Contractor and requests for proposals from County, are superseded. 16.4 Sections and Exhibits. All sections and exhibits referred to herein are attached hereto and incorporated by reference. 16.5 Further Assurances. Parties agree to perform such further acts and to execute and deliver such additional documents and instruments as may be reasonably required in order to carry out the provisions of this Agreement and the intentions of the parties. 16.6 GoverningLaw. This Agreement shall be governed, interpreted, construed and enforced in accordance with the laws of the State of California. ps_serv_con tract_templ ate. doc City of National City Agreement - Page 15 of 18 Revised 6/30/09 COUNTY AGREEMENT NUMBER 533563 AGREEMENT WITH CITY OF NATIONAL CITY FOR SENIOR NUTRITION PROGRAM 16.7 Headings. The Article captions, Clause and Section headings used in this Agreement are inserted for convenience of reference only and are not intended to define, limit or affect the construction or interpretation of any term or provision hereof. to 8 Modification Waiver. Except as otherwise provided in Article 6, "Changes," above, no modification, waiver, amendment of discharge of this Agreement shall be valid unless the same is in writing and signed by both parties. 16.9 Neither Party Considered Drafter. Despite the possibility that one party may have prepared the initial draft of this Agreement or played the greater role in the physical preparation of subsequent drafts, neither party shall be deemed the drafter of this Agreement and that, in construing this Agreement in case of any claim that any provision hereof may be ambiguous, no such provision shall be construed in favor of one party on the ground that such provision was drafted by the other. 16.10 No Other Inducement. The making, execution and delivery of this Agreement by the parties hereto has been induced by no representations, statements, warranties or agreements other than those expressed herein. 16.11 Notices. Notice to either party shall be in writing and either personally delivered or sent by certified mail, postage prepaid, return receipt requested, addressed to the party to he notified at the address specified herein. Any such notice shall be deemed received on the date of personal delivery to the party (or such parry's authorized representative) or three (3) business days after deposit in the U.S. Mail, as the case may be to the COTR and Contractor's Representative identified on the signature page. 16.12 Severability. If any term, provision, covenant or condition of this Agreement is held to be invalid, void or otherwise unenforceable, to any extent, by any court of competent jurisdiction, the remainder of this Agreement shall not be affected thereby, and each term, provision, covenant or condition of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 16.13 Successors. Subject to the limitations on assignment set forth in Clause 16.1 above, all terms of this Agreement shall be binding upon, inure to the benefit of, and be enforceable by the parties hereto and their respective heirs, legal representatives, successors, and assigns. 16.14 Time. Time is of the essence of each provision of this Agreement. 16.15 Time Period Computation. All periods of time referred to in this Agreement shall include all Saturdays, Sundays and state or national holidays, unless the period of time specifies business days, provided that if the date or last date to perform any act or give any notice or approval shall fall on a Saturday, Sunday or State or national holiday, such act or notice may be timely perfonned or given on the next succeeding day which is not a Saturday, Sunday or State or national holiday. 16.16 Waiver. The waiver by one party of the performance of any term, provision, covenant or condition shall not invalidate this Agreement, nor shall it be considered as a waiver by such party of any other term, provision, covenant or condition. Delay by any party in pursuing any remedy or in insisting upon full performance for any breach or failure of any term, provision, covenant or condition shall not prevent such party from later pursuing remedies or insisting upon full performance for the same or any similar breach or failure. 16.17 Third Party Beneficiaries Excluded. This agreement is intended solely for the benefit of the County and its Contractor. Any benefit to any third party is incidental and does not confer on any third party to this Agreement any rights whatsoever regarding the performance of this Agreement. Any attempt to enforce provisions of this Agreement by third parties is specifically prohibited. 16.18 Publicity Announcements and Materials. All public announcements, including those issued on Contractor letterhead, and materials distributed to the community shall identify the County of San Diego as the funding source for Contracted programs identified in this Agreement. Copies of publicity materials related to Contracted programs identified in this Agreement shall be filed with the COTR. County shall be advised at least twenty four (24) hours in advance of all locally generated press releases and media events regarding Contracted services identified in this Agreement. 16.19 Critical Incidents. Contractor shall have written plans or protocols and provide employee training for handling critical incidents involving instances of violence or threat of violence directed toward staff or clients, breach of confidentiality, fraud, unethical conduct, or instances of staff or client drug and/or alcohol use at the program. Contractor shall report all such incidents to the COTR within one work day of their occurrence. 16.20 Responsiveness to Community Concerns. Contractor shall notify County within forty eight (48) hours of receipt of any material complaints including but not limited to complaints referring to issues of abuse or quality of care, submitted to Contractor verbally or in writing, regarding the operation of Contractor's program or facility under this agreement. Contractor shall take appropriate steps to acknowledge receipt of said complaint(s) from individuals or organizations. ps_serv_contract_template. doc City of National City Agreement - Page 16 of 18 Revised 6/30/09 COUNTY AGREEMENT NUMBER 533563 AGREEMENT WITH CITY OF NATIONAL CITY FOR SENIOR NUTRITION PROGRAM Contractor shall take appropriate steps to utilize appropriate forums to address or resolve any such complaints received. rdothi'i;_ in fdis provision shall be interpreted to preclude Contractor fiom engaging in any legally authorized use of its facility property or business as approved, permitted or licensed by the applicable authority. ::'.ground Check Requirements. Contractor shall ensure that criminal background checks are required and completed prior to employment or placement of contractor staff and volunteers in compliance with any licensing, certification, or funding requirements, which may he higher than the minimum standard described herein. At a minimum, background checks shall be in compliance with Board of Supervisors policy C-28 and are required for any contractor staff or volunteer assigned to sensitive positions funded by this contract. Sensitive positions are those that: (l) physically supervise minors or vulnerable adults; (2) have unsupervised physical contact with minors or vulnerable adults; and/or (3) have a fiduciary responsibility to any County client, or direct access to, or control over, bank accounts or accounts with financial institutions of any client- 16.21.1 Criminal Background Check. Contractor shall have a documented process to review criminal history of candidates for employment or volunteers under this Agreement that will be in sensitive positions as defined in paragraph 16.21.4. At a minimum, Contractor shall check the California criminal history records, or state of residence for out-of-state candidates. Contractor shall review the information and determine if criminal history demonstrates behavior that could create an increased risk of harm to clients. Contractor shall document review of criminal background findings and consideration of criminal history in the selection of a candidate. (Example: Documented consideration of factors such as: If there is a conviction in the criminal history, how long ago did it occur? What were the charges? What was the individual convicted of and what was the level of conviction? If selected, where would the individual work and is the conviction relevant to the position?)- 16.21.2 Contractor shall either utilize a subsequent arrest notification service during employee or volunteers' tenure or check California criminal history annually. 16.21.3 Contractor shall keep the documentation of their review and consideration of the individual's criminal history on file in accordance with paragraph 13.4 "Maintenance of Records." 16.21.4 Definitions A. Activities of Daily Living: The basic tasks of everyday life, such as eating, bathing, dressing, toileting, and transferring. B. Minor: Individuals under the age of eighteen (18) years old. C. Sensitive Position: A job with responsibilities that can be criminally abused at great harm to the contract or the clients served. All positions that (1) physically supervise minors or vulnerable adults, (2) have unsupervised physical contact with minors or vulnerable adults, or (3) have fiduciary responsibility to a County client or direct access to, or control over client bank accounts, or serve in a financial capacity to the County client. D. Vulnerable Adult: (1) Individuals age eighteen (18) years or older, who require assistance with activities of daily living and who may be put at risk of abuse during service provision; (2) Individuals age eighteen (18) years or older who have a permanent or temporary limited physical and/or mental capacity that which may put them at risk of abuse during service provision because it renders them: unable to make decisions for themselves, unable to physically defend themselves, or unaware of physical abuse or other harm that could be perpetrated against them. E. Volunteer: A person who performs a service willingly and without pay. 16.22 Health Insurance. Contractor shall ask any client who is a parent or guardian of any minor(s), if all the minors for whom they are responsible have health insurance coverage. If the response for any child is "no" Contractor shall provide the client with County provided referral information. p s _se ry_c on t r a ct_te m p l a te. d o c City of National City Agreement- Page 17 of 18 Revised 6/30/09 COUNTY AGREEMENT NUMBER 533563 AGREEMENT WITH CITY OF NATIONAL CITY FOR SENIOR NUTRITION PROGRAM SIGNATURE PAGE -1..NT TERM. This Agreement shall be effective this day of July 2010 ("Effective Date") and end on June 30, n (i al Term") for a total Agreement period of one (1) year. r.: (ki_, :O EXTEND. The County's option to extend is for three (3) increments of one (1) year each for a total of three (3) years beyond the expiration of the Initial Term, not to exceed June 30, 2014, pursuant to Exhibit C Payment Schedule. Unless County notifies Contractor in writing, not less than thirty (30) days prior to the expiration date that they do not intend to renew the Agreement, the Agreement will be automatically renewed for another year. Options To Extend For One To Six Additional Months At End Of Agreement. County shall also have the option to extend the term of this Agreement in one or more increments for a total of no less than one (1) and no more than six (6) calendar months at the discretion of the County Purchasing and Contracting Director. Each extension shall be effected by written unilateral Agreement amendment delivered to Contractor no less than fifteen (15) calendar days prior to expiration of any Agreement term. The rates set forth in Article 4, Exhibit C, or other pricing section of this Agreement shall apply to any option exercised pursuant to this option clause unless provision for appropriate price adjustment has been made elsewhere in this Agreement or by Agreement amendment. All payments are subject to "Availability of Funds." COMPENSATION: Pursuant to Exhibit C, County agrees to pay Contractor a sum not to exceed three hundred thirty seven thousand one hundred seventy nine dollars ($337,179) for the initial term of this Agreement and three hundred thirty seven thousand one hundred seventy nine dollars ($337,179) for each of the three one-year option periods, for a maximum Agreement amount of one million three hundred forty eight thousand seven hundred sixteen dollars ($1,348,716), in accordance with the method of payment stipulated in Article 4. It is understood that the parties will meet and confer on the contract price if adjustments are made to the scope of work for an extension of the term or terms. These discussions shall not obligate either party to make a requested adjustment to the scope of work or price except as otherwise set forth in this Agreement, nor shall it relieve either party of its obligations under the Agreement. COTR. The County has designated the following individual as the Contracting Officer's Technical Representative ("COTR") Albert Venditti, Contract Administrator Aging & Independence Services 9335 Hazard way San Diego, CA 92123 Phone. (858) 505-6958; Fax: (858) 694-2316; e-mail: albert.venditti@sdcounty ca.gov CONTRACTOR'S REPRESENTATIVE. The Contractor has designated the following individual as the Contractor's Representative. Chris Zapata, City Manager City of National City 1243 National City Boulevard National City, CA 91950 Phone: (619) 336-4240; Fax: (619) 336-4327; e-mail: czapata@nationalcityca.gov IN WITNESS WHEREOF, County and Contractor have executed this Agreement effective as of the date first set forth above COUNTY OF SAN DIEGO CITY OF NATIONAL CITY By: By: WINSTON F. McCOL1., Director, CHRIS ZAPATA, City Manager Department of Purchasing and Contracting Date: APPROVED AS TO FORM AND LEGALITY By: Date: Senior Deputy County Counsel ps_serv_contract_template. doe City of National City Date Agreement - Page 18 of 18 Revised 6/30/09 COUNTY CONTRACT NUMBER 533563 COUNTY OF SAN DIEGO, HEALTH AND HUMAN SERVICES AGENCY AGREEMENT WITH CITY OF NATIONAL CITY FOR SENIOR NUTRITION PROGRAM EXHIBIT A — PERFORMANCE WORK STATEMENT 1. :.cope et ',i'orIPurpose Contractor shall provide nutritionally -sound meals and support services to individuals sixty (60) years old and older living throughout San Diego County. The meals shall be provided in two (2) settings: congregate (group setting) at Senior Dining Centers, and home delivery to frail seniors. Contractor shall provide or arrange transportation to and from Senior Dining Centers. There is no charge to the senior for these services, but Contractor shall provide the opportunity for the senior to make a contribution. Priority shall he given to serving persons with the greatest economic or social needs, in particular low-income minority individuals. 2. Background Information The Senior Nutrition Program, which began in the County of San Diego in 1975, is funded through Title III of the Older Americans Act, a federal program administered by state and county governments and operated under rules, policies, and regulations of the California Department of Aging (CDA). Aging & Independence Services (AIS) oversees this program for the County of San Diego. Nutrition services assist older individuals to live independently by promoting better health and reduced isolation through a program of coordinated congregate meal, home -delivered meal, and supportive services. Various contractors provide lunch for seniors at several sites throughout the county, and many contractors also provide home -delivered meals. Breakfast is also provided at some sites. 3. Goal 3.1 Contractor shall provide the services described herein to accomplish the following goals: 3.1.1 Assist individuals sixty (60) years and older to live independently because of better health and reduced isolation as a result of the Senior Nutrition Program, a program of coordinated congregate meals, home -delivered meals, and referrals to appropriate supportive services. 4. Deliverables 4.1 Congregate Meals. Contractor shall provide the maximum number of meals annually, pursuant to Exhibit C, to seniors in a congregate setting a minimum of five (5) days per week. The numher of meals shall be based upon historical actuals and shall not exceed the annual amount without prior County approval. 4.1.1 Contractor shall complete an assessment to determine the eligibility of participants. All assessments shall be made available to the Contracting Officer's Technical Representative (COTR) upon request. 4.1.2 Contractor shall complete a reassessment of the participant's need on an annual basis prior to or on the date of the original assessment. All reassessments shall be made available to the Contracting Officer's Technical Representative (COTR) upon request. 4.1.3 Contractor shall have a paid staff member or a trained volunteer responsible for the day-to-day activities at each site, and be physically on site during the time nutrition program activities are taking place. 4.1.4 Contractor shall ensure that each site has equipment, including tables and chairs, which are sturdy and appropriate for older individuals. 4.1.5 Each meal shall contain at least one-third (1/3) of the current daily recommended dietary allowance as established by the Food and Nutrition Board, National Academy of Sciences (http://www.iom.edu/CMS/3788.aspx), and shall comply with the most current Dietary Guidelines for Americans (http://health.gov/DietarvGuidelines/) established by the US Department of Agriculture and the US Department of Health and Human Services. 4.2 Home -Delivered Meals. Contractor shall provide the maximum numher of home -delivered meals annually, pursuant to Exhibit C, to seniors a minimum of five (5) days per week. Exhibit A - Performance Work Statement City of National City Page 1 of 7 Contract N 533563 COUNTY CONTRACT NUMBER 533563 COUNTY OF SAN DIEGO, HEALTH AND HUMAN SERVICES AGENCY AGREEMENT WITH CITY OF NATIONAL CITY FOR SENIOR NUTRITION PROGRAM EXHIBIT A — PERFORMANCE WORK STATEMENT 4.2.1 Contractor shall assess the level of need for home -delivered nutrition services of each eligible participant. 4.2.1.1 The initial assessment may be conducted by telephone. 42.1.2 A written assessment shall be conducted in the participant's home within two (2) weeks of initiation of services, and shall include an assessment of the type of meal that is appropriate for the participant in their living environment. 4.2.1.3 A reassessment of the participant's need shall be completed quarterly and a reassessment in the participant's home shall be conducted at least every other quarter. 4.2.1.4 All assessments shall be made available to COTR upon request. 4.2.2 Contractor shall provide written instructions for handling and re -heating of the meal in the language of the participant receiving the meal. 4.2.3 Each meal shall contain at least one third (1/3) of the current daily recommended dietary allowance as established by the Food and Nutrition Board, National Academy of Sciences, and shall comply with the most current Dietary Guidelines for Americans established by the US Department of Agriculture and the US Department of Health and Human Services. 4.3 Transportation. Contractor shall provide units of transportation annually, pursuant to Exhibit C, to eligible program participants. Contractor shall count each trip to and from Senior Dining Centers as a one-way trip. 4.3.1 Contractor's staff and/or volunteers providing transportation services shall possess a current and valid driving license issued by the State of California, and Contractor shall maintain a copy(ies) of said licenses on site for review by COTR. 4.4 Nutrition Education. Contractor shall provide the County -approved units of nutrition education a minimum of four (4) times per contract year to participants in each of Contractor's congregate and home -delivered meal program. 4.4.1 Nutrition education should include teaching participants regarding making smart food choices, and balancing food and physical activity to increase chances for a healthy life based on the 2005 Dietary Guidelines for Americans (http://www.health.gov/DietaryGuidelines/dga2005/document/defauIt.htm). 4.4.2 The County contractor for registered dietician services shall provide input, review, and approve Contractor's nutrition education content prior to presentation. 4.4.3 Contractor shall develop an annual nutrition education plan which shall be implemented, monitored, and kept on file. 4.5 Contractor shall provide County supplied Food Stamps program information to all senior nutrition clients. 4.6 Contractor shall establish a plan to serve older individuals with the greatest economic and social need. The Older Americans Act defines older individuals in the greatest economic need as any person sixty (60) years or older whose need results from an income level at or below the poverty line as defined by the Federal Bureau of the Census (http://www.census.gov/) and greatest social need as physical and mental disabilities, language barriers, and cultural, social, or geographical isolation, including isolation caused by racial or ethnic status, that restricts the ability of an individual to perform normal daily tasks; or threatens the capacity of the individual to live independently. Contractor's plan shall be submitted to County no later than thirty (30) days afier award of contract. Exhibit A — Performance Work Statement City of National City Page 2 of 7 Contract k 533563 COUNTY CONTRACT NUMBER 533563 COUNTY OF SAN DIEGO, HEALTH AND HUMAN SERVICES AGENCY AGREEMENT WITH CITY OF NATIONAL CITY FOR SENIOR NUTRITION PROGRAM EXHIBIT A — PERFORMANCE WORK STATEMENT i a. t_ 'i,a1 and Geographic Service Area Contractor shall provide services to individuals sixty (60) years old and older living throughout the County of San Diego. Priority shall he given to serving persons with the greatest economic or social needs, in particular low- income minority individuals. 5.1 Dining site locations, days of service, hours of service and type(s) of meal served (breakfast and/or lunch): 5.1.1 Dining Site I: George Waters Nutrition Center,1415 D Ave., National City CA 91950; Monday through Friday 11:00 AM to 12:30 PM; Lunch. 5.1.2 Dining Site 2: Granger Avenue Cafe, 2725 Granger Ave., National City CA 91950. Monday through Friday; 11:00 AM to 12:oo PM. Lunch. 5.1.3 Dining Site 3: Summercrest, 2716 E. Plaza Blvd., National City CA 91950. Monday through Friday. 11:00 AM to 12:30 PM. Lunch. 6. Payment for Services 6.1 Contractor shall submit a monthly claim for the actual service deliverables (including data pursuant to paragraph 7.8 below) for the prior month to the COTR by the fifteenth (15th) of the following month. 6.1.1 Claims and data not submitted by the fifteenth (15th) of the month will not be processed for payment until all required information is submitted. 6.2 Funding Components; Fiscal Terms and Conditions. The Senior Nutrition Program is funded by the following components and follow the fiscal terms and conditions listed below: 6.2.1 California Department of Aging (CDA) Title III Allocation. This funding is allocated as follows: 6.2.I.1 State of California C-1 Funding Stream. This is the fixed supplemental rate dollar amount for a portion of Contractor's congregate meals costs. Payments are monthly compensation payments to Contractor for the provision of congregate meals according to Exhibit A, Performance Work Statement. 6.2.1.2 State of California C-2 Funding Stream. This is the fixed supplemental rate dollar amount for a portion of Contractor's home -delivered meal costs. Payments are monthly compensation payments to Contractor for the provision of home -delivered meals according to Exhibit A, Performance Work Statement. 6.2.1.3 State of California B Funding Stream. This is the fixed supplemental rate dollar amount for a portion of Contractor's transportation costs Payments are monthly compensation payments to Contractor for the provision of transportation (one-way trips) services according to Exhibit A, Performance Work Statement. 6.2.2 Nutrition Services Incentive Program (NSIP). This is the fixed supplemental rate dollar amount for incentive payments frorn the NSIP. NSIP payments are monthly incentives based on Contractor's on -going high achievement based on the number of meals (C-1 and C-2) served during the prior contract year. This amount will be determined annually by the County, based on funds received from the State and Contractor's prior year's performance (i.e. meals served). NSIP funds shall be used to purchase food to be used in the Senior Nutrition Program and not to meet cost sharing or to match funds for any other federal program. Exhibit A — Performance Work Statement Page 3 of 7 City of National City Contract tt 533563 COUNTY CONTRACT NUMBER 533563 COUNTY OF SAN DIEGO, HEALTII AND HUMAN SERVICES AGENCY AGREEMENT WITH CITY OF NATIONAL CITY FOR SENIOR NUTRITION PROGRAM EXHIBIT A — PERFORMANCE WORK STATEMENT One -Time -Only (OTO) Allocation. OTO allocations are one-time annual monetary awards for .I.;signated goods or services related to C-1, C-2 or B Programs, which are directly related to the Senior Nutrition Program, based on special cost reimbursement requests from Contractor. OTO awards are based on funds received from the State of California, and must be approved in advance by the County. Contractor shall procure the goods or services by utilizing competitive measures, and provide documentation of receiving three (3) or more quotes to substantiate fair and reasonable pricing. County will reimburse costs upon submission of receipts with the invoice in the month following the month in which the expenditure(s) occurred. 6.2.4 Contractor's program intone, which is participant donations/contributions and guest fees. 6.2.5 Contractor's other revenue, such as fundraising. Said compensation is not designed to fully fund the Senior Nutrition Program. The fixed supplement rates are determined to offset the cost of providing services based on and subject to availability of funds from the State of California, California Department of Aging (CDA). The County shall have the authority to increase or reduce the contract compensation, via the issuance of a Unilateral Amendment, signed by the County's Director of Purchasing and Contracting, as required to execute 6.2.2 and 6.2.3 above. 7. General Requirements for Service Delivery 7.1 Contractor's services shall be based upon the California Code of Regulations, Title 22, Division 1.8, Chapter 4, Article 5 (http://ccr.oal.ca.gov/linkedslice/default.asp?SP—CCR-1000&Action=Welcome), the California Retail Food Code (CRFC) (http://www.aging.ca.gov/aaa/guidanee/california_food retail code.pdf), and the Occupational Safety and Health Administration (OSHA) (http://www.osha.gov/). Additionally, a valid health permit from the County of San Diego, Department of Environmental Health for all food production sites and sub -contracted caterers is required. 7.2 Contractor shall ensure that the facilities in which the meals will be served shall be accessible via public transportation, if available, and shall comply with the requirements of the Americans with Disabilities Act (ADA) (http://www.ada.gov/), and Title 24 of the California Code of Regulations. All Contractor facilities are subject to inspection and approval. 7.3 Performance Expetations. Contractor shall maintain one hundred percent (100%) compliance with service levels stated in this Agreement. A Corrective Action Plan is require to be submitted by Contractor if Contractor falls below ninety five percent (95%) of the service levels. Service levels shall be reviewed monthly, quarterly, and annually by Contractor and County staff. Failure to bring service levels up to the contracted levels may result in re -negotiation of the contracted service levels or termination of the contract. The budget level will be revised to be commensurate with the lower level of service(s). 7.4 Reference to A1S. All printed materials, publicity, and media outreach prepared or conducted by Contractor shall include a reference to Aging & Independence Services as a funding source. Copies of publicity materials related to programs identified in this contract shall be filed with Aging & Independence Services Contract Operations_ 7.5 Equipment Documentation. Contractor shall document, in writing, the need for purchasing equipment and provide at least three (3) estimates per item requested. Written documentation must demonstrate a direct relationship between the goals, objectives and specific requirements for service delivery and the equipment to be purchased. In the case of automation equipment, Contractor must demonstrate that the equipment and related software to be purchased will meet County of San Diego/Health and Human Services Agency/Aging & Independence Services requirements and standards, Exhibit A — Performance Work Statement City of National City Page 4 of 7 Contract h 533563 COUNTY CONTRACT NUMBER 533563 COUNTY OF SAN DIEGO, IIEALTII AND HUMAN SERVICES AGENCY AGREEMENT WITH CITY OF NATIONAL CITY FOR SENIOR NUTRITION PROGRAM EXHIBIT A —PERFORMANCE WORK STATEMENT 7.6 _ Contractor is required to provide a minimum of a fifteen percent (15%) match for program costs in cash or in -kind income. 7.7 Cultural Competence and Diversity. Contractor shall support the County of San Diego, the Health and Human Services Agency, and Aging & Independence Services through organizational and systematic practices demonstrating cultural competence and diversity. A set of congruent behaviors, attitudes and policies for programs and systems shall be adopted that enable people to work effectively in cross-cultural situations. All services provided shall be oriented to meet the unique linguistic and cultural needs of the diverse clients to be served. 8. Specific Requirements for Service Delivery 8.1 There arc three (3) major program components of the Senior Nutrition Program: food service, support services, and the advisory role of participants: 8.1.1 Food Service. Con tractor shall provide a hot or other appropriate meal that meets minimum nutrition requirements, served a minimum of five (5) or more days a week in a congregate setting. Meals to participants who are homebound must be made available every day of the year although frozen meals for the weekend or holidays may be delivered during the week (see above for Title 22 link). Meals shall be prepared, served and delivered in a manner which complies with local public health laws and regulations. 8.1.2 Support Services. Contractor shall conduct outreach activities to ensure participation of eligible older persons, particularly those in greatest economic or social need; must develop or maintain coordination with other social services agencies; and plan for and provide nutrition education services. 8.1.3 Advisory Role of Participants. Contractor shall have procedures for obtaining the views of participants regarding the services they receive. This shall be implemented through the establishment of a Program Council or other advisory body of participants approved by Aging & Independence Services. 8.2 Staffing/Administration. Contractor shall maintain an adequate number of qualified persons to assure the satisfactory implementation of: program leadership; program planning; provision of nutrition services; outreach and other services; volunteer activities; financial and contract management; and data collection for required federal, state and county reports and records. Notification of program changes must be made to the County within seventy two (72) hours when said changes will affect the delivery of services to the participants. Example of such situations may be staff changes, site closures (temporary or permanent) and vehicle incidents. 8.3 Meal Contributions by Eligible Participants. Eligible persons receiving nutrition services shall be given the opportunity to contribute to the costs of the service provided and shall determine for themselves what they are able to contribute. Contractor shall not deny services to any person because of failure to contribute. Methods to receive contributions shall ensure anonymity. Contractor shall encourage participants to contribute towards the cost of the meal and shall suggest a minimum amount. The minimum suggested donation shall be developed with input from the Program Council or other advisory body of participants. A suggested contribution schedule may be developed, considering the income ranges of older persons in the community. Contribution schedules shall not be used as a "means" test to determine eligibility. 8.3.1 Contractor shall establish written procedures to protect contributions and fees from loss, mishandling, and theft. Such procedures shall be kept on file at Contractor's site. 8.3.2 Contributions are considered program income and shall be used to increase the number of meals served. Exhibit A — Performance Work Statement Page 5 of 7 City of National City Contract Y 533563 COUNTY CONTRACT NUMBER 533563 COUNTY OF SAN DIEGO, HEALTH AND HUMAN SERVICES AGENCY AGREEMENT WITH CITY OF NATIONAL CITY FOR SENIOR NUTRITION PROGRAM EXHIBIT A —PERFORMANCE WORK STATEMENT 8.4 i'1 aI Charges for Staff and Guest under Sixty (60) Years of Age. Contractor may serve meals to staff and esl> under sixty (60) years of age if doing so will not deprive an eligible participant of a meal. These individuals shall pay at least the full cost of the meal. 8.4.1 Charges for meals are considered program income and shall be used to increase the number of meals served. 8.5 Records. Reports and Distribution Infomration. Contractor shall maintain a system for the collection of data that will accurately reflect the Contractor's program and financial operations, will meet requirements with respect to confidentiality, and fulfill the information required by this contract. 8.6 Holidays. A maximum of twelve (12) recognized holiday closings will be allowed per year. These holidays must be submitted in advance to the COTR at the beginning of each fiscal year. Exceptions will be handled on a case -by -case basis. 8.6.1 If more than twelve (12) holiday closings are taken, Contractor must make up the days lost. 8.7 Data Collection and Reporting 8.7.1 Contractor shall utilize the AIS-identified Automated Data Collection System to: 8.7.1.1 Register and maintain all client demographic and assessment data for all active clients within each fiscal year, 8.7.1.2 Track and report all service unit delivery data (via bar-coding and manual data entry) within each fiscal year. 8.7.2 Contractor shall maintain and report accurate, daily meal counts, nutrition education and transportation units in the County -identified Automated Data Collection System. 8.7.3 Contractor shall submit monthly summary reports of the information listed above in 8.7 and claims to AIS Contract Operations by fifteenth (15th) of month following the month is which the services were provided. Claims will be paid upon successful determination of reconciled data as mentioned in paragraphs 8.7,1 and 8.7.2 above. 8.7.4 Contractor shall submit a completed report of actual costs expended for each service category at the end of each contract fiscal year for the term of the contract, as requested by the County, in the form and format as provided by AIS. 8.8 Customer Satisfaction Survey. Contractor shall annually obtain the views of participants regarding the services received through the development and utilization of a customer satisfaction survey which to be pre - approved by the County. 8.8.1 Contractor shall provide a summary report of the results of the satisfaction survey to the COTR by the fifteenth (151h) of the month following the completion of the survey cycle. 8.8.2 Contractor shall achieve an overall "very satisfied" or "somewhat satisfied" rating from a minimum of ninety percent (90%) of clients with each Customer Satisfaction Survey. Contractor shall incrementally improve service each year to achieve this rating. 8.8.3 Contractor shall make all survey results available to COTR upon request. 9. Disaster Preparedness Exhibit A — Performance Work Statement City of National City Page 6 of 7 Contract 4 533563 COUNTY CONTRACT NUMBER 533563 COUNTY OF SAN DIEGO, HEALTH AND HUMAN SERVICES AGENCY AGREEMENT WITH CITY OF NATIONAL CITY FOR SENIOR NUTRITION PROGRAM EXHIBIT A —PERFORMANCE WORK STATEMENT lie:- of critical services to seniors and persons with a disability during a disaster, Contractor shall: 9.1.1 Establish and maintain a disaster plan to ensure preparedness and the ability to continue to deliver services during and post -disaster. 9.1.2 Provide the County with the following: 9.1.2.1 Primary and secondary emergency contact phone numbers 9.1.2.2 Status updates, upon request, during and post -disaster, including the following at a minimum: 9.1.2.2.1 Operability of sites and/or services 9.1.2.2.2 Services provided to the target population 9.1.2.2.3 Service capacity Exhibit A — Performance Work Statement City of National City Page 7 of 7 Contract # 533563 COUNTY CONTRACT NUMBER 533563 COUNTY OF SAN DIEGO, HEALTH AND HUMAN SERVICES AGENCY AGREEMENT WPTH CITY OF NATIONAL CITY FOR SENIOR NUTRITION PROGRAM EXHIBIT B — VEHICLE USAGE AND INSURANCE REQUIREMENTS This AGREEMENT is made by the COUNTY OF SAN DIEGO, HHSA, AGING & INDEPENDENCE ICES, herein called "AIS" and City Of National City herein called "Contractor." WHEREAS, Contractor desires to take possession from AIS, the following vehicles for its use under Contract Number 533563: 1. 2008 Ford Ranger (Hotshot), Vehicle Identification Number (VIN) IFTYR1OU78PB01735, License Plate Number 1315992, County Identification Number 356. 2. 2003 Ford Ranger (Hotshot), Vehicle Identification Number (VIN) IFTYR10U63PB69923, County Identification Number 335. AIS agrees to provide County Identification Numbers, subject to the requirements set forth below and AIS' grant/contract with our funding source, enabling Contractor to provide transportation services for seniors. NOW THEREFORE, AIS and Contractor agree as follows: 1. The vehicles shall be registered "San Diego County Aging & Independence Services" as the lien holder, and Contractor AND San Diego County Aging & Independence Services as registered owners. 2. Contractor shall be solely responsible for all maintenance, repair and proper usage of the vehicles, in accordance with the manufacturer's requirements and standards. Contractor is responsible for all repairs necessary as a result of normal operating usage and/or accident. Records of all maintenance and repairs will be maintained and made available to AIS upon request. 3. Contractor shall utilize the vehicles only for the purpose of transporting seniors to the congregate site/home-delivered meals to seniors and further uses as specified in the contract and/or addendum to this agreement. Any other use of these vehicles requires AIS written approval. 4. Contractor shall operate the vehicles only within the geographical San Diego County boundaries. Any requests to make outside trips must be submitted in writing to AIS for review before the trip is taken. 5. That, when possible, Contractor shall coordinate with other senior providers to maximize the availability of transportation to seniors. 6. That Contractor shall comply with all rules and regulations of the State of California Department of Motor Vehicles regarding the public transportation of passengers. 7. That AIS vehicles and all advertisement regarding the vehicles identify the County of San Diego, Aging & Independence Services as the provider of the vehicles. The AIS logo must be maintained, remain free of obstruction and clearly visible. Any damage to the logo must be repaired within (30) days at Contractor's expense. 8. That Contractor shall report to the County of San Diego, Aging & Independence Services within twenty- four (24) hours, any accidents in which the vehicles are involved, within ten (10) working days Contractor must submit a written report to AIS which includes a copy of the police report, the amount of damage and the steps to be taken by the Contractor to repair or replace the vehicles. 9. That on or before September 1, and on or before that date of each succeeding year in which the vehicles are used, Contractor shall file a report with AIS consisting of the vehicles log, the vehicles maintenance record, and a general summary of the current condition and use of the vehicles and the current location at which the vehicles are being utilized. 10. That Contractor shall notify AIS immediately if the vehicles are stolen or otherwise not in Contractor's possession. Exhibit B— Vehicle Usage and Insurance Requirements City of National City Page 1 of 4 Contract q 533563 COUNTY CONTRACT NUMBER 533563 COUNTY OF SAN DIEGO, HEALTH AND IIUMAN SERVICES AGENCY AGREEMENT WITH CITY OF NATIONAL CITY FOR SENIOR NUTRITION PROGRAM EXHIBIT B — VEIHCLE USAGE AND INSURANCE REQUIREMENTS 11. When Contractor determines they no longer can utilize the vehicles for their stated purposes, Contractor shall immediately contact AIS in writing and AIS will determine the vehicle's disposition. If it is determined that the vehicles are to be disposed of, Contractor shall be responsible for returning the vehicles to AIS, as directed by AIS staff. 12. That Contractor shall make available the vehicles for inspection to AIS or a County designee requested by AIS. 13. Contractor agrees to place AIS vehicle identification number decals on the vehicles as instructed. The identification numbers are to remain free of obstruction and if damaged shall be replaced at Contractor's expense within thirty (30) days. 14. Within thirty (30) days written notification, via Unilateral Amendment, County may terminate the provisions specific to vehicle possession and usage included in Exhibit B. ARTICLE 1 INSURANCE REQUIREMENTS FOR CONTRACTORS Without limiting Contractor's indemnification obligations to County, Contractor shall provide at its sole expense and maintain for the duration of this contract, or as may be further required herein, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of the work by the Contractor, his agents, representatives, employees or subcontractors. 1. Minimum Scope of Insurance Coverage shall be at least as broad as: A. Commercial General Liability, Occurrence form, Insurance Services Office form CG0001. B. Automobile Liability covering all owned, non owned, hired auto Insurance Services Office form CA0001. C. Workers' Compensation, as required by State of California and Employer's Liability Insurance. 2. Minimum Limits of Insurance Contractor shall maintain limits no less than: A. Commercial General Liability including Premises, Operations, Products and Completed Operations, Contractual Liability, and Independent Contractors Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. The General Aggregate limit shall be $2,000,000. B. Automobile Liability: $1,000,000 each accident for bodily injury and property damage. C. Employer's Liability: $1,000,000 each accident for bodily injury or disease. Coverage shall include waiver of subrogation endorsement in favor of County of San Diego. 3. Deductibles and Self -Insured Retentions Any deductible or self -insured retention must be declared to and approved by the County's Risk Manager. At the option of the County, either the insurer shall reduce or eliminate such deductibles or self -insured retentions as respects the County, the members of the Board of Supervisors of the County and the officers, agents, employees and volunteers; or the Contractor shall provide a financial guarantee satisfactory to the County guaranteeing payment of losses and related investigations, claim administration, and defense expenses. 4. Other Insurance Provisions The general liability and automobile liability policies are to contain, or be endorsed to contain the following provisions: A. Additional Insured Endorsement Exhibit B — Vehicle Usage and Insurance Requirements City of National City Page 2 of 4 Contract N 533563 COUNTY CONTRACT NUMBER 533563 COUNTY OF SAN DIEGO, HEALTH AND HUMAN SERVICES AGENCY AGREEMENT WITH CITY OF NATIONAL CITY FOR SENIOR NUTRITION PROGRAM EXHIBIT B — VEHICLE USAGE AND INSURANCE REQUIREMENTS Any general liability policy provided by Contractor shall contain an additional insured endorsement annlying coverage to the County of San Diego, the members of the Board of Supervisors of the County and the officers, agents, employees and volunteers of the County, individually and collectively. B. Primary Insurance Endorsement For any claims related to this Contract, the Contractor's insurance coverage shall be primary insurance as respects the County, the members of the Board of Supervisors of the County and the officers, agents, employees and volunteers of the County, individually and collectively. Any insurance or self-insurance maintained by the County, its officers, officials, employees, or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. C. Notice of Cancellation Each required insurance policy shall be endorsed to state that coverage shall not be canceled by either party, except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the County at the address shown in section of Contract entitled "Notices". D. Severability of Interest clause Coverage applies separately to each insured, except with respect to the limits of liability, and that an act or omission by one of the named insureds shall not reduce or avoid coverage to the other named insureds. GENERAL PROVISIONS 5. Qualifying brsurers All required policies of insurance shall be issued by companies which have been approved to do business in the State of California by the State Department of Insurance, and which hold a current policy holder's alphabetic and financial size category rating of not less than A-, VII according to the current Best's Key Rating guide, or a company of equal financial stability that is approved in writing by County's Risk Manager. 6. Evidence of Insurance Prior to commencement of this Contract, but in no event later than the effective date of the Contract, Contractor shall furnish the County with certificates of insurancc and amendatory endorsements effecting coverage required by this clause. Contractor shall furnish certified copies of the actual required insurance policies within thirty (30) days after commencement of Contract. Thereafter, copies of renewal policies, certificate and amendatory endorsements shall be furnished to County within thirty (30) days of the expiration of the term of any required policy. Contractor shall permit County at all reasonable times to inspect any policies of insurance, which Contractor has not delivered to County. 7. Failure to Obtain or Maintain Insurance; County's Remedies Contractor's failure to provide insurance specified or failure to furnish certificates of insurance, amendatory endorsements and certified copies of policies, or failure to make premium payments required by such insurance, shall constitute a material breach of the Contract, and County may, at its option, terminate the Contract for any such default by Contractor. 8. No Limitation of Obligations The foregoing insurance requirements as to the types and limits of insurance coverage to be maintained by Contractor, and any approval of said insurance by the County are not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by Contractor pursuant to the Contract, including, but not limited to, the provisions concerning indemnification. 9. Review of Coverage County retains the right at any time to review the coverage, form and amount of insurance required herein and may require Contractor to obtain insurance reasonably sufficient in coverage, form and atnount to provide Exhibit t3— Vehicle Usage and Insurance Requirements City of National City Page 3 of 4 Contract # 533563 COUNTY CONTRACT NUMBER 533563 COUNTY OF SAN DIEGO, HEALTH AND HUMAN SERVICES AGENCY AGREEMENT WITH CITY OF NATIONAL CITY FOR SENIOR NUTRITION PROGRAM EXHIBIT B — VEHICLE USAGE AND INSURANCE REQUIREMENTS ade atc p otection against the kind and extent of risk which exists at the time a change in insurance is required. 10. Self -Insurance Contractor may, with the prior written consent of County's Risk Manager, fulfill some or all of the insurance requirements contained in this Contract under a plan of self-insurance. Contractor shall only be permitted to utilize such self-insurance if in the opinion of County's Risk Manager, Contractor's (i) net worth, and (ii) reserves for payment of claims of liability against Contractor, are sufficient to adequately compensate for the lack of other insurance coverage required by this Contract. Contractor's utilization of self-insurance shall not in any way limit liabilities assumed by Contractor under the Contract. 11. Claims Made Coverage If coverage is written on a "claims madc" hasis, the Certificate of Insurance shall clearly so state. In addition to the coverage requirements specified above, such policy shall provide that: A. The policy retroactive date coincides with or precedes Contractor's commencement or work under the Contract (including subsequent policies purchased as renewals or replacements). B. Contractor will make every effort to maintain similar insurance during the required extended period of coverage following expiration of the Contract, including the requirement of adding all additional insureds. C. If insurance is terminated for any reason, Contractor shall purchase an extended reporting provision of at least two (2) years to report claims arising in connection with the Contract. D. The policy allows for reporting of circumstances or incidents that might give rise to future claims. 12. Subcontractors' Insurance Contractor shall require that any and all Suhcontractors hired by Contractor are insured in accordance with this Contract. If any Subcontractors coverage does not comply with the foregoing provisions, Contractor shall defend and indemnify the County from any damage, loss, cost or expense, including attorney fees, incurred by County as a result of Suhcontractors failure to maintain required coverage. 13. Waiver of Subrogation Contractor and County release each other, and their respective authorized representatives, from any Claims (as defined in the Article entitled "Indemnity" of the Contract), but only to the extent that the proceeds received from any policy of insurance carried by County or Contractor, other than any self-insurance, covers any such Claim or damage. hicluded in any policy or policies of insurance provided by Contractor hereunder shall be a standard waiver of rights of Subrogation against County by the insurance company issuing said policy or policies. Exhibit B — Vehicle Usage and insurance Requirements City of National City ARTICLE 2 [RESER VED] Page 4 of 4 Contract k 533563 COUNTY CONTRACT NUMBFR 533563 COUNTY OF SAN DIEGO, HEALTH AND HUMAN SERVICES AGENCY AGREEMENT WITH THE CITY OF NATIONAL CITY FOR SENIOR MJTRITION PROGRAM EXIIIBIT C — FISCAL TERMS & CONDITIONS AND PRICING SCHEDULE I. itPENSATION: The compensation listed below is not designed to fully fund the program. The fixed supl',mental rates are developed annually based on funding and determined to offset the cost of providing servres. these rates are subject to availability of funding from the State of California, California Department of Aging (CDA). A completed report of actual costs (closeout report) expended shall be submitted at the end of the fiscal year. 2. SERVICE UNITS AND RATES FOR FISCAL YEAR 2010-2011 Exhibit A Paragraph Reference Services Funding Source # of Service Units Fixed Supplemental Rate Total 4.1 Congregate Meals Title IIl-CI (1) 38,400 $4.23 $162,432 4 2 Home -Delivered Meals Title II1-C2 (2) 29,700 $4.00 $118,800 4.3 Transportation Title III-B (3) 1,680 $5.00 $8,400 6.2.2 Incentive Payments* NSIP-C1 38,400 $0.72 $27,648 6.2.2 Incentive Payments* NSIP-C2 29,700 $0.67 $19,899 6.2.3 One -time -only (OTO) OTO-CI 0 0 0 6.2.3 One -time -only (OTO) OTO-C2 0 0 0 6.2.3 One -time -only (OTO) OTO-B 0 0 0 TOTAL $337,179 (1) State of California C-I funding stream (2) State of California C-2 funding stream (3) State of California B funding stream * Nutrition Services Incentive Payment (NSIP) dollar amounts are estimated ONLY and may be adjusted based on actual prior year number of meals served. Exhibit C — Fiscal Terms & Conditions and Pricing Schedule The City of National City Pagel of 1 Contract # 533563 County of San Diego (Sample) Novation Agreement Request for Proposal for the Operation of the George H. Waters Nutrition Center COUNTY OF SAN DIEGO NOVATION AGREEMENT FOR CONTRACT NO. his AGREEMENT is by and among County of San Diego, a political subdivision of the State of California, hereinafter referred to as COUNTY, CDC City of National City and Name of Organization 2. COUNTY, CDC City of National City , and Name of Organization 2 are hereinafter referred to collectively as the PARTIES. WHEREAS, COUNTY and CDC City of National City have entered into an agreement, County Contact No. 533563 , for -inn of Title of Services Services; r'. WHEREAS, CDC City of National City has assigned all interests to Name of Organization 2 ; WHEREAS, CDC City of National City has established that Name of Organization 2 posses, s'the experience, skills and resources necessary to perform the services specified in Contract No. 533563 and that Name of Or ization ;AM perform the balance services specified in Contract No. 533563; WHEREAS, COUNfY is willing to release CDC City of National City from a uture obligations under Co act No. 533563/and Name of Organization 2 agrees to accept the obligations specified in Contra i,No. 533563; WHEREAS, CDC City of National City wishes to be released from all futurepbligations under ContractNo 53'563 and CDC City of National City agrees to release all claims (if any',) against COUNTY with respect to Contract No. 533 5 3 ; and WHEREAS, Name of Organization 2 is willing to assume the services specified in Contract No. 533563 in consideration for the balance of compensation in Contract No. 533563 and providin CDC City of National City releases,all rights (if any) arising under Contract No. 533563 ; NOW THEREFORE, in consideration of the promises set -forth herein; file mutual covenants aniobligations set forth herein and otherwise acknowledged, the PARTIES hero do mutually agree as follows: I. CDC City of National City is hereby released from all obligations under Contract No. 533563 i r r 2.CDC City ofNatiohal City hereby releases any:clarmaor compensation or other rights which have accrued or might have accrued in respect to Contract No.•5 33563 after the effective date of this AGREEMENT. 3. Name of Organization 2 hereby assumes all obligations of Contract No. 533563 as incorporated in Contract No. New contract Number effective on the effective date of this AGREEMENT. IN WITNESS THEREOF, the PARTIES have executedihis AGREEMENT to be effective: Insert Date dye. CDC City of National City Name of Organization 2 : Date: COUNTY: BY: Date WINSTON F. M COLL Director, Purcliasing and Contracting' BY: Date: NAME: TITLE: Rev. 12-22-10 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: January 24, 2012 AGENDA ITEM NO. 17 EM TITLE: r,Npoint two National City Council members to a YMCA Capital Steering Committee in order to identify fundraising prospects and determine local fundraising potential for Las Palmas Park. PREPARED, BY: Jessica Cissef DEPARTMENT: PHONE: (619) 336.4243 APPROVED BY: EXPLANATION: In early 2011, the Community Development Commission sold bonds to create resources to improve Quality of Life facilities. As part of the bond program $ 8 to $9 million was allocated to Las Palmas Park. The initia "estimates for the conceptual plans at Las Palmas Park show a need for additional funding. The YMCA of San Diego County -South Bay plans to fundraise locally to generate monies to complete the project and would. like to form a Capital Steering Committee in conjunction with the City to assist in directing the efforts of the campaign. Because the YMCA is a non-profit, they are able to leverage funds by local fundraising campaigns resulting in more resources for a final product/facility. The MOU between the City and the YMCA was approved on January 10th to solidify the partnership and initiate a fundraising campaign. The creation of the Capital Steering Committee is consistent with the MOU between the City and the FINANCIAL STATEMENT: ACCOUNT NO. n/a ENVIRONMENTAL REVIEW: n/a ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Appoint two City Council members to the YMCA Capital Steering Committee. BOARD / COMMISSION RECOMMENDATION: n/a ATTACHMENTS: 1) Staff report !'r"'ate on the Quality of Life Facilities Plan (Community Services) U07, National City established its Strategic Plan with goals to improve quality of life and to achieve fiscal sustainability. To achieve fiscal sustainability, the strategic plan action 2C states, "Partner with Community -'ar,izations.and Regional Agencies to Pursue Our Legislative Platform and Aggressively Seek Funding from oz.al, State, & Federal Sources." To improve quality of life, strategic goal 3 actions include, "Continue to r'; oL 'H ie Recreational Programs and Community Services, Maintain Existing Parks and Public Facilities and Find Funding to Construct Park Master Plans, Partner with the Port District to Build Aquatic Center, Granger Park, and Improve Public Access to the Harbor District, and Preserve and Promote Historic Resources and Cultural Assets." The City has established partnerships and Council decisions have created the opportunity to expand partnerships to sustain programs. Established partnerships include the Greater San Diego Boys and Girls Club in Kimball Park and the YMCA of San Diego County -South Bay Branch (Aquatics Center) in Pepper Park. In early 2011, the Community Development Commission sold bonds to create resources to improve Quality of Life facilities. At the July 5, 2011 City Council meeting, the Parks, Senior, and Youth Ad Hoc committees were initiated by Council. Since that date, there have been recreation working group meetings between the City and our potential partners, the YMCA of San Diego County -South Bay Branch and the Greater San Diego Boys and Girls Club, to discuss how the City can utilize our bond money to create sustainable quality of life facilities and programs. Because there are capital resources, but limited operating resources, staff has been discussing expanding partnerships with local non -profits to sustain operations. In late October and early November there were Council briefings held between City staff and all Council members to update the progress of the quality of life facilities plan. The first round of ad hoc meetings took place on November 15th and November 2151 and included members of the City Council, the Parks, Recreation, and Senior Advisory Board (PRAB) members (who are National City residents), a Public Art Committee member, and City staff. Additional updates were provided to PRAB. City staff provided reporting on current programs, fees, and participation numbers as well as facility and park maintenance costs. In addition, there has been conceptual planning done by Kimley Horn and Associates to incorporate ideas and discussion by City staff, non -profits, and the public. The initial estimates for the conceptual plans at Las Palmas Park show a need for additional funding. The South Bay YMCA has expressed a desire to fundraise locally to generate monies to complete the project. Because the YMCA is a non-profit, they are able to leverage funds by local fundraising campaigns resulting in more resources for a final product/facility. Staff created a draft MOU that was provided to and reviewed by the YMCA board on November 30, 2011. The YMCA board voted to proceed with the draft MOU. At the December 6, 2011 meeting, the City Council was provided an update on the YMCA board position and directed staff to bring the draft MOU forward for Council review in January. At the January 10, 2012 City Council Meeting, the MOU was approved. The initial steps in the fundraising campaign include the creation of a YMCA Capital Steering Committee in order to identify fundraising prospects and determine local fundraising potential for Las Palmas Park. The YMCA Steering Committee should consist of two City Council members and other local stakeholders. Staff would like the City Council to appoint two members to the YMCA Capital Steering Committee. CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: January 24, 2012 AGENDA ITEM NO. 18 EM TITLE: TEMPORARY USE PERMIT — Circus Event hosted by American Crown Circus at Kimball Park from February 24th thru 27th, 2012 from 6:00 pm to 9:30 pm with request of waiver of fees. PREPARED BY: Vianey Rolon PHONE: (619) 336-4364 EXPLANATION: DEPARTMENT: Neighbo o. d Services Division APPROVED BY: This is a request from the American Crown Circus to conduct a Circus Event at Kimball Park from February 24th thru 27th, 2012 from 6:00pm to 9:30pm daily. The circus is a one ring European style acrobatic show that consists of jugglers, comedic performers, acrobats and magicians. No exotic animals, rides or games of chance. The duration of each show is 1 hr.% per show. The applicant has hired private security for the circus event which will have (2) two guard patrols for the safety of their patrons. FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: The City has incurred $237.00 for processing the TUP, plus $600.00 for the Fire Permits and $1,557.84 for Police Department. Total Fees are $2394.84 ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Approve the Application for a Temporary Use Permit subject to compliance with all conditions of approval. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: )Iication for a Temporary Use Permit with recommended approvals and conditions of approval. Chief Officer of Organization (Name) Frank Osorio Applicant (Name): Frank Osorio Address: 4088 Pleasant Rd., Las Vegas, NV 89108 Type of Event: Public Concert Parade Motion Picture Fair Demonstration Grand Opening Event Title: American Crown Circus estival ircus Other Community Event Block Party Event Location: Kimball Park Event Date(s): From Feb. 24 to Feb. 27 Total Anticipated Attendance: Month/Day/Year ( Actual Event Hours: s:oo pm am/pm to 9:30 pm am/pm Setup/assembly/construction Date: Feb.24 Start time: 7:00 am Please describe the scope of your setup/assembly work (specific details): Show setups tent, seats and circus ring. Participants) Spectators) Dismantle Date: Feb. 27 Completion Time: 11:30 pm am/pm List any street(s) requiring closure as a result of this event. Include street name(s), day and time of closing and day and time of reopening. No Sponsoring Organization: American Crown Circus I I For Profit Not -for -Profit Daytime Phone: (702) 592-7812 Evening Phone: (70� 592-7812 Fax: (702) 655 0005 Contact Person "on site" day of the event: Roberto Osorio Pager/Cellular: 702 241-6927 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) are free with paying adult. ✓ YES NO YES _ NO $16.00-$20.00 Adults and 2-3 children 12-14 K $ 9 K $ N/A 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. Please see attached letter. A--4A( . 10) YES NO If the event involves the sale of cars, will the cars come exclusively from National City car dealers? If NO, list any additional dealers involved in the sale: 2 YES I✓�Yr� NO Does the event involve the sale or use of alcoholic beverages? NO Will items or services be sold at the event? If yes, please describe: Concession that include popcorn, cotton candy, sno-cones & bottle drinks (Pepsi & Aquafina). We obtain County of San Diego Temporary Health Permit. YES __✓�_ 10 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. OYES NO Does the event involve a fixed venue site? If YES, attach a detailed site map showing all streets impacted by the event. RYES NO Does the event involve the use of tents or canopies? If YES: Number of tent/canopies 1 Sizes 95'x125 Tent permit is usally required from the fire dept. NOTE: A separate Fire Department permit is required for tents or canopies. YESnNO 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: People purchase food from stand. If you intend to cook food in the event area please specify the method: GAS Xx ELECTRIC CHARCOAL OTHER (Specify): Portable and/or Permanent Toilet Facilities Number of portable toilets: 3 Unds (1 for every 250 people is required, unless the applicant can show that there are facilities in the immediate area available to the public during the event) ➢ Tables and Chairs Fencing, barriers and/or barricades > Generator locations and/or source of electricity • Canopies or tent locations (include tent/canopy dimensions) • Booths, exhibits, displays or enclosures Scaffolding, bleachers, platforms, stages, grandstands or related structures • Vehicles and/or trailers • Other related event components not covered above ➢ Trash containers and dumpsters (Note: You must properly dispose of waste and garbage throughout the term of your event and immediately upon conclusion of the event the area must be returned to a rhn condition.) Number of trash cans: 6 Trash containers with lids: 1 Dumpster Describe your plan for clean-up and removal of waste and garbage during and after the event: Trash is pick up daily and disposed at dumpster. Dumpster will be rented for event. Please describe your procedures for both Crowd Control and Internal Security: We hire two security guards that will patrol area during event. YES NO Have you hired any Professional Security organization to handle security arrangements for this event? If YES, please list: Security Organization: Legacy Protective Services Security Organization Address: 1185 Park Center Dr.. Vista, CA 92081 Security Director (Name): Lance Sutherland Phone: 760-597-2838 Ext. 11 ut'ES _ 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: Circus provides outside lighting for event Everything is held inside tent that is fully lid. Please indicate what arrangement you have made for providing First Aid Staffing and Equipment. Circus provides first aid station at ticket office and all employees are instructed to call 911 incase of more severe injury. Please describe your Accessibility Plan for access at your event by individuals with disabilities: We have handicap seating, parking and rest room. Event is on the ground so irs accessible. Please provide a detailed description of your PARKING plan: Parking will be the establish parking area and on -street parking where permited_ Please describe your plan for DISABLED PARKING: Park has establish handicap parking. 4 Please describe your plans to notify all residents, businesses and churches impacted by the e''ent: 1ve'll pacs out flyers to neighbors by foot or mail. NOTE: Neighborhood residents must be notified 72 hours in advance when events are scheduled in the City parks. YE `L 0 Are there any musical entertainment features related to your event? If YES, please state the number of stages, number of bands and type of music. Number of Stages: Number of Bands: Type of Music: nYES _ NO Will sound amplification be used? If YES, please indicate: Start time: 6:00 pm am/pm Finish Time 9:30 pm am/pm _ YES NO Will sound checks be conducted prior to the event? If YES, please indicate: Start time: am/'pm Finish Time am/pm Please describe the sound equipment that will be used for your event: Computer,amplifier & 4 speakers. All the music is in the enclosed tent. YE YEZ 0 Fireworks, rockets, or other pyrotechnics? If YES, please describe: NO Any signs, banners, decorations, special lighting? If YES, please describe: Revised 08/10/05 5 went: _'or Office Use Only Department Date Approved? Yes No Initial Specific Conditions of Approval Council Meeting Date: Approved: Yes No Vote: Kathleen Trees, Director Building & Safety Department City of National City PUBLIC PROPERTY USE HOLD HARMLESS AND INDEMNIFICATION AGREEMENT Persons requesting use of City property, facilities or personnel are required to provide a minimum of $1,000,000 combined single limit insurance for bodily injury and property damage which includes the City, its officials, agents and employees named as additional insured and to sign the Hold Harmless Agreement. Certificate of insurance must be attached to this permit. Organization American Crown Circus Person in Charge of Activity Frank Osorio Address 4088 Pleasant Rd., Las Vegas, 89108 Telephone 702 592-7812 Date(s) of Use Feb. 24-2 7 , 2012 HOLD HARMLESS AGREEMENT As a condition of the issuance of a temporary use permit to conduct its activities on public or private property, the undersigned hereby agree(s) to defend, indemnify and hold harmless the City of National City and the Parking Authority and its officers, employees and agents from and against any and ail claims, demands, costs, losses, liability or, for any personal injury, death or property damage, or both, or any litigation and other liability, including attorneys fees and the costs of litigation, arising out of or related to the use of public property or the activity taken under the permit by the permittee or its agents, employees or contractors. S6-b ature o Applicant President Official Title 12-15-t I Date For Office Use Only Certificate of Insurance Approved 7 Date Non-profit organizations, which meet the criteria on page v of the instructions, will be considered for a waiver. If you would like to request a waiver of the processing fees, please complete the questionnaire below. 1. Is the event for which the TUP is sought sponsored by a non-profit organization? Yes (proceed to Question 2) xx 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 American Crown Circus 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) xx 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. xx 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? xx Yes (Please provide an explanation and details. All saes have sales tax that will provided through Sales Tax permit to Board of Equalization. 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. xx 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: xx No (P lease sign the form and submit it with the TUP Application) nature Date 9 Osorio Entertainment Presents December 15, 2011 City of National City 1243 National City Blvd. National City, CA To Whom It May Concern: 100 Years Entertainment Experience The American Crown Circus, INC. is requesting to use part of Kimball Park to hold the circus in your community. Following is the information on the circus. The circus is a one ring European style acrobatic show that consists of jugglers, comedic performers, acrobats and magicians. No exotic animals, rides or games of chance. The duration of the show is 1 hr. % per show. The circus will set-up on the morning of the circus date and leave early morning following the circus date and will clean the location after the last performance, Following is the further information and what we provide: Date(s): Feb. 24-27, 2012 Location: Kimball Park Attendance: 150-200 Hours of Operation: 6:00 to 9:30 pm only Ins. Coverage: $1,000,000.00 General Liability Insurance Porta-Potties: 2 Standard, 1 handicap and a hand washing station. Waste & Recycling: Dumpster rental & recycling bins. We'll rent from local waste company. Security: Legacy Protective Services 2 guards patrol area for the safety of our patrons. One of the main goals of the circus is to fill a void by bring good clean reasonable priced live entertainment that all families can attend and enjoy together to your community. The circus donates free kids tickets to local businesses and schools. Thank you for your time and consideration. If you have any questions, please call me at (702) 493-2894. Sincer-ly, , nk Osorio- President -American Crown Circus, INC. 4088 Pleasant Road • Las Vegas, Nevada 89108 • Tel: (702) 638-8183 i fi A � Oe CERTIFICATE OF LIABILITY INSURANCE (PRO01"RA11ied Specialty Insurance, Inc. 85 N.E. Loop 410, Suite 600 San Antonio, TX 78216 210-314-1321 800-235-8774 IN" `a0 American Crown Circus, Inc. 4088 Pleasant Road Las Vegas, NV 89108 COVERAG DATE (MMlDON111,Y) 05/0612011 THIS CERTIFICATE IS ISSUED AS A MATTER OF NFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE HNC,/ INswERAT,f.E. Insurance Company SL'R918: INSURER C INSURER D INSURER E THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT DR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS. EXCLUSIONS AND CONDMONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS,OR MX% L WjaC ME OF NaLIRANCA POLICY/ UMUR NE �R y (1inEE D(JE RMeILIRAm Y) UMtrI GENERAL X LJASLm CPP0102289-00 01127'12011 01/27/2012 FA "GH OGL1iRRFJKE s1,000,000 A COMMERCIAL GENERAL LIABILITY PR &lr.tRltli PR MyccS IE, _ .FTIMN $ 501000 CLAIMS MADE I I OCCUR MED EXP (Any mg per) S PERSONAL saw INJURY 31,000,000 GENERA. AGGREGATE $ 2,000,000 DEAL AGGREGATE LIMIT APPLIES PER Pc_LOC PRODUCTS- COMP/OP AGG 3 1,000,000 POLICY I I AUTOMOBILE LW ILrrV COMBINED SINGLE LIMIT (EA .fade.) f _,1 ALL OWNED AUTOS SCHEDULED AUTOS BODILYINJURYS (Pr mwseeI --- ^— HIRED AUTOS NON-0NMED AUTOS BODILY INJURY PROPERTY DAMAGE pr f GARAGE UASIIJTY AUTO ONLY- EA ACCIDENT I ANY AUTO OTHER THAN EA ACC t AUTO ONLY: A00 1 EXCESS !UI/RELLA LIABILITY EACH OCCURRENCE i 1 • I I OCCUR : CLAIMS MADE AGGREGATE $ D DEDUCTIBLE s RETENTION $ f WORKERS CONAN/RATION AND I PLDTER.' ',ABUT' i WC STATU- I IOTH- O0FICFILMEA BER EXCLVDEM ANY ECUnVE IY I EL. EACH ACCIDENT S (Ma.dat$Y In Ian aYM. dAetMS Mder EL OMEASE - EA EMPLOYEE, 1 $ $i'ILCWL PRDYISIDNS below El. DISEASE - POLICY LIMIT S OTHER pyETTIBM nSUALpC'Sl t50 UICp[ The Sonoma County Fair & Exposition, the insured for all liability arising out gibe ongoing The Sonoma County Fair & Exposition., the CFRTF ICA TC Wni ncn ENFNT!SPECIAL PROWIONS O:811W[9R51.7 " Sonoma County Harvest Fair and the County of Sonoma, their officers and employees arc named as additional and completed operations by or on behalf of the named insured in the performance of the agreement between Sonoma County Harvest Fair and the County of Sonoma and Licensee. Dates: 5/20/I I through 5/23/11 _ _ _ _ _ _. _ . The Sonoma County Fair 1 Exposition the Sonoma County Harvest Fair and the County of Sonoma P.O. Box 1536 Santa Rosa, CA 96402 ACORD 25 (2009/01) SHOULD ANY OFTIEASOVEOESCRBED POUCIESBE CANCELLED BEFORE THEE$PIpAmN DATE THEREOF, THE ISSGINO INSURER WWII ENDEAVOR TO BAIL 0 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURETO DO SO SHALL DEPOSE NO OBLIGATION OR LIABILITY OF ANY HIND UPON THE INSURER ITS REPRESENTATIyES. Amami) REPRESNINTAsiir� , 019 -2 09 ACORO CORPO TION. All rights Tescrvad. The ACORD name and logo a e Tightwad marks of ACORD t, naia M �9990.90,rtt N.Op..,6C,ov.A7 alFan� Lf i� :rJ Osorio io° Years Entertainment Entertainment Presents '�'°�'`' Experience Ammucm References Circus Circus Hotel*Casino Entertainment Dept. Mr. Ramiro Coronado (775) 328-9638 • City of Riverbank Parks & Recreation Dept., Riverbank, CA. Ms. Sue Fitzpatrick (209) 863-7150 • Marine Corps Community Services/Twenty Nine Palms, CA. Kelly Coe (760) 803-5086 • Washington County Fair Complex/Hillsboro, OR. Lisa Dupre (503) 648-1416 Ext 206 • Summerlin, Las Vegas, NV. Leslie Gesie (702) 360-1327 • Fallbrook Community Center/ Fallbrook, CA. Gordoon Stone (760) 728-1671 • MCAS Miramar Naval Base, Miramar, CA. Dennis Fairbanks (858) 577-1607 Fulton -El Camino Rec. District, Sacramento, CA. Terry DeRosier (916) 927-3802 Ext. 114 • Carbondale Parks & Rec. Dept., Carbondale, CO. Jeff Jackel (970) 704-4114 • Tucson Greyhound Park, Tucson, AZ. Tom Taylor (520) 884-7576 4088 Pleasant Road • Las Vegas, Nevada 89108 • Tel: (702) 638-8183 WASHINGTON COUNTY OREGON Qecember 8, 2010 To Whom It May Concern: The Washington County Fair Complex has had the pleasure of working with the American Crown Circus and Frank Osorio since 2003. Without any hesitation I can tell you they are the best circus we have ever had at our facility. They meet or exceed any request we make of them, are very professional in all aspects, arrive and depart right on schedule, and upon leaving you would never know any large event had been held on the property. After 7 years of having them with us, our staff still continues to marvel at how great this circus is to work with. We look forward to having them back with us in 2011. If you have any questions, please feel free to contact me at 503-648-1416, Ext. 206. Sincerely, Lisa DuPre' Marketing and Events Manager Washington County Fair Complex 873 NE 341' Avenue, Hillsboro, OR 97124 phone: (503) 648-1416 • fax: (503) 648-7208 www.faircomplex.com � r THE SUMMERLIN COUNCIL December 13, 2010 To Whom It May Concern: I am pleased to recommend American Crown Circus and the Osorio Brothers to your company. Over the past 14 years The Summerlin Council has worked with the Osorio Brothers, Frank, Leo and Robert as they have brought to our community their exceptional talents and skills in providing for our community a first-rate circus experience. The Summerlin Council provides many events throughout the year for our residents and without a doubt, American Crown Circus and the Osorio Brothers make our annual circus the easiest and one of the most fun events we have. All we have to do is provide the space arid American Crown Circus takes care of the rest! Frank, Leo and Robert are a pleasure to work with and are very hands-on in providing excellent customer service and making sure that we. as a customer, are pleased with the results. I recommend them with enthusiasm and in fact, we will be working with them again this spring as they provide their services and the American Crown Circus for our 15th consecutive year. Sincerely, Traci Giesea Special Events and Recreation Coordinator The Summerlin Council 1910 SPRING GATE LANE. LAS VEGAS, NEVADA 89134 'fELEPIION12 (702) 341-5500 FAX: (702) 256-1670 Date: 15 December 2010 From: Marine Corps Community Services Director To: Frank Osorio, President, American Crown Circus, Inc. Subj: LETTER OF APPRECIATION 1. On behalf of the Marine Corps Community Services (MCCS) Department at Marine Corps Air Station (MCAS) Miramar, I would like to take this opportunity to thank you for providing our military families with quality entertainment since 4 April 2000. Over the years your organization has worked with MCCS to provide memorable entertainment at reasonable costs, maintained a professional appearance, and provided a fun and festive atmosphere for all who have attended the shows. 2. For over ten years the American Crown Circus has provided over 30 shows and entertained over 7500 Marine and Navy families with some amazing circus acts under the Big Top. From Acrobats and Jugglers to Aerialists and silly clowns, the American Crown Circus has provided many unforgettable memories. MCCS extends our deepest and lasting thanks to you. 3. Action such as yours, are to be commended and greatly appreciated by Marine Corps Community Services at MCAS Miramar. Thank you for a job well done. F.M. MCCOMB 1t;C: Der, rtment 1'l) I3o 452008 « San Diego, CA 921450 008 (S9 ) 577-4118 0 577-4 1.22 • w vw-,mccsmiramar.corn Nuestro Mundo Newspaper 3661 Davenport St. Omaha, NE. 68131 Dec. 10, 10 To Whom It May Concern: As publisher/editor of Nuestro Mundo Newspaper, I have had the pleasure of helping to co- host the Osorio Family Circus here in Omaha for the past six years. My experience with the Osorio family and their artists and employees, has always been top- notch and professional. They provide a superb form of family entertainment that is always a huge draw for families in our community at a very reasonable cost. They also do an excellent job in keeping their area clean and do a great job of making sure that the area they occupy is left in the same condition as when they arrived. Everyone connected with the City of Omaha has been very pleased with the show they bring to this area and the manner by which they conduct themselves. I very much recommend them highly to any town, city or community that has the opportunity to host them in their area. You'll want them back every year after that. Ben Salazar, Publisher, Nuestro Mundo Newspaper Li- CERTIFICATE OF INSURANCE PRODUCER: LI S'1EJ' I' n 1 MANSON AGENCY.. INC. P.O. BOX 9100418 MAI'1`LAND FL 32794-0008 ; T k4E; , - 5-5000 /PAX_ (407) 645-2810 DA FE; ISSUED: 06/28/2010 COMPANY: 100% CERTAIN UNDERWRITERS AT LLOYD'S / LONDON POLICY NUMBER: CLCM09368 NAMED INSURED: AMEzRICAN CROWN CIRCUS. INC. & OSORIO EsNFERFAINMENF, INC. DIM: AMERICAN CROWN CIRCUS C/O LEO OSORIO & FRANK OSORIO 4088 PLEASANT ROAD LAS VEGAS, NV 89109 EFFECTIVE DATE: (1206/2010 (BOTH DAYS AT 12:01 A.NI. EXPIRATION DM li 11/26/2010 .0CAL STANDARD TIME) COVERAGE INFORMATION THIS IS TO CERTIFY THAT TI IE POLICY(S) OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NA\'ILD ABOVE FOR •1TTE POLICY PERIOD INDICATED, NOT Wi FHSTAND1'NG ANY REQUIREMENT, FERMIS) OR CONDITION(S) OE ANY CONTRACT OR OTHERDOCUMENT W III I RESPECT TO WHICH THIS CERTIFICATE(S) MAY I31. ISSUED OR MAY PERTAIN. THE INSURANCE. AFFORDED BY TIRE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL HIE FERMS,;EXCLUSIONS AND/OR CONDITIONS 01 SUCH POLICIES. LIMITS OF LIABILITY SIIOW'N MAY NAVE BEEN REDUCED BY ANY PAID CLAIMS. `TYPE:: ()I' INSURANCE; LIMITS: _ X GENERAL LIABILITY GENERAL AGGREGATE: $ 2,00(4000.0( X CLAIMS MADE LIMITED PRODUCES AGGREGATE: $ 300,000.00 X OWNERS, LANDLORDS & TENANTS PERSONAL & ADV. INJURY: $ -0- 13ACH OCCURRENCE: S 1.(X10,000 00 RETRO DATE: 02/2612010 FIRE DAMAGE (ANY ONE; FIRE): $ -0- A1)DIT'IONAL INSURFD(S):--FLINT '11IE STATE ATE OF CALIFORNIA, THE DISTRICT AGRICULTURAL. ASSOCIATION, C.OLINTY FAIR. THE COUNTY IN WHICI{ THE IE COUNTY FAIR IS LOCATED, CESSORISUBLP;SSOR IF FAIR SITE IS, CITRUS FRUIT FAIR, OR CALIFORNIA EXPOSITION AND STATE FAIR, THEIR DIRECTORS, OFFICERS, AGENTS, SERVANTS , AND EMPLOYEES IS/ARE HEREBY ADDED AS ADDITIONAL INSURED(S) ONLY AS THEIR IN 11 REST(S) MAY APPEAR IN RESPECTS TO 'HIE OPERATION(S) PERFORMED BY THE NAMED INSURED AND/OR Tl IEIR EMPLOYEL(S) ONLY. CER.IIVICA-IE VALID ONLY WITH ATTACHED ADDENDUM "A" FOR DESCRIPTION OF LIABILITY COVERAGE(S) Al 1iV1 NTDATIi(S): SiLY 1.2010 (1 SHOWS) LOCATION: 171? FAIRLANII ROAD, YREKA, CA.. 96097 'THIS CER1IPICA FE, is ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON IT IE CERTIFICATE HOLDER.TITIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE(S) AFFORDED BY FI lE POLICY(S) LISTED. "LIMITS SHOWN ARE THOSE IN EFFECT AS OF POLICY INCEPTION." SI!OULU ANY OF 111E ABOVE DESCRIBED POLICY(S) BE CANCELLED BEFORE `TILE. EXPIRATION DATE THEREOF, T III; ISSUING COMPANY WILL ENDEAVOR TO MAIL 00 DAYS' WRITTEN NOTICE "TO THE: CERTIFICATE 11O1..DER NAMED BELOW, BUT FAILURE TO MAIL SUCH NO UCE SHALL IMPOSE NO OBLIGATION(S) &/OR LlABIl,ITY(SI ()I' ANY KIND UPON THE COMPANY. "IITEIR AGENTS &./Olt REPRESENTATIVES &/OR KALMANSON. ET AL. C I RTIFICATI' I10L))LR.' ADDITIONAL INSURED: I ! IAT "THE STATE OE- CALIFORNIA, T HF• DISTRICT AGR!C(11 TURAL ASSOCIATION, COUNTY FAIR, TI IE COUNTY IN WI LICIT HIE. C:Ot1NI Y FAIR IS LOCATED. 1). LESSOR/SIJBLESSORlFFAIR SITEIS, CITRUS FILLET PAIR, OR CAI.lFORNIA EXPOSE"!'•ION AND STATE FAIR, TI IIIR DIRFCI"ORS, OFFICERS, AGENTS, SERVANTS , AND EMPLOYEES FAX: 702/924.6471 1 5301842-4724 JANLT AUT1iOR1/_ED REPRESENTATIVE: / X MITCHP.1. KALMN / PRESIDENT t Iq CITY OF NATIONAL CITY NEIGHBORHOOD SERVICES DIVISION APPLICATION FOR A TEMPORARY USE PERMIT RECOMMENDATIONS AND CONDITIONS SPONSORING ORGANIZATION: AMERICAN CROWN CIRCUS EVENT: AMERICAN CROWN CIRCUS DATE OF EVENT: February 24-27, 2012 TIME OF EVENT: 6PM TO 9:30PM 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 [ x ] COMMUNITY SERVICES YES [ x ] NO [ ] SEE CONDITIONS [ x ] POLICE YES [ x ] NO [ ] SEE CONDITIONS [ x ] CITY ATTORNEY YES [ x ] NO [ ] SEE CONDITIONS [ x ] CONDITIONS OF APPROVAL: DEVELOPMENT SERVICES (619) 336-4318 ENGINEERING The TUP needs to specify the anticipated attendance so we can determine parking needs. I have concerns parking will be an issue. PLANNING All lighting and amplification equipment shall be oriented away from residential uses BUILDING Building has no comments RISK MANAGER (619) 336-4370 Risk Management has been in contact with the applicant's insurance provider to increase the insurance amount. PUBLIC WORKS (619)366-4580 Public Works has no involvement in this event. However, Miguel Diaz, Parks Superintendent, has some concerns regarding the anchoring of the tent due iD underground utilities and irrigation lines. �(1 FINANCE Applicant must apply for a business license. COMMUNITY SERVICES Community Services has no comments/stipulations. POLICE I have reviewed the Temporary Use Permit (TUP) for the American Crown Circus. The event is scheduled to take place on February 24-27, 2012. Per the TUP, the event will take place in Kimball Park. The event takes place in the evening hours, 1800 to 2130 hours. This is not a fund raising or non-profit event. This is a for profit event with tickets costing $16-$20 for adults with 2-3 children free with a paying adult. This is a European type circus with performing acts, but no live animals. The organizers estimate approximately 150-200 spectators. They list that they will hire private security for the event, Legacy Protective Services. Due to the amount of expected spectators, the potentially unknown problems with the event, the potential of unwelcomed gang members or other criminal individuals and the location of the event on City property (Kimball Park), I believe it is prudent to require two NCPD officers be present during the event for public safety reasons. The event does not block any city streets and should have a minimal impact on traffic flow so the officers should not be needed for traffic control. The Patrol squads will be alerted to extra patrol the area on the day of the event. Based upon my review of the TUP, two (2) NCPD police officers will be required at the event, each night, from 1745 to 2145 hours. The overtime costs for two police officers, each night, is as follows: OT Rate = $58.38 + OT workers comp/medicare benefits 11.18% = $64.91/hour 2 officers at 4.0 hours each for three nights = 24 hours Total cost = $1557.84. -Dan Fabinski, Sergeant Pl C,I iY 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_ FIRE Stipulations required by the Fire Department for this event are as follows: 1) Access to the Circus Vargas to be maintained at all times 2) Fire Department access into and through the circus areas are to be maintained at all times. Fire apparatus access roads shall have an unobstructed width of not less than 20 feet and an unobstructed vertical clearance of not less than 13 feet 6 inches. National City Public works shall paint out the fire lane lust north of the circus tent 3) Exit signs shall be provided at all required exits. Exit signs shall be green in color (National City Municipal Code) and either self illuminating or electrical with a 90 minute back-up power 4) Fire Hydrants shall not be blocked or obstructed 5) Participants on foot are to move immediately to the sidewalk or away from tent upon approach of emergency vehicle(s) 6) Vehicles in roadway are to move immediately to the right upon approach of emergency vehicle(s) 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 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. Fees can only be waived by the City Council Canopies: 0 — 400 sf - $0 401 — 500 sf - $250.00 501 — 600 sf - $300.00 601 — 700 sf - $400.00 Tents: 0 —200 sf - $200.00 201 — (+) sf - $400.00 8) Concession stands utilized for cooking shall have a minimum of 10 feet of clearance on two sides and shall not be located within 10 feet of amusement rides or devices 9) All cooking booths or areas to have one 2A:10BC. If grease or oil is used in cooking a 40:BC or class "K" fire extinguisher will be required. All fire extinguishers to have a current State Fire Marshal Tag attached 10) Fire extinguishers to be mounted in a visible location between 3W10 5' from the floor to the top of the extinguisher. Maximum travel distance from an extinguisher shall not be more than 75 feet travel distance. All fire extinguisher to have a current State Fire Marshal Tag attached 11) Emergency generators and standby power systems shall be installed, tested, and maintained in accordance with NFPA 110 and NFPA 101, Standard for Emergency and Standby Power Systems 12) A fire safety inspection is to be conducted by the Fire Department prior to operations of the carnival to include all rides, cooking areas, game booths, etc. Required inspections taking place, after hours, holidays, and weekends will be assessed a minimum of two hundred ($200.00) dollars. Fee is to be paid to the Fire Department Administration offices under separate permit. Fee is to be paid prior to event 13) No smoking signs to be posted 14) Any electrical power used is to be properly grounded and approved. Extension cords shall be used as `Temporary Wiring" only 15) Fees can only be waived by City Council If you have any questions please feel free to contact me Osorio Entertainment Presents Monday, January 09, 2012 Honorable Mayor & City Council 1243 National City Blvd. National City, CA 91950 Honorable Mayor & City Council; 100 Years Entertainment Experience I'm writing to request the use of Kimball Park & waiver of the fees to hold our event in National City. In return, we plan on donating a flat fee of $1,200.00 or 15% of the gross ticket sales to an organization or program of your choice that might be in need of funds. We plan on bringing family entertainment at reasonable prices that families can attend together besides donating funds to the community. The reason why we're doing this is that we want to be part of the great National City community events that are trying to raise funds for entities that are in need and add vour city to our greater San Diego area tour that also includes Miramar Naval Base. We have been working with them in entertaining military families for over 4 years. We would like to thank Mrs. Vianey Rolon for her outstanding step by step guidance of this matter. She's a great representative of your great city. Ttjpnk you for your time and consideration. ,7 f co Osor'io �J Vice President American Crown Circus, Inc. 4088 Pleasant Road • Las Vegas, Nevada 89108 • Tel: (702) 638-8183 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: January 24, 2012 AGENDA ITEM NO. 19 M TITLE: Notice of Decision — Planning Commission approval of a Conditional Use Permit for the expansion of Chuck E. Cheese's at 1143 Highland Avenue. (Applicant Chuck E. Cheese) (Case File 2011-30 CUP) /V✓L. PREPARED BY: Martin Reeder DEPARTMENT: De t (Svcs/Planning. PHONE: 336-4313 APPROVED BY: EXPLANATION: The applicant is proposing to expand the restaurant into an adjacent suite, adding 3,000 square feet to the restaurant. The application includes expanding alcohol sales into this additional area, which would be part of the gaming floor and entertainment stage area. No change to the existing sales hours is proposed. The restaurant is open from 9 a.m. to 10 p.m. Sunday to Thursday and 9 a.m. to 11 p.m. on Friday and Saturday. Chuck E. Cheese has a non -conforming ABC license that was obtained prior to the City's CUP requirement. The entertainment (games) portion of the restaurant was approved with a CUP in 1981 (CUP-1981-21). The expansion triggers the need for a CUP for alcohol and also for the modification of the existing CUP for games. Planning Commission conducted a public hearing on January 9, 2012. No concerns were noted from area residents. Commissioners asked questions regarding conditions of approval, the building space, and alcohol serving practices. 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 15301 (Existing Facilities) 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 Noes: Alvarado Absent:, DeLaPaz, Reynolds ATTACHMENTS: Location Map 3. Resolution No. 1-2012 Planning Commission Staff Report 4. Reduced Plans • - - - - - - - - - - - - - - -. 920 903 MXC-1 927 CC N 0 943 O 0 w O A N CO 0 0 O A MXC-2 - - - - - .E-Plaza Blvd. CO 1000 1020 MXC-2 1100 1 1 1 1 1 1 1 1 1 - E.-12th St- - 1 t 1205 MXC-1 1 O 1225 1231 I co 00 01 N � w O w NJ CD / cn �' / °�r co 0 01 N O CO 4 O 0 Co `o 24 N N CO 1215 1214 \ 1005 RS-2 N O N Ir' I Subject Parcel Zone Boundary 0 90 180 I Feet 360 APN: u56-590-61 Planning Commission Location Map 2011-21 CUP 1.2.13.11. CITY OF NATIONAL CITY - DEVELOPMENT SERVICES DEPARTMENT 1243 NATIONAL CITY BLVD., NATIONAL CITY, CA 91950 PLANNING COMMISSION STAFF REPORT Title: Case File No.: Location: Assessor's Parcel No.: Staff report by: Applicant: Property owner: Combined General Plan/ Zoning designation: Adjacent land use/zoning: North: East: South: West: Environmental review: Item no. 2 January 9, 2012 PUBLIC HEARING — CONDITIONAL USE PERMIT FOR THE EXPANSION OF AN EXISTING BEER AND WINE -LICENSED RESTAURANT AT CHUCK E. CHEESE'S LOCATED AT 1143 HIGHLAND AVENUE. 2011-30 CUP South side of Plaza Blvd. in South Bay Plaza 556-590-61 Martin Reeder Chuck E. Cheese's Pizza South Bay SPELLC MXD-2 (Major Mixed -Use District) Commercial across Plaza Blvd. / MXD-2 Commercial in South Bay Plaza / MXD-2 Single -Family residential / RS-2 Commercial in South Bay Plaza / MXD-2 Categorically Exempt pursuant to Class 1, Section 15301 (Existing Facilities) 2 BACKGROUND Site Characteristics The project location is Chuck E. Cheese's Pizza restaurant at 1143 Highland Avenue, in the Major Mixed -Use District (MXD-2) zone. The existing restaurant is approximately '. _,000 square feet in size and is located within the South Bay Plaza shopping center. The restaurant offers coin and token -operated games in conjunction with the restaurant. The area is mostly adjacent to other commercial uses including Plaza Village Center to the north across Plaza and to the east in Bay Plaza (Seafood City, etc) across N Avenue. Single-family residential uses are located to the south in the Single -Family Residential (RS-2) zone, atop a large embankment. History The entertainment (games) portion of the restaurant was approved under a Conditional Use Permit (CUP) in 1981 (CUP-1981-21). The facility has a nonconforming ABC (California Alcoholic Beverage Control) license for on -sale beer and wine. Proposed Use The applicant is proposing to expand the restaurant into an adjacent suite, adding 3,000 square feet to the restaurant. The application includes expanding alcohol sales into this additional area, which would be part of the gaming floor and entertainment stage area. No change to the existing sales hours is proposed. The restaurant is open from 9 a.m. to 10 p.m. Sunday to Thursday and 9 a.m. to 11 p.m. on Friday and Saturday. Analysis Section 18.30.050 of the National City Land Use Code allows for on -site alcohol sales with an approved Conditional Use Permit (CUP). As mentioned above, no CUP for alcohol exists for this property. Therefore, the expansion of the restaurant triggers the need for a CUP for alcohol sales in the additional area. In addition, section 18.24.060 (F) of the Code requires a CUP for games of skill or amusement, thus triggering a CUP modification for the expansion area. The Code does not provide specific requirements for the gaming component (e.g., number of machines). Community Meeting Pursuant to Section 18.30.050 (C), a community meeting was held Thursday, November 17, 2011 at 7:00 p.m. at the restaurant. A sign -in sheet, minutes, and meeting advertisement are attached. According to the sign -in sheet, five people were in attendance at the meeting — one resident (and her son) and four restaurant representatives. The applicants made a presentation showing the new floor plan and fielded questions about the number of employees at the restaurant and the opening of the expansion area. 3 Alcohol Sales Concentration/Location f nr Cal?fcrnia State Alcoholic Beverage Control (ABC), there are currently ten (10) other on -sale permits issued in this census tract (117) besides Chuck E. Cheese's. rh; ,nits are: Name Trophy Lounge Royal Mandarin Thomas H. Crosby VFW Golden Chopsticks Karina's Panda Palace Ginza Sushi Lai Thai Cafe La Maze American Legion Post 255 Address 999 National City Blvd. 1132 E. Plaza Blvd. 1401 Highland Ave. 1430 E. Plaza Blvd. 1705 Highland Ave. 1105 E. Plaza Blvd. 925 E. Plaza Blvd. 1430 E. Plaza Blvd. 1441 Highland Ave. 35 E. 18th St. License Type* 48 41 52 41 41 41 41 41 47 52 * Type 41 - On -Sale Beer and Wine for Bona Fide Public Eating Place Type 47 - On -Sale General for Bona Fide Public Eating Place Type 48 - On -Sale General for Public Premises Type 52 - Veterans' Club Of the ten other licenses, seven are restaurants. Two of the remaining licenses are private licenses (VFW and American Foreign Legion) and the last a bar. Census tract 117 includes the area of the City between East 8th and 18th Street, and between National City Blvd. and Palm Avenue. The attached census tract map shows the location of the subject tract. ABC recommends a total of eight on -sale alcohol permits be issued in this census tract, where eleven exist. Chapter 18.030.050 (D), which usually applies with regard to distance requirements from other uses (for the expansion area), requires a 660-foot distance from sensitive uses such as schools. However, restaurants with greater than 30% of their area devoted to seating (as applies in this case) are exempt from these distance requirements. The nearest school in Central Elementary, which is located approximately a half -mile away. Police Department comments Crime statistics provided by the Police Department (PD) 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. Consistent with recent policy, PD provided a Risk Assessment report on the property. The assessment assigns points based on the type of business, license concentration, 4 and calls for service (among others) and ranks the business according to potential risk flow, medium, or high). In this case, Chuck E. Cheese's received 14 points, which would indicate a medium risk. The Risk Assessment is attached. u?stitute for Public Strategies comments sssessment of the proposal was also received from the Institute for Public Strategies (IPS). Issues mentioned were alcohol outlet concentrations in the area, surrounding uses, and RBSS (Responsible Beverage Sales and Service) training, the latter of which is included as a Condition of Approval Conditions of Approval Standard Conditions of Approval have been included with this permit, as well as conditions specific to on -sale alcohol sales (alcohol incidental to food, hours of operation, RBSS training). Fire Department comments have also been included as conditions. In addition, based on information in the original CUP file, conditions have been added prohibiting a bar or live entertainment. Summary Chuck E. Cheese's Pizza has been in business at this location since 1981. No concerns have been noted regarding business operations or associated crime in that timeframe. Although the census tract in which the restaurant is located is over -concentrated with regard to on -sale alcohol licenses, no additional licenses are being added, solely a modification to the existing ABC license. Additionally, this CUP will legitimize an existing non -conforming licensing situation, and will provide current Conditions of Approval consistent with City policy. 5 RECOMMENDATION Approve 2011-30 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. Community Meeting Information (Advertisement, notice and sign -in sheet) 6. Fire and Police Department comments 7. Public Hearing Notice (Sent to 338 property owners and occupants) 8. Notice of Exemption 9. Applicant's Plans (Exhibit A, case file no. 2011-30 CUP, dated 11/17/2011) MARTIN REEDER, AICP Assistant Planner BRAD RAULSTON Executive Director RECOMMENDED FINDINGS FOR APPROVAL 2011-30 CUP, 1143 Highland Avenue T;-iat the site for the proposed use is adequate in size and shape, since the proposed use is an existing accessory use to the restaurant use in an existing commercial area, and the 3,000 square -foot expansion of alcohol sales and gaming area into an existing commercial suite is not expected to increase the demand for parking on the property. 2. That the site has sufficient access to streets and highways that are adequate in width and pavement type to carry the volume and type of traffic generated by the proposed use, since Plaza Blvd. is classified as an arterial street in the Circulation Element, and the expansion into an existing commercial suite is not expected to result in an appreciable increase in traffic. 3. That the proposed use will not have an adverse effect upon adjacent or abutting properties, since the proposed use is compatible with other nearby businesses; and since the proposed use is and will continue to be subject to conditions that limit the sale of alcohol and restrict the hours that it will be available. That the proposed use is deemed essential and desirable to the public convenience and welfare, since it will contribute to the continued viability of a restaurant, an established and allowed use in the applicable mixed -use zone. 5. That public convenience and necessity may be served by a proposed use of the property for the retail sales of alcoholic beverages pursuant to law. RECOMMENDED FINDING FOR DENIAL 2011-30 CUP, 1143 Highland Avenue That public convenience and necessity will not be served by a proposed use of the property for the retail sales of alcoholic beverages pursuant to law. RECOMMENDED CONDITIONS OF APPROVAL 2011-30 CUP, 1143 Highland Avenue General 1. This Conditional Use Permit authorizes the 3,000 square -foot expansion of an existing with accessory games of amusement, and skill and beer and wine sales, located at 1143 East Plaza Boulevard. Unless specifically modified by this resolution or subsequent Codes, all previous Conditions of Approval as stated in Planning Commission Resolution 38-81 are still in effect. Plans submitted for permits associated with this project shall conform with Exhibit A, case file no. 2011-30 CUP, dated 11/17/2011. 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 Department. 3. This permit shall become null and void if not exercised within one year after adoption of the Resolution of approval unless extended according to procedures specified in Section 18.116.190 of the Municipal Code. 4. 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. Fire 7. The project shall be built to code. The National City Fire Department utilizes the 2010 edition of the California Fire Code and the 2010 edition of the Naticnnai Fi Protection Association Codes and Standards. 8. Occupancy for the additional area in which the expansion will be taking place shall be an A-2 occupancy, as determined by the California Fire Code, 2010 edition, Chapter 9, Section 903.2.1.2. 8 9. If a sprinkler and/or alarm system is required, plans for such systems shall be submitted directly to the National City Fire Department. 10. Signage is required for all fire alarm and fire sprinkler coverage. Please consult with the National City Fire Department for City Fire requirements. Fl;lnninnq 11. The sale of alcoholic beverages shall be limited to between the hours of 9:00 a.m. and 11:00 p.mseven days a week. 12. 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. As part of the RBSS training, the permittee shall make available a domestic violence training session as provided by the Institute of Public Strategies. 13. The sale of alcohol shall not exceed the sale of food. With the annual renewal of the City business license, the business proprietor shall submit a statement clearly indicating total alcoholic beverage sales and total food sales. Said statement shall be subject to audit and verification by employees of the City, who are authorized to examine, audit and inspect such books and records of the license, as may be necessary in their judgment to verify that the sale of alcohol does not exceed the sale of food. All information obtained by an investigation of records shall remain confidential. 14. Alcohol shall be available only in conjunction with the purchase of food. 15. 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. 16. No bar is permitted as part of this approval. 17. No live entertainment, karaoke, or dancing is permitted as part of this approval. Police 18. 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. 9 106.02 City of National City CENSUS TRACTS Sweetw\ater.Marsh' '' National Wildh fe Refug \ 0 0.5 1 IMMIIIMMI Miles Sec 303 Sweetwater' County Park f34.12 ra Heniteraon ;Recreation Center::. 1 tMi 11---PAC .--_ f_St-- z I att 1Bnla-:S1 ;; Les Faknasp�s° A Copyright t and (P) 19600 8 2E MicrdsOfl Corporaton,_ ,ar Tar tsupphelst All rights fie sented Portions O.1g90-2Q051nstailShield Software Corar pahry on All rights reseed. Cg7tle;dmapping and tl edmn data©3005Nsvw6.AI rights reserved NAVTEQand NAVFEQONBOARD_are Ira tlernSittSeOfNAVTEQ©2005 Tele At as North A'ner¢ a, Inc All rtghlsresrveri rele,Atlas and Tale-Atllas NOrth'Amdnce are trademarks et T ele Atlaslpe ?i Source: Microsoft Mappoint NCPD CAU, 4/18/07 City of National City Beat 21 11 CHUCKECHIISI'S. COMMUNITY MEETING NOVEMBER 17, 2011 7:00 PM at CHUCK E. CHEESE'S 1143 HIGIILAND AVENUE NATIONAL CITY, CA 91950 Please be advised Chuck E. Cheese's proposes to expand it's operation by approximately 3,000 sf into adjacent space. National City requires a Community Meeting when requesting more than four games of skill and amusement and when the area for beer and wine sales and consumption is expanded in the MXD-2 zoning. The concept will not change. The operation will remain the same — which is a pizza restaurant and family entertainment center serving lunch and dinner. The menu includes pizza, sandwiches, salad bar, appetizers, soft drinks, beer and wine. The expansion is in response to a successful operation at this location for over ? 5 years. "1'he expansion will allow better service to our guests and the community of National City. Alice Winters Office: 972/258-5523 CeII: 214/616-8973 Debbi Shannon Office: 972/258-5457 12 NATIONAL CITY COMMUNITY MEETING NOVEMBER 17, 2011 CHUCKE.CH USF'S PRINTED NAME SIGNATURE ADDRESS 1 ) 1O:5 ►.)cs -lot K) ct- -pan 0 -11vci, l i S^O 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 MINUTES OF COMMUNITY MEETING Pursuant to Land Use Code 18.30.050 C. a Community Meeting was hosted by CEC Entertainment, Inc. dba Chuck E. Cheese's on November 17, 2011 at 7:00 pm at Chuck E. Cheese's, 1143 Highland Avenue, National City, CA 91950. Over 300 copies of the attached notice were mailed on November 1, 2011 to residents, occupants and property owners within 660 feet of the exterior boundaries of the property. One person and her 3 year son attended. See attached sign-up sheet. Those hosting and attending the meeting from CEC were the following: Deborah Shannon, Assistant Secretary Mindy Brown, District Manager Angela Sisson, General Manager and Alice Winters, Consultant. CEC presented a copy of the exterior rendering and briefly discussed the revised floor plan. There was a brief discussion regarding number of employees and date of the opening of the expansion area. The meeting was adjourned at 7:15 pm The meeting requirement is pursuant to an approximate 3000 sf expansion to the existing Chuck E. Cheese's and a zoning change to MXD-2. deL.fz.) zud Alice Winters 14 City of National City Fire Department Phone (619) 336-4550 Planning Department Plan Review Date: Project: Review: December 14, 2011 Chuck F. Cheese R. Hernandez/Fire Marshal Listed plan corrections related to the National City Fire Department. If you have any questions please call (619) 336-4550. Please be advised: A fire Department permit will not be issued unless all corrections are completed and approved. I) Project shall be built to code 2) The National City Fire Department utilizes all current codes and ordinances. A time of submittal, we were using the 2010 edition of' the California Fire Code and the 2010 editions of NFPA 3) As this business will be expanding into additional building, please refer to the California Fire Code 2010 edition chapter 9 section 903.2.1.2 for an A-2 occupancy 4) If a sprinkler and alarm system is required, a direct submittal to the National City Fire Department is required 5) Signage will be required for all fire alarm and fire sprinkler coverage. Please consult with the National City Fire Department for AHJ requirements Note: Approval for final sign -off shall be contingent upon final field inspection and compliance with all applicable codes and ordinances 15 NATIONAL CITY POLICE DEPARTMENT ALCOHOL BEVERAGE CONTROL RISK ASSESSMENT DATE: 12/2/2011 BUSINESS NAME: Chuck E. Cheese ADDRESS: 1143 Highland Avenue, National City, CA 91950 OWNER NAME: CEC Entertainment Corp. DOB: UNK OWNER ADDRESS: 4441 W. Airport Frwy., Irving TX, 75062 (add additional owners on page 2) I. Type of Business VI Restaurant (1 pt) ❑ Market (2 pts) ❑ Bar/Night Club (3 pts) II. Hours of Operation LI Daytime hours (1 pt) O Close by lOpm (2 pts) ❑ Close after l Opm (3 pts) III. Entertainment ❑ Music (1 pt) Live Music (2 pts) ❑ Dancing/Live Music (3 pts) IV. Crime Rate ❑ Low (1 pt) l71 Medium (2 pts) ❑ High (3 pts) V. Alcohol Businesses per Census Tract Fl Below (I pt) ❑ Average (2 pts) Above (3 pts) Notes: Revised: 11/11 1 of 2 16 National City Police Department VI. Calls for Service at Location (for previous 6 months) ❑ Below (1 pt) Il Average (2 pis) Above (3 pts) VII. Proximity Assessment (1/4 mile radius of location) ❑ Mostly commercial businesses (1 pt) O Some businesses, some residential (2 pts) ❑ Mostly residential (3 pts) VIII. Owner(s) records check ❑ No criminal incidents (0 pts) 0 Minor criminal incidents (2 pts) ❑ Multiple/Major criminal incidents (3 pts) ABC Risk .Assessment Low Risk ( 12pts or less) Medium Risk (13 — 1 Spts) High Risk (19 — 24pts) Total Points 14 OWNER NAME: CEC Entertainment Corp. DOB: UNK OWNER ADDRESS: 4441 W. Airport Frwy., Irving TX, 75062 OWNER NAME: South Bay LLC (Property Owner) 1)OB: N/A OWNER ADDRESS: C/O Cal -American Corp; 1109 Westwood Blvd; LA, CA 90024 Reeornmendalion: There are currently eight (10) "On Sale" ABC Licensed establishments. ABC concentration level allows for four (4), based on ABC guidelines the census tract is over concentrated. Please see attached documentation. Completed bv: G. Young, Sergeant 0.4 ra-r,I/ 2 of 2 Badge ID: 365 17 CITY OF NATIONAL CITY - DEVELOPMENT SERVICES DEPARTMENT 1243 NATIONAL CITY BLVD., NATIONAL CITY, CA 91950 NOTICE OF PUBLIC HEARING CONDITIONAL USE PERMIT FOR THE EXPANSION OF AN EXISTING BEER AND WINE -LICENSED RESTAURANT AT CHUCK E. CHEESE LOCATED AT 1143 HIGHLAND AVENUE. CASE FILE NO.: 2011-30 CUP APN: 556-590-61 The National City Planning Commission will hold a public hearing after the hour of 6:00 p.m. Monday, January 9, 2012, in the City Council Chambers, Civic Center, 1243 National City Boulevard, National City, California, on the proposed request. (Applicant: Chuck E. Cheese) The applicant is proposing to expand the restaurant into an adjacent suite, adding 3,000 square feet to the restaurant. The applicant wishes to expand the existing alcohol sales into the additional area. 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., January 9, 2012, who can be contacted at 619-336-4310 or planningnationalcityca.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 MARTIN REEDER Assistant Planner 18 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: 2011-30 CUP Project Location: 1143 Highland Avenue, National City, CA 91950 Contact Person: Martin Reeder Telephone Number: (619) 336-4313 Description of Nature, Purpose and Beneficiaries of Project: Conditional Use Permit application for a 3,000 square -foot internal expansion of an existing alcohol -licensed restaurant in an existing commercial center. Applicant: Chuck E. Cheese's C/o: Alice Winters 4441 W. Airport Frwy. Irving, TX 75062 Exempt Status: M Telephone Number: (972) 258-5523 Categorical Exemption. Class 1 Section 15301 (Existing Facilities) Reasons why project is exempt: The project will result in no changes to the physical environment, since the proposal involves the expansion of an existing restaurant into actively leased commercial space. The restaurant with accessory alcohol sales is an approved use in the respective mixed - use zone. No external construction or additional approvals are involved. Date: MARTIN REED — Assistant Plannei 19 RESOLUTION NO. 1-2012 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF NATIONAL CITY, CALIFORNIA, APPROVING A CONDITIONAL USE PERMIT FOR THE EXPANSION OF AN EXISTING BEER AND WINE -LICENSED RESTAURANT AT CHUCK E. CHEESE'S LOCATED AT 1143 HIGHLAND AVENUE. CASE FILE NO. 2011-30 CUP AP N : 556-590-61 WHEREAS, the Planning Commission of the City of National City considered a Conditional Use Permit for the expansion of an existing beer and wine -licensed restaurant at Chuck E. Cheese's located at 1143 Highland Avenue at duly advertised public hearing held on January 9, 2012, 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. 2011-30 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 January 9, 2012, support the following findings: That the site for the proposed use is adequate in size and shape, since the proposed use is an existing accessory use to the restaurant use in an existing commercial area, and the 3,000 square -foot expansion of alcohol sales and gaming area into an existing commercial suite is not expected to increase the demand for parking on the property. 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 Plaza Blvd. is classified as an arterial street in the Circulation Element, and the expansion into an existing commercial suite 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 proposed use is compatible with other nearby businesses; and 20 since the proposed use is and will continue to be subject to conditions that limit the sale of alcohol and restrict the hours that it will be available. 4. rhat the proposed use is deemed essential and desirable to the public convenience and welfare, since it will contribute to the continued viability of a restaurant, an established and allowed use in the applicable mixed -use zone. -That public convenience and necessity may be served by a 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 3,000 square -foot expansion of an existing restaurant, with accessory games of amusement, and skill and beer and wine sales, located at 1143 East Plaza Boulevard. Unless specifically modified by this resolution or subsequent Codes, all previous Conditions of Approval as stated in Planning Commission Resolution 38-81 are still in effect. Plans submitted for permits associated with this project shall conform with Exhibit A, case file no. 2011-30 CUP, dated 11/17/2011. 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 Department. 3. This permit shall become null and void if not exercised within one year after adoption of the Resolution of approval unless extended according to procedures specified in Section 18.116.190 of the Municipal Code. 4. 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 Deve!^nr-- n+ Services Director that a Notice of Restriction on Real Property is recorded w.ii << County Recorder. The applicant shall pay necessary recording fees to the Ccur:t:Th, 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 recorda.ion. 21 Fire The oioiect shall be built to code. The National City Fire Department utilizes the 2010 edition of the California Fire Code and the 2010 edition of the National Fire Protection Association Codes and Standards. 8. Occupancy for the additional area in which the expansion will be taking place shall be an A-2 occupancy, as determined by the California Fire Code, 2010 edition, aN:cr 9, Section 903.2.1.2. 9. If a sprinkler and/or alarm system is required, plans for such systems shall be submitted directly to the National City Fire Department. 10. Signage is required for all fire alarm and fire sprinkler coverage. Please consult with the National City Fire Department for City Fire requirements. Planning 11. The sale of alcoholic beverages shall be limited to between the hours of 9:00 a.m. and 11:00 p.m. seven days a week. 12. 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. As part of the RBSS training, the permittee shall make available a domestic violence training session as provided by the Institute of Public Strategies. 13. The sale of alcohol shall not exceed the sale of food. With the annual renewal of the City business license, the business proprietor shall submit a statement clearly indicating total alcoholic beverage sales and total food sales. Said statement shall be subject to audit and verification by employees of the City, who are authorized to examine, audit and inspect such books and records of the license, as may be necessary in their judgment to verify that the sale of alcohol does not exceed the sale of food. All information obtained by an investigation of records shall remain confidential. 14. Alcohol shall be available only in conjunction with the purchase of food. 15. 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. 16. No bar is permitted as part of this approval. 17. No live entertainment, karaoke, or dancing is permitted as part of this approval. Police 18. Permittee shall comply with all regulatory provisions of the Business and Professioos 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. 22 BE IT FINALLY RESOLVED that this Resolution shall become effective and final or; the day following the City Council meeting where the Planning Commission asolution is set for review, unless an appeal in writing is filed with the City Clerk prior iu :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. i`='f'ATION: This certifies that the Resolution was adopted by the Planning Commission at their meeting of January 9, 2012, by the following vote: AYES: Farias, Baca, Pruitt, Flores NAYS: Alvarado ABSENT: DeLaPaz, Reynolds ABSTAIN: CHRMAN 23 EXHIBIT A CASE FILE NO. 2011-30 CUP DATE: 11/17/2011 SITE LOCATION MAP • \\ _ A ....\, :'• STORE #: 439 SOUTH BAY PLAZA 1143 HIGHLAND AVE. NATIONAL CITY, CA 91950 SAN DIEGO COUNTY CHECK SET 11/08/11 PROJECT VICINITY MAR CODE SUMMARY 1.02222.22 22,2E2 2.22,02.21.220..GiS2 2.5110.22122.,22 222124,22.22.2, 252 2200220 252E29020 550 Tar../220 (22224..220.2.1.2.1 22.02 Hck L L leeSe\!_ O_LoversFeet.dwg, 1/1S/2011. 41:4S AM, AcroPlo pc.3 PROJECT TEAM rne 10721290 Pf PROJE,C,012,,J12 CITE, ^ K A w ^ x , , CEC SUPPLIER LIST rlr 06222.2-222.2,4220222•22 22.222 02....K2.2222220,9.e2.0220,2 V.GACE CAer, I., 2212222.2.2 2202 5,02.22 4.4.42 241 0.0.122,222.2,22,220. DRAWINN: INDEX wrov ATION C7777:"Z' n112222112 222222,32222422.21 7I ,• • • • INE,HANIO, ,ELECTI,CALi ,LN195,6 .2222. m622002 12.262,522222,2 02.4. 20 20•c [/,` en..i5rtnrracr,t4 TOILLrIflO -1,C1,6,2,41,,CORS 41,ELS,10.141,..i6 Sedi E 2.22,22202.2.2-0242r IL,CuARRTrILE Q02,1.4.020 2202,202 2.20E2 COKNEX CUM(L)5 ,..122.2r22 275001222K ST.C1,,,, 02,24 MMLITE EllA50,00R E1.4.3,1400.,04014111.1 WINVON54,E, LOArnt,IlLMCI 19,611/09WEI • 421.221.22.4022 CA 02222 2,2022, 50211, GRALCE,TRANCE ELTERRIC, 0222402.294,2 2,222,222-2227 AmoccacTRAE. 20.2.15•23n.002 PV.4 1211.22,2..0‘225'2 22212•20..22122.2.22. 212.2.1,2162,221.122 6,20u4.26 w2r22 a2222 2,21.2511.2.2.522. 0,020, TECKANCAC 422122WD 222,2 ..122.2222.4.0612.42 42221.22,.002121, ELECTRICAL 22.0 2Cw212220.2)421224 RRC,JECT SCOPE CS1.0 L= SC LINE EXISTING SIGNTGC TO REMAIN GC TO REMOVE �EI:STING AVI NGS EXISTING PRESTO BE REPAINTED BY GC EXPANSION GC 10 REMOVE EXISTING AWNINGS 1 IIII III111E111111ll1Til LIIIIRIAL110111E11, T\1 EXISTING STOREFRONT A. / \ LSG IC''=^^OV= E%S'1NS STOREER 2 NT arlo t- VJNB OWS-0 REMAIN `- EXISTING AWNING5 E .....__..__ __,.... 01 FRONT ELEVATION ONES SEC LUSE SSW( 1 LIUII=. // EXISTING STOREFRONT ?NO i/ '✓v1NDC WS 10 HEMAIN � 00 0 INSTA L NEW*A@IDOV\ / I ESMATCH EXISTING ,� DEMO WOOD TRELIS. EXISTING J, EYPANSON ST'J 00 TO MATH �EX SING SORE=RONT SEC EASE DAIS I REF AIR WOON SI DIN/7 i I 11/11fillgiftitk IIIII JR11111i1141/ 02 DEMOLITION FRONT ELEVATION SCALE: S/16'0I-0 GENERA NOTES E fO BR'.CMWAINSCOT, t� 11I.1.'WINDOWS, DOORS AND GATE. I EXTERIOR ELEVATION LEGEND • .ixT1Cti.Vur nEr �--�- 1xw1"3.0 „,„cxxa O[RM.!MIPM:AND 6,2 T MIE. TO Mn.xrn 1AKOSNIOS� ▪ MVIT 0,1.m1x40 ew „MP E. l MA.Cnrar CANOE SW D TECI I /i OFFICE N=E P.CF�— F ! :t :ODD 11an;P I POUNDER 0FIOWP.O[ SKILLS NATIONAL CITY, CA #439 J-._4._�, MAJOR LEAGUE BASEBALL CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: January 24, 2012 AGENDA ITEM NO. $0 EM TITLE: City of National City's Single Audit Report on Federal Awards for the Fiscal Year Ended June 30, 2011 PREPARED BY: Tina Norrdin PHONE: 619-336-4331, EXPLANATION: DEPARTMENT: Finance APPROVED BY: Transmitted herewith is the City of National City's Single Audit Report on Federal Awards for the fiscal year ended June 30, 2011 prepared by our external auditors, Mayer Hoffman McCann, P.C. The reports include all agencies under the control of the City Council including the Community Development Commission. The auditors have conducted their examination of the financial statements in accordance with generally accepted auditing standards and expressed a clean opinion of those statements. iiw e Single Audit was completed and posted on the City's website January 2011. Copies may also be ed in the City Clerk's office or the National City Public Library. FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: jN/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: ,Accept and file. BOARD / COMMISSION RECOMMENDATION: N/A! ATTACHMENTS: 'Ogle Audit Report on Federal Awards for the Fiscal Year Ended June 30, 2011. CITY OF NATIONAL CITY NATIONAL CITY, CALIFORNIA Single Audit Report on Expenditures of Federal Awards Year ended June 30, 2011 CITY OF NATIONAL CITY Single Audit Report on Expenditures of Federal Awards Year ended June 30, 2011 TABLE OF CONTENTS Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Governinent Auditing Standards Page 1 Report on Compliance with Requirements That Could 'lave a Direct and Material Effect on each Major Program and on Internal Control over Compliance in Accordance with OMB Circular A-133 3 Schedule of Expenditures of Federal Awards 5 Notes to the Schedule of Expenditures of Federal Awards 6 Supplementary Information: U.S. Department of Housing and Urban Development: Financial Data Schedule (CA116) 7 Schedule of Findings and Questioned Costs 12 Summary Schedule of Prior Audit Findings 16 ayes Hoffman McCann RC. An Independent CPA Firm 2301 Dupont Drive, Suite 200 Irvine, California 92612 949-474-2020 ph 949-263-5520 fx www. m hm-pc.co m Honorable Members of the City Council City of National City, California REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTIIER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS We have audited the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of National City, California (the City), as of and for the year ended June 30, 2011, which collectively comprise the City's basic financial statements and have issued our report thereon dated December 23, 2011. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting Management of the City is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered the City's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. -t� Honorable Mayor and City Council Cite of National City, California Page i wo However, we identified certain deficiencies in internal control over financial reporting, described in the accompanying schedule of findings and questions costs that we consider to be significant deficiencies in internal control over financial reporting. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Findings 2011-01 through 2011-03 conform to this definition. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. We noted certain other matters that we reported to management of the City in a separate letter dated December 23, 2011. The City's written responses to the significant deficiencies identified in our audit have not been subjected to the audit procedures applied in the audit of the financial statements and, accordingly, we express no opiniononthem. This report is intended solely for the information of the City Council, management of the City of National City, federal awarding agencies, and pass -through entities and is not intended to he and should not be used by anyone other than these specified parties. Irvine, California December 23,2011 2 Mayer Hoffman McCann PC. An Independent CPA Firm 2301 Dupont Drive, Suite 200 Irvine, California 92612 949-474-2020 ph 949-263-5520 ix www.mhm-pc.com Honorable Members of the City Council City of National City, California REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM, INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 Independent Auditors' Report Compliance We have audited the compliance of the City of National City (the City), California, with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of the City's major federal programs for the year ended June 30, 2011. The City's major federal programs are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to its major federal program is the responsibility of the City's management. Our responsibility is to express an opinion on the City's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the City's compliance with those requirements. In our opinion, the City of National City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2011. 3 To the City Council City of National City, California Page Two internal Control Over Compliance Management of the City of National City is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the City's internal control over compliance with the requirements that could have a direct and material effect on a major federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control _ over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. Schedule of Expenditures of Federal Awards We have audited the financial statements of the governmental activities, business -type activities, each major fund, and the aggregate remaining fund information of basic financial statements of the City of National City, as of and for the year ended June 30, 2011, and have issued our report thereon dated December 23, 2011. Our audit was performed for the purpose of forming our opinions on the financial statements that collectively comprise the City's basic financial statements. The accompanying schedule of expenditures of federal awards and Financial Data Schedule are presented for purposes of additional analysis as required by OMB Circular A-133 and HUD-REAC and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. This report is intended solely for the information and use of the City Council, City's management, federal awarding agencies, and pass -through entities and is not intended to be and should not be used by anyone other than these specified parties. 'M - , f. /94. Irvine, California December 23, 2011 CITY OF NATIONAL CITY Schedule of Expenditures of Federal Awards Year ended June 30, 2011 Federal Grantor/ Pass -through Grantor/ Program Title laLpartment of Health and Human Services through the County of San Diego: Special Programs for the Aging, Title ID, Part C Pas.,�d through the California Emergency Management Agency: Children Exposed to Domestic Violence Total U.S. Department of Health and Human Services U.S. Department of Housing and Urban Development Direct assistance: Community Development Block Grant - Entitlement Program Community Development Block Grant R - ARRA HOME Investment Partnerships Program Section 8 Housing Choice Vouchers Section 8 Housing Choice Vouchers - Morgan Towers** Total U.S. Department of Housing and Urban Development U.S. Department of Justice Direct Assistance: Edward Byrne Justice Assistance Grant Program Passed through the City of San Diego: Edward Byrne Justice Assistance Grant Program Edward Byrne Justice Assistance Grant Program - ARRA Passed through the City of Chul^ Vista: Border Violence Project - 4• Total U.S. Department of Iusrice U.S. Department of Transportation Direct assistance: Click It or Ticket - State and Community Highway Safety Sobriety Checkpoint Grant-OTS DUI Prosecution & Enforcement Grant DUI Prosecution & Enforcement Grant Street Racing Grant AVOID DUI Grant Subtotal Passed through the California Department of Transportation: Highway Planning and Construction Total U.S. Department of Transportation U.S. Department of Homeland Security Direct assistance: Assistance to Firefighters Grant Program FY09 Assistance to Firefighters Grant Program FYIO Homeland Security Grant Program (equipment and training) FY08 Homeland Security Grant Program (equipment and training) FY09 Urban Area Security Initiative Grant FY08 Operation Stone Garden FYIO Total U.S- Department of Homeland Security U. S. Department of Energy Energy Efficiency and Conservation Block Grant -ARRA Total U.S. Department of Energy U. S. Department of Environmental Protection Agency Direct assistance: - Brownfields Assessment and Cleanup Cooperative Agreements Total Federal Financial Assistance Expenditures Program Identification Number 513857 Federal Federal Domestic Financial Assistance Assistance Number Expenditures 93.045 $ 722,521 EV10 03 8608 93.045 MC-06-0560 14.218 MY-06-0560 14.253 MC-06-0522 14.239 CA116V0 14.871 CA60006011 14.871 2010-DJBX-0434 16.738 2009-DJBX 0247 2009-SB-B9-0784 16.738 16.803 2009-SS-B-0051 16.809 CT10279 SC10279 AL0948 ALI189 PT-0901 AL0939 20.600 20.600 20.600 20.600 20.600 20.600 STPL 5066 (011) 20.205 n/a n/a n/a n/a n/a 97.044 97.044 97.067 97.067 97.008 97.067 DE-SC0002029 81.128 R09.07 a.017 66.818 n/a - Not Available ** - See Note 1(d) in the Notes to the Schedule of Federal Awards for HUD required information. 83,975 806,496 1,666,842 47,614 487,915 9,224,998 716,107 12,143,176 33,336 5,581 181,286 163,071 388,274 6,897 8,647 8,114 7,532 8,100 15,618 54,908 323,151 378,059 6,507 33,093 1,612 8,755 21,320 87,148 158,435 65,344 65,344 15,772 $ 13,955,856 Amount Provided to Subrecipients 235,542 235,542 235,542 The accompanying notes are an integral part of this schedule. 5 (1) CITY OF NATIONAL CITY Notes to the Schedule of Expenditures of Federal Awards Year ended June 30, 2011 Summary of Significant Accounting Policies Applicable to the Schedule of Expenditures of Federal Awards (a) Scope of Presentation The accompanying schedule presents only the expenditures incurred (and related awards received) by the City of National City, California (the City) which are reimbursable under federal programs of federal financial assistance. For purposes of this schedule, federal awards include both federal financial assistance received directly from a federal agency, as well as federal funds received indirectly by the City from non-federal organizations. Only the portion of program expenditures reimbursable with such federal funds are reported in the accompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized and the portion of program expenditures that were funded with state, local or other non-federal funds are excluded from the accompanying schedule. (b) Basis of Accounting The expenditures included in the accompanying schedule were reported on the modified accrual basis of accounting. Under the modified accrual basis of accounting, expenditures are recognized when the City becomes obligated for payment as a result of the receipt of the related goods and services. Expenditures reported include any property or equipment acquisitions incurred under the Federal program. (c) Subrecipients During the fiscal year ended June subrecipients to be used for federally grant agreements. (d) Supplementary Information Required Towers 30, 2011, the City disbursed $235,542 to allowable expenditures in accordance with the by HUD — Financial Data Schedule- Morgan The financial data schedule supplementary information required by the U.S. Department of Housing and Urban Development (HUD) for the Morgan Towers Section 8 I -lousing Choice Voucher program is reported in a separate report entitled "Morgan Towers Financial Statements and Single Audit Report for the year ended June 30, 2011", dated September 20, 2011. These financial statements may be obtained from the Community Development Commission of the City of National City located at 1243 National City Boulevard, National City, CA 91950. 6 CITY OF NATIONAL CITY Schedule of Findings and Questioned Costs Year ended June 30, 2011 (A) Summary of Auditors' Results 1. An unqualified report was issued by the auditors on the financial statements of the auditee. The audit disclosed 3 significant deficiencies, of which none were considered to be material weaknesses for the period under audit. 3. The audit disclosed no instances of noncompliance that were material to the financial statements of the auditee. 4. There were no material weaknesses in internal control over the major programs of the auditee. 5. An unqualified report was issued by the auditors on compliance for major programs. 6. The results of our auditing procedures disclosed no findings required to be reported under paragraph .510(a) of OMB Circular A-133. 7. The major programs of the auditee were as follows: • U.S. Department of Housing and Urban Development - Section 8 Housing Choice Vouchers Program - CFDA #14.871 • U.S. Department of Health and Human Services (Cluster) - Special Programs for the Aging, Title III, Part C - CFDA # 93.045, • U.S. Department of Justice - Edward Byrne Justice Assistance Grant Program- CFDA # 16.738 and Edward Byrne Justice Assistance Grant Program- ARRA - CFDA # 16.803 8. The dollar threshold used to distinguish Type A and Type B programs was $418,676. 9. The auditee did not qualify as a low risk auditee, as defined by OMB Circular A-133, paragraph .530, for the year ended June 30, 2011 for the purpose of determining major programs. 12 CITY OF NATIONAL CITY Schedule of Findings and Questioned Costs (Continued) (B) Findings Related to the Financial Statements which are Required to be Reported in Accordance with GAGAS (2011-01) Reporting of Notes Receivable During the audit, Finance Department and Community Development Commission (CDC) staff evaluated redevelopment and housing loans issued by the CDC. As a result of staff's evaluations, it was determined that many loans issued were unlikely to result in cash collection by the CDC due to the structure of the loan agreements. As a result, staff determined that the values of loans issued were in many cases less than the actual amount of money likely to be repaid to the CDC and where appropriate, allowance for doubtful accounts were established in order for the value of the loans reported to equal the amount of cash estimated to be collected in future years. This analysis resulted in an adjustment to beginning fund balance and net assets as the structure of these loans had not changed from previous years. Recommendation We recommend that Community Development Commission and City Finance Department staff develop policies and procedures for communicating, documenting, and recording of significant loan transactions to insure that activities of the Commission are properly reflected in the accounting records. These policies and procedures should also include enhanced monitoring controls over the loans issued to ensure repayment is appropriately recorded, that the monies are being used in accordance with the agreements terms and conditions, and that loans are periodically evaluated for collectability. Managements Corrective Action Planned or Taken We concur with the recommendation and Finance staff will develop policies and procedures on recording Notes Receivables. 13 CITY OF NATIONAL CITY Schedule of Findings and Questioned Costs (Continued) (B) Findings Related to the Financial Statements which are Required to be Reported in Accordance with GAGAS, (Continued) (2011-02) Adjustments Detected During the Audit Process The Auditing Standards requires that the auditor include in the report of significant deficiencies any material adjustments detected by the audit process. For the year in June 30, 2011, material adjustments detected by the audit process were as follows. • Adjustment made to notes receivable balances. • Adjustments to record refunding notes, payments on capital leases, and the recording of capital assets associated with capital lease. • Adjustments to record interest receivable as of June 30, 2011 in certain restricted funds and to properly reflect those funds income and pooled cash balances at year end. Recommendation Auditing Standards specify that material adjustments identified through the audit process are an indication of weaknesses in an entity's internal control structure. Efforts should be made to enhance the City's year end closing procedures to include areas that resulted in audit adjustments in 2011. Management's Responses Regarding Corrective Action Taken or Planned We concur with the recommendation. The finance staff will update the year end closing procedures to ensure that all material adjustments are detected and recorded. 14 CITY OF NATIONAL CITY Schedule of Findings and Questioned Costs (Continued) (B) Findings Related to the Financial Statements which are Required to be Reported in Accordance with GAGAS. (Continued) (2011-03) Consolidation of Funds in the Accounting System Currently, the City has over one hundred funds in their accounting system. Although. some funds are required to be reported separately, the majority of the City funds may be combined into the same fund if they are similar in nature (i.e. certain grants). Different revenue and expenditure accounts may be used to segregate those funds that are combined into one in order to continue to account for them separately. Recommendation We recommend that the City evaluate each fund of the City and determine if there is an appropriate need to have a separate fund for the identified activities. Funds that are determined to not meet those criteria should be closed and reported with the General Fund. Management's Responses Regarding Corrective Action Taken or Planned We concur with the recommendation. Finance staff have begun review of the funds in the accounting system and will recommend consolidation of funds to the City Manager. (C) Findings and questioned costs for Federal Awards as defined in Paragraph .510(a) of OMB Circular A-133 There were no findings or questioned costs for Federal Awards as defined in Paragraph .510(a) of OMB Circular A-133. 15 CITY OF NATIONAL CITY Summary Schedule of Prior Audit Findings Year ended June 30, 2011 The following is the status of prior audit findings for the year ended June 30, 2010: (2010-01) Reporting of Notes Receivable Matter was not resolved and therefore was repeated as a current year finding. See accompanying Schedule of Findings and Questioned Costs as item 2011-01. (2010-02) Internal Service Fund Charges Resolved (2010-03) lnterfund Transactions Resolved (2010-04) Adjustments Detected During the Audit Process Matter was not resolved and therefore was repeated as a current year finding. See accompanying Schedule of Findings and Questioned Costs as item 2011-02. (2010-05) Consolidation of Funds in the Accounting System Matter was not resolved and therefore was repeated as a current year finding. See accompanying Schedule of Findings and Questioned Costs as itcrn 2011-03. 16 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: January 24, 2012 AGENDA ITEM NO. 21 M TITLE: City of National City Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2011 PREPARED BY: Tina Norrdin DEPARTMENT: Finance PHONE: 619-336-4331 APPROVED BY: EXPLANATION: Transmitted herewith is the City of National City's Comprehensive Annual Financial Report for the fiscal year ended June 30, 2011 prepared by our external auditors, Mayer Hoffman McCann, P.C. The reports include all agencies under the control of the City Council including the Community Development Commission. The auditors have conducted their examination of the financial statements in accordance with generally accepted auditing standards and expressed a clean opinion of those statements. The Comprehensive Financial Report was completed and posted on the City's website January 2011. )ies may also be viewed in the City Clerk's office or the National City Public Library. FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: NIJ ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Accept and file. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: nprehensive Annual Financial Report as of June 30, 2011. CITY OF NATIONAL CITY Basic Financial Statements and Supplementary Data For the Year Ended June 30, 2011 CITY OF NATIONAL CITY National City, California Basic Financial Statements and Supplementary Data For the Year Ended June 30, 2011 1243 National City Blvd. National City, California 91950 Phone: (619) 336-4241 Fax: (619) 336-4239 www.nationalcityca.gov Prepared by the Finance Department Tina Norrdin Finance Director CITY OF NATIONAL CITY Basic Financial Statements and Supplementary Data For the Year Ended June 30, 2011 TABLE OF CONTENTS Page FINANCIAL SECTION Independent Auditors' Report 1 Basic Financial Statements: Government -Wide Financial Statements: Statement of Net Assets 5 Statement of Activities 6 Fund Financial Statements: Governmental Fund Financial Statements: Balance Sheet 8 Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide Statement of Net Assets 11 Statement of Revenues, Expenditures and Changes in Fund Balances 12 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government -Wide Statement of Activities 14 Proprietary Fund Financial Statements: Statement of Net Assets 15 Statement of Revenues, Expenses and Changes in Net Assets 16 Statement of Cash Flows 17 Fiduciary Fund Financial Statements: Statement of Fiduciary Net Assets 18 Statement of Changes in Fiduciary Net Assets 19 Notes to the Basic Financial Statements 21 CITY OF NATIONAL CITY Basic Financial Statements and Supplementary Data For the Year Ended June 30, 2011 TABLE OF CONTENTS, (CONTINUED) FINANCIAL SECTION, (CONTINUED) Required Supplementary Information_ Notes to Required Supplementary Information Budgetary Information Budgetary Comparison Schedule - Budgetary Comparison Schedule Special Revenue Fund Budgetary Comparison Schedule Budgetary Comparison Schedule - Budgetary Comparison Schedule - Budgetary Comparison Schedule Program Fund General Fund — Section 8 Housing Assistance — Other Special Revenue Fund Nutrition Program Special Revenue Fund Sewer Service Special Revenue Fund — Low and Moderate Income Housing Supplementary Information: Non -Major Governmental Funds: Combining Balance Sheet Combined Statement of Revenues, Expenditures and Changes in Fund Balances Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual Internal Service Funds: Combining Statement of Net Assets Combining Statement of Revenues, Expenses and Changes in Net Assets Combining Statement of Cash Flows Page 66 67 68 69 70 71 72 76 80 83-101 104 106 108 Fiduciary Funds: Combining Statement of Changes in Assets and Liabilities - Agency Funds 111 Mayer Hoffman McCann P.C. An Independent CPA Firm 2301 Dupont Drive, Suite 200 Irvine, California 92612 949-474-2020 ph 949-263-5520 fx www.mhm-pc.com To the Honorable Mayor and Members of the City Council of the City of National City, California INDEPENDENT AUDITORS' REPORT We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of National City, California (City), as of and for the year ended June 30, 2011, which collectively comprise the City's basic financial statements, as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2011, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. As described further in note 1 to the financial statements, the accompanying financial statements reflect certain changes in the reporting of fund types and fund balance classifications for governmental funds due to the implementation of GASB Statement No. 54. The City has not presented management's discussion and analysis that the Government Accounting Standards Board has determined is necessary to supplement, although not required to be part of, the basic financial statements. 1 To the Honorable Mayor and Members of the City Council of the City of National City, California Pace Two The information identified in the accompanying table of contents as required supplementary information is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The combining and individual nonmajor fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. In accordance with Government Auditing Standards, we have also issued a report dated December 21, 2011 on our consideration of the City's internaLcontrol over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Irvine, California December 21, 2011 Pt. 2 Basic Financial Statements 3 (This page intentionally left blank) 4 CITY OF NATIONAL CITY Statement of Net Assets June 30, 2011 Govemmental Business -Type Activities Activities Total Assets C' rest assc's: C,sh and investments (note 2) $ 72,075,878 15,591 72,091.469 Accounts receivable 1,085,040 - 1,085,040 Property tax receivable 194,122 - 194,122 Interest receivable 105,133 105,133 Due from other governmental entities 4,622,851 - 4,622,851 Total current assets 78,083,024 15,591 78,098,615 Noncurrent assets: Restricted assets: Restricted cash and investments with fiscal agents (note 2) 42,031,002 1,738,710 43.769,712 Inventories 11,128 - 11,128 Prepaid items and deposits 43,101 132,638 175,739 Land held for resale 9,392,509 9,392,509 Contracts. notes and loans receivable (note 4) 9,391,187 - 9,391,187 Deferred charges 1,495,528 - 1,495,528 Subtotal 62,364,455 1,871,348 64,235,803 Capital assets (note 5): Non -depreciable 26,422,305 528,382 26,950,687 Depreciable, net 90,340,545 6,687,958 97,028,503 Total capital assets .116,762,850 7,216,340 123,979,190 Total noncurrent assets 179,127,305 9,087,688 188,214,993 Total assets 257,210,329 9,103,279 266,313,608 Liabilities Current liabilities: Accounts payable and accrued liabilities 3,726,631 165,396 3,892,027 Interest payable 1,792,703 - 1,792,703 Salaries payable 1,147,597 - 1,147,597 Deposits payable 347,630 89,922 437,552 Total current liabilities 7,014,561 255,318 7,269,879 Long-term liabilities (note 7): Due within one year 8,279,798 218,492 8,498,290 Due beyond one year 91,501,497 2,058,393 93,559,890 Total noncurrent liabilities 99,781,295 2,276,885 102,058,180 Total liabilities 106,795,856 2,532,203 109,328,059 Net .Assets Invested in capital assets, net of related debt Restricted for: Community development Public safety Transportation Culture and leisure Housing Unrestricted 93,567,130 33,109,741 3,035,845 1,604,977 4,101,046 1,472,075 Total restricted 43,323,684 4,939,455 98,506,585 1,631,621 33,109,741 3,035,845 1,604,977 4,101,046 3,103,696 1,631,621 44,955,305 13,523,659 13,523,659 Total net assets $ 150,414,473 6,571,076 156,985,549 See accompanying notes to the basic financial statements. 5 CITY OF NATIONAL CITY Statement of Activities For the Year Ended June 30, 2011 Program Revenues Operating Capital Total Charges for Grants and Grants and Program Expenses Services Contributions Contributions Revenue Primary Government: Governmental activities: General government $ 6,813,807 2,924,037 59,096 - 2,983,133 Public safety 32,287,471 2,564,953 1,675,155 - 4,240,108 Transportation 3,642,820 - 611,542 - 611,542 Community development 19,204,057 945,733 13,713,332 - 14,659,065 Health 6,846,972 7,418,448 528,300 7,946,748 Culture and leisure 5,734,894 216,746 175,633 - 392,379 Interest and fiscal charges 4,091,247 Total governmental activities 78,621,268 14,069,917 16,763,058 - 30,832,975 Business -type activities: Community development commission 2,313,011 2,208,044 - - 2,208,044 Total business -type activities 2,313,011 2,208,044 - - 2,208,044 Total primary government $80,934,279 16,277,961 16,763,058 - 33,041,019 General revenue and transfers: Taxes: Property taxes, net Sales taxes Franchise taxes Motor vehicle in -lieu, unrestricted Transient occupancy taxes Total taxes Investment earnings Other miscellaneous revenues Rent Total general revenues Change in net assets Net assets at beginning of year, as restated (note 12) Net assets - end of year See accompanying notes to the basic financial statements. 6 Net (Expense) Revenue and Changes in Net Assets Liovenunen;al Business -Type Activities Activities (3,830,674) (28,047,363) (3,031,278) (4,544,992) 1,099,776 (5,342,515) (4,091,247) (47,788.293) Total (3,830,674) (28,047,363) (3,031,278) (4,544,992) 1,099,776 (5,342,515) (4,091,247) (47,788,293) (104,967) (104,967) (104,967) (104,967) (47,788,293) (104,967) (47.893,260) 14,184,279 21,731,925 1,949,759 5,219,884 838,255 43,924,102 374,153 365,734 868,535 3,404 14,184,279 21,731,925 1,949.759 5,219.884 838,255 43,924,102 377,557 365,734 868,535 45,532,524 3,404 45,535,928 (2,255,769) (101,563) (2,357,332) 152,670,242 6,672,639 159,342,881 $ 150,414,473 6,571,076 156,985,549 7 CITY OF NATIONAL CITY Balance Sheet Governmental Funds June 30, 2011 Special Revenue Funds Section 8 Other General Housing Special Nutrition Fund Assistance Revenue Program ASSETS Cash and investments $ 11,287,422 1,531,378 8,833,738 220,466 Restricted cash and investments with fiscal agents - Accounts receivable 729,435 8,639 93,547 65,042 Property tax receivable - - Interest receivable 58,917 - 3,373 - Due from other funds (note 3) 701,701 - - Due from other governmental entities 3,368,938 - 223,092 - Land held for resale - - Contracts, notes and loans receivable (note 4) - - Advances to other funds (note 3) 509,605 Total assets $ 16,146,413 1,540,017 9,663,355 285,508 IJABB1TIFS AND FUND RAI.ANCF.S Liabilities: Accounts payable and accrued liabilities $ 1,167,720 46,509 303,909 11,251 Salaries payable 766,047 21,433 125,085 53,148 Due to other funds (note 3) - Duc to other governmental entities - - Deposits payable 128,398 131,732 - Deferred revenue 13,794 - 35,769 - Advances from other funds (note 3) 509,605 - Total liabilities 2,585,564 67,942 596,495 64,399 Fund balances (deficit): Spendable: Restricted for: Debt service - - - - Community development 246,228 Public safety - - 657,448 - Transportation - - 1,701,142 General services - - 6,462,042 221,109 Public housing - 1,472,075 Low and moderate income housing - Total restricted - 1,472,075 9,066,860 221,109 Committed for: Debt service 1,435,557 - - - Public safety 45,875 - - - Transportation 160,982 - General services 28,843 - - Conununity development - - - Total committed 1,671,257 - Assigned for: Accrued employment benefits 2,679,900 - Post -employment benefits 1,707,000 - - Transportation 442,900 - - - Total assigned 4,829,800 - - - Unassigned (Note 14) 7,059,792 Total fund balances 13,560,849 1,472,075 9,066,860 221,109 Total liabilities and fund balances $ 16,146,413 1,540,017 9,663,355 285,508 See accompanying notes to the basic financial statements. 8 Debt Capital Special Revenue Funds. Service Project Low and Community Funds Other Total Se), ci Moderate Income Development Redevelopment Governmental Governmental Service Housing Program Commission Fund Funds Funds 15,131,737 8,783 25,733 1,500,000 9,586,932 30,565 37,191 10,043 360,000 7,767,650 16.666,253 17,792, 381 28,316 2,695,979 6,878,357 148,764 713,160 8,386,359 58,387,171 34,006,196 1,100,685 41,985,238 76,396 402 1,012,809 8,167 - 194,122 1,343 5,724 105,133 701,701 2,796 1,028,025 4,622,851 9,032,509 - 9,392,509 824,151 799,386 9,391,187 2,009,605 9.723,100 44,664,71E 62,992 1.062333 19,170 3,670 192,257 52,497 11,320,581 127,802.326 390,143 53,604 701,701 3,265,430 1,094,654 701,701 87,500 - 347,630 1,621,072 101,480 1,772,115 739,966 760,034 2,009,605 47,486 1,687,734 1,062,333 1,072,220 2,006,962 9,191,135 16,618,767 16,104,647 16,618,767 16,104,647 16,618,767 16,104,647 16,666,253 8,660,767 43,592,498 8,660,767 43,592,498 8,660,767 43,592,498 17,792,381 9,723,100 9 44,664,718 778,533 9,439,300 5,095,729 48,934,455 444,821 1,102,269 827,001 2,528,143 702,991 24,004,909 1,472,075 16,104,647 7,849,075 103,585,798 138.808 1,863,788 1,435,557 45,875 160,982 167,651 1,863,788 2,002,596 3,673,853 2,679,900 1,707,000 442,900 4,829,800 (538,052) 6,521,740 9,313,619 118, 611,191 11,320,581 127,802,326 (This page intentionally left blank) 10 CITY OF NATIONAL CITY Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide Statement of Net Assets June 30, 2011 Fund balances of governmental funds Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the governmental funds balance sheet. Excluding the internal service funds capital assets which are reported below, capital assets were adjusted as follows: - Capital assets - Accumulated depreciation Interest payable on Tong -term debt did not require current financial resources. Therefore, interest payable was not reported as a liability in the governmental funds balance sheet. Certain revenues were not available to pay for current -period expenditures and, therefore, were deferred in funds. Internal service funds were used by management to charge the costs of certain activities, such as insurance, to individual funds. The assets and liabilities of the internal service funds were included in governmental activities in the government -wide statement of net assets. Long-term liabilities were not due and payable in the current period. Therefore, they were not reported in the governmental funds balance sheet. This amount excludes long-term liabilities reported in Internal Service funds. Net assets of governmental activities • See accompanying notes to the basic financial statements. 11 $ 118,611,191 190.544,175 (76,6(14,922) (1,792,703) 1,772,115 8,187,141 (90,280,998) $ 150,435,999 CITY OF NATIONAL CITY Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2011 Special Revenue Funds Section 8 Other General Housing Special Nutrition Fund Assistance Revenue Program Revenues: Taxes $ 31,750,265 Licenses and permits 767,876 Fines and forfeitures 1,434,437 Interest and rents 381,692 Litergovernniental 684,993 Charges for services 1,011,635 Other revenues 740,928 Total revenues Expenditures: Current: General government Public safety Transportation Community development Health Culture and leisure Capital outlay Debt service: Principal Interest and fiscal charges Cost of issuance Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Payment to bond escrow agent Issuance of long-term debt Original discount on issuance Transfers in (note 3) Transfers out (note 3) 9,618,037 36,771,826 9,618,037 3,893,535 25,671,368 1,212.963 1,736,096 286,219 227,360 57,831 9,224,997 33,085,372 9,224,997 4,450 74,841 27,550 2,011,022 834,464 533,243 323,005 170,448 3,485,570 493,453 2,322,495 1,906,715 40,424 235,150 722,521 121,912 1,077,084 968,455 6,672,235 722,521 3,686,454 393,040 (3,186,665) (229,068) 1,760,491 - 2,877,588 366,260 (3,712,121) (105,000) Total other financing sources (uses) (1,951,630) - 2,772,588 366,260 Net change in fund balances 1,734.824 393,040 (414,077) 137,192 Fund balances, beginning of year, as restated (note 12) 11,826,025 1,079,035 9,480,937 83,917 Fund balances, end of year $ 13,560,849 1,472,075 9,066,860 221,109 See accompanying notes to the basic financial statements. 12 Debt Capital Special Revenue Funds Service Project Low and Community Funds Other Total Sewer Moderate Ltcome Development Redevelopment Governmental Governmental Service Housing Program Commission Fund Funds Funds 90,528 7,258,981 9,893 2,767,741 11,070,963 244,321 8,836 32,974 7,359,402 3,045,036 93,969 6,720,324 6,814,293 545,109 545,109 1,392,969 64,753 126,764 92,037 56,896 4,805,019 56,890 34,233 644,737 11.079,799 217,893 384,247 2,613,680 46,981,938 772,326 1,574,031 971,728 17,498,972 9,161,970 2,166,456 7,056,405 79.127,421 285,279 6,595,278 53,624 27,631,707 691,970 1,945,357 2,978,693 1,593,134 17,752,422 6,842,236 2,314,024 5,127,204 1,927,618 3,286,550 6,468,842 2,525,000 575,000 3,327,360 1,706,646 11,250 680,913 2,456,640 439,442 439,442 384,247 6,845,326 5,357,003 9,480,494 78,586,488 2,660,789 4,234,473 (5,139,110) (2,424,089) (861,864) 5,062,931 (5,408,287) (861,864) (345,356) 1,798,925 3,889,117 540,933 (3.115,000) (3,115,000) 39,660,000 3,115,000 42,775,000 (1,056,085) (1,056,085) 5,408,287 1,394,751 16,870,308 (5,012,225) (1,096,607) (16,196,104) 38,999,977 298,144 39,278,119 33,860,867 (2,125,945) 39,819,052 16,073,658 14,305,722 4,771,650 9,731,631 11,439,564 78,792,139 16,618,767 16,104,647 8,660,767 43,592,498 9,313,619 118,611,191 13 CITY OF NATIONAL CITY Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Governmental -Wide Statement of Activities For the Year Ended June 30, 201 I Changes in fund balances of governmental funds Amounts reported for governmental activities in the statement of activities are different because: $ 39,819,052 Governmental funds report capital outlay as expenditures. However, in the government -wide statement of activities, the cost of those assets are allocated over their estimated useful lives as depreciation expense. This is the amount by which depreciation expense exceeded capital outlays in the current year, net of disposals. (5,078,239) The issuance of long -tern debt provides current financial resources to the funds but has no effect on on the Government -Wide Statement of Net Assets. (42,775,000) Repayment of bond principal and capitalized lease obligations are expenditures in governmental funds, but the repayments reduces long-term liabilities in the government -wide statement of net assets. 6,442,360 Bond issuance costs are amortized in the Statement of Activities, but are not reflected in the governmental funds. 1,495,527 Interest expense on long-term debt was reported in the government -wide statement of activities but they did not require the use of current financial resources. Therefore, interest expense was not reported as expenditures in governmental funds. The following amount represents the change in accrued interest. (1,547,727) To record as an expense the net change in compensated absences in the statement of activities. 170,357 To record as an expense the net change in other post employment benefits liability in the statement of activities. (29,909) Revenues in the government -wide statement of activities that did not provide current financial resources were not reported as revenues in the governmental funds. 182,079 Internal service funds were used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The net revenue (expense) of the internal service funds are reported with governmental activities. (912,743) Change in net assets of governmental activities $ (2,234,243) See accompanying notes to the basic financial statements. 14 CITY OF NATIONAL CITY Statement of Net Assets Proprietary Funds June 30, 2011 Governmental Enterprise Funds Activities - Kimball Morgan Internal Towers Towers Total Scrvicc Funds ASSETS Current assets: Cash and investments (note 2) $ 6,760 8,831 15,591 13,688,707 Restricted cash and investments with fiscal agents (note 2) 1,131,053 607,657 1,738,710 45,764 Accounts receivable 72,231 Inventories - 11,128 Prepaid items and deposits 51,689 80.949 132,638 43,101 Total current assets 1,189,502 697,437 1,886,939 13,860,931 Noncurrent assets: Capital assets (note 5): Nondepreciable assets 315,814 212,568 528,382 1,644,621 Depreciable assets, net of accumulated depreciation 4,378,567 2,309,391 6,687,958 1,178,976 Total capital assets, net 4,694,381 2,521,959 7,216,340 2,823,597 Total noncurrent assets 4,694,381 2,521,959 7,216.340 2,823,597 Total assets 5,883,883 3,219,396 9,103,279 16,684,528 LIABILITIES Current liabilities: Accounts payable and accrued liabilities 75,316 90,080 165,396 461,201 Salaries payable - - 52,943 Capital leases payable - due within one year - - 88,203 Compensated absences - due within one year - - - 135,464 Note payable - due within one year - 218,492 218,492 Self-insurance claims payable - due within one year 1,578,371 Total current liabilities 75,316 308,572 383,888 2,316,182 Noncurrent liabilities (note 7): Tenant security deposit liability 44,879 45,043 89,922 Capital leases payable - due in more than one year - - 1,645,576 Note payable - due in more than one year - 2,058,393 2,058,393 Self-insurance claims payable - due in more than one year - 4,535,629 Total noncurrent liabilities 44,879 2,103,436 2,148,315 6,181,205 Total liabilities 120,195 2,412,008 2,532,203 8,497,387 NET ASSETS Invested in capital assets, net of related debt 4,694,381 245,074 4,939,455 2,823,597 Restricted for: Housing 1,069,307 562,314 1,631,621 - Unrestricted - - 5,363,544 Total net assets $ 5.763,688 807,388 6,571,076 8,187,141 See accompanying notes to the basic financial statements. 15 CITY OF NATIONAL CITY Statement of Revenues, Expenses and Changes in Net Assets Proprietary Funds For the Year Ended June 30, 2011 Operating revenues: Rental income Service charges Other revenues Total operating revenues Enterprise Funds Kimball Morgan Towers Towers $ 982,146 Total Governmental Activities - Internal Service Funds 1,211,218 2,193,364 8,997,696 7,358 7,322 14,680 115,008 989,504 1,218,540 2,208,044 9,112,704 Operating expenses: Personnel services - - 1,978,193 Maintenance and operations 904,613 827,695 1,732,308 7,007,307 Depreciation 187,350 226,219 413,569 279,082 Total operating expenses 1,091,963 1,053,914 Operating income (loss) 2,145,877 9,264,582 (102,459) 164,626 62,167 (151,878) Nonoperating revenues (expenses): Interest income 2,596 808 3,404 220 Interest expense - (167,134) (167,134) (86,880) Total nonoperating revenues (expenses) Income (loss) before transfers 2,596 (166,326) (163,730) (86,660) (99,863) (1,700) (101,563) (238,538) Transfers in (note 3) - - - 4,211 Transfers out (note 3) - - (678,415) Change in net assets (99,863) (1,700) (101,563) (912,742) Net assets at beginning of year 5,863,551 809,088 6,672,639 9,099,883 Net assets, end of year $ 5,763,688 807,388 6,571,076 8,187,141 See accompanying notes to the basic financial statements. 16 CITY OF NATIONAL CITY Statement of Cash Flows Proprietary Funds For the Year Ended June 30, 2011 Governmental Enterprise Funds Activities - Kimball Morgan internal 'Powers Towers Total Service Funds Cash flows from operating activities: Cash received from customers/other funds $ 983,538 1,220,218 2,203,756 8,999,747 Cash payments to suppliers (927,354) (725,263) (1,652,617) (6,737,079) Cash payments for general and administrative (48,681) (197,557) (246,238) (2,020,201) Cash received from (payments to) other 7,358 7,322 14,680 115,008 Net cash provided (used by) operating activities 14,861 304,720 319,581 357,475 Cash flows from noncapital financing activities: Cash received from other funds - 4,211 Cash paid to other funds - (678,415) Net cash provided (used by) noncapital financing activities - - - (674,204) Cash flows from capital and related financing activities: Acquisition of capital assets (1,245,445) Payment on lease payable - (21,381) Principal payments of note payable - (204,777) (204,777) interest paid - (166,434) (166,434) (86,880) Net cash provided (used by) capital and related financing activities - (371,211) (371,211) (1,353,706) Cash flows from investing activities: Interest income 2,596 808 3,404 220 Net cash provided (used by) investing activities 2,596 808 3,404 220 Net increase (decrease) in cash and cash equivalents 17,457 (65,683) (48,226) (1,670,215) Cash and equivalents, beginning of year 1,120,356 682,171 1,802,527 15,404,686 Cash and equivalents, end of year $1,137,813 616,488 1,754,301 13,734,471 Reconciliation of operating income to net cash provided by operating activities: Operating income (loss) $ (102,459) 164,626 62,167 (151,878) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation 187,350 226,219 413,569 279,082 Chanees in current assets and liabilities: Accounts receivable 490 700 1,190 2,051 Inventories - - 3,521 Prepaid items and deposits 25,290 (669) 24,621 (43,101) Accounts payable and accrued liabilities (95,810) (86,156) (181,966) 79,810 Salaries payable - - 1,087 Compensated absences - - - (43,097) Self-insurance claims payable - - 230,000 Total adjustments 117,320 140,094 257,414 509,353 Net cash provided (used) by operating activities $ 14,861 304,720 319,581 357,475 See accompanying notes to the basic financial statements. 17 ASSETS Cash and investments (note 2) Interest receivable CITY OF NATIONAL CITY Statement of Fiduciary Net Assets Fiduciary Funds June 30, 2011 Library Private- Total Purpose Agency Fiduciary Trust Funds Funds $ 49,668 83 Total assets 49,751 LIABILITIES 963,676 1,013,344 83 963,676 1,013,427 Accounts payable S - 22,942 22,942 Deposits payable 940,734 940,734 Total liabilities NET ASSETS Held in trust for private purposes 963,676 963,676 $ 49,751 - 49,751 See accompanying notes to the basic financial statements. 18 CITY OF NATIONAL CITY Statement of Changes in Fiduciary Net Assets Fiduciary Funds Year Ended June 30, 2011 Additions: Investment income Total additions Net increase (decrease) Net assets, beginning of year Net assets, end of year Library Private - Purpose Trust $ 282 282 282 49,469 $ 49,751 See accompanying notes to the basic financial statements. 19 Notes to the Basic Financial Statements 20 CITY OF NATIONAL CITY Notes to the Basic Financial Statements For the Year Ended June 30, 2011 (1) Summary of Significant Accounting Policies The basic financial statements of the City of National City, California (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below. A. Reporting Entity The City was incorporated September 17, 1887 under the general laws of the State of California. The City operates under a Council -Manager form of government and provides basic local governmental services including public safety (police and fire), maintenance and construction of public improvements, cultural, recreation, planning, zoning, transportation, health services and general administration. In addition, the City operates the Community Development Commission (including Morgan Towers and Kimball Towers Enterprise Funds). The financial reporting entity consists of (a) the primary government, the City, (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the primary government is not accountable, but for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. As required by GAAP, these basic financial statements present the City and its component units, entities for which the City is considered to be financially accountable. Blended component units, although legally separate entities are, in substance, part of the City's operations and data from these units are combined with data of the City. Each blended component unit has a June 30 year-end. The City had no discretely presented component units. The following entities are reported as blended component units: Community Development Commission of the City of National City - The Community Development Commission of the City of National City (the "CDC") was established in April 1967 pursuant to provisions of the California Health and Safety Code. The CDC was created to undertake and carry out the redevelopment of certain areas within the City which the CDC has determined to be blighted areas by encouraging development of residential, commercial, industrial, recreational and public facilities and to assist neighborhood redevelopment through residential property improvement loans and housing assistance payments to low and moderate income earners. The City Council is the Governing Board of the CDC. Separate CDC financial statements may be obtained from the City's Finance Department located at 1243 National City Boulevard, National City, California 91950. 21 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) National City Joint Powers Financing Authority - The National City Joint Powers Financing Authority (the "NCJPFA") was created pursuant to a joint exercise of powers agreement entered into by and between the City and the CDC on April 16, 1991. The purpose of such agreement was to provide for the financing and construction of a new police facility and a new community center. The NCJPFA is administered by a commission consisting of the members of the City Council and all voting power of the NCJPFA resides in the commission. The NCJPFA exclusively benefits the City. There are no separate financial statements available. Parking Authority of the City of National City - In July 1977, the Parking Authority of the City of National City (the "Authority") was activated pursuant to the Parking Law of 1949 for the financing and construction of the Plaza Bonita Parking Facility. The City Council is the governing board of the Authority. The Authority exclusively benefits the City. The capital assets of the Authority have been included in the Government - Wide Financial Statements. There are no separate financial statements available. B. Basis of Accounting and Measurement Focus The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Government -Wide Financial Statements The City's Government -Wide Financial Statements include a Statement of Net Assets and a Statement of Activities and Changes in Net Assets. These statements present summaries of governmental and business -type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in the Government -wide statements. 22 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) These basic financial statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Assets. The Statement of Activities presents changes in net assets. Under the accrual basis of accounting, revenues arc recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Certain types of transactions are reported as program revenues for the City in three categories: • Charges for services • Operating grants and contributions • Capital grants and contributions Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund activities, payables and receivables. All internal balances in the Statement of Net Assets have been eliminated except those representing balances between the governmental activities and the business -type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities and Changes in Net Assets, internal service fund transactions have been eliminated; however, those transactions between governmental and business -type activities have not been eliminated. The following interfund activities have been eliminated: • Due to/from other funds • Loans receivable/related deferred revenue • Advances to/from other funds • Transfers in/out The City applies all applicable GASB pronouncements (including all NCGA Statements and Interpretations currently in effect) as well as the following pronouncements issued on or before November 30, 1989, to the business type activities, unless those pronouncements conflict with or contradict GASB pronouncements: Financial Accounting Standards Board (FASB) Statements and Interpretations, Accounting Principles Board (APB) Opinions, and Accounting Research Bulletins (ARB) of the committee on Accounting Procedure. The City applies all applicable FASB Statements and Interpretations issued after November 30, 1989, except those that conflict with or contradict GASB pronouncements. 23 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) Fund Financial Statements Governmental Funds Financial Statements Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non -major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net assets as presented in these statements to the net assets presented in the Government -Wide Financial Statements. The City has presented all major funds that met the applicable criteria. All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. .Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Revenues are recorded when received in cash, except for that revenues subject to accrual (generally 60 days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, sales tax, intergovernmental revenues and other taxes. Expenditures are recorded in the accounting period in which the related fund liability is inemTed. Deferred revenues arise when potential revenues do not meet both the "measurable" and "available" criteria for recognition in the current period. Deferred revenues also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met or when the government has a legal claim to the resources, the deferred revenue is removed and revenue is recognized. The Reconciliation of the Fund Financial Statements to the Government -Wide Financial Statements is provided to explain the differences created by the integrated approach of GASB Statement No. 34. 24 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) A separate column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the Government -Wide Financial Statements. Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Assets. The Statement of Revenues, Expenses and Changes in Fund Net Assets presents increases (revenues) and decreases (expenses) in total net assets. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts. In accordance with GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Government Entities that Use Proprietary Fund Accounting, the City applies all GASB pronouncements currently in effect as well as Financial Accounting Standard Board Statements and Interpretations, Accounting Principles Board Opinions and Accounting Research Bulletins of the Committee on Accounting Procedure issued on or before November 30, 1989. Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as nonoperating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as nonoperating expenses. The City reported the following types of major proprietary funds: Kimball Towers This fund is used to account for activities relating to the operations of Kimball Tower, which is used to provide housing to low and moderate income seniors. Morgan Towers This fund is used to account for activities relating to the operations of Morgan Tower, which is used to provide housing to low and moderate income seniors. 26 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies. (Continued) The City reported the following types of major governmental funds: General Fund This fund is used to account for resources, which are not required legally or by sound financial management to be accounted for in another fund. Section 8 Housing Assistance Special Revenue Fund This fund is used to account for the activities of Section 8 Housing Assistance Program. The program provides rental assistance to low income families by subsidizing a portion of the rent directly to landlords on behalf of low income households. Other Special Revenue Fund This represents a combination of minor and less active funds that the City has combined for reporting purposes. Nutrition Program Special Revenue Fund This fund is used for operations of the Nutrition grant. Sewer Service Special Revenue Fund This fund is used to account for the collection of sewer connection fees and monthly sewer service charges used for the construction and maintenance of City sewers. Low and Moderate Income Housing Fund This fund is used to account for the Community Development Commission 20% Set Aside. Community Development Commission Debt Service Fund This fund is used to account for debt service of the Community Development Commission. Redevelopment Capital Project Fund This fund is used to account for the administrative expenditures of the Community Development Commission and redevelopment capital projects. Proprietary Fund Financial Statements Proprietary fund financial statements include a Statement of Net Assets, a Statement of Revenues, Expenses and Changes in Fund Net Assets, and a Statement of Cash Flows for each major proprietary fund. 25 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) The City also reports the following fund types: Internal Service Funds These funds are used to account for interdepartmental operations where it is the stated intent that costs of providing services to the departments of the City on a continuing basis be financed or recovered primarily by charges to the user departments. Fiduciary Fund Financial Statements Fiduciary fund financial statements include a Statement of Net Assets and a Statement of Changes in Fiduciary Net Assets. The City's fiduciary funds represent private -purpose trust fund and agency funds. The private -purpose trust fund is used to account for resources legally held in trust for special purposes. The Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. The Agency funds are accounted for using an accrual basis of accounting. C. Use of Restricted/Unrestricted Net Assets When an expense is incurred for purposes for which both restricted and unrestricted net assets are available, the City's policy is to apply restricted net assets first. Cash, Cash. Equivalents and Investments The City pools its available cash for investment purposes. The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short- term investments with original maturity of three months or less from the date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments. In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available. 27 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) The City participates in an investment pool managed by the State of California, entitled Local Agency Investment Fund (LAIF), which has invested a portion of the pool funds in Structured Notes and Asset -Backed Securities. LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset -Backed Securities are subject to market risk as to change in interest rates. E. Restricted Cash and Investments Certain restricted cash and investments are held by fiscal agents for the redemption of bonded debt and for acquisition and construction of capital projects. F. Interfund Transactions Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and business -type activities are reported in the Governmental -Wide Financial Statements as "internal balances." Advances between funds, reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. G. Inventories and Prepaid Items Inventories are stated at cost using the average cost method. Payments made to vendors for services that will benefit periods beyond June 30, 2008 are recorded as prepaid items. The City uses the consumption method when reporting prepaid items. Prepaid items are recorded as an asset and are offset by a reserve in the fund financial statements. H. Land Held for Resale Land held for resale is recorded at the lower of cost or, upon entering into a contract for sale, the estimated net realizable value. Fund balances are reserved in amounts equal to the carrying value of land and buildings held for resale, because such assets are not available to finance the City's current operations. 28 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) 1. Capital Assets The City's assets are capitalized at historical cost or estimated historical cost. City policy has set the capitalization threshold for reporting general capital assets at $5,000 (including infrastructure assets). Gifts or contributions of capital assets are recorded at fair market value when received. Depreciation is recorded on a straight-line basis over the useful lives of the assets as follows: Buildings and Improvements 10 -50 years Machinery and Equipment 2 -20 years Infrastructure 25 -75 years In June 1999, the GASB issued Statement No. 34 which requires the inclusion of infrastructure capital assets in local governments' basic financial statements. In accordance with Statement No. 34, the City has included the value of all infrastructures in the Basic Financial Statements. The City defines infrastructure as the basic physical assets that allow the City to function. The assets include the streets, water purification and distribution system, sewer collection and treatment system, parks and recreation, lands and improvement system, storm water conveyance system, and buildings combined with the site amenities such as parking and landscaped areas used by the City in the conduct of its business. Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, traffic control devices (signs, signals and pavement markings), landscaping and land. These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems. Interest accrued during capital assets construction, if any, is capitalized for the husiness-type and proprietary funds as part of the asset cost. For all infrastructure systems, the City elected to use the Basic Approach as defined by GASB Statement No. 34 for infrastructure reporting. The City commissioned an appraisal of City owned infrastructure and property as of June 30, 2003. This appraisal determined the estimated historical cost, which is defined as the actual cost to acquire new property in accordance with market prices at the time of first construction/acquisition. Estimated historical costs were developed in one of three ways: (1) historical records; (2) standard unit costs appropriate for the construction/acquisition date; or (3) present cost indexed by a reciprocal factor of the price increase from the construction/acquisition date to the current date. The accumulated depreciation, defined as the total depreciation from the date of construction/acquisition to the current date on a straight line, 29 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies. (Continued) unrecovered cost method was computed using industry accepted life expectancies for each infrastructure system. The book value was then computed by deducting the accumulated depreciation from the estimated historical cost. J. Interest Payable In the government -wide financial statements, interest payable on long-term debt is recognized as the liability is incurred for governmental fund types and proprietary fund types. In the fund financial statements, proprietary fund types recognize the interest payable when the liability is incurred. K. Compensated Absences In the governmental fund financial statements, compensated absences are recorded as expenditures in the year paid, as it is the City's policy to liquidate any unpaid vacation or sick leave at year-end from future resources rather than currently available and expendable resources. Accordingly, the entire unpaid liability for employee compensated absences related to governmental fund types is recorded in the government -wide financial statements and is typically liquidated by the General Fund. For proprietary funds, the estimated value of the total accrued vacation and vested sick leave is recorded as current liability in the fund financial statements and government -wide financial statements and is typically liquidated by the respective enterprise and internal service funds. L. Long -Term Debt In the government -wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financial sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. 30 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) M. Fund Balances —Nonspendable and Spendable The accompanying financial statements reflect certain changes that have been made with respect to the reporting of the components of fund balances for governmental funds. In previous years, fund balances for governmental funds were reported in accordance with previous standards that included components for reserved fund balance, unreserved fund balance, designated fund balance, and undesignated fund balance. Due to the implementation of GASB No. 54, the components of the fund balances of governmental funds now reflect the component classifications described below. Prior year amounts have been restated to reflect the component designations required by GASB No. 54. Fund balances are reported in the fund statements in the following classifications: Nonspendable Fund Balance Nonspendable Fund Balance — this includes amounts that cannot he spent because they are either not spendable in form (such as inventory) or legally or contractually required to be maintained intact (such as endowments). Spendable Fund Balance Restricted Fund Balance — this includes amounts that can he spent only for specific purposes stipulated by constitution, external resource providers, or through enabling legislation. If the Council action limiting the use of funds is included in the same action (legislation) that created (enables) the funding source, then it is restricted. Committed Fund Balance — this includes amounts that can be used only for the specific purposes determined by a formal action of the Council. It includes legislation (Council action) that can only be overturned by new legislation requiring the same type of voting consensus that created the original action. Therefore, if the Council action limiting the use of the funds is separate from the action (legislation) that created (enables) the funding source, then it is committed, not restricted. The City considers a resolution, an ordinance, or a minutes action to constitute a formal action of City Council for the purposes of establishing committed fund balance. 31 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) Assigned Fund Balance — this includes amounts that are designated or expressed by the Council, but does not require a formal action like a resolution or ordinance. The Council may delegate the ability of an employee or committee to assign uses of specific funds, for specific purposes. Such delegation of authority has been granted to the City Manager. Unassigned Fund Balance — this includes the remaining spendable amounts which are not included in one of the other classifications. It is the city's policy that restricted resources will be applied first, followed by (in order of application) committed, assigned, and unassigned resources, in the absence of a formal policy adopted by the Council. N. Net Assets In the government -wide financial statements, net assets are classified in the following categories: Invested in Capital Assets, Net of Related Debt - This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that attributed to the acquisition, construction, or improvement of the assets. Restricted Net Assets - This amount is restricted by external creditors, grantors, contributors, laws or regulations of other governments. Unrestricted Net Assets - This amount is all net assets that do not meet the definition of "invested in capital assets, net of related debt" or "restricted net assets." O. Property Taxes The City has elected, by ordinance, that the duties of assessing and collecting property taxes be performed by the San Diego County Assessor and Tax Collector, respectively. Tax levies cover the period from July 1 to June 30 of each year. All tax liens attach annually on the first day in March preceding the fiscal year for which the taxes are levied. Taxes are levied on both real and personal property as it exists on that date. Secured property taxes are levied against real property and are due and payable in two equal installments. The first installment is due on November 1 and becomes delinquent if not paid by December 10. The second installment is due on February 1 and becomes delinquent if not paid by April 10. Unsecured personal property taxes are due on July 1 each year: These taxes become delinquent if not paid by August 31. The City records property tax revenues in the fiscal year to which they relate rather than at the related lien date. 32 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) One of the CDC's primary sources of revenue is from property tax increments. The assessed valuation of all property within the Downtown Redevelopment Project area was determined on the date of adoption of the Redevelopment Plan. Property tax related to the incremental increase in assessed values after the adoption of the Redevelopment Plan are allocated to the CDC; all taxes on the "frozen" assessed valuation of the property are allocated to the City and unrelated taxing agencies. P. Community Development Commission Rental Revenue Rental revenues received from tenants in the CDC's Morgan Towers Housing Project (an enterprise fund) are subsidized with Federal government funds under a Section 8 contract with the U.S. Department of Housing and Urban Development (HUD). The rent subsidy received from •HUD is equal to the excess of the fair market rent of the apartment units over the amounts paid by the tenants. The amounts paid by the tenants are subject to certain Section 8 eligibility requirements and application procedures. Q. Use of Estimates The preparation of the basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions. (2) Cash and Investments Cash and investments as of June 30, 2011 are classified in the accompanying financial statements as follows: Statement of Net Assets: Cash and investments Restricted cash and investments with fiscal agents Statement of Fiduciary Net Assets: Cash and investments $ 72,091,469 43,769,712 1,013,344 Total cash and investments $ 116,874,525 Cash and investments as of June 30, 2011 consist of the following: Cash on hand $ 3,287 Deposits with financial institutions 6,270,256 Investments 110,600,982 'Total cash and investments $ 116,874,525 33 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (2) Cash and Investments, (Continued) Investments Authorized by the California Government Code and the City's Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code and the City's investment policy. The table also identifies certain provisions of the California Government Code (or the City's investment policy, if more restrictive) that address interest rate risk and concentration of credit risk. This table does not address investments of debt proceeds held by fiscal agent that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy. Authorized Investment Types By Investment Authorized by State Law Policy Local Agency Bonds U.S. Treasury Obligations U.S. Agency Securities Bankers Acceptances Commercial Paper Negotiable Certificates of Deposit Repurchase Agreements Reverse Repurchase Agreements Medium -Term Notes Mutual Funds Money Market Mutual Funds Mortgage Pass -Through Securities County Pooled Investment Funds Local Agency Investment Fund (LAIF) JPA Pools (other investment pools) Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes Maximum Maturity 5 years 5 years 5 years 180 days 180 days 2 years 1 year 92 days 5 years N/A N/A 5 years N/A N/A N/A *Maximum *Maximum Percentage Investment Of Portfolio in One Issuer None None None 5% 15% 30% None 20% of base 30% 15% 20% 20% None None None None None None 5% 10% None None value None None 10% 10% None None None None * Based on state law requirements or investment policy requirements, whichever is more restrictive. 34 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (2) Cash and Investments, (Continued) Investments Authorized by Debt Agreements Investment of debt proceeds held by fiscal agent are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies the investment types that are generally authorized for investments held by fiscal agent. The table also identifies certain provisions of these debt agreements that address interest rate risk and concentration of credit risk. Authorized Investment Type Maximum Maximum Maximum Percentage Investment Maturity Allowed in One Issuer U.S. Treasury Obligations None None None U.S. Agency Securities None None None Banker's Acceptances 360 days None None Commercial Paper 270 days None None Money Market Mutual Funds N/A None None Investment Contracts 30 years None None Certificates of Deposit None None None Repurchase Agreements None None None Mortgage Pass -Through Securities None None None State Bonds or Notes None None None Municipal Bonds or Notes None None None Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. 35 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (2) Cash and Investments. (Continued) Information about the sensitivity of the fair values of the City's investments (including investments held by fiscal agent) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity: Remaining Maturity (in Months) Investment Tvpe U.S. Agency Securities Certificates of Deposit-CDARS Local Agency Investment Fund Commercial Paper Held by Fiscal Agent: Treasury Coupon Securities Money Market Fund Local Agency Investment Fund Commercial Paper Money Market Mutual Funds Total $ 13,212,247 2,000,000 51,108,733 510,320 1,094,028 5,967,159 305,907 2,344,000 34,058,588 12 Months 13 to 24 25 to 60 or Less Months Months 1,057,172 12,155,075 2,000,000 51,108,733 510,320 282,719 290,939 520,370 5,967,159 305,907 2,344,000 34,058,588 Total $110,600,982 96,577,426 1,348.111 12.675.445 Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating as of year end for each investment type. Investment Type U.S Agency Securities Certificates of Deposit-CDARS Local Agency Investment Fund Commercial Paper Held by Fiscal Agent Treasury Coupon Securities Money Market Fund Local Agency Investment Fund Commercial Paper Money Market Mutual Funds Total Minimum Legal Total Rating $ 13,212,247 AAA 2.000,000 N/A 51,108,733 N/A 510,320 A 510,320 1,094,028 AAA 5,967,159 N/A 305,907 N/A 2,344,000 N/A 34,058,588 A $110.600.982 Rating as of Year End AA+ AAA Not Rated - 13,212,247 - 2,000,000 - 51,108,733 1,094,028 5,967,159 305,907 - 2,344,000 34,058,588 510.320 48.364,863 61.725.799 36 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (2) Cash and Investments, (Continued) Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker -dealer) to a transaction, a government will not he able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. For investments identified herein as held by fiscal agent, the fiscal agent generally selects the investment under the terms of the applicable trust agreement, acquires the investment, and holds the investment on behalf of the reporting government. Investment in State Investment Pool The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. LAIF is not rated. 37 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (2) Cash and Investments, (Continued) Restricted Cash and Investments of Community Development Commission Enterprise Fund The activities of Morgan Towers and Kimball Towers activities are recorded in and presented as Community Development Commission Enterprise Fund. In accordance with HUD requirement, the CDC maintains the following: Morgan Towers: Replacement reserve $ 363,634 Residual receipts reserve 227,690 MIP and insurance impounds reserve 16,333 Total Morgan Towers 607,657 Kimball Towers: Residual receipts reserve 305,907 Other 825,146 Total Kimball Towers 1,131,053 Total restricted cash and investments S1,738 710 Morgan Towers • Reserve for replacements of $363,634 represents a monthly deposit of $3,127, less current use for replacement; plus income earned thereon. The balance of this reserve will be used for the future replacement of property with HUD's approval. • Residual receipts reserve of $227,690 is an accumulation of surplus cash as calculated by HUD's Computation of Surplus Cash, Distributions and Residual Receipts, which can be expended only with IHUD's approval. • Reserve for MIP and insurance impounds of $9,656 and $6,677, respectively, totaling $16,333, which represents amounts held for the future payment of property and mortgage insurance. Kimball Towers • Residual receipts reserve of $305,907 is an accumulation of surplus cash as calculated by HUD's Computation of Surplus Cash, Distributions and Residual Receipts, which can be expended only with HUD's approval. • Other restricted cash and investments totaling $825,146 are included in the accompanying basic financial statements. 38 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (3) lnterfund Transactions Due To/From Other Funds Current interfund receivable and payable balances at June 30, 2011 are as follows: Due From Other Funds Due To Other Funds Amount General Fund Nonmajor Other Governmental Funds $701,701 $701,701 Interfund balances are primarily related to short-term borrowings to cover deficit cash balances at June 30, 2011. 39 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (3) lnterfund Transactions, (Continued) Interfund Transfers For the year ended June 30, 2011 interfund transfers were as follows: Transfers In Transfers Out Other Governmental Funds Other Special Revenue Fund Nutrition Program Fund Internal Service Funds Total General Fund General Fund Community Development Debt Service Fund Community Development Capital Projects Fund Community Development Debt Service Fund Other Special Revenue Fund General Fund General Fund General Fund General Fund Other Special Revenue Funds Community Development Low and Moderate Housing Fund Community Development Debt Service Fund Community Development Capital Projects Fund Community Development Capital Projects Fund Total Community Development Capital Projects Fund General Fund Other Governmental Funds Other Governmental Funds Other Governmental Funds Total Other Governmental Funds General Fund Internal Service Funds Amount $ 1,275,220 (a) 2,066,430 (b) 366,260 (c) 4,211 3,712,121 105,000 (d) 861,864 (e) 5,408,287 (f) 4,201,068 (g) 811,157 (h) 5,012,225 977,076 (i) 119,531 (j) 1,096,607 678,415 Total $16,874,519 Significant interfund transfers were primarily to: (a) to subsidize National City Library and parks maintenance operations; (b) to provide funding for the Voluntary Separation Program, retention incentive pay for Executive and Management personnel and employee leave sellbacks; (c) to subsidize nutrition program for seniors and to reimburse for the cost of materials to repair public restrooms; (d) to provide funding for various General Fund programs and services; (e) to fund a portion of the 1999 and 2005 (Series A) Tax Allocation Bonds debt service payments that related to low and moderate development; (I) to subsidize redevelopment operations and capital projects; (g) to establish the 2011 TAB Reserve subaccount; (h) to provide funding for the General Plan update and retention incentive pay for Executive and Management personnel; (i) to reimburse General Fund for street related expenditures and various literacy and community services programs; (j) to subsidize various General Fund programs and services. 40 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (3) Interfund Transactions, (Continued) Interfund Advances Long-term interfund receivables and payables as of June 30, 2011 arc as follows: Receivable Fund Payable Fund Amount Sewer Service Fund Other Special Revenue Fund $ 760,034 (a) Community Development Capital Project Fund 739,966 (b) Total Sewer Service Fund 1,500,000 Other Special Revenue Fund General Fund 509,605 (c) $2,009 605 (a) To borrow funding for the fiscal year 2010-11 street resurfacing improvements program: the loan establishes a 5 year re -payment agreement with the Tax Increment fund for the first three years at an interest rate of 0.75% per annum. (b) To borrow funding for the fiscal year 2010-11 street resurfacing improvements program: the loan establishes a 5 year re -payment agreement with the TransNet (Prop A) fund for the last two years at an interest rate of 0.75% per annum. (c) To borrow funding for the purchasing of a new fire truck: the loan established a 10 year re -payment agreement with the NCFD at an interest equal to 3.69% per annum. (4) Contracts, Notes and Loans Receivable As of June 30, 2011, the Contracts, Notes and Loans Receivable consisted of the following: Outstanding at June 30, 2011 Copper- Hills Apartments, LP $7,863,787 Plaza Manor 512,473 Single -Family Housing Rehabilitation Loan Program 190,776 Young Trust 129,778 Big Jacket Trust 54,664 Miles of Cars 639.709 Total $9,391,187 41 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (4) Contracts, Notes and Loans Receivable, (Continued) Copper Hills Apartments, LP — CDC Residual Receipts Note dated February 19, 1999 disclosed a loan of $2,400,000 with 3% interest per annum for 55 years, funded by HOME and Low & Moderate Income Housing Funds. A second and junior to the CDC Residual Receipts Note was made on June 3, 1999 for $4,400,000, referred to as CDC Rehabilitation Note with 3% interest per annum for 55 years and funded by Low & Moderate Income IIousing Fund. These loans were made to acquire, develop, rehabilitate and operate the multi -family apartments located at "Q" Avenue in National City, Ca. This project will contain 134 apartment dwelling units following rehabilitation and renovation. Plaza Manor — CDC of the City of National City entered into a loan agreement with Plaza Manor Preservation, LP on December 18, 2001 in the amount of $500,000 with 3% compound interest per annum and shall end on April 15, 2032. The borrower has acquired a property located in the City of National City with aid of the said loan and with the intention to operate a 372 unit project as a very low and low income housing project. Funding sources for this loan were HOME (48%) and Low & Moderate Income Housing Funds (52%). Single -Family Housing Rehabilitation Loan Program — Prior to 2005, the CDC of the City of National City provided loans to eligible low-income homeowners to make repairs and basic home improvements that maintain the quality of their housing and created a positive effect in the surrounding neighborhood. Loans were offered at below -market interest rates utilizing federal HOME Investment Partnerships Program funds. Young Trust — A Promissory Note secured by Deed of Trust was made on December 17, 2003 between CDC of the City of National City and Robert Dale Young and Deborah Mae Young in the amount of $230,000 with interest of 5% per year. This loan is in reference to the California Community Redevelopment Law, where CDC appeals to redevelop a portion of the National City Redevelopment project, which is bounded by the location at Harrison Avenue, National City. Big Jackel Trust — CDC of the City of National City entered into a Memorandum of Understanding with Big Jackel Trust to establish a rehabilitation loan for an amount not - to -exceed $200,000 on April 4, 1995. The loan was not subject to principal payments and did not accrue interest for the initial two years. For eighteen years thereafter, the loan would he subject to regular monthly payments with 3% interest per annum. The purpose of the loan was to rehabilitate and enhance Big Ben Market in National City with additional storage space, improved signage and lighting, exterior and interior paint, and repaving of parking surfaces and striping. Miles of Cars — CDC of the City of National City entered into Freeway Sign Rehabilitation Loan Agreement with the Mile of Cars Association, a nonprofit, mutual benefit corporation on July 8, 2010 for the amount of $660,000 with 2% interest per annum with a term of 20 years from the date of initial disbursement. The loan requires quarterly payments of principal and interest. The purpose of the loan was to rehabilitate existing freeway signage equipment and improvements. 42 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (4) Contracts, Notes and Loans Receivable, (Continued) Casa Familiar — CDC of the City of National City entered in an Acquisition, Rehabilitation and Permanent Loan Agreement with Casa Familiar, Inc. on October 1, 2009 amounting to S516,900 with 2% per annum from the date of the disbursement. Interest shall accrue, however, no payments shall be due under the CDC Note until July 1, 2011, and annually on July 1 of each year during the term of the CDC note, and Borrower shall make payments to the CDC in the manner provided in the CDC note until 55 years. This loan was intended to acquire, rehabilitateand permanently finance the property located at 304 East Fifth Street, National City, CA and is comprised entirely of HUD HOME funds all of which shall be used for HOME eligible purposes. As of June 30, 2011, an allowance has been established for the entire amount of the note outstanding as collection of this note is not expected at this time. Plaza City — CDC of the City of National City entered into a Loan Agreement with Plaza City Apartments, LP on November 1, 2005 in the amount of $2,700,000 with 3% interest per annum for 55 years. It was amended per Resolution No. 2006-202 dated September 19, 2006 which increased the loan amount by $722,000 for a total of $3,422,000. This loan will be used by the borrower to pay the balance of the purchase price and additional costs relating to the acquisition, demolition and development of certain real property located at 1535 Plaza Blvd., National City, CA. As of June 30, 2011, an allowance has been established for the entire amount of the note outstanding as collection of this note is not expected at this time. Constellation — CDC of the City of National City entered into a Loan Agreement with Constellation Property Group (A Avenue) LP, a Delaware limited partnership, on December 13, 2007 for the amount of S2,500,000 with interest of 10%, non -compounded, requiring no interim payment of principal and interest and maturing on December 13, 2010. The purpose of the loan was to assist with the development of the Centro Condominium project on A Avenue in National City — a 91,199 square foot, four story condominium project housing 61 residential units and 108 parking spaces. As of June 30, 2011, an allowance has been established for the entire amount of the note outstanding as collection of this note is not expected at this time. 43 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (5) Capital Assets The following is a summary of changes in the capital assets for governmental activities at June 30, 2011: Balance at July 1, 2010 Balance at Additions Deletions June 30, 2011 Governmental -type activities: Depreciable: Buildings and improvements $ 44,343,967 - Machinery and equipment 14,070.632 1,005,599 (142,806) Infrastructure 111.876.502 2,980,992 (1,506,690) Total cost of depreciable capital assets 170,291,101 3,986,591 (1,649,496) Less accumulated depreciation: Buildings and improvements Machinery and equipment Infrastructure (17,143,453) (1,389,908) (9,398,002) (878,482) (52,223.729) (2,715,381) Total accumulated depreciation (78,765,184) (4,983,771) Net depreciable capital assets Non -depreciable: Land Rights of way Construction in progress Total non -depreciable capital assets 1,461 304 44,343,967 14,933,425 113,350,804 172,628,196 (18,533,361) (10,276,484) (53,477,806) 1,461,304 (82,287,651) 91.525,917 (997,180) (188,192) 90,340,545 20.025,598 - 20,025,598 4,245,088 - 4,245,088 5,078,125 1 644,620 (4,571,126) 2,151,619 29,348.811 1,644,620 (4,571 12±)) 26,422,305 Capital assets, net S120.874,728 Depreciation expense for governmental activities $4,983,771 was allocated as follows: General Government Community Development Public Safety Transportation 647 440 L,759 318) 116,762,850 for the year ended June 30, 2011 of $ 352,750 1,520,605 879,669 2,230,747 4 983,771 44 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (5) Capital Assets, (Continued) The following is a summary of changes in the capital assets for business -type activities at June 30, 2011: Balance at Balance at July 1, 2010 Additions Deletions June 30, 2011 Business -type activities: Depreciable: Buildings and improvements $ 15,684.584 - - 15,684,584 Machinery and equipment 462,153 - 462,153 Total depreciable capital assets 16,146,737 - - 16,146,737 Less accumulated depreciation (9,045.210) (413.569) - (9,458,779) Total depreciable assets, net 7,101,527 (413,5691 6,687,958 Non -depreciable assets: Land 528 382 528,382 Total non -depreciable capital assets 528,382 - - 528 382 Capital assets, net $7 629 909 (413,569) - 7,216 340 Depreciation expense for business -type activities for the year ended June 30, 2011 was allocated as follows: Kimball Towers Morgan Towers Total depreciation expense 45 $ 187,350 226,219 $413,569 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (6) Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; natural disasters; and workers' compensation claims. A self-insurance (internal service) fund is used to account for the City's insurance programs. Operating revenues of this fund represent payments from other City funds and are based upon estimated umbrella insurance premium expenses, self-insurance losses and other operating expenses. The City is a member of the San Diego Pooled Insurance Program Authority (the "Program Authority"), a joint powers authority established to provide insurance and insurance -related services to its members. The Program Authority's governing board consists of one member from each participating city and is responsible for the selection of management as well as budgeting and finance. Insurance activities are financed by charges to member cities. Each participating city has its own self -insured retention level. The City is insured for general liability with a self -insured retention of $150,000. Losses between the self -insured retention level and $2,000,000 are shared by the participant cities. Excess liability insurance coverage is. provided by the Program Authority for losses greater than $2,000,000 up to $35,000,000. Losses in excess of $35,000,000 are not covered and are self -funded by the City. The City is completely self - insured for unemployment claims. The City is also a member of CSAC Excess Insurance Authority ("CSAC"), a joint powers authority, for workers compensation claims. The City is self -insured for workers compensation claims and losses up to $500,000 per occurrence. Losses between the self - insured retention level and $5,000,000 are shared by the participant cities. Losses in excess of $5,000,000 up to $200,000,000 are reinsured by a commercial insurance carrier. The City is completely self -insured for unemployment claims. During the current year, there were no significant reductions in insurance coverage from the prior year. For each of the past three fiscal years, the settlements have not exceeded the City's insurance coverage. 46 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (6) Risk Management. (Continued) At June 30, 2011, the City accrued $6,114,000 of workers' compensation and general liability claims representing estimates of amounts to be paid for actual and incurred but not reported claims based upon past experience, modified for current trends and information. Allocated claim adjustment expenses are included in claim liabilities. While the ultimate amount of losses incurred through June 30, 2011 is dependent on future developments, based upon information from the City Attorney, outside counsel and others involved with the administration of the programs, City management believes that the aggregate accrual is adequate to cover such losses. For the past three years, no settlements or claims payments have exceeded the amount of the applicable coverage. For the past two fiscal years, the changes in the City's liability for claims payable are summarized as follows: Fiscal Year 2010-11 Fiscal Year 2009-10 Unpaid claims, July 1 $ 5,884,000 4,825,000 Incurred claims and adjustments 1,061,409 1,832,888 Claims paid (831,409) (773,888) Total $ 6 114,000 5.884,000 47 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (7) Long -Term Debt Following is a summary of long-term debt transactions for the fiscal year ended June 30, 2011: Governmental Activities: National City Joint Powers Financing Authority: Lease Revenue Refunding Bonds Classification Amount Due Amount Due Balance at Balance at Within Beyond Julv 1, 2010 Additions Deletions June 30 2011 One Year One Year $ 3,280,000 3,115,000 (3,280,000) 3,115,000 400,000 2,715,000 Community Development Commission: 1999 Tax Allocation Bonds 4,090,000 - (125,000) 3,965,000 130,000 3,835,000 2004 Tax Allocation Bonds 4,620,000 - (275,000) 4,345,000 285,000 4,060,000 2005SeriesAandBTax Allocation Bonds 28,745,000 - (2,125,000) 26,620,000 3,060,000 23,560,000 2011 Tax Allocation Bonds - 39,660,000 39,660,000 - 39,660,000 General Obligation Bonds 5,285,000 (165,000) 5,120,000 175,000 4,945,000 HUD 108 Bond 2003 A 5 750 000 - f245 000) 5 505 000 260,000 5,245,000 Total Bonds 51,770,000 42,775,000 (6,215,000) 88,330,000 4,310,000 84,020,000 Claims Payable 5,884,000 1,061,409 (831,409) 6,114,0(10 1,578,371 4,535,629 Compensated Absences 3,028,792 1,798,481 (2,011,932) 2,815,341 2,012,000 803,341 Other Postemployment Benefits 53,795 126,454 (75,020) 105,229 - 105,229 Capitalized Lease Obligations 2 611 714 (194,992) 2 416,722 379,427 2,037,295 Total Governmental Activities Business -type Activities: Note Payable Total Primary Government 63,348,301 45,761,344 (9,328,350) 99,781,295 8,279,798 91,501,497 2,481,662 (204,777) 2,276,885 218.492 2,058,393 $65.829 963 45 761 344 (9 533 127) 102,058,180 8,498,290 93 559 890 48 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (7) Long -Term Debt, (Continued) National City Joint Powers Financing Authority (NCJPFA) Lease Revenue Refunding Bonds The NCJPFA issued $3,115,000 of refunding bonds on September 28, 2010 to provide funds for the advance refunding of the previously issued bonds. Interest on the bonds is payable semiannually on each April 1 and October 1, commencing April 1, 2011. The bonds are special obligations of NCJPFA secured by a pledge of revenues which consist of lease payments received by NCJPFA, as lessor, from the City, as lessee. The annual debt service payments for the bonds Fiscal Year Principal 2012 2013 2014 2015 2016 2017 2018 Total $ 400,000 415,000 430,000 445,000 460,000 475,000 490,000 $3,115 000 49 are as follows: Interest 87,450 75,225 62,550 49,425 35,850 21,825 7,350 339 675 Total 487,450 490,225 492,550 494,425 495,850 496,825 497,350 3,454.675 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (7) Long -Term Debt, (Continued) Community Development Commission 1999 Tax Allocation Bonds In June 1999, the Commission issued $5,050,000 in Tax Allocation Bonds for the Q Avenue Redevelopment project. The bonds consist of $1,085,000 in serial bonds which mature from 2000 to 2010 in amounts ranging from $45,000 to $125,000, and $1,425,000 in term bonds which mature in 2019, and $2,540,000 in term bonds which mature in 2029. Interest is payable semi-annually on February 1 and August 1, at interest rates ranging from 3.30% to 4.50%. The annual debt service requirements for the 1999 Tax Allocation Bonds outstanding are as follows: Fiscal Year Principal Interest Total 2012 $ 130,000 198,175 328,175 2013 135,000 191,550 326,550 2014 145,000 184,550 329,550 2015 150,000 177,176 327,176 2016 155,000 169,550 324,550 2017 165,000 161,549 326,549 2018 175,000 153,050 328,050 2019 180,000 144,175 324,175 2020 190,000 134,925 324,925 2021 200,000 125,050 325,050 2022 210,000 114,543 324,543 2023 220,000 103,525 323,525 2024 235,000 91.866 326,866 2025 245,000 79,566 324,566 2026 260,000 66,625 326,625 2027 270,000 53,044 323,044 2028 285,000 38,822 323,822 2029 300,000 23,831 323,831 2030 315,000 8,072 323,072 Total $3,965,000 2,219,644 6.184.644 50 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (7) Long -Term Debt, (Continued) Community Development Commission 2004 Tax Allocation Bonds In June 2004, the Commission issued $5,860,000 Tax Allocation Bonds to finance a portion of the cost to construct a fire station, library, and community art center. The bonds consist of $3,045,000 in serial bonds, which mature from 2005-2015 in amounts ranging from $220,000 to $330,000, and $1,085,000 in term bonds, which matures in fiscal year 2033. Interest is paid semi-annually on February 1 and August 1, at interest rates ranging from 1.50% to 5.50%. The annual debt service requirements for the 2004 Tax Allocation Bonds outstanding are as follows: Fiscal Year Principal Interest Total 2012 $ 285,000 210,010 495,010 2013 295,000 199,750 494,750 2014 305,000 188,540 493,540 2015 315,000 176,340 491,340 2016 330,000 163,425 493,425 2017 149,400 149,400 2018 - 149,400 149,400 2019 - 149,400 149,400 2020 - 149,400 149,400 2021 - 149,400 149,400 2022 - 149,400 149,400 2023 - 149,400 149,400 2024 - 149,400 149,400 2025 - 149,400 149,400 2026 149,400 149,400 2027 345.000 149,400 494,400 2028 360,000 134,150 494,150 2029 380.000 114,150 494,150 2030 400.000 94,150 494,150 2031 420,000 74,150 494,150 2032 445.000 49,150 494,150 2033 465.000 29,150 494,150 Total $4,345,000 3 076 365 7,421 365 51 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (7) Long -Term Debt, (Continued) Community Development Commission 2005 Tax Allocation Bonds In January 2005, the Commission issued 2005 Tax Allocation Bonds Series A & B, in the aggregate principal amount of $27,940,000 and $9,840,000, respectively. The bonds were issued for the purpose of refunding the 2001 Tax Allocation Refunding Bonds Series A & B. Interest on the bonds is payable semiannually on August 1 and February 1, commencing August 1, 2005, at rates ranging from 2.9% to 5.25% per annum. The annual debt service requirements for the 2005 Tax Allocation Bonds outstanding arc as follows: Fiscal Year Principal interest 'total 2012 $ 3,060,000 1,164,193 4,224,193 2013 3.200,000 1,021,743 4,221,743 2014 3,345,000 869,536 4,214,536 2015 3,505,000 706,808 4,211,808 2016 3,670,000 533,690 4,203,690 2017 760,000 444,693 1,204,693 2018 790,000 415,813 1,205,813 2019 825,000 385,003 1,210,003 2020 855.000 352,003 1,207,003 2021 890,000 317,803 1,207,803 2022 570,000 277,753 847,753 2023 595,000 253,528 848,528 2024 780,000 227,943 1,007,943 2025 815,000 194,013 1,009,013 2026 855,000 153,263 1,008,263 2027 555,000 110,513 665,513 2028 435,000 81,375 516,375 2029 250,000 58,538 308,538 2030 200,000 45,413 245,413 2031 210,000 34,913 244,913 2032 220,000 23,888 243,888 2033 235,000 12,338 247,338 Total $26,620,000 7,684,763 34.304,763 52 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (7) Long -Term Debt, (Continued) 2011 Tax Allocation Bonds In February 2011, the Commission issued $39,660,000 in Tax Allocation Bonds for the purpose of fund redevelopment and low and moderate income housing projects within the Project Area. The bonds consist of $9,790,000 in serial bonds which mature from 2012- 2021 in amounts ranging from S325,000 to $1,825,000, $5,830,000 in term bonds which mature in fiscal year 2024, and $24,040,000 terns bonds which mature in 2032. Interest is paid semi-annually on February 1 and August 1, at interest rates ranging from 3.00% to 5.75%. Fiscal Year Principal Interest Total 2012 S 1,054,513 1,054,513 2013 325,000 2,565,031 2,890,031 2014 325,000 2,555,281 2,880,281 2015 320,000 2,542,281 2,862,281 2016 315,000 2,529,481 2,844,481 2017 1,145,000 2,515,700 3,660,700 2018 1,255,000 2,458,450 3,713,450 2019 1,315,000 2,395,700 3,710,700 2020 1,445,000 2,329,950 3,774,950 2021 1,520,000 2,254,088 3,774,088 2022 1,825,000 2,166,688 3,991,688 2023 1,930,000 2,061,750 3,991,750 2024 1,890,000 1,936,300 3,826,300 2025 2,010,000 1,813,450 3,823,450 2026 2.140,000 1,682,800 3,822,800 2027 2.285.000 1,533,000 3,818,000 2028 2,505,000 1,373,050 3,878,050 2029 2,880,000 1,197,700 4,077,700 2030 3.095,000 996,100 4,091,100 2031 3,635,000 779,450 4,414,450 2032 3.635,000 525,000 4,160,000 2033 3,875,000 271,250 4,136,250 Total $39,660,000 39 537 013 53 79 197 013 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (7) Long -Term Debt, (Continued) 2002 General Obligation Bonds The City issued $6,000,000 of general obligation bonds, Election of 2002, Series A on April 24, 2003 to provide funds for a new public library. The bonds mature annually through August 1, 2028 in the amounts ranging from $120,000 to $425,000 beginning August 1, 2003. The interest of the bonds is payable semi-annually on each February 1 and August 1, commencing February 1, 2004. The interest rate of the bonds ranges from 3.70% to 6.10%. The bonds are payable solely from and secured by ad valorem taxes of all property subject to taxation by the City. The bonds are subject to optional and mandatory early redemption provisions. The annual debt service payments for the bonds outstanding are as follows: Fiscal Year Principal Interest Total 2012 $ 175,000 224,658 399,658 2013 185,000 213,889 398,889 2014 200,000 204,870 404,870 2015 210,000 197,075 407,075 2016 220,000 188,580 408,580 2017 230,000 179,580 409,580 2018 240,000 170,030 410,030 2019 255,000 159,725 414,725 2020 265,000 148,673 413,673 2021 280,000 136,850 416,850 2022 295,000 124,235 419,235 2023 310,000 110,770 420,770 2024 330,000 96,370 426,370 2025 345,000 81,010 426,010 2026 365,000 64,634 429,634 2027 385,000 47,291 432,291 2028 405,000 29,022 434,022 2029 425,000 9,828 434,828 Total $5 120 000 2,387 090 7 507 090 54 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (7) Long -Term Debt, (Continued) 2003 A HUD 108 Bond The City issued $6,900,000 of HUD 108 Bonds, Series A on August 7, 2003 to provide funds for the construction of a fire station. The bonds mature annually through 2024 in the amount ranging from $170,000 to $635,000 beginning in 2005. The interest of the bonds is payable semi-annually on each February 1 and August 1, commencing February 1, 2004. The annual debt service payments for the bonds outstanding are as follows: Fiscal Year Principal Interest Total 2012 $ 260,000 286,413 546,413 2013 280,000 274,117 554,117 2014 305,000 260,227 565,227 2015 325,000 244,850 569,850 2016 350,000 227,967 577,967 2017 380,000 209,233 589,233 2018 410,000 188,528 598,528 2019 440,000 165,847 605,847 2020 475,000 141,044 616,044 2021 510,000 113,975 623,975 2022 545,000 84,640 629,640 2023 590,000 52,770 642,770 2024 635,000 18,066 653,066 Total $5,505,000 2,267,677 7 772 677 55 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (7) Long -Term Debt, (Continued) Morgan Towers Note Payable The note payable is secured by a deed of trust and is payable to GMAC. The original note was dated March 1, 1978 in the amount of $5,125,000. Payments of principal and interest at 6.5% aggregating $30,005 are made monthly with the final payment due August 1, 2019. The unpaid principal portion of the note at June 30, 2010 was $2,481,662. The note is insured by IIUD and is secured by substantially all property and equipment of the Morgan Towers Enterprise Fund. The annual principal payments of the note payable outstanding are as follows: Fiscal Year Principal Interest Total 2012 $ 218,492 141,568 360,060 2013 233,124 126,936 360,060 2014 248,736 111,324 360,060 2015 265,395 94,665 360,060 2016 283,170 76,890 360,060 2017 302,136 57,924 360,060 2018 322,368 37,692 360,060 2019 343,957 16,103 360,060 2020 59,507 503 60.010 Total $2.276,885 663.605 2,940.490 Defeasance of Debt As of June 30, 2011, the outstanding balance of defeased issues are as follows: 1998 Tax Allocation Bonds $10,165,000 56 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (8) City Defined Benefit Pension Plan (PERS) The City of National City contributes to the California Public Employees Retirement System (PERS). The miscellaneous employees of the City and the safety employees are part of a single -employer defined benefit pension plan. PERS provides retirement and disability benefits, annual cost of living adjustment, and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Copies of PERS' annual financial report may be obtained from its executive office at 400 "P" Street, Sacramento, California 95814. Miscellaneous and safety participants are required to contribute 8% and 9%, respectively, of their annual covered salary. The City makes the contributions required of City employees on their behalf and for their account. Benefit provisions and all other requirements are established by state statute and City contract with employee bargaining groups. Under GASB 27, an employer reports an annual pension cost (APC) equal to the annual required contribution (ARC) plus an adjustment for the cumulative difference between the APC and the employer's actual plan contributions for the year. The cumulative difference is called the net pension obligation (NPO). The ARC for the period July 1, 2010 to June 30, 2011 has been determined by an actuarial valuation of the plan as of June 30, 2008. The contribution rate indicated for the period is 29.383% of payroll for the safety plan and 16.656% of payroll for the miscellaneous plan. In order to calculate the dollar value of the ARC for inclusion in the financial statements prepared as of June 30, 2011, the contribution rate is multiplied by the payroll of covered employees that were paid during the period from July 1, 2010 to June 30, 2011. A summary of principle assumptions and methods used to determine the ARC is shown below. City Miscellaneous Employees Group Safety Employees Group Valuation Date June 30, 2008 June 30,2008 Actuarial Cost Method Entry Age Normal Cost Method Entry Age Normal Cost Method Amortization Method Level Percent of Payroll Level Percent of Payroll .Average Remaining Period 25Years as of the Valuation Date 32 Years as of the Valuation Date Asset Valuation Method 15 Year Smoothed Market 15 Year Smoothed Market Actuarial Assumptions Investment Rate of Return 7.75% (net of administrative expenses) 7.75% (net of administrative expenses) Projected Salary Increases 3.25% to 14.45% depending on Age, 3.25% to 13.15% depending on Age, Service, and type of employment Service, and type of employment Inflation 3.00% 3.00% Payroll Growth 3.25% 3.25% Individual Salary Growth A merit scale varying by duration of A merit scale varying by duration of employment coupled with an assumed employment coupled with an assumed annual inflation component of 3.00% annual inflation component of 3.00% and an annual production growth of and an annual production growth of 0.25% 0.25% 57 Fiscal Year 6/30/09 6/30/10 6/30/11 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (8) City Defined Benefit Pension Plan (PERS), (Continued) Initial unfunded liabilities are amortized over a closed period that depends on the plan's date of entry into Ca1PERS. Subsequent plan amendments are amortized as a level percentage of pay over a closed 20-year period. Gains and losses that occur in the operation of the plan are amortized over a rolling 30 year period, which results in an amortization of 6% of unamortized gains and losses each year. If the plan's accrued liability exceeds the actuarial value of plan assets, then the amortization payment on the total unfunded liability may not be lower than the payment calculated over a 30 year amortization period. The Schedule of Funding Progress below shows the recent history of the actuarial value of assets, actuarial accrued liability, their relationship, and the relationship of the unfunded accrued liability to payroll. The schedule of funding progress, presented below presents multiyear information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. Required Supplementary Information —City Miscellaneous Employees Group Valuation Date Entry Age Normal Accrued Liability 6/30/08 $75,995,058 6/30/09 82,507,216 6/30/10 86,337,687 Required Supplementary Entry Age Normal Valuation Accrued Date Liability 6/30/08 6/30/09 6/30/10 $ 1 12,532,571 122,308,588 128,928,110 Actuarial Value of Assets 67,252,370 70,686,597 74,371.003 Information — Actuarial Value of Assets 91.454,242 95,876,636 100,895,281 Unfunded Liability/ (Excess Assets) 8,742,688 11,820,619 11,966,684 Funded Status 88.5% 85.7% 86.1% Safety Employees Group Annual UAAL Covered As a % of Payroll Payroll 11,798,468 74.5%, 11,644,870 101.5% 11,057,807 108.2% Unfunded Liability/ Annual UAAL (Excess Funded Covered As % of Assets) Status Payroll Payroll 21,078,329 81.3% 10,600,069 198.9% 26,431,952 78.4% 11,268,294 234.6% 28,032,829 78.3% 12,140,600 230.9% Three -Year Trend Information Annual Pension Cost (Employer Contribution) Percentage of Miscellaneous APC Contributed 1,901,577 100% 1,871,038 100% 1,683,420 100% Safety $3,199,780 3,461,800 3,277,155 Net Pension Obligation - 0- -0- - 0- 58 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (9) Other Postemployment Benefit Plan Plan Description: The City provides a fixed dollar monthly contribution equal to $5 ($10 for management and executive employees) times the number of years of service. Safety employees may receive the contribution towards non -City health insurance, if evidence of coverage is provided. The City's contribution is payable to age 65 or Medicare eligibility, if earlier. Management and executive employees are eligible for the City's contribution during their lifetime. Eligibility: Employees are eligible for retiree health benefits if they retire from the City on or after age 50 with at least 20 years of service (10 years for management and executive employees). Membership of the plan consisted of the following at June 30, 201 1, the date of the latest actuarial valuation: Retirees and beneficiaries receiving benefits 46 Active plan members 280 Total 326 City's Funding Policy: The contribution requirements of plan members and the City are established and may be amended by City Council. The contribution required to be made under City Council and labor agreement requirements is based on a pay-as-you-go basis (i.e., as medical insurance premiums become due). For fiscal year 2010-11, the City contributed $75,020 to the plan for current premiums. Annual OPEB Cost and Net OPEB Obligation. The City's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The following table shows the components of the City's annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the City's net OPEB obligation for these benefits: 59 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (9) Other Postemployment Benefit Plan, (Continued) Annual required contribution $126,454 Interest on net OPEB obligation 2,690 Adjustments to annual required contributions (2,690) Annual OPEB cost (expense) 126,454 Contributions made (including premiums paid) (75,020) Increase in net OPER obligation 51,434 Net OPEB obligation -beginning of year 53,795 Net OPEB obligation -end of year $105,229 The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPER obligation for 2011 and the two preceding years were as follows: Percentage of Annual Net Fiscal Annual OPEB Cost OPEB Year OPEB Cost Contributed Obligation 6/30/09 S110,954 68% $ 34,624 6/30/10 110,954 83% $ 53,795 6/30/11 126,454 59% $105,229 Funded Status and Funding Progress. The funded status of the plan as of June 30, 2011, was as follows: Actuarial accrued liability (AAL) Actuarial value of plan assets Unfunded actuarial accrued liability (UAAL) Funded ratio (actuarial value of plan assets/AAL) Covered payroll (active plan members) UAAL as a percentage of covered payroll $1,370,805 $1,370,805 0.0% 18,322,000 7.5% 60 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (9) Other Postemplovment Benefit Plan, (Continued) Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multi -year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for the benefits. Actuarial Methods and Assumptions. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood. by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial assets, consistent with the long-term perspective of the calculations. The actuarial cost method used for determining the benefit obligations is the Frozen Entry Age Actuarial Cost Method. The actuarial assumptions included a 5% percent investment rate of return, which is the assumed rate of the expected long-term investment returns on plan assets calculated based on the funded level of the plan at the valuation date. The UAAL is being amortized as a level percentage of projected payroll over 20 years. It is assumed the City's payroll will increase 3.25% per year. SCHEDULE OF FUNDING PROGRESS Actuarial UAAI, as a Accrued Unfunded Percentage of Actuarial Actuarial Liability AAL Funded Covered Covered Valuation Value of (AAL)-Entry (UAAL) Ratio -Payroll Payroll Date Assets (a) Age (b) (b-a) (a/b) Lc=1 (a-b)/c) 7/01/08 $ - $1,058,356 $1,058,356 0% $22,466,000 4.7% 7/01/10 $ - $1,370,805 $1,370,805 0% $18,322,000 7.5% 61 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (10) Commitments and Contingencies A. Lawsuits in the Normal Course of Business The City is presently involved in certain matters of litigation that have arisen in the normal course of conducting City business. City management believes, based upon consultation with the City Attorney, that these cases, in the aggregate, are not expected to result in a material adverse financial impact on the City. Additionally, City management believes that the City's insurance programs are sufficient to cover any potential losses should an unfavorable outcome materialize. Federal and State Grant Programs The City participates in several federal and state grant programs. These programs have been audited by the City's independent auditors in accordance with the provisions of the federal Single Audit Act, as amended and applicable state requirements. No cost disallowances were proposed as a result of these audits. However, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. (11) Pledged Revenues The City and its component units have a number of debt issuances outstanding that are collateralized by the pledging of certain revenues. The amount and term of the remainder of these commitments are indicated in the debt service to maturity tables presented in the accompanying notes. The purposes for which the proceeds of the related debt issuances were utilized are disclosed in the debt descriptions in the accompanying notes. For the current year, debt service payments as a percentage of the pledged gross revenue (or net of certain expenses where so required by the debt agreement) are indicated in the table below. These percentages also approximate the relationship of debt service to pledged revenue for the remainder of the term of the commitment: Description of Pledged Revenue Tax increment revenues Annual Amount of Pledged Revenue (net of expenses, where required) $11,070,963 Annual Debt Service Payments (of all debt secured by this revenue) Debt Service as a Percentage of Pledged Revenue 4,682,338 42% 62 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (12) Prior Period Adjustments The accompanying financial statements include adjustments that resulted in the restatements of beginning fund balances/net assets. The following summarizes the effect of the prior period adjustments to beginning fund balance net assets as of July 1, 2010: Fund balance -beginning of year, as previously reported To adjust notes receivable for notes previously not recorded and to adjust note balances for allowance for doubtful accounts. Fund balance -beginning of year, as restated Low and Moderate Income HOME Capital Projects }lousing Program Fund — Special Special Redevelopment Revenue Revenue Fund Fund Fund $12,231,631 12,874,593 4,216,400 (2.500,000) 1,431,129 (817,574) $ 9 731 631 14,305,722 3,398,826 The following summarizes the effect of the prior period adjustments to beginning net assets as of July 1, 2010: Net Assets -beginning of year, as previously reported To adjust notes receivable for notes previously not recorded and to adjust note balances for allowance for doubtful accounts. Net Assets -beginning of year, as restated 63 Government -Wide Statement of Net Assets $ 162,782,730 (10.112,488) $ 152.670.242 CITY OF NATIONAL CITY Notes to the Basic Financial Statements (Continued) (13) Accumulated Fund Deficits The following funds had fund deficits at June 30, 2011: STP/Local Transnet Highway Special Revenue Fund Traffic Congestion Relief Special Revenue Fund The City is in the process of identifying a repayment method deficit fund balances will remain on the books until an agreed by the City Council of the City of National City. (14) Fund Balance - Unassigned $(476,515) (61,537) of the funds noted. The upon method is approved To strengthen its ability to withstand unexpected financial emergencies such as may result from national disaster, revenue shortfalls, or unanticipated expenditures of a non- recurring nature and to accumulate funds for large scale purchases, the City had established a policy to maintain and accumulate a General Fund Contingency Reserve. Per the City Policy Number 201, the General Fund Contingency Reserve should be between 25% and 50% of a single year's General Fund operating expenditures. At a minimum, based on current year expenditures, this amount should be equal to 9$ million. It is the City's intent to assign $7 million of the unassigned fund balance for the General Fund Contingency Reserve. 64 REQUIRED SUPPLEMENTAR Y INFORMATION 65 CITY OF NATIONAL CITY Notes to Required Supplementary Information For the Year Ended June 30, 2011 (1) Budgetary Information Annual budgets are adopted for the general, special revenue, debt service, and capital projects funds. All unencumbered appropriations lapse at the end of the fiscal year. Encumbered appropriations are carried forward in the subsequent fiscal year. The City Manager is authorized to transfer budgeted amounts within a fund. Ilowever, any revisions that increase the total budget of any fund must be approved by the City Council. All necessary supplemental appropriations were adopted by the City Council and are included in the reported data. For the fiscal year ended June 30, 2011, supplemental appropriations requiring City Council approval were insignificant. The legal level of control for appropriations is exercised at the fund level. Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders, contracts) outstanding at year-end are reported as reservations of fund balances and do not constitute expenditures or liabilities because the commitments will be honored during the subsequent year. The following is the budget comparison schedules for the General Fund and all major special revenue funds. 66 CITY OF NATIONAL CITY General Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Taxes $ 29,819,949 29,819,949 31,750,265 1,930,316 Licenses and permits 613,604 613,604 767,876 154,272 Fines and forfeitures 1,380,168 1,380,168 1,434,437 54,269 Interest and rents 374,492 374,492 381,692 7,200 Intergovernmental 520,348 520,348 684,993 164,645 Charges for services 992,115 992,115 1,011,635 19,520 Other revenues 665,724 665,724 740,928 75,204 Total revenues 34,366,400 34,366,400 36,771,826 2,405,426 Expenditures: Current: General government 4,741,836 4,741,836 3,893,535 848,301 Public safety 28,825,500 28,825,500 25,671,368 3,154,132 Transportation 1,423,320 1,423,320 1,212,963 210,357 Culture and leisure 2,008,734 2,008,734 1,736,096 272,638 Capital outlay 900,202 900,202 286,219 613,983 Debt service: Principal 232,948 232,948 227,360 5,588 Interest and fiscal charges 59,256 59,256 57,831 1,425 Total expenditures 38,191,796 38,191,796 33,085,372 5,106,424 Excess (deficiency) of revenues over (under) expenditures (3,825,396) (3,825,396) 3,686,454 7,511,850 Other financing sources (uses): Transfers in 3,463,960 3,463,9.60 1,760,491 (1,703,469) Transfers out (3,706,094) (3,706,094) (3,712,121) (6,027) Total other financing sources (uses) (242,134) (242,134) (1,951,630) (1,709,496) Net change in fund balances (4,067,530) (4,067,530) 1,734,824 5,802,354 Fund balance, beginning of year 11,826,025 11,826,025 11,826,025 - Fund balance, end of year $ 7,758,495 7,758,495 13,560,849 5,802,354 67 CITY OF NATIONAL CITY Section 8 Housing Assistance Special Revenue Fund _u dine of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Interest and rents $ 7,500 7,500 (7,500) Intergovernmental 9,514,464 9,514,464 9,618,037 103,573 Total revenues 9,521,964 9,521,964 9,618,037 96,073 Expenditures: Current: Community development 9,269,516 9,269,516 9,224,997 44,519 Total expenditures 9,269,516 9,269,516 9,224,997 44,519 Net change in fund balances 252,448 252,448 393,040 140,592 Fund balance, beginning of year 1,079,035 1,079,035 1,079,035 Fund balance, end of year $ 1,331,483 1,331,483 1,472,075 140,592 68 CITY OF NATIONAL CITY Other Special Revenue Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Licenses and permits $ 15,000 15,000 4,450 (10,550) Fines and forfeitures 60,085 60,085 74,841 14,756 Interest and rents 23,021 23,021 27,550 4,529 Intergovernmental 3,021,386 3,021,386 2,011,022 (1,01(1,364) Charges for services 948,506 948,506 834,464 (114,042) Other revenues 467,214 467,214 533,243 66,029 Total revenues 4,535,212 4,535,212 3,485,570 (1,049,642) Expenditures: Current: General government 3,418,441 3,418,441 2,322,495 1,095,946 Public safety 4,222,047 4,222,047 1,906,715 2,315,332 Transportation 52,146 52,146 40,424 11,722 Community development 270,000 270,000 235,150 34,850 Health 224,665 224,665 121,912 102,753 Culture and leisure 1,236,173 1,236,173 1,077,084 159,089 Capital outlay 3,527,652 3,527,652 968,455 2,559,197 Total expenditures 12,951,124 12,951,124 6,672,235 6,278,889 Excess (deficiency) of revenues over (under) expenditures (8,415,912) (8,415,912) (3,186,665) 5,229,247 Other financing sources: Transfers in Transfers out 2,871,561 (105,000) 2,871,561 2,877,588 6,027 (105,000) (105,000) - Total other financing sources 2,766,561 2,766,561 2,772,588 6,027 Net change in fund balances (5,649,351) (5,649,351) (414,077) 5,235,274 Fund balance, beginning of year 9,480,937 9,480,937 9,480,937 - Fund balance, end of year $ 3,831,586 3,831,586 9,066,860 5,235,274 69 CITY OF NATIONAL CITY Nutrition Program Special Revenue Fund tedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental $ 345,729 345,729 323,005 (22,724) Other revenues 156,500 156,500 170,448 13,948 Total revenues 502,229 502,229 493,453 (8,776) Expenditures: Current: Community development 817,711 817,711 722,571 95,190 Total expenditures 817,711 817,711 722,521 95,190 Excess (deficiency) of revenues over (under) expenditures (315,482) (315,482) (229,068) 86,414 Other financing sources: Transfers in 366,260 366,260 366,260 Total other financing sources 366,260 366,260 366,260 Net change in fund balances 50,778 50,778 137,192 86,414 Fund balance, beginning of year 83,917 83,917 83,917 - Fund balance, end ofyear $ 134,695 134,695 221,109 86,414 70 CITY OF NATIONAL CITY Sewer Service Special Revenue Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Revenues: Interest and rents Charges for services Other revenues Total revenues For the Year Ended June 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 105,050 7,117,910 105,050 90,528 (14,522) 7,117,910 7,258,981 141,071 9,893 9,893 7,222,960 7,222,960 7,359,402 136,442 Expenditures: Current: General government 93,794 93,794 93,969 (175) Health 12,743,611 12,743,611 6,720,324 6,023,287 Total expenditures 12,837,405 12,837,405 6,814,293 6,023,112 Net change in fund balances (5,614,445) (5,614,445) 545,109 6,159,554 Fund balance, beginning of year 16,073,658 16,073,658 16,073,658 Fund balance, end of year $ 10,459,213 10,459,213 16,618,767 6,159,554 71 CITY OF NATIONAL CITY Low and Moderate Income Housing Program Special Revenue Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Taxes $ 2,817,500 2,817,500 2,767,741 (49,759) Interest and rents 1,553 1,553 244,321 242,768 Other revenues 239,054 239,054 32,974 (206,080) Total revenues 3,058,107 3,058,107 3.045,036 (13,071) Expenditures: Current: Community development 2,306,966 2,306,966 384,247 1,922,719 Total expenditures 2,306,966 2,306,966 384,247 1,922,719 Excess (deficiency) of revenues over (under) expenditures 751,141 751,141 2,660,789 1,909,648 Other financing sources (uses): Transfers out (861,866) (861,866) (861,864) 2 Total other financing sources (uses) (861,866) (861,866) (861,864) 2 Net change in fund balances (110,725) (110,725) 1,798,925 1,909,650 Fund balance, beginning of year, as restated 14,305,722 14,305,722 14,305,722 Fund balance, end of year $ 14,194,997 14,194,997 16,104,647 1,909,650 72 (This page intentionally left blank) 73 NON -MAJOR GOVERNMENTAL FUNDS PFC-f I REVENUE FUNDS: General Capital Outlay Fund This fund is used to account for funds set aside from the proceeds of sale of and rental from surplus real property for the City's five-year capital improvement program. Library Fund This fund is used to account for the operation of the National City Library. Parks Maintenance Fund This fund is used to account for operating and maintaining the City's parks. Library Capital Outlay Fund This fund is used to account for revenues from real property transfer taxes set aside to finance capital outlay and capital improvement expenditures of the National City Library. Gas Tax Fund This fund is used to account for the City's share of state gas tax revenue restricted for street improvement and maintenance. Parks and Recreation Capital Outlay Fund This fund is used to account for revenues from dwelling fees set aside for capital improvement expenditures of the Parks and Recreation Department. Community Development Block Grant Fund This fund is used to account for federal funds received from the U.S. Department of Housing and Urban Development -- Community Development Block Program. HUD Program Income Fund This fund is used to provide for the funding of CDBG program activities as approved by the City Council utilizing HUD program income. Home Program Fund This fund is used to account for federal funds received from the U.S. Department of Housing and Urban Development Horne Program. Asset Forfeiture Fund This fund is used to account for the receipt and expenditure of funds provided by the federal government's asset seizure fund to be used exclusively for law enforcement purposes. Brownfield Grant This grant is to provide a Revolving Loan Fund for the community to assist funding cleanup planning and remediation activities. 74 NON -MAJOR GOVERNMENTAL FUNDS, (CONTINUED) i ,BT SERVICE FUND: N tmai City Joint Powers Financing Authority Fund This fund is used to account for funds maintained by the trustee bank solely for the purpose of paying, when due and payable, the principal of or interest on the lease revenue bonds and lease revenue refunding bonds issued by the National City Joint Powers Financing Authority. Library Bond Debt Service Fund This fund is used to account for debt service of the Library. CAPITAL PROTECTS FUNDS: Library Construction Project Capital Projects Fund This fund is used to account for activities of the library construction. Proposition "A" Capital Projects Fund This fund is used to account for the City's allocation of the 2% transactions and use tax imposed by Proposition "A" (San Diego Transportation Improvement Program Ordinance) passed by the voters in San Diego County in November 1987. STP LocaUTransNet Highway Fund This fund is used to account for funds received from the San Diego Association of Governments ("SANDAG") for TransNet projects. State -Local Partnership Fund This fund is used to account for the receipt and expenditures of funds provided by the State under the State -Local Transportation Partnership Program. Traffic Congestion Relief Fund This fund is used for the maintenance, rehabilitation and reconstruction of transportation related to Capital Projects; specifically pertaining to local streets and roads. Fire Construction Project Capital Projects Fund This fund is used to account for activities for fire department construction. 75 ASSETS Cash and investments Restricted cash and investments with fiscal agent Accounts receivable Interest receivable Due from other governmental entities Contracts, notes and loans receivable Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Salaries payable Due to other funds Due to other governmental entities Deposits payable Deferred revenue Advances from other funds Total liabilities CITY OF NATIONAL. CITY Nournajor Governmental Funds Combining Balance Sheet June 30, 2011 Special Revenue Funds General Library Park and Capital Parks Capital Recreation Outlay Library Maintenance Outlay Gas Tax Capital Outlay $ 1,011,697 66,751 84,774 853,167 767,205 606,702 402 1,204 5 1,011,697 66,751 84,774 853,167 768,409 5,700 7,659 1,076 37,683 24,039 18,240 29,739 25,899 1,076 37,683 607,104 Fund balances: Spendable: Restricted for: Debt service - - - - - - Cotmnunity development - - - - - - Public safety - - - - - Transportation - 730,726 General services - 37,012 58,875 - 607,104 Total restricted - 37,012 58,875 - 730,726 607,104 Committed for: General services Community development Total committed Unassigned Total fund balances (deficits) Total liabilities and fund balances 1,011,697 - - 852,091 1,011,697 852,091 1,011,697 37,012 58,875 852,091 730,726 607,104 $ 1,011.697 66,751 84,774 853,167 768,409 607,104 76 Special Revenue Funds Debt Service Community HUD Joint Powers Development Program HOME Asset Brownfield Financing Library Block Grant Income Program Forfeiture Grant Authority Bonds 508,997 2,160,908 444,881 - - 778,976 1,100,000 - - - 685 312 2.266 40 358,485 - 669,527 - 190,776 608,610 - 358,485 1,800,085 3,441,311 444,921 685 778,976 149,386 - 137,966 100 - 1,128 5.694 1,714 203,405 - - 358,485 5,987 145,667 100 - - 1,128 1,800,085 3,295,644 1,800,085 444,821 685 777,848 3,295,644 444,821 - 685 777,848 1,800,085 3,295,644 444,821 - 68.5 777,848 358,485 1,800,085 3,441,311 444,921 - 685 778,976 77 (Continued) CITY OF NATIONAL CITY Nonmajor Governmental Funds Combining Balance Sheet, Continued June 30,2011 Capital Projects Funds Library STP Local/ State- Traffic Fire Total Other Construction TransNet Local Congestion Construction Governmental Bonds Proposition A Highway Partnership Relief Project Funds ASSETS Cash and investments $ 138,578 840,661 - 123,062 - 8,386,359 Restricted cash and investments with fiscal agent - - - - - 1,100,685 Accounts receivable - 402 lnterest receivable 230 1,468 - 204 - - 5,724 Due from other governmental entities - 13 - 1,028,025 Contracts, notes and loans receivable - 799,386 Total assets $ 138,808 842,129 13 123,266 - - 11,320,581 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ - 9.676 39.769 Salaries payable 3,917 - Due to other funds - - 436,759 Due to other governmental entities - • Deposits payable - Deferred revenue - Advances from other funds - 760,034 - Total liabilities Fund balances: Spendable: Restricted for: Debt service Community development Public safety Transportation General services Total restricted Committed for: General services Community development - Total committed 95,493 61,537 390,143 53,604 701,701 101,480 760,034 773,627 476,528 95,493 61,537 2,006,962 68,502 - 27,773 68,502 778,533 5,095,729 444,821 827,001 702,991 27,773 - 7,849,075 138,808 - - - - 138,808 1,863,788 138,808 - - - - 2,002,596 Unassigned - - (476,515) - (61,537) - (538,052) Total fund balances (deficits) 138,808 68,502 (476,515) 27,773 (61,537) - 9,313,619 Total liabilities and fund balances $ 138,808 842,129 13 123,266 - 11,320,581 78 (This page intentionally left blank) 79 CITY OF NATIONAL CITY Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2011 Special Revenue Funds General Library Park and Capital Parks Capital Recreation Outlay Library Maintenance Outlay Gas Tax Capital Outlay Revenues: Taxes $ - 614,682 716,261 62,026 - - Fines and forfeitures - Interest and rents - - 613 - Intergovemmental - 6.231 7,264. 1,405,941 - Charges for services - - - 56,890 Other revenues - 3,330 - Total revenues 624,246 723,525 118.916 1,406,554 Expenditures: Current: General government Public safety Transportation Community development Culture and leisure Capital outlay Debt service: Principal Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over (under) expenditures 1,234,303 1,079,721 691,970 1,721 - 23,938 548,113 1,721 1,234,303 1,079,721 23,938 691,970 548,113 (1,721) (610,057) (356,196) 94,978 714,584 (548,113) Other financing sources (uses): Payment to bond escrow agent - Issuance of debt - - Transfers in 819.208 456,012 - Transfers out (10,000) - (700,000) (125,000) "total other financing sources (uses) (10,000) 819,21)8 456,012 (700,000) (125,000) Net change in fund balances (11,721) 209,151 99,816 94,978 14,584 (673,113) Fund balances, beginning of year, as restated 1,023,418 (172,139) (40,941) 757,113 716,142 1,280,217 Fund balances (deficits), end of year $ 1,011,697 37,012 58,875 852,091 730,726 607,104 80 Special Revenue Funds Debt Service Community HUD Joint Powers Development Program HOME Asset Brownfield Financing Library Block Grant Income Program Forfeiture Grant Authority Bonds 1,644,864 10,221 73,340 1,155,914 202,582 1,644,864 212,803 211,696 235,542 1,015,564 64,753 2922 9 72,455 332,504 1,229,254 67,675 25,156 1,332,436 245,000 208,181 71,163 1,915,983 96,319 53,624 117,219 438,825 72.455 332,513 438,825 72,455 - 1,128 165,000 165,000 166,829 234,740 1,332,436 170,843 72,455 331,829 400,868 (271,119) 116,484 (103,182) (103,168) - 684 37,957 119,531 (123,960) (119,531) (4,429) (.119,531) (275,548) (3,047) (103,182) (103,168) 3,398,826 547,989 275,548 1,803,132 (3,115,000) 3,115,000 684 37,957 1 739,891 1,800,085 3,295,644 444,821 68.5 777,848 81 (Continued) CITY OF NATIONAL CITY Nomnajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances, Continued Revenues: Taxes Fines and forfeitures Interest and rents Intergovernmental Charges for services Other revenues Total revenues Expenditures: Current: General government Public safety Transportation Community development Culture and leisure Capital outlay Debt service: Principal Interest and fiscal chargcs For the Year ended June 30, 2011 Capital Projects Funds Library STP Local/ State Traffic Fire Total Other Construction TransNct Local Congestion Construction Governmental Bonds Proposition A Highway Partnership Relief Project Funds 788 3,445 179,843 699 1,392,969 64,753 92,037 4,805,019 56,890 644,737 788 3,445 179,843 699 - 7,056,405 1,256,843 323,152 Total expenditures - 1,256,843 285,279 53,624 691,970 1,593,134 2,314,024 3,286,550 575,000 680,913 323,152 - 9,480,494 Excess (deficiency) of revenues over (under) expenditures 788 (1,253,398) (143,309) 699 - (2,424,089) Other financing sources (uses): Payment to bond escrow agent Issuance of debt Transfers in Transfers out Total other financing sources (uses) Net change in fund balances Fund balances, beginning of year, as restated Fund balances (deficits), end of year (18,116) (3,115,000) 3,115,000 1,394,751 (1,096,607) (18,116) 298,144 788 (1,253,398) (143,309) 699 - (18,116) (2,125,945) 138,020 1,321,900 (333,206) 27,074 (61,537) 18,116 11,439,564 $ 138,808 68,502 (476,515) 27,773 (61,537) 9,313,619 82 CITY OF NATIONAL CITY General Capital Outlay Special Revenue Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Expenditures: Capital outlay Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers out For the Year Ended June 30, 2011 Budget Amounts Variance with Final Budget Actual Positive Original Final Amounts (Negative) 1,015,736 1,015,736 1,015,736 1,015,736 1,721 1,014,015 1,721 1,014,015 (1,015,736) (1,015,736) (1,721) 1,014,015 (10,000) (10,000) (10,000) Total other financing sources (uses) (10,000) (10,000) (10,000) Net change in fund balances (1,025,736) (1,025,736) (11,721) 1,014,015 Fund balance, beginning of year 1,023,418 1,023,418 1,023,418 Fund balance, end of year $ (2,318) (2,318) 1,011,697 1,014,015 83 CITY OF NATIONAL CITY Library Special Revenue Fund Th<: Jule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Taxes $ 605,519 605,519 614,682 9,163 Intergovernmental 6,600 6,600 6,234 (366) Other revenues - 3,330 3,330 Total revenues 612,119 612,119 624,246 12,127 Expenditures: Current: Culture and leisure 1,431,327 1,431,327 1,234,303 197,024 Total expenditures 1,431,327 1,431,327 1,234,303 197,024 Excess (deficiency) of revenues over (under) expenditures (819,208) (819,208) (610,057) 209,151 Other financing sources (uses): Transfers in 819,208 819,208 819,208 Total other financing sources (uses) 819,208 819,208 819,208 Net change in fund balances - 209,151 209,151 Fund balance, beginning of year (172,139) (172,139) (172,139) - Fund balance (deficit), end of year $ (172,139) (172,139) 37,012 209,151 84 CITY OF NATIONAL CITY Parks Maintenance Special Revenue Fund :schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Revenues: Taxes Intergovernmental Total revenues Expenditures: Current: Culture and leisure Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources: Transfers in Total other financing sources Net change in fund balances Fund balance, beginning of year Fund balance (deficit), end of year For the Year Ended June 30, 2011 Budget Amounts Actual Original Final Amounts $ 705,529 705,529 716,261 7,700 7,700 7,264 713,229 713,229 723,525 1,169,241 1,169,241 1,079,721 1,169,241 1,169,241 1,079,721 (456,012) (456,012) (356,196) 456,012 456,012 456,012 456,012 456,012 456,012 Variance with Final Budget Positive (Negative) 10,732 (436) 10.296 89,520 89.520 99,816 99,816 99,816 (40,941) (40,941) (40,941) (40,941) (40,941) 58,875 99,816 85 CITY OF NATIONAL CITY Library Capital Outlay Special Revenue Fund :dule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Revenues: Taxes Charges for services Total revenues Expenditures: Capital outlay Total expenditures Net change in fund balances Fund balance, beginning of year Fund balance, end of year For the Year Ended June 30, 2011 Budget Amounts Actual Original Final Amounts $ 77,760 77,760 62,026 18,200 18,200 56,890 38,690 95,960 95,960 118,916 22,956 Variance with Final Budget Positive (Negative) (15,734) 75,000 75,000 23,938 51,062 75,000 75,000 23,938 51,062 20,960 20,960 94,978 74,018 757.113 757,113 757,113 $ 778,073 778,073 852,091 74,018 86 CITY OF NATIONAL CITY Gas Tax Special Revenue Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Interest and rents $ 5,025 5,025 613 Intergovernmental 1,658,895 1,658,895 1,405,941 Total revenues 1,663,920 1,663,920 1,406,554 (4,412) (252,954) (257,366) Expenditures: Current: Transportation 1,452,051 1,452,051 691,970 760,081 Total expenditures 1,452,051 1,452,051 691,970 760,081 Excess (deficiency) of revenues over (under) expenditures 211,869 211,869 714,584 502,715 Other financing sources (uses): Transfers out (700,000) (700,000) (700,000) - Total other financing sources (uses) (700,000) (700,000) (700,000) - Net change in fund balances (488,131) (488,131) 14,584 502,715 Fund balance, beginning of year 716,142 716,142 716,142 - Fund balance, end of year $ 228,011 228,011 730,726 502,715 87 CITY OF NATIONAL CITY Park and Recreation Capital Outlay Special Revenue Fund •dule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Revenues: Interest and rents For the Year Ended June 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Total revenues - Expenditures: Capital outlay 682,988 663,795 548,113 115,682 Total expenditures 682,988 663,795 548,113 115,682 Excess (deficiency) of revenues over (under) expenditures (682,988) (663,795) (548,113) 115,682 Other financing sources (uses): Transfers out - (625,000) (125,000) (500,000) Total other financing sources (uses) (625,000) (125,000) (500,000) Net change in fund balances (682,988) (1,288,795) (673,113) (384,318) Fund balance, beginning of year 1,280,217 1,280,217 1,280,217 - Fund balance, end of year $ 597,229 (8,578) 607,104 (384,318) 88 CITY OF NATIONAL C1TY Community Development Block Grant Special Revenue Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Revenues: Intergovernmental Total revenues Expenditures: Current: General government Community development Capital outlay Debt service: Principal Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out For the Year Ended June 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 1,424,740 1,424,740 1,424,740 1,424,740 249,608 528,450 1,227,925 249,608 528,450 1,227,925 2,005,983 2,005,983 1,644,864 220,124 1,644,864 220,124 211,696 235,542 1,015,564 37,912 292,908 212,361 245,000 (245,000) 208,181 (208,181) 1,915,983 90,000 (581,243) (581,243) (271,119) 310,124 (123,960) 119,531 119,531 (123,960) (123,960) Total other financing sources (uses) (123,960) (123,960) (4,429) 119,531 Net change in fund balances (705,203) (705,203) (275,548) 429,655 Fund balance, beginning of year 275,548 275,548 275,548 - Fund balance (deficit), end of year $ (429,655) (429,655) - 429,655 89 CITY OF NATIONAL, CITY HUD Program Income Special Revenue Fund Ledule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Interest and rents $ 19,700 19,700 10,221 (9,479) Other revenues 100 100 202,582 202,482 Total revenues 19,800 19,800 212,803 193,003 Expenditures: Current: Community development 25,157 25,157 25,156 1 Debt service: Principal 245,000 245,000 - 245,000 Interest and fiscal charges 306,650 306,650 71,163 235,487 Total expenditures 576,807 576,807 96,319 480,488 Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers out Total other financing sources (uses) (557,007) (557,007) 116,484 673,491 Net change in fund balances (557,007) Fund balance, beginning of year 1,803,132 Fund balance, end of year $ 1,246,125 (557,007) 1,803,132 1,246,125 (119,531) (119,531) (119,531) (119,531) (3,047) 1,803,132 553,960 1,800,085 553,960 90 CITY OF NATIONAL CITY HOME Program Special Revenue Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Revenues: Interest and rents Intergovernmental Other revenues Total revenues Expenditures: Current: Community development Total expenditures Net change in fund balances Fund balance, beginning of year, as restated Fund balance, end of year For the Year Ended June 30, 2011 Budget Amounts Actual Original Final Amounts $ 73,340 636,617 636,617 1,155,914 64,143 64,143 700,760 700,760 1,229,254 528,494 Variance with Final Budget Positive (Negative) 73,340 519,297 (64,143) 1,684,353 1,684,353 1,332,436 351,91 / 1,684,353 1,684,353 1,332,436 351,917 (983,593) (983,593) (103,182) 880,411 3,398,826 3,398,826 3,398,826 $ 2,415,233 2,415,233 3,295,644 880,411 91 CITY OF NATIONAL CITY Asset Forfeiture Special Revenue Fund �.e6ule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Revenues: Fines and forfeitures Interest and rents Total revenues Expenditures: Current: Public safety Capital outlay - Total expenditures Net change in fund balances Fund balance, beginning of year Fund balance, end of year For the Year Ended June 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 171,277 171,277 64,753 (106,524) 4,925 4,925 2,922 (2,003) 176,202 176,202 67,675 (108,527) 55,143 55,143 53,624 1,519 156,000 156,000 117,219 38,781 211,143 211,143 170,843 40,300 (34,941) (34,941) (103,168) (68,227) 547,989 547,989 547,989 $ 513,048 513,048 444,821 (68,227) 92 CITY OF NATIONAL CITY Brownfield Grant Special Revenue Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental $ 1,000,000 1,000,000 72,455 (927,545) Total revenues 1,000,000 1,000,000 72,455 (927,545) Expenditures: Current: General government 1,000,000 1,000,000 72,455 927,545 Total expenditures 1,000,000 1,000,000 72,455 927,545 Net change in fund balances - - - Fund balance, beginning of year - - Fund balance, end of year 93 CITY OF NATIONAL CITY Joint Powers Financing Authority Debt Service Fund due of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Interest and rents $ - - 9 9 Intergovernmental 493,000 493,000 332,504 (160,496) Total revenues 493,000 493,000 332,513 (160,487) Expenditures: Debt service: Principal 325,000 325,000 165,000 160,000 Interest and fiscal charges 161,798 161,798 166,829 (5,031) Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Payment to bond escrow agent Issuance of long-term debt Total other financing sources (uses) 486,798 486,798 331,829 154,969 6,202 6,202 684 (5,518) (3,115,000) (3,115,000) 3,115,000 3,115,000 Net change in fund balances 6,202 6,202 684 (5,518) Fund balance, beginning of year 1 1 1 - Fund balance, end of year $ 6,203 6,203 685 (5,518) 94 CITY OF NATIONAL CITY Library Bond Debt Service Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Revenues: Other revenues Total revenues Expenditures: Current: General government For the Year Ended June 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ 404,740 404,740 404,740 404,740 Principal 165,000 165,000 Interest and fiscal charges 244,500 244,500 Total expenditures 409,500 409,500 438,825 34,085 438,825 34,085 1,128 (1,128) 165,000 234,740 9,760 400,868 8,632 Net change in fund balances (4,760) (4,760) 37,957 42,717 Fund balance, beginning of year 739,891 739,891 739,891 - Fund balance, end of year $ 735,131 735,131 777,848 42,717 95 CITY OF NATIONAL CITY Library Construction Capital Projects Fund 'tile of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Interest and rents $ 1,435 1,435 788 (647) Total revenues 1,435 1,435 788 (647) Expenditures: Current: Capital outlay - - - - Total e.ependitures Net change in fund balances 1,435 1,435 788 (647) Fund balance, beginning of year 138,020 138,020 138,020 Fund balance, end of year $ 139,455 139,455 138,808 (647) 96 CITY OF NATIONAL. CITY Proposition A Capital Projects Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30. 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Interest and rents $ 7,380 7,380 3,445 (3,935) Intergovernmental 161,000 161,000 (161,000) Total revenues 168,380 168,380 3,445 (164,935) Expenditures: Capital outlay 3,530,363 3,530,363 1,256,843 2,273,520 Total expenditures 3,530,363 3,530,363 1,256,843 2,273.520 Net change in fund balances (3,361,983) (3,361,983) (1,253,398) 2,108,585 Fund balance, beginning of year 1,321,900 1,321,900 1,321,900 - Fund balance, end of year $ (2,040,083) (2,040,083) 68,502 2,108,585 97 CITY OF NATIONAL CITY STP Local/TransNet Highway Capital Projects Fund ,:du1e of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental $ 846,200 846,200 179,843 (666,357) Total revenues 846,200 846,200 179,843 (666,357) Expenditures: Capital outlay 945,346 945,346 323,152 622,194 Total expenditures 945,346 945,346 323,152 622,194 Net change in fund balances (99,146) (99,146) (143,309) (44,163) Fund balance (deficit), beginning of year (333,206) (333,206) (333,206) - Fund balance (deficit), end of year $ (432,352) (432,352) (476,515) (44,163) 98 CITY OF NATIONAL CITY State - Local Partnership Capital Projects Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Interest and rents $ 1,270 1,270 699 (571) Total revenues 1,270 1,270 699 (571) Net change in fund balances 1,270 1,270 699 (571) Fund balance, beginning of year 27,074 27,074 27,074 - Fund balance, end of year $ 28,344 28,344 27,773 (571) 99 CITY OF NATIONAL CITY Traffic Congestion Relief Capital Projects Fund 1.11e of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Revenues: Intergovernmental Total revenues Expenditures: Capital outlay For the Year Ended June 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) 2,035 2,035 2,035 Total expenditures 2,035 2,035 - 2,035 Net change in fund balances (2,035) (2,035) - 2,035 Fund balance (deficit), beginning of year (61,537) (61,537) (61,537) Fund balance (deficit), end of year $ (63,572) (63,572) (61,537) 2,035 100 CITY OF NATIONAL CITY Fire Construction Capital Projects Fund Schedule of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2011 Revenues: Interest and rents Total revenues Expenditures: Current: General government Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers out Total other financing sources (uses) Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) $ (18,116) 18,116 (18,116) 18,116 Net change in fund balances - - (18,1 16) 18,116 Fund balance, beginning of year 18,116 18,116 18,116 - Fund balance, end of year $ 18,116 18,116 18,116 101 (This page intentionally left blank) 102 INTERNAL SERVICE FUNDS c`iities Maintenance Fund This fund is used to account for the costs of maintaining all City -owned buildings in a clean, safe, workable, and pleasant condition. Liability Insurance Fund This fund is used to account for the costs of maintaining the City's workers' compensation and liability insurance programs. General Services Fund This fund is used to account for the costs of maintaining the City's centralized procurement system providing supplies, equipment, and certain services for all City departments. Information Systems Maintenance Fund This fund is used to account for the costs of maintaining the City's computer -related information systems. Office Equipment Depreciation Fund This fund is used to account for the costs to replace City office equipment. Telecommunications Revolving Fund This fund used to account for the costs of maintaining the City's telecommunications system. General Accounting Services Fund This fund is used to account for the costs of general accounting services. Motor Vehicle Services Fund This fund is used to account fort the City's costs of preventative maintenance and repairs for all City vehicles including police, fire, general administrative, park, sewer and public works equipment. Equipment Replacement Reserve Fund This fund is used to account for the costs to replace City general equipment. Unemployment Insurance Reserve Fund This fund is used to account for a reserve for unemployment insurance. 103 CITY OF NATIONAL CITY Combining Statement of Net Assets Internal Service Funds June 30, 2011 Information Office Facilities Liability General Systems Equipment Maintenance Insurance Services Maintenance Depreciation ASSETS Current assets: Cash and investments $ 147,587 7,718,563 368,396 1,243,964 1,405,626 Cash and investments with fiscal agents 45,764 Accounts receivable - 72,231 Inventories - - 11,128 - Prepaid items and deposits 43,101 - - Total current assets 236,452 7,718,563 379,524 1,316,195 1,405,626 Noncurrent assets: Capital assets: Nondepreciahle assets 1,644,621 - - - Depreciable assets, net of accumulated depreciation - - 77,024 161,976 Total capital assets Total noncurrent assets 1,644,621 1,644,621 77,024 161,976 77,024. 161,976 Total assets 1,881,073 7,718,563 379,524 1,393,219 1,567,602 LIABILITIES Current liabilities: Accounts payable and accrued liabilities $ 131,401 72,590 5,606 77,976 89,111 Salaries payable 20,963 716 3,306 3,663 Capital leases payable - due within one year 88,203 - - Compensated absences 54,526 1,411 - 14,747 Self-insurance claims payable - due within one year - 1,578,371 Total current liabilities 295,093 1,653,088 8,912 96,386 89,111 Noncurrent liabilities: Capital leases payable - due in more than one year Self-insurance claims payable - due in more than one year Total liabilities 1,645,576 4,535,629 1,940,669 6.188,717 8,912 96,386 89,111 NET ASSETS Invested in capital assets, net of related debt 1,644,621 77,024 161,976 Unrestricted (1,704,217) 1,529,846 370,612 1,219,809 1,316,515 Total net assets (deficit) $ (59,596) 1,529,846 370,612 1,296,833 1,478,491 104 General Motor Equipment Unemployment 1'e1e.:,mrnunications Accounting Vehicle Replacement Insurance Revolving Services Services Reserve Reserve 360,145 539,382 1,652,471 252,573 Total 13,688,707 45,764 72,231 11,128 43,101 360,145 539,382 1,652,471 252,573 - 13,860,931 360,145 665,357 1.644,621 274,619 - 1,178,976 665,357 274,619 2,823,597 665,357 274,619 - 2,823,597 539,382 2,317,828 527,192 - 16,684,528 23,962 7,087 52,419 1,049 - 461,201 1,318 13,601 9,376 - 52,943 25,280 25,280 88,203 38,477 26,303 - - 135,464 59,165 88,098 59,165 88,098 1,578,371 1,049 2,316,182 1,645,576 4,535,629 1,049 - 8,497.387 665,357 274,619 - 2,823,597 334,865 480,217 1,564,373 251,524 - 5,363,544 334,865 480,217 2,229,730 526,143 - 8,187,141 105 CITY OF NATIONAL CITY Combining Statement of Revenues, Expenses and Changes in Net Assets Internal Service Funds For the Year Ended June 30, 2011 Operating revenues: Services charges Other revenues Total operating revenues Operating expenses: Personnel services Maintenance and operations Depreciation Information Office Facilities Liability General Systems Equipment Maintenance Insurance Services Maintenance Depreciation $ 1.853,015 2,937,069 254,972 1,209,750 137 114,871 - - 1,853,152 3,051,940 254,972 1,209,750 688,862 1,656,229 26,838 90,735 2,484,000 185,736 161,772 832,985 21,854 342,576 57,598 Total operating expenses 2,345,091 2,510,838 276,471 1,016,611 400,174 Operating income (loss) (491,939) 541,102 (21,499) 193,139 (400,174) Nonoperating revenues (expenses): Interest income 220 Interest expense (86,880) Total nonoperating revenues (expenses) (86,660) Incorne (loss) before transfers (578,599) 541,102 (21,499) 193,139 (400,174) Transfers in 4,211 Transfers out - (100,000) (100,000) (125,000) (75,000) Change in net assets (574,388) 441,102 (121,499) 68,139 (475,174) Net assets, beginning of year 514,792 1,088,744 492,111 1,228,694 I,953;665 Net assets (deficit), end of year $ (59,596) 1,529,846 370,612 1,296,833 1,478,491 106 General Motor Equipment Unemployment Telecorrmnunications Accounting Vehicle Replacement Insurance Revolving Services Services Reserve Reserve Total 889,875 1,853.015 - - 8,997,696 115,008 889,875 55,626 541,087 293,129 207,563 348,755 (348,755) 1,853,015 - - 9,112,704 413,273 980,196 175,976 13,103 11,790 23.654 1,978,193 7,007,307 279,082 748,650 1,569,445 36,757 11,790 9,264,582 141,225 283,570 (36,757) (11,790) (151,878) 220 (86,880) (86,660) (348,755) 141,225 283,570 (36,757) (11,790) (238,538) (348, 755) 683,620 334,865 4,211 (102,653) - - (175,762) (678,415) 38,572 283,570 (36,757) (187,552) (912,742) 441,645 1,946,160 562,900 187,552 9,099,883 480,217 2,229,730 526,143 - 8,187,141 107 CITY OF NATIONAL CITY Combining Statement of Cash Flows Internal Service Funds For the Year Ended June 30, 201 1 Information Office Facilities Liability General Systems Equipment Maintenance Insurance Services Maintenance Depreciation Cash flows from operating activities: Cash received from customers/other funds $ 1,853,015 2,937,987 256,105 1,209,750 Cash payments to suppliers (1,728.505) (2,272,527) (183,470) (767,366) (287,126) Cash payments for general and administrative (690,939) (28,010) (95.284) (159,131) Cash received from (payments to) other 137 114,871 Net cash provided (used) by operating activities Cash flows from capital and related financing activities: Acquisition or disposal of capital assets Payment on lease payable Interest paid (566.292) 752.321 (22,649) 283,253 (287,126) (1,137..621) (21.381) (86880) (109,755) Net cash provided (used) by capital and related financing activities (1,245,882) - - (109,755) Cash flows from non -capital financing activities: Cash received from other funds 4,211 - - Cash paid to other funds (100,000) (1(10,000) (125,000) (75,000) Net cash provided (used) by non -capital financing activities 4,211 (100,000) (100,000) (125,000) (75,000) Cash flows from investing activities Interest income 220 - - - Net cash provided (used) by investing activities 220 Net increase (decrease) in cash and cash equivalents Cash and investments: Beginning of year End of year (1,807,743) 652,321 (122,649) 158,253 (471,881) 2,001,094 $ 193,351 7,066,242 491,045 1,085,711 1,877,507 7,718,563 368,396 1,243,964 1,405,626 Cash flows from operating activities: Operating income (loss) $ (491,939) 541,102 (21,499) 193;139 (400,174) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation - - - 21,854 57,598 Changes in current assets and liabilities: Accounts receivable Inventories 3,521 - - Prepaid items and deposits (43,101) - - Accounts payable and accrued liabilities (29,175) (18,525) (1,255) 65,619 55,450 Salaries payable 2,324 (313) (524) 1,587 - Compensated absences (4,401) (861) (4,025) 1,054 - Self-insurance claims payable 230,000 - Total adjustments 918 1,133 (74,353) 211,219 (1,150) 90,114 113,048 Net cash provided (used) by operating activities $ (566,292) 752,321 (22,649) 283,253 (287,126) 108 General Motor Fquipment Unemployment .._.oiamunications Accounting Vehicle Replacement Insurance Revolving Services Services Reserve Reserve Total 889,875 1,853.015 - 8,999,747 (306,541) (204,927) (961,362) (13,465) (11,790) (6,737,079) (55,604) (570,796) (420,437) - - (2,020,201) - - - 115,008 (362,145) 114,152 (102, 653) (102,653) 471,216 (13,465) 1.931 (11,790) 357,475 (1,245,445) (21,381) (86,880) 1.931 - (1,353,706) 4,211 (175,762) (678,415) (175,762) (674,204) 220 220 (362,145) 11,499 473,147 (13,465) (187,552) (1,670,215) 722,290 527,883 1,179,324 266,038 187,552 15,404,686 360,145 539,382 1,652,471 252,573 - 13,734,471 (348,755) 141,225 283,570 (36,757) (11,790) (151,878) 175,976 23,654 - 279,082 (13,412) 2,636 18,834 22 (1,544) (465) (28,165) (6,699) (362) 2,051 3.521 (43,101) 79,810 1,087 (43,097) 230,000 (13,390) (27,073) 187,646 23,292 - 509,353 (362,145) 114,152 471,216 (13,465) (11,790) 357,475 109 FIDUCIARY FUNDS AC,LiN'i: c FUNDS: Cobra Insurance Fund This fund is used to account for amounts collected by the City from retirees to pay their health insurance premiums. Miscellaneous Deposits Fund This fund is used to account for miscellaneous deposits collected by the City. 110 CITY OF NATIONAL CITY Statement of Changes in Assets and Liabilities Agency Funds For the Year Ended June 30, 2011 Balance Balance July 1, 2010 Additions Deletions June 30, 2011 COBRA INSURANCE FUND Assets: Cash and investments $ 30,648 470,907 (478,613) 22,942 Accounts receivable 1,768 (1,768) Total assets $ 32,416 470,907 (480,381) 22,942 Liabilities: Accounts payable Total liabilities $ 32,416 957,443 (966,917) 22,942 $ 32,416 957,443 (966,917) 22,942 Balance Balance July 1, 2010 Additions Deletions June 30, 2011 MISCELLANEOUS DEPOSITS FUND Assets: Cash and investments $ 653,727 559,072 (272,065) 940,734 Total assets $ 653,727 559,072 (272,065) 940,734 Liabilities: Depostis payable $ 653,727 733,892 (446,885) 940,734 Total liabilities $ 653,727 733,892 (446,885) 940,734 TOTAL AGENCY FUNDS Assets: Cash and investments Accounts receivable Total assets Balance Balance July 1, 2010 Additions Deletions June 30, 2011 $ 684,375 1,768 1,029,979 (750,678) 963,676 (1,768) $ 686,143 1,029,979 (752,446) 963,676 Liabilities: Accounts payable $ 32,416 957,443 (966,917) 22,942 Depostis payable 653,727 733,892 (446,885) 940,734 Total liabilities $ 686,143 1,691,335 (1,413,802) 963,676 111 (This page intentionally left blank) 112 • • ITEM #22 BACKUP AND THE RESOLUTION FOR THIS ITEM WILL BE DISTRIBUTED TOMORROW, JANUARY 20, 2012 CITY OF NATIONAL CITY, CALIFORNIA COMMUNITY DEVELOPMENT COMMISSION AGENDA STATEMENT MEETING DATE: January 24, 2012 AGENDA ITEM NO. 22 EM TITLE: A resolution of the Community Development Commission of the City of National City adopting the January 24, 2012 amendment to the Enforceable Obligations Payment Schedule last amended November 15, 2011. PREPARED BY: Colby Young 07 PHONE: x4297 EXPLANATION: The 2011 California Redevelopment Legislation (AB X1 26) was approved by the State Legislature on June 15, 2011 and signed into law by the Governor on June 28, 2011. This Legislation, which provides for the statewide dissolution of redevelopment agencies, requires all agencies, including the CDC, to file an Enforceable Obligations Payment Schedule showing required payments through December 31, 2011. The CDC first approved its Enforceable Obligations Payment Schedule on August 24, 2011 and amended it subsequently in September, October, and November to remain current with contractual obligations. The attached Enforceable Obligations Payment Schedule amends the Enforceable Obligations Payment Schedule approved by City Council on November 15, 2011. DEPARTMENT: R-• - .pment/S•=. al Projects APPROVED FINANCIAL STATEMENT: ACCOUNT NO. ENVIRONMENTAL REVIEW: Not applicable ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: Finance STAFF RECOMMENDATION: Adopt the resolution BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: 1. Proposed Amended Enforceable Obligations Payment Schedule CITY OF NATIONAL CITY, CALIFORNIA COMMUNITY DEVELOPMENT COMMISSION AGENDA STATEMENT MEETING DATE: January 24, 2012 AGENDA ITEM NO.23 EM TITLE: A resolution of the Community Development Commission of the City of National City adopting the Enforceable Obligations Payment Schedule for the time period of January 1, 2012 through June 30, 2012.. PREPARED BY: Colby Young PHONE: x4297 DEPARTMENT: R ment/Special Projects APPROVED BY: EXPLANATION: The 2011 California Redevelopment Legislation (AB X1 26) was approved by the State Legislature on June 15, 2011 and signed into law by the Governor on June 28, 2011. This Legislation, which provides for the statewide dissolution of redevelopment agencies, requires all agencies, including the CDC, to file an Enforceable Obligations Payment Schedule showing required payments through December 31, 2011. As part of the recent California Supreme Court ruling upholding AB X1 26, certain dates and deadlines for performance of obligations were affected. As a result, the CDC now seeks to adopt an Enforceable Obligations Payment Schedule for the time period of January 1, 2012 through the end of June 2012. The CDC first approved an Enforceable Obligations Payment Schedule on August 24, 2011 and amended it subsequently in September, October, and November, for the time period of August through December 2011, to remain current with contractual obligations. This proposed January Enforceable Obligations Payment Schedule includes all payees and payment amounts necessary to fill all CDC obligations for the time period of January 1, 2012 through June 30, 2012. FINANCIAL STATEMENT: ACCOUNT NO. ENVIRONMENTAL REVIEW: Not applicable ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: Finance STAFF RECOMMENDATION: Adopt the resolution BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: 1. Proposed Amended Enforceable Obligations Payment Schedule RESOLUTION 2012 — RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY ADOPTING THE ENFORCEABLE OBLIGATIONS PAYMENT SCHEDULE FOR THE TIME PERIOD OF JANUARY 1, 2012 THROUGH JUNE 30, 2012 WHEREAS, the Community Development Commission of the City of National City ("CDC") is a public body, corporate, politic, formed, organized, and exercising its powers and existing pursuant to the California Community Redevelopment Law, Health and Safety Code Section 33000, et seq., (the "CRL"), and specifically formed by the City Council of the City of National City; and WHEREAS, continued redevelopment to eliminate blight, improve public facilities and infrastructure, renovate and construct affordable housing, and enter into partnerships with private industries to create jobs and expand the local economy is vital to the health, safety and welfare of the City; and WHEREAS, Parts 1.8, 1.85 and 1.9 of Division 24 of the CRL were added by Assembly Bill x1 26 and Assembly Bill x1 27 (together the "2011 Redevelopment Legislation"), which laws purported to become effective immediately; and WHEREAS, the 2011 Redevelopment Legislation is a part of multiple trailer bills to the Fiscal Year 2011-2012 California budget bills that were approved by both houses of the State Legislature on June 15, 2011, and signed by the Governor on June 28, 2011; and WHEREAS, Part 1.85 of the CRL (the "Dissolution Act") added by the 2011 Redevelopment Legislation ("Part 1.85") provides for the statewide dissolution of all redevelopment agencies, including the CDC (but not dissolution of the housing authority thereof), as of October 1, 2011, and provides that, thereafter, a successor agency will administer the enforceable obligations of the redevelopment agency of the CDC and otherwise wind up the CDC's affairs as a redevelopment agency, all subject to the review and approval of an oversight committee; and WHEREAS, Part 1.8 of the CRL added by the Redevelopment Legislation ("Part 1.8") provides for the restriction of activities and authority of the CDC in the interim period prior to dissolution to certain "enforceable obligations" and to actions required for the general winding up of affairs, preservation of assets, and certain other goals delineated in Part 1.8; and WHEREAS, as part of this wind up process, all redevelopment agencies are required to file a schedule of those "enforceable obligations" that require payments to be made through the end of the calendar year 2011 ("Enforceable Obligations Payment Schedule"); and WHEREAS, the dissolution of the CDC would be detrimental to the health, safety and economic well-being of the residents of the City, and would cause irreparable harm to the community because, among other reasons, the redevelopment activities and projects made possible, implemented and funded by the CDC are highly significant and of enduring benefit to the community and the City and are a critical component of the City's future; and WHEREAS, on July 18, 2011, the California Redevelopment Association, League of California Cities, City of Union City, City of San Jose, and John F. Shirey filed a petition for Writ of Mandate; Application for Temporary Stay, and supporting memorandum and declarations with the Supreme Court of the State of California (the "Petition"); and tr ,rixi+ Resolution No. 2012 — January 24, 2012 Page Two WHEREAS, on August 11, 2011, the California Supreme Court agreed to review the Petition challenging the constitutionality of the 2011 Redevelopment Legislation and ordered a stay (the "Supreme Court Stay") relative to specified portions of the2011 Redevelopment Legislation; and WHEREAS, on August 17, 2011, the California Supreme Court revised the Supreme Court Stay; and WHEREAS, the Supreme Court Stay postponed certain provisions of the 2011 Redevelopment Legislation indefinitely, but left in place provisions prohibiting redevelopment agencies from making any payments after the date that is sixty (60) days from the effective date of the Dissolution Act, other than debt service payments and payments listed on an adopted Enforceable Obligation Payment Schedule; and WHEREAS, on August 24, 2011, the CDC approved its Enforceable Obligation Payment Schedule ("EOPS") for the time period through December 31, 2011; and WHEREAS, on December 29, 2011, the California Supreme Court issued its ruling which upheld ABx1 26 as valid and invalidated ABx1 27; and WHEREAS, subject to the contingencies and reservations set forth herein, the CDC desires to adopt an Enforceable Obligations Payment Schedule for the time period of January 1, 2012 through June 30, 2012, and to amend it from time to time as necessary; and WHEREAS, the CDC, by adoption of this Resolution, does not represent, disclaim, or take any position whatsoever on the issue of the validity of the 2011 Redevelopment Legislation, but rather the CDC seeks to comply with the Constitution and the laws of the State of California, including the 2011 Redevelopment Legislation, in order to preserve the ability of the CDC to continue to operate and perform its obligations and thereby benefit the community; and NOW, THEREFORE, BE IT RESOLVED by the Community Development Commission of the City of National City as follows: Section 1. Section 2. The foregoing Recitals are true and correct, and incorporated into this Resolution by this reference, and constitute a material part of this Resolution. Pursuant to California Health and Safety Code Section 34169, the CDC hereby adopts the Enforceable Obligations Payment Schedule attached hereto as Exhibit "A". The attached Enforceable Obligations Payment Schedule is that "Enforceable Obligations Payment Schedule" referred to in Health and Safety Code Section 34169(g) and shall be interpreted and applied in all respects in accordance with such section and the California Redevelopment Law, to the fullest extent permitted by law. However, the Enforceable Obligations Payment Schedule shall only be applicable to and binding on the CDC to the extent that Part 1.8 of the 2011 Resolution No. 2012 — January 24, 2012 Page Three Section 3. Section 4. Section 5. Redevelopment Legislation is applicable to the CDC. To the extent that Part 1.8 is not applicable to the CDC for any reason, the Enforceable Obligations Payment Schedule shall not be binding on or control the CDC's payments on or performance of its obligations. The Executive Director, or designee, is hereby authorized and directed to: (i) post the Enforceable Obligations Payment Schedule on the City's website; (ii) notify the County Auditor -Controller, the State Controller and the State Department of Finance concerning this Resolution, in accordance with the applicable provisions of the California Community Redevelopment Law; and (iii) take such other actions and execute such other documents as are necessary to effectuate the intent of this Resolution and to implement the Enforceable Obligation Payment Schedule on behalf of the CDC. The Executive Director of the CDC is hereby authorized and directed to evaluate potential amendments to the Enforceable Obligations Payment Schedule from time to time as may be appropriate, and to recommend to the Board of the CDC the adoption of those amendments necessary for the continued payment on and performance of enforceable obligations. This Resolution shall in no way be construed as requiring the CDC to abide by the 2011 Redevelopment Legislation in the event it is found unconstitutional or otherwise legally invalid in whole or in part, nor shall this Resolution effect or give rise to any waiver of right or remedies the CDC may have, whether in law or in equity, to challenge the 2011 Redevelopment Legislation. This Resolution shall not be construed as the City's willing acceptance of, or concurrence with the 2011 Redevelopment Legislation, either ABx1 26 or ABx1 27; nor does this Resolution evidence any assertion or belief whatsoever on the part of the City that the 2011 Redevelopment Legislation is/are constitutional or lawful. Section 6. The City Clerk shall certify to the adoption of this Resolution, which shall take effect upon the date of its adoption. PASSED and ADOPTED this 24th day of January, 2012. ATTEST: Brad Raulston, Secretary Ron Morrison, Chairman APPROVED AS TO FORM: Claudia Gacitua Silva CDC General Counsel CITY OF NATIONAL CITY, CALIFORNIA COMMUNITY DEVELOPMENT COMMISSION AGENDA STATEMENT MEETING DATE: January 24, 2012 AGENDA ITEM NO. 24 EM TITLE: A resolution of the Community Development Commission of the City of National City adopting the January 24, 2012 amendment to the Draft Initial Recognized Obligations Payment Schedule. PREPARED BY: Colby Young Cy PHONE: x4297 DEPARTMENT: Reeeaent/Special Projects APPROVED BY: EXPLANATION: The 2011 California Redevelopment Legislation (AB X1 26) was approved by the State Legislature on June 15, 2011 and signed into law by the Governor on June 28, 2011. This Legislation, which provides for the statewide dissolution of redevelopment agencies, requires all agencies, including the CDC, to file an Initial Recognized Obligations Payment Schedule showing required payments from January -June, 2012. The CDC approved its Draft Initial Recognized Obligations Payment Schedule on September 27, 2011. The attached schedule updates the Draft Initial Recognized Obligations Payment Schedule to include all payees and payment amounts necessary to fulfill all CDC obligations. FINANCIAL STATEMENT: ACCOUNT NO. ENVIRONMENTAL REVIEW: Not applicable ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: Finance STAFF RECOMMENDATION: Adopt the resolution BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: 1. Proposed Amended Draft Initial Recognized Obligations Payment Schedule RESOLUTION 2012 — RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY ADOPTING THE JANUARY 24, 2012 AMENDMENT TO THE DRAFT INITIAL RECOGNIZED OBLIGATIONS PAYMENT SCHEDULE WHEREAS, the Community Development Commission of -the City of National City ("CDC") is a public body, corporate, politic, formed, organized, and exercising its powers and existing pursuant to the California Community Redevelopment Law, Health and Safety Code Section 33000, et seq., (the "CRL"), and specifically formed by the City Council of the City of National City; and WHEREAS, continued redevelopment to eliminate blight, improve public facilities and infrastructure, renovate and construct affordable housing, and enter into partnerships with private industries to create jobs and expand the local economy is vital to the health, safety and welfare of the City; and WHEREAS, Parts 1.8, 1.85 and 1.9 of Division 24 of the CRL were added by Assembly Bill x1 26 and Assembly Bill x1 27 (together the "2011 Redevelopment Legislation"), which laws purported to become effective immediately; and WHEREAS, the 2011 Redevelopment Legislation is a part of multiple trailer bills to the Fiscal Year 2011-2012 California budget bills that were approved by both houses of the State Legislature on June 15, 2011, and signed by the Governor on June 28, 2011; and WHEREAS, part 1.85 of the CRL (the "Dissolution. Act") added by the 2011 Redevelopment Legislation ("Part 1.85") provides for the statewide dissolution of all redevelopment agencies, including the CDC (but not dissolution of the housing authority thereof), as of October 1, 2011, and provides that, thereafter, a successor agency will administer the enforceable obligations of the redevelopment agency of the CDC and otherwise wind up the CDC's affairs as a redevelopment agency, all subject to the review and approval of an oversight committee; and WHEREAS, as .part of this wind up process, all redevelopment agencies are required to prepare a preliminary draft of the initial recognized obligation payment schedule listing payments to be made January 2012 through the end of June 2012; and WHEREAS, the dissolution of the CDC would be detrimental to the health, safety and economic well-being of the residents of the City, and would cause irreparable harm to the community because, among other reasons, the redevelopment activities and projects made possible, implemented and funded by the CDC are highly significant and of enduring benefit to the community and the City and are a critical component of the City's future; and WHEREAS, on July 18, 2011, the California Redevelopment Association, League of California Cities, City of Union City, City of San Jose, and John F. Shirey filed a petition for Writ of Mandate; Application for Temporary Stay, and supporting memorandum and declarations with the Supreme Court of the State of California (the "Petition"); and WHEREAS, on August 11, 2011, the California Supreme Court agreed to review the Petition challenging the constitutionality of the 2011 Redevelopment. Legislation and ordered a stay (the "Supreme Court Stay") relative to specified portions of the2011 Redevelopment Legislation; and Resolution No. 2012 — January 24, 2012 Page Two WHEREAS, on August 17, 2011, the California Supreme Court revised the Supreme Court Stay; and WHEREAS, the Supreme Court Stay postponed certain provisions of the 2011 Redevelopment Legislation indefinitely, but left in place provisions requiring a preliminary draft of the initial recognized obligation payment schedule; and WHEREAS, on September 27, 2011, the CDC approved its preliminary draft of the Initial Recognized Obligation Payment Schedule CROPS"); and WHEREAS, on December 29, 2011, the California Supreme Court issued is ruling which upheld ABx1 26 as valid and invalidated ABx1 27; and WHEREAS, subject to the contingencies and reservations set forth herein, the CDC desires to amend the preliminary draft of the Initial Recognized Obligation Payment Schedule; and WHEREAS, the CDC, by adoption of this Resolution, does not represent, disclaim, or take any position whatsoever on the issue of the validity of the 2011 Redevelopment Legislation, but rather the CDC seeks to comply with the Constitution and the laws of the State of California, including the 2011 Redevelopment Legislation, in order to preserve the ability of the CDC to continue to operate and perform its obligations and thereby benefit the community. NOW, THEREFORE, BE IT RESOLVED by the Community Development Commission of the City of National City as follows: Section 1. The foregoing Recitals are true and correct, and incorporated into this Resolution by this reference, and constitute a material part of this Resolution. Section 2. Pursuant to Califomia Health and Safety Code Section 34169, the CDC hereby amends the preliminary draft of the initial Recognized Obligation Payment Schedule. The preliminary draft of the Initial Recognized Obligation Payment Schedule is that which is referred to in Health and Safety Code Section 34169(h), and shall be interpreted and applied in all respects in accordance with such section and the California Redevelopment Law, to the fullest extent permitted by law. However, it is applicable to and binding on the CDC only to the extent that Part 1.8 of the 2011 Redevelopment Legislation is applicable to the CDC. Section 3. The Executive Director, or designee, is hereby authorized and directed to: (i) post the amended preliminary draft of the Initial Recognized Obligation Payment Schedule on the City's website; (ii) notify the County Auditor - Controller, the State Controller and the State Department of Finance concerning the posting of such document; and (iii) take such other actions and execute such other documents as are necessary to effectuate the intent of this Resolution. Resolution No. 2012 - January 24, 2012 Page Three Section 4. This Resolution shall in no way be construed as requiring the CDC to abide by the 2011 Redevelopment Legislation in the event either, or both, bills are found unconstitutional or otherwise legally invalid in whole or in part, nor shall this Resolution effect or give rise to any waiver of right or remedies the CDC may have, whether in law or in equity, to challenge the 2011 Redevelopment Legislation. This Resolution shall not be construed as the CDC's willing acceptance of, or concurrence with the 2011 Redevelopment Legislation, either ABx1 26 or ABx1 27; nor does this Resolution evidence any assertion or belief whatsoever on the part of the CDC that the 2011 Redevelopment Legislation is/are constitutional or lawful. Section 5. The Secretary shall certify to the adoption of this Resolution, which shall take effect upon the date of its adoption. PASSED and ADOPTED this 24th day of January, 2012. ATTEST: Ron Morrison, Chairman Brad Raulston, Secretary APPROVED AS TO FORM: Claudia Gacitua Silva CDC General Counsel • ETING DATE: CITY OF NATIONAL CITY, CALIFORNIA COMMUNITY DEVELOPMENT COMMISSION COUNCIL AGENDA STATEMENT January24 , 2012 AGENDA ITEM NO. 25 ITEM TITLE: Resolution of the Community Development Commission of the City of National City authorizing its Chairman to execute a Subordination Agreement with Barbara J. Mellor allowing a new mortgage not -to - exceed $150,000 to be and remain a lien prior and superior to a First -Time Home Buyer assistance loan of $18,926 issued by the CDC on a townhome unit located at 109 E. 9th Street in National City PREPARED BY: Carlos Aguirre, Comm. Dev. Specialist II PHONE:.619 336-4391' EXPLANATION: DEPARTMENT: • minstrative Services APPROVED BY: The CDC made a loan for $18,926 from the Low -Moderate Housing Fund to Barbara J. Mellor (the "Owner") and Jason H. Mellor (together as "Borrowers") on May 29, 2002 to assist the eligible household in the purchase of a new townhome located at 109 E. 9th St. in National City. The CDC loan is fully deferred until May 30, 2032 as long as the residence is occupied by the Borrowers and the Borrowers perform under all other Covenants and Agreements contained in the Deed of Trust of the CDC loan. The Borrowers are interested in refinancing the current debt on the property and have been approved for a new loan with Wells Fargo Bank. The new lender is requiring that the CDC execute a subordination agreement allowing the new loan to hold superior position to the CDC -issued loan. The CDC loan will maintain second lien position on the property. The purpose of the refinance is to allow the Borrowers to reduce the interest rate paid to a fixed rate of 3.875% and there will be no cash proceeds to the Borrowers through the refinance. Staff has ,o satisfactorily reviewed the a property valuation report, preliminary title report, new loan note terms, and sing statement. FINANCIAL STATEMENT: APPROVED: Finance ACCOUNT NO. APPROVED: MIS There is no fiscal impact associated with this request. The existing CDC loan is an "enforceable obligation" entered into before January 1, 2011. ENVIRONMENTAL REVIEW: The subordination agreement is exempt from environmental review. ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Staff recommends the adoption of a resolution to execute the Subordination Agreement. BOARD / COMMISSION RECOMMENDATION: There is no board or commission recommendation required for the Subordination Agreement. TACHMENTS: 1. :Subordination Agreement between CDC and Owner 2. Draft Deed of Trust for the loan with Wells Fargo Bank! RESOLUTION 2012 — RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY ("CDC") AUTHORIZING THE CHAIRMAN TO EXECUTE A SUBORDINATION AGREEMENT WITH BARBARA J. MELLOR AND JASON H. MELLOR ALLOWING A NEW MORTGAGE NOT -TO -EXCEED $150,000 TO BE AND REMAIN A LIEN PRIOR AND SUPERIOR TO A FIRST-TIME HOMEBUYER ASSISTANCE LOAN OF $18,926 ISSUED BY THE CDC ON A TOWNHOME UNIT LOCATED AT 109 EAST 9TH STREET WHEREAS, the Community Development Commission of the City of National City ("CDC") made a loan of $18,926 ("CDC Loan") issued from the Low Moderate Income Fund to Barbara J. Mellor and Jason H. Mellor ("Borrowers") on May 29, 2002, to assist an eligible household in the purchase of a townhome unit located at 109 East 9th Street, National City, California (the "Property"); and WHEREAS, the existing CDC Loan is an Enforceable Obligation entered into before January 1, 2011; and WHEREAS, the CDC Loan is fully deferred until 2032, as long as the residence is occupied by the Borrowers and the Borrowers perform under all other Covenants and Agreements contained in the Deed of Trust of the CDC Loan; and WHEREAS, the Borrowers are interested in refinancing the debt on the property and have been approved for a new loan with Wells Fargo Home Mortgage ("Lender") that requires the CDC to execute a Subordination Agreement allowing the new loan to hold superior position to the CDC Loan that will maintain second lien position on the Property; and WHEREAS, the purpose of the refinance is to allow the Borrowers to reduce the interest rate paid on their current mortgage to 3.875% with no cash proceeds to the Borrowers through the escrow tied to the refinance; and WHEREAS, maintaining a second lien position pursuant to the Borrowers refinancing to a lower interest rate without cash -out acts to further preserve and secure the CDC interest in the Property. NOW, THEREFORE, BE IT RESOLVED that the Community Development Commission of the City of National City hereby authorizes its Chairman to execute a Subordination Agreement with Barbara J. Mellor and Jason H. Mellor in favor of a new First Trust Deed with Wells Fargo Home Mortgage as beneficiary. After being recorded by the County of San Diego, said Subordination Agreement will be on file in the office of the City Clerk. PASSED and ADOPTED this 24th day of January, 2012. Ron Morrison, Chairman ATTEST: APPROVED AS TO FORM: Brad Raulston, Secretary Claudia Gacitua Silva CDC General Counsel Attachment No. 1 ,1?CORDING REQUESTED BY 1COR TITLE COMPANY OF CALIFORNIA AND WHEN RECORDED MAIL TO: ORDER NO.. 00028587-014-AM1 SPACE ABOVE THIS LINE FOR RECORDER'S USE SUBORDINATION AGREEMENT NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT. THIS AGREEMENT, made this November 21, 201 by Barbara J. Mellor owner of the land hereinafter described and hereinafter referred to as "Owner", and Community Development Commission of the City of National City present owner and holder of the deed of trust and note first hereinafter described and hereinafter referred to as 'Beneficiary". W ITN ESSETI I THAT WHEREAS, Owner has executed a deed of trust, dated May 29, 2002 to Community Development Commission of the City of National City as trustee, covering: Lot 5, inclusive, in the City of National City, County of San Diego, State of California, according to Map thereof No. 14245, filed in the Office of the County Recorder of San Diego County, July 6, 2001. As more completely described in exhibit "A" attached hereto and made a part hereof. to secure a note in the sum of $18,926.00 , dated Mav 29, 2002 in favor of Community Development Commission of the city of National City, which deed of trust was recorded May 31, 2002 as Instrument No. 02-466201, of Official Records of said county; and WHEREAS, Owner has executed, or is about to execute, a deed of trust and note in the sum of S150,000.00 , dated in favor of Wells Fargo Home Mortgage hereinafter referred to as "Lender", payable with interest and upon the terms and conditions described therein, which deed of trust is to be recorded concurrently herewith; and WHEREAS, it is a condition precedent to obtaining said loan that said deed of trust last above mentioned shall unconditionally be and remain at all times a lien or charge upon the land hcreinbeforc described, prior and superior to the lien or charge of the deed of trust first above mentioned; and WHEREAS, Lender is willing to make said loan provided the deed of trust securing the same is a lien or charge upon the above described property prior and superior to the lien or charge of the deed of trust first above mentioned and provided that Beneficiary will specifically and unconditionally subordinate the lien or charge of the deed of trust first above mentioned to the lien or charge of the deed of trust in favor or Lender; and Page 1 of 4 (1]iub.:la Attachment No. 1 Omer No.: 00028587-014-AM I WHEREAS, it is to the mutual benefit of the pasties hereto that Lender make such loan to Owner; and Beneficiary is willing that the deed of trust securing the same shall, when recorded, constitute a lien or charge upon said land which is unconditionally prior and superior to the hen or charge of the deed of trust first above mentioned. NOW THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and other valuable consideration, the receipt and sufficiency of which consideration is hereby acknowledged, and in order to induce Lender to make the loan above referred to, it is hereby declared, understood and agreed as follows: (1) That said deed of trust securing said note in favor of Lender, and any renewals or extensions thereof, shall unconditionally be and remain at all times a lien or charge on the property therein described, prior and superior to the lien or charge of the deed of trust first above mentioned. (2) That Lender would not make its loan above described without this subordination agreement. (3) That this agreement shall be the whole and only agreement with regard to the subordination of the lien or charge of the deed of trust first above mentioned to the lien or charge of the deed of trust in favor of Lender above referred to and shall supersede and cancel, but only insofar as would affect the priority between the deeds of trust hereinbefore specifically described, any prior agreement as to such subordination including, but not limited to, those provisions, if any, contained in the deed of trust first above mentioned, which provide for the subordination of the lien or charge thereof to another deed or deeds of trust or to another mortgage or mortgages. Beneficiary declares, agrees and acknowledges that {a) He/She consents to and approves (i) all provisions of the note and deed of trust in favor of Lender above referred to, and (ii) all agreements, including but not limited to any loan or escrow agreements; between Owner and Lender for the disbursement of the proceeds of Lender's loan; Lender in making disbursements pursuant to any such agreement is under no obligation or duty to, nor has Lender represented that it will, see to the application of such proceeds by the person or persons to whom Lender disburses such proceeds and any application or use of such proceeds for purposes other than those provided for in such agreement or agreements shall not defeat the subordination herein made in whole or in part; Fie/She intentionally and unconditionally waives, relinquishes and subordinates the lien or charge of the deed of trust first above mentioned in favor of the lien or charge upon said land of the deed of trust in favor of Lender above referred to and understands that in reliance upon, and in consideration of, this waiver, relinquishment and subordination specific loans and advances are being and will he entered into which would not be made or entered into but for said reliance upon this waiver, relinquishment and subordination; and (d) An endorsement has been placed upon the note secured by the deed of trust first above mentioned that said deed of trust has by this instrument been subordinated to the lien or charge of the deed of trust in favor of Lender above referred to. NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH ALLOWS THE PERSON OBLIGATED ON YOUR REAL PROPERTY SECURITY TO OBTAIN A LOAN A PORTION OF WHICH MAY BE EXPENDED FOR OTHER PURPOSES THAN IMPROVEMENT OF TIIE LAND. (b) (c) Community Development Commission of the City of National City Authorized Signor: Barbara J. Maltor Jason Hugh Mellor Beneficiary Owner (All signatures must be acknowledged) Form Furnished By Ticor Title Company of California Page 2 of 4 ca,ub,rat, Attachment No. 1 'a'DED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, THE t iJh WITH THEIR ATTORNEYS WITH RESPECT THERETO. (SUBORDINATION FORM "A") Deed of Trust to New Deed of Trust Page 3 of 4 Attachment No. 1 O.-dei No.: 0JO28587-014-AM1 STATE OF CALIFORNIA COUNTY OF SAN DIEGO On } SS: before me, FOR NOTARY SEAL OR STAMP a Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s)whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies) and that by his/her/their signature(s)on the instrument the person(s), or the entity upon behalf of' which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature STATE OF CALIFORNIA COUNTY OF On } SS: before me. FOR NOTARY SEAL OR STAMP a Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s)whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies) and that by his/her/their signature(s)on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is truc and correct. WITNESS my hand and official seal. Signature Page 4 of 4 2011-Dec-13 12D9 PM we'Is Fargo 619-498-2696 35/39 Attachment No. 2 RECORDING REQUESTED BY: WHEN RECORDED MAIL TO: E I A T SPACE ABOVE THIS LINE FVR RECORwER'5 USE APN: DEED OE TRUST AND ASSIGNMENT OF RENTS This DEED OF TRUST, made _, between We, Husband And Wife promise to pay to her successors and(cr assigns, herein called address is and herein called her successors and/or assigns, herein called BENEFICIARY, Trustor, whose TRUSTEE, and WITNESSETHt That SALE, that property In Trustor IRREVOCABLY GRANTS, TRANSFERS AND ASSIGNS TO TRUSTEE IN TRUST, WITH POWER OF the county of , State of California, described as: VACANT LOT APN : ADDRESS: LEGAL DESCRIPTION: TOGETHER WITH the rents, issues and profits thereof, SUBJECT, HOWEVER, to the right, power and authority hereinafter glen to and conferred upon Beneficiary by paragraph (10) of the provisions Incorporated herein by reference to collect and apply such rents, Issues and profits. For the Purpona of Securing: (1) Performance of each agreement of Trustor incorporated by reference or contained herein, (2) Payment of the indebtedness evidenced by one promissory note of even date herewith, and any extension or renewal thereof, In the PRINCIPAL SUM Or $ executed by Trustor in favor of beneficiary or order. (3) Payment of such further sums as the then record owner of said property hereafter may borrow from Berefdary, when evidenced by another not (or notes) reciting it so secured. The following Is a copy of provisions (1) to (14), Inclusive, of the fictitious Deed of Trust, recorded In each county In California, as stated in the foregoing Deed of Trust and incorporated by reference In said Deed of Trust as being a part thereof as set forth at length therein. To protect the Security of this Deed of Trust, Trustor Agrees: (1) To keep said property ,n coed condition and repair; not b remove or demolish any binding thereon; to complete or restore promptly and In good and workmanlike manner any building welch may be constructed, damaged or destroyed thereon and to pay when due all claims for labor performed and materials furnished therefor; to comply with all laws affecting said property or requiring any alterations or Improvements to be made thereon; not to comet or permit waste thereof; nct to commit, suffer or permit any act upon said property'.n violation of law; to cultivate, Irrigate, fert'ilze, fumigate, prune and do all ether acts which from the character or use of sald property may be reasonably necessary, the specific enumerations herein not excluding the general, (2) To provide, maintain and deliver to Beneficiary fire !nslrance satisfactory to and with loss payable to Beneficiary. The amount collected under any fire or cther Insurance policy may be applied by Beneficiary upon any Indebtedness secured hereby and in such order as Beneficiary may determine, or at option of Beneficiary the entire amount so collected or any part thereof may be released to Trustor. Such appBcation or release shall not cure or waive any default or notice of default hereunder or Invalidate any act done pursuant to such notice. (3) To appear In end defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficlmy or Trustee; end to pay all costs and expenses, Including cost of evidence of title and artorney's fees In a reasonable sum, In any such action or proceeding in which Beneficiary or Trustee may appear, and In any suit Srought by Beneficiary to foreclose this Deed. Deed of Trust and Adgnmen: or Rents 12/13/2011 1:28PM (GMT-06:00) 2011-Dec-13 12:09 PM wells forgo 619-498-2696 37f39 Attachment No. 2 ,4) To pay: at least ten days before delinquency all taxes and assessments affecting said property, including assessments on ,.p,;crtenant water stock; when due, all encumbrances, charges and liens, with interest, on said property or any part thereof, which appear to be prior or superior hereto; all cost, fees and expenses of this Trust. Should Truster fall to make any payment or to do any act as herein provided, the Beneficiary or Trustee, but without obligation so to do, without notice to or demand upon Truster, and without releasing Tmstor from any obligation hereof, may: make or do the same In such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized L enter upon said property for such purposes; appear In and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; pay, purchase, contest or compromise any encumbrance, charge or Ilen which In the Judgment of either appears to be prior or superior hereto; and, In exercising any suet powers, pay necessary expenses, employ counsel and pay his reasonable fees. (5) To pay immediately and without demand all sums so expended by Beneficiary or Trustee, with interest from date of expenditure et the amount allowed by law in effect at the date hereof, end to pay for any statement provided for by law In effect at the date hereof regarding the obligation secured hereby any amount demanded by the Beneficiary not to exceed the maximum allowed by law et the tree when said statement Is demanded. (6) That any award of damages In connection with any condemnation for public use of or injury to sald property or any part thereof is hereby assigned and shall be pald to Beneficiary who may apply or release such monies received by him In the same manner and with the same effect as above provided for disposition of proceeds of the or other insurence. (7) That by accepting payment of any sum secured hereby after Its due date, Beneficiary does net waive ids right either to require prompt payment when due of all other sums so secured or to declare default for Failure so to pay. (8) That at any time or from time to time, without liability therefor and without notice, upon written request of Beneficiary and presentation of thls Deed and said note for endorsement, and without effecting the personal ilabllity of any person for payment of the Indebtedness secured hereby, Trustee may: reconvey any part of said property; consent to the making of any map or plat thereof; Join in granting any easement thereon; or Join In any extension agreement or eny agreement subordinating the lien or charge hereof. (9) That upon written request of 8eneeciary stating that all sums secured hereby have bean paid, and upon surrender of this Deed and said note to Trustee far cancellation and retention and upon payment of Its fees, Trustee shall raconvey, without warranty, the property then held hereunder. The recitals In such reconveyance of any matters or facts shall to conclusive proof of the truthfulness thereof. The grantee In such remnveyance may be described as 'the person or persons legally entitled thereto`. Five years after issuance of such full reconvoyance, Trustee may destroy said note and this Deed (unless directed in such request to retain them). (10) That es addttloral security, Truster hereby gives to and confers upon Beneficiary the right, power and authority, during the continuance of these Trusts, to collect the rents, issues and profits of said property, reserving onto Tmstor the right, prior to any default by Truster In payment of any indebtedness secured hereby or In performance of any agreement hereunder, to collect and retain such rents, issues and profits as they become due and payable. Upon any such default, Beneficiary may at any time without notice, either in person, by agent, or by a receiver to be appointed by a court, and without regard to the adequacy of any security for the Indebtedness hereby secured, enter upon and take possession of said property or any pert thereof, in his own name sue tor or otherwlse collect such rents, Issues and profits, Including those past due and unpaid, and apply the same, less costs and expenses of operation and collection, Including reasonable attorney's fees, upon any Indebtedness secured hereby, and In such order as Beneficiary may determine. The entering upon and taking possession of said property, the collection of such rents, issues and profits and the application thereof as aforesaid, shall not cure or waive any default or nodes of default hereunder or Invalidate any act done pursuant to such notice. (11) That upon default by Truster In payment of any indebtedness secured hereby or In performance of any agreement hereunder, Beneficiary may declare all sums secured hereby immediately cue and payable by delivery to Trustee of written declaration of default and demand for sale and of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be fled for record. Beneficiary also shall deposit with Trustee this Deed, said note and all documents evidandng expenditures secured hereby. After the lapse of such time as may then be required by law following the recordation of salt/ notice of default, and notice of sele having been given as then, required by law, Trustee, without demand on Truster, shall sell said property at the time and place fixed by It in said notice of sale, either es a whole or In separate parcels, and in such order as It may determine, et public auction to the highest bidder for cash in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser Its deed conveying the property so sold, but Wiuwut any covenant or warranty, express or implied. The recitals In such deed of any matters or facts shell be conciuslve proof of the truthfulness thereof. Any person, Including Truster, Trustee, or Beneficiary se hereinafter defined, may purchase at such sale. After deducting all costs, fees and expenses of Trustee and of thls Trust, including cost of evidence of title in connection with sale, Trustee shall apply the proceeds of sale to payment eft ell sums expended under the terms hereof, net then repaid, with accrued Interest et the amount allowed by law In effect at the date hereof; all other sums then secured hereby; and the remainder, if any, to the person or persons legally entitled thereto. Deed or Dust and Assignment of Rents DRAFT 12/13/2011 1:28PM (GMT-06:00) 201^.-Der•13 1209 PM well forgo 619-498-2596 33/39 Attachment No. 2 (12) Beneficiary, or any successor In ownership of any Indebtedness secured hereby, may from time to erne, by Instrument In writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which Instrument, executed by the Beneficiary and duty ackmowledged and recorded In the office of the recorder of the county cr counties where said property is situated, shall be conclusive proof of proper substitution of such successor Trustee or Trustees, who shelf, without conveyance from the Trustee predecessor, succeed to ail Its title, estate, rights, powers and duties. Sold Instrument must contain the name of the original Truster, Trustee and Beneficiary hereunder, the bock and page where this Deed Is recorded and the narr,e and address of the new Trustee. (13) That this Deed applies to, Inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, ex:cutors, successors and assigns. The term Beneficiary shall mean the owner and holder, lncluelng pledgees, of the note secured hereby, whether er not named as Beneficiary herein. In this Deed, whenever the context so requires, he masculine gender includes the feminine and/or neuter, and the singular number includes the plural. (14) That Trustee accepts this Trust when this Deed, duty executed and acknowledged, Is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trost or Of any action or proceeding In which T:ustor, Benefk ary or Trustee shall be a party unless brought by Trustee. Dated: } STATE OF CALIFORNIA }ss COUNTY OF On before me personally appeared Neta y PUbtee, who proved to ma on he heals of satisfactory evidence to be the person(s) whose nare(s) In/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same In Ks/her/Melt authorized capacly(!es), and that by his/her/heir signature(s) on the Instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the Instrument. I certify under peNALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is tnie and correct. WITNESS my hand and official seal, Signature Deno of Trust end Astlgnrne,t of Rents SPACE ABOVE RESERVED FOR NOTARY SEAL DRAFT 12/13/2011 1:2BPM (GMT-06:00) CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT PREPARED BY: Claudia Gacitua Silva PHONE: Ext. 4222 EXPLANATION: MEETING DATE: January 10, 2012 AGENDA ITEM NO. 26 M TITLE: Resolution of the Community Development Commission of the City of National City ratifying and confirming the City Council's designation of the Housing Authority of the City of National City, under Part 1.85 of Division 24 of the Health and Safety Code, to accept housing assets and perform housing functions previously performed by the Community Development Commission of the City of National City on behalf of the Redevelopment Agency of the City of National City subject to reservations herein stated DEPARTMENT: 1 y Aney APPROVED BY: ABx1 26 dissolves redevelopment agencies as of February 1, 2012. The City of National City established a Housing Authority in 1975 to perform housing authority functions. ABx1 26 allows the continuance of such operation and a transfer of the assets to the Housing Authority. This resolution allows such a transfer of functions and housing authority to occur. FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Adopt resolution. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: iposed resolution RESOLUTION NO. 2012 — RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY RATIFYING AND CONFIRMING THE CITY COUNCIL'S DESIGNATION OF THE HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY, UNDER PART 1.85 OF DIVISION 24 OF THE HEALTH AND SAFETY CODE, TO ACCEPT HOUSING ASSETS AND PERFORM HOUSING FUNCTIONS PREVIOUSLY PERFORMED BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF NATIONAL CITY SUBJECT TO RESERVATIONS HEREIN STATED WHEREAS, the City of National City formed the Community Development Commission of the City of National City ("CDC"), which has continuously engaged in both redevelopment activities under the Community Redevelopment Law (Health and Safety Code sections 33000, et seq.) ("CRL") and housing authority activities under the Housing Authority Law (Health and Safety Code sections 34200, et seq.); and WHEREAS, at the time the City of National City formed the CDC, the City also established the Housing Authority of the City of National City ("Authority") by Ordinance No. 1484, dated October 14, 1975; and WHEREAS, the Redevelopment Agency of the City of National City ("Agency") was established by Ordinance No. 1164, dated April 11, 1967; and WHEREAS, the CDC was established to enable both the Agency and the Housing Authority to operate under a single board and single entity and the CDC was vested with such authority; and WHEREAS, Sections 33334.2 and 33334.3 of the Community Redevelopment Law require the Agency to use not less than 20 percent (20%) of tax increment allocated to the Agency pursuant to Section 33670 of the CRL for the purpose of increasing, improving, and preserving the community's supply of low and moderate income housing ("Low and Moderate Income Housing Fund"); and WHEREAS, the CDC on behalf of the Agency has continuously utilized its Low and Moderate Income Housing Fund for the purpose of increasing, improving and preserving the community's supply of low- and moderate -income housing available at affordable housing cost; and WHEREAS, by enactment of Part 1.85 of Division 24 of the Health and Safety Code and upon the effectiveness of Assembly Bill No. 26 (2011-2012 lst Ex. Sess.) ("AB 1x 26"), subject to all reservations herein stated, the Agency, but not the CDC, is subject to dissolution on February 1, 2012, such that the Agency will be deemed as a former redevelopment agency under Health and Safety Code section 34173(a) of Part 1.85 of AB 1 x 26; and WHEREAS, the dissolution of the Agency is limited to the dissolution of the Agency only and results in the Agency's inability to perform redevelopment activities, but such dissolution does not affect or impair the legal status of the Housing Authority or the CDC and their lawful activities; and Resolution No. 2012 — January 24, 2012 Page Two WHEREAS, subject to all reservations herein stated, the CDC confirms and ratifies the action of the City Council of the City of National City to designate the Housing Authority to receive the transfer of, without limitation, all of the housing assets, rights, powers, duties, obligations, liabilities and functions previously performed by the Agency upon the dissolution of the Agency, including enforcement of affordability covenants and performance of related activities pursuant to applicable provisions of the CRL, including, but not limited to, Section 33418; and WHEREAS, the CDC hereby desires to adopt this Resolution, subject to the express reservation of rights of the City of National City, CDC, Agency and Authority under law and/or equity, including without limitation the effectiveness of AB 1x 26 (collectively, "Laws"); and WHEREAS, the CDC does not intend, by adoption of this Resolution, to waive any constitutional and/or legal rights under law and/or equity, including without limitation the effectiveness of AB 1 x 26, by virtue of the adoption of this Resolution and, therefore, reserves all of its rights under Laws to challenge the applicability of AB 1 x 26 to the Agency and/or the City of National City and/or Authority and/or CDC, in any administrative or judicial proceeding; and WHEREAS, the CDC does not intend, by adoption of this Resolution, to waive any of its rights, authority and powers duly vested in the CDC and hereby reserves its rights with respect to exercising such rights, authority and powers in accordance with applicable law; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AS FOLLOWS: 1. Subject to all reservations herein stated, the Community Development Commission of the City of National City hereby ratifies and confirms the City Council of the City of National City's designation of the Housing authority of the City of National City to receive the transfer of, without limitation, all of the housing assets, rights, powers, duties, obligations, liabilities and functions previously performed by the Agency upon the dissolution of the Agency, including enforcement of affordability covenants and performance of related activities pursuant to applicable provisions of the Community Redevelopment Law (Part 1, commencing with Health and Safety Code section 33000 et seq.), including, but not limited to, Section 33418. 2. The ratification and confirmation of the CDC under this Resolution is expressly contingent upon the Authority being duly authorized to take, and in fact taking, such actions as are needed to effectuate the transfer described in the immediately preceding paragraph. resolution No. 2012 — January 24, 2012 Page Three 3. The City Manager is hereby authorized to make all notifications of such designation as deemed necessary under Part 1.85 of Division 24 of the Health and Safety Code and to execute all documents and take all actions necessary and convenient to carry out and implement the designation of the Authority to receive the transfer of, without limitation, all of the housing assets, rights, powers, duties, obligations, liabilities and functions previously performed by the Agency upon the dissolution of the Agency, including enforcement of affordability covenants and performance of related activities pursuant to applicable provisions of the Community Redevelopment Law (Part 1, commencing with Section 33000), including, but not limited to, Section 33418. 4. This Resolution shall take effect immediately upon its adoption. PASSED and ADOPTED this 24th day of January, 2012. Ron Morrison, Chairman ATTEST: Chris Zapata, Secretary APPROVED AS TO FORM: Claudia Gacitua Silva General Counsel CDC ETING DATE: CITY OF NATIONAL CITY, CALIFORNIA COMMUNITY DEVELOPMENT COMMISSION COUNCIL AGENDA STATEMENT January 24th, 2012 AGENDA ITEM NO. 27 ITEM TITLE: Authorize the reimbursement of Community Development Commission expenditures in the amount of $232,328.50 to the City of National City for the period of 11/30/11 through 12/06/11' 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: 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: APPROVED: ACCOUNT NO. APPROVED: Approve the reimbursement of funds to the City of National City in the amount of $232,328.50 ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Accept and File. BOARD / COMMISSION RECOMMENDATION: jN/A 'TACHMENTS: !Warrants for the period of 11/30/11 through 12/06/11, COMMUNITY DEVELOPMENT COMMISSION WARRANT REGISTER #23 12/6/2011 PAYEE DESCRIPTION CHK NO DATE AMOUNT DESROCHERS RETIREE HEALTH BENEFITS DEC 2011 244691 12/6/11 110.00 EDCO DISPOSAL CORPORATION WASTE DISPOSAL SERVICES / CDC 244692 12/6/11 104.75 FEDEX EXPRESS MAIL / SERVICE CDC 244693 12/6/11 84.08 OPPER & VARCO LEGAL SVCS / OCT 2011 244694 12/6/11 826.00 PRO BUILD MOP 45707 MATERIALS - SUPPLIES 244695 12/6/11 578.27 PRUDENTIAL OVERALL SUPPLY MOP 45742 LAUNDRY SERVICE 244696 12/6/11 46.38 SAN DIEGO TROLLEY INC TROLLEY FLAGGING SERVICES FY2012. 244697 12/6/11 27.27 KIMLEY HORN AND ASSOC INC PROP. 84 GRANT APPLICATION PREPARATII 244752 12/6/11 215,040.89 LASER SAVER INC MOP 45725 TONER CARTRIDGE 244755 12/6/11 130.44 NATIONAL CITY HISTORICAL SOCIETY REIMB TO PUBLICIZE KIMBALL HOUSE 244761 12/6/11 5,000.00 RBF CONSULTING 8TH ST. SAFETY ENHANCEMENTS, AUG/SEF 244770 12/6/11 10,380.42 OTHER DISBURSEMENTS PAID WITH CDC FUNDS SECTION 8 HAPS PAYMENTS Start Date 11/30/2011 A/P Total $ 232,328.50 Total disbursements paid with City's Funds $ 232,328.50 End Date 12/6/2011 692,559.94 GRAND TOTAL $ 924,888.44 ETING DATE: CITY OF NATIONAL CITY, CALIFORNIA COMMUNITY DEVELOPMENT COMMISSION COUNCIL AGENDA STATEMENT January 24t`', 2012 AGENDA ITEM NO. ¢8 ITEM TITLE: Authorize the reimbursement of Community Development Commission expenditures in the amount of $257,645.68 to the City of National City for the period of 12/07/11 through 12/13/11 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 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 $257,645.68 ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Accept and File. BOARD / COMMISSION RECOMMENDATION: N/A ACHMENTS: ivvarrants for the period of 12/07/11 through 12/13/11 X VCORPdBA'rED COMMUNITY DEVELOPMENT COMMISSION WARRANT REGISTER #24 12/13/2011 PAYEE BEST BEST & KRIEGER LLP BIRRIAS COMMUNITY HOUSING WORKS DIXIELINE BUILDERS DIXIELINE BUILDERS E2 MANAGE TECH INC NAHRO OPPER & VARCO PROJECT PROFESSIONALS CORP. PRUDENTIAL OVERALL SUPPLY HDL COREN & CONE HDL COREN & CONE "' YROLL Pay period Start Date 25 11/15/2011 DESCRIPTION LEGAL SVCS THROUGH NOV 2011 ECONOMIC DEVELOPMENT LOAN/CDC EXPENSE REIMB/ LOAN# 1134-H03-NC HOME PROGRAM LOAN / 2604 E 14TH ST EXP REIM/ 138 NORTON AVE/ GRANTS PROPERTY MITIGATION PW/MAY-SEP11 CDC SECTION 8 NAHRO MEMBERSHIP LEGAL SVCS /JULY2011/REDEV 8TH ST UTILITIES, OCTOBER/NOVEMBER MOP 45742 LAUNDRY SERVICE 2010-11 SEC/UNSECURED AUDIT REC CONTRACT SVC PROP TAX OCT-DEC11 End Date 11/28/2011 Check Date 12/7/2011 CHK NO DATE AMOUNT 244839 12/13/11 4,731.23 244840 12/13/11 208.00 244841 12/13/11 41,385.00 244 842 12/13/11 29,425.00 244 843 12/13/11 15,874.35 244844 12/13/11 43,120.36 244845 12/13/11 1,300.00 244 846 12/13/11 5,439.78 244945 12/13/11 10, 582.50 244946 12/13/11 13.87 244992 12/13/11 34 402.81 244993 12/13/11 1,200.00 A/P Total S 187,682.90 69,962.78 Total disbursements paid with City's Funds $ 257,645.68 GRAND TOTAL $ 257,645.68 ETING DATE: CITY OF NATIONAL CITY, CALIFORNIA COMMUNITY DEVELOPMENT COMMISSION COUNCIL AGENDA STATEMENT January 24, 2012 AGENDA ITEM NO. 29 ITEM TITLE: Approve the release of a Request for Proposal for Kimball Tower and Morgan Tower property management services PREPARED BY: Alfredo Ybarra PHONE: 619 336-4279 DEPARTMENT: Adminis Services APPROVED B .� EXPLANATION: The Community Development Commission of the City of National City (Commission) owns and operates 303 senior housing units commonly known as Kimball Tower and Morgan Tower located at 1317 D Avenue and 1415 D Avenue, respectfully. The Commission is requested to authorize staff to issue a competitive solicitation for property management services. The management of these senior housing units is currently being performed under two separate property management contracts with Falkenberg, Gilliam and Associates, Incorporated (FGA). FGA has provided property management services for Kimball Tower and Morgan Tower since 1995, when the contract was authorized by the ii, ommission. Since October 3, 2006, FGA has been providing property management services on a month -to - nth basis. Though FGA has been providing excellent property management services, staff believes it is a good usiness practice to RFP property management services on a periodic basis. FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: APPROVED: Property management costs arc offset by rents received from the residents of Kimball Tower and Morgan Tower senior housing developments. There is no impact to the City general fund. ENVIRONMENTAL REVIEW: NA ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Approve the release of Request for Proposal for Kimball Tower and Morgan Tower seeking property management services. BOARD / COMMISSION RECOMMENDATION: •ACHMENTS: 1. Background 2. Timeline 3. Request for Proposal for Kimball Tower and Morgan Tower Property Management Services Background Report Property Management Services The Community Development Commission of the City of National City (Commission) owns and operates 303 senior housing units located at 1317 D Avenue and 1415 D .1venue in the City of National City. The management of these senior housing units is being performed under two separate property management contracts with Falkenberg, Gilliam and Associates, Incorporated. The developments included are: Kimball Tower, a 151-unit senior housing development, and Morgan Tower, a 152-unit senior housing development. The Request for Proposal (RFP) for selection of a property management company will be advertised in compliance with City of National City Procurement Policy and all applicable federal regulations. The submittal will be evaluated and ranked by a review panel in accordance with the criteria in the RFP which includes management approach, previous experience, and cost. The final 2-4 finalists will be interviewed by a panel consisting of city staff and residents of Kimball Tower and Morgan Tower. If authorized, this action may result in a one-year contract with options to renew for up to two, two-year terms (for a maximum of five years). The current contract at Morgan Tower for Fiscal Year 2011 is 4.75% of all rent and laundry revenue collected budgeted at $58,021. The current contract at Kimball Tower is 7.25% of all rent and laundry revenue collected budgeted at $71,768. It is anticipated that the contract for Fiscal Year 2012-13 will be similar in respect to these costs with the acknowledgment that an inflation factor may be considered in the final contract negotiations. Attachment 2 KIMBALL TOWER AND MORGAN TOWER TIMELINE FOR SELECTION OF PROPERTY MANAGEMENT COMPANY (DRAFT) January 24.. 012 (Tuesday) Recommendation to Community Development Commission (CDC) to Prepare and Release a Request for Proposal for Kimball Tower and Morgan Tower Property Management Services. January 31, 2012 (Tuesday) Resident informational meeting regarding KM Towers property management services. February 1, 2012 (Wednesday): Release Request for Proposal February 29, 2012 (Wednesday): RFQ Deadline March 5, 2012 (Monday) Conduct 1st RFP Review by panel: Panelists 1. Leslie Deese, Assistant City Manager 2. Brad Raulston, Executive Director 3. Alfredo Ybarra, Housing and Grants Manager Select 2-4 finalists March 12-13, 2012 (Monday -Tuesday): Conduct panel review of finalists Panelists 1. Mayor Ron Morrison 2. Councilmember 3. Alfredo Ybarra, Manager 4. Nora McMains, National City resident 5. Yvonne Cordoba, National City resident Panel to provide recommendation to City Manager. March 19 - April 3, 2012 Negotiate PM Agreement April 5, 2012 (Thursday) Public Informational Meeting at KM Towers April 17, 2012 CDC to consider approval of recommended property management agreements. April 18, 2012 Begin Transition Period July 1, 2012 New Property Management Company assumes property management responsibilities. Attachment 3 Request for Proposal for Kimball Tower and Morgan Tower Property Management Services Community Development Commission of the City of National City 1243 National City Boulevard National City, CA (619) 336-4279 CA,LIF..ORNLA `J. JN XL -City? ,1, x4'CORPORATF REQUEST FOR PROPOSALS FOR PROPERTY MANAGEMENT SERVICES KIMBALL AND MORGAN TOWERS Key RFP Dates: Issued: February 1, 2012 Walk- Thru: February 9, 2012 (2 p.m.) Submittal: February 29, 2012 (4 p.m. deadline) i COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY REQUEST FOR PROPOSALS PROPERTY MANAGEMENT SERVICES FOR MORGAN TOWER 1415 "D" AVENUE NATIONAL CITY, CA 91950 AND KIMBALL TOWER AND 1317 "D" AVENUE NATIONAL CITY, CA 91950 BRIEF BACKGROUND OF CITY OF NATIONAL CITY National City is located in San Diego County, approximately five miles south of downtown San Diego and eleven miles north of the Mexican border. It encompasses 9.2 square miles and is considered almost fully developed. It is bordered by the City of San Diego to the north and east, the San Diego Bay to the west, and the City of Chula Vista to the south. In addition, a small unincorporated community, known as Lincoln Acres, is located to the southeast of National City, generally north of SR-54 and cast of I-805.1-5 and I-805 cross National City from north to south, and SR-54 traverses the southern edge. National City is San Diego County's second oldest city and was incorporated on September 17, 1887. KIMBALL AND MORGAN TOWER IIOUSING DEVELOPMENTS Morgan Tower, 1415 "D" Avenue, National City, California, is a 152-unit nine -story residential facility for elderly and disabled persons. Morgan Tower has been in operation since June of 1979. The building is insured by HUD under Section 231 of the National Housing Act and most residents are assisted through a Section 8 Project -Based Assistance Contract with the U.S. Department of Housing and Urban Development. Kimball Tower, 1317 "D" Avenue, National City, California, was constructed and occupied in January of 1987. It consists of 149 rental units, a manager's unit, and an assistant manager's unit, for a total of 151 units. Most residents in this building are assisted under the Scction 8 Tenant -Based Rental Assistance Program. Since 2006, Kimball Tower is no longer restricted by a recorded affordability covenant. However, Kimball Tower continues to be operated as an affordable senior housing building. 2 Kin:':al1 and Morgan Tower were completed, with the intent of providing National City's senior population a cum.';'rLble, safe place to be housed. The developments were completed separately in joint ventures beta; : cn the Coinmunity Development Commission of the City of National City (CDCjand the United States Department of Housing and Urban Development. All of the rental units at Morgan Tower and Kimball Tower are one -bedroom, approximately 550 square feet in area, with complete kitchen. All persons living at Morgan 'Cower and Kimball Tower must be able to care for themselves and live independently. The residences are not care facilities. The 303 units are supported by a variety of common rooms, a business office, and living quarters for three staff households. All residents of Morgan Tower and Kimball Tower must be of extremely low to very low income and able to care for themselves. Morgan Tower residents are under the Section 231 Housing Subsidy Program while Kimball Tower residents pay approximately 30% of their adjusted income as rent. The Project Management Company maintains the Morgan Tower waiting list and the Housing and Grants Division of the City of National City Administrative Services Department maintains the Kimball Tower waiting List. The facility management requires services for complete maintenance, repair and operation of the facilities, 24 hour on duty staff presence, and rent collection and includes providing senior oriented recreational activities and limited resident counseling. Only Morgan Tower is subject to an annual inspection by the Department of Housing and Urban Development and must meet their livability standards. Applicable HUD forms, including Form 9839-b, will be required of the successful bidder. Since 2006, Kimball Tower does not have affordability requirements and is not under a Department of Housing and Urban Development contract but the City desires it to continue to be operated as an affordable housing project. The National City Nutrition Center is an independent operation of the City of National City located in a front one-story portion of Morgan Tower. Property revenues from Morgan Tower and Kimball Tower have been used to provide maintenance services to the Nutrition Center in the past but a new agreement will be executed with the Nutrition Center operators separating the responsibilities for maintenance more in -line with a traditional tenant improvement lease agreement. The City, under a separate and independent RFP, is currently seeking proposals to operate the Nutrition Center. Each of the housing towers is considered a stand-alone project for management considerations. Separate budgets and accounting responsibilities apply to the each project. Morgan Tower was developed under a Section 231 Housing Project Based Subsidy Program and Kimball Tower receives Section 8 Tenant Based Rental Assistance. The management proposal includes both projects for reason of responsibility, efficiency, communication, coordination, and economy of scale. However, each Tower will have a separate management agreement. A management plan will be required and may be combined for both residential towers. Security for the buildings is the responsibility of the project management company. Cost for these services must be part of the management budget. 3 1. INTRODUCTION A. Purpose of the RFP: The purpose of the Request for Proposals (RFP) is to solicit offers from qualified, experienced property management companies ("Contractor") interested in providing full service property management services to perform management and operation of the City of National City Community Development Commission (CDC) owned 303-unit Kimball and Morgan Tower Housing Development, consisting of 300 rental units (all one bedroom) providing housing to tenants in addition to a resident manager and two assistance resident managers units. The property has been diligently maintained through consistent efforts to provide modernization upgrades to the buildings and the site. On site, off street parking consist of 177 open parking stalls with 30 being disabled stalls. Additional parking is typically accommodated along either side of D Avenue and Kimball Way. On the northwest corner, on a separate parcel, is the City of National City Senior Center operated and owned by the City of National City. Eventually this area may be developed to house up to an additional 200 senior units. Onsite management also consists of the expectation to provide senior social services programs and to monitor the safety and well being of the tenants, in addition to providing timely notification to either family or the appropriate authority in cases of emergencies. The goal of the Community Development Commission is to develop a stronger and expanded social and recreational program including social activities, physical exercise, memory exercise, crafts, special field trips, etc. The details of these programs and the related costs should be integral to the proposal. Your firm is invited to submit a written proposal outlining specific required services and the organization's ability and willingness to provide the services as described. B. Ownership Objectives The CDC has multiple objectives with regard to property that we expect to achieve in partnership with the managing agent: Improve/Preserve physical asset to serve as affordable housing for the long-term. • Comply with all regulatory and fiscal requirements related to the property's financing. • Maintain a clean, well -maintained, physically appealing property. • Enhance the property's security and safety. • Bring new, needed resident services and programs, and increase resident participation. 4 Manage the property within an agreed upon annual budget sufficient to maintain the property in the long-term and meet the property's financial obligations. 2. SCOPE OF SERVICES N. Property Management The management and operation or its 303 units senior housing development consists of several components involved in day today, weekly, monthly, quarterly, semi-annual, and annual operations. Units that are designed to accommodate both persons 62 years of age minimum, and persons with permanent disabilities, must be maintained as per the standards established, and often modified, by HUD. All applicants must income qualify (HUD low-income guidelines) prior to being accepted as tenants, and as such, must be proven to continue to be determined as eligible, qualified, bona fide residents of Kimball and Morgan Towers. The work to be accomplished includes all aspects of leasing, marketing, operation, and maintenance of the property, in addition to financial management and reporting. Scope of services must include the following provision for service: 1. The Contractor shall provide a trained, experienced, full time (40 hours per week) live- in resident manager, to be residing and maintaining full - time office hours on -site, and as necessitated by schedule or otherwise advised by the CDC, to provide at least one temporary or substitute resident manager to provide similar on -site office hours during the sustained (prolonged) absence of the permanent resident manager (due to illness, vacation or other excused absence), whose job duties include, but are not necessarily limited to, the following descriptions: a. The resident manager shall collect tenant rent due from all occupied units, provide proper notification to tenant delinquent with payments, maintain resident (tenant) files in a secure location, protecting privacy and confidentiality as per HUD standards. All resident files shall be subject to audit by agents of the CDC, agents acting on behalf of the CDC, agents of HUD programs or agents acting on behalf of HUD programs. b. Arranging, oversight of, and/or performance of the quarterly data submittal of tenant demographic and other information required by the current HUD reporting system. Employees at both residences will be employees of the Project Management Company. 3. PROPOSALS Candidates should have proven management expertise in the following areas: • HUD Section 8 Rental Assistance 5 • -HUD Section 231 Housing Subsidy Program • Properties with senior resident services and programs the CDC proposes to award the contract on a basis of demonstrated qualification and experience in managing this scale of housing for functional elderly and disabled person. The CDC is seeking excellence in management of the buildings. Therefore, the award will be based on the thoroughness of the proposals, experience, and a reasonable cost to perform the management responsibilities. Management Overview — Responsibility of Management Company The Management Company is expected to perform those duties as articulated in the attached proposed form of Management Agreement. 4. SELECTION PROCESS Responses are due no later than February 29, 2012 at 4 p.m. The CDC will hold interviews with the top 2 — 4 prospective candidates on or about March 12-13, 2012. Final selection of a management company is expected to occur by April 17, 2012. Immediately after selection, the selected management company will begin working with the ownership team and current management company to transition property management responsibilities in a timely manner. The selected management company will develop operating budgets and management plans and will begin on -site property management on July 1, 2012. 'Fo apply, please send 5 copies, by 4 p.m. on February 29, 2012, of the following: 1. Responses to all questions in the "Questionnaire" (attached) 2. List of properties Currently Managed (senior and other subsidized properties) 3. The most recent completed audit 4. Standard sample financial and management reports, 5. Financial Proposal, and 6. Five references, at least 2 of which are owners of subsidized multi -family or senior housing. Submissions should be addressed to: Alfredo Ybarra, Manager Housing and Grants Division Administrative Services Department City of National City 1243 National City Boulevard National City, CA 91950 (619) 336-4279 After award of the Contract, proposers must provide a Management Entity Profile (I IUD 9832), a Management Certification (HUD 9839-b), and a Previous Participation Certification (HUD 2530), which shall have been approved by HUD as a condition of the Contract. The Management Company selected by the CDC must prepare a unified management plan for CDC review and approval. Questions regarding this invitation of proposals should be directed to Alfredo Ybarra. 6 lllor.jan and Kimball Towers t Ott- ty Management Company Questionnaire 1. How would you normally staff a property of this size and type? Please indicate whether staff would be shared with other properties. 2. Who does the on -site manager report to? What is your organizational structure? Describe the Proposals, location, and roles of non -site staff that will support or be assigned to this project. 3. What is the experience of your firm and assigned individuals in managing affordable senior housing, and specifically Section 8 and Section 231 subsidized housing? Please attach a list of properties currently managed, indicating where the property is located, the number of units managed, and whether the property is a Section 8, Section 231, tax credit or other form of subsidized property. 4. What is the experience of your firm and assigned individuals in managing properties in the San Diego area? 5. In your experience, how is managing an assisted property different from managing a market rate property? 6. Describe your experience in working with tenant associations or resident councils. 7 Describe your experience in managing properties undergoing significant "tenant in place" renovation and/or project expansion. For example, it is contemplated that this existing project could increase in size by 200 units. Morgan and Kimball towers would remain as existing in this potential scenario. 8. What kind of senior resident services have you implemented or been involved with at other properties? With a focus on senior tenants, what, if any, has been your role in assessing resident needs, developing or bringing appropriate programs to the site and coordinating with service providers? 9. What type of financial and management reports do you provide to owners (include sample)? Do you have any flexibility in formatting financial reports? 10. Do you have management, accounting and software systems in place to monitor and maintain compliance with federal programs? 11. Describe your experience/knowledge of Real Estate Assessment Center (REAC) policies and procedures for inspections of properties. 12. Please share any material concerns regarding the proposed form of Management Agreement. 7 City of National City Housing and Grants Division Administrative Services Department 1243 National City Boulevard National City CA 91950 Attention: Alfredo Ybarra, Manager SUBJECT: PROPOSAL FOR THE MANAGEMENT OF MORGAN TOWER AND KIMBALL TOWER (Name of Firm) Hereby submits a proposal to the management agent for Morgan/Kimball Towers with a financial proposal, as follows: I. MORGAN TOWER, 1415 `D' AVENUE, NATIONAL CITY, CA The dwelling units number 152, of which 151 units are for elderly and disabled person(s) of very low income and are under Section 8 Housing Assistance Payment Contracts. The remaining unit is for the Assistant Resident Manager. The Fee for the management of the units described herein is Percent ( %) of gross collection per month, or Dollars ($ ) per unit per month, whichever is less, for the one-year (1-yr.) term pursuant to the terms of the Management Agreement and to the Request for Proposals. II. KIMBALL TOWER, 1317 'D' AVENUE, NATIONAL CITY, CA The dwelling units number 151, of which 149 units are rental units for elderly and disabled persons (120 of which said units will be for persons of very low income) and two units are for the Resident Manager and Assistant Resident Manager. The Fee for the management of the units described herein is Percent ( %) of gross collection per month, or Dollars ($ ) per unit per month, whichever is Tess, for the one-year (1-yr.) term pursuant to the terms of the Management Agreement and to the Request for Proposals. III. In making this proposal, I have been furnished with and have considered the following: Community Development Commission Page Two A. The Public Notice B. The Request for Proposals C. The 2011— 2012 approved budget for each Morgan Tower and Kimball Tower. D. Sample Management Agreements, for Morgan Tower and Kimball Tower. IV. I understand that the successful proposer shall prepare a management plan within 30 days from the execution of the two (2) Management Agreements and the management plan shall be subject to review and approval by the City of National City. Such Management Plan for each of the two buildings and for the two buildings considered together, shall be a part of each of the two Management Agreements, as Exhibit "A", thereof. V. I understand that the Community Development Commission proposes to award the Management Agreement for both Kimball Tower and Morgan Tower to one management agent on the basis of the combination of (1) the best qualifications in terms of demonstrated ability to manage the number of units of housing for functional seniors and disabled persons and (2) a reasonable cost to perform the required services. Date By: Attachment to Request for Proposal for Kimball Tower and Morgan Tower Property Management Services Proposed form of Management Agreements 9 MORGAN TOWER MANAGEMENT AGREEMENT Agreer.ient is made this day of , 20_, between the Community Development Commission of the City of National City hereinafter referred to as "CDC" and , Inc. hereinafter referred to as "Contractor". Definitions As used in this Agreement: a. "HUD" means the United States Department of Housing and Urban Development. b. "Secretary" means the Secretary of the United States Department of Housing and c. Urban Development. d. "Contractor" is c. A "Mortgage" is an instrument of an agreement between the Owner, as mortgagor, and the mortgagee, creating a lien on the Project as security for the payment of debt, which mortgage is insured by the United States Department of Housing and Urban Development. f. "Mortgagee" means any holder of the Mortgage. g. Community Development Commission of the City of National City ("CDC") is Owner. h. "Principal Parties" means the CDC and the Contractor. "Consenting Parties" means the Secretary and the Mortgagee. j. "Reimbursable Expense" means any expenditure incurred by the Contractor which shall be reimbursed to the Contractor from the Rental Agency Account. k. "Rental Agency Account" means the account described in Section 14. 2. Appointment and Acceptance. The CDC appoints the Contractor as exclusive representative for the management of the property described in Section 8 of this Agreement; and, the Contractor accepts the appointment, subject to the terms and conditions set forth in this Agreement 3. Independent Contractor. Both parties hereto in the performance of this Agreement will be acting in an independent capacity and not as agents, employees, partners or joint ventures with one another. This Agreement contemplates the personal services of the Contractor and the Contractor's employees, and it is recognized by the parties that a substantial inducement to the CDC for entering into this Agreement was, and is, the professional reputation and competence of the Contractor and its employees. Neither this Agreement nor any interest herein may be assigned by the Contractor without the prior written consent of the CDC. Nothing herein contained is intended to prevent the Contractor from employing or hiring as many employees as the Contractor may deem necessary for the proper and efficient performance of this Agreement. Page 1 of 15 rol. Neither the CDC nor its officers, agents or employees shall have any control over toe conduct of the Contractor or any of the Contractor's employees except as herein set forth, and the Contractor expressly agrees not to represent that the Contractor or the Contractor's agents, servants, or employees are in any manner agents, servants, and employees of the CDC, it being understood that the Contractor, its agents, servants, and employees are as to ire C:DC wholly independent contractors and that the Contractor's obligations to the CDC are solely such as are prescribed by this Agreement. 5. Contractor referred to as Agent. Not withstanding Contractor's status as an independent contractor, the parties acknowledge that in its dealings with agencies of the federal government, Contractor may from time to time be referred to as the "Agent" of the CDC. 6. Compliance with Applicable Law. The Contractor, in the performance of the services to be provided herein, shall comply with all State and Federal statutes and regulations, and all ordinances, rules and regulations of the City of National City whether now in force or subsequently enacted. The Contractor, and its subcontractors, shall obtain a current City of National City business license prior to performing any work within the City. 7. Non -Discrimination Provisions. The Contractor will not discriminate against any employee or applicant for employment because of age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. The Contractor will take positive action to insure that applicants are employed without regard to their age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. Such action shall include but not be limited to the following: employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places available to employees and applicants for employment any notices provided by the CDC setting forth the provisions of this non-discrimination clause. 8. Description of Project. This property ("Project") to be managed by the Contractor under this Agreement is a housing development consisting of the land, building, and other improvements that made up the Project further described as follows: Morgan Tower 1415 "D" Avenue City of National City, County of San Diego, State of California Consisting of 152 dwelling units 9. IIUD Requirements. The project is subject to a mortgage which is insured by HUD under Section 231 of the National Housing Act and the CDC had entered into a Regulatory Agreement with the Secretary, whereby the CDC is obligated to provide for management of the project in a manner satisfactory to the Secretary. In addition, the CDC has entered into a Housing Assistance Payments Contract with the Secretary. The CDC has furnished the Page 2 of 15 Contractor with copies of the Regulatory Agreement and the Housing Assistance Payments Contract. In performing its duties under this Management Agreement, the Contractor will comply with all pertinent requirements of the Regulatory Agreement, the Housing Assistance Payment Contract, and the directives of the Secretary. In the event any instruction from the CDC is in contravention of such requirements, the latter will prevail. 10. Management Plan. Attached hereto as Exhibit "A" and incorporated herein, is a copy of the Management Plan for the Project, which provides a comprehensive and detailed description of the policies and procedures to be followed in the management of the Project. In many of its provisions, this Agreement briefly defines the nature of the Contractor's obligations, with the intention that reference be made to the Management Plan for more detailed policies and procedures. Accordingly, the CDC and the Contractor will comply with all applicable provisions of the Management Plan, regardless of whether specific reference is made thereto in any particular provision of this Agreement. 11. Basic Information. As soon as possible, the CDC will furnish the Agent with complete set of plans and specifications and copies of all guaranties and warranties pertinent to construction, fixtures, and equipment available to the CDC. With the aid of this information and through inspection by competent personnel, the Agent will thoroughly familiarize itself with the character, location, construction, layout, plan and operation of the Project, and especially the electrical, heating, plumbing, air-conditioning and ventilating systems, the elevators, and all other mechanical equipment. 12. Marketing. The Contractor will carry out the marketing activities prescribed in the Management Plan, observing all requirements of the Affirmative Marketing Plan. Advertising expenses will be paid out of the Rental Agency Account Reimbursable. 13. Rentals. The Contractor will offer for rent and will rent the dwelling units, and other rental facilities and concessions in the Project. Incident thereto, the following provisions will apply: a. The Contractor will follow the Tenant Selection Policy attached to the Management Plan. b. The Contractor will show the premises to prospective tenants. c. The Contractor will take and process applications for rentals. If an application is rejected, the applicant will be told the reason for rejection; and, the rejected application, with reason for rejection noted thereon, will be kept on file for one (1) year. A current list of prospective tenants will be maintained. d. The Contractor will prepare all dwelling leases and parking permits, and will execute the same in its name, identified thereon as representative for the CDC. The terms of all leases will comply with the pertinent provisions of the Regulatory Agreement, the Ilousing Assistance Payments Contract, and the directives of the Secretary. Dwelling Page 3 of 15 leases will be in a form approved by the CDC and the Secretary, but individual dwelling leases and parking permits need not be submitted for the approval of the CDC or the Secretary. e. The CDC will furnish the Contractor with rent schedules, as from time to time approved by the Secretary, showing fair -market rents, basic rents for dwelling units, and other charges for facilities and services. In no event will such fair -market rents and other charges be exceeded. Eligibility for dwelling rents that are Tess than such fair -market rents, and the amount of such lesser rents, will be determined in accordance with the Regulatory Agreement, the Housing Assistance Payments Contract, and the directives of the Secretary. f. The Contractor will counsel all prospective tenants regarding eligibility for dwelling rents that are less than fair market rents and will prepare and verify eligibility certifications and recertifications in accordance with the Regulatory Agreement, the Housing Assistance Payments Contract, and the directives of the Secretary. g. The Contractor will collect, deposit, and disburse security deposits, if required, in accordance with the terms of each tenant's lease. The amount of each security deposit will be as specified in the Management Plan. Security deposits will be deposited by the Contractor in an account, separate from all other accounts and funds, with a bank or other financial institution whose deposits are insured by an agency of the United States Government. This account will be carried in the CDC's name and designated of record as "Morgan Tower Security Deposit Account". 14. Collection of Rents and other Receipts. The Contractor will collect when due all rents, charges and other amounts receivable on the CDC's account in connection with the management and operation of the Project. Such receipts (except tenant's security deposits, which will be handled as specified in Subsection 13(g) above) will be deposited in an account, separate from all other accounts and funds, with a bank whose deposits are insured by the Federal Deposit Corporation. This account will be carried in the CDC's name and designated of record as "Morgan Tower Rental Agency Account". 15. Enforcement of Leases. The Contractor will secure full compliance by each tenant with the terms of the lease. Voluntary compliance will be emphasized; and, the Contractor, utilizing the services of the Social Services Director when available, will counsel tenants and make referrals to community agencies in cases of financial hardship or under other circumstances deemed appropriate by the Contractor, to the end that involuntary termination of tenancies may be avoided to the maximum extent consistent with sound management of the Project. Nevertheless, and subject to the pertinent procedures prescribed in the Management Plan, the Contractor may lawfully terminate any tenancy when, in the contractor's judgment, sufficient cause (including, hut not limited to, non-payment of rent) for such termination occurs under the terms of the tenant's lease. For this purpose, the contractor is authorized to consult with legal counsel to be designated by the CDC, to bring actions for eviction and to execute notices to vacate and judicial pleadings incident to such actions; provided, however, the Page 4 of 15 Conti a.,tor keeps the CDC informed of such actions and follows such instructions as the CDC's written approval, attorney fees and other necessary costs incurred in connection with such actions will be paid out of the Rental Agency Account as Project Expenses. 16. Main;,:irance and Repair. The Contractor will maintain the Project in good repair in accordance with the Management Plan and local codes, and in a condition at all times acceptable to the CDC and the Secretary, including but not limited to cleaning, painting, decorating, plumbing, carpentry, grounds care, and such other maintenance and repair work as may be necessary, subject to any limitations imposed by the CDC in addition to those contained herein. Incident thereto, the following provisions will apply: a. Special attention will be given to preventative maintenance and, to the greatest extent feasible, the services of regular maintenance employees will be used. b. Subject to the CDC's prior written approval, the Contractor will contract with qualified independent contractors for the maintenance and repair of HVAC systems and elevators, and for extraordinary repairs beyond the capability of regular maintenance employees. c. The Contractor will systematically and promptly receive and investigate all service requests from tenants, take such action thereon as may be justified and will keep records of the same. Emergency requests will be received and serviced on a twenty- four (24) hour basis. Complaints of a serious nature will be reported to the CDC in writing after investigation, within twenty-four (24) hours. The Contractor is authorized to purchase all materials, equipment, tools, appliances, supplies and services necessary to proper maintenance and repair. e. Notwithstanding any of the foregoing provisions, the prior approval of the CDC will be required for any expenditure which exceeds Five Thousand Dollars ($5,000) in any one instance for labor, materials, or otherwise in connection with the maintenance and repair of the Project, except for emergency repairs involving manifest danger to persons or property, or required to avoid suspension of any necessary service to the Project. In the latter event, the Contractor will inform the CDC of the facts as promptly as possible. 17. Utilities and Services. The Contractor will make contracts as may be necessary to secure utilities and services. 18. Employees. The Management Plan prescribes the number, qualifications and duties of the personnel to be regularly employed in the management of the Project, including a Resident Manager, a Social Services Director, and maintenance, bookkeeping, clerical, and Page 5 of 15 ,1her managerial employees. All such on -site personnel are employees of the Contractor and not of the CDC. a. As more particularly described in the Management Plan, the Resident Manager will have duties of the type usually associated with the position; and, the Social Services Director will be responsible for the conduct of the social services program for the Project. Each will be directly responsible to the Contractor's Project Manager or other officer, and neither will have authority to supervise or discharge the other. b. The compensation (including fringe benefits) of all employees will be as prescribed in the Management Plan. Compensation will be within the Contractor's sole discretion, provided minimum wage standards are met. c. Compensation (including fringe benefits) payable to the on -site management and maintenance employees, as prescribed in the Management Plan, and for all local, state, and Federal taxes and assessments (including but not limited to Social Security taxes, unemployment insurance, and workrnan's compensation insurance) incident to the employment of such personnel will be paid out of the Rental Agency Account and will be treated as Reimbursable Expenses. d. Compensation (including fringe benefits) payable to all personnel, plus all local, state, and Federal taxes and assessments incidents to the employment of such personnel will be Reimbursable Expenses, and will not be paid out of the Contractor's fee. The rental value of any dwelling unit, furnished rent-free to the staff, will be treated as a cost to the Project. 19. Disbursements from Rental Agency Account. a. From the funds collected and deposited by the contractor in the Rental Agency Account pursuant to Section 14 above, the Contractor will make the following disbursements promptly when payable: Reimbursement of the Contractor for compensation payable to the employees specified in Subsection 18(c) and (d) above, and for the taxes and assessments payable to local, state, and Federal governments in connection with the employment of such personnel. The single -aggregate payment required to be made monthly by the CDC to the Mortgagee, including the amounts due under the mortgage for principal amortization, interest, mortgage insurance premium, ground rents, taxes and assessments, fire and other hazard insurance premiums, and the amount specified by HUD for allocation to the Reserve for Replacements. 3. All sums otherwise due and payable by the CDC as expenses of the Project authorized to be incurred by the Contractor under the terns of this Page 6 of 15 Agreement, including compensation payable to the Agent, pursuant to Section 32 below, for its service hereunder. Except for the disbursements mentioned in Subsection 19(a) above, funds will be di ;horsed or transferred from the Rental Agency Account only as the CDC may from time to time direct in writing. c. In the event the balance in the Rental Agency Account is at any time insufficient to pay disbursements due and payable under Subsection 19(a) above, the Contractor will inform the CDC of that fact and CDC will then remit to the Contractor sufficient funds to cover the deficiency. 20. Budgets. Annual operating budgets for the Project will be as approved by the CDC. Except as permitted under Subsection 16(c) above, annual disbursements for each type of operating expense itemized in the budget will not exceed by more than ten percent (10%) the amount authorized by the approved budget. The Contractor will prepare a recommended operating budget for each fiscal year beginning during the term of this Agreement, and will submit the same to the CDC at least thirty (30) days before the beginning of the fiscal year. The CDC will promptly inform the Contractor of any changes incorporated in the approved budget, and the Agent will keep the CDC informed of any anticipated deviation from the receipts or disbursements stated in the approved budget. 21. Records and Reports. In addition to any requirements specified in the Management Plan or in other provisions of this Agreement, the Contractor will have the following responsibilities with respect to records and reports. a. The Contractor will establish and maintain a comprehensive system of records, books, and accounts in a manner conforming to the directives of thc Secretary, and otherwise satisfactory to the CDC and the Consenting Parties. All records, hooks, and accounts will be subject to examination at reasonable hours by any authorized representative of the CDC or either of the Consenting Parties. b. With respect to each fiscal year ending during the term of this Agreement, thc contractor will have an annual financial report, prepared by a Certified Public Accountant or other person acceptable to the CDC and Secretary, based upon the preparer's examination of the books and records of the CDC and the Contractor. The report will be prepared in accordance with the directives of the Secretary, will be certified by the preparer and the Contractor, and will be submitted to the CDC within sixty (60) days after the end of the fiscal year, for the CDC's further certification and submission to the Secretary and the Mortgagee. Compensation for the preparer's services will be paid out of the Rental Agency Account as Reimbursable Expense. c. Contractor will prepare a monthly report comparing actual and budgeted figures for receipts and disbursements and will submit each such report to the CDC within fifteen (15) days after the end of the quarter covered. Page7of15 The Contractor will furnish such information (including occupancy reports) as may be requested by the CDC from time to time with respect to the financial, physical, or operational condition of the Project. The Contractor will prepare, on a monthly basis, Form HUD-52670, Housing Contractor's Certification for Housing Assistance Payments and Form HUD- 52670A, New Construction and Substantial Rehabilitation Schedule of Housing Assistance Payments, and will submit the same to the appropriate Area or Insuring Office of the Department of Housing and Urban Development. Such payments will be deposited to the Rental Agency Account. f. By the fifteenth (15`t1) day of each month, the Contractor will furnish the CDC with an itemized list of all delinquent accounts, including rental accounts, as the tenth (10th) day of the same month. By the fifteenth (15 r) day of each month, the Contractor will furnish the CDC with a statement of receipts and disbursements during the previous month, and with a schedule of accounts receivable and payable, and reconciled bank statements for the Rental Agency Account and Deposit Account, upon request, as of the end of the previous month. g. h. If the Project does not sustain a 95% occupancy, and the rental collections plus HUD subsidy fall below operating expenses for a sustained period of sixty (60) days, the Contractor will immediately send written notification of the same to the appropriate HUD Area/Insuring Office, copying the CDC. Except as otherwise provided in this Agreement, all off -site bookkeeping, not clerical, and other management overhead expenses (including but not limited to costs of office supplies and equipment, data processing services, transportation for managerial personnel, and telephone services) will be borne by the Contractor out of its own funds and will not be treated as Reimbursable Expense. 22. Dishonesty Bonds. The Contractor will furnish, at its own expense, a dishonesty bond in the principal sum of Two Hundred and Fifty Thousand Dollars (S250,000), which is at least equal to the gross potential income for two (2) months and is conditioned to protect the CDC and the Consenting Parties against misappropriation of Project funds by the Contractor and its employees. 23. Bids and Purchase Discounts, Rebates and Commissions. The CDC and Contractor agree to obtain contract materials, supplies and services at the lowest possible cost and on the terms most advantageous to the Project and to secure and credit to the Project all discounts, rebates or commissions obtainable with respect to purchases, service contracts and other transactions on behalf of the Project. The CDC and the Contractor agree that all goods and services purchased from individuals or companies having an identity of interest with the CDC or Page 8 of 15 Contractor shall be purchased at costs not in excess of those that would be incurred in making arms -length purchases on the open market. The Contractor shall solicit written estimates (i.e., bids) from at least three (3) contractors or suppliers for any work item defined as a "Public Project" under Section 20161 of the California Public Contract Code which the CDC or the Director estimates will cost $5,000 or more. The Contractor agrees to accept the bid which represents the lowest price, taking into consideration the bidder's reputation for quality of workmanship or materials, timely performance and the time frame within which the service or goods are needed. For any contract or on -going supply or service arrangement obtainable from more than one source and estimated to cost less than $15,000, the Contractor shall solicit written cost estimates, as necessary, to assure that the Project is obtaining services, supplies and purchases at the lowest possible cost. Copies of all required bids and documentation of all other written or verbal cost comparisons made by the Contractor shall be made part of the Project's records and shall be retained for three (3) years from the date the work was completed. This documentation shall be subject to inspection by the Secretary or his/her designee and the Contractor agrees to submit such documentation upon request. The Contractor further agrees to include the following clause in any contract entered into with an identity -of -interest firm for provision of goods or services to the Project, the cost of which services are to be Reimbursable Expenses: "Upon request by the CDC/Contractor or the Secretary, (name of contractor or supplier) will make available to the Secretary at a reasonable time and place; (name of contractor or supplier's) records which relate to goods or services provided to the Project." The Contractor agrees to request such records from the contractor or supplier within seven (7) days of receipt of a written request from the CDC. 24. Social Service Program. The Contractor will he responsible to the CDC for carrying out the social services program described in the Management Plan. 25. Tenant -Management Relations. The Contractor will encourage and assist residents of the Project in forming and maintaining representative organizations to promote their common interests, and will maintain good -faith communication with such organizations to the end that problems affecting the Project and its residents may be avoided or solved on the basis of mutual self-interest. 26. On -Site Management Facilities. Subject to the further agreement of the CDC and Contractor as to more specific terms, the Contractor will maintain a management office at the adjacent Kimball Tower; and, staff (Note: The staff may be the same for Kimball Tower) will reside in several of the dwelling units in the Project; and the CDC will make no rental charge for the same. 27. Insurance. The CDC will inform the Contractor of insurance over and above what is required in Section 30 of this Agreement to be carried with respect to the Project and its operations, and the Agent will cause such insurance to be placed and kept in effect at all times. The Contractor will pay premiums out of the Rental Agency Account, and premiums Page 9 of 15 he treated as operating expenses. All insurance will be placed with such companies, on such conditions, in such amounts, and with such beneficial interests appearing thereon as shall be acceptable to the CDC and Consenting Parties. The Contractor will investigate and furnish the Owner with full reports as to all accidents, claims, and potential claims for damage relating to the Project, and will cooperate with the CDC's insurers in connection ,'rewith. 28. Hold Harmless. The Contractor agrees to indemnify, defend, and hold harmless the CDC, its officers, employees and volunteers, against and from any and all liability, loss, damage to property, injuries to, or death of any person or persons, and all claims, demands, suits, actions, proceedings, costs or attorney's fees, of any kind or nature, including workers' compensation claims, of or by anyone whomsoever, in any way resulting from or arising out of the Contractor's performance of this Agreement. 29. Workers' Compensation. The Contractor shall comply with all of the provisions of the Worker's Compensation Insurance and Safety Acts of the State of California, the applicable provisions of Division 4 and 5 of the California Government Code and all amendments thereto; and all similar State or Federal acts or laws applicable; and shall indemnify, defend and hold harmless the CDC and its officers, employees and volunteers from any against all claims, demands, payments, suits, actions, proceedings and judgments of every nature and description, including attorney's fees and costs presented, brought or recovered against the CDC or its officers, employees, volunteers, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by the Contractor under this Agreement. 30. Insurance. The Contractor shall purchase and maintain, throughout the term of this agreement, the following insurance policies. Items b and c to be reimbursed from the Rental Agency Account. a. Automobile insurance covering all bodily injury and property damage incurred during the performance of this Agreement, with a minimum coverage of $500,000 combined single limit per accident. Such automobile insurance shall include non -owned vehicles. b. Comprehensive general liability insurance, with minimum limits of S1,000,000 combined single limit per occurrence, covering all bodily injury and property damage arising out of its operation under this Agreement. c. Workers' compensation insurance covering all of its employees and volunteers. d. The aforesaid policies shall, with respect to Morgan Tower, constitute primary insurance as to the CDC, its officers, employees, and volunteers, so that any other policies held by the CDC shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior written notice to the CDC of cancellation or material change. Page 10 of 15 e. Said policies, except for worker's compensation, shall name the CDC and its officers, agents and employees as additional insureds. g. "I his Agreement shall not take effect until certificate(s) or other sufficient proof that these insurance provisions have been compiled with, are filed with and approved by the CDC/City's Risk Manager. If the Contractor does not keep all of such insurance policies in full force and effect at all times during the terms of this Agreement, the CDC may elect to treat the failure to maintain the requisite insurance as a breach of this Agreement and terminate the Agreement as provided herein. If required insurance coverage is provided on a "claims made" rather than "occurrence" form, the Contractor shall maintain such insurance coverage for three years after expiration of the term (and any extensions) of this Agreement. Any aggregate insurance limits must apply solely to this Agreement. 31. Compliance with Government Orders. The Contractor will take such actions as may be necessary to comply promptly with any and all governmental orders or other requirements affecting the Project, whether imposed by Federal, State, County or Municipal authority (subject, however, to the limitation stated in Subsection 16(e) with respect to repairs.) Nevertheless, the Contractor shall take no such action so long as the CDC is contesting, or has affirmed its intention to contest, any such order or requirements. The Contractor will notify the CDC in writing of all notices of such orders or other requirements, within seventy- two (72) hours from the time of receipt. 32. Contractor's Compensation. The Contractor will be compensated for its services under this Agreement by monthly fees, in accordance with HUD procedures, to be paid out of the Rental Agency Account. Such fees will be payable on the last day of each month beginning July, 2012, until terminated. a. Each such monthly fee will be in an amount equal to xxxx percent (0.00%) of gross collections received during the preceding month. Gross collections include rental income, housing Assistance Payments, and income from other sources such as coin - operated laundry equipment. The percentage fee stipulated in Section 31(a) may be increased by xxxxx of xxx percent (xx%) (Example: a fee of x% of gross collections could be increased to xx%) on the annual anniversary date of this Agreement if HUD approves the CDC's written request, based upon its determination that the Contractor's performance has been of superior quality. Such requests are not automatically approved and may not be implemented without written authorization from the HUD Area/Insuring office having jurisdiction over the Project mortgage. Page 11 of 15 Agreement. This Agreement shall be in effect for a period of twelve (12) months. iris Agreement is subject to the following conditions: a. At the sole discretion of the City Manager, this agreement may be extended by two, two- year extensions (for a maximum of five years). b. This Agreement may be terminated with or without cause by the City. Termination without cause shall be effective only upon 60-day written notice to the Contractor. During said 60-day period, the Contractor shall perform all services in accordance with this Agreement. c. This Agrccment may also be terminated immediately by the City for cause in the event of a material breach of this Agreement, misrepresentation by the Contractor in connection with the formation of this Agreement or the performance of services, or the failure to perform services as directed by the City. d. In the event a petition in bankruptcy is filed by or against either of the Principal Parties, or in the event either makes an assignment for the benefit of creditors or takes advantage of any involvency act, the other party may terminate this Agreement upon ten (10) days notice to the other. e. Upon termination, any cash will be immediately turned over to the CDC. In addition, the Contractor will submit to the CDC any financial statements required and, after each has accounted to the other with respect to all matters outstanding as of the date of termination, the CDC will furnish the Contractor security, in form and principal amount satisfactory to the Contractor, against any obligations or liabilities the Contractor may properly have incurred on behalf of the CDC hereunder. f. Termination with or without cause shall be effected by delivery of written Notice of Termination to the Contractor as provided for herein. 34. Other Consideration. Nothing contained herein shall prevent the Contractor from carrying on its usual business, including the performance of other additional services for the CDC, should the CDC desire additional services, nor from performing similar services for other agencies, cities, districts or public or private entities. 35. Legal Fees. If any party brings a suit or action against the other party arising from any breach of contract of any covenants or agreements or any inaccuracies in any of the representations and warranties on the part of the other party arising out of this Agreement, then in the event, the prevailing party in such action or dispute, whether by final judgment or out -of -court settlement, shall be entitled to have and recover of and from other party all costs and expenses of suit, including actual attorney's fees. 36. Mediation/Arbitration. If a dispute arises out of or relates to this Agreement, or the breach thereof, the parties agree first to try, in good faith, to settle the dispute by mediation in San Page 12 of 15 Diego, California, in accordance with the Commercial Mediation Rules of the American Arbitration Association ("AAA") before resorting to arbitration. The costs of mediation shall be borne equally by the parties. Any controversy or claim arising out of, or relating to, this Agreement, or breach thereof, which is not resolved by mediation shall be settled by arbitration in San Diego, California, in accordance with the Commercial Arbitration Rules of the AAA as they exist. Any award rendered shall be final and conclusive upon the parties, and a judgment thereon may be entered in any controversy. The expenses of the arbitration shall be borne equally by the parties to the arbitration, provided that each party shall pay for and bear the costs of its own experts, evidence and attorney's fees, except that the arbitrator may assess such expenses or any part thereof against a specified party as part of the arbitration award. 37. Termination for Default. All of the terms, conditions, and covenants of this Agreement are considered material and in the event the Contractor breaches or defaults in the performance of any such terms, conditions, or covenants which are to be kept, done, or performed by it, the CDC may give the Contractor fifteen (15) days' written notice setting forth such breach of default; and if the Contractor fails, neglects or refuses for a period of more than fifteen (15) days thereafter to remedy, make good, or perform such breach or default, the CDC, without further notice, may cancel this Agreement. 38. Notices. All Notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered; or sent by overnight mail (Federal Express or the like); or sent by registered or certified mail, postage prepaid, return receipt requested; or sent by ordinary mail, postage prepaid; or telegraphed or cabled; or delivered or sent by telex, telecopy, facsimile; and shall be deemed received upon the earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if sent by overnight mail, the business day following its deposit in such overnight mail facility, (iii) if mailed by registered, certified or ordinary mail, five (5) days if the address is outside the State of California, after the date of deposit in a post office, mailbox, mail chute, or other like facility regularly maintained by the United States Postal Service, (iv) if given by telegraph or cable, when delivered to the telegraph company with charges prepaid, or (v) if given by telex, telecopy, facsimile, when sent. Any notice, request, demand, direction or other communication delivered or sent as specified above shall be directed to the following persons: To CDC: Leslie Deese, Assistant City Manager Community Development Commission of the City of National City 1243 National City Boulevard, National City, CA 91950 To Contractor: Page 13 of 15 Notice of change of address shall be given by written notice in the manner specified in this Section. Rejection or other refusal to accept or the inability to delivery because of changed address of which no notice was given shall be deemed to constitute receipt of notice, demand, request or communication sent. Any notice, request, demand, direction or other communication sent by cable, telex, telecopy or facsimile must be confirmed within forty- eight (48) hours by letter mailed or delivered as specified in this Section. 39. Miscellaneous Provisions. a. Computation of Time Periods. If any date or time period provided for in this Agreement is or ends on a Saturday, Sunday or Federal, or State or legal holiday, then such date shall automatically be extended until 5:00 p.m. Pacific Time of the next day which is not a Saturday, Sunday or Federal, State or legal holiday. b. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute hut one and the same instrument. c. Captions. Any captions to, or headings of, the sections or subsections of this Agreement are solely for the convenience of the parties hereto, are not a part of this Agreement, and shall not be used for the interpretation or determination of the validity of this Agreement of any provision hereof. d. No Obligations to Third Parties. Except as otherwise expressly provided herein, the execution and delivery of this Agreement shall not be deemed to confer any rights upon, or obligate any of the parties hereto, to any person or entity other than the parties hereto. e. Exhibits and Schedules. The Exhibits and Schedules attached hereto as hereby incorporated herein by this reference for all purposes. f. Amendment to this Agreement. The terms of this Agreement may not be modified or amended expect by an instrument in writing executed by each of the parties hereto. g. Waiver. The waiver or failure to enforce any provision of this Agreement shall not operate as a waiver of any future breach of any such provision of any provision hereof. h. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Entire Agreement. This Agreement supersedes any prior agreements, negotiations and communications, oral or written, and contains the entire agreement between the parties as to the subject matter hereof. No subsequent agreement, representation, or Page 14 of 15 promise made by either party hereto, or by or to an employee, officer, agent or representative of any party hereto shall be of any effect unless it is in writing and executed by the party to be bound thereby. .'!eccessors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the parties hereto. Construction. The parties acknowledge and agree that (i) each party is of equal bargaining strength, (ii) each party as actively participated in the drafting, preparation and negotiation of this Agreement, (iii) each such party has consulted with or has had the opportunity to consult with its own, independent counsel and such other professional advisors as such party has deemed appropriate, relative to any and all matters contemplated under this Agreement, (v) each party has agreed to enter into this Agreement following such review and the rendering of such advice, and (vi) any rule or construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement, or any portions hereof, or any amendments hereto. IN WITNESS WHEREOF, the Principal Parties, by their duly authorized officers, have executed this Agreement on the date first above written. COMMUNITY DEVELOPMENT COMMISSION OF TIIE CITY OF NATIONAL CITY By APPROVED AS TO FORM: Claudia Gacitua Silva, City Attorney By: , President By: Attachment: Exhibit "A" - Management Plan Page 15 of 15 KIMBALL TOWER MANAGEMENT AGREEMENT his 1grPement is made this day of , 2012, between the Community Development y:onunission of the City of National City (owner) hereinafter referred to as "CDC" and , Inc. hereinafter referred to as "Contractor". 1. Definitions As used in this Agreement: a. "Contractor" is , Inc.. b. Community Development Commission of the City of National City ("CDC") is Owner. c. "Principal Parties" means the CDC and the Contractor. d. "Consenting Parties" means the Secretary and the Mortgagee. e. "Reimbursable Expense" means any expenditure incurred by the Contractor, which shall be reimbursed to the Contractor from the Rental Agency Account. f. "Rental Agency Account" means the account described in Section 13. 2. Appointment and Acceptance. The CDC appoints the Contractor as exclusive representative for the management of the property described in Section 8 of this Agreement; and, the Contractor accepts the appointment, subject to the terms and conditions set forth in this Agreement 3. Independent Contractor. Both parties hereto in the performance of this Agreement will be acting in an independent capacity and not as agents, employees, partners or joint ventures with one another. This Agreement contemplates the personal services of the Contractor and the Contractor's employees, and it is recognized by the parties that a substantial inducement to the CDC for entering into this Agreement was, and is, the professional reputation and competence of the Contractor and its employees. Neither this Agreement nor any interest herein may be assigned by the Contractor without the prior written consent of the CDC. Nothing herein contained is intended to prevent the Contractor from employing or hiring as many employees as the Contractor may deem necessary for the proper and efficient performance of this Agreement. 4. Control. Neither the CDC nor its officers, agents or employees shall have any control over the conduct of the Contractor or any of the Contractor's employees except as herein set forth, and the Contractor expressly agrees not to represent that the Contractor or the Contractor's agents, servants, or employees are in any manner agents, servants, and employees of the CDC, it being understood that the Contractor, its agents, servants, and employees are as to the CDC wholly independent contractors and that the Contractor's obligations to the CDC are solely such as are prescribed by this Agreement. Page 1 of 14 5. Contractor referred to as Agent. Not withstanding Contractor's status as an independent contractor, the parties acknowledge that in its dealings with agencies of the federal government, Contractor may from time to time be referred to as the "Agent" of the CDC 6. Compliance with Applicable Law. The Contractor, in the performance of the services to be provided herein, shall comply with all State and Federal statutes and regulations, and all ordinances, rules and regulations of the City of National City whether now in force or subsequently enacted. The Contractor, and its subcontractors, shall obtain a current City of National City business license prior to performing any work within the City. 7. Non -Discrimination Provisions. The Contractor will not discriminate against any employee or applicant for employment because of age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. The Contractor will take positive action to insure that applicants are employed without regard to their age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. Such action shall include but not be limited to the following: employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places available to employees and applicants for employment any notices provided by the CDC setting forth the provisions of this non-discrimination clause. 8. Description of Project. This property ("Project") to be managed by the Contractor under this Agreement is a housing development consisting of the land, building, and other improvements that made up the Project further described as follows: Kimball Tower 1317 "D" Avenue City of National City, County of San Diego, State of California Consisting of 151 dwelling units 9. Management Plan. Attached hereto as Exhibit "A" and incorporated herein, is a copy of the Management Plan for the Project, which provides a comprehensive and detailed description of the policies and procedures to be followed in the management of the Project. In many of its provisions, this Agreement briefly defines the nature of the Contractor's obligations, with the intention that reference be made to the Management Plan for more detailed policies and procedures. Accordingly, the CDC and the Contractor will comply with all applicable provisions of the Management Plan, regardless of whether specific reference is made thereto in any particular provision of this Agreement. 10. Basic Information. As soon as possible, the CDC will furnish the Agent with complete set of plans and specifications and copies of all guaranties and warranties pertinent to construction, fixtures, and equipment. With the aid of this information and through Page 2 of 14 ' spection by competent personnel, the Agent will thoroughly familiarize itself with the character, location, construction, layout, plan and operation of the Project, and especially the electrical, heating, plumbing, air-conditioning and ventilating systems, the elevators, and all other mechanical equipment. ',racketing. The Contractor will carry out the marketing activities prescribed in the Management Plan, observing all requirements of the Affirmative Marketing Plan. Advertising expenses will be paid out of the Rental Agency Account as Project expenses. 12. Rentals. The Contractor will offer for rent and will rent the dwelling units, and other rental facilities and concessions in the Project. Incident thereto, the following provisions will apply: a. The Contractor will follow the Tenant Selection Policy attached to the Management Plan. b. The Contractor will show the premises to prospective tenants. c. The Contractor will take and process applications for rentals. If an application is rejected, the applicant will be told the reason for rejection; and, the rejected application, with reason for rejection noted thereon, will be kept on file for one (1) year. A current list of prospective tenants will be maintained. d. The Contractor will prepare all dwelling leases and parking permits, and will execute the same in its name, identified thereon as representative for the CDC. Dwelling leases will be in a form approved by the CDC, but individual dwelling leases and parking permits need not be submitted for the approval of the CDC or the Secretary. e. The CDC will furnish the Contractor with rent schedules, as from time to time approved by the Secretary, showing fair -market rents, basic rents for dwelling units, and other charges for facilities and services. In no event will such fair -market rents and other charges be exceeded. Eligibility for dwelling rents that are less than such fair -market rents, and the amount of such lesser rents, will he determined in accordance with the requirements established by the CDC. f. The Contractor will counsel all prospective tenants regarding eligibility for dwelling rents that are less than fair market rents and will prepare and verify eligibility certifications and recertifications in accordance with the requirements established by the CDC. g. The Contractor will collect, deposit, and disburse security deposits, if required, in accordance with the terms of each tenant's lease. The amount of each security deposit will be as specified in the Management Plan. Security deposits will be deposited by the Contractor in an account, separate from all other accounts and funds, with a bank or other financial institution whose deposits are insured by an agency of Page 3 of 14 the United States Government. This account will be carried in the CDC's name and designated of record as "Kimball Tower Security Deposit Account". 13. Collection of Rents and other Receipts. The Contractor will collect when due all rents, charges and other amounts receivable on the CDC's account in connection with the management and operation of the Project. Such receipts (except tenant's security deposits, which will be handled as specified in Subsection 12(g) above) will be deposited in an account, separate from all other accounts and funds, with a bank whose deposits are insured by the Federal Deposit Corporation. This account will be carried in the CDC's name and designated of record as "Kimball Tower Rental Agency Account". 14. Enforcement of Leases. The Contractor will secure full compliance by each tenant with the terms of the lease. Voluntary compliance will be emphasized; and, the Contractor, utilizing the services of the Social Services Director when available, will counsel tenants and make referrals to community agencies in cases of financial hardship or under other circumstances deemed appropriate by the Contractor, to the end that involuntary termination of tenancies may be avoided to the maximum extent consistent with sound management of the Project. Nevertheless, and subject to the pertinent procedures prescribed in the Management Plan, the Contractor may lawfully terminate any tenancy when, in the contractor's judgment, sufficient cause (including, but not limited to, non-payment of rent) for such termination occurs undcr the terms of the tenant's lease. For this purpose, the contractor is authorized to consult with legal counsel to be designated by the CDC, to bring actions for eviction and to execute notices to vacate and judicial pleadings incident to such actions; provided, however, the Contractor keeps the CDC informed of such actions and follows such instructions as the CDC's written approval, attorney fees and other necessary costs incurred in connection with such actions will be paid out of the Rental Agency Account as Project Expenses. 15. Maintenance and Repair. The Contractor will maintain the Project in good repair in accordance with the Management Plan and local codes, and in a condition at all times acceptable to the CDC, including but not limited to cleaning, painting, decorating, plumbing, carpentry, grounds care, and such other maintenance and repair work as may be necessary, subject to any limitations imposed by the CDC in addition to those contained herein. Incident thereto, the following provisions will apply: a. Special attention will be given to preventative maintenance and, to the greatest extent feasible, the services of regular maintenance employees will be used. b. Subject to the CDC's prior written approval, the Contractor will contract with qualified independent contractors for the maintenance and repair of HVAC systems and elevators, and for extraordinary repairs beyond the capability of regular maintenance employees. c. The Contractor will systematically and promptly receive and investigate all service requests from tenants, take such action thereon as may be justified and will keep Page 4 of 14 .cords of the same. Emergency requests will be received and serviced on a twenty - tour (24) hour basis. Complaints of a serious nature will be reported to the CDC in writing after investigation, within twenty-four (24) hours. ire Contractor is authorized to purchase all materials, equipment, tools, appliances, ,,plies and services necessary to proper maintenance and repair. e. Notwithstanding any of the foregoing provisions, the prior approval of the CDC. will be required for any expenditure which exceeds Five Thousand Dollars ($5,000) in any one instance for labor, materials, or otherwise in connection with the maintenance and repair of the Project, except emergency repairs involving manifest danger to persons or property, or required to avoid suspension of any necessary service to the Project. In the latter event, the Contractor will inform the CDC of the facts as promptly as possible. 16. Utilities and Services. The Contractor will make contracts as may be necessary to secure utilities and services. 17. Employees. The Management Plan prescribes the number, qualifications and duties of the personnel to be regularly employed in the management of the Project, including a Resident Manger, a Social Services Director, and maintenance, bookkeeping, clerical, and other managerial employees. All such on -site personnel will be employees of the Contractor and not of the CDC. a. As more particularly described in the Management Plan, the Resident Manager will have duties of the type usually associated with the position; and, the Social Services Director will be responsible for the conduct of the social services program for the Project. Each will be directly responsible to the Contractor's Project Manager or other officer, and neither will have authority to supervise or discharge the other. b. The compensation (including fringe benefits) of all employees will be as prescribed in the Management Plan and within the Contractor's sole discretion, provided minimum wage standards are met. c. Compensation (including fringe benefits) payable to the on -site management and maintenance employees, as prescribed in the Management Plan, and for all local, state, and Federal taxes and assessments (including but not limited to Social Security taxes, unemployment insurance, and workman's compensation insurance) incident to the employment of such personnel will be paid out of the Rental Agency Account and will be treated as Reimbursable Expenses. d. Compensation (including fringe benefits) payable to all personnel, plus all local, state, and Federal taxes and assessments incidents to the employment of such personnel will be Reimbursable Expenses, and will not be paid out of the Page 5 of 14 Contractor's fee. The rental value of any dwelling unit, furnished rent-free to the staff, will be treated as a cost to the Project. 18. Disbursements from Rental Agency Account. a. From the funds collected and deposited by the contractor in the Rental Agency Account pursuant to Section 13 above, the Contractor will make the following disbursements promptly when payable: Reimbursement of the Contractor for compensation payable to the employees specified in Subsection 17(c) and (d) above, and for the taxes and assessments payable to local, state, and Federal governments in connection with the employment of such personnel. ii. All sums otherwise due and payable by the CDC as expenses of the Project authorized to be incurred by the Contractor under the terms of this Agreement, including compensation payable to the Agent, pursuant to Section 30 below, for its service hereunder. b. Except for the disbursements mentioned in Subsection 18(a) above, funds will be disbursed or transferred from the Rental Agency Account only as the CDC may from time to time direct in writing. c. In the event the balance in the Rental Agency Account is at any time insufficient to pay disbursements due and payable under Subsection 18(a) above, the Contractor will inform the CDC of that fact and CDC will then remit to the Contractor sufficient funds to cover the deficiency. 19. Budgets. Annual operating budgets for the Project will be as approved by the CDC. Except as permitted under Subsection 15(e) above, annual disbursements for each type of operating expenses -itemized in the budget will not exceed the amount authorized by the approved budget. The Contractor will prepare a recommended operating budget for each fiscal year beginning during the term of this Agreement, and will submit the same to the CDC at Least thirty (30) days before the beginning of the fiscal year. The CDC will promptly inform the Contractor of any changes incorporated in the approved budget, and the Agent will keep the CDC informed of any anticipated deviation from the receipts or disbursements stated in the approved budget. 20. Records and Reports. In addition to any requirements specified in the Management Plan or in other provisions of this Agreement, the Contractor will have the following responsibilities with respect to records and reports. a. The Contractor will establish and maintain a comprehensive system of records, books, and accounts in a manner conforming to the directives of the Secretary, and otherwise satisfactory to the CDC and the Consenting Parties. All records, books, Page 6 of 14 and accounts will be subject to examination at reasonable hours by any authorized representative of the CDC or either of the Consenting Parties. With respect to each fiscal year ending during the term of this Agreement, the contractor will have an annual financial report, prepared by a Certified Public Accountant or other person acceptable to the CDC, based upon the preparer's examination of the hooks and records of the CDC and the Contractor. The report will be prepared in accordance with the directives of the CDC, will be certified by the preparer and the Contractor, and will be submitted to the CDC within sixty (60) days after the end of the fiscal year, for the CDC's further certification and submission to the Secretary and the Mortgagee. Compensation for the preparer's services will be paid out of the Rental Agency Account as a Reimbursable Expense of the Project. c. The Contractor will prepare a monthly report comparing actual and budgeted figures for receipts and disbursements and will submit each such report to the CDC within fifteen (15) days after the end of the quarter covered. d. The Contractor will furnish such information (including occupancy reports) as may he requested by the CDC from time to time with respect to the financial, physical, or operational condition of the Project. e. By the fifteenth (15th) day of each month, the Contractor will furnish the CDC with an itemized list of all delinquent accounts, including rental accounts, as the tenth (10`h) day of the same month. f. By the fifteenth (15th) day of each month, the Contractor will furnish the CDC with a statement of receipts and disbursements during the previous month, and with a schedule of accounts receivable and payable; and reconciled hank statements for the Rental Agency Account and Deposit Account upon request as of the end of the previous month. g• Except as otherwise provided in this Agreement, all off -site bookkeeping, not clerical, and other management overhead expenses (including but not limited to costs of office supplies and equipment, data processing services, postage, transportation for managerial personnel, and telephone services) will be borne by the Contractor out of their own funds and will not be treated as Reimbursable Expenses. 21 Dishonesty Bonds. The Contractor will furnish, at its own expense, a dishonesty bond in the principal sum of Two Hundred Fifty Thousand Dollars ($250,000), which is at least equal to the gross potential income for two (2) months and is conditioned to protect the CDC and the Consenting Parties against misappropriation of Project funds by the Contractor and its employees. Page 7 of 14 22. Bids and Purchase Discounts, Rebates and Commissions. The CDC and Contractor agree to obtain contract materials, supplies and services at the lowest possible cost and on the terms most advantageous to the Project and to secure and credit to the Project all discounts, rebates or commissions obtainable with respect to purchases, service contracts and other transactions m bel,alf of the Project. The CDC and the Contractor agree that all goods and services purchased from individuals or companies having an identity of interest with the CDC, or Contractor shall be purchased at costs not in excess of those that would be incurred in making arms -length purchases on the open market. The Contractor shall solicit written estimates (i.e., bids) from at least three (3) contractors or suppliers for any work item which the CDC or the Director estimates will cost S5,000 or more and for any contract or on -going supply or service arrangement (except for utilities) which is estimated to exceed $15,000 per year. The Contractor agrees to accept the bid which represents the lowest price, taking into consideration the bidder's reputation for quality of workmanship or materials, timely performance and the time frame within which the service or goods are needed. For any contract or on -going supply or service arrangement obtainable from more than one source and estimated to cost less than S15,000, the Contractor shall solicit written cost estimates, as necessary, to assure that the Project is obtaining services, supplies and purchases at the lowest possible cost. Copies of all required bids and documentation of all other written or verbal cost comparisons made by the Contractor shall be made part of the Project's records and shall be retained for three (3) years from the date the work was completed. This documentation shall be subject to inspection by the CDC and the Contractor agrees to submit such documentation upon request. The Contractor further agrees to include the following clause in any contract entered into with an identity -of -interest firm for provision of goods or services to the Project, the cost of which services are to be Reimbursable Expenses: "Upon request by the CDC/Contractor, (name of contractor or supplier) will make available to the CDC at a reasonable time and place; (name of contractor or supplier's) records which relate to goods or services provided to the Project." The Contractor agrees to request such records from the contractor or supplier within seven (7) days of receipt of a written request from the CDC. 23. Social Service Program. The Contractor will be responsible to the CDC for carrying out the social services program described in the Management Plan. 24. Tenant -Management Relations. The Contractor will encourage and assist residents of the Project in forming and maintaining representative organizations to promote their common interests, and will maintain good -faith communication with such organizations to the end that problems affecting the Project and its residents may be avoided or solved on the basis of mutual self-interest. 25. On -Site Management Facilities. Subject to the further agreement of the CDC and Contractor as to more specific terms, the Contractor will maintain a management office within the Project and staff will reside in several of the dwelling units in the Project, and the Owner will make no rental charge for the same. (Note: The staff may be the same for Morgan Tower. Page 8 of 14 26. Hold Harmless. The Contractor agrees to indemnify, defend, and hold harmless the CDC, its officers, employees and volunteers, against and from any and all liability, loss, damage to property, injuries to, or death of any person or persons, and all claims, demands, suits, actions, proceedings, costs or attorney's fees, of any kind or nature, including workers' .impensation claims, of or by anyone whomsoever, in any way resulting from or arising out of the Contractor's performance of this Agreement. 27. Workers' Compensation. The Contractor shall comply with all of the provisions of the Worker's Compensation Insurance and Safety Acts of the State of California, the applicable provisions of Division 4 and 5 of the California Government Code and all amendments thereto; and all similar State or Federal acts or laws applicable; and shall indemnify, defend and hold harmless the CDC and its officers, employees and volunteers from any against all claims, demands, payments, suits, actions, proceedings and judgments of every nature and description, including attorney's fees and costs presented, brought or recovered against the CDC or its officers, employees, volunteers, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by the Contractor under this Agreement. 28. Insurance. The Contractor shall purchase and maintain, throughout the term of this agreement, the following insurance policies. Only items b and c to be reimbursed from Rental Agency Account. a. Automobile insurance covering all bodily injury and property damage incurred during the performance of this Agreement, with a minimum coverage of $500,000 combined single limit per accident. Such automobile insurance shall include non -owned vehicles. b. Comprehensive general liability insurance, with minimum limits of $1,000,000 combined single limit per occurrence, covering all bodily injury and property damage arising out of its operation under this Agreement. c. Workers' compensation insurance covering all of its employees and volunteers. d. The aforesaid policies shall, with respect to Kimball Tower, constitute primary insurance as to the CDC, its officers, employees, and volunteers, so that any other policies held by the CDC shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior written notice to the CDC of cancellation or material change. e. Said policies, except for worker's compensation, shall name the CDC and its officers, agents and employees as additional insureds. f. This Agreement shall not take effect until ccrtificate(s) or other sufficient proof that these insurance provisions have been compiled with, are filed with and approved by Page 9 of 14 the CDC/City's Risk Manager. If the Contractor does not keep all of such insurance policies in full force and effect at all times during the terms of this Agreement, the CDC may elect to treat the failure to maintain the requisite insurance as a breach of this Agreement and terminate the Agreement as provided herein. g. If required insurance coverage is provided on a "claims made" rather than "occurrence" form, the Contractor shall maintain such insurance coverage for three years after expiration of the term (and any extensions) of this Agreement. h. Any aggregate insurance limits must apply solely to this Agreement. 29. Compliance with Government Orders. The Contractor will take such actions as may be necessary to comply promptly with any and all governmental orders or other requirements affecting the Project, whether imposed by Federal, State, County or Municipal authority, subject, however, to the limitation stated in Subsection 15(e) with respect to repairs. Nevertheless, the Contractor shall take no such action so long as the CDC is contesting, or has affirmed its intention to contest, any such order or requirements. The Contractor will notify the CDC in writing of all notices of such orders or other requirements, within seventy- two (72) hours from the time of receipt. 30. Contractor's Compensation. The Contractor will be compensated for its services under this Agreement by monthly fees, in accordance with HUD procedures, to be paid out of the Rental Agency Account. Such fees will be payable on the last day of each month beginning July 1, 2012, until terminated. a. Each such monthly fee will be in an amount equal to xx percent (0%) of gross collections received during the preceding. Gross collections include rental income, (lousing Assistance Payments, and income from other sources such as coin -operated laundry equipment. The percentage fee stipulated in Section 30(a) may be increased by X percent (X%) (example: a fee of x% of gross collections could be increased to x%) on the annual anniversary date of this Agreement with CDC approval. 31 Term of Agreement. This Agreement shall be in effect for a period of twelve (12) months. This Agreement is subject to the following conditions: a. At the sole discretion of the City Manager, this agreement may be extended by two, two- year extensions (for a maximum of five years). b. This Agreement may be terminated with or without cause by the City. Termination without cause shall be effective only upon 60-day written notice to the Contractor. During said 60-day period, the Contractor shall perform all services in accordance with this Agreement. Page 10 of 14 -His Agreement may also be terminated immediately by the City for cause in the event of a material breach of this Agreement, misrepresentation by the Contractor in connection with the formation of this Agreement or the performance of services, or the failure to perform services as directed by the City. the event a petition in bankruptcy is filed by or against either of the Principal Parties, or in the event either makes an assignment for the benefit of creditors or takes advantage of any involvency act, the other party may terminate this Agreement upon ten (10) days notice to the other. c. Upon termination, any cash will be immediately turned over to the CDC. In addition, the Contractor will submit to the CDC any financial statements required and, after each has accounted to the other with respect to all matters outstanding as of the date of termination, the CDC will furnish the Contractor security, in form and principal amount satisfactory to the Contractor, against any obligations or liabilities the Contractor may properly have incurred on behalf of the CDC hereunder. d. Termination with or without cause shall be effected by delivery of written Notice of Termination to the Contractor as provided for herein. 32. Other Consideration. Nothing contained herein shall prevent the Contractor from carrying on its usual business, including the performance of other additional services for the CDC, should the CDC desire additional services, nor from performing similar services for other agencies, cities, districts or public or private entities. 33. Legal Fees. If any party brings a suit or action against the other party arising from any breach of contract of any covenants or agreements or any inaccuracies in any of the representations and warranties on the part of the other party arising out of this Agreement, then in the event, the prevailing party in such action or dispute, whether by final judgment or out -of -court settlement, shall be entitled to have and recover of and from other party all costs and expenses of suit, including actual attorney's fees. 34. Mediation/Arbitration. If a dispute arises out of or relates to this Agreement, or the breach thereof, the parties agree first to try, in good faith, to settle the dispute by mediation in San Diego, California, in accordance with the Commercial Mediation Rules of the American Arbitration Association ("AAA") before resorting to arbitration. The costs of mediation shall be borne equally by the parties. Any controversy or claim arising out of, or relating to, this Agreement, or breach thereof, which is not resolved by mediation shall be settled by arbitration in San Diego, California, in accordance with the Commercial Arbitration Rules of the AAA as they exist. Any award rendered shall be final and conclusive upon the parties, and a judgment thereon may be entered in any controversy. The expenses of the arbitration shall be borne equally by the parties to the arbitration, provided that each party shall pay for and bear the costs of its own experts, evidence and attorney's fees, except that the arbitrator may assess such expenses or any part thereof against a specified party as part of the arbitration award. Page 11 of 14 35. Termination for Default. All of the terms, conditions, and covenants of this Agreement arc considered material and in the event the Contractor breaches or defaults in the performance of any such terms, conditions, or covenants which are to be kept, done, or performed by it, he t_I.PC may give the Contractor fifteen (15) days' written notice setting forth such breach of default; and if the Contractor fails, neglects or refuses for a period of more than fifteen (15) days thereafter to remedy, make good, or perform such breach or default, the CDC, without further notice, may cancel this Agreement. 36. Notices. All Notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered; or sent by overnight mail (Federal Express or the like); or sent by registered or certified mail, postage prepaid, return receipt requested; or sent by ordinary mail, postage prepaid; or telegraphed or cabled; or delivered or sent by telex, telecopy, facsimile; and shall be deemed received upon the earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if sent by overnight mail, the business day following its deposit in such overnight mail facility, (iii) if mailed by registered, certified or ordinary mail, five (5) days if the address is outside the State of California, after the date of deposit in a post office, mailbox, mail chute, or other like facility regularly maintained by the United States Postal Service, (iv) if given by telegraph or cable, when delivered to the telegraph company with charges prepaid, or (v) if given by telex, telecopy, facsimile, when sent. Any notice, request, demand, direction or other communication delivered or sent as specified above shall be directed to the following persons: To CDC: Leslie Deese, Assistant City Manager Community Development Commission of the City of National City 1243 National City Boulevard National City, CA 91950 To Contractor: Notice of change of address shall be given by written notice in the manner specified in this Section. Rejection or other refusal to accept or the inability to delivery because of changed address of which no notice was given shall be deemed to constitute receipt of notice, demand, request or communication sent. Any notice, request, demand, direction or other communication sent by cable, telex, telecopy or facsimile must be confirmed within forty- eight (48) hours by letter mailed or delivered as specified in this Section. 37. Miscellaneous Provisions. Page 12 of 14 Computation of Time Periods. If any date or time period provided for in this Agreement is or ends on a Saturday, Sunday or Federal, or State or legal holiday, then such date shall automatically be extended until 5.00 p.m. Pacific Time of the next day which is not a Saturday, Sunday or Federal, State or legal holiday. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute but one and the same instrument. c. Captions. Any captions to, or headings of, the sections or subsections of this Agreement are solely for the convenience of the parties hereto, are not a part of this Agreement, and shall not be used for the interpretation or determination of the validity of this Agreement of any provision hereof. d. No Obligations to Third Parties. Except as otherwise expressly provided herein, the execution and delivery of this Agreement shall not be deemed to confer any rights upon, or obligate any of the parties hereto, to any person or entity other than the parties hereto. e. Exhibits and Schedules. The Exhibits and Schedules attached hereto as hereby incorporated herein by this reference for all purposes. f. Amendment to this Agreement. The terms of this Agreement may not be modified or amended expect by an instrument in writing executed by each of the parties hereto. Waiver. The waiver or failure to enforce any provision of this Agreement shall not operate as a waiver of any future breach of any such provision of any provision hereof. g. h. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Entire Agreement. This Agreement supersedes any prior agreements, negotiations and communications, oral or written, and contains the entire agreement between the parties as to the subject matter hereof. No subsequent agreement, representation, or promise made by either party hereto, or by or to an employee, officer, agent or representative of any party hereto shall be of any effect unless it is in writing and executed by the party to be bound thereby. j. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the parties hereto. k. Construction. The parties acknowledge and agree that (i) each party is of equal bargaining strength, (ii) each party as actively participated in the drafting, preparation and negotiation of this Agreement, (iii) each such party has consulted with or has had Page 13 of 14 the opportunity to consult with its own, independent counsel and such other professional advisors as such party has deemed appropriate, relative to any and all matters contemplated under this Agreement, (v) each party has agreed to enter into this Agreement following such review and the rendering of such advice, and (vi) any ule or construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement, or any portions hereof, or any amendments hereto. IN WITNESS WIIEREOF, the Principal Parties, by their duly authorized officers, have executed this Agreement on the date first above written. COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY By: , Chairman By: , President APPROVED AS TO FORM: Claudia Gacitua Silva, City Attorney By: Attachments: Exhibit "A" - Management Plan Page 14 of 14 .._',achment to Request for Proposal for Kimball Tower and Morgan dower Property Management Services Fiscal Year 2012 Approved Budgets 9 MORGAN 1`OWERS 2611 ud.get Narrative SU.✓tMARY The 2011 Budget proposes a rent increase based on the HUD automatic Annual Adjustment Factor (AAF)_ This is the entire increase to which the building is entitled. Most all expenses have increased since last year's rent increase was effective. We will submit this rent adjustment request and expect the rent increase to be effective September 1, 2011 ACCT. DESCRIPTION EXPLANATION 5120 Rental Revenue The or000sed rents are as follows: Unit Type # of Units Current Rents Proposed increase Proposed Rents One -Bedroom 151 $677 $10 $687 One -Bedroom 1 Staff 5220 Vacancy Factor Budgeted at I % of rents. 5410 Financial Revenue -Project Budgeted per audit. Operations 5430 Revenue from Investments - Residual Receipts 5440 Revenue from Investments - Replacements Reserves 5910 Laundry and Vending 6203 Conventions and Meetings 6210 Advertising and Marketing 6250 Other Renting Expenses 6310 Office Salaries 6311 6320 6330 Office Expenses Management Fee Manager's Salaries 6340 Legal Expenses 6350 Auditing Expenses 6351 Bookkeeping Fees / Accounting Services 6390 Misc. Administrative Expenses Budgeted at $0. The amount remains in the residual receipts account and may not be used for operations. Budgeted at $0. The amount remains in the reserve for replacement account and may not be used for operations. Budgeted per audit. Laundry facilities are leased. Budgeted per audit plus $500 for building staff to attend occupancy related training. Budgeted per current plus $500 for classified advertising of rental units. Budgeted per current plus $500 for background screening fees of potential tenants. Budgeted per current plus 5% for assistance in processing HUD paperwork at $630 per month plus $1,250 for additional work related to front-line assistance. Note that there is no longer an office assistant and therefore budget is low compared to audit and current activity. Budgeted per audit plus 5% for telephone and Internet, office equipment and maintenance, printing and copying expenses, office supplies, postage, etc. Budgeted a 0.25% rate increase from 4.75% to 5.0% of net rental and laundry revenue. Budgeted per current expense plus 5% for Patricia Estanciero, Resident Manager, working 32 hours per week, earning $1,733 per month. Note that the manager's salary is split between Morgan and Kimball Towers. Also budgeted for Rosa Flores, Assistant Manager, working 32 hours per week, earning $2,496 per month. Budgeted additional amount for overtime, sick time and salary increases. Budgeted per audit plus $500 for project related legal expenses. Budgeted per audit plus $500 for annual audit, electronic submission and filing fees. Budgeted $750 for quarterly computer maintenance, $765 for project computer software updates plus $1,500 for RealPage Software. Budgeted per current expense for Resident Council at $100 per month and for a service coordinator at $1,000 per month. Also includes an allowable 10% fee (of service coordinator costs) at $1,200 for quality assurance services. Prepared by Falkenberg/Gilliam & Associates, Inc. ■ Managing Agents 1 chrl Watt Cnlnrndn enulevard_ P.O. Box 7070. Pasadena, CA 91109-7070 ■ (323) 258-3512 Morgan Towers IV SCRIPTION_ lectricity 451 Water 5452 Gas 15' Sewer 6510 Payroll 6515 Supplies 6520 Contracts 6525 Garbage and Trash Removal 6530 Security Payroll/ Contract 6546 Heating/Cooling Repairs 6711 Payroll'faxes 6720 Property and Liability Insurance 6722 Worker's Compensation 6723 Health insurance & Other Employee Benefits 6790 Misc. Taxes, Licenses and Permits 6820 Interest on Mortgage Payable 6850 Mortgage Insurance Premium Reserve for Replacement Deposits Principal Payments Required 2011 Budget Narrative EXPLANATION Page 2 Budgeted per audit plus 5%. Budgeted per 12-month total of $33,890 plus 5%. Budgeted per audit plus 5%. Budgeted per audit plus 5%. Current is low because Morgan Towers has not received sewer bill from Public Works for reimbursement. Budgeted per current expense plus 5% for Roberto Estanciero, Superintendent, working 19 hours a week earning $2,022 per month. Note that the Superintendent's salary is split between Morgan and Kimball Towers. Also budgeted for Philip Flores, Assistant Superintendent, working 37 hours a week earning $2,912 per month and for Keyanue McCallon, Maintenance working 40 hours a week earning $3,467. Budgeted additional amount for overtime, sick time and salary increases. Budgeted per current (less $16,769 for refrigerators and stoves, reimbursed from the reserve fund) plus 5% for cleaning and plumbing supplies, electrical and maintenance supplies, appliance parts, paint, and hardware and tools, etc. Budgeted per audit (less $171,031 for capital needs items) plus 5% for elevator maintenance, plumbing and electrical repair, carpet cleaning, landscaping, extenninating, generator service, etc. Budgeted per audit plus 5%_ Budgeted per audit plus 5% for guard service, quarterly fire alarm inspections, annual fire alarm monitoring, fire/sprinkler alarm repairs, smoke detector purchases and installation, and fire extinguisher service. Budgeted per audit plus 5% for heating and cooling repairs. Budgeted at 7.65% of salaries for Social Security and Medicare plus $224 each for SUI/ETT taxes. Budgeted per audit plus 5% for property and liability insurance. Budgeted per current premium of $15,133 plus 5%. Budgeted per current expense plus 5% for four employees at monthly cost of $699.38 each for health insurance, $5.90 each for life insurance, and $15.05 each for dental insurance. In addition, budgeted for pension cost which is 5% of each employee's base payroll. Budgeted per audit plus $500 for elevator inspection fees, generator permits, and other misc. fees. Budgeted per amortization schedule. Budgeted per amortization schedule. Budgeted per monthly deposit of $3,127. Budgeted per amortization schedule. May 19, 2011 Prepared by Falkenberg/Gilliam & Associates, Inc. ■ Managing Agents 1560 West Colorado Boulevard, P.O. Box 7070, Pasadena, CA 91109-7070 ■ (323) 258-3512 Budget Worksheet U.S. Department of Housing OMB Approval No. 2502-0324 and Urban Development (exp. 09l3/2011) Incorn- and Expense Projections Office of Housing Federal Housing Commissioner Public reporting burden for this collection of information is estimated to average 1 5 hours per response, including the lime for reviewing instructions, searching existing data sources, gath • and maintaining the data needed, and completing and reviewing the collection of information This agency may net collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number. This information is collected in accordance with Title II of the National Housing Act which requires that HUD regulate rents for certain cooperative and subsdrzed rental protects The Department formulated the processes by which owners could request increases. The requirements for tenant participation in the rent increase process, which is included in Section 202 (b) of .ne HCD Amendments of 1978, necessitated that the Department design procedures to give consideration for tenant comments. The information gathered is not of e confidential nature The informa§on is required in order to obtain benefits. Project Number 129-38013 Name of Project MORGAN TOWERS Description of Account Acct. No. Profit/Loss (EYE 6/30/2010) PUPM 151/12 Current FY (no. of mos. 9) PUPM 151/9 Budget from 9/1/11-8/31/12 PUPM 151/12 Rental Rent Revenue - Gross Potential 5120 511,165 282.10 375,910 276.61 541,543 298.86 Income Tenant Assistance Payments 5121 663,850 366.36 534,421 393.25 703,301 388.14 5100 Rent Revenue - Stores & Commercial 5140 - - - Garage & Parking Spaces 5170 - - - Flexible Subsidy Revenue 5180 - - - Miscellaneous Rent Revenue 5190 - - - Excess Rent 5191 - - - - - - Rent Revenue/Insurance 5192 Special Claims Revenue 5193 - - - Retained Excess Income 5194 - - - Total Rent Revenue Potential at 100% Occupancy 5100T 1,175,015 648.46 910,331 669.85 1,244,844 687.00 Vacancies Apartments 5220 6,060 3.34 3,252 2.39 12,448 6.87 5200 Stores and Commercial 5240 - - - Rental Concessions 5250 110 0.06 1,047 0.77 - - Garage & Parking Spaces 5270 - - Miscellaneous 5290 - - Total Vacancies 5200T 6,170 3.41 4,299 3.16 12,448 6.8 Net Rental Revenue (Rent Revenue less Vacancies) 5152N 1,168,845 645.06 906,032 666.69 1,232,396 680. Income Nursing Homes/Assisted Living/Board & Carer Other 5300 Elderly Carel Coop/ Other Revenues 5300 Financial Financial Revenue - Project Operations 5410 82 0.05 20 0.01 82 0.05 Revenue Revenue from Investments - Res. Rec. 5430 485 0.27 - - 5400 Revenue from Investments - Rept. Res 5440 2,529 1.40 - - Revenue from Investments - Miscellaneous 5490 - - - - Total Financial Revenue 5400T 3,096 1.71 20 0.01 82 0.05 Other Laundry and Vending Revenue 5910 6,787 3.75 5,367 3.95 6,787 3.75 Revenue Tenant Charges 5920 - - - 5900 Interest Reduction Payments Revenue 5945 - - - Gifts (nonprofits) 5970 - - - Miscellaneous Revenue 5990 255 0 14 100 0.07 - Total Other Revenue 5900T 7,042 3.89 5,467 4.02 6,787 3.75 Total Revenue 5000T 1,178,983 650.65 911,519 670.73 1,239,265 683.92 Admin. Conventions and Meetings 6203 2,228 1.23 1,510 1.11 2,728 1.51 Expenses Management Consultants 6204 - - - 6200! Advertising and Marketing 6210 1,118 0.62 1,081 0.80 1,618 0.89 6300 Other Renting Expense 6250 - 1,048 12,679 0.77 1,548 0.85 Office Salaries 6310 24,440 13.49 9.33 9,188 5.07 Office Expenses 6311 16,222 8.95 6,785 4.99 17,033 9.40 Office or Model Apartment Rent 6312 - - - - Management Fee 6320 52,412 28.92 42,188 31.04 61,959 34.19 Manager or Superintendent Salaries 6330 54,498 30.08 42,864 31.54 58,290 32.17 Administrative Rent Free Unit 6331 Legal Expenses - Project 6340 1,370 0.76 1,080 0.79 1,870 1. Audit Expenses 6350 8,725 4.82 2,000 1 47 9,225 5. Bookkeeping Fees/Accounting Services 6351 875 0.48 2,890 2,13 3,166 1.75 Miscellaneous Administrative Expenses 6390 13,200 7.28 9,900 7 28 14,400 7.95 Total Administrative Expenses 6263 T 175,088 96.63 124,025 91.26 181,025 99.90 Previous editions are obsolete page 1 of 2 ref. Handbook 4350.1 form HUD-92547-A (8/2000) Project Number Name of Project 129-38013 ... . -.' Description of Account Acct. No. Profit/Loss (FYE 6/30/2010) PUPM 151/12 Current FY (no. of mos. 9) PUPM 151/9 Budget from 9/1/11-8/31/12 PUPM 151/12 I Fuel Oil/Coal 6420 i 6450 43,224 23.85 29,836 21.95 45,385 25.05 Electricity 6451 31,658 17.47 25,258 18.59 35,585 19.64 Water Gas 6452 36,068 19.91 27,116 19.95 37,871 20.90 Sewer 6453 45,600 25.17 0 - 47,880 26.42 Total Utilities Expense 6400 T 156,550 86.40 82,210 60.49 166,721 92.01 Operating & Payroll 6510 106,225 58.62 96,901 71 30 113,346 62.55 55,586 30 68 Maint. Supplies 6515 69,708 38.47 37,305 27.45 Expenses Contracts 6520 356,393 196.68 104,305 76.75 194,630 107.41 6500 Operating and Maintenance Rent Free Unit 6521 - Garbage and Trash Removal 6525 13,127 7.24 9,692 7.13 13,783 7.61 Security Payroll/Contract 6530 31,723 17.51 21,391 15.74 33,309 18.38 Security Rent Free Unit 6531 Heating/Cooling Repairs and Maintenance 6546 31,356 17.30 22,483 16.54 32,924 18 17 Snow Removal 6548 Vehicle 8 Maint. Equip. Oper. and Repair 6570 i - - Misc. Operating & Maintenance Expenses 6590 Total Operating & Maintenance Expenses 6500 T 608,532 335.83 292,077 214.92 443,578 244.80 Taxes & Real Estate Taxes 6710 Insurance Payroll Taxes (Project's share) 6711 16,270 8.98 13,754 10.12 14,250 7.86 6700 Property and Liability Insurance (Hazard) 6720 33,871 18.69 24,563 18.07 35,565 19.63 Fidelity Bond Insurance 6721 - - - Workmen's Compensation 6722 11,992 6.62 11,350 8.35 15,890 8.77 24.22 Health Insurance & Other Employee Benefits 6723 32,785 18.09 19,217 14.14 43,883 Misc. Taxes, Licen., Permits, & Insurance 6790 1,654 0.91 1,681 1.24 2,181 1 20 Total Taxes & Insurance 6700T 96,572 53.30 70,565 51.92 111,769 61.68 lel Interest on Mortgage Payable 6820 168,132 9279 117,710 86.62 141,564 78.13 ,es Interest on Notes Payable (Long -Term) * 6830 Interest on Notes Payable (Short -Term) ' 6840 - Mortgage Insurance Premium/Service Charge 6850 12,850 7.09 11,687 8.60 10,615 5.86 Miscellaneous Financial Expenses 6890 Total Financial Expenses 6800 T 180,982 99.88 129,397 95.21 152,179 83.98 Expenses Nursing Homes/Assisted Living/Board & 6900 Care/Other Eld. Caret Coop/ Other 6900 6000T 1,217,724 672.03 698,274 513.81 1,055,272 582.38 Total Cost of Operations Reserve for Replacements Dep. Required 37,524 20.71 28,143 20.71 37,524 20.71 Principal Payments Required 191,924 105.92 152,332 112.09 218,492 120.58 Debt Service for other approved loans Debt Service Reserve (if required) General Operating Reserve (Coops) Total Cash Requirements 1,447,172 798.66 878,749 646.61 1,311,288 723.67 Less Total Revenue 1,178,983 650.65 911,519 670.73 1,239,265 683.92 Net Cash Surplus (Deficiency) (268,189) (148.01) 32,770 24.11 (72,023) (39.75) 5/19/2011 I hereby certify that all the information staled herein, as well as any information provided in the accompaniment herewith. is true and accurate Warning: HUD will prosecute claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C. 1001. 1010, 1012. 31 U.S.C. 3729, 3802) Date (mmldd/yyyy) lure) Pr- to - ions are obsolete -HUD Approved Secondary Financing Pa9 Only for Budget Projections. 2 of (,'2Z-2of( ref. Handbook 4350.1 form HUD-92547-A (8/2000) KIIVIBALL TOWERS win Budgei'_'tiarrative SUi.IM ARY The 2011 Budget for Kimball Towers proposes a rent increase based on escalating costs, such as the addition of the asset management tee and increased insurance costs. Last year's rents increase was effective December 1, 2010. We anticipated this rent adjustment request to be effective September 1, 2011. Currently residents pay 30% of income up to a maximum of $570. ACCT. DESCRIPTION EXPLANATION 5120 Rental Rev rnuc 5220 Vacancy Factor 5410 Financial Revenue -Project Operations The proposed rents are as follows: Unit Type # of Units Current Rent Proposed Increase Total Rent One -Bedroom 151 $570 $15 $585 Budgeted at I % of rents. Budgeted per audit. 5440 Revenue from Investments- Budgeted at $0. The amount remains in the reserve for replacement account and may Replacements Reserves not be used for operations. 5910 Laundry and Vending 5990 Misc. Revenue 6203 Conventions and Meetings 6204 Management Consultants 6250 Other Renting Expenses 6310 Office Salaries 6311 Office Expenses 6320 Management Fee 6330 Manager's Salaries 6331 Administrative Rent -Free Units 6340 Legal Expenses 6350 Auditing Expenses 635 I Bookkeeping Fees / Accounting Services 6390 Misc. Administrative Expenses Budgeted per audit for laundry and water vending income. Budgeted per audit for key income and other miscellaneous revenue. Budgeted per audit plus $500 for building staff to attend occupancy related training. Budgeted a Community Development Commission asset management fee of $20,000. Budgeted at $500 for background screening fees of potential tenants. Budgeted per current plus 5% for assistance in processing rents at $250 per month plus $750 for additional work related to front-line assistance. Also budgeted for office assistant, Jennifer Hart, working 40 hours per week at $2,773 per month plus additional amount for sick, overtime and salary increase. Budgeted per audit plus 5% for telephone and Internet, office equipment and maintenance, printing and copying expenses, office supplies, postage, etc. Budgeted a 0.25% rate increase from 7.25% to 7.50% of net rental and laundry revenue. Budgeted per current expense plus 5% for Patricia Estanciero, Resident Manager, working 32 hours per week, earning $1,733 per month. Note that the manager's salary is split between Morgan and Kimball Towers. Also budgeted for Floria Gouleva, Assistant Manager, working 32 hours per week, earning $2,357 per month. Budgeted additional amount for overtime, sick and salary increases. Budgeted at $585 each per month for the manager's unit and assistant manager's unit. Budgeted per current plus $500 for project related legal expenses. Budgeted per audit plus $500 for annual audit, electronic submission and filing fees. Budgeted per current plus 5% for quarterly computer maintenance at $750, project computer software updates at $930 and $2,600 for RealPage Software. Budgeted per current expense for Resident Council at $100 per month and for a service coordinator at $1,000 per month. Also includes an allowable 10% fee (of service coordinator costs) at $1,200 for quality assurance services. Prepared by Falkenberg/Gilliam & Associates, Inc. • Managing Agents 1560 West Colorado Boulevard, P.O. Box 7070. Pasadena. CA 91109-7070 ■ (323) 258-3512 Kimball Towers ` "C7. DESCRIPTION i0 Electricity 6451 Water 6452 Gas 6453 Sewer 6510 Payroll 6515 Supplies 6520 Contracts 6525 Garbage and Trash Removal i30 Security Payroll/ Contract 6546 Heating/Cooling Repairs 6711 Payroll Taxes 6720 Property and Liability Insurance 6722 Worker's Compensation 6723 Health Insurance & Other Employee Benefits 6790 Misc. Taxes, Licenses and Permits Reserve for Replacement Deposits 2011 Budget Narrative EXPLANATION Page 2 Budgeted per audit plus 5%. Budgeted per 12-month total of $31,543 plus 5%. Budgeted per I2-month total of $52,536 plus 5% Budgeted per audit plus 5%_ Current is low because Kimball Towers has not received sewer hill from Public Works for reimbursement. Budgeted per current expense plus 5% for Roberto Estanciero , Superintendent, working 19 hours a week earning $2,022 per month. Note that the Superintendent's salary is split between Morgan and Kimball Towers. Also budgeted for lordan Gouleva, Assistant Superintendent, working 40 hours a week earning $2,947 per month and for Charles Ray, Maintenance working 40 hours a week earning $3,120. Budgeted additional amount for sick, overtime and salary increases. Budgeted per audit (less $4,700 for purchase of refrigerators/stoves) plus 5% for cleaning supplies, plumbing supplies, electrical and maintenance supplies, appliance parts, paint, and hardware and tools, etc. Budgeted per audit (less $333,619 for capital needs items, which are ineligible to be included in the budget) plus 5% for elevator maintenance, plumbing and electrical repair, carpet cleaning, landscaping, exterminating, generator service, etc. Budgeted per audit plus 5%. Budgeted per audit plus 5% for guard service, quarterly fire alarm inspections, annual fire alarm monitoring, fire/sprinkler alarm repairs, smoke detector purchases and installation, and fire extinguisher service. Budgeted per audit (less $11,364 for isolation valve replacements) plus 5% for heating and cooling repairs. Budgeted at 7.65% of salaries for Social Security and Medicare plus $224 each for SUI/ETT taxes. Budgeted per audit plus 5% for property and liability insurance. Budgeted per current premium of$16,272 plus 5%. Budgeted per current expense plus 5% for four employees at monthly cost of $699.38 each for health insurance, $5.90 each for life insurance, and $15.05 each for dental insurance. In addition, budgeted for pension cost which is 5% of each employee's base payroll Budgeted per audit plus $500 for elevator inspection fees, generator permits, and other misc. fees. Budgeted per monthly deposit of $7,000. May 24, 2011 Prepared by Falkenberg/Gilliam & Associates, Inc. ■ Managing Agents gin m.o. Colorado Boulevard, P.O. Box 7070, Pasadena, CA 91109-7070 111 (323) 258-3512 Budget Worksheet U.S. Department of Housing and Urban Development !I,come ar' Expense Projections Office of Housing Federal Housing Commissioner Public reporting burden for this collection of information is estimated to average 1 5 hours per response, including the lime for reviewing instructions. searching existing data sources, gathenng and maintaining the data needed. and completing and reviewing the collection of information. This agency may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number. This information r: collected in accordance with Title II of the National Housing Act which iequaes that HUD regulate rents for certain cooperative and subsidized rental projects the Department formulated the processes by which owners could request increases. The requirements for tenant participation in the rent increase process, which is included in Section 202 (b) et he HCC A, ro dr tents of 1978, necessaated that the Department design procedures to give consideration for tenant comments. The information gathered is not of a confidential nature The information is required in order to obtain benefits. OMB Approval No. 2502-0324 (exp. 09/3/2011) Project Number Name of Project KIMBALL TOWER Description of Account Acct. No. Profit/Loss (FYE 6/30/2010) Current FY (noof mos. 9) Budget from 9/1/11-8/31/12 Rental Rent Revenue - Gross Potential 5120 529,508 383,992 635,453 Income Tenant Assistance Payments 5121 353,782 340,423 424,567 5100 Rent Revenue - Stores & Commercial 5140 Garage & Parking Spaces 5170 Flexible Subsidy Revenue 5180 Miscellaneous Rent Revenue 5190 Excess Rent 5191 Rent Revenue/Insurance 5192 Special Claims Revenue 5193 Retained Excess Income 5194 Total Rent Revenue Potential al 100% Occupancy 5100T 883,290 724,415 1,060,020 Vacancies Apartments 5220 2,721 894 10,600 5200 Stores and Commercial 5240 Rental Concessions 5250 Garage & Parking Spaces 5270 Miscellaneous 5290 Total Vacancies 5200T 2,721 894 10,600 Net Rental Revenue (Rent Revenue less Vacancies) 5152N 880,569 723,521 1,049,420 Income Nursing Homes/Assisted Living/Board & Care/ Other 5300 Elderly Care/ Coop/ Other Revenues 5300 Financial Financial Revenue - Project Operations 5410 109 23 109 Revenue Revenue from Investments - Res. Rec. 5430 5400 Revenue from Investments - Repl. Res 5440 3,738 Revenue from Investments - Miscellaneous 5490 - Total Financial Revenue 5400T 3,847 23 109 Other Laundry and Vending Revenue 5910 7,119 5,383 7,119 Revenue Tenant Charges 5920 5900 Interest Reduction Payments Revenue 5945 Gifts (nonprofits) 5970 Miscellaneous Revenue 5990 140 320 140 Total Other Revenue 5900T 7,259 5,703 7,259 Total Revenue 5000T 891,675 729,247 1,056,788 Admin. Conventions and Meetings 6203 2,237 4,085 2,737 Expenses Management Consultants 6204 20,000 6200/ Advertising and Marketing 6210 - - 6300 Other Renting Expense 6250 52 500 Office Salaries 6310 33, 793 34,546 41,344 Office Expenses 6311 25,880 13,954 27,174 Office or Model Apartment Rent 6312 - Management Fee 6320 60,363 51,844 79,240 Manager or Superintendent Salaries 6330 51,713 41,841 56,542 Administrative Rent Free Unit 6331 17,784 10,960 14,040 Legal Expenses- Project 6340 - 1,080 1,580 Audit Expenses 6350 3,500 3,000 4,000 Bookkeeping Fees/Accounting Services 6351 1,555 3,740 4,494 Miscellaneous Administrative Expenses 6390 13,200 9,900 14,400 Total Administrative Expenses 6263 T 210,025 175,002 266,051 Previous editions are obsolete page 1 of 2 ref. Handbook 4350.1 form HUO-92547-A (8/2000) Name of Project KIMBALL TOWER Project Number Current FY (no. of mos. 9) Budget from 9/1/11-8/31/12 Description of Account JJ Acct. No Profit/Loss (FYE 6/30/2010) L �� Fuel Oil/Coal 6420 47,978 5 Electricity 6450 45,693 33,157 Water 6451 - 29,734 20,985 33,120 Gas 6452 47,681 40,672 55,163 -- ----- ----- ------ 47,565 Sewer 6453 4 5,300 0 Total Utilities Expense 6400 T 168,408 94,814 183,826 Operating &Payroll 6510 101, 809 7 3, 993 109 418 Mainz Supplies 6515 58, 354 36,788 56,337 Expenses Contracts 6520 497,185 136,430 171,744 6500 Operating and Maintenance Rent Free Unit 6521 Garbage and Trash Removal 652529,833 14,257 10,408 14,970 Security Payroll/Contract 6530 28,412 22,226 Security Rent Free Unit 6531 22,718 Heating/Cooling Repairs and Maintenance 6546 33,000 15,703 Removal 6548 Snow 6570 Vehicle & Maint. Equip. Oper. and Repair Misc. Operating & Maintenance Expenses 6590 Total Operating & Maintenance Expenses 6500 T 733,017 295,548 405,020 Estate Taxes 6710 Taxes & Real 6711 17,009 14,314 16,904 Insurance Payroll Taxes (Projed's share) 6700 Property and Liability Insurance (Hazard) 6720 33,345 22,707 35,012 Bond Insurance 6721 .- Fidelity 6722 13, 748 9,190 17,086 Compensation Workmen's Insurance & Other Employee Benefits 6723 30,725 18,815 45;359 Health 6790 789 8 1,289 Misc. Taxes, Licen., Permits, & Insurance Total Taxes & Insurance 6700T 95,616 65,034 115,642 Mortgage Payable 6820 :ial Interest on 6830 ses Interest on Notes Payable (Long -Term) * ovvv Interest on Notes Payable (Short -Term)' 6840 Premium/Service Charge 6850 Mortgage Insurance 6890 Financial Expenses Miscellaneous Total Financial Expenses 6800 T Expenses Nursing Homes/Assisted Living/Board & 6900 Care/Other EId. Carel Coop/ Other 6900 6000T 1,207,066 630,398 970,539 Cost Operations Total of Dep. Required 84,000_ 63,000 84,000 Reserve for Replacements Required Principal Payments Service for other approved loans Debt Debt Service Reserve (if required) Operating Reserve (Coops) General Cash Requirements 1,291,066 693,398 1,054,539 Total Total Revenue 891,675 729,247 1,056,788 Less Net Cash Surplus (Deficiency) (399,391) 35,849 2,249 5/24/2011 1 hereby certify that all the information stated herein, as well as any information provided in the accompaniment herewith, is true and accurate. Warning: HUD will to false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S C. 1001, 1010, 1012; 31 U.S.C. 3729, 3802) Date (mmfdd/yyyy) azure) /� Pr- - page iou editions are obsolete 'HUD Approved Secondary Financing P 9e 2 of 2 Only for Budget Projections. ref. Handbook 4350.1 Form HUD-92547-A (8/2000) ETING DATE: CITY OF NATIONAL CITY, CALIFORNIA COMMUNITY DEVELOPMENT COMMISSION COUNCIL AGENDA STATEMENT January 24, 2012 AGENDA ITEM NO. 0 ITEM TITLE: Community Development Commission of the City of National City's Financial Statements and Supplemental information for the Fiscal Year Ended June 30, 20111 PREPARED BY: Tina Norrdin PHONE: I619-336-4331I EXPLANATION: Transmitted herewith is the Community Development Commission of the City of National City's Financial Statements and Supplemental Information for the fiscal year ended June 30, 2011 prepared by our auditors, Mayer Hoffman McCann, P.C. DEPARTMENT: ! Finan APPROVED BY. The auditors have conducted their examination of the financial statements in accordance with generally accepted auditing standards and expressed a clean opinion of those statements. The audit was completed and posted on the City's website January 2011. FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: N/A ENVIRONMENTAL REVIEW: N/P ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Accept and File. BOARD / COMMISSION RECOMMENDATION: N/A rACHMENTS: rmancial Statements and Supplemental Information for the fiscal year ended June 30, 201 1. COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Financial Statements and Supplementary Information Year ended June 30, 2011 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Financial Statements and Supplementary Information Year ended June 30, 2011 TABLE OF CONTENTS Page Independent Auditors' Report 1 Basic Financial Statements: Government -Wide Financial Statements: Statement of Net Assets 3 Statement of Activities 4 Fund Financial Statements: Governmental Funds: Balance Sheet 6 Reconciliation of Balance Sheet of Governmental Funds to the Government -Wide Statement of Net Assets 9 Statement of Revenues, Expenditures and Changes in Fund Balances 10 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government -Wide Statement of Activities 12 Enterprise Funds: Statement of Net Assets 13 Statement of Revenues, Expenses and Changes in Net Assets 14 Statement of Cash Flows 15 Notes to the Basic Financial Statements 16 Required Supplementary Information: Notes to the Required Supplementary Information 48 Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — Special Revenue Funds: Community Development Block Grant 49 Section 8 Housing Assistance 50 HUD Program Income 51 HOME Program 52 Low and Moderate Income Housing Program 53 I CO k l UNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Financial Statements and Supplementary Information Year ended June 30, 2011 TABLE OF CONTENTS, (CONTINUED) Page Supplementary Schedules: Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — Redevelopment Debt Service Fund 55 Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual — Redevelopment Capital Projects Fund 56 Computation of Low and Moderate Income Housing Fund — Excess Surplus 57 Report on Compliance and Other Matters and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 59 Report on Compliance With Requirements That Could Have a Direct and Material Effect and on Internal Control Over Compliance in Accordance With Guidelines For Compliance Audits of California Redevelopment Agencies, June 2011, issued by the State Controller 61 Schedule of Findings and Recommendations 63 II Mayer Hoffman McCann P.C. An Independent CPA Arm 2301 Dupont Drive, Suite 200 Irvine, California 92612 949-474-2020 ph 949-263-5520 fx www.mhm-pc.com Board of Directors Community Development Commission of the City of National City National City, California INDEPENDENT AUDITORS' REPORT We have audited the accompanying financial statements of the governmental activities, the business -type activities, and each major fund of the Community Development Commission of the City of National City (the "Commission"), a component unit of the City of National City, California as of and for the year ended June 30, 2011, which collectively comprise the Commission's basic financial statements, as listed in the table of contents. These financial statements are the responsibility of the management of the Community Development Commission of the City of National City. Our responsibility is to express an opinion on these component unit financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the component unit financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, and each major fund of the Community Development Commission of the City of National City at June 30, 2011, and the respective changes in financial position and cash flows of its proprietary fund types for the year then ended in conformity with accounting principles generally accepted in the United States of America. As described further in note 1 to the financial statements, the accompanying financial statements reflect certain changes in the reporting of fund types and fund balance classifications for governmental funds due to the implementation of GASB Statement No. 54. As explained further in note II, the future operation of redevelopment agencies in the state of California may be impacted by the results of litigation initiated in response to certain legislative actions enacted by the California State Legislature. 1 Board of Directors Community Development Commission of the City of National City National City, California Page Two The Commission has not presented management's discussion and analysis that the Government Accounting Standards Board has determined is necessary to supplement, although not required to be part of, the basic financial statements. The information identified in the accompanying table of contents as required supplementary information is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purposes of forming opinions on the financial statements that collectively comprise the Commission's basic financial statements. The individual budgetary comparison schedules for Debt Service and Capital Projects Funds are presented for the purpose of additional analysis and are not a required part of the basic financial statements. These supplementary schedules have been subjected to the audit procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. In accordance with Government Auditing Standards, we have also issued a report dated December 21, 2011 on our consideration of the Commission's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Irvine, California December 21, 2011 2 (This page intentionally left blank) COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Statement of Net Assets June 30, 2011 Governmental Business -type Activities Activities Total Assets Cash and investments (note 4) $ 17,197,354 15,591 17,212,945 Cash and investments with fiscal agent (note 4) 41,984,553 1,738,710 43,723,263 Receivables: Accounts 115,600 - 115,600 Interest 13,964 - 13,964 Taxes 194,122 - 194,122 Loans (note 6) 9,391,187 9,391,187 Due from other governments 1,030,808 1,030,808 Prepaid expense 132,638 132,638 Land held for resale 9,392,509 - 9,392,509 Deferred charges 1,495,527 1,495,527 Capital assets (note 5): Nondepreciable capital assets 2,050,000 528,382 2,578,382 Depreciable capital assets, net of accumulated depreciation 499,999 6,687,958 7,187,957 Total assets 83,365,623 Liabilities Accounts payable and other liabilities Accrued salaries and benefits Accrued interest payable Deposits Due to City of National City Noncurrent liabilities (note 7): Due within one year Due in more than one year 1,651,443 85,008 1,650,553 87,500 203,405 4,063,750 76,771,216 Total liabilities 84,512,875 Net Assets Invested in capital assets, net of related debt Restricted for low and moderate housing Unrestricted net assets (deficit) 2,549,999 16,104,647 (19,801,898) Total net assets $ (1,147,252) 9,103,279 92,468,902 255,318 218,492 2,058,393 1,906,761 85,008 1,650,553 87,500 203,405 4,282,242 78,829,609 2,532,203 87,045,078 4,939,455 1,631,621 6,571,076 See accompanying notes to basic financial statements. 7,489,454 17,736,268 (19,801,898) 5,423,824 3 :.JMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Statement of Activities Year Ended June 30, 2011 Governmental activities: Low and moderate housing Community development Interest on long-term debt and related charges Expenses $ 384,248 16,991,305 3,506,322 Total governmental activities 20,881,875 Business -type activities: Low and moderate housing Interest on long-term debt and related charges Program Revenues Operating Capital Total Charges for Contributions Contributions Program Services and Grants and Grants Revenues 12,475,711 - 12,475,711 12,475,711 12,475,711 2,145,877 2,208,044 - - 2,208,044 167,134 Total business -type activities 2,313,011 Total primary government $ 23,194,886 2,208,044 - 2,208,044 2,208,044 12,475,711 General revenues: Tax increment, net Investment income Other Transfers to City, net 14,683,755 Total general revenues and transfers Change in net assets Net assets (deficit) at beginning of year, as restated (note 12) Net assets (deficit) at end of year See accompanying notes to the basic financial statements. 4 ivet (Expense) Revenue and Changes in Net Assets Primary Government Governmental Business -type Activities Activities Total (384,248) (4,515,594) (3,506,322) (384,248) (4,515,594) (3,506,322) (8,406,164) - (8,406,164) (8,406,164) 11,182,960 609,043 269,789 (935,117) 11,126,675 2,720,511 (3,867,763) $ (1,147,252) 62,167 62,167 (167,134) (167,134) (104,967) (104,967) (104,967) (8,511,131) 3,404 11,182,960 612,447 269,789 (935,117) 3,404 11,130,079 (101,563) 2,618,948 6,672,639 2,804,876 6,571,076 5,423,824 5 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Balance Sheet - Governmental Funds June 30, 2011 Special Revenue Funds Community Section 8 HUD Development Housing Program HOME Block Grant Assistance Income Program Assets Cash and investments (note 4) $ - 1,531,378 508,997 2,160,908 Cash with fiscal agent (note 4) Receivables: Accounts Interest Taxes Loans Due from other governments Land held for resale 1,100,000 8,639 312 2,266 190,776 608,610 358,485 - 669,527 Total assets $ 358,485 1,540,017 Liabilities and Fund Balances Liabilities: Accounts payable $ 149,386 46,509 Accrued payroll 5,694 21,433 Due to City of National City 203,405 Deposits Deferred revenue Total liabilities Fund balances: Spendable: Restricted for: Debt service Community development Public housing Low and moderate income housing Unassigned 358,485 67,942 1,472,075 Total fund balances - 1,472,075 1,800,085 3,441,311 137,966 1,714 5,987 145,667 1,800,085 3,295,644 1,800,085 3,295,644 Total liabilities and fund balances $ 358,485 1,540,017 1,800,085 3,441,311 See accompanying notes to the basic financial statements. 6 Debt Capital Service Projects Low and Fund Fund Totals Moderate Income Redevelopment Redevelopment Governmental Housing Program Fund Fund Funds 9,586,932 2,695,979 30,565 10,043 37,191 7,767,650 360,000 17,792,381 6,878,357 148,764 9,723,100 713,160 17,197,354 34,006,196 41,984,553 76,396 115,600 1,343 13,964 8,167 194,122 824,151 9,391,187 2,796 1,030,808 9,032,509 9,392,509 44,664,718 79,320,097 62,992 1,062,333 192,257 1,651,443 3,670 - 52,497 85,008 - - - 203,405 - - 87,500 87,500 1,621,072 1,627,059 1,687,734 1,062,333 332,254 3,654,415 16,104,647 8,660,767 8,660,767 44,332,464 49,428,193 1,472,075 16,104,647 16,104,647 8,660,767 44,332,464 75,665,682 17,792,381 9,723,100 44,664,718 79,320,097 (This page intentionally left blank) 8 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Reconciliation of the Balance Sheet of Governmental Funds to the Government -Wide Statement of Net Assets June 30, 2011 Fund balances of governmental funds $ 75,665,682 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets, net of depreciation, have not been included as financial resources in governmental fund activity. Capital assets Accumulated depreciation Long term debt and compensated absences have not been included in the governmental funds: Tax allocation bonds payable HUD 108 Bond 2003 A Advances from City Unamortized bond issuance costs 4,581,163 (2,031,164) (74,590,000) (5,505,000) (739,966) 1,495,527 Certain revenues were not available to pay for current -period expenditures and, therefore, were deferred in the governmental funds. 1,627,059 Accrued interest payable for the current portion of interest due on bonds payable has not been reported in the governmental funds. (1,650,553) Net assets (deficit) of governmental activities $ (1,147,252) See accompanying notes to the basic financial statements. 9 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds For the Year Ended June 30, 2011 Special Revenue Funds Community Section 8 HUD Development Housing Program HOME Block Grant Assistance Income Program Revenues: Property taxes $ Subventions and grants 1,644,864 Interest income Other income Total revenues Expenditures: Current: Personnel services Community development Capital outlay Debt Service: Principal payments Cost of issuance Interest and fiscal charges Total expenditures 9,618,037 10.221 202,582 1,155,914 73,340 1,644.864 9,618,037 212,803 1,229,254 211,696 820,364 - 69,100 235,542 8.404,633 25,156 1,263,336 1,015,564 245,000 208,181 - 71,163 1,915,983 9,224,997 96,319 1,332,436 Excess (deficiency) of revenues over (under) expenditures (271,119) 393,040 116,484 (103,182) Other financing sources (uses): Transfers in (note 3) 119,531 Transfers out (note 3) - (119,531) Transfer to City of National City (123,960) - Original discount on issuance - - - Issuance of long-term debt - - - Total other financing sources (uses) (4,429) (119,531) Net change in fund balance (275,548) 393,040 (3,047) (103,182) Fund balance (deficit), beginning of year, as restated (note 12) Fund balance, end of year 275,548 1,079,035 1,803,132 3,398,826 $ 1,472,075 1,800,085 3,295,644 See accompanying notes to the basic financial statements. 10 Debt Capital Service Projects Low and Fund Fund Total Moderate Income Redevelopment Redevelopment Governmental Housing Program Fund Fund Funds 2,767,741 244,321 32,974 11,070,963 8,836 3,045,036 11,079,799 56,896 126,764 34,233 13,838,704 12,475,711 463,482 269,789 217,893 27,047,686 133,754 - 2,042,585 3,277,499 250,494 2,613,680 936,108 13,728,949 1,927,618 2,943,182 2,525,000 1,706,646 2,770,000 439,442 439,442 11,250 1,997,240 384,248 6,845,326 5,357,003 25,156,312 2,660,788 4,234,473 (5,139,110) 1,891,374 5,062,931 5,408,287 10,590,749 (861,863) (5,408,287) (4,201,068) (10,590,749) (811,157) (935,117) (1,056,085) (1,056,085) 39,660,000 39,660,000 (861,863) (345,356) 38,999,977 37,668,798 1,798,925 3,889,117 33,860,867 39,560,172 14,305,722 4,771,650 10,471,597 36,105,510 16,104,647 8,660,767 44,332,464 75,665,682 11 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government -Wide Statements of Activities For the Year Ended June 30, 2011 Changes in fund balances of governmental funds $ 39,560,172 Amounts reported for governmental activities in the statement of activities differs from the amounts reported in the statement of activities because: Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives as depreciation expense. Depreciation expense (81,667) Repayment of bond principal is an expenditure in the governmental fiinds, but the repayment reduces long-term liabilities in the statement of net assets. 2,770,000 Proceeds from the issuance of long-term debt is reported as long term liabilities in governmental funds. The long-term debt increases liabilities in the statement of net assets, but does not result in an increase in net assets in the statement of activities. (39,660,000) Bond issuance costs are amortized in the Statement of Activities, but are not reflected in the governmental funds. 1,495,527 The statement of activities includes accrued interest on long-term debt. This is the net change in interest payable expense for the current period. (1,509,082) Revenues in the government -wide statement of activities that did not provide current financial resources were not reported as revenues in the governmental funds. 145,561 Change in net assets of governmental activities $ 2,720,511 See accompanying notes to the basic financial statements. 12 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Statement of Net Assets - Enterprise Funds June 30, 2011 Kimball Morgan Towers Towers Assets Total Current assets: Cash and investments (notes 2 and 4) $ 6,760 8,831 15,591 Prepaids and deposits 51,689 80,949 132,638 Total current assets 58,449 89,780 148,229 Restricted cash and investments with fiscal agent (notes 2 and 4) 1,131,053 607,657 1,738,710 Noncurrent assets: Capital assets (note 5): Nondepreciable assets 315.814 212,568 528,382 Depreciable capital assets, net of accumulated depreciation 4,378,567 2,309,391 6,687,958 Total capital assets 4,694,381 2,521,959 7,216,340 Total assets 5,883,883 3,219,396 9,103,279 Liabilities Current liabilities: Accounts payable and accrued liabilities Notes payable -due within one year (note 7) Total current liabilities 75,316 90,080 165,396 218,492 218,492 75,316 308,572 383,888 Noncurrent liabilities: Tenant security deposit liability 44,879 45,043 89,922 Note Payable -due in more than one year (note 7) 2,058,393 2,058,393 Total noncurrent liabilities 44,879 2,103,436 2,148,315 Total liabilities 120,195 2,412,008 2,532,203 Net Assets Invested in capital assets, net of related debt 4,694,381 245,074 4,939,455 Restricted for: Housing 1,069,307 562,314 1,631,621 Total net assets $ 5,763,688 807,388 6,571,076 See accompanying notes to the basic financial statements. 13 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Statement of Revenues, Expenses and Changes in Net Assets - Enterprise Funds Year ended June 30, 2011 Kimball Morgan Towers Towers Total Operating revenues: Rental income $ 982,146 1,211,218 2,193,364 Other 7,358 7,322 14,680 Total operating revenues 989,504 Operating expenses: Maintenance and operation Depreciation 904,613 187,350 1,218,540 2,208,044 827,695 1,732,308 226,219 413,569 Total operating expenses 1,091,963 1,053,914 2,145,877 Operating income (loss) (102,459) 164,626 62,167 Nonoperating revenues (expenses): Interest income 2,596 808 3,404 Interest expense - (167,134) (167,134) Total nonoperating revenues (expense) 2,596 (166,326) (163,730) Change in net assets (99,863) (1,700) (101,563) Net assets at beginning of year 5,863,551 809,088 6,672,639 Net assets at end of year $ 5,763,688 807,388 6,571,076 See accompanying notes to the basic financial statements. 14 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Statement of Cash Flows - Enterprise Funds Year ended June 30, 2011 Kimball Morgan Towers Towers Total Cash flows from operating activities: Cash received from customers and government agencies $ 983,538 1,220,218 2,203,756 Cash payments to employees for services (48,681) (197,557) (246,238) Cash payments to suppliers for goods and services (927,354) (725,263) (1,652,617) Cash received for other operating activities 7,358 7,322 14,680 Net cash provided by (used for) operating activities 14,861 304,720 319,581 Cash flows from financing activities: Principal payments on note payable - (204,777) (204,777) Interest income 2,596 808 3,404 Interest expense - (166,434) (166,434) Net cash provided by (used for) financing activities 2,596 (370,403) (367,807) Increase (decrease) in cash and investments 17,457 (65,683) (48,226) Cash and investments (including cash and investments with fiscal agent): Beginning of year 1,120,356 682,171 1,802,527 End of year $ 1,137,813 616,488 1,754,301 Reconciliation of operating income (loss) to net cash provided by (used for) operating activities: Operating income (loss) $ (102,459) 164,626 62,167 Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities: Depreciation 187,350 226,219 413,569 (Increase) decrease in accounts receivable 490 700 1,190 (Increase) decrease in prepaids and deposits 25,290 (669) 24,621 Increase (decrease) in accounts payable and accrued liabilities (95,810) (86,156) (181,966) Total adjustments 117,320 140,094 257,414 Net cash provided by (used for) operating activities $ 14,861 304,720 319,581 Noncash investing, capital and financing activities There were no significant noncash investing, capital or financing activities for the year ended June 30, 2011. See accompanying notes to basic financial statements. 15 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements Year ended June 30, 2011 (1) Summary of Significant Accounting Policies The basic financial statements of the Community Development Commission of the City of National City (the "Commission"), a component unit of the City of National City (the "City"), have been prepared in conformity with generally accepted accounting principles as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard -setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the significant accounting policies of the Commission. (a) Description of the Reporting Entity The Community Development Commission of the City of National City (the "Commission") was established in April 1967 pursuant to provisions of the California Health and Safety Code. The Commission is subject to the oversight responsibility of the City Council of the City of National City (the "City") and, accordingly, is a component unit of the City, although it is a separate legal entity. The Commission's primary purpose is to eliminate blighted areas within the City by encouraging development of residential, commercial, industrial, recreational and public facilities and to assist neighborhood redevelopment through residential property improvement Loans and housing assistance payments to low and moderate income earners. The Commission accounts for its financial position and operations in accordance with generally accepted accounting principles in the United States applicable to governmental units. (b) Basis of Accounting and Measurement Focus The basic financial statements of the Commission are composed of the following: • Government -wide financial statements • Fund financial statements • Notes to the basic financial statements Government — Wide Financial Statements The Commission's government -wide financial statements include a Statement of Net Assets and a Statement of Activities. These statements present summaries of governmental activities for the Commission. 16 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (b) Basis of Accounting and Measurement Focus, (Continued) Government — Wide Financial Statements, (Continued) Government -wide financial statements are presented using the economic resources measurement focus and the accrual basis of accounting. Accordingly, all of the Commission's assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Assets. The Statement of Activities presents changes in net assets. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned, while expenses are recognized in the period in which the liability is incurred. Certain types of transactions are reported as program revenues for the Commission in three categories: ➢ Charges for services ➢ Operating grants and contributions ➢ Capital grants and contributions lnterfund transfers have been eliminated as prescribed by GASB Statement No. 34 in regards to interfund activities. Fund Financial Statements The underlying accounting system of the Commission is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Fund financial statements for the Commission's governmental and proprietary funds are presented after the government -wide financial statements. An accompanying schedule is presented for the governmental funds to reconcile and explain the differences in fund balance as presented in these statements to the net assets presented in the government -wide financial statements. The Commission has presented all major funds that met the applicable criteria. 17 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (b) Basis of Accounting and Measurement Focus, (Continued) Governmental Funds In the fund financial statements, governmental funds are presented using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The Commission uses a sixty day availability period. The primary revenue sources, which have been treated as susceptible to accrual by the Commission, are property tax, special assessments, intergovernmental revenues and other taxes. Expenditures are recorded in the accounting period in which the related fund liability is incurred. Deferred revenues arise when potential revenues do not meet both the measurable and available criteria for recognition in the current period. Deferred revenues also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met or when the government has a legal claim to the resources, the deferred revenue is removed and revenue is recognized. In the fund financial statements, governmental funds are presented using the current financial resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. The reported fund balance (net current assets) is considered to be a measure of available spendable resources. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of available spendable resources during a period. Noncurrent portions of long-term receivables clue to governmental funds are reported on the balance sheet in spite of their spending measurement focus. Special reporting treatments are used to indicate, however, that they should not be considered "available spendable resources," since they do not represent net cun-ent assets. Due to the nature of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. 18 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (h) Basis of Accounting and Measurement Focus, (Continued) Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amount represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as an other financing source rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures. The Reconciliation of the Fund Financial Statements to the Government -Wide Financial Statements is provided to explain the differences created by the integrated approach of the GASB Statement No. 34. Governmental Fund Balances The accompanying financial statements reflect certain changes that have been made with respect to the reporting of the components of fund balances for governmental funds. In previous years, fund balances for governmental funds were reported in accordance with previous standards that included components for reserved fund balance, unreserved fund balance, designated fund balance, and undesignated fund balance. Due to the implementation of GASB No. 54, the components of the fund balances of governmental funds now reflect the component classifications described below. Prior year amounts have been restated to reflect the component designations required by GASB No. 54. Fund balances are reported in the fund statements in the following classifications: Nonspendable Fund Balance Nonspendable Fund Balance — this includes amounts that cannot be spent because they are either not spendable in form (such as inventory) or legally or contractually required to be maintained intact (such as endowments). 19 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (b) Basis of Accounting and Measurement Focus, (Continued) Spendable Fund Balance Restricted Fund Balance — this includes amounts that can be spent only for specific purposes stipulated by constitution, external resource providers, or through enabling legislation. If the Board action limiting the use of funds is included in the same action (legislation) that created (enables) the funding source, then it is restricted. Committed Fund Balance — this includes amounts that can be used only for the specific purposes determined by a formal action of the Board. It includes legislation (Board action) that can only be overturned by new legislation requiring the same type of voting consensus that created the original action. Therefore, if the Board action limiting the use of the funds is separate from the action (legislation) that created (enables) the funding source, then it is committed, not restricted. The Commission considers a resolution, an ordinance, or a minutes action to constitute a formal action of Board of Directors for the purposes of establishing committed fund balance. Assigned Fund Balance — this includes amounts that are designated or expressed by the Board, but does not require a formal action like a resolution or ordinance. The Commission may delegate the ability of an employee or committee to assign uses of specific funds, for specific purposes. Such delegation of authority has been granted to the City Manager. Unassigned Fund Balance — this includes the remaining spendable amounts which are not included in one of the other classifications. It is the Agency's policy that restricted resources will be applied first, followed by (in order of application) committed, assigned, and unassigned resources, in the absence of a formal policy adopted by the Commission. 20 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (b) Basis of Accounting and Measurement Focus, (Continued) Proprietary Funds The Commission's enterprise funds are proprietary funds. In the fund financial statements, proprietary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds are presented using the economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net assets. Operating revenues and expenses generally result from providing services, and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of Kimball Towers and Morgan Towers are charges to tenants for housing low and moderate income seniors, which is subsidized with Federal government funds under a Section 8 contract with the U.S. Department of Housing and Urban Development. Operating expenses for the proprietary funds include the cost of services, administrative expenses, and depreciation on capital assets. All revenue and expenses not meeting this definition are reported as nonoperating revenues and expenses. Amounts paid to acquire capital assets are capitalized as assets in the proprietary fund financial statements, rather than reported as an expenditure. Proceeds of long-term debt are recorded as a liability in the proprietary fund financial statements, rather than as an other financing source. Amounts paid to reduce long- term indebtedness of the proprietary funds are reported as a reduction of the related liability, rather than as an expenditure. Major Funds The Commission reports the following major governmental funds: Community Development Block Grant — To account for activities related to the annual grant from the Department of Housing and Urban Development to assist in developing viable urban community by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low and moderate income persons. 21 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (b) Basis of Accounting and Measurement Focus, (Continued) Major Funds, (Continued) Section 8 Housing Assistance — To provide rental assistance to low income families by subsidizing a portion of the rent directly to landlords on behalf of low income households. HUD Program Income — To provide for the funding of Community Development Block Grant program activities as approved by the City Council utilizing HUD program income. HOME Program — To account for activities related to the annual grant from the Department of Housing and Urban Development to administer programs designed to provide decent affordable housing, expand capacity of nonprofit housing providers, and to leverage private sector participation. Low and Moderate Income Housing Program — To account for the tax increment which is required to be set aside under Section 33334.2 of the California Health and Safety Code to increase, improve or preserve the community's supply of low and moderate income housing. Redevelopment Debt Service Fund — To account for the accumulation of resources for the payment of principal, interest, and related costs of the Commission's long- term debt. Redevelopment Capital Projects Fund — To account for the administrative expenditures of the Commission and redevelopment capital projects. In addition, the Commission also reports the following major proprietary funds: Kimball Towers — To account for the activities relating to the operations of Kimball Tower which use is restricted to housing low and moderate income seniors. Morgan Towers — To account for the activities relating to the operations of Morgan Tower which use is restricted to housing low and moderate income seniors. 22 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (c) Cash and Investments The Commission's investment policy authorizes deposits in any of the approved investments contained in the California Government Code Sections 53600 et seq. During the year ended June 30, 2011, the Commission complied with these policies. Investment income earned on unrestricted cash is allocated to the Commission's various funds as required by grant/loan agreements or at the Board's discretion. The Commission pools its available cash with the City for investment purposes. The City considers pooled cash and investment amounts, with original maturities of three months or less, to be cash equivalents. Cash and cash equivalents are combined with investments and displayed as cash and investments. In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available. The Commission participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF) which has invested a portion of the pool funds in Structured Notes and Asset -backed Securities. LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset -backed Securities are subject to market risk as to change in interest rates. (d) Land Held for Resale Land held for resale is recorded at the lower of cost or, upon entering into a contract for sale, the estimated net realizable value. Fund balances are reserved in amounts equal to the carrying value of land and buildings held for resale, because such assets are not available to finance the Commission's current operations. (e) Use of Restricted/Net Assets When an expense is incurred for purposes for which both restricted net assets are available, the Commission's policy is to apply restricted net assets first. ?3 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (f) Interfund Transactions Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the noncurrent portion of interfund loans). (g) Interest Payable In the government -wide financial statements, interest payable of long-term debt is recognized as the liability is incurred for governmental fund types. In the fund financial statements, governmental fund types do not recognize the interest payable when the liability is incurred. Rather, interest expense is simply recorded when it is due or paid. (h) Long -Term Liabilities Government -Wide Financial Statements — Long-term debt and other long-term obligations are reported as liabilities in the primary government's governmental activity. Fund Financial Statements — The fund financial statements do not present long- term debt but are shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide Statement of Net Assets. (i) Net Assets In the government -wide financial statements, net assets are classified in the following categories: Invested in Capital Assets, net of Related Debt — This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that attributed to the acquisition, construction, or improvement of the assets. Restricted Net Assets — This amount is restricted by external creditors, grantors, contributors, laws or regulations of other governments. Unrestricted Net Assets — This amount is all net assets that do not meet the definition of "invested in capital assets, net of related debt" or "restricted net assets." 24 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (1) Summary of Significant Accounting Policies, (Continued) (j) Property Tax Increment One of the Commission's primary sources of revenue is from property tax increments. The assessed valuation of all property within the Downtown Redevelopment Project area was determined on the date of adoption of the Redevelopment Plan. Property taxes related to the incremental increase in assessed values after the adoption of the Redevelopment Plan are allocated to the Commission; all taxes on the "frozen" assessed valuation of the property are allocated to the City and unrelated taxing agencies. (k) Use of Estimates The preparation of the basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions. (2) Enterprise Fund Restricted Cash • In accordance with Department of Housing and Urban Development (HUD) requirements, the Morgan Towers Enterprise Fund maintains the following restricted cash accounts: Reserve for replacements of $363,634 represents a monthly deposit of $3,127, less current use for replacement, plus income earned thereon. The balance of this reserve will be used for the future replacement of property with HUD's approval. Residual receipts reserve of $227,690 is an accumulation of surplus cash as calculated by HUD's Computation of Surplus Cash, Distributions and Residual Receipts, which can be expended only with HUD's approval. Reserve for M1P and insurance impounds of $9,656 and $6,677, respectively, totaling $16,333, which represents amounts held for the future payment of property and mortgage insurance. Additionally, the Kimball Towers Enterprise Fund maintains the following HUD restricted cash accounts: Residual receipts reserve of $305,907 is an accumulation of surplus cash as calculated by HUD's Computation of Surplus Cash, Distributions and Residual Receipts, which can be expended only with HUD's approval. Other restricted cash and investments totaling $825,146 are included in the accompanying basic financial statements. 25 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (3) Transfers In/Transfers Out The following schedule summarizes the Commission's transfer activity: Transfers In Transfers Out Amount Community Development Block Grant Fund HUD Program Income Special Revenue Fund $ 119,531 (a) Redevelopment Debt Service Fund Low and Moderate Income Housing Fund 861,863 (b) Redevelopment Capital Project Fund Redevelopment Debt Service Fund 5,408,287 (c) Redevelopment Debt Service Fund Redevelopment Capital Project Fund 4,201.068 (d) Total $10 590.749 (a) Transfer for expenditure recovery. (b) The Low and Moderate Income Housing Fund transferred $861,863 to the Redevelopment Debt Service Fund to fund a portion of the 1999 and 2005 Tax Allocation Bonds (18% of series A) debt service payments that related to low and moderate development. (c) Transfers for operations and capital projects. (d) To establish the 2011 Reserve subaccount as described in the indenture. (4) Cash and Investments Cash and investments as of June 30, 2011 are classified in the accompanying financial statements as follows: Statement of Net Assets: Cash and investments $17,212,945 Cash and investments with fiscal agent 43,723,263 Total cash and investments $60,936,208 Cash and investments as of June 30, 2011 consist of the following: Deposits with financial institutions $ 1,280,932 Investments 59,655,276 Total cash and investments $60936,208 26 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (4) Cash and Investments, (Continued) Investments Authorized by the California Government Code and the Commission's Investment Policy The table below identifies the investment types that are authorized for the Commission by the California Government Code and the Commission's investment policy. The table also identifies certain provisions of the California Government Code (or the Commission's investment policy, if more restrictive) that address interest rate risk and concentration of credit risk. This table does not address investments of debt proceeds held by fiscal agent that are governed by the provisions of debt agreements of the Commission, rather than the general provisions of the California Government Code or the Commission's investment policy. Investment Types Authorized by State Law Local Agency Bonds U.S. Treasury Obligations U.S. Agency Securities Banker's Acceptances Commercial Paper Negotiable Certificates of Deposit Repurchase Agreements Reverse Repurchase Agreements Medium -Term Notes Mutual Funds Money Market Mutual Funds Mortgage Pass -Through Securities County Pooled Investment Funds Local Agency Investment Fund (LAIF) JPA Pools (other investment pools) Authorized By Investment *Maximum Policy Maturity Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes Yes 5 years 5 years 5 years 180 days 270 days 5 years 1 year 92 days 5 years N/A N/A 5 years N/A N/A N/A *Maximum Percentage Of Portfolio None None None 40% 25% 30% None 20% of base value 30% 15% 20% 20% None None None *Maximum Investment in One Issuer None None None 30% 10% None None None None 10% 10% None None None None * Based on state law requirements or investment policy requirements, whichever is more restrictive. 27 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (4) Cash and Investments, (Continued) Investments Authorized by Debt Agreements Investment of debt proceeds held by fiscal agent are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the Commission's investment policy. The table below identifies the investment types that are generally authorized for investments held by fiscal agent. The table also identifies certain provisions of these debt agreements that address interest rate risk and concentration of credit risk. Authorized Investment Type Maximum Maximum Maximum Percentage Investment Maturity Allowed in One Issuer U.S. Treasury Obligations None None None U.S. Agency Securities None None None Banker's Acceptances 360 days None None Commercial Paper 270 days None None Money Market Mutual Funds N/A None None Investment Contracts 30 years None None Certificates of Deposit None None None Repurchase Agreements None None None Mortgage Pass -Through Securities None None None State Bonds or Notes None None None Municipal Bonds or Notes None None None Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the Commission manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. 28 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (4) Cash and Investments, (Continued) Information about the sensitivity of the fair values of the Commission's investments (including investments held by fiscal agent) to market interest rate fluctuations is provided by the following table that shows the distribution of the Commission's investments by maturity: Investment Type U.S. Agency Securities Local Agency Investment Fund Held by Fiscal Agent: Treasury Coupon Securities Money Market Fund Local Agency Investment Fund Commercial Paper Money Market Mutual Funds Total Total $ 3,149,625 12,782,388 1,094,028 5,967,159 305,907 2,344,000 34,012.169 $59 655 276 Remaining Maturity (in Months) 12 Months 13 to 24 25 to 60 or Less Months Months 3,149,625 12,782,388 282,719 290,939 520.370 5,967,159 - 305,907 - - 2,344,000 - 34,012,169 55,694.342 290,939 3 669 995 Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the Commission's investment policy, or debt agreements, and the actual rating as of year end for each investment type. Investment Type U.S. Agency Securities Local Agency Investment Fund (LAIF) Held by Fiscal Agent: Treasury Coupon Securities Money Market Fund Local Agency Investment Fund Commercial Paper Money Market Mutual Funds Total Minimum Legal Total Rating AAA $ 3,149,625 12,782,388 1,094,028 5,967,159 305,907 2,344,000 34,012,169 $59,655,276 29 Ratings as of Year End Not Rated AAA 3,149,625 N/A - 12,782,388 AAA 1,094,028 N/A N/A N/A A 5,967,159 305,907 2,344,000 34,012,169 - 38,255,822 21,399,454 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (4) Cash and Investments, (Continued) Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not he able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker -dealer) to a transaction, a government will not he able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the Commission's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure Commission deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. For investments identified herein as held by fiscal agent, the fiscal agent selects the investment under the terms of the applicable trust agreement, acquires the investment, and holds the investment on behalf of the reporting government. Investment in State Investment Pool The Commission is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the Commission's investment in this pool is reported in the accompanying financial statements at amounts based upon the Commission's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. 30 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (5) Capital Assets The following is a summary of capital assets for the year ended June 30, 2011: Balance at Balance at July 1, 2010 Additions Deletions June 30, 2011 Government Activities: Capital assets: Buildings and improvements 82,450,000 Machinery and equipment 81,163 2,450,000 81,163 Total cost of depreciable capital assets 2,531,163 - 2,531,163 Less accumulated depreciation: Buildings and improvements (1,868,334) (81,667) (1,950,001) Machinery and equipment (81,163) - - (81,163) Total accumulated depreciation (1,949,497) (81,667) (2,031,164) Depreciable capital assets, net 581,666 (81,667) - 499,999 Capital assets not depreciated: Land 2,050,000 - 2,050,000 Capital assets, net $2,631,666 (81.667) - 2,549,999 Depreciation expense in governmental activities for capital assets for the year ended June 30, 2011 was $81,667 which was allocated to community development. 31 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (5) Capital Assets, (Continued) Business -Type Activities: Depreciable assets: Buildings and improvements Furniture and equipment Balance at Balance at July 1, 2010 Additions Deletions June 30, 2011 $15,684,584 462,153 15,684,584 462,153 Total cost of depreciable assets 16,146,737 - 16,146,737 Less accumulated depreciation (9,045,210) (413,569) (9,458,779) Depreciable capital assets, net 7,101,527 (413,569) 6,687,958 Capital assets not depreciated: Land 528,382 - - 528,382 Capital assets, net $ 7.629,909 (413.569) - 7,216 340 Depreciation expense in business -type activities for capital assets for the year ended June 30, 2011 was $413,569 which was allocated to low and moderate housing. 32 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (6) Loans Receivable Outstanding at Description June 30, 2011 Copper Hills Apartments, LP $7,863,787 Plaza Manor 512,473 Single -Family Housing Rehabilitation Loan Program 190,776 Young Trust 129,778 Big Jackel Trust 54,664 Miles of Cars 639,709 Total $9 391 187 Copper Hills Apartments, LP — CDC Residual Receipts Note dated February 19, 1999 disclosed a loan of $2,400,000 with 3% interest per annum for 55 years, funded by HOME and Low & Moderate Income Housing Funds. A second and junior to the CDC Residual Receipts Note was made on June 3, 1999 for $4,400,000, referred to as CDC Rehabilitation Note with 3% interest per annum for 55 years and funded by Low & Moderate Income Housing Fund. These loans were made to acquire, develop, rehabilitate and operate the multi -family apartments located at "Q" Avenue in National City, Ca. This project will contain 134 apartment dwelling units following rehabilitation and renovation. Plaza Manor — CDC of the City of National City entered into a loan agreement with Plaza Manor Preservation, LP on December 18, 2001 in the amount of $500,000 with 3% compound interest per annum and shall end on April 15, 2032. The borrower has acquired a property located in the City of National City with aid of the said loan and with the intention to operate a 372 unit project as a very low and low income housing project. Funding sources for this loan were HOME (48%) and Low & Moderate Income Housing Funds (52%). Single -Family Housing Rehabilitation Loan Program — Prior to 2005, the CDC of the City of National City provided loans to eligible low-income homeowners to make repairs and basic home improvements that maintain the quality of their housing and created a positive effect in the surrounding neighborhood. Loans were offered at below -market interest rates utilizing federal HOME Investment Partnerships Program funds. Young Trust — A Promissory Note secured by Deed of Trust was made on December 17, 2003 between CDC of the City of National City and Robert Dale Young and Deborah Mae Young in the amount of $230,000 with interest of 5% per year. This loan is in reference to the California Community Redevelopment Law, where CDC appeals to redevelop a portion of the National City Redevelopment project, which is bounded by the location at Harrison Avenue, National City. Big Jackel Trust — CDC of the City of National City entered into a Memorandum of Understanding with Big Jackel Trust to establish a rehabilitation loan for an amount not- 33 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (6) Loans Receivable, (Continued) to -exceed $200,000 on April 4, 1995. The loan was not subject to principal payments and did not accrue interest for the initial two years. For eighteen years thereafter, the loan would be subject to regular monthly payments with 3% interest per annum. The purpose of the loan was to rehabilitate and enhance Big Ben Market in National City with additional storage space, improved signage and lighting, exterior and interior paint, and repaving of parking surfaces and striping. Miles of Cars — CDC of the City of National City entered into Freeway Sign Rehabilitation Loan Agreement with the Mile of Cars Association, a nonprofit, mutual benefit corporation on July 8, 2010 for the amount of $660,000 with 2% interest per annum with a term of 20 years from the date of initial disbursement. The loan requires quarterly payments of principal and interest. The purpose of the loan was to rehabilitate existing freeway signage equipment and improvements. Casa Familiar — CDC of the City of National City entered in an Acquisition, Rehabilitation and Permanent Loan Agreement with Casa Familiar, Inc. on October 1, 2009 amounting to $516,900 with 2% per annum from the date of the disbursement. Interest shall accrue, however, no payments shall be due under the CDC Note until July 1, 2011, and annually on July 1 of each year during the term of the CDC note, and Borrower shall make payments to the CDC in the manner provided in the CDC note until 55 years. This loan was intended to acquire, rehabilitate and permanently finance the property located at 304 East Fifth Street, National City, CA and is comprised entirely of HUD HOME funds all of which shall be used for HOME eligible purposes. As of June 30, 2011, an allowance has been established for the entire amount of the note outstanding as collection of this note is not expected at this time. Plaza City — CDC of the City of National City entered into a Loan Agreement with Plaza City Apartments, LP on November 1, 2005 in the amount of $2,700,000 with 3% interest per annum for 55 years. It was amended per Resolution No. 2006-202 dated September 19, 2006 which increased the loan amount by $722,000 for a total of $3,422,000. This loan will be used by the borrower to pay the balance of the purchase price and additional costs relating to the acquisition, demolition and development of certain real property located at 1535 Plaza Blvd., National City, CA. As of June 30, 2011, an allowance has been established for the entire amountof the note outstanding as collection of this note is not expected at this time. Constellation — CDC of the City of National City entered into a Loan Agreement with Constellation Property Group (A Avenue) LP, a Delaware limited partnership, on December 13, 2007 for the amount of $2,500,000 with interest of 10%, non -compounded, requiring no interim payment of principal and interest and maturing on December 13, 2010. The purpose of the loan was to assist with the development of the Centro Condominium project on A Avenue in National City — a 91,199 square foot, four story condominium project housing 61 residential units and 108 parking spaces. As of June 30, 2011, an allowance has been established for the entire amount of the note outstanding as collection of this note is not expected at this time. 34 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (7) Long -Term Liabilities The following is a summary of changes in long-term liabilities for the year ended June 30, 2011: Governmental Activities: Bonds payable: 1999 Tax Allocation Bonds 2004 Series Tax Allocation Bonds 2005 Series A Tax Allocation Bonds 2005 Series B Tax Allocation Bonds 2011 Tax Allocation Bonds HUD 108 Bond 2003 A Balance July 1, 2010 Additions $4,090,000 4,620,000 18,905,000 Balance Amounts Amount Due June 30, Due Within Beyond One Deletions 2011 One Year Year (125,000) 3,965,000 130,000 3,835,000 (275,000) 4,345,000 285,000 4,060,000 (2,125,000) 16.780,000 3,060,000 13,720,000 9,840,000 - - 9,840,000 - 39,660,000 - 39,660,000 - 5,750,000 - (245,000) 5,505,000 260,000 Total bonds payable 43 205,000 39,660,000 Advance from City 739.966 Total governmental activities 43,944.966 39.660 000 Business -Type Activities: Notes Payable (2,770,000) 80,095,000 3,735,000 9,840,000 39,660,000 5,245,000 76,360,000 739,966 328,750 411,216 (2,770,000) 80 834,966 4,063,750 76,771,216 2,481,662 - (204,777) 2.276,885 218,492 2,058,393 Total business -type activities 2 481 662 - (204,777) 2,276,885 218,492 2,058,393 Total $45 426 628 39 600 000 (2,974,777) 83 111 851 4,282,242 78.829,609 /999 Tax Allocation Bonds In June 1999, the Commission issued S5,050,000 in Tax Allocation Bonds for the Q Avenue Redevelopment project. The bonds consist of $1,085,000 in serial bonds which mature from 2000 to 2010 in amounts ranging from $45,000 to $125,000, and $1,425,000 in term bonds which mature in 2019, and $2,540,000 in term bonds which mature in 2029. Interest is payable semi-annually on February 1 and August 1, at interest rates ranging from 3.30% to 4.50% 35 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (7) Long -Term Liabilities, (Continued) The annual debt service requirements for the 1999 Tax Allocation Bonds outstanding at June 30, 2011 are as follows: Fiscal Year Principal Interest Total 2012 $ 130,000 198,175 328,175 2013 135,000 191.550 326,550 2014 145,000 184.550 329,550 2015 150,000 177,176 327,176 2016 155,000 169.550 324,550 2017 165,000 161,549 326,549 2018 175,000 153,050 328,050 2019 180,000 144,175 324,175 2020 190,000 134,925 324,925 2021 200,000 125,050 325,050 2022 210,000 114,543 324,543 2023 220,000 103,525 323,525 2024 235,000 91,866 326,866 2025 245,000 79,566 324,566 2026 260,000 66,625 326,625 2027 270,000 53,044 323,044 2028 285,000 38,822 323,822 2029 300,000 23,831 323,831 2030 315,000 8,072 323,072 Total $3,965 000 2,219 644 6 148644 36 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (7) Long -Term Liabilities, (Continued) 2004 Tax Allocation Bonds In June 2004, the Commission issued $5,860,000 in Tax Allocation Bonds to finance a portion of the cost to construct a fire station, library, and community art center. The bonds consist of $3,045,000 in serial bonds which mature from 2005-2015 in amounts ranging from $220,000 to $330,000, and $1,085,000 in serial bonds which matures in fiscal years 2027-2033 in amounts ranging from $345,000 to $$465,000. Interest is paid semi-annually on February 1 and August 1, at interest rates ranging from 1.50% to 5.50%. The annual debt service requirements for the 2004 Tax Allocation Bonds outstanding at June 30, 2011 are as follows: Fiscal Year Principal Interest Total 2012 $ 285,000 210,010 495,010 2013 295,000 199,750 494,750 2014 305,000 188,540 493,540 2015 315,000 176,340 491,340 2016 330,000 163,425 493,425 2017 149,400 149,400 2018 - 149,400 149,400 2019 149,400 149,400 2020 - 149,400 149,400 2021 149,400 149,400 2022 149,400 149,400 2023 - 149,400 149,400 2024 149,400 149,400 2025 - 149,400 149,400 2026 - 149,400 149,400 2027 345,000 149,400 494,400 2028 360,000 134,150 494,150 2029 380,000 114,150 494,150 2030 400,000 94,150 494,150 2031 420,000 74,150 494,150 2032 445,000 49,150 494,150 2033 465,000 29,150 494,150 Total $4.345,000 3.076,365 7,421,365 37 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (7) Long -Term Liabilities, (Continued) 2005 Series A Tax Allocation Bonds In January 2005, the Commission issued $27,940,000 in Tax Allocation Bonds, Series A for the purpose of refunding the Commission's 2001 Series A Tax Allocation Bonds. Interest on the bonds is payable semiannually on August 1 and February 1, commencing August 1, 2005, at rates ranging from 2.9% to 4.85% per annum. The annual debt service requirements for the 2005 Series A Tax Allocation Bonds outstanding at June 30, 2011 are as follows: Fiscal Year Principal Interest Total 2012 $ 3,060,000 719,500 3,779,500 2013 3,200,000 577.050 3,777,050 2014 3,345,000 424,843 3,769,843 2015 3,505,000 262.115 3,767,115 2016 3,670.000 88,997 3,758,997 Total $16 780.000 2,072 505 18,852,505 2005 Series B Tax Allocation Bonds In January 2005, the Commission issued $9,840,000 in Tax Allocation Bonds, Series B for the purpose of refunding the Commission's 2001 Series B Tax Allocation Bonds. Interest on the bonds is payable semiannually on August 1 and February 1, commencing August 1, 2005, at rates ranging from 3.8% to 5.25% per annum. 38 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (7) Long -Term Liabilities, (Continued) The annual debt service requirements for the 2005 Series B Tax Allocation Bonds outstanding at June 30, 2011 are as follows: Fiscal Year Principal Interest Total 2012 $ 444,693 444,693 2013 444,693 444,693 2014 - 444,693 444,693 2015 - 444,693 444,693 2016 444,693 444,693 2017 760,000 444,693 1,204,693 2018 790,000 415,813 1,205,813 2019 825,000 385,003 1,210,003 2020 855,000 352,003 1,207,003 2021 890,000 317,803 1,207,803 2022 570,000 277,753 847,753 2023 595,000 253,528 848,528 2024 780,000 227,943 1,007,943 2025 815,000 194,013 1,009,013 2026 855,000 153,263 1,008,263 2027 555,000 110,513 665,513 2028 435,000 81,375 516,375 2029 250,000 58,538 308,538 2030 200,000 45,413 245,413 2031 210,000 34,913 244,913 2032 220,000 23,888 243,888 2033 235,000 12,338 247,338 Total $9,840 000 5,612,258 15 452 258 39 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (7) Long -Tenn Liabilities, (Continued) 2011 Tax Allocation Bonds In February 2011, the Commission issued $39,660,000 in Tax Allocation Bonds for the purpose of fund redevelopment and low and moderate income housing projects within the Project Area. The bonds consist of $9,790,000 in serial bonds which mature from 2012- 2021 in amounts ranging from $325,000 to $1,825,000, $5,830,000 in term bonds which mature in fiscal year 2024, and $24,040,000 terms bonds which mature in 2032. Interest is paid semi-annually on Febniary 1 and August I. at interest rates ranging from 3.00% to 5.75%. Fiscal Year Principal Interest Total 2012 $ 1,054,513 1,054,513 2013 325,000 2,565,031 2,890,031 2014 325,000 2,555,281 2,880,281 2015 320,000 2,542,281 2,862,281 2016 315,000 2,529,481 2,844,481 2017 1,145,000 2,515,700 3,660,700 2018 1,255,000 2,458,450 3,713,450 2019 1,315,000 2,395,700 3,710,700 2020 1,445,000 2,329,950 3,774,950 2021 1,520,000 2,254,088 3,774,088 2022 1,825,000 2,166,688 3,991,688 2023 1,930,000 2,061,750 3,991,750 2024 1,890,000 1,936,300 3,826,300 2025 2,010,000 1,813,450 3,823,450 2026 2.140,000 1,682,800 3,822,800 2027 2,285,000 1,533,000 3,818,000 2028 2,505,000 1,373,050 3,878,050 2029 2,880,000 1,197,700 4,077,700 2030 3,095,000 996,100 4,091,100 2031 3,635,000 779,450 4,414,450 2032 3,635,000 525,000 4,160,000 2033 3,875,000 271,250 4,136,250 Total $39,660 000 39.537 013 79 197.013 40 nOMMUNITY DEVELOPMENT COMMISSION OF THE CJTY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (7) Long -Term Liabilities, (Continued) 2003 A HUD 108 Bond The City issued $6,900,000 of HUD 108 Bonds, Series A on August 7, 2003 to provide funds for the construction of a fire station. The bonds mature annually through 2024 in the amount ranging from S170.000 to S635,000 beginning in 2005. The interest of the bonds is payable semi-annually on each Febniary 1 and August 1, commencing February 1, 2004. The annual debt service payments for the bonds Fiscal Year Principal 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Total $ 260,000 280,000 305,000 325,000 350,000 380,000 410,000 440,000 475,000 510,000 545,000 590,000 635,000 outstanding are as follows: Interest 286,413 274,117 260,227 244,850 227,967 209,233 188,528 165,847 141,044 113,975 84,640 52,770 18,066 $5,505,000 2,267 677 Total 546,413 554,117 565,227 569,850 577,967 589,233 598,528 605,847 616,044 623,975 629,640 642,770 653,066 7,772,677 Advance from City In 2010 the City of National City advanced to the Community Development Commission $739,966 at an interest rate of 3.96% to be paid back over 10 years. Accrued interest and principal payments are due on an annual basis. The amount outstanding as of June 30, 2011 is 8739,966. Note Payable The mortgage payable is secured by a deed of trust, bears interest at 6.5% and is payable to GMAC in the original amount of $3,718,928. The note is being repaid in monthly installments of $30,005, including interest, through August 2019. The note is insured by HUD and is secured by substantially all property and equipment of the Morgan Towers Enterprise Fund. The principal outstanding at June 30, 2011 was $2,276,885. 41 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (7) Long -Tenn Liabilities, (Continued) The annual principal payments of the note payable outstanding at June 30, 2011 are as follows: Fiscal Year Principal Interest Total 2012 $ 218,492 141,568 360,060 2013 233,124 126,936 360,060 2014 248,736 111,324 360,060 2015 265,395 94,665 360,060 2016 283,170 76,890 360,060 2017 302,136 57,924 360,060 2018 322,368 37,692 360,060 2019 343,957 16.103 360,060 2020 59,507 503 60,010 Total $2,276.885 663.605 2.940.490 Defeasance of Debt As of June 30, 2011, the outstanding balance of defeased issues are as follows: 1998 Tax Allocation Bonds $10,165,000 (8) Commitments and Contingencies Grant funds received by the Commission are subject to review by the grantor agencies. Such audits could lead to requests for reimbursements to the grantor agencies for expenditures disallowed under terms of the grant. The management of the Commission believes that such disallowances, if any, will not be significant. (9) National City Joint Powers Financing Authority The National Joint Powers Financing Authority ("JPFA") was created pursuant to a joint exercise of powers agreement entered into by and between the Commission and the City of National City on April 16, 1991. The purpose of such agreement was to provide for the financing and construction of the new police facility and Community Center. The JPFA is administered by a commission consisting of the members of the City Council and all voting power of JPFA resides in the Commission. 42 C')MMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (10) Pledged Revenues The Commission has a number of debt issuances outstanding that are collateralized by the pledging of certain revenues. The amount and term of the remainder of these commitments are indicated in the debt service to maturity tables presented in the accompanying notes. The purposes for which the proceeds of the related debt issuances were utilized are disclosed in the debt descriptions in the accompanying notes. For the current year, debt service payments as a percentage of the pledged gross revenue (or net of certain expenses where so required by the debt agreement) are indicated in the table below. These percentages also approximate the relationship of debt service to pledged revenue for the remainder of the term of the commitment: Description of Pledged Revenue Tax incrcrnent revenues Annual Amount of Pledged Revenue (net of expenses, where required) $11,070,963 Annual Debt Service Payments (of all debt secured by this revenue) Debt Service as a Percentage of Pledged Revenue 4,682,338 42% (11) Recent Changes in Legislation Affecting California Redevelopment Agencies On June 29, 2011, the Governor of the State of California signed Assembly Bills XI 26 and 27 as part of the State's budget package. Assembly Bill X1 26 requires each California redevelopment agency to suspend (effective July 1, 2011) nearly all activities except to implement existing contracts, meet already -incurred obligations, preserve its assets and prepare for the impending dissolution of the agency. Assembly Bill X1 27 provides a means for redevelopment agencies to continue to exist and operate by means of a Voluntary Alternative Redevelopment Program by adopting an ordinance agreeing to make certain payments to the County Auditor Controller in fiscal year 2011-12 and annual payments each fiscal year thereafter. 43 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (11) Recent Changes in Legislation Affecting California Redevelopment Agencies, (Continued) The League of California Cities and the California Redevelopment Association (CRA) filed a lawsuit on July 18, 2011 on behalf of cities, counties and redevelopment agencies petitioning the California Supreme Court to overturn Assembly Bills X1 26 and 27 on the grounds that they violate the California Constitution. On August 11, 2011, the California Supreme Court issued a stay of all of Assembly Bill X1 27 and most of Assembly Bill X1 26. The California Supreme Court stated in its order that "the briefing schedule is designed to facilitate oral argument as early as possible in 2011, and a decision before January 15, 2012." Because the stay provided by Assembly Bill X1 26 only affects enforcement, each agency must adopt an Enforceable Obligation Payment Schedule prior to September 30, as required by the statute. Enforceable obligations include bonds, loans and payments required by the federal or State government; legally enforceable payments required in connection with agency employees such as pension payments and unemployment payments, judgments or settlements; legally binding and enforceable agreements or contracts; and contracts or agreements necessary for the continued administration or operation of the agency that are permitted for purposes set forth in AB1X 26. On August 2, 2011, City Ordinance No. 360 was adopted, indicating that the Agency will comply with the Voluntary Alternative Redevelopment Program in order to permit the continued existence and operation of the agency, in the event Assembly Bills X1 26 and/or 27 are upheld as constitutional. The initial payment by the agency is estimated to be $2,752,650 with one half due on January 15, 2012 and the other half due May 15, 2012. Thereafter, an estimated $655,000 will be due annually. The semi-annual payments will he due on January 15 and May 15 of each year and would increase or decrease with changes in tax increment. Additionally, an increased amount would be due to schools if any new debt is incurred. Assembly Bill X1 27 allows a one-year reprieve on the agency's obligation to contribute 20% of tax increment to the low -and -moderate - income housing fund so as to permit the Agency to assemble sufficient funds to make its initial payments. Management believes that the Agency will have sufficient funds to pay its obligations as they become due during the fiscal year ending June 30, 2012. The nature and extent of the operation of redevelopment agencies in the State of California beyond that fiscal year are dependent upon the outcome of litigation surrounding the actions of the state. 44 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to Basic Financial Statements (Continued) (12) Prior Period Adjustment The accompanying financial statements include adjustments that resulted in the restatements of beginning fund balances/net assets. The following summarizes the effect of the prior period adjustments to beginning fund balance as of July 1, 2010: Fund balance -beginning of year, as previously reported To adjust notes receivable for notes previously not recorded and to adjust note balances for allowance for doubtful accounts. Fund balance -beginning of year, as restated Low and Moderate Income HOME Capital Projects Housing Program Fund — Special Special Redevelopment Revenue Revenue Fund Fund Fund $12,971,597 12,874,593 4,216,400 (2,500,000) 1,431,129 (817,574) $10,471,597 14 305 722 3,398,826 The following summarizes the effect of the prior period adjustments to beginning net assets as of July 1, 2010: Net Assets -beginning of year, as previously reported To adjust notes receivable for notes previously not recorded and to adjust note balances for allowance for doubtful accounts. Net Assets -beginning of year, as restated 45 Government -Wide Statement of Net Assets $ 6,244,725 (10,112,488) S (3.867,763) REQUIRED SUPPLEMENTARY INFORMATION 46 (This page intentionally left blank) 47 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Notes to the Required Supplementary Information Year ended June 30, 2011 (1) Budgetary Information The Commission adopts an annual budget prepared on the modified accrual basis of accounting for all governmental fund types. The Executive Director is required to prepare and submit to the Commission Board of Directors the annual budget of the Commission and administer it after adoption. Any revisions that alter the total appropriations must be approved by the Board of Directors. All annual appropriations lapse at fiscal year-end except for unexpended purchase orders or contracts and unexpended appropriations for capital projects. Total expenditures may not legally exceed total appropriations at the fund level. 48 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Community Development Block Grant - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2011 Revenues: Subventions and grants Total revenues Budgeted Amounts Original Final $ 1,424,740 1,424.740 Actual Variance with Final Budget Positive (Negative) 1,644,864 220,124 1,424,740 1,424,740 1,644,864 220,124 Expenditures: Current: Personnel services 249,608 249,608 211,696 37,912 Community development 528,450 528,450 235,542 292,908 Capital outlay 1,227,925 1,227,925 1,015,564 212,361 Debt Service: Principal - 245,000 (245,000) Interest and fiscal charges - 208,181 (208,181) "Total expenditures Excess (deficiency) of revenues over expenditures 2,005,983 2,005,983 1,915,983 90,000 (581,243) (581,243) (271,119) 310,124 Other financing sources (uses): Transfers in 119,531 119,531 Transfers to the City (123,960) (123,960) (123,960) - Total other financing sources (uses) (123,960) (123,960) (4,429) 119,531 Net change in fund balance (705,203) (705,203) (275,548) 429,655 Fund balance, beginning of year 275,548 275,548 275,548 Fund balance (deficit), end of year $ (429,655) (429,655) - 429,655 49 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Section 8 Housing Assistance - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2011 Budgeted Amounts Original Final Revenues: Subventions and grants $ 9,514,464 Interest income 7,500 Total revenues 9,521,964 Expenditures: Cim-enr Personnel services Community development Total expenditures Net change in fund balance Fund balance, beginning of year Fund balance, end of year Variance with Final Budget Positive Actual (Negative) 9,514,464 9,618,037 103,573 7,500 (7,500) 9,521,964 9,618,037 96,073 852,610 852,610 8,416,906 8,416,906 820,364 32,246 8,404,633 12,273 9,269,516 9,269,516 9,224,997 44,519 252,448 252,448 393,040 140,592 1,079,035 1,079,035 1,079,035 $ 1,331,483 1,331,483 1,472,075 140,592 50 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY HUD Program Income - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2011 Revenues: Interest income Other income Total revenues Expenditures: Current: Community development Debt service: Principal Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over expenditures Other financing sources (uses): Transfers out Total other financing sources (uses) Net change in fund balance Fund balance, beginning of year Fund balance, end of year Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) $ 19,700 19,700 10,221 (9,479) 100 100 202,582 202,482 19,800 19,800 212,803 193,003 25,157 25,157 25,156 1 245,000 245.000 - 245,000 306,650 306,650 71,163 235,487 576,807 576,807 96,319 480,488 (557,007) (557,007) 116,484 673,491 (119,531) (119,531) (119,531) (119,531) (557,007) (557,007) (3,047) 553,960 1,803,132 1,803,132 1,803,132 $ 1,246,125 51 1,246,125 1,800,085 553,960 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY HOME Program - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2011 Revenues: Subventions and grants Interest income Other income Total revenues Expenditures: Current. Personnel services Community development Total expenditures Nei change in fund balance Fund balance, beginning of year, as restated Fund balance, end of year Budgeted Amounts Original Final $ 636,617 64,143 Actual Variance with Final Budget Positive (Negative) 636,617 1,155,914 519,297 73,340 73,340 64,143 - (64,143) 700,760 700,760 1,229,254 528,494 103,203 103,203 69,100 1,581,150 1,684,353 (983,593) 3,398,826 $ 2,415,233 1,581,150 1,263,336 1,684,353 1,332,436 (983,593) (103,182) 3,398,826 3,398,826 2,415,233 34,103 317,814 351,917 880,411 3,295,644 880,411 52 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Low and Moderate Income Housing Program - Special Revenue Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2011 Budgeted Amounts Original Final Actual Variance with Final Budget Positive (Negative) Revenues: Property tax allocated $ 2,817,500 2,817,500 2,767,741 (49,759) Interest income 1,553 1,553 244,321 242,768 Other income 239,054 239,054 32,974 (206,080) Total revenues Expenditures: Current: Personnel services Community development Total expenditures Excess (deficiency) of revenues over expenditures 3,058,107 3,058,107 3,045,036 (13,071) 219,979 219,979 133,754 2,086,987 2,086,987 250,494 86,225 1,836,493 2,306,966 2,306,966 384,248 1,922,718 751,141 751,141 2,660,788 1,909,647 Other financing sources (uses): Transfers out (861,864) (861,864) (861,863) 1 Total other financing sources (uses) (861,864) (861,864) (861,863) 1 Net change in fund balance (110,723) (110,723) 1,798,925 1,909,648 Fund balance, beginning of year, as restated 14,305,722 14,305,722 14,305,722 - Fund balance, end of year $ 14,194,999 14,194,999 16,104,647 1,909,648 53 SUPPLEMENTARY SCHEDULES 54 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Redevelopment Fund - Debt Service Fund Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2011 Revenues: Property tax allocated Interest income Total revenues Budgeted Amounts Original Final $ 11,270,000 6,212 Actual Variance with Final Budget Positive (Negative) 11,270,000 6,212 11,276,212 11,276,212 11,070,963 8,836 (199,037) 2,624 11,079,799 (196,413) Expenditures: Current: Community development 2,597,803 2,597,803 2,613,680 (15,877) Debt service: Principal payments 2,525,000 2,525,000 2,525,000 Interest and fiscal charges 1,707,653 1,707,653 1,706,646 1,007 Total expenditures Excess (deficiency) of revenues over expenditures 6,830,456 6,830,456 6,845,326 (14,870) 4,445,756 4,445,756 4,234,473 (211,283) Other financing sources (uses): Transfers in 861,865 5,062,933 5,062,931 Transfers out (5,408,287) (5,408,287) (5,408,287) Total other financing sources (uses) (4,546,422) (345,354) (345,356) Net change in fund balance Fund balance, beginning of year Fund balance, end of year (2) (2) (100,666) 4,100,402 3,889,117 (211,285) 4,771,650 4,771,650 4,771,650 4,670,984 8,872,052 8,660,767 (211,285) 55 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Redevelopment Fund - Capital Projects Fund $ch.:dule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2011 Revenues: Subventions and grants Interest income Other income "Total revenues Expenditures: Current: Personnel services Community development Capital outlay Debt service: Cost of issuance Interest and fiscal charges Total expenditures Budgeted Amounts Original $ 201,916 92,000 179,422 Final 201,916 92,000 179,422 473,338 473,338 2,610,661 1,289,959 4,178,309 2,610,661 1,289,959 4,178,309 Variance with Final Budget Positive Actual (Negative) 56,896 126,764 34,233 (145,020) 34,764 (145,189) 217,893 (255,445) 7,042,585 568,076 936,108 353,851 1,927,618 2,250,691 460,686 439,442 21,244 11,250 11,250 11,250 - 8,090,179 8,550,865 5,357,003 3,193,862 Excess (deficiency) of revenues over (under) expenditures (7,616,841) (8,077,527) (5,139,110) 2,938,417 Other financing sources: Transfers in Transfers out Transfer to City of National City Original discount on issuance Issuance of long-term debt 5,408,287 5,408,287 5,408,287 (4,201,068) (4,201,068) (811,157) (811,157) (1,056,085) (1,056,085) 39.660,000 39,660,000 Total other financing sources 4,597,130 38,999,977 38,999,977 - Net change in fund balance (3,019,711) 30,922,450 33,860,867 2,938,417 Fund balance, beginning of year, as restated 10,471,597 10,471,597 10,471,597 Fund balance, end of year $ 7,451,886 41,394,047 44,332,464 2,938,417 56 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Supplemental Schedule of Excess Surplus Determination Fund Balance - June 30, 2011 Less Unavailable Amounts: Land held for resale Loans, net of deferred interest income Per Audited Basic Financial Statements June 30, 2011 $ 16,104,647 (360,000) (6,146,578) Available Low/Moderate Income Housing Funds (deficit) 9,598,069 Limitation (Greater of $1,000,000 or Four Years Set -Aside): Set -aside for last four years 2010 - 2011 2009 - 2010 2008 - 2009 2007 - 2008 Total set -aside for last four years Base limitation Greater Amount Computed Excess Surplus - June 30, 2011 2,767,741 2,796,072 2,947,556 2,941,607 11,452,976 1,000,000 11,452,976 Note: This schedule is prepared in accordance with Health & Safety Code 33333.10(h)(3). This schedule is prepared using the modified accrual basis of accounting described in Note 1 to the basic financial statements of the Community Development Commission of the City of National City (the "Commission"). This schedule includes financial data from all the Low and Moderate Income Housing Special Revenue Funds of the Commission. 57 (This page intentionally left plank) 58 Mayer Hoffman McCann P.C. :n Independent CPA Firm r301 Dupont Drive, Suite 200 Irvine, California 92612 949-474-2020 ph 949-263-5520 fx www.mhm-pc-com Board of Directors Community Development Commission of the City of National City National City, California REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS We have audited the governmental activities, business -type activities and each major fund of the Community Development Commission of the City of National City (the "Commission"), a component unit of the City of National City, California, as of and for the year ended June 30, 2011, which collectively comprise the Commission's basis financial statements, and have issued our report thereon dated December 21, 2011. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting Management of Commission is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered the Commission's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Commission's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Commission's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not he prevented, or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. 59 Board of Directors Community Development Commission of the City of National City Page Two A significant deficiency is defined to be a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. The items described in the accompanying Schedule of Findings and Recommendation as item (2011-01) conforms to this definition. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Commission's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. Such provisions included those provisions of laws and regulations identified in the Guidelines for Compliance Audits of California Redevelopment Agencies, June 2011, issued by the State Controller and as interpreted in the Auditing Procedures for Accomplishing Compliance Audits of California Redevelopment Agencies, August 2011, issued by the Governmental Accounting and Auditing Committee of the California Society of Certified Public Accountants. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. In our opinion, the Commission complied, in all material respects, with the compliance requirements referred to above that are applicable for the year ended June 30, 2011, except for certain matters of noncompliance which are described in the accompanying Schedule of Findings and Recommendation as item (2011-02 and 2011-03). This report is intended solely for the information and use of the Board of Directors, Commission's management and the State Controller and is not intended to be and should not be used by anyone other than these specified parties. Irvine, California December 21, 2011 60 Mayer Hoffman McCann P.C. An Independent CPA Firm 2301 Dupont Drive, Suite 200 Irvine, California 92612 949-474-2020 ph 949-263-5520 fx www.mhm-pc.com Board of Directors Community Development Commission of the City of National City National City, California REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH GUIDELINES FOR COMPLIANCE AUDITS OF CALIFORNIA REDEVELOPMENT AGENCIES, JUNE 2011, ISSUED BY THE STATE CONTROLLER Independent Auditors' Report Compliance We have audited the Community Development Commission of the City of National City (the "Commission"), a component unit of the City of National City, California, compliance with the California Health and Safety Code as required by Section 33080.1 for the year ended June 30, 2011. Compliance with the requirements referred to above is the responsibility of Agency's management. Our responsibility is to express an opinion on Commission's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Guidelines for Compliance Audits of California Redevelopment Agencies, June 2011, issued by the State Controller and as interpreted in the Auditing Procedures for Accomplishing Compliance Audits of California Redevelopment Agencies, August 2011, issued by the Governmental Accounting and Auditing Committee of the California Society of Certified Public Accountants. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the compliance requirements referred to above that could have a material effect on the Commission has occurred. An audit includes examining, on a test basis, evidence about the Agency's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the Commission's compliance with those requirements. In our opinion, the Commission complied, in all material respects, with the compliance requirements referred to above that are applicable for the year ended June 30, 2011, except for certain matters of noncompliance which are described in the accompanying Schedule of Findings and Recommendation as item (2011-02 and 2011-03). Internal Control Over Compliance Management of the Commission is responsible for establishing and maintaining effective internal control over compliance with the compliance requirements referred to above. In planning and performing our audit, we considered the Commission's internal control over compliance to determine the auditing procedures for the purpose of expressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Commission's internal control over compliance. 61 Board of Directors Community Development Commission of the City of National City Page Two A deficiency in internal control over compliance exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a compliance requirement will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be deficiencies. significant deficiencies, or material weaknesses in internal control over compliance. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. A significant deficiency is defined to be a deficiency, or a combination of deficiencies, in internal control that is Less severe than a material weakness, yet important enough to merit attention by those charged with governance. The items described in the accompanying Schedule of Findings and Recommendation as item (2011-02 and 2011-03) conforms to this definition. This report is intended solely for the information and use of the Board of Directors, Commission's management and the State Controller and is not intended to be and should not be used by anyone other 1than these specified parties. Irvine, California December 21, 2011 62 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Schedule of Findings and Recommendations Year ended June 30, 2011 (2010-01) Reporting of Notes Receivable During the audit, Finance Department and Community Development Commission (CDC) staff evaluated redevelopment and housing loans issued by the CDC. As a result of staff's evaluations, it was determined that many loans issued were unlikely to result in cash collection by the CDC due to the structure of the loan agreements. As a result, staff determined that the values of loans issued were in many cases less than the actual amount of money likely to be repaid to the CDC and where appropriate, allowance for doubtful accounts were established in order for the value of the loans reported to equal the amount of cash estimated to be collected in future years. This analysis resulted in an adjustment to beginning fund balance and net assets as the structure of these loans had riot changed from previous years. Recommendation We recommend that Community Development Commission and City Finance Department staff develop policies and procedures for communicating, documenting, and recording of significant loan transactions to insure that activities of the Commission are properly reflected in the accounting records. These policies and procedures should also include enhanced monitoring controls over the loans issued to ensure repayment is appropriately recorded, that the monies are being. used in accordance with the agreements terms and conditions, and that loans are periodically evaluated for collectahility. (2011-02) Land Held for Resale There is one parcel of land held for resale purchased with low and moderate income housing funds that were held beyond five years. Health & Safety Code §33334.16 requires Agencies to initiate activities to develop properties purchased with low and moderate income housing funds within five years from the date of acquisition. If development activities have not begun within this period, the legislative body may adopt a resolution extending the period for one time, not to exceed five years. The parcel was purchased in 2003 and had not been sold as of June 30, 2011. We were also not provided any evidence that a resolution was adopted extending the time period. Recommendation We recommend that the Commission take the necessary actions to comply with the Health & Safety Code §33334.16. 63 COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY Schedule of Findings and Recommendations Year ended June 30, 2011 (2010-03) Reconciliation of State Controllers Report to Audit Financial Statements The Commission is required to submit a State Controllers report on the Commission's financial results each year. Health & Safety Code §53891 and §53892 states that the Commission is required to submit a complete State Controllers report in addition to audited financial statements of the Commission. The State Controllers report should agree to the audited financial statements submitted to the State Controller. In reconciling the June 30, 2010 State Controllers Report to the 2010 audited financial statements, we found certain amounts reported that did not agree to the audited financial statements. Recommendation We recommend that the Commission have a detailed review process in place of these financial reports and ensure that process allows for the accurate submission of required financial information reported to the State Controller. 64 ITEM #31 1 /24/12 POST FURLOUGH REPORT (HUMAN RESOURCES) ITEM #32 1/24/12 CLOSED SESSION REPORT (CITY ATTORNEY)