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2012 06-19 CC HA AGENDA PKT
Agenda Of A Regular Meeting — National City City Council/Community Development Commission - Housing Authority of the City of National City Council Chambers 1243 National City Boulevard National City, California Regular Meeting — Tuesday — June 19, 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 of the City of National City to be receptive to your cencerms 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 of the City of National City 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 of the City of National City action must be brought back on a subsequent Council of the City of National City 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 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 audidfonos estan disponibles en el pasillo al principio de la junta. Council Requests That All Cell Phones And Pagers Be Turned Off During City Council Meetings National City City Council /Community Development Commission/Housing Authority CITY COUNCIL PRESENTATION 06/19/12 - Page 2 1. Employee for the month of June, 2012 — James Kim - Graffiti Technician Assistant — Neighborhood Services CONSENT CALENDAR Consent Calendar: Consent calendar items involve matters, which are of a routine or noncontroversial nature. All co::ser:t 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. 2. Approval of the Minutes of the Special Meeting of November 15, 2011 and the Regular Meeting of June 5, 2012 of the National City City Council/Community Development Commission - Housing Authority of the City of National City. (City Clerk) 3. Resolution of the City Council of the City of National City calling and giving notice of the holding of a General Municipal Election to be held on Tuesday, November 6, 2012, for the election of two members of the City Council, a City Treasurer and a City Clerk as required by the provisions of the laws of the State of California relating to General Law Cities. (City Clerk) 4. Resolution of the City Council of the City of National City requesting the Board of Supervisors of the County of San Diego to consolidate a General Municipal Election to be held November 6, 2012, with the Statewide General Election to be held on the same date pursuant to Section 10403 of the Election Code. (City Clerk) 5. Resolution of the City Council of the City of National City adopting regulations for candidates for elective office pertaining to candidates' Statements of Qualifications submitted to the voters at an election to be held on Tuesday, November 6, 2012. (City Clerk) National City City Council /Community Development Commission/Housing Authority 06/19/12 - Page 3 CONSENT CALENDAR (Cont.) 6. Resolution of the City Council of the City of National City authorizing the Mayor to exercise the end of lease option and approve the purchase of three (3) 2009 model Hybrid Toyota Prius from Frank Toyota of National City. The total payoff price is $43,331.97 plus sales tax and vehicle registration fees estimated at $4500 for all three vehicles for a grand total of $47,573.52. Funds are available in the Motor Vehicle Service Fund Account #644-522-223-643. (Public Works) 7. Resolution of the City Council of the City of National City approving a Joint Trench Offer Agreement with SDG&E wherein SDG&E shall reimburse the City up to the not -to -exceed amount of $1,670,915 for actual costs incurred by the City and authorizing the Mayor to execute Agreement in conjunction with District 24 (8th Street) aerial to underground conversion of utilities. (Development Services/Engineering) 8. Resolution of the City Council of the City of National City authorizing the filing of a Proposition 84 Storm Water Grant Program (SWGP) application for the "A" Avenue Green Street and Pedestrian Pathway Project in the amount of $2,500,000 and committing to a local match of $800,000 for a total project cost of $3,300,000 (local match available from various CIP). (Development Services/Engineering) 9. Resolution of the City Council of the City of National City approving the Annual Report for the Landscape Maintenance District No. 1 (Mile of Cars) for Fiscal Year 2012-2013. (Community Services) 10. Resolution of the City Council of the City of National City declaring its intention to levy and collect assessments for the Landscape Maintenance District No. 1 (Mile of Cars) for Fiscal Year 2012-2013. (Community Services) 11. Resolution of the City Council of the City of National City initiating proceedings for the levy and collection of assessments for the Landscape Maintenance District No. 1 (Mile of Cars) for Fiscal Year 2012-2013. (Community Services) National City City Council /Community Development Commission/Housing Authority 06/19/12 - Page 4 CONSENT CALENDAR (Cont.) 12. Resolution of the City Council of the City of National City waiving the bid process by piggybacking Western States Contracting Alliance (WSCA) contract #1715 and authorizing the Mayor to execute a 5 year multifunction copier lease and service agreement with Konica Minolta Business Solutions USA Inc. (Administrative Services) 13. Resolution of the City Council of the City of National City approving an Amendment to the WINGS Agreement (CT#1752) with the National School District for the National City Public Library to provide the before and after -school program at the ten (10) schools of the District for a total amount of $1,012,000 for FY 2012-2013, representing an increase of $32,302 over the original contract amount. (Library) 14. Resolution of the City Council of the City of National City ratifying an Amendment to Agreement (CT#1752) with the National School District in the amount of $125,000 for the National City Public Library to provide Camp WINGS summer program at the National School District's eight (8) school sites. (Library) 15. Resolution of the City Council of the City of National City approving a salary schedule for the Municipal Employees' Association employee group for Fiscal Year 2012-2013 in compliance with the requirements of the California Public Employee's System (CaIPERS). (Human Resources) 16. Resolution of the City Council of the City of National City approving a salary schedule for the Firefighters' Association employee group for Fiscal Year 2012- 2013 in compliance with the requirements of the California Public Employee's System (CalPERS). (Human Resources) 17. Resolution of the City Council of the City of National City approving a salary schedule for the Police Officers' Association employee group for Fiscal Year 2012-2013 in compliance with the requirements of the California Public Employee's System (CalPERS). (Human Resources) National City City Council /Community Development Commission/Housing Authority 06/19/12 - Page 5 CONSENT CALENDAR (Cont.) 18. Resolution of the City Council of the City of National City approving a salary schedule for the Confidential employee group for Fiscal Year 2012-2013 in compliance with the requirements of the California Public Employee's System (CaIPERS). (Human Resources) 19. Resolution of the City Council of the City of National City approving and adopting the annual appropriation limit for Fiscal Year 2012-2013 of $49,718,940. (Finance) 20. WARRANT REGISTER # 47 Warrant Register #47 for the period of 05/16/12 through 05/22/12 in the amount of $521,784.89. (Finance) 21. WARRANT REGISTER # 48 Warrant Register #48 for the period of 05/21/12 through 05/29/12 in the amount of $2,751,317.35. (Finance) PUBLIC HEARING 22. Public Hearing: Weed Abatement - Council to hear report findings regarding abated properties and associated fees per National City Code 9.12.020 - Public Nuisance Declared — Weeds and other Flammable Materials (Fire) NON CONSENT RESOLUTIONS 23. Resolution of the City Council of the City of National City approving a compensation plan for members of the Executive and Management groups to include: a cost of living adjustment of four percent; an adjustment in the City's contribution to employee health care to $1,200; the addition of a two percent bilingual pay differential for eligible employees; authorizing the City Manager to grant up to an additional four percent merit increase; an upward adjustment in the Executive and Management salary bands; and the addition of a new Executive classification titled Director of Administrative Services. (Human Resources) National City City Council /Community Development Commission/Housing Authority 06/19/12 - Page 6 NON CONSENT RESOLUTIONS (Cont.) 24. Resolution of the City Council of the City of National City authorizing the issuance of its 2012 General Obligation Refunding Bonds, authorizing and directing the execution of a Paying Agent Agreement and certain other related documents, and authorizing actions related thereto. (City Manager/Finance) 25.. Resolution of the City Council of the City of National City adopting a budget for the 2012-2013 Fiscal Year. (City Manager/Finance/Human Resources) NEW BUSINESS 26. League of California Cities Annual Conference — Designation of Voting Delegate and Alternate(s). (City Manager) 27. Report on pawn brokers, second-hand dealers, and gold buying businesses and the impending expiration of the moratorium. (City Attorney) 28. Directive from the City Council (Code Reviewing Body) for staff to review the City's Conflict of Interest Code and return with the completed code review, including any updates if needed, prior to October 1, 2012, per Government Code Section 87306.5. (City Attorney) COMMUNITY DEVELOPMENT COMMISSION - HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY CONSENT CALENDAR 29. Resolution of the Community Development Commission Housing Authority of the City of National City adopting the Morgan Tower and Kimball Tower Budgets for Fiscal Year 2012-2013. (Housing & Grants) National City City Council /Community Development Commission/Housing Authority 06/19/12 - Page 7 CONSENT CALENDAR (Cont.) 30. Resolution of the Community Development Commission of the City of National City acting in its capacity as the Housing Authority of the City of National City approving and accepting the transfer of the housing functions, assets, and obligations of and from the Successor Agency to the Community Development Commission as the National City Redevelopment Agency. (City Attorney/Housing & Grants) STAFF REPORTS 31. San Diego Unified Port District releases a request for Statements of interest and Qualifications (SOIQ) for a development project that implements the National City Bayfront Marina District Vision Plan. (Redevelopment) 32, Verbal Update on Amortization Schedule and Direction for Public Participation. (Redevelopment) 33. Closed Session Report (City Attorney) MAYOR AND CITY COUNCIL ADJOURNMENT Regular National City City Council/Community Development/Housing Authority of the City of National City Meeting — Tuesday — July 3, 2012 — 6:00 p.m. — Council Chambers — National City, California COPIES OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY MEETING AGENDAS AND MINUTES MAY BE OBTAINED THROUGH OUR WEBSITE AT www.nationaicitvca.aov INCORPORATED MEMORANDUM June 5, 2012 TO Leslie Deese, C. ana FROM Stacey Stevens sj man Resources Director SUBJECT ITT 4 #1 6/19/12 EMPLOYEE OF THE MONTH PROGRAM The Employee of the Month Program communicates the City's appreciation for outstanding performance. In doing so, it recognizes employees who maintain high standards of personal conduct and make significant contributions to the workplace and community. The employee to be recognized in June 2012 is James Kim — Graffiti Technician Assistant By copy of this memo, the employee is invited to attend the Council meeting on Tuesday, June 19, 2012 to be recognized for his achievement and service. Attachment cc: James Kim Brad Raulston — Executive Director Armando Vergara — Neighborhood Services Manager Josie Flores -Clark — Executive Assistant Human Resources — Office File SS:Igr Performance Recognition Program (2) Human Resources Department 140 E. 12th Street, Suite A, National City, CA 91950-3312 619/336-4300 Fax 619/336-4303 www.nationalcityca.gov Ca I nominate City of National City Performance Recognition Award Nomination Form �• �/?%S j(/,/ RECEIVEL JUN 0 5 2012 HUMAN } Of NA I10 \AL Ci71. RESOURCES DEPARTMENT for the Performance Recognition Award for the following reasons: Please state reason why your nominee should receive an award, (i.e., examples of service beyond requirements of position, exemplary service to the public, outstanding job performance, etc). Do not to exceed 150 total words. Please be as specific as possible when giving your examples. It is the recommendation of the Neighborhood Services Division to nominate Graffiti Abatement Assistant James Kim for employee of the month of June 2012. James Kim recently completed his five years of service with the City and has continued to demonstrate year after year a high level of service and dedication to his position. James continuously makes on and off duty contributions to the city as not only a dedicated employee but as respected citizen as well. Currently James has taken on the task of working with the volunteer program that works with graffiti removal within the city. James is currently training and mentoring a volunteer who is working off his required volunteer service from several tagging incidents that were documented via the Graffiti Tracker program. Prior to this program, James took the self -initiative and created his own photograph database and documented vandalism through out the city. This type of creativity and efforts show his demonstration to continue to enhance his service and maintain a positive willingness to assist his fellow staff and community. At a recent community event, James went out of his way to assist the National City Chamber with some problems they were having with some portable event equipment. Because of James's efforts on this date, the event organizers were able to have a successful day and additional staff was not required to respond. This is another great example of Mr. Kim's exemplary customer service and ongoing relationships with the public, businesses and community groups. Neighborhood Services recognizes and nominates Mr. James Kim as employee of the month of June 2012. FORWARD COMPLETED NOMINATION TO: Nominated by: National City Performance Recognition Program Human Resources Department Signature: Date: �p/S//Z ITEM #2 6/19/12 APPROVAL OF THE MINUTES OF THE SPECIAL MEETING OF NOVEMBER 15, 2011 AND THE REGULAR MEETING OF JUNE 5, 2012 OF THE NATIONAL CITY CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION - HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY (CITY CLERK) CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: June 19, 2012 AGENDA ITEM NO. 3 M TITLE: Resolution of the City Council of the City of National City calling and giving notice of the holding of a General Municipal Election to be held on Tuesday, November 6, 2012, for the election of two members of the City Council, a City Treasurer and a City Clerk as required by the provisions of the laws of the state of California relating to general law cities. PREPARED BY: Michael R. Dalla DEPARTMENT: City Clerk PHONE: 619-336-4226 APPROVED BY: EXPLANATION: h The proposed Resolution would call and give notice of a General Municipal Election to be held on November 6, 2012, for the purpose of electing two (2) members of the City Council for a full term of four (4) years, a City Treasurer for a full term of four (4) years and a City Clerk for a full term of four (4) years. FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: Sufficient funds are available to place the measure on the ballot. ENVIRONMENTAL REVIEW: ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Adopt the Resolution BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: ,osed Resolution RESOLUTION NO. 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY CALLING AND GIVING NOTICE OF THE HOLDING OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 6, 2012, FOR THE ELECTION OF CERTAIN OFFICERS AS REQUIRED BY THE PROVISIONS OF THE LAWS OF THE STATE OF CALIFORNIA RELATING TO GENERAL LAW CITIES WHEREAS, under the provisions of the laws relating to General Law cities in the State of California, a General Municipal Election shall be held on November 6, 2012, for the election of municipal officers. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE AS FOLLOWS: SECTION 1. That pursuant to the requirements of the laws of the State of California relating to General Law cities, there is called and ordered to be held in the City of National City, California, on Tuesday, November 6, 2012, a General Municipal Election for the purpose of electing two (2) members of the City Council for a full term of four (4) years each, a City Treasurer for a full term of four (4) years, and a City Clerk for a full term of four (4) years. SECTION 2. That the ballots to be used at the election shall be in form and content as required by law. SECTION 3. That the City Clerk is authorized to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election. SECTION 4. That the polls for the election shall be open at 7:00 a.m. of the clay of the election and shall remain open continuously from that time until eight o'clock p.m. of the same day when the polls shall be closed, except as provided in Section 14401 of the Elections Code of the State of Califomia. SECTION 5. That in all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections. SECTION 6. That notice of the time and place of holding the election is hereby given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law. SECTION 7. That in the event of a tie vote (if any two or more persons receive an equal and the highest number of votes for an office) as certified by the Registrar of Voters, the City Council, in accordance with Election Code Section 15651(a), shall set a date and time and place and summon the candidates who have received the tie votes to appear and will resolve the tie by lot. SECTION 8. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions of the City. --- Signature Page to Follow --- Resolution No. 2012— June 19, 2012 Page 2 PASSED and ADOPTED this 19th day of June, 2012. Ron Morrison, Mayor ATTEST: APPROVED AS TO FORM: Michael Daila, City Clerk Claudia Gacitua Silva, City Attorney CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: June 19, 2012 AGENDA ITEM NO. 14 EM TITLE: Resolution of the City Council of the City of National City requesting the Board of Supervisors of the County of San Diego to consolidate a General Municipal Election to be held on November 6, 2012, with the Statewide General Election to be held on the same date pursuant to Section 10403 of the Election Code. PREPARED BY: Michael R. Della' PHONE: 619-336-4226 EXPLANATION: DEPARTMENT: City Clerk APPROVED BY: Section 10403 of the California Elections Code authorizes the City to place an election ballot on the same ballot as that provided for a statewide election, and to consolidate a general municipal election with a statewide election, upon the filing with the County Board of Supervisors of a resolution of the City Council requesting the consolidation. The proposed resolution would satisfy the requirements of Section 10403. FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: Sufficient funds are available to place the measure on the ballot. ENVIRONMENTAL REVIEW: ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Adopt the Resolution BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: posed Resolution RESOLUTION NO. 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN DIEGO TO CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 6, 2012, WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THAT DATE PURSUANT TO SECTION 10403 OF THE ELECTIONS CODE WHEREAS, the City Council of the City of National City called a General Municipal Election to be held on November 6, 2012, for the purpose of the election of two (2) members of the City Council for a full term of four (4) years each, a City Treasurer for a full term of four (4) years, and a City Clerk for a full term of four (4) years; and WHEREAS, it is desirable that the General Municipal Election be consolidated with the statewide general election to be held on the same date and that within the City the precincts, polling places and election officers for the two elections be the same, and that the Registrar of Voters of the County of San Diego canvass the returns of the General Municipal Election and that the election be held in all respects as if there were only one election. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY DOES RESOLVE AS FOLLOWS: SECTION 1. That pursuant to the requirements of Section 10403 of the Elections Code, the Board of Supervisors of the County of San Diego is hereby requested to consent and agree to the consolidation of a General Municipal Election with the statewide general election on Tuesday, November 6, 2012, for the purpose of the election of two (2) members of the City Council for a full term of four (4) years each, a City Treasurer for a full term of four (4) years, and a City Clerk for a full term of four (4) years. SECTION 2. That the Registrar of Voters is authorized to canvass the returns of the General Municipal Election. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used. SECTION 3. That the Board of Supervisors is requested to issue instructions to the Registrar of Voters to take any and all steps necessary for the holding of the consolidated election. SECTION 4. That the City of National City recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any such costs. SECTION 5. That the City Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the Registrar of Voters of the County of San Diego, and enter it into the book of original Resolutions of the City. --- Signature Page to Follow --- Resolution No. 2012— June 19, 2012 Page 2 PASSED and ADOPTED this 19th day of June, 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: June 19, 2012 AGENDA ITEM NO. 5 EM TITLE: Resolution of the City Council of the City of National City adopting regulations for candidates for elective office pertaining to Candidates' Statements of Qualifications submitted to the voters at an election to be held on Tuesday, November 6, 2012. PREPARED BY: Michael R. DellaDEPARTMENT: City Clerk PHONE: 619-336-4226 APPROVED BY: »� EXPLANATION: We are required by law to adopt regulations for candidates' Statements of Qualifications prior to each Municipal Election. FINANCIAL STATEMENT: ACCOUNT NO. ENVIRONMENTAL REVIEW: ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Adopt the Resolution BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: )osed Resolution RESOLUTION NO. 2012— RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ADOPTING REGULATIONS FOR CANDIDATES FOR ELECTIVE OFFICE PERTAINING TO CANDIDATES' STATEMENTS SUBMITTED TO THE VOTERS AT AN ELECTION TO BE HELD ON TUESDAY, NOVEMBER 6, 2012 WHEREAS, Section 13307 of the Elections Code of the State of California provides that the governing body of any local agency adopt regulations pertaining to materials prepared by any candidate for a municipal election, including costs of the candidates' statements. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY DOES RESOLVE AS FOLLOWS: Section 1. GENERAL PROVISIONS. That pursuant to Section 13307 of the Elections Code of the State of California, each candidate for elective office to be voted for at an election to be held in the City of National City, California on Tuesday, November6, 2012, may prepare a candidate's statement on an appropriate form provided by the City Clerk. The statement may include the name, age and occupation of the candidate and a brief description of no more than 200 words of the candidate's education and qualifications expressed by the candidate himself or herself. The statement shall not include party affiliation of the candidate, nor membership or activity in partisan political organizations. The statement shall be filed in typewritten form in the Office of the City Clerk at the time the candidate's nomination papers are filed. The statement may be withdrawn, but not changed, during the period for filing nomination papers and until 6:00 p.m. of the next working day after the close of the nomination period. Section 2. FOREIGN LANGUAGE POLICY. a. Pursuant to state law, the candidates' statement must be translated and printed in Spanish. b. Pursuant to the Voting Rights Act of 1965 (as amended) and the Memorandum of Agreement between the County of San Diego and the United States Department of Justice dated June 23, 2004, the City is required to translate candidates' statements into the following languages in addition to English: Spanish, Tagalog and Vietnamese. c. The City Clerk shall have all candidates' statements translated into the language specified in (b) above. Section 3. PAYMENT. The candidate shall be required to pay for the cost of printing the candidate's statement in a foreign language. The City Clerk shall estimate the total cost of printing, handling, translating, and mailing the candidates' statements filed pursuant to this section, including costs incurred as a result of complying with the Voting Rights Act of 1965 (as amended), and require each candidate filing a statement to pay in advance to the local agency his or her estimated pro-rata share as a condition of having his or her statement included in the voter's pamphlet. In the event the estimated payment is required, the estimate is just an approximation of the actual cost that varies from one election to another election and may be significantly more or less than the estimate, depending on the actual number of candidates filing statements. Accordingly, the City Clerk is not bound by the estimate and may, on a pro-rata basis, bill the candidate for additional actual expense or refund any excess paid depending on the final actual cost. In the event of underpayment, the City Clerk may require the candidate to pay the balance of the cost incurred. In the event of overpayment, the City Clerk shall pro -rate the excess amount among the candidates and refund the excess amount paid within 30 days of the election. Resolution No. 2012— June 19, 2012 Page 2 Section 4. ADDITIONAL MATERIALS. No candidate will be permitted to include additional materials in the sample ballot package. Section 5. COPY OF RESOLUTION. The City Clerk shall provide each candidate or the candidate's representative with a copy of this Resolution at the time nominating petitions are issued. Section 6. REPEAL OF PREVIOUS RESOLUTIONS. All previous resolutions establishing Council Policy on payment for candidates' statements are repealed. S:oction 7. APPLICABILITY. This Resolution shall apply only to the election to be held on November 6, 2012, and shall then .be repealed. Section 8. CERTIFICATION BY CITY CLERK. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions. PASSED and ADOPTED this 19th day of June, 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: June 19, 2012 likM TITLE: AGENDA ITEM NO. 6 Resolution of the City Council of the City of National city authorizing the Mayor to exercise the end of lease option and approve the purchase of three (3) 2009 model Hybrid Toyota Prius from Frank Toyota of National City. The total payoff price is $43,331.97 plus sales tax and vehicle registration fees estimated at $4500 for all three vehicles for a grand total of $47,573.52. Funds are available in the Motor Vehicle Service Fund Account #644-522-223-643. PREPARED BY: Joe Smith PHONE: 336-4587 EXPLANATION: See attached Explanation. • FINANCIAL STATEMENT: ACCOUNT NO. DEPARTMENT: p APPROVED BY: APPROVED: APPROVED: blic Works 1 Finance MIS Funds are available in the Motor Vehicle Service Fund Account #644-522-223-643 and can be transferred to the Automotive Equipment Account #644-522-223-511 for the purchase of the three Prius. ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Staff recommends the purchase of the 3 Hybrid Toyota Prius for use in the Civic Center pool fleet BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: planation ease Purchase documents from Toyota Financial Services for each of the three vehicles. Explanation: On May 19, 2009, through Council Resolution 2008-99, the City accepted the lowest, responsive and responsible bid and entered into agreement with Frank Toyota for a three (3) year lease for four (4) 2009 model Hybrid Toyota Prius in the amount of $52,215.80. One of the 4 Prius was totaled in an automobile accident and was paid out by an insurance claim leaving 3 Prius available for the City to purchase. The 3 remaining Prius are in very good condition, with very low miles which makes them excellent candidates to remain part of the Civic Center pool fleet. Their payoff value as of June 15, 2012 is $43,331.97 not including sale tax and DMV fees which is estimated at approximately $4500 for all 3 vehicle for a grand total of $47,573.52. The purchase of the Prius would assist the City in the future development of a five year replacement program in which part of this program would focus on making the overall fleet size more manageable, lowering are overall horse power to comply with air quality standards as well as cleaner running and more fuel efficient pool vehicles. Funds are available in the Public Works Motor Vehicle Service Fund Account #644- 522-223-643. RESOLUTION NO. 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE PURCHASE OF THREE CURRENTLY LEASED 2009 HYBRID TOYOTA PRIUS VEHICLES FROM FRANK TOYOTA OF NATIONAL CITY FOR THE ESTIMATED AMOUNT OF $43,331.97, PLUS TAX AND REGISTRATION FEES ESTIMATED AT $4,500 FOR ALL THREE VEHICLES, FOR A TOTAL AMOUNT OF APPROXIMATELY $47,573.52 WHEREAS, on May 19, 2009, the City Council adopted Resolution No. 2008-99, for the lease of four (4) 2009 hybrid Toyota Prius vehicles for the amount of $52,215.80; and WHEREAS, one of the four Prius vehicles was totaled in an automobile accident and paid out by an insurance claim, leaving three Prius vehicles; and WHEREAS, the City desires to purchase the three remaining 2009 hybrid Toyota Prius vehicles that had a payoff value as of June 15, 2012, of $43,33.97, not including sales tax and registration fees, which are estimated to be approximately $4,500 for all three vehicles, bringing the total cost to approximately $47,573.52. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the purchase of the three currently leased 2009 hybrid Toyota Prius vehicles from Frank Toyota of National City for the estimated amount of $43,331.97, plus tax and registration fees estimated at $4,500 for all three vehicles, for a total amount of approximately $47,573.52. PASSED and ADOPTED this 19th day of June, 2012. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney Ron Morrison, Mayor jTOYOTA ACCOUMF NUMBER: 01-0712-98860 HNANCd+LSERVIC6. P.O_ SOX 9490 CEDAR RAPIDS, IA 52409 94'AT 06/05/12 CITY OF NATIONAL CITY 1243 tNATIONALCiW&VD NATIONAL CITY CA 91950-4301 DESCRIPTION of VEHICLE: 2009 TOYOTA PRIUS VEH1CLE IDEMrrCAT ON NUMBER: JTDK620U99350&450 Pr9OV3be axe this oodres appears in the reMnenveiape: TOYOTA 'FINANCIAL SEEviC6 PD. 80X 949D CEDAR RANDS, IA 2409-9490 Door CITY Or NATIONAL CITY: Enclosed are the documents you must complete plvte so that we can process the purchase of your teased vehicle. Please review: and complete these documents carefully. Sign and dateai forrru where required. We must -receive the enclosed documents fully cornpetet and sigrrdd: otirery e, there may be -a delay in you receiving your Title. Once you have completed and signed the enclosed documents, please return them to us in the enclosed return envelope. Be sure to include the cashieYs check payable to TQl EXCHANGE, LLC` in the amount of $14,443.99. Your check must be received by 6/15/1 Z 11 not, the payoff amount wlltchange and additionat funds may be requred. If you hove any questions, please contact us at f8001 874-8822. Sincerely. Toyota Einanciai Services IMPORTANT NOTICE: Your safety andsoti acifen cre important to us. We want you to continue to enjoy your vehicle with the lw.e of mind that you've come to export from Toyota. 5o. before you pacttase your leased vehicle from Toyota Rnancid Serviard. we encourage you to ensure that any appfiooue safety retails have been completed. You can easily findout if a recall apples to your relielebyvisiting wwn.toyotaowrtersonlinecom/sscirta making an appantirent with a Toyota defier for inspection. a coiling the Toyota Customer Ecp erience Center at (WO) 33t-4331. monk you for ctexning to remain o pal of the Toyota foinIy. • As pat of a Brie -Fund exchange pro-arn. Toyota MotorCredttC,orpaatioo iTM3C ttaengaged TQi Exctsange. ttC ('T f asa Cpatified inte-medary. You ore hereby notified Mot 'MCC hcsassigned to TQt Rs rights abut not its obligation{{ in theog-eement fa the sale toyou of your leased vehicle. Toyota fhiancbtServtcestso scwice rnattar Toyota MohxGetl7rCarporafton. Page 1 of 0WS S6fCA(03(Itll WHAT YOU MUST DO TO PURCHASE TOUR VEHICLE To complete the purchase of your vehicle, you wilt need to completed of the steps listed below. Please be sure to compete each and every requeemenf and sign and date the documents where cicated as we wilt be unable to forward you the title and related sate documents unless you complete all steps as fisted betow. Read, sign and date the tess�efPurchaser Acknowledgement and the D'rsdairner of Warranties -section on page 3. Ths setion does not terminate any smarronties provided by The morxffa: tuner or optional -see a ernents that may still be applicable, Obtain a cashier's check orother certified tomb in the amount of j14.443.99 payable to T tEXCHAMGE,UC. It we do not receive the Jul amount required to pay off your acc^count by 6f15112, addiioirit funds may be requked and the processing of your vehicle purchase may be delayed. The payoff amount not include sates lax. You are responsible for paling all taxes and fees. Make the ct shier'scheck payable to IQ! -EXCHANGE. LLC..Mait t 0 check and all, necessow documents to the address indicate on the int page of this letter. It the payoff wilt be -coming tom a U'*d paty. -s cti as abank or ctedit anion, orthe Cer'uiicate of lift to be malted to someone otter than you, cornptete; sign and dae the Aufhotrza.tionforPoyoff e ri titre rroccs g section on page 3. Your name wit be -FEas 'Buyer or `Purchaser on all sate documents including the Certificate of Elf e. Toyota Motor Oedit Corporation. anal legally sr.lt the vehcie diredlyto any individual who is nol a.party to the original lease agreement. Record the mileage indicated on the vehicle's odometer on the appropriate space on the attached Lessees OdorneferDisclosure Statement. Complete alt necessary fields on lhe form and sign and date the statement. Once you have reviewed, completed and signed every item listed above, as requied, return alt pages with the cash'm's check, if applicable, to us in the enclosed envelope. 1n:.ktde the cover letter so that our retum address appears in the window of the envelope. Make a copy of the documents if you would fake a copy for your records. After receipt of the above items and processing, we will forward you all information necessary tole -title the vrehk le in your name. You will be responsible for any charges associated with re -tilling or related tees. If you have any questions, please calf us of the telephone number shown on Page 1. Thank you. Poae. 20t4 PAYOFF AMOUNT $ 14,443.99 GOW IHRCUO-I DATE fir15t12 ACCOUNT NUMBER e1-D712-9935D READ THIS SECTION AND SIGN AND DATE WHERE INDICATED: LESSEE/PURCHASER ACKNOWLEDGEMENT The lessee/purchaser acknowledges that a} the vehicle has been maintained in proper condtion under the terms of the lease; b) the vehicle must be re -registered with the California Department of Motor Vehicles; c) an application for anew Certificate of Title rust be made; and d} al sales taxes on this sate, and al charges related to the application for Certificate of TIUe, registration, unpaid parking tfdrets, emissions inspections and tow, repair or storage bats are the responsitgity of ttee fesseer'pr. rthaser. DISCLAIMER OF WARRANTIES PURCHASER ACKNOWIEDGES THAT THIS VEHICLE IS SOLD AS IS, WHERE 43 AND WITH AL LFAULTS. TOYOTA MOTOR CREDIT CORPORATION (-MCC") MAKES NO WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, WHETHER OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. TM= AND TOI EXCHANGE, LtC SHALL NOT UNDER ANYCIRCUMSTANCESBE UAR11 FOR SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES OF ANY KIND WHETHER CAUSED BY BREACH OF SALES CONTRACT, NEGLIGENCE, OR OTHERWISE PURCHASER ASSUMES ALL RISKS AND LIABILITY WH1 H MAYRESULTEROM THE USE OF THE VEHICLE. _ - PURCHASER'S SIGNATURE DATE This does not terminate any warranties provided by the manufactrer or optional service aegeemenls tlzt may still be applicable. IF YOU WANT YOUR TITLE MAILED TO AN ADDRESS OTHER THAN YOUR OWN, COMPLETE THISSEECTION AND -SIGN AND DATE WHERE INDICATED: • AUTHOrRZATION FOR PAYOFF AND TITLE PROCESSING fl i authorize TOt Exchange, IIC to accept the rota outstanding balance due an this aunt (the "Payoff Amours:') from: 1 1 Upon receipt of the total outstanding Nance in good funds, and otherwise %I ed to the terns and conditions of the lease agreement, 1 authorize Toyota Motor CredtCaporation to send the Certificate at Tao for the vehicle to: NAME. ANDADDREE6 PunQ IASER'SSIGNARmE DATE I understand that any facsimile trdnsnussion of this document stored by TMMCC in electronic or paper form stoat constitute an original for at purposes of this document, statement or notice- f acknowtodgo that each copy of this document wet be valid and enforceable against the signer(s) and al of the copies, together, will constitute one and the same Agreemerit. Page 3or4 DIAS2OSI11A(a3/IO) LESSEES ODOMETER DISCLOSURE STATEMENT (t TOYOTA f aiaartSERYiMZ' w Federal law (and State law, if applicable) requires that the Lessee disclose the mileage to the lcacor in connection with the transfer of ownership. Failure to complete or making a false statement may result in fines andlor imprisonment. Complete disclosure form below and return to the lessor. I, CITY OF NATIONAL CITY (Print name of person making the disclosure) state that the lralsierces Name odometer now reads {no tenths) mites arid: Piease check one box and sign below: to Me best of my knowledge the odometer reading reflects the actual mileage of the vehicle desoribed below; or I hereby certify that to the best of my knowledge the cdometel-readng reflects the amount of mileage in excess of its mechanical limits; or I hereby certify that the odes n ter. reading is NOT the actual mieage and should not be retied upon. MANE 1 MOOS I ACCOUNT NUMBER TOYOTA PRHJS 91-D742-98850 BODY T 1'` VEDECLEI ]ENTWIDA7ION NUMB37. 1 YE/42 J113148201M7869397 2009 The parties agree that any facsimile transmission of his document stored by Toyota WotoCreart iorporatkin { TMGG ) in electronic or paper form shall constitute an original for the purposes of this state=nent. Lessee's Name CITY OF NATfONALCITY Lessees Address 1243 NATIONAL CITY BLVD rsteeq raw NATIONAL CITY CA 91950 4301 Isar) (Zpcoae) Please Sign Here 0,sa :ftSig,aure) Date of Statement Lessor's Name Lessor's Address P.O. BOX 9490 Signed by Lessor: Toyota MotorCredit Corporation Toyota Motor CreditCorporation CEDAR RAPIDS, IAS2409-9490 Date Disclosure Form' Sent to Lessee 0605/12 Date Completed Discosurre Form #rived fromLessee Pam 4 of 4 DMs o'051e.daOM) eiTOYOTA FrNtsfiCIALSE$irrCES' P.O. BOX 9490 CIDAR RAPIDS, iA 52409--9490 06/05/12 CITY OF tNATIONAL CITY 1243 NATIO NAL-C(1 Y BLVD NATIONAL CITY CA 91950-4301 ACCOUNT N M6EE: 0T-0712-98850 OESCk1PliON OF VEHICLE: 2009 TOYOTA PRIUS VEFI4CLE1DENRACATON NUM6ER: JTDK11200297869397 be sure r.:saddresvp, zsi In the return ends: TOYOTA FINANCIAL S€RVCC 1'.O. BOX 9490 BAR RAMPS, IA 52409-9490 Dear CITY OF NATIONAL CITY: Erred are the documents you must complete so that we can proc ess the -purchase of your leased vet*be. Please review and these documents corefulty. Sign and dote all forms where required. We must receive the enclosed documents fully completed and siidrted;otherwisee, there rnay be a delay in you receiving your title. Once you hove cornpfeted and signed the enclosed docunlearts. {Tease return them to us in the enclosed return envelope. Be sure to include the cashiers check payable to TQi t:XCHANC , !LC* in the amount of $14,443.99. Your check must be, re ived by6/15/1Zif not, the payoff ornountwit c-tx eandaddrionaikindsmayberequired. If you have any questions. please contact us at {800) 874-8822. Sincerely, Toyota Financial Services IMPORTANT NOTICE: Yar sofet). and satisfaction ore important to us. We xroet you to continue toenjoy your vehicle with the peace of rind that you've come to expect from Toyota So. before you purchase your leased vericte from Toyota Snanciat Services. we encourage you to ensure that any applicable safety recdK have been campletea. You Can eas1Yi ndaut if a recall applies to your vehicle by vislirg www.toyodaownswnline_comfssanfo, making an appointment wirti a Toyota dealer for inspection. a calling the Toyota Customer Experience Center at f800; 33 i-4331 _ Thank you far choosing to remain a part of the Toyota famAy_ • As pat of a Eke -kind exchange program. Toyota MatarCreait Cotpooxation tTmccl rid; engaged Tat Exchange. t.PC f T011 as a <waffled intemredory. You are hereby notified that Trv1CC has awned to TQl its dgh1 (but not itscbligatianst in the agreement fcc the role to you of your teased vehicle. Toyota rnancier sefv°sBo service moo<of Toyota motorC.3eur Corpora6m. Pogs 4 of 4 Ou is f1Q51CAt03(I ) WHAT YOU MUST DO TO PURCHASE YOUR VEEitc E To complete the purchase of your vehicle, you will need to complete all of the steps listed below. Pease be sure to complete each and every requitement and sign and date the documents where indicated as we will be unable to forward you the Title and related sale documents unless you complete all steps as fisted mow. LJ Read, sign and -date the lessee/Purchaser f cknow'edgease l •.cn-d the Disciaine, of Warranties section on page a This section does not terminate any warran>tties provided by the manufacturer or optional srAvice agreements that may slit be apple -able. El Obtain a cashier's check or otter certified funds in the amount of $i 4.4:3.99 payable to IQ EXCHANGE, UC. If we do not receive the full amount required to pay off your account by 6/I5(12, adctifionaf funds may be requ'red and the processing of your vehicle purchase may be delayed. The payoff amovntdoe not include sates tax. You are responsible for paying all taxes and fees. Make the cc biers check payable to T4I EXCHANGE, UC. Mai the check and aB rtr essary drruments to the address indicated on the first page of t" s fetter. 0 it the payoff will be corning from a third party. such as a tank- edit union,.orthe Gerttt ie of Weis to be mailed to sr, Bore other than you, complete, seen arnd the Aorta =action icy Payoff arW stile Proce sing .section on pa' ce 3. Your name wiB be feted as 'Buyer or Purchaser on aB said <JOGAI meeMs. including the Certif=de of Title. Toyota Motor C, edit Corporation cannot legally sell the vehicle directly to any individual who is .not a party to the original base agreement. 171 Record the mileage indicated on the vehicle's odometer on the app opriate space on the attached linsees Odorneta Disclosure e Statement. Complete an necessary fields on the form and sign and date the statement. Once you have reviewed, completed and signed every item listed above, as requ'sed, return all pages with the cashier's check, if applicable, to us in the enclosed envelope. Include the cover fetter so that our return address appears in the window of the envelope. Make a copy of the documents if you would Pike a copy for your records. After receipt of the above items and processing, we will forward you all information necessary to re -title the vehicle in your name. You will be responsible for any charges associated with relifling or related fees. if you have any questions, please call us at the telephone number shown on Page 1. Thar* you. rugs 2 or 4 OM5 8451CAf03(r0) PAYOFF AMOUNT $ 14,443.99 READ THIS SECTION AND MN AND DATE WHERE INDICATED: GOOD T11RUJe34 DATE ACCOUNT NUMEER &YS12 Ot-0712--98e66 LESSEEtPtlRCHASER ACKNOWLEDGEMENT The te;seelplxdlaser admowtedge, that: a) the vehicle hasbeen Maintained in proper con3tian under the terms of the lease; b) the vehicle must be re -registered with the California Department of Motor Vehicles;c) an application for a new Certificate of Title oust be made; arid d) all sales taxes on this sale, and all charges related to the a ticat on for CertTcate of Title, registtakon, unpaid parking tickets, ertv^aot inspections and tow, repair or storage bills are the responsitX3ty of the lessee/purchaser. DISCLAIMER OF WARRANTIM PURCHASER ACKNOWLEDGES THAT THIS VEHIC_EJS SOLD AS IS, WHERE 1S AND WITH ALL FAULTS. TOYOTA MOTOR EDIT CORPORATION rTMC C) MAKES NO WARRANTY OF ANY KIND, EXPRESSED OR IMPLIED, WHETHER OF WitCHANTABILITY OR FITNESS FOR A PARTICULAR PURPO:� "MCC AND TOI EXCHANGE, LLC SHALL NOT UNDER ANY CIRCUMSTANCES BE UArd F FOR SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES OF ANY KIND WHETHER CAUSED BY BREACH OF SALES CONTRACT, NEGUGENCE, OR OTh ERWISE PURCHASER ASSUMES ALL RISKS AND -LIABILITY WHICH MAY F:ESIfLT FROM THE USE OF THE VEHICLE. PURCHASER'S SIGNATURE DATE This does not terminate any warranties provided by the manufacturer or qpSond service agreements that may still be app idle. IF YOU WANT YOUR TITLE MAILED TO AN ADDRESS OTHERTHAN YOUR OWN, COMPLETE THIS ECtON AND SIGN AND DATE WHERE INDICATED: AUTHORIZATION FOR PAYOFF AND TITLE PROCESSING t authorize TQI Exchange, LLC to accept the total outstanding balance due on this account (the 'Paya'f Amount") from: Upon receipt of the total errtstanhfsnXg Warm in good funds, and otherwise subject to the terms and conditions of the tease agreement 1 authorize Toyota Motor Credit Corporagon to send the Certificate el Title for the vehicle to: NAMEAND ADDRESS PtMct- AS RS SIGNATURE DATE t understand that any facsimile translrxssioe of ttrs dourment stored by TMCC in dececn c orpacer farm shalt constitute an aiginn for at po poses of this document statement or notioo.1 adcrowledge that each copy of this document ell be valid and enforceable against the sigtn:.(s) and al of the copies, together, writ constitute one and the salve Agreement Pape 3of4 DMASUD31CA(a3110) 1i LESSEE'S ODOAKTER DISCLOSURE STATEMENT ii TOYOTA Federal law (and State law, if applicable) requires that the lessee disclose the mileage to the lessor in connection with the transfer of ownership. Failure to complete or making a false statement may result in fines ardor imprisonment. Complete disclosure form below and return to the lessor. I, CITY OF NATIONAL CITY (Print name of person making the drsclosure) state that the Transferors s Name odometer now reads (no tenths) n Iles and: Please check one box and sign below: to the best of my knowledge the odometer reading -reflect the actual mileage of tee vehiclesd below; or I hereby certify that to the best of my knowledge the odometer may reflects the arm -Jun t of mileage in excess of its mechanical limits; or I hereby certify that the odometer reading is NOT the atuaa mileage and should not be relied upon. mitm jIE TOYOTA i BODY TYPE r PRIUS V *I E iterTIFICATION NUMMI .I i K620U993505450 1 ACCOUNT NUS 04-0712 98860 j YEAR 2009 i The parties agree that any faesimUe transmission of this document stored by Toyota M to Credit Corpoafion ("TMGC ) in el runic or paper form shalfcunsttitule -an algiral for the purposes of This statement. Lessee's Name Lessee's Address 1243 NATIONAL CITY BLVD ran CITY OF NATIONAL IONAL CITY NATIONAL CITY CA 91950-4301 raw.) (cc Cade Please Sign ffere > > wesaeet Signature) Date of Statement Lessor's Name Lessor's Address P.O. BOX 9490 Signed by Lessor: Toyota Motor Credit Corporation Toyota MAritorCreditl Cotporation CEDAR RAPIDS, IA 52409-9490 Date Disclosure Earn: Sentto I.es~see 06/05/12 Date Complete Dsdosure norm Received from.r pcsc aye 4of4 B:4'S aCsie.ke 3i1o) e)TOYOTA F111ANCIALSERtn:ES P.O. BOX 9490 CEDAR RAPIDS, IA 52409 9490 06/ 05/ 12 CITY Or NATIONAL CITY 1243 NATIONAL CITY BL VD NATIONAL CITY CA 91950-4301 ACCOU14;Nilmrbin 0i-0712-98849 DESCRIPTION or VEHICLE: 2009 TOYOTA PRIM VEHICLE IDENI1OCAT1ON NUM&ER: JTD ZB200797870575 Please be sure Mb csktess oboe= In the return e.velcce: TOYOTA FINANCIAL SERVICES P.O.80X 9490 CEDAR RAPIDS, IA 52409-9490 Dear CITY OF NATIONAL CITY: Enclosed are :the documents you must complete so that we Can p; cess tf3e pwc lase of your Leaci vehicle. Please review and complete these documents carefully. Sign and dated' forms where taw -red. We must receive the enclosed documents fully completed and signed: otherwise. ti-re may be a delay in you receiving your title. Once you have completed and signed the enclosed documents, please return them to us in the enclosed return envelope. Be sure tq include the cashiers check payable to TQI EXCHANGE, -MC" in the amount of $14,443.99. Your Click must be received by 6/15/1Z it not, the payoff amount will change and additional funds mayleregttred. If you have any questions, please contact us at {800) 874-8822. Sincerely, Toyota Financial Services IMPORTANT NOTICE: Your safety and satisfaction ae important to us. We wont you to continue to enjoy your vehicle with the peace of mind mat you're come to expect from Toyota. So. before you -purchase yor teased vehicle from Toyota Financial Services. we eroxnnge- you to ensure that any applicable safety recalls hove been completed. You can nosily find out if a recall applies to ycurvehicle by visiting www.toyoaownersvnfine.com/ssdrto, mating an appointment with or Toyota dealer for inspection, a calling the Toyota Customer Experience Center of (800) S31-4331. Thant you for choosing to remain a pert of the Toyota fanvly_ AS pat of a Ike -kind exchange program. Toyota MotaQedtCapxafion {TtiCC1 hasengaped TQi Exchange. LLC ('TQPI as s gexRTsed ntermecfary. You ale hereby notified that TMCC has assigned to TQt its tights flout not its obligations) in the agreement fa the sate to you of yourleosed reticle. Toyota Ffr a- cbt Servkaes is a service rnae atToyota Motor CrdfiCorparaton. Page 1 of 4 bras 8151 CA fM,8171. LESSEE'S ODOMETER DISCLOSURE STATEMENT (OTOYOTA flNrt�iOTAi-DCMVI - Federal law (and State law, if applicable) requires that the lessee disclose the mileage to the lessor in c onneetion with the transfer of ownership. Failure to complete or making a false statement may result in tines and/or imprisonment. Complete disclosure form below and return to The lessor. 1, CITY OF NATIONAL CITY iransteras name ;Print name of person making the disclosure) state that the odometer now reads ix tenths) miles and: Please-ch one box and sign below: CI I to the -best of my knowledge the o - - netcr leading re/rvls he actual rni ge of the;Vide -desc ibed below; or I hereby certify that to the best of my knowledge the odooeter-reading reoects the amount of mileage in excess of its -mechanical limits; or I hereby certify that the odometer reading is NOT ire actual mniage and should not be re+ied upon. MAID TOYOTA 1 MODEL PRIUS ACCOUNT NUMBER 01-07i2-96 49 - Bcov TVPc v c E IDEN71FICA1RON N'.'••.,BF YEAR 1-I JTDI-020U797870575 2009 The parties agree that any facsimile{ransmission of this -document stored by Toyota Motor Credit -Corporation f MC ;') in -el onic or paper form shad constitute an original for the purposes of this statement. Lessee's Narne CITY OF NATIONAL CITY Lessee's Ad&ess 1243 NATIONAL CITY BLVD (street) vemo NATIONAL CITY CA 91950-4301 cswer Kip COd ) Please Sign ffere >> > (Lessee's Ssnat rer Date of Statement Lessors Name Lessor's Address P.O. BOX 9490 Toyota. Motor Craft Corporation CEDAR RAPIDS, IA 52409-9490 Signed by Lessor: Toyota Motor Credit Corporation Date Disclosure Form -Sent to Lessee 06/05/12 Date Completed Disclosure Form Revered from Lessee Page 4 et DM3805(CA (03110) PAYOFEAMOUNT I r-(YUTRROUQT DATE S 14,443.99 61512 ACCOUNT NUMBER 01-071298049 READ THIS SECTION AND SIGN AND DATE WHERE INDICATED: t LESSEEIPURCHASER ACKNOWLEDGEMENT The Iessee/purdeser acknowledges that: a) the vehicle has been maintained in proper condition unmet the terms of the lease; b) the vehicle must be re -registered with the California Department of Motor Vehicles; c) an application fa a new Certificate of Titter must be made: and d} all sales taxes on this sale, and all charges related to the application for Certiicate of Tile, registration, unpaid parking tickets, emissions inspections and tow, repair or storage bills are the respoostr6ty of the tesseefpurchaser. DISCLAIMER OF WARRANTIES PURO 4ASER ACKNOWLEDGES THAT THIS VEHICLE IS SOLD AS 4S, WHERE IS AND WITH ALL FAULTS. TOYOTA MOTOR CREDIT CORPORATION (TACO") MA. S NO WARRANTY OF ANY KIND, EXPRE3&D OR IMPLIED, WHETHER OF I RCH NTAS11JTY OR FITNESS FOR A PARTICULAR PURPOSE. mtco AND TQI-EXCHANi E. tit. SHAIL NOT UNDER ANY CIRCUMSTANCES BE LIABLE FOR SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES OF ANY KIND WHETHER CAUSED BY BEACH OF SALES CONTRACT, NEGMUICE, OR Ol1IERWISE PUR HASER ASSUMES ALL RISKS AND LIABILITY 1/1n4k 1 MAY RESULT FROM THE USA OF THE VEHICLE. PURCHASE SSIGNATUrE DATE This does not lerminato any warranties provided by the manuf er or ophonal service ageemerds that may shli be app:rable. IF YOU WANT YOUR TITLE MAILED TO AN ADDRESS OTHER THAN YOUR OWN, COMPLETE THIS SECTION AND SIGN AND DATE WHERE INDICATED: AUTHORIZATION FOR PAYOFF AND TITLE PROCESSING 1 authorize TQI Exchange, LLC to accept the total outstanding balance due on this acosurrt (the -Payoff Amount') from: QUpon receipt of the total outstanding balance in good furls, and otherwise subject to the terms and. corMitions of the tease agreement, I authorize Toyota Motor CreditCor:oraion to send theCertilhcate of lige for the Wide to: NAMEAND ADORERS Pt cHASERRSIGNATURE DATE 1 understand that any tacsimte transmission at ttis document stored by TMCC is eleclronic or paper foam shall constitute an original for aht purposes of this document, statement or notice. I acknowledge that each copy of tfis document wig be valid and enforceable against the signer(S) and aft of the Copies, together, will constitute one and the same Agreement. Pape 3 of 4 DMSaastcA{0W10) WHAT YOU MUST DO TO PURCHASE YOUR VEHICLE To complete the purchase of your vehicle, you will need to complete all of the steps listed below. Please be sure to complete each and every requiement and sign and date the documents where indicated as we wit be unable to forward you the title and related sale documents unless you complete all steps as feted betow. Read, sign and date the'Lessee/Purchaser Acknowledgement and the Disclaimer of Warranties section on page 3. This section does not terminate any warranties provided by the manufacturer or optiorsvl service agre .meents It -rat may still be app is ble. U Obtain a cashier's cl rr: k or other certified funds in the amount of $14.443.99 payable to TQI EXCFtANG , flC. If we do not receive the full amount requred to pay off your account by 6/I5/12. additional funds may be required and the processing of your vehbte purchase may be delayed. The payoff amount does not irctude sales tax. You are responsbe for paying alt taxes and lees. Make the. cashiers check payatile to TQl EXCHANGE, LC. Mail the check and all p essary docunv..nts to the address irded on the first page of this fetter. II the payoff will be coming from a third party, such as a bank or credit union. er the Certificate of reels to be moiled to sormom otter than you, complete, sign and -date the Authorization for Payoff end TEfte:Pmt sang section on page 3. Your name be listed as "Buyer" or -Purchaser on all sate documents, including the Certi%ate of Title. Toyota Motor Credit Corporation cannot legally sell the vehicle directly to any individual who is not a patty to the original lease agreement. Record the mileage indicated on the vehicle's odometer on the appropriate space on the attached -Lessee's Odometer Disclosure Statement. Complete all necessaryiields on the form and sign and date the statement. Once you have reviewed, completed and signed every item listed above, as required, return air pages with the cashier's check. if applicable. to us in the enclosed envelope. Irekrde the cover letter so that our return address appears in the window of the envelope_ Make a copy of the documents if you would like a copy for you records. After receipt of the above items and processing. we will forward you alt information necessary to re -title the vet k.Te in your name. You will be responsible tor any charges associated with re tiling or related fees. If you have any questions, please cal us at the telephone number shown on Page 1. Thank you. Page 2 or 4 ons sristcrMGsn CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: June 19, 2012 AGENDA ITEM NO. 7 EM TITLE: Resolution of the City Council of National City approving a Joint Trench Offer Agreement with SDG&E wherein SDG&E shall reimburse the City up to the not -to -exceed amount of $1,670,915 for actual costs incurred by the City and authorizing the mayor to execute agreement in conjunction with District 24 (8th Street) aerial to underground conversion of utilities PREPARED BY: Barby Tipton PHONE: 336-4583 EXPLANATION: See attached DEPARTMENT: Development Services -Engineering Division APPROVED BY: FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: Funds to be deposited into account 001-409-500-598-3918 ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Adopt the Resolution. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: 1. Explanation 2. Joint Trench Offer Agreement 3. Resolution On December 20, 2005, City Council adopted Resolution No. 2005-256 to establish Underground Utility District No. 24 on 8th Street from National City Boulevard to Highland Avenue for the purposes of replacing overhead wires, structures and poles with an underground system for electric and communications services to benefit public safety, health and welfare. California Public Utility Commission (CPUC) Rule 20A allows for an allocation of utility funds to municipalities for the purpose of undergrounding conversions. In 2011 the City's allocation was $517,959. The City's allocation balance as of May 2012 was $3,019,844. SDG&E is authorized by the CPUC to convert overhead facilities to underground in accordance with Rule 20A. However, Rule 20A also allows municipalities to bid portions of the work, such as trenching, conduit, backfill, substructures, pavement repair, etc. in an effort to better control costs and schedule. Council supported staff's recommendation to bid the project, which included revising SDG&E's schematic design to provide detailed engineering plans and construction documents, in an effort to generate more competitive bidding and reduce the amount of change orders during construction. The 20A conversion of 8th Street between National City Boulevard and Highland Avenue was also combined with the sewer replacement along 8th Street in an effort to solicit more competitive bids. On March 20, 2012 Council awarded the contract to Basile Construction Inc. in the not to exceed amount of $2,386,365.49 and authorize a 25% contingency. The cost of the dry utility work is $1,058,640.52 and the cost of the sewer work is $1,327,724.97. The dry utility costs for the SDG&E portion of the work will be reimbursed with the 20A conversion funds. AT&T, Cox Cable and Access Cable Corporation shall pay their cost to the City per conditions of the Joint Trench Agreements. SDG&E submitted the Joint Trench Offer (JTO) with the not to exceed amount of $1,670,915. The City shall collect reimbursement from SDG&E on a monthly basis as progress payments are made to the City's contractor for SDG&E work including any approved changes or any mutually agreed upon reimbursement payment schedule. Any changes to this limit shall be pre -approved by SDG&E and SDG&E shall then pay for actual services rendered should the amount exceed the offer. Such payments to be not less than quarterly nor more frequent than monthly. Staff recommends that Council approve the JTO agreement. RESOLUTION NO. 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE A JOINT TRENCH OFFER AGREEMENT WITH SAN DIEGO GAS AND ELECTRIC COMPANY ("SDG&E") WHEREIN SDG&E PAYS THE CITY UP TO THE NOT TO EXCEED AMOUNT OF $1,670,915 FOR ACTUAL COSTS INCURRED BY THE CITY FOR THE UNDERGROUND CONVERSION OF UTILITIES IN CONJUNCTION WITH UNDERGROUND DISTRICT NO. 24 WHEREAS, on December 20, 2005, City Council adopted Resolution No. 2005- 256 to establish Underground Utility District No. 24 on 8th Street from National City Boulevard to Highland Avenue for the purposes of replacing overhead wires, structures, and poles with an underground system for electric and communications services to benefit public safety, health, and welfare; and WHEREAS California Public Utility Commission (CPUC) Rule 20A allows for an allocation of utility funds to municipalities for the purpose of undergrounding conversions; and WHEREAS, SDG&E is authorized by the CPUC to convert overhead facilities to underground in accordance with Rule 20A. Rule 20A also allows municipalities to bid portions of the work, such as trenching, conduit, backfill, substructures, and pavement repair in an effort to better control costs and schedule; and WHEREAS, the City Council approved staffs recommendation to bid the project, which included revising SDG&E's schematic design to provide detailed engineering plans and construction documents, in an effort to generate more competitive bidding and reduce the amount of change orders during construction; and WHEREAS, on March 20, 2012 Council awarded the contract to Basile Construction Inc., in the not to exceed amount of $2,386,365.49, and authorized a 25% contingency; and WHEREAS, the cost of the dry utility work is $1,058,640.52, and the cost of the sewer work is $1,327,724.97. The dry utility costs for the SDG&E portion of the work will be reimbursed with the 20A conversion funds; and WHEREAS, SDG&E submitted a Joint Trench Offer (JTO) with the not to exceed amount of $1,670,915 wherein SDG&E will reimburse the City on a monthly basis as progress payments are made to the City's contractor for SDG&E work, including any approved changes. Such payments to be no less than quarterly, nor more frequent than monthly. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City hereby authorizes the Mayor to execute a Joint Trench Offer Agreement with SDG&E for the underground conversion of utilities in conjunction with Underground District No. 24, wherein SDG&E will reimburse the City on a monthly basis as progress payments are made to the City's contractor for SDG&E work, including any approved changes or any mutually agreed upon reimbursement payment schedule. Said Joint Offer Agreement is on file in the Office of the City Clerk. --- Signature Page to Follow --- Resolution No. 2012 — Page "Iwo PASSED and ADOPTED this 19th day of June, 2012. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND SAN DIEGO GAS &ELECTRIC COMPANY (SDG&E) THIS AGREEMENT is entered into this 19th day of June, 2012, by and between the CITY OF NATIONAL CITY, a municipal corporation (the "CITY"), and San Diego Gas & Electric Comany (SDG&E). RECITALS WHEREAS, SDG&E desires to enter into a Joint Trench Agreement for installation of electric distribution and service facilities in the trenches of Underground District No. 24 (20A Conversion 8th Street) SDG&E project No. 532152-070, and WHEREAS, SDG&E has submitted a Joint Trench Letter in the not -to -exceed amount of $1,670,915 (attached Exhibit A), FOLLOWS: NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS 1.. The CITY to provide trenching, backlit!, substructures (concrete products, conduit, retaining walls), pavement repair, any adjustments to final grade, required permits, and environmental release. 2. Trench, backfill, installation of conduit system with pull string shall be accomplished to SDG&E General Conditions and governing agency specifications. 3. SDG&E shall reimburse the City in an amount up to $1,670,915 for the joint trench costs including SDG&E's share of cost for (1) construction, (2) general work for dry utilities, and (3) inspections and project management. Exhibit B describes the work that is included in shared costs. SDG&E's share of costs shall be determined by the total costs attributable to the dry utilities divided among participating dry utilities as shown in Exhibit R 4. All increases to costs must be agreed upon by both parties, in writing, prior to the City approving any change orders. Such approval shall not be unreasonably withheld. 5. San Diego Gas & Electric will provide and install all SDG&E materials for cabling of said project. Delivery of SDG&E materials shall riot be unreasonably delayed. 6. SDG&E will provide on -site inspection for SDG&E conduit system and substructures. 7. The CITY shall provide the as -built drawings to SDG&E. 8. The City shall provide proper documentation to SDG&E in order to collect reimbursement from SDG&E on a regular basis as progress payments are made to the City's contractor for SDG&E work including any approved changes. Such payments to be no less than quarterly, nor more frequent than monthly. i 9. SDG&E agrees to indemnify, defend, and hold harmless, the City of National City and its officers and employees 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, reasonable attorney's fees, and defense costs, of any kind or nature, including worker's compensation claims of or by anyone whomsoever, resulting from or arising out of SDG&E's negligent performance under this agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written. CITY OF NATIONAL CITY By. Ron Morrison, Mayor APPROVED AS TO FORM: Claudia G_ Silva City Attorney San Diego Gas & Electric Company (Corporation - signatures of two corporate officers) (Partnership - one signature) (Sole proprietorship - one signature) (Rick Gardner) (`kat_ C10-c-A►.9 (Print) WoTj-c (Project /� management Mgr) (Print) (tI�,V�(,jl/anage Project Mdnagement) 2 2 City's Standard Agreement — June 2008 revision snc A ck. Sempra Energy utility® February 16, 2012 Steve Manganiello C.E. City Engineer 1243 National City Blvd. National City, Ca. 91950 tiara ring Car !. Epctric 8315 Century Park Court San Diego, CA 92123-1548 FILF NO PIA PROJ# 532152-070 Dear Steve: Subject: 8th Street 20A Conversion — UUD # 24, N.C. BI. To Highland Av. SDG&E has completed the preliminary engineering review required to replace the existing overhead electric facilities with an underground system at the above location. A final design and cost estimate for your conversion has been prepared based on the option that the city will bid for the following work: • Contractor to provide trenching, backfill, substructures (concrete products, conduit, retaining walls), pavement repair, any adjustments to final grade, required permits, and environmental release. SDG&E General Conditions and underground standards are to be incorporated into the bid document. In the event of inconsistencies between the Municipal bid documents (municipal General Conditions) and SDG&E's General Conditions, the most stringent shall prevail and will be subject to mutually agreed upon and negotiated benefits. SDG&E underground standards can be accessed at http://sdge.com/documents/underground-construction-standards • San Diego Gas & Electric to furnish and install cable, pad -mounted equipment, connections and removal of overhead facilities. ?dal to awarding the contract, the city will submit a copy of the first, second and third acceptable bids to SDG&E for review and approval. If approved, SDG&E will reimburse the city for this work (based on the contractor's bid) up to our estimated value of $1,670,915. At the completion of the contractors' portion of their work, SDG&E's overhead costs applicable to this work, including any re -engineering fees, if applicable, will be deducted from the municipality's 20A allocation. In the case that all bids exceed the maximum reimbursable amount, SDG&E reserves the right to reject all municipal bids and may elect to do the electric conversion trench independently- In order to allow the City's bidding contractors to properly separate the cost of installing SDG&E's conduit infrastructure from that of the telecommunications companies, 1 would like to meet with the City and the bidding contractors prior to bid submittal. This will help ensure consistency among the bids for the conversion trench & conduit installation phase of the project. Please note the above costs do not include the installation of any ornamental street lights or street light services that might be required by the City of National City. Street lighting is not reimbursable under Rule 20. However, the City can make use of the available conversion trench and conduit for street light conduit installation. 3 2 February 16, 2012 The City of National City will be responsible for acquiring Joint Trench Offers. AT&T, Cox Communications Inc., and Media 3 have planned on participating in the Joint Trench, which minimizes costs to the joint trench utilities, lessens the amount of trench and surface repair, and reduces the overall cost of trenching. The offers received by SDG&E are no longer valid. Once the City acquires the offers, SDG&E can provide a courtesy review for reasonableness, at the City's request. Bids shall include separate line items for installation of SDG&E and the other dry utilities. Bids are to include service conduit, but not service panel conversion work, which will be facilitated by SDG&E. A Pre -Construction Conference shall be held in advance of construction to coordinate with all dry utilities participating in Joint Trench. SDG&E will be represented in the field by a Trench Inspector. Change orders will be reviewed and approved by SDG&E's Project Manager, prior to the work taking place. Invoices shall be submitted to SDG&E's Project Manager. Billing can occur at completion, or on a regular basis, not to exceed once a month, and shall include necessary invoices and support information, satisfactory to SDG&E, to justify reimbursement. Reimbursement will occur accordingly, after review and approval by SDG&E's Trench Inspector. All costs and offers quoted in this letter shall become void at the end of the business day on May 14, 2012. If business negotiations are not completed, or if you request revised costs after that date, a cost update fee may be required. Your costs, as cited herein, are subject to change at any time. All cost calculations are based upon SDG&E's filed tariffs, SDG&E's internal costs, and all applicable governmental or regulatory statutes, regulations, codes and rules. Should any change in, or addition to, those tariffs, costs, statutes, regulations, codes or rules in any way impact these cost calculations, you will be subject to any resulting increase or decrease. 1f 1 may be of further assistance or if you have any questions, please call me at the number listed below. Our hours are 7:00 am —4:00 pm, Monday through Friday. For additional general information, please visit our website at http://sdge.com/index.html_ Sincerely, Governmental Liaison Planner SDG&E Telephone: (858) 654-1136 Attachments: Work Order 4 ISIr 8 1 2 3 4 6(S) 7 8(S) 9 10 I1(S) I2(S) I3(S) 14(S) 15(S) 16(S) 1 7(S) 18 S) 19(S) 20 S) 21(S) 22(S) 23(Sl 24(S) 25(S) 26(S) 27(S) 28(S) Mobilization/Demobilization SWPPP Implementation Remove and Replace Sidewalk Repairs Shoring and Bracing Protection Post Installation per SDARSD Construction Staking Replace Tra place Jtgni ffie Signal Loop tripir 0 nd Pavement Mainline Joint Trench Private Property Service Trench Furnish and Install Electric Conduit, 5" Furnish and Install Electric Conduit, 4" Furnish and Lnstall Electric Conduit, 3" Furnish and Install Electric Conduit, 2" Furnish And Install Elecndc Handhole Furnish And Install Electric Handhole Basile Construction SDG&E . „ �- $ 4,820.35 $ LS 1 ' _-- .3, 1; I /0 $ _ 5 LS 1 SF 1000 EA 50 LS i LF LF LF LF LF LF EA EA 6,250 930 1,280 8,550 5,420 130 6 14,815.00 $353.10 $8,881.00 $251 19,737.00 total . /0 S4.815.00 85% $7.062.00 85% $8,88I.00 85% S 12.572.50 $9.737.00 $95,909.10 85% 85% CTRIOINYI) QCINNlX ( O,G: Y'.fS, Y.y{3M1jT aLa in:hYY..�•t5)� �,�. 4 $79.18 $28.89 $4.92 $4.01 $2.73 $1.82 $251.45 $1,578.25 S494,875.00 $26,867.70 $6,297.60 $34.285.50 S14,796.60 S236.60 $1.508.70 $7,891,25 Furnish And Install Electric Handhole Furnish and Install Electric Transformer Furnish And Install Electric 3316 HE with Furnish and Install Electric Handhole Furnish And Install Electric 3316 HE with Furnish And Install Electric Transformer Adjust Handhole to Finished Grade Concrete Encasement EA EA EA EA EA EA LF 14 6,950 $9,399.95 $2, 819.45 51 1,984.00 $770.40 $12.385.25 $572.45 $9.10 Total $9.399.95 $2,819.45 S35,952.00 $10,785.60 $12,385.25 $10,876.55 $4.815.00 $63.245.00 $747,004.80 85% $ 10,845.79 $ 10,463.50 967,28 $ 2.176 $ 14,242.77 $ 2.858.04 $ 4,092.75 $ 821.28 $ 6,002.70 $ 1.204.54 5 7,548.85 $ 1,514.80 $ 10,686.63 $ $ 8,276.45 5 1.660.80 $ 76,979.78 $ 15,447,22 $ 420,643.75 $ 84,408.90 100% $ 26,867.70 $ 5,391.43 I00% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% $ 6,297.60 $ 1,263.71 $ 34,285.50 $ 14,796,60 $ 236.60 $ 1,508.70 $ 7,891.25 $ 9,399.95 $ 2,819.45 $ 35,952.00 $ 10,785.60 $ 12,385.25 $ 10,876.55 $ 4,815.00 S 63,245.00 S 672,773,55 6.879.93 $ 2.969.17 $ 47.48 $ 302.74 $ 1.583.51 $ 616.23 $ 1.383.82 $ 1,886.25 $ 565.77 $ 7,214.34 $ 2,164.30 $ 2,485.30 $ 2.182.55 $ 966.21 $ 12,691.12 $ 135,002.78 $ 5,787.63 $ $ 13;022,17 12,563.17 17,100.81 4,914.03 7,207.24 9,063.65 12,831.07 9,937,25 $ 92,427.01 505,052.65 $ 32,259.13 $ 7,561,31 $ 41,165.43 $ 17; 65.77 $ 284.08 $ 1,811.44 S 9,474.76 $ 3,687.13 $ 8,279.97 $ 11,286.20 $ 3,385.22 $ 43,166.34 $ 12,949.90 $ 14,870.55 $ 13,059.10 5,781.21 $ 75,936.12 807,776,33 ESTIMATED TOTALS $ 749,753.33 $ 150,450.00 S '900,203.33,i' CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: June 19, 2012 AGENDA ITEM NO. 8 Al TITLE: Resolution of the City Council of National City authorizing the filing of a Proposition 84 Storm Water Grant Program (SWGP) application for the "A" Avenue Green Street and Pedestrian Pathway Project in the amount of $2,500,000 and committing to a local match of $800,000 for a total project cost of $3,300,000 (local match available from various CIP). PREPARED BY: Stephen Manganiello PHONE: 336-4382 EXPLANATION: See attached DEPARTMENT: Development Services -Engineering Division APPROVED BY: FINANCIAL STATEMENT: APPROVED: Finance ACCOUNT NO. APPROVED: MIS No financial impact at this time; upon approval of the grant, staff will return to Council to accept the grant and assign matching funds. ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt the Resolution. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: 1. Explanation 2. Resolution Explanation Staff is requesting authorization to file a Proposition 84 Storm Water Grant Program (SWGP) application for the A Avenue Green Street and Pedestrian Pathway Project. The grant request is for $2,500,000 with a local match of $800,000 resulting in a total project cost of $3,300,000. The local match will be funded through -the City's Capital Improvement Program (CIP). Specifically, funding for 8th Street Corridor Revitalization Project and Kimball Park Improvements Project will be leveraged for the grant match. Staff project management/administration will be funded in -kind. The primary objectives of the project are as follows: 1) Create a "Green Street" that implements Low -Impact Development (LID) infiltration measures to improve water quality of urban runoff entering the storm drain system which discharges downstream into Paradise Creek at Kimball Park. 2) Create a safe, environmentally friendly walking path along "A" Avenue to connect Historic Brick Row, Morgan Square and the 8th Street Revitalization District to City Hall, National City Public Library and Kimball Park. 3) Provide educational opportunities through implementation of interpretative signage and creek-themed art. The project supports the following General Plan goals and policies: 1) Goal C-8: "A universally accessible, safe, and convenient pedestrian system that encourages walking". 2) Policy C-8.3: "Identify and implement necessary pedestrian improvements with special emphasis on providing safe access to schools, parks, community and recreation centers..." 3) Policy C-8.8: "Provide a continuous pedestrian network within and between neighborhoods to facilitate pedestrian travel free from major impediments and obstacles". Council Resolution supporting the project, authorizing filing of the grant application, and committing associated matching funds is required upon submittal of the grant application. If grant funding is awarded, staff will return to Council to accept the grant and assign matching funds. RESOLUTION NO. 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE FILING OF A PROPOSITION 84 STORM WATER GRANT PROGRAM APPLICATION FOR THE A AVENUE GREEN STREET AND PEDESTRIAN PATHWAY PROJECT IN THE AMOUNT OF $2,500,000, AND COMMITTING TO A LOCAL MATCH OF $800,000 FOR A TOTAL PROJECT COST OF $3,300,000 WHEREAS, the A Avenue Green Street and Pedestrian Pathway Project (the "Project") includes a low impact development retrofit of A Avenue using bioretention and infiltration measures to create a "green" street that addresses the water quality and volume of runoff from within the project area, and run-on from the tributary drainage area; and WHEREAS, the Project would create a "Green Street" that implements Low - Impact Development ("LID") infiltration measures to improve water quality of urban runoff entering the storm drain system that discharges downstream into Paradise Creek at Kimball Park; and WHEREAS, the Project would create a safe, environmentally friendly walking path along "A" Avenue to connect Historic Brick Row, Morgan Square, and the 8th Street Revitalization District to City Hall; and WHEREAS, the Project will provide educational opportunities through implementation of interpretative signage and creek-themed art; and WHEREAS, to fund the Project, staff desires to apply for a $2,500,000 grant from the Proposition 84 Storm Water Grant Program, which requires the City to commit to a local match of $800,000, for a total Project cost of $3,300,000. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby supports the A Avenue Green Street and Pedestrian Pathway Project and authorizes the filing of a Proposition 84 Storm Water Grant Program application in the amount of $2,500,000. BE IT FURTHER RESOLVED that the City Council hereby agrees to commit $800,000 in matching funds as required by the Proposition 84 Storm Water Grant for said Project. PASSED and ADOPTED this 19th day of June, 2012. Ron Morrison, Mayor ATTEST: APPROVED AS TO FORM: Michael R. Delia, City Clerk Claudia Gacitua Silva City Attorney CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: June 19, 2012 AGENDA ITEM NO. 9 ...EN TITLE: A reso►ution of the City Council of the City of National City approving the Annual Report for the Landscape Maintenance District No. 1 (Mile of Cars) for Fiscal Year 2012/13). PREPARED BY: Raymond Pe, Principal Planner PHONE: 336-4421 EXPLANATION: The City formed the Mile of Cars Landscape Maintenance District in 1995 to provide for the maintenance, operations, and servicing of certain improvements in the District. Each subsequent year, the City Council considers the adoption of several resolutions to allow the District to continue operating. District operations are funded through a special property tax levy on properties within the Mile of Cars, which are used to maintain the special themed landscape and hardscape for the District. DEPARTMENT: Con,tunity Services. APPROVED BY: The accompanying resolution approves the Annual Report ("Engineer's Report"), which provides the basis for the proposed levies for the District for Fiscal Year 2012/13. The Mile of Cars Association has approved the scope of work, the amount of levies, and the District budget. There are no changes or additions to the maintained improvements for the coming fiscal year. The proposed tota► assessment includes an increase of Tess than one -quarter of one percent over the previous year. NBS, the City's isultant, is paid from the District's assessment funds. Staff time to process these items is also paid n the District's assessment funds. FINANCIAL STATEMENT: Not applicable. ACCOUNT NO. APPROVED: APPROVED: Finance MIS ENVIRONMENTAL REVIEW: This action is not subject to the California Environmental Quality Act since it is not a project as defined in the California Code of Regulations, Section 15378. ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt the resolution. BOARD / COMMISSION RECOMMENDATION: Not applicable. ATTACHMENTS: 2/13 Engineer's Report (Annual Report) RESOLUTION NO. 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING THE ANNUAL REPORT FOR THE LANDSCAPE MAINTENANCE DISTRICT NO. 1 (MILE OF CARS) FOR FISCAL YEAR 2012/13 WHEREAS, the City Council previously completed its proceedings in accordance with and pursuant to the Landscape and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) (the "Act") to establish the City's Landscape Maintenance District No. 1 (Mile of Cars) (the "Assessment District"); and WHEREAS, the City has retained NBS for the purpose of assisting with the annual levy of the Assessment District, and to prepare and file an Annual Report; and WHEREAS, the Council has, by previous resolution, ordered NBS to prepare and file such Annual Report; and WHEREAS, NBS hasprepared and filed such Annual Report with the City Clerk. NOW, THEREFORE BE IT RESOLVED that the City Council of the City of National hereby approves the Annual Report for the Landscape Maintenance District No. 1 (Mile of Cars) concerning the levy of assessments as submitted by NBS for the fiscal year commencing July 1, 2012 and ending June 30, 2013. PASSED and ADOPTED this 19th day of June, 2012. Ron Morrison, Mayor ATTEST: Michael R. Della, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney eNBS helping communities fund tomorrow City of National City Landscape Maintenance District No. 1 (Mile of Cars) Engineer's Report Fiscal Year 2012/13 Main Office 32605 Temecula Parkway, Suite 100 Temecula, CA 92592 Toil free: 800.676.7516 Fax: 951.296.1998 Regional Office 870 Market Street, Suite 1223 San Francisco, CA 94102 Toll free: 800.434.8349 Fax: 415.391.8439 1/16 CITY OF NATIONAL CITY LANDSCAPE MAINTENANCE DISTRICT NO. 1 (MILE OF CARS) 1243 National City Blvd National City, CA 91950 Phone - (619) 3364241 Fax -(619)336-4239 MAYOR/CITY COUNCIL Ron Morrison, Mayor Alejandro Sotelo-Solis, Vice Mayor Luis Natividad, Councilmember Mona Rios, Councilmember Rosalie Zarate, Councilmember AGENCY STAFF Brad Raulston, Executive Director Ray Pe, Principal Planner DISTRICT STAFF Weldon Donaldson, Executive Director NBS Pablo Perez, Project Director Brian Thomas, Assessment Engineer Brian Brown, Consultant 2/16 TABLE OF CONTENTS 1. ENGINEER'S LETTER 1-1 2. OVERVIEW 2-1 2.1 Introduction 2_1 2.2 Description of the District Boundaries 2_1 2.3 Description of Improvements 2_1 2.4 Description of Maintenance 2-2 3. ESTIMATE OF COSTS 3-1 4. ASSESSMENT DIAGRAM 4_1 5. ASSESSMENTS 5-1 5.1 Method of Apportionment. 5-1 5.2 Annual Escalation Factor 5-2 5.3 Assessment Roll 5-3 3/16 I " ENGINEER'S LETTER WHEREAS, the City Council of the City of National City (the "City"), State of Califomia, directed NBS Government Finance Group, DBA NBS ("NBS") to prepare and file a report presenting plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations and servicing of the improvements for the City's Landscape Maintenance District No. 1 (Mile of Cars) (the "District") for Fiscal Year 2012/13. The report includes a diagram for the District, showing the area and properties proposed to be assessed, an assessment of the estimated costs of the maintenance, operations and servicing the improvements, and the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received and; WHEREAS, the assessment for each parcel is in compliance with the Proposition 218 Omnibus Implementation Act and Section 4 of Article XIII D of the Califomia Constitution. The proposed assessment is not proposed to increase by more than the 10% annual increase approved at formation of the District over the Fiscal Year 2011/12 assessment: NOW THEREFORE, only special benefits are assessed and any general benefits have been separated from the special benefits for purposes of this report. The following assessment Is made to cover the portion of the estimated costs of maintenance, operation and servicing of said improvements to be paid by the assessable real property within the District in proportion to the special benefit received: SUMMARY OF ASSESSMENT District Fiscal Year 2012/13 Actual Assessment Landscape Maintenance District No. 1 (Mile of Cars) $139,502.72 I, the undersigned, respectfully submit the enclosed Engineer's Report and, to the best of my knowledge, information and belief, the assessments herein have been prepared and computed in accordance with the assessment methodology adopted and approved by the City Council at the time of district formation. Brian Thomas, Assessment Engineer City of National City -- Landscape Maintenance District No. 1 (Mile of Cars) 1-1 Prepared by NBS — Fiscal Year 2012/13 4/16 2. OVERVIEW 2.1 Introduction The City formed the District to provide maintenance services to benefit certain parcels in the City. The District was formed in 1995 and the levies are made pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highway Code (the "Act'). The 2012/13 Engineer's Report (the "Report") describes the District, the annual assessment per parcel for Fiscal Year 2012/13, based on the historical and estimated costs to maintain the improvements and provide the services that benefit parcels within the District. The word -parcel," for the purposes of this Report, refers to an individual property assigned its own Assessor's Parcel Number by the San Diego County Assessor's Office. The San Diego County Auditor -Controller uses Assessor's Parcel Numbers and specific Fund Numbers to identify on the tax roll, properties assessed for special district benefit assessments. Following consideration of public comments at a noticed public hearing, and following review of the Report, the City Council may confirm the Report as submitted, and may order the levy and collection of assessments for Fiscal Year 2012i13. If approved, the assessment information shall be submitted to the County Auditor -Controller, and included on the property tax roll for each benefiting parcel for Fiscal Year 2012/13. 2.2 Description of the District Boundaries The District's improvements are generally along National City Boulevard and bounded by 18'" Street to the north and 33"' Street and Highway 54 to the south. 2.3 Description of Improvements A general description of the improvements to be maintained under these proceedings is described as follows but shalt not be limited to: 1. Median Improvements • Landscape planting and irrigation • Colored concrete hardscape • Lighting system • Graphic panels, banners and signage • Painted crosswalks • Identification sign at 231° Street and McKinley Avenue 2. Frontage Improvements • Improvements to parkways on both sides of National City Boulevard between le Street and 33"' Street • Landscape planting and irrigation • Colored concrete sidewalks and mow curbs • Street furniture City of National City - Landscape Maintenance District No. 1 (Mile of Cars) 2-1 Prepared by NBS - Fiscal Year 2012/13 5/16 2.4 Description of Maintenance The maintenance of the improvements shall include the fumishing of services and materials for the ordinary and usual maintenance and servicing of the improvements, including but shall not be limited to: 1. General Plant Maintenance • Mowing, trimming, pruning and weeding • Watering, including water usage • Fertilizing • Plant replacement • Periodic skinning of palm trees 2. Maintenance of Irrigation System • Adjustment of timers • Repair/replacement of wom-out, stolen or malfunctioning equipment 3. Periodic restriping of decorative crosswalks 4. Periodic repainting of metal benches and trash receptacles 5. Periodic repainting and repair of light poles, graphic panels, signage and other miscellaneous equipment 6. Maintenance of electrical system • Bulb replacement • Repair/replacement of worn out or malfunctioning equipment • Electrical energy charges 7. Litter removal 8. Trash pick-up 9. Other repairs of damage caused by vandalism and/or traffic accidents City of National City — Landscape Maintenance District No. 1 (Mile of Cars) 2-2 Prepared by NBS — Fiscal Year 2012/13 6/16 3. ESTIMATE OF COSTS The cost of servicing, maintaining, repairing and replacing the improvements as described in the Description of Improvements are summarized in the table below. Estimated expenditures are shown along with the incidental expenses to be funded by the District. It is the intent of the District to establish a Reserve Fund for the District which shall not exceed the estimated costs of maintenance and servicing until December of each fiscal year, or whenever the District expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The following table summarizes the components that make up the Fiscal Year 2012/13 estimate of costs for the District: Description Median Improvements Frontage Improvements Cost of annual maintenance: 1. Lawn planting care 2. Median planting care 3. Palm tree maintenance 4. Water usage 5. Refurbishment of graphic panels 6. General maintenance of electrical system/lights 7. Electrical usage 8. Refurbishment of decorative crosswalks 9. Contingencies Subtotal: $0.00 19,749.12 4,095.00 12,304.14 15,000.00 3,046.11 7,150.60 2,000.00 2,500.00 $65,844.97 $39,498.23 0.00 4,095.00 12,304.14 0.00 0.00 0.00 2,000.00 2,500.00 $60,397.37 Incidentals: A. Administration $3,600.00 $3,600.00 B. Advertising 203.00 203.00 C. Other Contractual Obligations 75.00 75.00 D. Engineering 250.00 250.00 E City Expenses 500.00 500.00 F. Consultant Fees 2,000.00 2,000.00 G. County Collection Foos 2.30 2.30 Total Incidentals: $6,830.30 $6,630.30 Total Estimated Annual Cost: $72,475.27 $67,027.67 Surplus or Deficit: $0.00 $0.00 NET ANNUAL ASSESSMENT BY $72,475.27 $67,027.67 IMPROVEMENT AREA: TOTAL ANNUAL ASSESSMENT FOR THE DISTRICT (11: (1) The Annual Assessment amount shown alwve doors not include any rounding adjustments. $139,502.94 City of National City — Landscape Maintenance District No. 1 (Mile of Cars) 3.1 Prepared by NBS — Fiscal Year 2012/13 7/16 4. ASSESSMENT DIAGRAM The Assessment Diagram sets forth (a) the exterior boundaries of the District and (b) the lines of each lot or parcel of land within the District. The Assessment Diagram further identifies each lot or parcel by a distinctive number or letter. For a detailed description of the lines and dimensions of any lot or parcel, reference is made to the County Assessor's Map applicable for the next fiscal year, which map shall govern for all details conceming the lines and dimensions of such lots or parcels. The following pages provide a copy of the Assessment Diagram for the District. City of National City — Landscape Maintenance District No. 1 (Mile of Cars) 4-1 Prepared by NBS — Fiscal Year 2012/13 8/16 'ELM M SEE art¢ Or TINT Orr CUM Cr TAM OT'T CA' NA1MAAL art n+S_.. DM CF1S99. Orr MEM orr v nAVonAL art STATE Dr CAJFORNA RECORDED N THE QQTTOE CF The SUPFRD(RMIENT OF STREETS W IRE CITY Cr NATIONAL lylY SAS _DAY or MIL SUPIEWESME NT Or STRUTS CITY CR HA7IOSK CITY STATIC K CAAToHNµ AH Mumma TIRE MAIM 9Y TIE Car COENRA DH T *MOM. 4,40 PARCELS Cr LDR SAq AS4E:MEW NM MIRED M *ECM of 11.D ASxSao.T pAAMAL 1190 SAO AIDTESWEM CIAG4W NM THE ASSEBOiEFT RC I. l £ KCopOLD IN ALE IMF OF TIE BJPOISEIDASENT OF STREETS OF SAO OTT ON 7ME�.—OAY OFIVN. eRIlROICF p HAM TO The ASCSWr (T RDLL REAMED N THE OIACE a THE SUFERNTEMENT a sA RS FOR TIE EXACT MOW Or EACH ASST79MHT LEWD ACAS T PAOV PARCSi cr. LAM WOW RW Mid ASPS9MCM WONAN. MEM CJLY of MAIIONAL CRT STATIC CF CALIFORNIA MED TWS DAT OE 1994 AT THE MIER Or_......0'QDQC ,SAL M Soar IF MAYS OF ATAtCSSLAONT AAO CrRUYEUAAY FAC31106 DISTFDOTS M THE COMM Dr IHE CpMTY RECDROTR Or THE COUNTY CF SAN Deco, CALRIMNIA1 mum C CEr'SM-DOA:O STATE OA C.ALIFotemA AMENDED ASSESSMENT DIAGRAM OF LANDSCAPE MAINTENANCE DISTRICT NO. 1 (MILE OF CARS) CITY OF NATIONAL CITY COUNTY OF SAN DEGO STATE OF CAUFORNIA REVISED 8-1-96 REVISED 6-1F97 REVISED 6-19-02 REVISED 6-09-03 REVISED 5-26-04 E%&AP;EEEU10A8Y 400 CIIMNIMMEN No7 , ORIGINAL SHEET' SIZE 181x26* SHtt t 1 OF 3:8HEETI3 f T L Wins/ACC or (RCN PARCEL to IdA CURACAO CCVITY AmasoRD NAPS AM SHONW+ HERECEN TO OM NEAREST MOT. REFER TO ASSESSOR'S PARCEL LAPS rag MUMMY DwEWDCN$ NOT SEMI NASLAND ENGINEERING CT.rt, p'iNWMO . TATRTPRIr6 1ANV TTA"HRF aTa l.rt..r hwl� A� N.w 4w.w:. �en.w�-Y¢.mw N.E JOB No. 105-148 591' NATIONAL AMENDED ASSESSMENT DIAGRAM OF LANDSCAPE MAINTENANCE DISTRICT NO. 1 (MILE OF CARS) CITY OF NATIONAL are COUNTY OF ?AN DIEQO STATE OF CAI -FORM 60UIEY.3so .t9l:YfdN.iR 392 310-69 SHEET 2 OF 3 ABCWW1-$3 gar 90ULEVAFD JI j REVISED 8-1-96 REVS 8-11-97. REVISED 6-19-02 REVISED 8--09-03 REVISED 5-28-04 .py a we tM art oft, NOT ORKYNAL SHEET SIZE yr r 16. itMt6tS;, Wm2}C wa Y ,. N.E. JOE No.105-148 AMENDED ASSESSMENT DIAGRAM OF LANDSCAPE MAINTENANCE DISTRICT NO. 1 EMU OF CARS) CITY OF NATIONAL CITY ou--1.so-40 3oP' 303 562-340-09 513.130-13 mwspoRrAmpti 'AVENUE COUNTY OF SAN DIEGO STATE OF CALIFORNIA cact ur GAY..EgILEVMD. 362-220-ID 15Y 562.22041 31 393»3,1Rrxa EX1E16o6 aowmAln Cr GPM ,en 563-330-33 0 ffi W6 SHEET 3 OP 3 367-330-43 O REVISED 8-1-96 REVISED 6-11-97 REVISED 6-19-02 REVISED 6-09-03 REVISED 5-28-04 NASLAND ENGINEERING CMG 10•01/ai*A3 • aue.sn.a UFOrumwro. F- WP 4VM.1M i.11 .MLar•mee NOTE+ ORDINAL SHUT SIZE W x 26' LE. JCS 10644 5. ASSESSMENTS The actual assessments for Fiscal Year 2012/13, apportioned to each parcel as shown on the latest equalized roll at the County Assessor's office, are listed and submitted as Section 5.3 of this Report. The description of each lot or parcel is part of the records of the County Assessor of the County of San Diego and such records are, by reference, made part of this Report. 5.1 Method of Apportionment The law requires and the statutes provide that assessments, as levied pursuant to the provisions of the Act, must be based on the benefit that the properties receive from the improvements to be maintained. The statute does not specify the method or formula that should be used in any special assessment district proceedings. The responsibility rests with the Assessment Engineer, who Is appointed for the purpose of making an analysis et the facts and determining the correct apportionment of the assessment obligation. IDENTIFY THE BENEFIT First, it is necessary to identify the benefit that the improvements to be maintained will render to the properties within the boundaries of the District. The improvements significantly improve the visual appearance of the streetscape, making the Mile of Cars a more enjoyable and desirable location for customers. The special signage and lighting provide a unifying theme, benefiting all of the properties within the District. APPORTIONMENT OF COSTS In further making the analysis, it is necessary that the property owners receive a special and direct benefit distinguished from that of the general public. In this case, an in-depth analysis was made and several factors are being used in the final method and spread of assessment. All of the improvements are intended to be of direct benefit to properties within the District. These improvements require significantly more maintenance than normally provided by the City_ It is therefore appropriate L'iat the properties receiving the benefit be assessed for the additional cost There are generally two categories of improvements to be maintained by the District. The median improvements benefit all properties within the District. The improvements to the parkway (referred to herein as Frontage Improvements) benefit those properties which they abut. The specific method of spreading the assessment Is described below: Median Improvements 1. The total cost for maintenance of the median improvements is apportioned to all parcels in the District based on the frontage of each parcel on National City Boulevard, with the exception of Parcel 26 (APN 562-321-08), which is owned by the City of National City and therefore, is not subject to an assessment, and as otherwise noted below. City of National City — Landscape Maintenance District No. 1 (Mile of Cars) 5-1 Prepared by NBS — Fiscal Year 2012/13 12/16 2. Parcel 32 (APN 562-220-11) has no frontage on National City Boulevard, but will benefit from the median Improvements. This parcel is assessed for median improvements as if it had a frontage of 100 feet. Frontage Improvements 3. The total cost for maintenance of the Frontage Improvements is apportioned to all parcels in the District except Parcel 26 (APN 562-321-08) and Parcel 32 (APN 562- 220-11), based on frontage of each such parcel on National City Boulevard. The frontage of each parcel is determined from current assessor's maps for the County of San Diego, State of California. All frontage dimensions have been rounded to the nearest foot. 5.2 Annual Escalation Factor The annual assessment to be levied on all properties within the district in any fiscal year shall be subject to an annual escalation of up to 10% based upon actual and anticipated expenditures. The annual assessment shall not exceed the maximum assessment, unless the appropriate Proposition 218 proceedings are conducted by the City to authorize an increase beyond the maximum assessment amount. City of National City — Landscape Maintenance District No. 1 (Mile of Cars) 5-2 Prepared by NBS — Fiscal Year 2012/13 13/16 5.3 Assessment Roll The proposed Fiscal Year 2012113 District assessment roll is listed on the following pages. City of National City — Landscape Maintenance District No. 1 (Mile of Cars) 5-3 Prepared by NBS — Fiscal Year 2012/13 14/16 Account 10 Property 10 Da City of National City Landscape Maintenance District No 1 (Mile of Cars) Final Detail Report for the 2012/13 Billing Levy Ku Ad). Total 560-203-03-00 580-203-03-00 44,598.13 $(0.01) 44,598.12 580-204-02-00 560-204-0240 2,21216 0.00 2,21216 580-204-04-00 56020444-00 3,00221 (0.01) 3,002,20 440-210-01-00 560.210.01-00 1,975.14 0.00 1,975.14 560-210-04-00 560-21304-00 2,607.19 (0,01) 2,607.18 560 21040-00 560-213-40-00 3,334.04 0.00 3,334.04 563.210-41-00 550-21041-00 790.06 0.00 790.06 560.21042-00 650.210.42-00 474.03 (0.01) 474.02 560,281-08-00 560-261-08-00 4,266.30 0.00 4,265.30 563471-07-00 560.271.0740 1,185.08 0.00 1,185.08 580271.09.00 560-2.71-09-00 790.06 0.30 790.06 460.271-14-00 580.271-14-00 1,501.11 (0.01) 1,501.10 560-271-15-00 560-271-15-00 1,580,11 (0.01) 1,580,10 560-330-03-00 560-330-0340 9,338.47 (0.01) 9,338.48 560 793.03.00 580393-03-00 2,21216 0.00 2,212.18 5603934400 560393-04-00 7,584.54 0.00 7,584.54 582-021-01-00 562-021-01-00 1,580.11 (0.01) 1,580.10 i-. 582-021-07-00 562-021-07-00 2,528.15 0.00 2,528,18 CJl 552-031-13-00 582-031-13-00 1,738.12 0.00 1,738.12 -...., 582-031-14-00 562-031.14-00 2,526.18 0.00 2,528.18 1.--L 562-090.06 50 562-090.04-00 4,266.30 0,00 4,284.30 4:7•N 542.100.13.00 562-100.13-00 2133.15 (0.01) 2,133.14 562-100-14-00 562-100.14.00 2,133.15 (0.31) 2,130.14 582-150-13-00 562-150-13-00 3,30244 0.00 3,302.44 562-16047-00 562-180-07-00 4,740.34 0.00 4,740.34 562.180.32-00 152-18032-00 1,295.69 (0,01) 1,29558 582-18043-03 562-180-33-00 2,006.74 0.00 2,006.74 582220-11-00 562220-11-00 816.44 0.00 816.44 562220-13-00 562-220-13-00 3,63428 0.00 3,634.26 562-2203140 562-22041.00 2449.17 (0.01) 2,449,16 562.220.32-00 582-220-3240 4,951.55 (0.01) 4,961.54 562-251-37-00 562251-37-00 3,191.83 (0.01) 3,191.82 562-26138-00 55225138-00 2,638.79 (0.01) 2,638.78 562-252.16-00 562-252-1540 6,214.37 (0.01) 5,214.36 562321-0740 582-321.07-00 2875.81 (0.01) 2875.80 662421-06-00 562321-0840 0.00 0.00 0.00 582-'r 5.00 562-330-35-00 3,934.48 100 3,934.48 582-330.42-00 562-330-42-00 1,200.89 (0.01) 1,200.88 562 330 .,3 00 582330.43-04 0.00 0.00 0.00 562340-09-00 5623404940 4,740.34 0.00 4,740.34 562-340.47-00 562 340-47-00 2,591.39 (0.01) 2,581.38 5623404840 56244048-00 4,88929 (0.01) 6,689.28 562340.49-00 552-34049-00 4,596,13 (0.01) 4,5118.12 562-3405000 582-340-50-00 4,740.34 0.00 4,740.34 562340-69-00 582-340-69-00 4,582,33 (001) 4,582.32 COpynght 0 1899-2008 NBS Page 1 of 2 5118/2012 3:07:28PM Account ID Property ID 6e2s40a0.00 5 2s40-70A0 DB City of National City Landscape Maintenance District No 1 (Mile of Cars) Final Detail Report for the 2012/13 Billing Lorry n„ 4,740.94 Miae AG]s Total 0.00 4.740.34 48 Accounts $138,802.84 $(0.22) $139,802.72 Copyright© 1999-200B NBS Page 2 of 2 5/18/2012 3:07:28PM CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: June 19, 2012 AGENDA ITEM NO.10 EM TITLE: A resolution of the City Council of the City of National City declaring its intention to levy and collect assessments for the Landscape Maintenance District No. 1 (Mile of Cars) for fiscal year 2012/13.. PREPARED BY: Raymond Pe, Principal Planner PHONE: 336-4421 EXPLANATION: The City formed the Mile of Cars Landscape Maintenance District in 1995 to provide for the maintenance, operations, and servicing of certain improvements in the District. Each subsequent year, the City Council considers the adoption of several resolutions to allow the District to continue operating. District operations are funded through a special property tax levy on properties within the Mile of Cars, which are used to maintain the special themed landscape and hardscape for the District. DEPARTMENT: APPROVED BY: unity Services. The accompanying resolution declares the City's intention to levy and collect the assessments on behalf of the District for Fiscal Year 2012/13. The Mile of Cars Association has approved the scope of work, the amount of levies, and the District budget. There are no changes or additions to the maintained improvements for the coming fiscal year. The proposed total assessment includes an increase of less than one -quarter of one percent over the previous year. NBS, the City's consultant, is paid from the "'" trict's assessment funds. Staff time to process these items is also paid from the District's essment funds. FINANCIAL STATEMENT: Not applicable. ACCOUNT NO. APPROVED: APPROVED: Finance MIS ENVIRONMENTAL REVIEW: This action is not subject to the California Environmental Quality Act since it is not a project as defined in the California Code of Regulations, Section 15378. ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt the resolution. BOARD / COMMISSION RECOMMENDATION: Not applicable. ATTACHMENTS: RESOLUTION NO. 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY DECLARING ITS INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR THE LANDSCAPE MAINTENANCE DISTRICT NO. 1 (MILE OF CARS) FOR FISCAL YEAR 2012/13 WHEREAS, the Council previously completed its proceedings in accordance with and pursuant to the Landscape and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) (the "Act") to establish the City's Landscape Maintenance District No. 1 (Mile of Cars) (the "Assessment District"); and WHEREAS, the City has retained NBS for the purpose of assisting with the annual levy of the Assessment District, and to prepare and file an Annual Report. NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED by the City Council of the City of National City, as follows: 1 Intention: The Council hereby declares its intention to levy and collect assessments within the Assessment District to pay the costs of the Improvements for the fiscal year commencing July 1, 2012 and ending June 30, 2013. The Council finds that the public's best interest requires such action. Improvements: The Improvements include, but are not limited to: landscape planting and irrigation, colored hardscape, lighting systems, graphic panels, banners and signage, painted crosswalks, and street furniture. Services provided include all necessary service, operations, administration and maintenance required to keep the improvements in a healthy, vigorous, and satisfactory condition. Assessment District Boundaries: The boundaries of the Assessment District are as shown by the assessment diagram filed in the offices of the City Clerk, which map is made a part hereof by reference. Annual Report: Reference is made to the Annual Report prepared by NBS, on file with the Clerk, for a full and detailed description of the improvements, the boundaries of the Assessment District, and the proposed assessments upon assessable lots and parcels of land within the Assessment District. 5. Notice of Public Hearing: The Council hereby declares its intention to conduct a Public Hearing concerning the levy of assessments in accordance with Section 22629 of the Act. All objections to the assessment, if any, will be considered by the Council. The Public Hearing will be held on Tuesday July 3`d, 2012 at 6:00 pm or as soon thereafter as is feasible in the Council Chambers located at 1243 National City Blvd, National City, CA 91950. The Council further orders the Clerk to publish notice of this resolution in accordance with Section 22626 of the Act. 6. Increase of Assessment: The maximum assessment is not proposed to increase from the previous year above that previously approved by the property owners (as "increased assessment" is defined in Section 54954.6 of the Government Code). --- Signature Page to Follow --- Resolution No. 2012 — Page Two PASSED and ADOPTED this 19th day of June, 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 ETING DATE: June 19, 2012 AGENDA ITEM NO. 11 EM TITLE: A resolution of the City Council of the City of National City initiating proceedings for the levy and collection of assessments for the Landscape Maintenance District No. 1 (Mile of Cars) for Fiscal Year 2012/13). PREPARED BY: Raymond Pe, Principal Planner DEPARTMENT: Community Services. PHONE: 336-4421 APPROVED BY: EXPLANATION: The City formed the Mile of Cars Landscape Maintenance District in 1995 to provide for the maintenance, operations, and servicing of certain improvements in the District. Each subsequent year, the City Council considers the adoption of several resolutions to allow the District to continue operating. District operations are funded through a special property tax levy on properties within the Mile of Cars, which are used to maintain the special themed landscape and hardscape for the District. The accompanying resolution initiates proceedings for the District for Fiscal Year 2012/13. The Mile of Cars Association has approved the scope of work, the amount of levies, and the District budget. There are no changes or additions to the maintained improvements for the coming fiscal year. The proposed total assessment includes an increase of less than one -quarter of one percent over the previous year. ilSn , the City's consultant, is paid from the District's assessment funds. Staff time to process these s is also paid from the District's assessment funds. FINANCIAL STATEMENT: Not applicable. ACCOUNT NO. APPROVED: APPROVED: Finance MIS ENVIRONMENTAL REVIEW: This action is not subject to the California Environmental Quality Act since it is not a project as defined in the California Code of Regulations, Section 15378. ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt the resolution. BOARD / COMMISSION RECOMMENDATION: Not applicable. •TACHMENTS: RESOLUTION NO. 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY INITIATING PROCEEDINGS FOR THE LEVY AND COLLECTION OF ASSESSMENTS FOR THE LANDSCAPE MAINTENANCE DISTRICT NO. 1 (MILE OF CARS) FOR FISCAL YEAR 2012/13 WHEREAS, the City Council previously completed its proceedings in accordance with and pursuant to the Landscape and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) (the "Act") to establish the City's Landscape Maintenance District No. 1 (Mile of Cars) (the "Assessment District"); and WHEREAS, the City has retained NBS for the purpose of assisting with the annual levy of the Assessment District, and to prepare and file an Annual Report. NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED by the City Council of the city of National City, as follows: 1. Annual Report: The Council ordered NBS to prepare and file with the City Clerk the Annual Report concerning the levy and collection of assessments within the Assessment District for the fiscal year commencing July 1, 2012, and ending June 30, 2013. 2. New Improvements or Changes to Existing Improvements: There are no changes to existing improvements nor are there any items being added to the list of improvements previously approved at the formation of the Assessment District. PASSED and ADOPTED this 19th day of June, 2012. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney Ron Morrison, Mayor CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: June 19, 2012 AGENDA ITEM NO. 12 M TITLE: Resolution of the City Council of the City of National City waiving the bid process by piggybacking Western States Contracting Alliance (WSCA) contract #1715 and authorizing the Mayor to execute a 5 year multifunction copier lease and service agreement with Konica Minolta Business Solutions USA INC. PREPARED BY: Ron Williams DEPARTMENT: PHONE: 619-336-4373 APPROVED EXPLANATION: See Attachment (Background) FINANCIAL STATEMENT: APPROVED: 4/�^ ACCOUNT NO. APPROVED: Estimated annual cost for first three years is $112,000. Funds: 632-404-047-268-0000 ($88,800) 108-431-000-299-0000 ($23,200) ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Adopt resolution BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: anation(Background) contract and Exhibits A-D City Council Staff Report June 19, 2012 ITEM Resolution of the City Council of the City of National City waiving the bid process by piggybacking Western States Contracting Alliance (WSCA) contract #1715 and authorizing the Mayor to execute a five (5) year multifunction copier lease and service agreement with Konica Minolta Business Solutions USA, Inc. BACKGROUND In May, 2012, the City's multi -year lease agreement for multifunction copiers expired. The agreement provided for the equipment necessary for copy, print and fax processing City-wide (with the exception of Fire Station 31 and the Library). Consistent with best business practices, prior to the expiration of the agreement, staff began researching options considering both pricing and functionality. During the research period, the current vendor agreed to a one month extension allowing staff the time necessary to complete this process with no interruption in service. Based on the research conducted, staff determined that the services of Konica Minolta Business Solutions, USA, Inc. (KMBS), as contracted through the Western States Contracting Alliance (WSCA), provides both competitive pricing and the needed functionality. As such, staff seeks the authority to enter into an agreement with KMBS via a piggy back of the existing WSCA agreement. DISCUSSION Staff seeks to leverage WSCA contract #1715 to meet the City's multifunction copier needs utilizing vendor, KMBS. The WSCA contract was created so that participating Western states as well as local cities, counties, public schools and institutions of higher learning could join together in cooperative multi -state contracting for competitively bid imaging equipment and services. The City of National City currently leases from Ikon Office Solutions Inc., fourteen (14) Canon multifunction copiers located at various City facilities. A new five year lease agreement with KMBS will result in a more advantageous pricing model (cost per copy). In addition to replacing the fourteen (14) copiers noted, the proposed lease agreement will include six (6) multifunction copiers for the Library [5] and Fire Station 31 [ 1 ] for a total of twenty (20) leased multifunction copiers. The Library currently owns five (5) Xerox copiers that are reaching the end of their projected life span at six (6) years old thus needing to be replaced. Konica Minolta is seeking an exception to the termination of convenience clause based on the following: "Konica Minolta would like to help in any way possible within reason to help the City of National City attain this savings. However, the terms pertaining to cancellation found in Section 22, "Termination for the Convenience of The State", are preventing us from moving forward. We at Konica Minolta would like to express how this would have a great _financial hardship and great risk if the City would move forward with a cancellation midterm. The products and services that Konica Minolta offers, as well as our rivals, who offer similar products and services, are all technology -based. Like computers, phones and other technology hardware, the market price of these products greatly diminishes once unboxed, delivered and he _<_ej In aoWitiori. the slow collection of payments over 5 years does not keep up with the depreciation of the product. This situation is not much different than it is for the City's leased automobiles. When a car dealer leases a vehicle, the contract is signed and the hardware asset is delivered. If the City had a cancellation for convenience contract and chose to invoke that option mid- term, the amount owed would be more than the payments received. If the dealer was forced to take back the automobile, the resale value would not match up to the amount owed. This would create a financial hardship on the dealer. This analogy is similar to the photocopier industry. The cost to take back used equipment mid-term would present a financial hardship. The risk within this opportunity is far different than the risk, say a construction contractor would have to bare, in that if the City cancelled a construction contract all that the contractor would lose is future business not yet rendered. The. City, most likely would have to pay for work rendered up to the moment of cancellation, but not in the future. This is quite different with a hardware / technology lease, because the equipment is delivered, partially used and it loses its value with every click, or f a car, it loses its value with every mile drive, Konica Minolta respectfully requests the termination for convenience be removed and that we keeping place the termination for Non - Appropriation and termination for cause in its place." Staff finds the justification provided by KMBS to be valid based on the commodity under consideration. As drafted in the proposed agreement, the City would retain the right to terminate the agreement for cause including terminal breach, misrepresentation by the vendor and/or failure to perform services as directed by the City. The agreement can also be terminated in the event that funds to continue payment are not appropriated by the City. FISCAL IMPACT The total estimated cost is $112,000 per year for the first three (3) years. The agreement allows for a price escalation of up to ten percent (10%) in years four (4) and five (5). The six (6) multifunction copiers for the Library would be funded via Library Fund # 108-431-000-299- 0000. Through a copy fee charged to patrons (consistent with current authorized business practices), the Library is estimated to generate enough revenue to cover the cost of its portion of the lease. The remaining copiers would be funded via Fund # 632-4040-047-268-0000. The estimated cost will result in cost savings of approximately S24,000 compared to the current multifunction copier lease with Ikon Office Solutions Inc. RECOMMENDATION Staff recommends and that Council waiving the formal bidding requirements as allowed in Section 2.60.260 of the City of National City Municipal Code, and awarding the contract to Konica Minolta Business Solutions USA, Inc. (including exempting the termination for convenience provision), for the following reasons: 1. Piggyback Western States Contracting Alliance(WSCA) contract #1715 2. The price has been determined to be competitive within the industry. 3. No further purpose would be served by issuing a formal bid at this point in the process. RESOLUTION NO. 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY WAIVING THE BID PROCESS AND AUTHORIZING THE MAYOR TO EXECUTE A FIVE-YEAR LEASE AGREEMENT WITH KONICA MINOLTA BUSINESS SOLUTIONS, USA, INC., THROUGH A COOPERATIVE PURCHASE PROGRAM UNDER THE WESTERN STATE CONTRACTING ALLIANCE WHEREAS, the City desires to contract with a multifunctional copier vendor for the lease of 20 multifunctional copiers, including staff training, delivery, installation, and maintenance of said copiers utilizing Western States Contracting Alliance ("WSCA") Contract Number: 7-09-36-01 for multifunctional copiers and related software, and the State of California (Participating State) to the extent that the WSCA contract does not conflict with this Agreement; and WHEREAS, the City has determined that Konica Minolta Business USA, Inc., "Konica Minolta") is a multifunctional copier vendor that is qualified by experience and ability to perform the services desired by the City, and Konica Minolta is willing to perform such services; and WHEREAS, Section 2.60.260 of the National City Municipal Code provides that the City may buy directly from a vendor at a price established through competitive bidding by another public agency whose procedures have been determined to be in substantial compliance with National City's procurement procedures, and the City has made such a determination in this case. It is therefore recommended that the lease purchase be made without complying with the competitive bidding procedure set forth in the Municipal Code. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby affirms the determination that State of California's procurement procedures are in substantial compliance with the City of National City's, and pursuant to Section 2.60.260 of the Municipal Code, authorizes the waiver of the bidding process for the lease of 20 multifunctional copiers, including staff training, delivery, installation, and maintenance of said copiers utilizing Western States Contracting Alliance ("WSCA") Contract Number: 7-09-36-01 for multifunctional copiers and related software, with the State of California (Participating State) to the extent that the WSCA contract terms do not conflict with this Lease Agreement. BE IT FURTHER RESOLVED that the City Council hereby authorizes the Mayor to execute the five-year Lease Agreement with Konica Minolta Business Solutions, USA, Inc., for the lease of 20 multifunctional copiers, including staff training, deliver, installation and maintenance of the copiers. Said Lease Agreement is on file in the Office of the City Clerk. PASSED and ADOPTED this 19th day of June, 2012. Ron Morrison, Mayor ATTEST: APPROVED AS TO FORM: Michael R. Dalla, City Clerk Claudia Gacitua Silva City Attorney AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND KONICA MINOLTA BUSINESS SOLUTIONS U.S.A., INC. THIS AGREEMENT is entered into this 19th day of June, 2012, by and between the CITY OF NATIONAL CITY, a municipal corporation (the "CITY"), and Konica Minolta Business Solutions U.S.A. Inc., a Corporation (the "CONTRACTOR"). RECITALS WHEREAS, the CITY desires to employ a CONTRACTOR to provide 20 leased multifunctional copiers, staff training, delivery, installation, and maintenance of said copiers utilizing Western Slates Contracting Alliance ("WSCA") contract number 7-09-36-01 - for multifunctionalcopiers and related software and the State of California (Participating State) to the extent that the WSCA contract does not conflict with this Agreement. WHEREAS. the CITY has determined that the CONTRACTOR is a multifunctional copier vendor and is qualified by experience and ability to perform the services desired by the CITY, and the CONTRACTOR is willing to perform such services. NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS FOLLOWS: 1. ENGAGEMENT OF CONTRACTOR. The CITY agrees to engage the CONTRACTOR, and the CONTRACTOR agrees to perform the services set forth here in accordance with all terms and conditions contained in this agreement. The CONTRACTOR represents that all services shall be performed directly by the CONTRACTOR or under direct supervision of the CONTRACTOR. 2. SCOPE OF SERVICES. Deliver, install and provide maintenance and training for 20 leased multifunctional copiers at City facilities. The CONTRACTOR will perform delivery and installation at City facilities as set forth in the attached Exhibit "A". CONTRACTOR shall deliver and install within 30 days following contract execution, all copiers and necessary equipment to the City. CONTRACTOR shall provide training within two days following mulitfunctional copier delivery. CONTRACTOR shall provide preventive maintenance assessments biannually and perform any remedial/reparative maintenance as required. Contractor shall respond to service calls within 2 hours and contact requestor with an estimated time of arrival. The CONTRACTOR shall be responsible for all research and reviews related to the work and shall not rely on personnel of the CITY for such services, except as authorized in advance by the CITY. The CONTRACTOR shall keep staff and City Council advised of the progress on the Project. 1 The CITY may unilaterally, or upon request from the CONTRACTOR, from time to time reduce or increase the Scope of Services to be performed by the CONTRACTOR under this Agreement. Upon doing so, the CITY and the CONTRACTOR agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction or increase in the compensation associated with said change in services, not to exceed a factor of 15% from the Base Amount. 3. PROJECT COORDINATION AND SUPERVISION. Ron Williams hereby is designated as the Project Coordinator for the CITY and will monitor the progress and execution of this Agreement. The CONTRACTOR shall assign a single Project Director to provide supervision and have overall responsibility for the progress and execution of this Agreement for the CONTRACTOR. Gene Elwell thereby is designated as the Project Director for the CONTRACTOR. 4. COMPENSATION AND PAYMENT. The compensation for the CONTRACTOR shall be based on monthly billings covering actual work performed. Billings shall include labor classifications, respective rates, hours worked and materials, if any. The cost per copy shall not exceed the amounts set forth in Exhibit "A". For the first three years of this Agreement, the total "monthly service" and "library service" costs shall not exceed the amounts set forth in Exhibit "A". Thereafter, the "monthly service" and "library service" costs may be adjusted pursuant to Section 24. A. 6. of this Agreement. Monthly invoices will be processed for payment and remitted within thirty (30) days from receipt of invoice, provided that work is accomplished consistent with Section 2 of this Agreement and Exhibit "A", as determined by the CITY. The CONTRACTOR shall maintain all books, documents, papers, employee time sheets, accounting records, and other evidence pertaining to costs incurred, and shall make such materials available at its office at all reasonable times during the term of this Agreement and for three (3) years from the date of final payment under this Agreement, for inspection by the CITY, and for furnishing of copies to the CITY, if requested. 5. ACCEPTABILITY OF WORK. The City shall decide any and all questions which may arise as to the quality or acceptability of the services performed and the manner of performance, the acceptable completion of this Agreement, and the amount of compensation due. In the event the CONTRACTOR and the City cannot agree to the quality or acceptability of the work, the manner of performance and/or the compensation payable to the CONTRACTOR in this Agreement, the City or the CONTRACTOR shall give to the other written notice. Within ten (10) business days, the CONTRACTOR and the City shall each prepare a report which supports their position and file the same with the other party. The City shall, with reasonable diligence, determine the quality or acceptability of the work, the manner of performance and/or the compensation payable to the CONTRACTOR. 6. EFFECTIVE DATE AND LENGTH OF AGREEMENT. This Agreement will become effective on June 19, 2012. The duration of this Agreement is for the period of 60 months, through June 19, 2017. 2 2012 Agreement City of National City Konica Minolta Business Solutions USA, Inc. 7. DISPOSITION AND OWNERSHIP OF DOCUMENTS. Not Applicable. 8. INDEPENDENT CONTRACTOR. Both parties hereto in the performance of this Agreement will be acting in an independent capacity and not as agents, employees, partners, or joint venturers with one another. Neither the CONTRACTOR nor the CONTRACTOR'S employees are employees of the CITY, and are not entitled to any of the rights, benefits, or privileges of the CITY'S employees, including but not limited to retirement, medical, unemploy- ment, or workers' compensation insurance. This Agreement contemplates the personal services of the CONTRACTOR and the CONTRACTOR'S employees, and it is recognized by the parties that a substantial inducement to the CITY for entering into this Agreement was, and is, the professional reputation and competence of the CONTRACTOR and its employees. Neither this Agreement nor any interest herein may be assigned by the CONTRACTOR without the prior written consent of the CITY. Nothing herein contained is intended to prevent the CONTRACTOR from employing or hiring as many employees, or SUBCONTRACTORS, as the CONTRACTOR may deem necessary for the proper and efficient performance of this Agreement. All agreements by CONTRACTOR with its SUBCONTRACTOR(S) shall require the SUBCONTRACTOR(S) to adhere to the applicable terms of this Agreement. 9. CONTROL. Neither the CITY nor its officers, agents, or employees shall have any control over the conduct of the CONTRACTOR or any of the CONTRACTOR'S employees, except as herein set forth, and the CONTRACTOR or the CONTRACTOR'S agents, servants, or employees are not in any manner agents, servants, or employees of the CITY, it being understood that the CONTRACTOR its agents, servants, and employees are as to the CITY wholly independent CONTRACTOR, and that the CONTRACTOR'S obligations to the CITY are solely such as are prescribed by this Agreement. 10. COMPLIANCE WITH APPLICABLE LAW. The CONTRACTOR, in the performance of the services to be provided herein, shall comply with all applicable state and federal statutes and regulations, and all applicable ordinances, rules, and regulations of the City of National City, whether now in force or subsequently enacted. The CONTRACTOR and each of its SUBCONTRACTOR(S), shall obtain and maintain a current City of National City business license prior to and during performance of any work pursuant to this Agreement. 11. LICENSES, PERMITS, ETC. The CONTRACTOR represents and covenants that it has all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession. The CONTRACTOR represents and covenants that the CONTRACTOR shall, at its sole cost and expense. keep in effect at all times during the term of this Agreement, any license, permit, or approval which is legally required for the CONTRACTOR to practice its profession. 12. STANDARD OF CARE. A. The CONTRACTOR, in performing any services under this Agreement, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the CONTRACTOR'S trade or profession currently practicing under similar conditions and in similar locations. The CONTRACTOR shall take all special precautions 3 2012 Agreement: City of National City Konica Minolta Business Solutions USA, Inc. necessary to protect the CONTRACTOR'S employees and members of the public from risk of harm arising out of the nature of the work and/or the conditions of the work site. B. Unless disclosed in writing prior to the date of this Agreement, the CONTRACTOR warrants to the CITY that it is not now, nor has it for the five (5) years preceding, been debarred by a governmental agency or involved in debarment, arbitration or litigation proceedings concerning the CONTRACTOR'S professional performance or the furnishing of materials or services relating thereto. C. The CONTRACTOR is responsible for identifying any unique products, treatments, processes or materials whose availability i.s critical to the success of the project the CONTRACTOR has been retained to perform, withinthe time requirements of the CITY, or, when no time is specified, then within a commercially reasonable time. Accordingly, unless the CONTRACTOR has notified the CITY otherwise, the CONTRACTOR warrants that all products, materials, processes or treatments identifiedin the project documents prepared for the CITY are reasonably commercially available. Any failure by the CONTRACTOR to use due diligence under this sub -paragraph will render the CONTRACTOR liable to the CffY for any increased costs that result from the CITY'S later inability to obtain the specified items or any reasonable substitute within a price range that allows for project completion in the time frame specified or, when not specified, then within a commercially reasonable time. 13. NON-DISCRIMINATION PROVISIONS. The CONTRACTOR shall not discriminate against any employee or applicant for employment because of age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. The CONTRACTOR will take positive action to insure that applicants are employed without regard to their age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. Such action shall include but not be limited to the following: employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The CONTRACTOR agrees to post in conspicuous places available to employees and applicants for employment any notices provided by the CITY setting forth the provisions of this non-discrimination clause. 14. CONFIDENTIAL INFORMATION. The CITY may from time to time communicate to the CONTRACTOR certain confidential information to enable the CONTRACTOR to effectively perform the services to be provided herein. The CONTRACTOR shall treat all such information as confidential and shall not disclose any part thereof without the prior written consent of the CITY. The CONTRACTOR shall limit the use and circulation of such information, even within its own organization, to the extent necessary to perform the services to be provided herein. The foregoing obligation of this Section 13, however, shall not apply to any part of the information that (i) has been disclosed in publicly available sources of information; (ii) is, through no fault of the CONTRACTOR, hereafter disclosed in publicly available sources of information; (iii) is already in the possession of the CONTRACTOR without any obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to the CONTRACTOR by a third party, but only to the extent that the use or disclosure thereof has been or is rightfully authorized by that third party. 4 2012 Agreement: City of National City Konica Minolta Business Solutions USA, Inc. The CONTRACTOR shall not disclose any reports, recommendations, conclusions or other results of the services or the existence of the subject matter of this Agreement without the prior written consent of the CITY. In its performance hereunder, the CONTRACTOR shall comply with all legal obligations it may now or hereafter have respecting the information or other property of any other person, firm or corporation. CONTRACTOR shall be liable to CITY for any damages caused by breach of this condition, pursuant to the provisions of Section 14. 15. INDEMNIFICATION AND HOLD HARMLESS. The CONTRACTOR agrees to defend, indemnify and hold harmless the City of National City, its officers and employees, against and from any and all liability, loss, damages to property, injuries to, or death of any person or persons, and all claims, demands, suites, actions, proceedings, reasonable attorneys' fees, and defense costs, of any kind or nature, including workers' compensation claims, of or by anyone whomsoever, resulting from or arising out of the CONTRACTOR'S acts and omissions; provided, however, that this indemnification and hold harmless shall not include any claims or liability arising from the established acts or omissions of the City, its agents, officers, or employees. The indemnity, defense, and hold harmless obligations contained herein shall survive the termination of this Agreement for any alleged or actual omission, act, or negligence under this Agreement that occurred during the term of this Agreement. 16. WORKERS' COMPENSATION. The CONTRACTOR shall comply with all of the provisions of the Workers' Compensation Insurance and Safety Acts of the State of California, the applicable provisions of Division 4 and 5 of the California Government Code and all amendments thereto; and all similar State or federal acts or laws applicable; and shall indemnify, and hold harmless the CITY and its officers, and employees from and against all claims, demands, payments, suits, actions, proceedings, and judgments of every nature and description, including reasonable attorney's fees and defense costs presented, brought or recovered against the CITY or its officers, employees, or volunteers, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by the CONTRACTOR under this Agreement, unless such claims, demands, payments, suits, actions, proceedings, and judgements are caused by the established negligent act, omission or willful misconduct of the CITY or its officers, employees, or volunteers. 17. INSURANCE. The CONTRACTOR, at its sole cost and expense, shall purchase and maintain, and shall require its SUBCONTRACTOR(S), when applicable, to purchase and maintain throughout the term of this Agreement, the following checked insurance policies: A. n If checked, Professional Liability Insurance (errors and omissions) with minimum limits of $1,000,000 per occurrence. B. Automobile Insurance covering all bodily injury and property damage incurred during the performance of this Agreement, with a minimum coverage of $1,000,000 combined single limit per accident. Such automobile insurance shall include owned. non -owned, and hired vehicles ("any auto"). The policy shall name the CITY and its officers, agents and employees as additional insureds, and a separate additional insured endorsement shall be provided. C. Commercial General Liability Insurance, with minimum limits of $2,000,000 per occurrence and $4,000,000 aggregate, covering all bodily injury and property damage arising 5 2012 Agreement: City of National City Konica Minolta Business Solutions USA, Inc. out of its operations under this Agreement. The policy shall name the CITY and its officers, agents and employees as additional insureds, and a separate additional insured endorsement shall be provided. Such limits may be satisfied using any combination of underlying and excess umbrellsliability policies.Workers' Compensation Insurance in an amount sufficient to meet statutory requirements covering all of CONTRACTOR'S employees and employers' liability insurance with limits of at least $1,000,000 per accident. In addition, the policy shall be endorsed with a waiver of subrogation in favor of the City. If CONTRACTOR has no employees subject to the California Workers' Compensation and Labor laws, CONTRACTOR shall execute a Declaration to that effect. Said Declaration shall be provided to CONTRACTOR by CITY. D. The aforesaid policies shall constitute primary insurance as to the CITY, its officers, employees, and volunteers, so that any other policies held by the CITY shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior written notice to the CITY of cancellation or material change. E. If required insurance coverage is provided on a "claims made" rather than "occurrence" form, the CONTRACTOR sha':': maintain sn:ch insurance coverage for three years after expiration of the term (and any extensions) of this Agreement. In addition, the "retro" date must be on or before the date of this Agreement. F. Insurance shall be written with only California admitted companies that hold a current policy holder's alphabetic and financial size category rating of not less than A VIII according to the current Best's Kcy Rating Guide, or a company equal financial stability that is approved by the CITY'S Risk Manager. In the event coverage is provided by non -admitted "surplus lines" carriers, they must be included on the most recent California List of Eligible Surplus Lines Insurers (LESLI list) and otherwise meet rating requirements. G. This Agreement shall not take effect until certificate(s) or other sufficient proof that these insurance provisions have been complied with, are filed with and approved by the CITY'S Risk Manager. If the CONTRACTOR does n.ot keep all of such insurance policies in full force and effect at all times during the terms of this Agreement, the CITY may elect to treat the failure to maintain the requisite insurance as a breach of this Agreement and terminate the Agreement as provided herein. H. All deductibles and self -insured retentions Shall be the responsibility of the CONTRACTOR. 18. LEGAL FEES. If any party brings a suit or action against the other party arising from any breach of any of the covenants or agreements or any inaccuracies in any of the representations and warranties on the part of the other party arising out of this Agreement, then in that event, the prevailing party in such action or dispute, whether by final judgment or out -of - court settlement, shall be entitled to have and recover of and from the other party all costs and expenses of suit, including attorneys' fees. For purposes of determining who is to he considered the prevailing party, it is stipulated that attorney's fees incurred in the prosecution or defense of the action or suit shall not be considered in determining the amount of the judgment or award. Attorney's fees to the prevailing party if other than the CITY shall, in addition, be limited to the amount of attorney's fees incurred by the CITY in its prosecution or defense of the action, irrespective of the actual amount of attorney's fees incurred by the prevailing party. 6 2012 Agreement: City of National City Konica Minolta Business Solutions USA, Inc. 19. MEDIATION/ARBITRATION. If a dispute arises out of or relates to this Agreement, or the breach thereof, the parties agree first to try, in good faith, to settle the dispute by mediation in San Diego, California, in accordance with the Commercial Mediation Rules of the American Arbitration Association (the "AAA") before resorting to arbitration. The costs of mediation shall be borne equally by the parties. Any controversy or claim arising out of, or relating to, this Agreement, or breach thereof, which is not resolved by mediation shall be settled by arbitration in San Diego, California, in accordance with the Commercial Arbitration Rules of the AAA then existing. Any award rendered shall be final and conclusive upon the parties, and a judgment thereon may be entered in any court having jurisdiction over the subject matter of the controversy. The expenses of the arbitration shall be borne equally by the parties to the arbitration, provided that each party shall pay for and bear the costs of its own experts, evidence and attorneys' fees, except that the arbitrator may assess such expenses or any part thereof against a specified party as part of the arbitration award. This section shall not apply to claims for collection of payments from the CITY. 20. TERMINATION. A. Should CONTRACTOR fail to cure any defaults within 30 days from receipt of written notice from CITY, this Agreement may be terminated by the CITY for cause in the event of 1) a material breach of this Agreement, 2) misrepresentation by the CONTRACTOR in connection with the formation of this Agreement or the performance of services, or 3) the failure to perform services as directed by the CITY, that have not been cured with said 30 day cure period B. The CITY may also terminate this Agreement, without penalty, if funds to effect such continued payment are not appropriated. Termination for lack of appropriation shall be effective 30 days from the date of service of written notice of lack of appropriation. Upon termination for lack of appropriation, the CITY shall be relieved of any further obligation under this Agreement, except that deliverables shall be returned to the CONTRACTOR's nearest facility in substantially the same condition in which delivered to the CITY, subject to normal wear and tear. C. Any services portion of this Agreement may be terminated by the CITY, without penalty, for convenience,with or without cause, upon service of written notice. Such termination will be effective 30 days from the date of service of written notice, or after such longer period as set forth in the notice. Upon termination of any services portion of this Agreement, the CITY shall be relieved of any further obligation under this Agreement except that CONSULTANT shall be entitled to receive just and equitable compensation for any work satisfactorily completed up to the effective date of the termination, not to exceed the amounts payable hereunder, and less any damages caused the CITY by the CONTRACTOR's breach, if any. D. Termination shall be effected by delivery of written Notice of Termination to the CONTRACTOR as provided for herein. E. In the event of termination, all finished or unfinished Memoranda Reports, Maps, Drawings, Plans, Specifications and other documents prepared by the CONTRACTOR except for those documents considered confidential or proprietary to CONTRACTOR, whether paper or electronic, shall immediately become the property of and be delivered to the CITY, and the CONTRACTOR shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of the 7 2012 Ageement: City of National City Konica Minolta Business Solutions USA, Inc. Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused the CITY by the CONTRACTOR'S breach, if any. Thereafter, ownership of said written material shall vest in the CITY all rights set forth in Section 6. F. The CITY further reserves the right to immediately terminate this Agreement upon: (1) the filing of a petition in bankruptcy affecting the CONTRACTOR; (2) a reorganization of the CONTRACTOR for the benefit of creditors; or (3) a business reorganization, change in business name or change in business status of the CONTRACTOR. 21. NOTICES. All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered; or sent by overnight mail (Federal Express or the like); or sent by registered or certified mail, postage prepaid, return receipt requested; or sent by ordinary mail, postage prepaid; or telegraphed or cabled; or delivered or sent by telex, telecopy, facsimile or fax; and shall be deemed received upon the earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if sent by overnight mail, the business day following its deposit in such overnight mail facility, (iii) if mailed by registered, certified or ordinary mail, five (5) days (ten(10) days if the address is outside the State of California) after the date of deposit in a post office, mailbox, mail chute, or other like facility regularly maintained by the United States Postal Service. (iv) if given by telegraph or cable, when delivered to the telegraph company with charges prepaid, or (v) if given by telex, telecopy, facsimile or fax, when sent. Any notice, request, demand, direction or other communication delivered or sent as specified above shall be directed to the following persons: To CITY: Ron Williams IT Manager Administrative Services City of National City 1243 National City Boulevard National City, CA 91950-4301 To CONTRACTOR: Gene Elwell Senior Account Executive Konica Minolta Business Solutions U.S.A., Inc. 5659 Cornerstone Court W. #200 San Diego, CA 92121 Notice of change of address shall be given by written notice in the manner specified in this Section. Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given shall be deemed to constitute receipt of the notice, demand, request or communication sent. Any notice, request, demand, direction or other communication sent by cable, telex, telecopy, facsimile or fax must be confirmed within forty-eight (48) hours by letter mailed or delivered as specified in this Section. 8 2012 Agreement: City of National City Konica Minolta Business Solutions USA, Inc. 22. CONFLICT OF INTEREST AND POLITICAL REFORM ACT OBLIGATIONS. During the term of this Agreement, the CONTRACTOR shall not perform services of any kind for any person or entity whose interests conflict in any way with those of the City of National City. The CONTRACTOR also agrees not to specify any product, treatment, process or material for the project in which the CONTRACTOR has a material financial interest, either direct or indirect, without first notifying the CITY of that fact. The CONTRACTOR shall at all times comply with the terms of the Political Reform Act and the National City Conflict of Interest Code. The CONTRACTOR shall immediately disqualify itself and shall not use its official position to influence in any way any matter corning before the CITY in which the CONTRACTOR has a financial interest as defined in Government Code Section 87103. The CONTRACTOR represents that it has no knowledge of any financial interests that would require it to disqualify itself from any matter on which it might perform services for the CTTY. If checked, the CONTRACTOR shall comply with all of the reporting requirements of the Political Reform Act and the National City Conflict of Interest Code. Specifically, the CONTRACTOR shall file a Statement of Economic Interests with the City Clerk of the City of National City in a timely manner on forms which the CONTRACTOR shall obtain from the City Clerk. The CONTRACTOR shall be strictly liable to the CITY for all damages, costs or expenses the CITY may suffer by virtue of any violation of this Paragraph 22 by the CONTRACTOR. 23. PREVAILING WAGES. State prevailing wage rates may apply to work performed under this Agreement. State prevailing wages rates apply to all public works contracts as set forth in California Labor Code, including but not limited to, Sections 1720,1720.2, 1720.3, 1720.4, and 1771. CONTRACTOR is solely responsible to determine if State prevailing wage rates apply and, if applicable, pay such rates in accordance with all laws, ordinances, rules, and regulations. 24. OPTIMIZED PRINT SERVICES. A. The following terms and conditions apply to the service and maintenance of the leased and other equipment referred to as Optimized Print Service ("OPS") provided by CONRACTOR to CITY during the term of this Agreement for the equipment listed on Exhibit "A" ("Equipment") of the Agreement. 1. PAYMENT: Payment is pursuant to the payment terms provided under this Agreement. Compensation shall be limited as set forth in Section 4 of this Agreement, and the cost for all work performed pursuant to this Addendum, combined with the cost for all work performed pursuant to the Agreement, shall not exceed the amount set forth in Section 4 of the Agreement. 2. METER READINGS: CONTRACTOR charges for each copy or print performed by the Equipment included in the Optimized Print Services contract, attached hereto as Exhibit "A". A copy or print shall be defined as the generation of any document or image on the Equipment. For purposes of this Agreement, all such uses of Equipment shall be 9 2012 Agreement: City of National City Konica Minolta Business Solutions USA, Inc. referenced herein as a "print". CITY agrees to pay for supplies and maintenance services based on KMBS's monitoring software meter readings. CITY shall not alter or attempt to alter actual meter reading. A monochrome print is one page of hard copy generated by printing, copying, faxing, or utilizing black toner only. A color print is one page of hard copy generated by printing, copying, faxing, or utilizing any amount of toner that is not black, even if it also uses black toner. Each 8 '/2"x 11" print will be recorded as a single meter click. 11" x 17" prints count as double clicks. Duplexed prints shall be counted as two meter clicks. For models equipped with banner printing capabilities, the following meter click charges shall apply: 18"x 27" = 3 clicks; 27"x 36" -- 4 clicks: 36"x 47" = 5 clicks. 3. SITE PREPARATION: CITY shall ensure that Equipment is placed in an environment that conforms with the manufacturer's specifications and requirements and will bear all cost and expense for any additional necessities required for installation such as telephone and electrical wiring, remodeling, and noise and power filters. Any electrical work external to the Equipment (i.e. associated peripheral equipment, power, transmission and phone lines, and modems) and equipment line cord is not covered by this Agreement. 4. SERVICE INCLUDED: In addition to the Scope of Services as provided in Section 2 of this Agreement, CONTRACTOR agrees to provide labor or routine, remedial and break/fix service as well as remedial parts. All part replacements shall be on an exchange basis with new or refurbished items. Unless otherwise indicated, normal business hours are 8:30 am to 5:00 pm, Monday through Friday, exclusive of holidays observed by KMBS. Overtime charges, at CONTRACTOR's then current rate, will be charged for all service calls outside normal business hours. In addition to any other rights hereunder, CONTRACTOR reserves the right to delete discontinued equipment from this Agreement if parts and or supplies become unavailable for discontinued equipment. 5. OPTIMIZED PRINT SERVICES DEVICE MONITORING: As a requirement to the service and maintenance provided herein, the CITY agrees to allow CONTRACTOR to install, monitoring, software on the CITY's network for the term of the contract for the purpose of automated meter collection, service alerts, and automated supplies replenishment notification. CITY agrees to not interfere with operation or sizable CONTRACTOR monitoring software. 6. ESCALATION: Unless otherwise stated in the Agreement, at the end of the first three years of this agreement and once each successive twelve month period, we may increase the service charges by a maximum of 10% of the existing charge. 7. NETWORK INTEGRATION: If Network Integration services are provided by KMBS, CITY warrants that the CONTRACTOR Digital Needs Analysis ("DNA") has been accurately completed and CONTRACTOR may rely on the information contained in the DNA in providing network integration services. CONTRACTOR reserves the right to assess additional charges for service due to CITY's modification of its network, software, or operating system(s). 8. SUPPLIES INCLUDED IN THE BASE/PRINT CHARGE: If the Konica Minolta Multifunctional ("MFP's") option on the front of this Agreement has been 10 2012 Agreement: City of National City Konica Minolta Business Solutions USA, Inc. s€.:lected, CONTRACTOR (or designated services) will provide CITY with supplies, including not limited to toner, developer, copy cartridges, staples and PM kits ("Consumable Supplies") throughout the term of this Agreement for Konica Minolta MFP's listed on Exhibit "A". If the Konica Minolta desktop printer and/or non -Konica Minolta desktop printer option is selected, CONTRACTOR will provide CITY with supplies including OEM toner cartridges for Konica Minolta desktop printers, and "Compatible" toner cartridges for non -Konica Minolta desktop printers. CITY agrees that the Consumable Supplies are CONTRACTOR property until used by CITY. CITY will use Consumable Supplies only with the Equipment and run them to their cease -function point. CITY shall not remove the Consumable Supplies from the location designated as CITY's address on the first page of this Agreement. CITY will return any unused Consumable Supplies to CONTRACTOR at the end of this Agreement. CITY shall use reasonable care to store and protect CONTRACTOR Consumable Supplies located at CITY's location for CITY's convenience. CITY bears risk of loss of CONTRACTOR unused Consumable Supplies in the event of theft, fire, or other mishap. Should CITY's use of Consumable Supplies exceed the typical use pattern (as determined solely by CONTRACTOR) for these items by more than 50% per device under contract, or should CONTRACTOR, in its sole discretion, determine that Consumable Supplies are being abused in any fashion, CITY agrees that CONTRACTOR shall have the right to change the per page rate and minimum monthly charge for this contract. 9. "COMPATIBLE" TONER CARTRIDGES: For Non -Konica Minolta devices included in the contract, the CITY agrees to allow CONTRACTOR to utilize "Compatible" toner cartridges for supplies fulfillment. 10. CATRIDGE LIMITATIONS: Each device included in this contract will have a pre -determined maximum number of allowable cartridges included per year based on assessed volumes per device. Should the CITY exceed the maximum number of cartridges on any contracted device(s), additional cartridge charges determined by CONTRACTOR will be incurred. 11. TERMINATION: Termination of Optimized Print Services, in whole or in part, shall have no effect on any existing equipment lease agreement. Termination shall be governed by Section 20 of the Agreement. 25. MISCELLANEOUS PROVISIONS. A. Computation of Time Periods. If any date or time period provided for in this Agreement is or ends on a Saturday, Sunday or federal, state or legal holiday, then such date shall automatically be extended until 5:00 p.m. Pacific Time of the next day which is not a Saturday, Sunday or federal, state, or legal holiday. B. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute but one and the same instrument. C. Captions. Any captions to, or headings of, the sections or subsections of this Agreement are solely for the convenience of the parties hereto, are not a part of this Agreement, and shall not be used for the interpretation or determination of the validity of this Agreement or any provision hereof. 11 2012 Agreement: City of National City Konica Minolta Business Solutions USA, Inc. D. No Obligations to Third Parties. Except as otherwise expressly provided herein, the execution and delivery of this Agreement shall not be deemed to confer any rights upon, or obligate any of the parties hereto, to any person or entity other than the parties hereto. E. Exhibits and Schedules. The Exhibits and Schedules attached hereto are hereby incorporated herein by this reference for all purposes. F. Amendment to this Agreement. The terms of this Agreement may not be tnodified or amended except by an instrument in writing executed by each of the parties hereto. G. Waiver. The waiver or failure to enforce any provision of this Agreement shall not operate as a waiver of any future breach of any such provision or any other provision hereof. H. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. I. Audit. If this Agreement exceeds ten -thousand dollars ($10,000), the parties shall be subject to the examination and audit of the State Auditor for a period of three (3) years after final payment under the Agreement, per Government Code Section 8546.7. J. Entire Agreement. The terms and conditions of this Agreement, supplemented by (1) the terms and conditions of that certain MASTER SERVICE AGREEMENT FOR SERVICES OF INDEPENDENT CONTRACTOR (RFP/CONTRACT # 1715) (the "MSA"), which is attached hereto as Exhibit "B" and made a part hereof, (2) the terms and conditions of that certain CALIFORNIA PARTICIPATING ADDENDUM (7-09-36-01) (the "CPA"), which is attached hereto as Exhibit "C", (3) the WESTERN STATES CONTRACTING ALLIANCE GENERAL PROVISIONS (the "WSCA GENERAL PROVISIONS"), which is attached hereto as Exhibit "D", and (4) Exhibit "A", collectively represent the entire agreement of the CONTRACTOR and the CITY with respect to the subject matter hereof, and all agreements entered into prior hereto with respect to the subject matter hereof are revoked and superseded by this Agreement, and no representations, warranties, inducements or oral agreements have been made by any of the parties except as expressly set forth herein or in other contemporaneous written agreements. This Agreement may not be changed, modified or rescinded except in writing, signed by CONTRACTOR and the CITY, and any attempt at oral modification of this Agreement shall be void and of no effect. Notwithstanding any term or provision of the Agreement to the contrary, in the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of the MSA and CPA as described in Exhibits "B" and "C", the terms and provisions of this Agreement shall be controlling for all purposes and in all respects. Notwithstanding the foregoing, CONTRACTOR and the CITY hereby agree and acknowledge that (i) Section 21 — TERMINATION FOR NON - APPROPRIATION OF FUNDS, (ii) Section 22 - TERMINATION FOR THE CONVENIENCE OF THE STATE, (iii) Section 23 — TERMINATION FOR DEFAULT, (iv) Section 26 — LIMITATION OF LIABILITY, and (v) Section 28 — INDEMNIFICATION of the WSCA GENERAL PROVISIONS are each hereby rejected/deleted in their entirety. K. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the parties hereto. L. Construction. The parties acknowledge and agree that (i) each party is of equal bargaining strength, (ii) each party has actively participated in the drafting, preparation and negotiation of this Agreement, (iii) each such party has consulted with or has had the opportunity to consult with its own, independent counsel and such other professional advisors as such party has deemed appropriate, relative to any and all matters contemplated under this Agreement, (iv) 12 2012 Agreement: City of National City Konica Minolta Business Solutions USA, Inc. each party and such party's counsel and advisors have reviewed this Agreement, (v) each party has agreed to enter into this Agreement following such review and the rendering of such advice, and (vi) any rule or construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement, or any portions hereof, or any amendments hereto. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written. CITY OF NATIONAL CITY By: Ron Morrison, Mayor APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney KONICA MINOLTA BUSINESS SOLUTIONS U.S.A., INC. (Corporation — signatures of two corporate officers required) By: (Name) (Print) (Title) By: (Name) (Print) (Title) 13 2012 Agreement: City of National City Konica Minolta Business Solutions USA, Inc. Exhibit A Konica Minolta Proposal EXHIBIT A Current Fleet Cost vs. New Location Konica Minolta Recommendation:; Service CPC Black White Service Color CPC Finance C552 $ 0.0076 $ 0.0375 Copy Room CH1 C754 $ 0.0076 $ 0.0375 City Mgr/ City Attorney C452 $ 0.0081 $ 0.0382 Council/CH 2 C220 $ 0.0143 $ 0.0620 PD Traffic B223 $ 0.0136 PD Investigation B552 $ 0.0085 PD Records C654 $ 0.0076 $ 0.0375 PD Report Writing C552 $ 0.0076 $ 0.0375 Property/ Evidence C220 $ 0.0143 $ 0.0620 PD 2 Administration C654 $ 0.0076 $ 0.0375 HR C360 $ 0.0096 $ 0.0544 Community Service C754 $ 0.0076 $ 0.0375 Fire #34 C360 $ 0.0096 $ 0.0544 Fire #31 C360 $ 0.0096 $ 0.0544 Public Works B363 $ 0.0170 Library (2) C220 0.0143 0.062 Library (3)C360 0.0096 0.0544 Monochrome Desktop Printers $ 0.0193 Color Desktop Printers $ 0.0193 $ 0.1187 _J month Muncipal Lease (Monthly Payment) $ 4,178.04 Monthly Service * $ 1,653.98 Monthly Printer Service * $ 1,081.51 Library $ 1,570.85 Library Service $ 299.42 Total Monthly Cost $ 8,783.80 Revenue From Library $ (1,931.40) Revised Total Monthly Cost $ 6,852.40 Current Cost Equipment/Service $ 7,323.00 Printer Monthly Cost $ 1,787.51 Net Savings of New over Current $ 2,258.11 Savings from Printer Service Contract $ 414.98 *Estimated Service Cost based upon 201,746 Black White and 6,103 Current Copier Color usage *Estimated Printer Monthly Cost based upon Black White usage 37,123 and 3,062 Current Color usage The WSCA contract is a Cost per Copy (CPC) agreement with no committed volumes. ily paying for copies you use. Taxes not included. :ludes Delivery, Installation and Training 14 New Library Konica Minolta Imaging SolutPHIBIT A Average Monthly Staff Current Unit Volume BW Color Admin & Admin 2 430 ST 5107 Literacy & Wings 430 DC's 11818 Public Computer Lab Childrens Public Copy Room New Konica Minolta Unit CPC BW CPC Color C360 C360 WC 24 7326 746 C360 426 5T 470 C220 426 ST 1350 C220 Estimated Public Service Cost Black White $ 96.36 Color $ 40.58 Total Public Cost $ 136.94 Estimated Staff Service Cost Black White $ 162.48 Color (Unknown) Total Monthly Service Cost $ 299.42 Equipment Lease Cost (Staff and Public) Includes: (5) new color copier, printer and scanners. New Coin Bill Cost Retrieval System 60 month lease $ New Library Total Cost Black White Color Total Montly Revenue Net Profit from Revenue 1,570.85 1,870.27 26071 746 26817 Public Cost Per Copy 9146 $0.15 $1,371.90 746 $0.75 $559.50 $1,931.40 15 $ 0.0096 $ 0.0544 $ 0.0096 $ 0.0544 $ 0.0096 $ 0.0544 $ 0.0143 $ 0.0620 $ 0.0143 $ 0.0620 Exhibit A Desktop Printers Monochrome and Color Model Serial Number hp color LaserJet 5550 JPSC81JOM5 HP Color LaserJet CP3525 CNCCB6S08W HP Color LaserJet CP3525 CNCCB27105 HP Color LaserJet CP3525 CNCCC8Q0SQ HP Color LaserJet CP3525 CNCCB1L01B hp LaserJet 2430 CNGKC04535 hp LaserJet 2430 CNGKB01212 HP LaserJet 4050 Series USBB224981 HP LaserJet 4050 Series USCC094668 HP LaserJet 4100 Series USJNH17307 HP LaserJet 4100 Series USJNH17059 HP LaserJet 4100 Series USLND14145 HP LaserJet 4100 Series USBNG36341 HP LaserJet P2015N JPBFG03174 HP LaserJet P2055dn CNB9967254 HP LaserJet P2055dn CNB9N94016 HP LaserJet P2055dn CNB1740381 HP LaserJet P2055dn CNB9N94009 HP LaserJet P2055x CNB1740383 HP LaserJet P2055x VNB3T02664 HP LaserJet P3010 Series VNBCC4L4HG HP LaserJet P4015 CNDY854123 HP LaserJet P4015 CNDY853913 16 EXHIBIT A EXHIBIT B For Purchasing Use Only: 11FP/COtr'TRACT # 1715 MASTER SERVICE AGREEMENT FOR SERVICES OF INDEPENDENT CONTRACTOR A Contract between the Western States Contracting Alliance (WSCA) Acting by and through the State of Nevada Department of Administration Purchasing Division 515 E Musser Street, Room 300 Carson City NV 89701 Contact: Lyn Callison Telephone: (775) 684- 0198 • Fax: (775) 684-0188 and Konica Minolta Business Solutions USA Inc. 2120 Washington Blvd. Suite 450 Arlington VA 22204-5711 Contact: Kilnberley Talbot "Telephone: (703) 842-3231 • Fax: (703) 271-1188 Pursuant to Nevada Revised Statute (NRS) 277.100, NRS 277.110, NRS 333.162(1)(d), and NRS 333.480 the Chief of the Purchasing Division of Nevada is authorized to enter into cooperative group -contracting consortium. The Western States Contracting Alliance is a cooperative group -contracting consortium for state government departments, institutions, agencies and political subdivisions (i.e., colleges, school districts, counties, cities, etc.,) for the states of Alaska, Arizona, California, Colorado, Hawaii, Idaho, Minnesota, Montana, Nevada, New Mexico, Oregon, South Dakota, Utah, Washington and Wyoming. In consideration of the above premises, the parties mutually agree as follows: 1. REQUIRED APPROVAL. This contract shall not become effective until and unless approved by the Western States Contracting Alliance Board of Directors_ 2. DEFINITIONS. "WSCA" means the Western States Contracting Alliance. "State" and/or "Lead State" means the State of Nevada and its state agencies, officers, employees and immune contractors as defined in NRS 41.0307. "Participating State(s)" means state(s) that have signed (and not revoked) an Intent to Contract at the time of the award of this contract, or who have executed a Participating Addendum. "Buyer" means any WSCA agency or political subdivision participating under this contract. "Contractor" and/or Contracting Agency" means a person or entity that performs services and/or provides goods for WSCA .under the terms and conditions set forth in this contract. "Solicitation" means REP 1715 incorporated herein as Attachment AA. "Fiscal Year" is defined as the period beginning July 1 and ending June 30 of the following year. 3. CONTRACT TERM. This contract shall be effective from June I, 2009, upon execution by the State of Nevada on behalf of the Western States Contracting Alliance, sales may not be placed until the start Effeclire 04/07 Page I of 12 17 EXHIBIT B date set by a participation state in its Participation Addendum, to June 30, 2012 with the option to extend for two (2) one (1) year terms, unless sooner terminated by either party as specified in paragraph (21). 4. CANCELLATION OF CONTRACI; NOTICE. Unless otherwise stated in the special terms and conditions, any contract entered into as a result of the Solicitation may be canceled by either party upon written notice sixty (60) days prior to the effective date of the cancellation. Further, any Participating State may cancel its participation upon thirty (30) days written notice, unless otherwise limited or stated in the special terms and conditions of the Solicitation. Cancellation may be in whole or in part. Any cancellation under this provision shall not affect the rights and obligations attending orders outstanding at the time of cancellation, including any right of any Participating State to indemnification by the Contractor, rights of payment for goods/services delivered and accepted, and rights attending any warranty or default in performance in association with any order. Cancellation of the contract due to Contractor default may he immediate. 5. INCORPORATED DOCUMENTS. The parties agree that the scope of work shall be specifically described; this contract incorporates the following attachments in descending order of constructive precedence: A FI ACHMENT AA: A1'I'ACHMENT BB: ATTACHMENT CC ATTACHMENT DD: SOLICITATION # 1715 (Scope of Work) and AMENDMENT 1; SERVICE LEVEL AGREEMENT (SLA) WSCA FORMS INCLUDING ADDENDUM 1 CONTRACTOR'S RESPONSE A Contractor's attachment shall not contradict or supersede any WSCA specifications, terms or conditions without written evidence of mutual assent to such change appearing in this contract. 7. ASSENT. The parties agree that the terms and conditions listed on incorporated attachments of this contract are also specifically a part of this contract and are limited only by their respective order of precedence and any limitations specified. 8_ BID SPECIFICATIONS. Contractor certifies that any deviation from the specifications in the scope of work, incorporated herein as part of Attachment AA, have been clearly indicated by Contractor in its response, incorporated herein as Attachment DD; otherwise, it will be considered that the bid is in strict compliance. Any BRAND NAMES or manufacturers' numbers are stated in the specifications are intended to establish a standard only and are not restrictive unless the Solicitation states "no substitute," and unless so stated, bids have been considered on other makes, models or brands having comparable quality, style, workmanship and performance characteristics. Alternate bids offering lower quality or inferior performance have not been considered. 9. ACCEPTANCE OR REJECTION OF BIDS, AND AWARD. WSCA has the right to accept or reject any or all bids or parts of bids, and to waive informalities therein. This contract is based the lowest responsive and responsible bid and meets the specifications of the Solicitation and terms and conditions thereof. Unless stated otherwise in the Solicitation, WSCA has the right to award items separately or by grouping items in a total lot. 10. BID SAMPLES. Any required samples have been specifically requested in the Solicitation. Samples, when required, have been furnished free of charge. Except for those samples destroyed or mutilated in testing, samples will be returned at a bidder's request, transportation collect. 11. CONSIDERATION. The parties agree that Contractor will provide the product services specified in paragraph (5) at a cost of $ Various Rates for Groups A and B Only per Attachment DD, Cost Proposal. Unless otherwise stated in the special terms and conditions, for the purpose of award, offers made in accordance with the Solicitation must be good and firm for a period of ninety (90) days from Effective 04/07 Page 2of12 18 EXHIBIT B the date of bid opening. Contracted prices represent ceiling prices for the supplies and services offered. The Contractor shall report to the Lead State any price reduction or discount, or other more favorable terms offered to any WSCA Purchasing Entity and the Contractor agrees to negotiate in good faith to re-establish ceiling prices or other more favorable terms and conditions applicable to future orders. Bid prices must remain firm for the full term of the contract. In the case of error in the extension of prices in the bid, the unit prices will govern. WSCA does not guarantee to purchase any amount under this contract. Estimated quantities in the Solicitation are for bidding purposes only and are not to be construed as a guarantee to purchase any amount. Unless otherwise stated in the special terms and conditions offers made in accordance with the Solicitation must be good and firm for a period of ninety (90) days from the date of bid opening. Bid prices must remain firm for the full term of the contract. In the case of error in the extension of prices in the bid, the unit prices will govern. If Contractor has quoted a cash discount based upon early payment; discounts offered for less than thirty (30) days have not been considered in making the award. The date from which discount time is calculated shall be the date a correct invoice is received or receipt of shipment, whichever is later; except that if testing is performed, the date shall be the date of acceptance of the merchandise. WSCA is not liable for any costs incurred by the bidder in proposal preparation. a. WSCA Administrative Fee. The Contractor will remit to the WSCA a WSCA Administrative Fee in the amount of one half of one percent (.5 %) of the total sales from this contract made payable to the "Western States Contracting Alliance". A statement verifying the total sales amount, incorporated herein as part of Attachment CC, must accompany the remittance. This remittance will be due not later than 30 days after the last day of each calendar quarter. 12. PAYMENT. Payment for completion of a contract is normally made within thirty (30) days following the date the entire order is delivered or the date a correct invoice is received, whichever is later. After forty-five (45) days the Contractor may assess overdue account charges up to a maximum rate of one (1) percent per month on the outstanding balance. Payments will be remitted by mail. Payments may be made via a Participating State's "Purchasing Card." 13. TAXES. Prices shall be exclusive of state sales and federal excise taxes. Where a Participating State is not exempt from sales taxes on sales within its state, the Contractor shall add the sales taxes on the billing invoice as a separate entry. Contractor will be responsible to pay all taxes, assessments, fees, premiums, permits, and licenses required by law. The Lead State's real property and personal property taxes are the responsibility of Contractor in accordance with NRS 361.157 and NRS 361.159. Contractor agrees to be responsible for payment of any such government obligations not paid by its subcontractors during performance of this contract. Nevada may set-off against consideration due any delinquent govemment obligation in accordance with NRS 353C.190. 14. FINANCIAL OBLIGATIONS OF PARTICIPATING STATES. Financial obligations of Participating States are limited to the orders placed by the departments or other state agencies and institutions having available funds. Participating States incur no financial obligations on behalf of political subdivisions. Unless otherwise specified in the Solicitation, the resulting award(s) will be permissive. 15. ORDER NUMBERS. Contract order and purchase order numbers shall be clearly shown on all acknowledgments, shipping labels, packing slips, invoices, and on all correspondence. 16. REPORTS. The Contractor shall submit quarterly reports to the WSCA Contract Administrator showing the quantities and dollar volume of purchases by each Participating State, incorporated herein as part of Attachment CC. 17. DELIVERY. The prices bid shall be the delivered price to any WSCA state agency or political subdivision. All deliveries shall be F.O.B. destination with all transportation and handling charges paid by the Contractor. Responsibility and liability for loss or damage shall remain with the Contractor until final inspection and acceptance, when responsibility shall pass to the Buyer except as Effecli ire 0.1/07 Page 3of12 19 EXHIBIT B to latent defects, fraud and Contractor's warranty obligations. The minimum shipment amount will be found in the special terms and conditions. Any order for less than the specified amount is to be shipped with the freight prepaid and added as a separate item on the invoice. Any portion of an order to be shipped without transportation charges that is back -ordered shall be shipped without charge. 18. HAZARDOUS CHEMICAL INFORMATION. The Contractor will provide one set of the appropriate material safety data sheet(s) and container label(s) upon delivery of a hazardous material to any Buyer. All safety data sheets and labels will be in accordance with each Participating State's requirements. 19. INSPECTIONS. Goods furnished under this contract shall be subject to inspection and test by the Buyer at times and places determined by the Buyer. If the Buyer finds goods furnished to be incomplete or in non-compliance with bid specifications, the Buyer may reject the goods and require Contractor to either correct them without charge or deliver them at a reduced price which is equitable under the circumstances. If Contractor is unable or refuses to correct such goods within a time deemed reasonable by the Buyer, the Buyer may cancel the order in whole or in part. Nothing in this paragraph shall adversely affect the Buyer's rights including the rights and remedies associated with revocation of acceptance under the Uniform Commercial Code. 2G. INSPECTION & AUDIT. a. Books and Records. The Contractor will maintain, or supervise the maintenance of all records necessary to properly account for the payments made to the Contractor for costs authorized by this contract. Contractor agrees to keep and maintain under generally accepted accounting principles (GAAP) full, true and complete records, contracts, books, and documents as are necessary to fully disclose to WSCA, the State or United States Government, or their authorized representatives, upon audits or reviews, sufficient information to determine compliance with all state and federal regulations and statutes. b. Inspection & Audit. Contractor agrees that the relevant books, records (written, electronic, computer related or otherwise), including, without limitation, relevant accounting procedures and practices of Contractor or its subcontractors, financial statements and supporting documentation, and documentation related to the work product shall be subject, at any reasonable time, to inspection, examination, review, audit, and copying at any office or location of Contractor where such records may be found, with or without notice by WSCA; the United States Government; the State Auditor or its contracted examiners, the Department of Administration, Budget Division, the Nevada State Attorney General's Office or its Fraud Control Units, the State Legislative Auditor, and with regard to any federal funding, the relevant federal agency, the Comptroller General, the General Accounting Office, the Office of the Inspector General, or any of their authorized representatives. All subcontracts shall reflect requirements of this paragraph. c. Period of Retention. All books, records, reports, and statements relevant to this contract must be retained a minimum four (4) years after the contract terminates or or until all audits initiated within the four (4) years have been completed, whichever is later, and for five (5) years if any federal funds are used in the contract. The retention period runs from the date of payment for the relevant goods or services by the State, or from the date of termination of the Contract, whichever is later. Retention time shall be extended when an audit is scheduled or in progress for a period reasonably necessary to complete an audit and/or to complete any administrative and judicial litigation which may ensue. Effective (14/07 Page 4 of 12 20 EXHIBIT B 21. CONTRACT TERMI_NATION. Any of the following events shall constitute cause for WSCA to declare Contractor in default of the contract: (1) nonperformance of contractual requirements; and/or (2) a material breach of any term or condition of this contract. WSCA shall issue a written notice of default providing a period in which Contractor shall have an opportunity to cure. Time allowed for cure shall not diminish or eliminate Contractor's liability for liquidated or other damages. If the default remains, after Contractor has been provided the opportunity to cure, WSCA may do one or more of the following: (1) exercise any remedy provided by law; (2). terminate this contract and any related contracts or portions thereof; (3) impose liquidated damages; and/or (4) suspend Contractor from receiving future bid solicitations. Winding Up Affairs Upon Termination. In the event of termination of this contract for any reason, the parties agree that the provisions of this paragraph survive termination: i. The parties shall account for and properly present to each other all claims for fees and expenses and pay those which are undisputed and otherwise not subject to set off under this contract. Neither party may withhold performance of winding up provisions solely based on nonpayment of fees or expenses accrued up to the time of tennination; ii. Contractor shall satisfactorily complete work in progress at the agreed rate (or_a pro rata basis if necessary) if so requested by WSCA; iii. Contractor shall execute any documents and take any actions necessary to effectuate an assignment of this contract if so requested by WSCA; iv. Contractor shall preserve, protect and promptly deliver into WSCA's possession all proprietary information in accordance with paragraph (31). 22. REMEDIES. Except as otherwise provided for by law or this contract, the rights and remedies of the parties shall not be exclusive and are in addition to any other rights and remedies provided by law or equity, including, without limitation, actual damages, and to a prevailing party reasonable attorneys' fees and costs. It is specifically agreed that reasonable attorneys' fees shall include without limitation $125 per hour for attorneys employed by the Lead State. Nevada may set off consideration against any unpaid obligation of Contractor to any State agency in accordance with NRS 353C.190. 23. LIMITED LIABILITY. Nevada will not waive and intends to assert available NRS chapter 41 liability limitations in all cases. Contract liability of both parties shall not be subject to punitive damages. Liquidated damages shall not apply unless otherwise specified in the incorporated attachments. Damages for any breach by the Lead State shall never exceed the amount of funds appropriated for payment under this contract, but not yet paid to Contractor, for the fiscal year budget in existence at the time of the breach. Damages for any Contractor breach shall not exceed 150% of the contract maximum "not to exceed" value. Contractor's tort liability shall not be limited. 24. FORCE MAJEURE. Neither party to this contract shall be deemed to be in violation of this contract if it is prevented from performing any of its obligations hereunder due to strikes, failure of public transportation, civil or military authority, act of public enemy, accidents, fires, explosions, or acts of God, including, without limitation, earthquakes, floods, winds, or stonns. In such an event the intervening cause must not be through the fault of the party asserting such an excuse, and the excused party is obligated to promptly perform in accordance with the terms of the contract after the intervening cause ceases. WSCA may terminate this contract after determining such delay or default will reasonably prevent successful performance of the contract. 25. INDEMNIFICATION. To the fullest extent permitted by law, Contractor shall indemnify, hold harmless and defend, not excluding the State's right to participate, Nevada from and against all liability, claims, actions, damages, losses, and expenses, including, without limitation, reasonable attorneys' fees Effective 04/07 Page 5 of 12 21 EXHIBIT B and costs, arising out of any alleged negligent or willful acts or omissions of Contractor, its officers, employees and agents. The Contractor shall release, protect, indemnify and hold WSCA and the respective states and their officers, agencies, employees, harmless from and against any damage, cost or liability, including reasonable attorney's fees for any or all injuries to persons, property or claims for money damages arising from acts or omissions of the contractor, his employees or subcontractors or volunteers. 26. INSURANCE SCHEDULE. Unless expressly waived in writing by the Lead State or Participating States, Contractor, as an independent contractor and not an employee of the Lead State or Participating States, must carry policies of insurance in amounts specified in this Insurance Schedule and/or any Insurance Schedule agreed by Contractor and a Participating State via a participating addendum, and pay all taxes and fees incident hereunto. The Lead State and Participating States shall have no liability except as specifically provided in the contract. The Contractor shall not commence work before: 1) Contractor has provided the required evidence of insurance to the Lead State. The Lead State's approval of any changes to insurance coverage during the course of performance shall constitute an ongoing condition subsequent this contract. Any failure of the Lead State to timely approve shall not constitute a waiver of the condition. insurance Coverage: The Contractor shall, at the Contractor's sole expense, procure, maintain and keep in force for the duration of the contract the following insurance conforming to the minimum requirements specified below. Unless specifically stated herein or otherwise agreed to by the Lead State, the required insurance shall be in effect prior to the commencement of work by the Contractor and ohall continue in force as appropriate until the latter of: 1. Final acceptance by the Lead State of the completion of this contract; or 2. Such time as the insurance is no longer required by the Lead State under the terms of this contract. Any insurance or self-insurance available to the State shall be excess of and non-contributing with any insurance required from Contractor. Contractor's insurance policies shall apply on a primary basis. Until such time as the insurance is no longer required by the Lead State, Contractor shall provide the Lead State with renewal or replacement evidence of insurance no less than thirty (30) days before the expiration or replacement of the required insurance. If at any time during the period when insurance is required by the contract, an insurer or surety shall fail to comply with the requirements of this contract, as soon as Contractor has knowledge of any such failure, Contractor 'shall immediately notify the State and immediately replace such insurance or bond with an insurer meeting the requirements. Workers' Compensation and Employer's Liability Insurance 1) Contractor shall provide proot of worker's compensation insurance. 2) Employer's Liability insurance with a minimum limit of $500,000 each employee per accident for bodily injury by accident or disease. Commercial General Liability Insurance 1) Minimum Limits required: $2.000,000.00 General Aggregate $1,000,000.00 Products & Completed Operations Aggregate $1,000,000.00 Personal and Advertising Injury $1,000,000.00 Each Occurrence 2) Coverage shall be on an occurrence basis and shall be at least as broad as ISO 1996 form CG 00 01 (or a substitute form providing equivalent coverage); and shall cover liability arising from Effective 04/07 Page 6 of 12 22 EXHIBIT B premises, operations, independent contractors, completed operations, personal injury, products, civil lawsuits, Title_VII actions and liability assumed under an insured contract (including the tort liability of another assumed in a business contract). Business Automobile Liability Insurance I) Minimum Limit required: $1,000,000.00. Each Occurrence for bodily injury and property damage. 17} Coverage shall be for "any auto" (including owned, non -owned and hired vehicles). The policy shall be written on ISO form CA 00 01 or a substitute providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. Pro fessional Liability Insurance 1) Minimum Limit required: $ Waived. Each Claim 2) Retroactive date: Prior to commencement of the performance of the contract 3) Discovery period: Three (3) years after termination date of contract. 4) A certified copy of this policy may be required. Umbrella or Excess Liability insurance 1) May be used to achieve the above minimum liability limits. 2) Shall be endorsed to state it is "As Broad as Primary Policy" Commercial Crime Insurance Minimum Limit required: SWaived. Per Loss for Employee Dishonesty This insurance shall be underwritten on a blanket fonn amending the definition of "employee" to include all employees of the Vendor regardless of position or category_ General Requirements: b. Waiver of Subrogation: Each liability insurance policy shall provide for a waiver of subrogation as to additional insureds. c_ Cross -Liability: All required liability policies shall provide cross -liability coverage as would be achieve under the standard ISO separation of insureds clause. Deductibles and Self -Insured Retentions: Insurance maintained by Contractor shall apply on a first dollar basis without application of a deductible or self -insured retention unless otherwise specifically agreed to by the Lead State or Participating States. Such approval shall not relieve Contractor from the obligation to pay any deductible or self -insured retention. Any deductible or self -insured retention shall not exceed fryg thousand dollars ($50,000.00) per occurrence, unless otherwise approved. Policy Cancellation: Except for ten (10) days notice for non-payment of premium, each insurance policy shall be endorsed to state that; without thirty (30) days prior written notice to the Lead State, the policy shall not be canceled, non -renewed or coverage and /or limits reduced or materially altered, and shall provide that notices required by this paragraph shall be sent by certified mailed to the address identified on page 1 of the contract. f. Approved Insurer: Each insurance policy shall be: 1) Issued by insurance companies authorized to do business in the Lead State and Participating States or eligible surplus lines insurers acceptable to the Lead State and Participating States and having agents upon whom service of process may be made, and 2) Currently rated by A.M. Best as "A- VII" or better. d. e. Effective 04/07 Page 7 of 12 23 EXHIBIT B Evidence of insurance: Prior to the start of any Work, Contractor must provide the following documents to the Lead State: 1) Certificate of Insurance: The Acord 25 Certificate of Insurance form or a form substantially similar must be submitted to the State to evidence the insurance policies and coverages required of Contractor. 2) Schedule of Underlying Insurance Policies: If Umbrella or Excess policy is evidenced to comply with minimum limits, a copy of the Underlyer Schedule from the Umbrella or Excess insurance policy rnay be required. Review and Approval: Documents specified above must be submitted for review and approval by the Lead State prior to the commencement of work by Contractor. Neither approval by the Lead State nor failure to disapprove the insurance furnished by Contractor shall relieve Contractor of Contractor's full responsibility to provide the insurance required by this contract. Compliance with the insurance requirements of this contract shall not limit the liability of Contractor or its sub -contractors, employees or agents to the Lead State or others, aaci be in addition to and not in lieu of any other.remedy available to the Lead State or Participating States under this contract or otherwise. The Lead State reserves the right to request and review a copy of any required insurance policy or endorsement to assure compliance with these requirements. Mail all required insurance documents to the Lead State identified on page one of the contract. 27. COMPLIANCE WITH LEGAL OBLIGATIONS. Any and all supplies, services and equipment bid and furnished shall comply fully with all applicable Federal and State laws and regulations. Contractor shall procure and maintain for the duration of this contract any state, county, city or federal license, authorization, waiver, permit, qualification or certification required by statute, ordinance, law, or regulation to be held by Contractor to provide the goods or services required by this contract. The Lead State may set-off against consideration due any delinquent government obligation in accordance with NRS 353C.190. 28. WAIVER OF BREACH. Failure to declare a breach or the actual waiver of any particular breach of the contract or its material or nonmaterial terms by either party shall not operate as a waiver by such party of any of its rights or remedies as to any other breach. 29. SEVERA.BILITY. If any provision of this contract is declared by a court to be illegal or in conflict with any law, the validity of the remaining terms and provisions shall not be affected; and the rights and obligations of the parties shall be construed and enforced as if the contract did not contain the particular provision held to be invalid. 30. ASSIGNMENT/DELEGATION. To the extent that any assignment of any right under this contract changes the duty of either party, increases the burden or risk involved, impairs the chances of obtaining the performance of this contract, attempts to operate as a novation, or includes a waiver or abrogation of any defense to payment by State, such offending portion of the assignment shall be void, and shall be a breach of this contract. Contractor shall not assign, sell, transfer, subcontract or sublet rights, or delegate responsibilities under this contract, in whole or in part, without the prior written approval of the WSCA Contract Administrator. Effective 04/07 Page s of 12 24 EXHIBIT B 31. OWNERSHIP OF PROPRIETARY INFORMATION_ Any reports, histories, studies, tests, manuals, instructions, photographs, negatives, blue prints, plans, maps, data, system designs, computer code (which is intended to be consideration under the contract), or any other documents or drawings, prepared or in the course of preparation by Contractor (or its subcontractors) in performance of its obligations under this contract shall be the exclusive property of WSCA and all such materials shall be delivered into WSCA possession by Contractor upon completion, termination, or cancellation of this contract. Contractor shall not use, willingly allow, or cause to have such materials used for any purpose other than performance of Contractor's obligations under this contract without the prior written consent of WSCA. Notwithstanding the foregoing, WSCA shall have no proprietary interest in any materials licensed for use that are subject to patent, trademark or copyright protection. 32. PATENTS, COPYRIGHTS, ETC. The Contractor shall release, indemnify and hold WSCA, the State, and Participating States and their officers, agents and employees harmless from liability of any kind or nature, including the Contractor's use of any copyrighted or un-copyrighted composition, secret process, patented or unpatcnted invention, article or appliance furnished or used in the performance of this contract. 33. PUBLIC RECORDS. Pursuant to NRS 239.010, information or documents received from Contractor may be open to public inspection and copying. The State will have the duty to disclose unless a particular record is made confidential by law or a common law balancing of interests. Contractor may label specific parts of an individual document as a "trade secret" or "confidential" in accordance with NRS 333.333, provided that Contractor thereby agrees to indemnify and defend the State for honoring such a designation. The failure to so label any document that is released by the State shall constitute a complete waiver of any and all claims for damages caused by any release of the records. 34. CONFIDENTIALITY. Contractor shall keep confidential all information, in whatever form, produced, prepared, observed or received by Contractor to the extent that such information is confidential by law or otherwise required by this contract. 35. NONDISCRIMINATION. Contractor agrees to abide by the provisions of Title VI and Title VII of the Civil Rights Act of 1964 (42 USC 2000e), which prohibit discrimination against any employee or applicant for employment, or any applicant or recipient of services, on the basis of race, religion, color, or national origin; and further agrees to abide by Executive Order No. 11246, as amended, which prohibits discrimination on basis of sex; 45 CFR 90 which prohibits discrimination on the basis of age, and Section 504 of the Rehabilitation Act of 1973, or the Americans with Disabilities Act of 1990 which prohibits discrimination on the basis of disabilities. Contractor further agrees to furnish information and reports to requesting Participating Entities, upon request, for the purpose of determining compliance with these statutes. Contractor agrees to comply with each individual Participating State's certification requirements, if any, as stated in the special terms and conditions. This contract may be canceled if the Contractor fails to comply with the provisions of these laws and regulations. Contractor must include this provision in very subcontract relating to purchases by the States to insure that subcontractors and vendors are bound by this provision. 36. FEDERAL FUNDING. In the event federal funds are used for payment of all or part of this contract: a. Contractor certifies, by signing this contract, that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any federal department or agency. This certification is made pursuant to the regulations implementing Executive Order 12549, Debarment and Suspension, 28 C.F.R. pt. 67, § 67.510, as published as pt. VII of the May 26, 1988, Federal Register (pp. 19160-1921 1 ), and any relevant program -specific regulations. This provision shall be required of every subcontractor receiving any payment in whole or in part from federal funds. Effective 04/07 Page 9 of 12 25 EXHIBIT B b. Contractor and its subcontractors shall comply with all terms, conditions, and requirements of the Americans with Disabilities Act of 1990 (P.L. 101-136), 42 U.S.C. 12101, as amended, and regulations adopted thereunder contained in 28 C.F.R. 26.101-36.999, inclusive, and any relevant program -specific regulations. c. Contractor and its subcontractors shall comply with the requirements of the Civil Rights Act of 1964, as amended, the Rehabilitation Act of 1973, P.L. 93-112, as amended, and any relevant program -specific regulations, and shall not discriminate against any employee or offeror for employment because of race, national origin, creed, color, sex, religion, age, disability or handicap condition (including AIDS and AIDS -related conditions.) 37. LOBBYING. The parties agree, whether expressly prohibited by federal law, or otherwise, that no funding associated with this contract will be used for any purpose associated with or related to lobbying or influencing or attempting to lobby or influence for any purpose the following: a. Any federal, state, county or local agency, legislature, conunission, counsel or hoard; b. Any federal, state, county or local legislator, commission member, counsel member, board member, other elected official; or e. Any officer or erployee of any federal, state, county or local agency; legislature, commission, counsel or board. 38. NON -COLLUSION. Contractor certifies that this contract and the underlying bid, have been arrived at independently and have been without collusion with, and without any agreement, understanding or planned common course of action with. any other vendor of materials, supplies, equipment or services described in the invitation to bid, designed to limit independent bidding or competition. 39. WARRANTIES. a. Uniform Commercial Code. The Contractor acknowledges that the Uniform Commercial Code applies to this contract. In general, the contractor warrants that: (a) the product will do what the salesperson said it would do, (b) the product will live up to all specific claims that the manufacturer makes in their advertisements, (c) the product will be suitable for the ordinary purposes for which such product is used, (d) the product will be suitable for any special purposes that the Buyer has relied on the Contractor's skill or judgment to consider. b. General Warranty. Contractor warrants that all services, deliverables, and/or work product under this contract shall be completed in a workmanlike manner consistent with standards in the trade, profession, or industry; shall conform to or exceed the specifications set forth in the incorporated attachments; and shall be fit for ordinary use, of good quality, with no material defects. c. System Compliance. Contractor warrants that any information system application(s) shall not experience abnormally ending and/or invalid and/or incorrect results from the application(s) in the operating and testing of the business of the State. This warranty includes, without limitation, century recognition, calculations that accommodate same century and multicentury formulas and data values and date data interface values that reflect the century. 40. CONFLICT OF INTEREST. Contractor certifies that it has not offered or given any gift or compensation prohibited by the state laws of any WSCA participants to any officer or employee of WSCA or participating states to secure favorable treatment with respect to being awarded this contract. 41. INDEPENDENT CONTRACTOR. Contractor shall be an independent contractor, and as such shall have no authorization, express or implied to bind WSCA or the respective states to any agreements, settlements, liability or understanding whatsoever, and agrees not to perform any acts as agent for WSCA or the states, except as expressly set forth herein. Effective 04/07 Page 10 of 12 26 EXHIBIT B 42. POLITICAL SUBDIVISION PARTICIPATION. Participation under this contract by political subdivisions (i.e., colleges, school districts, counties, cites, etc.,) of the WSCA Participating States shall be voluntarily determined by the political subdivision. The Contractor agrees to supply the political subdivisions based upon the same terms, conditions and prices. 43. PROPER AUTHORITY. The parties hereto represent and warrant that the person executing this contract on behalf of each party has full power and authority to enter into this contract. Contractor acknowledges that as required by statute or regulation this contract is effective only after approval by the WSCA Board of Directors and only for the period of time specified in the contract. Any services performed by Contractor before this contract is effective or after it ceases to be effective are performed at the sole risk of Contractor. The Contractor certifies that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction (contract) by any governmental department or agency. 44. GOVERNING LAW; JURISDICTION. This contract and the rights and obligations of the parties hereto shall be governed and construed in accordance with the laws of the state of Nevada, without giving effect to any principle of conflict -of -law that would require the application of the law of any other jurisdiction. The parties consent to the exclusive jurisdiction of the First Judicial District Court, Carson City, Nevada for enforcement of this contract. The construction and effect of any Participating Addendum or order against the contract(s) shall he governed by and construed in accordance with the laws of the Participating State. Venue for any claim, dispute or action concerning an order placed against the contract(s) or the effect of a Participating Addendum or shall be in the Purchasing State. 45. SIGNATURES IN COUNTERPART. Contract may be signed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one in the same instrument. 46. ENTIRE CONTRACT AND MODIFICATION. This contract and its integrated attachment(s) constitute the entire agreement of the parties and such are intended as a complete and exclusive statement of the promises, representations, negotiations, discussions, and other agreements that may have been made in connection with the subject matter hereof Unless an integrated attachment to this contract specifically displays a mutual intent to amend a particular part of this contract, general conflicts in language between any such attachment and this contract shall be construed consistent with the terms of this contract. The terms of this contract shall not be waived, altered, modified, supplemented or amended in any manner whatsoever without prior written approval of the WSCA Contract Administrator. IN WITNESS WHEREOF, the parties hereto have caused this contract to be signed and intend to be legally bound thereby. Effective 04/07 Page !! of 12 27 EXHIBIT B ractor's Signature Signature �►`�. Go Dv' N Cep Date Independent's Contractor's Title Date Title 4. ;0 Z,LZ4 APPROVED BY WSCA BOARD OF DIRECTORS Greg Sinith, Administrator, State of Nevada On /9''j (Date) Approved as to form by: On 2 3 Atc J Deputy ttorne General for Attorney General (Date) Effective 0,01 Page 11 of 12 28 EXHIBIT C CALIFORNIA PARTICIPATING ADDENDUM WESTERN STATES CONTRACTING ALLIANCE (WSCA) MULTIFUNCTION COPIERS & RELATED SOFTWARE KONICA MINOLTA BUSINESS SOLUTION U.S.A., INC. MASTER PRICE AGREEMENT 7-09-36-01 1. Scope: This Participating Addendum covers the rental, lease or purchase of Multifunction Copier & Related Software for all State Agencies and will include all California political subdivisions/local governments. A subdivision/local government is defined as any city, county, city and county, district, or other local governmental body or corporation, including the California State Universities (CSU) and University of California (UC) systems, K-12 schools and community colleges empowered to expend public funds. Each political subdivision/local government should make its own determination whether the WSCA program is consistent with its procurement policies and regulations. STATE AGENCIES ARE RESTRICTED FROM USING THIS WSCA CONTRACT IN ACCORDANCE WITH MANAGEMENT MEMO #05-11, EXCEPT FOR THOSE ITEMS/CATEGORIES NOT OFFERED UNDER CALIFORNIA'S STATEWIDE COMMODITY CONTRACT FOR MULTIFUNCTION COPIER & RELATED SERVICES. IF ANY STATE DEPARTMENT WANTS TO USE THE CONTRACT TO PURCHASE ITEMS NOT ON THE CALIFORNIA STATEWIDE COMMODITY CONTRACT FOR MULTIFUNCTION COPIER &RELATED SERVICES, THEY MUST COMPLETE A STATEWIDE CONTRACT EXEMPTION REQUEST FORM SIGNED BY THEIR PROCUREMENT AND CONTRACTING OFFICIER (PCO) OR PURCHASING AUTHORITY CONTACT (PAC) AND SUBMIT IT TO THE DEPARTMENT OF GENERAL SERVICES (DGS) FOR APPROVAL PLEASE SEND ALL EXEMPTION REQUEST TO THE ATTENTION OF THE WSCA CONTRACT ADMINISTRATOR. INFORMATION ABOUT THE STRATEGICALLY SOURCED COPIER, DIGITAL & ASSOCIATED SERVICES CONTRACTS IS AVAILABLE AT! www.pcl.dcis.ca.qov/StratSourcinq/MROcontracthtm THE SUPPLEMENTAL TERMS AND CONDITIONS FOR CONTRACTS USING ARRA FUNDS APPLY TO THE ORDERING AGENCY. IF OR WHEN KONICA MINOLTA, AS A VENDOR, IS NOTIFIED BY ORDERING AGENCY THAT A SPECIFIC PURCHASE OR PURCHASES ARE BEING MADE WITH ARRA FUNDS, KONICA MINOLTA AGREES TO COMPLY WITH THE DATA ELEMENT AND REPORTING REQUIREMENTS THAT ARE LEGALLY REQUIRED OF PROVIDERS OF GOODS AND RELATED SERVICES. KONICA MINOLTA, AS IT RELATES TO PURCHASES UNDER THIS CONTRACT IS NOT A SUBCONTRACTOR OR SUBGRANTEE, BUT SIMPLY A PROVIDER OF GOODS AND RELATED SERVICES 2. Leasing, Rental & Purchase Funding to purchase or lease products available under this contract may be available to State agencies via the GS $Mart (purchases) or Lease $Mart program. Local agencies are able to take advantage of all options in the WSCA Master Price Agreement without restrictions. 3. Changes: For usage under this Participating Addendum by any Eligible Entity listed in Section 1, Scope, the following Changes apply: a The California General Provisions (CAGP) (GSPD-4011T based on April 12, 2007 standard) for Western States Contracting Alliance (WSCA) Multifunction Copiers & Related Software as attached become a part of this Participating Addendum. b. The California General Provisions (CAGP) shall prevail if there is a conflict between the terms and conditions of the contractors WSCA State of Nevada, Master Price Agreement, packaging, invoices, catalogs, brochures and technical data sheets. c. State of Nevada, Master Price Agreement number 1715 changed for California to Contract Number 7-09-36-01. d. Delivery: As negotiated between agency and contractor and included in the purchase order, or as otherwise stipulated in the contract. Revised 8/28/08 Page 1 of 4 29 EXHIBIT C CALIFORNIA PARTICIPATING ADDENDUM WESTERN STATES CONTRACTING ALLIANCE (WSCA) MULTIFUNCTION COPIERS & RELATED SOFTWARE KONICA MINOLTA BUSINESS SOLUTION U.S.A., INC. MASTER PRICE AGREEMENT 7-09-36-01 f. DGS Termination of Contract: 9. The State may terminate this contract at any time upon 30 day prior written notice. Upon termination or other expiration of this contract, each party will assist the other party in orderly termination of the contract and the transfer of all assets, tangible and intangible, as may facilitate the orderly, nondisrupted business continuation of each party. This provision shalt not relieve the contractor of the obligation to perform under any purchase order or other similar ordering document executed prior to the termination becoming effective. Reports & Administrative Fee: Contractor shall submit report to the California Contract Administrator for ail California purchases providing the following information: Agency Name Purchase Order Number Purchase Order Date WSCA Contract Number WSCA Administrative Fee Dollar Amount Agency Contact Name Agency Address Agency Telephone Number Total Dollars for the quarter The Contractor shall submit a check, in addition to the report, payable to the State of California, Contract Administrator for the calculated administrative fee for an amount equal to one percent (0.01) of the sales for the quarterly period. This fee shall be included as an adjustment to contractors WSCA pricing and not invoiced or charged to the purchasing entity. Payment of the administrative fee by Contractor due irrespective of status of payments on orders from users to Contractor. A report is clue even when there is no activity. Any report that does not follow the required format or that excludes information will be deemed incomplete. Failure to submit reports and fees on a timely basis shall constitute grounds for suspension of this agreement. Reports and fee delivery will be in accordance with the following schedule. Calendar Quarter 1 (JUL 1 to SEP 30) Calendar Quarter 2 (OCT 1 to DEC 31) Calendar Quarter 3 (JAN 1 to MAR 31) Calendar Quarter 4 (APR 1 to JUN 30) Due OCT 31 Due JAN 31 Due APR 30 Due JUL 31 The administrative fee check and report should be submitted to the following address: Cynthia Okoroike Department of General Services Procurement Division Multiple Award Prograrn - WSCA 707 Third Street, 2nd Floor, MS # 202, West Sacramento, CA 95605-2811 h. The primary state government contact for this Participating Addendum is as follows: Department of General Services, Procurement Division Multiple Award Program - WSCA 707 Third Street, 2nd Floor, MS # 202 West Sacramento, CA 95605 Revised 8/28r08 Page 2 of 4 30 EXHIBIT C CALIFORNIA PARTICIPATING ADDENDUM WESTERN STATES CONTRACTING ALLIANCE (WSCA) MULTIFUNCTION COPIERS & RELATED SOFTWARE KONICA MINOLTA BUSINESS SOLUTION U.S.A., INC. MASTER PRICE AGREEMENT 7-09-36-01 Contact: Cynthia Okoroike E-mail: cynthia.okoroike@dos.ca.gov Phone: (916) 375-4389 Fax: (916)375-4663 Lead State: Name: Lyn Callison Address: 515 East Musser Street Telephone: (775) 684-0198 Fax: (775) 684-0188 E-mail: Icalliso@purchasing.state.nv.us Contractor's Contact: Name: Kim Talbot Address: 2120 Washington Boulevard, Suite 450, Arlington, VA 22204 Telephone: (703) 842-3213 Fax: (703) 271-1188 E-mail: talbotk@kmbs.konicaminolta.us The primary Konica Minolta Business Solution U.S.A, Inc. CUSTOMER contact for this Participating Addendum is as follows: Konica Minolta Business Solution U.S.A, Inc. Address: 2120 Washington Boulevard, Suite 450 Arlington, VA 22204 Contact: Michelle Lovely E-Mail: mlovelkmbs.konicaminolta.us Phone: (303) 717-3108 Fax: (703) 271-1188 Price Agreement Number: The Master Price Agreement number for the Participating State is 7-09-36-01. The Master Price Agreement Number MUST be shown on all Purchase Orders issued against this Master Price Agreement. k. Effective Dates: This Participating Addendum shall be effective upon approval by the Department of General Services and will continue until the End Date of the Master Price Agreement. Lead State amendments to extend the term date are automatically incorporated into this Participating Addendum unless terminated early in accordance with the terms and conditions of the Master Price Agreement or this Participating Addendum. Revised 8/28/08 Page 3 of 4 31 EXHIBIT C CALIFORNIA PARTICIPATING ADDENDUM WESTERN STATES CONTRACTING ALLIANCE (WSCA) MULTIFUNCTION COPIERS & RELATED SOFTWARE KONICA MINOLTA BUSINESS SOLUTION U.S.A., INC. MASTER PRICE AGREEMENT 7-09-36-01 I. Servicing Subcontractors: Please use web site below and type in zip code: http://kmbsapps.konicaminolta.us/wheretobuy/home. ispa?productCategory=Office %20 Systems&printerBrand=& howToBuv=&howMany=&cat=& subcat=&m ode1=&wtbPro dLine_ This Addendum and the Price Agreement together with its exhibits and/or amendments, set forth the entire agreement between the parties with respect to the subject matter of all previous communications, representations or agreements, whether oral or written, with respect to the subject matter hereof. Terms and conditions inconsistent with, contrary or in addition to the terms and conditions of this Addendum and the Price Agreement, together with its exhibits and/or amendments, shall not be added to or incorporated into this Addendum or the Price Agreement and its exhibits arndlor amendments, by any subsequent purchase order or otherwise, and any such attempts to add or incorporate such terms and conditions are hereby rejected. The terms and conditions of this Addendum and the Price Agreement and its exhibits and/or amendments shall prevail and govern in the case of any such inconsistent or additional terms. By Signing below Konica Minolta Business Solution U.S.A, Inc. agrees to offer the same products/and or services as on the State of Nevada at prices equal to or lower than the prices on this contract. IN WITNESS WHEREOF, the parties have executed this Participating Addendum as of the date of execution by both parties below. State of California: By: y/t j //Le7ri/TG Name. Jim Butler Konica Mi olta Business Sol Qy.n U.,.A, Inc. Title: Deputy Director Title: ►1�A�4�1f-1 `}���(�� Date: /// U O GENERAL SERVICES LEGAL SERVICES Date: Revised 8/28/08 Page 4 of 4 32 EXHIBIT D GSPD-4011T WESTERN STATES CONTRACTING ALLIANCE (WSCA) MULTIFUNTION COPIERS AND RELATED SOFTWARE KONICA MINOLTA BUSINESS SOLUTION U.S.A., INC. GENERAL PROVISIONS 1. DEFINITIONS: Unless otherwise specified in the Statement of Work the following terms shall be given the meaning shown, unless context requires otherwise. "Acceptance Tests" means those tests performed during the Performance Period which are intended to determine compliance of Equipment and Software with the specifications and all other Attachments incorporated herein by reference and to determine the reliability of the Equipment. "Application Program" means e computer program which is intended to be executed for the purpose of performing useful work fur the user of the information being processed. Application programs are developed or otherwise acquired by the user of the Hardware/Software system, but they may be supplied by the Contractor. "Attachment" means a mechanical, electrical, or electronic interconnection to the Contractor -supplied Machine or System of Equipment, manufactured by other than the original Equipment manufacturer, that is not connected by the Contractor. "Business entity" means any individual, business, partnership, joint venture, corporation, S-corporation, limited liability corporation, limited liability partnership, sole proprietorship, joint stock company, consortium, or other private legal entity recognized by statute. "Buyer" means the State's authorized contracting official. "Commercial Software" means Software developed or regularly used that: (i) has been sold, leased, or licensed to the general public; (ii) has been offered for sale, lease, or license to the general public; (III) has not been offered, sold, leased, or licensed to the public but will be available for commercial sale, lease, or license in time to satisfy the delivery requirements of this Contract; or (Iv) satisfies a criterion expressed in (I), (ii), or (iii) above and would require only minor modifications to meet the requirements of this Contract. "Contract" means this Contract or agreement (including any purchase order), by whatever name known or in whatever format used. "Custom Software" means Software that does not meet the definition of Commercial Software. "Contractor" means the Business Entity with whom the State enters into this Contract. Contractor shall be synonymous with "supplier", 'vendor" or other similar term. "Data Processing Subsystem" means a complement of Contractor-fumished individual Machines, including the necessary controlling elements (or the functional equivalent) and Operating Software, if any, which are acquired to operate as an integrated group, and which are interconnected entirely by Contractor -supplied power andror signal cables; e.g., direct access controller and drives, a duster of terminals with their controller, etc. "Data Processing System (System)" means the total complement of Contractor -furnished Machines, including one or more central processors (or instruction processors) and Operating Software, which are acquired to operate es an integrated group. "Deliverables" means Goods, Software, Information Technology, telecommunications technology, and other items (e.g. reports) to be delivered pursuant to this Contract, including any such items furnished incident to the provision of services. "Designated CPU(s)" means for each product, if applicable, the central processing unit of the computers or the server unit, including any associated peripheral units. If no specific "Designated CPU(s)" are specified on -the Contract, the term shall mean any and all CPUs located at the site Revision 9/30/2009 (GSPD-4011T based on April 12, 2007) 33 specified therein. "Documentation" means nonproprietary manuals and other printed materials necessary or useful to the State in its use or maintenance of the Equipment or Software provided hereunder. Manuals and other printed materials customized for the State hereunder constitute Documentation only to the extent that such materials are described in or required by the Statement of Work. "Equipment" is an all-inclusive tern which refers either to individual Machines or to a complete Data Processing System or subsystem, including its Hardware and Operating Software (if any). "Equipment Failure" is a malfunction in the Equipment, excluding all external factors, which prevents the accomplishment of the Equipment's intended function(s). If microcode or Operating Software residing in the Equipment is necessary for the proper operation of the Equipment, a failure of such microcode or --Operating Software which prevents the accomplishment of the Equipment's intended functions shall be deemed to be an Equipment Failure. "Facility Readiness Date" means the dale specified in the Statement of Work by which the State must have the site prepared and available for Equipment delivery and installation. "Goods" means all types of tangible personal property, including but not limited to materials, supplies, and Equipment (including "computer and telecommunications Equipment). "Hardware" usually refers to computer Equipment and is contrasted with Software. See also Equipment_ "Installation Date" means the date specified in the Statement of Work by which the Contractor must have the ordered Equipment ready (certified) for use by the State. "Information Technology" includes, but is not limited to, all electronic technology systems and services, automated information handling, System design and analysis, conversion of data, computer prograrnrning, information storage and retrieval, telecommunications which include voice, video, and data communications, requisite System controls, simulation, electronic commerce, and all related interactions between people and Machines. "Machine" means an individual unit of a Data Processing System or subsystem, separately identified by a type and/or model number, comprised of but not limited to mechanical, electro-mechanical, and electronic parts, microcode, and special features installed thereon and including any necessary Software, e.g., central processing unit, memory module, tape unit, card reader, etc. "Machine Alteration" means any change to a Contractor - supplied Machine which is not made by the Contractor, and which results in the Machine deviating from its physical, mechanical, efectricai, or electronic (including microcode) design, whether or not additional devices or parts are employed in making such change. "Maintenance Diagnostic Routines" means the diagnostic programs customarily used by the Contractor to test Equipment for proper functioning and reliability. "Manufacturing Materials" means parts, tools, dies, jigs, fixtures, plans, drawings, and information produced or acquired, or rights acquired, specifically to fulfill obligations set forth herein. "Mean Time Between Failure (MTBF)" means the average expected or observed time between consecutive failures in a System or component. "Mean Time to Repair (MTTR)" means the average expected or observed time required to repair a System or component and return it to normal operation. Page 1 of 11 EXHIBIT D GSPD-4O11T WESTERN STATES CONTRACTING ALLIANCE (WSCA) MULTIFUNTION COPIERS AND RELATED SOFTWARE KONICA MINOLTA BUSINESS SOLUTION U.S.A., INC. GENERAL PROVISIONS "Operating Software" means those routines, whether or not identified as Program Products, that reside in the Equipment and are required for the Equipment to perform its intended function(s), and which interface the operator, other Contractor -supplied programs, and user programs to the Equipment. "Operational Use Time" means for performance measurement purposes, that time during which Equipment is in actual operation by the State. For maintenance Operational Use Time purposes, that time during which Equipment is in actual operation and is not synonymous with power on time. "Performance Testing Period" means a period of time during which the State, by appropriate tests and production runs, evaluates the performance of newly installed Equipment and Software prior to its acceptance by the State. "'Period of Maintenance Coverage" means the period of time, as selected by the State, during which maintenance services are provided by the Contractor for a fixed monthly charge, as opposed to an hourly charge for services rendered. The Period of Maintenance Coverage consists of the Principal Period of Maintenance and any additional hours of coverage per day, and/or increased coverage for weekends and holidays. "Preventive Maintenance" means that maintenance, performed on a scheduled basis by the Contractor, which is designed to keep the Equipment in proper operating condition. "Principal Period of Maintenance" means any nine consecutive hours per day (usually between the hours of 7:00 a.m. and 6:00 p.m.) as selected by the State, including an official meal period not to exceed one hour, Monday through Friday, excluding holidays observed at the installation. "Programming Aids" means Contractor -supplied programs and routines executable on the Contractor's Equipment which assists a programmer in the development of applications including language processors, sorts, communications modules, data base management systems, and utility routines, (tape -to -disk routines, disk -to -print routines, etc.). "Program Product" means programs, routines, subroutines, and related items which are proprietary to the Contractor and which are licensed to the State for its use, usually on the basis of separately stated charges and appropriate contractual provisions. "Remedial Maintenance" means that maintenance performed by the Contractor which results from Equipment (including Operating Software) failure, and which is performed as required, i.e., on an unscheduled basis. "Site License" means for each product, the term "Site License" shall mean the license established upon acquisition of the applicable number of copies of such product and payment of the applicable license fees as set forth in the Statement of Work. "Software" means an all-inclusive term which refers to any computer programs, routines, or subroutines supplied by the Contractor, including Operating Software, Programming Aids, Application Programs, and Program Products. "Software Failure" means a malfunction in the Contractor - supplied Software, other than Operating Software, which prevents the accomplishment of work, even though the Equipment (including its Operating Software) may still be capable of operating properly. For Operating Software failure, see definition of Equipment Failure. "State" means the government of the State of California, Revision 9/30/2009 (GSPD-4011T based on April 12, 2007) 34 its employees and authorized representatives, including without limitation any department, agency, or other unit of the government of the State of California. "System" means the complete collection of Hardware, Software and services as described in this Contract, integrated and functioning together, and performing in accordance with this Contract. "U.S. Intellectual Property Rights" means intellectual property rights enforceable in the United States of America, including without limitation rights in trade secrets, copyrights, and U.S. patents. 2. CONTRACT FORMATION: a) If this Contract results from a sealed bid offered in response to a solicitation conducted pursuant to Chapters 2 (commencing with Section 10290), 3 (commencing with Section 12100), and 3.6 (commencing with Section 12125) of Part 2 of Division 2 of the Public Contract Code (PCC), then Contractor's bid is a firm offer to the State which is accepted by the issuance of this Contract and no further action is required by either party. b) If this Contract results from a solicitation other than described in paragraph a), above, Contractor's quotation or proposal is deemed a firm offer and this Contract document is the State's acceptance of that offer. c) If this Contract resulted from a joint bid, it shall be deemed one indivisible Contract. Each such joint Contractor will be jointly and severally liable for the performance of the entire Contract. The State assumes no responsibility or obligation for the division of orders or purchases among joint Contractors. 3. COMPLETE INTEGRATION: This Contract, including any documents incorporated herein by express reference, Is intended to be a complete integration and there are no prior or contemporaneous different or additional agreements pertaining to the subject matter of the Contract. 4. SEVERABILITY: The Contractor and the State agree that if any provision of this Contract is found to be illegal or unenforceable, such term or provision shall be deemed stricken and the remainder of the Contract shall remain in full force and effect. Either party having knowledge of such term or provision shall promptly inform the other of the presumed non -applicability of such provision. 5. INDEPENDENT CONTRACTOR: Contractor and the agents and employees of Contractor, in the performance of this Contract, shalt act in an independent capacity and not as officers or employees or agents of the Slate. 6. APPLICABLE LAW: This Contract shall be governed by and shall be interpreted in accordance with the laws of the State of California; venue of any action brought with regard to this Contract shall be in Sacramento County, Sacramento, California. The United Nations Convention on Contracts for the International Sale of Goods shall not apply to this Contract. 7. COMPLIANCE WITH STATUTES AND REGULATIONS: a) Contractor warrants and certifies that in the performance of this Contract, it will comply with aft applicable statutes, rules, regulations and orders of the United States and the State of California and agrees to indemnify the State against any loss, cost, damage or liability by reason of the Contractor's violation of this provision. b) The State will notify Contractor of any such claim in writing and tender the defense thereof within a reasonable time; and Page 2 of 11 EXHIBIT D GSPD• 4011T WESTERN STATES CONTRACTING ALLIANCE (WSCA) MULTIFUNTION COPIERS AND RELATED SOFTWARE KONICA MINOLTA BUSINESS SOLUTION U.S.A., INC. GENERAL PROVISIONS c) Contractor will have sole control of the defense of any action on such claim and all negotiations for its settlement or compromise; provided that (1) when substantial principles of government or public law are involved, when litigation might create precedent affecting future State operations or liability, or when involvement of the State is otherwise mandated by law, the State may participate in such action at its own expense with respect to attorneys' fees and costs (but not liability); (ii) the State will have the right to approve or disapprove any settlement or compromise, which approval will not unreasonably be withheld or delayed; and (iii) the State will reasonably cooperate in the defense and in any related settlement negotiations. d) If this Contract is in excess of $500,000, it is subject to they -requirements of the.. World Trade Organization (WTO) Government Procurement Agreement (GPA). e) To the extent that this contract falls within the scope of Government Code Section 11135, Contractor hereby agrees to respond to and resolveany complaint brought to its attention, regarding accessibility of its products or services. 8. CONTRACTOR'S POWER AND AUTHORITY: The Contractor warrants that it has full power and authority to grant the rights herein granted and will hold the State harmless from and against any loss, cost, liability, and expense (including reasonable attorney fees) arising out of any breach of this warranty. Further, Contractor avers that it will not enter into any arrangement with any third party which might abridge any rights of the State under this Contract. The State will notify Contractor of any such claim in writing and tender the defense thereof within a reasonable time; and Contractor will have sole control of the defense of any action on such claim and all negotiations for its settlement or compromise; provided that (i) when substantial principles of govemment or public law are involved, when litigation might create precedent affecting future State operations or liability, or when involvement of the State is otherwise mandated by law, the State may participate in such action at its own expense with respect to attorneys' fees and costs (but not liability); (ii) the State will have the right to approve or disapprove any settlement or compromise, which approval will not unreasonably be withheld or delayed; and (iii) the State will reasonably cooperate in the defense and in any related settlement negotiations. 9. ASSIGNMENT: This Contract shall not be assignable by the Contractor in whole or in part without the written consent of the State. For the purpose of this paragraph, State will not unreasonably prohibit Contractor from freely assigning its right to payment, provided that Contractor remains responsible for its obligations hereunder. 10. WAIVER OF RIGHTS: Any action or inaction by the State or the failure of the State on any occasion, to enforce any right or provision of the Contract, shall not be construed to be a waiver by the State of its rights hereunder and shall not prevent the State from enforcing such provision or right on any future occasion. The rights and remedies of the Stale herein are cumulative and are in addition to any other rights or remedies that the State may have at law or in equity. 11. ORDER OF PRECEDENCE: In the event of any inconsistency between the articles, attachments, specifications or provisions which constitute this Contract, the following order of precedence shall apply: Revision 9/30/2009 (GSPD-4011T based on April 12, 2007) 35 a) these General Provisions — Information Technology (In the instances provided herein where the paragraph begins: `Unless otherwise specified in the Statement of Work" provisions specified in the Statement of Work replacing these pargaraphs shall take precedence over the paragraph referenced in these General Provisions) ; b) contract form, i.e., Purchase Order STD 65, Standard Agreement STD 213, etc., and any amendments thereto; c) information technology special provisions; d) statement of work, including any specifications incorporated by reference herein; and e) all other attachments incorporated in the contract by reference. 12. PACKING AND SHIPMENT: a) All Goods are to be packed in suitable containers for protection in shipment and storage, and in accordance with applicable specifications. Each container of a multiple container shipment shall be -identified to: - -- - i) show the number of the container and the total number of containers in the shipment; and ii) the number of the container in which the packing sheet has been enclosed. b) All shipments by Contractor or its subcontractors must include packing sheets identifying: the State's Contract number; item number; quantity and unit of measure; part number and description of the Goods shipped; and appropriate evidence of inspection, if required. Goods for different Contracts shall be listed on separate packing sheets. c) Shipments must be made as specified in this Contract, as if may be amended, or otherwise directed in writing by the States' Transportation Management Unit within the Department of General Services, Procurement Division. 13. TRANSPORTATION COSTS AND OTHER FEES OR EXPENSES: No charge for delivery, drayage, express, parcel post, packing, cartage, insurance, license fees, permits, cost of bonds, or for any other purpose will be paid by the State unless expressly included and itemized in the Contract. a) Contractor must strictly follow Contract requirements regarding Free on Board (F.O.B.), freight terms and routing instructions. The State may permit use of an alternate carrier at no additional cost to the State with advance written authorization of the Buyer. b) If "prepay and add" is selected, supporting freight bills are required when over $50, unless an exact freight charge is approved by the Transportation Management Unit within the Department of General Services Procurement Division and a waiver is granted. c) On "F.O.B. Shipping Point" transactions, should any shipments under the Contract be received by the State in a damaged condition and any related freight loss and damage claims fled against the carrier or carriers be wholly or partially declined by the carrier or carriers with the inference that damage was the result of the acl of the shipper such as inadequate packaging or loading or seine inherent defect in the Equipment and/or material, Contractor, on request of the State, shall at Contractor's own expense assist the State in establishing carrier liability by supplying evidence that the Equipment and/or material was properly constructed, manufactured, packaged, and secured to withstand normal transportation conditions. 14. DELIVERY: Contractor shall strictly adhere to the delivery and completion schedules specified In this Contract. Time, if stated as a numberof days, shall mean calendar days unless otherwise specified. The quantities specified herein are the only quantities required. If Contractor delivers in excess of the quantities specified herein, the State shall not be required to make any payment for the excess Deliverables, and may return them to Contractor at Contractor's expense or utilize any other rights available to the State at law or in Page 3 of 11 EXHIBIT D GSPG-4011 f WESTERN STATES CONTRACTING ALLIANCE (WSCA) MULTIFUNTION COPIERS AND RELATED SOFTWARE KONICA MINOLTA BUSINESS SOLUTION U.S.A., INC. GENERAL PROVISIONS equity. 15. SUBSTITUTIONS: Substitution of Deliverables may not be tendered without advance written consent of the Buyer. Contractor shall not use any specification in lieu of those contained in the Contract without whiten consent of the Buyer. 16. INSPECTION, ACCEPTANCE AND REJECTION: Unless otherwise specified in the Statement of Work: a) Contractor and its subcontractors will provide and maintain a quality assurance system acceptable to the State covering Deliverables and services under this Contract and will tender to the Stale only those Deliverables that have been inspected and found to conform to this Contract's requirement& Contractor will keep records evidencing inspections and their result, and Will make these records ovailable to- the State during contract performance end for three years after final payment. Contractor shall permit the State to review procedures, practices, processes, and related documents to determine the acceptability of Contractor's quality assurance System or other similar business practices related to performance of the Contract. b) All Deliverables may be subject to inspection and test by the State or its authorized representatives. c) Contractor and its subcontractors shall provide all reasonable tacitities for the safety and convenience of inspectors at no additional cost to the State. Contractor shall furnish to inspectors all information and data as may be reasonably required to perform their inspection. d) All Deliverables may be subject to final inspection, test and acceptance by the State at destination, notwithstanding any payment or inspection at source. e) The State shall give written notice of rejection of Deliverables delivered or services performed hereunder within a reasonable time after receipt of such Deliverables or performance of such services. Such notice of rejection will state the respects in which the Deliverables do not substantially conform to their specifications. If the State does not provide such notice of rejection within thirty (30) days of delivery, such Deliverables and services will be deemed to have been accepted. Acceptance by the State will be final and irreversible, except as it relates to latent defects, fraud, and gross mistakes amounting to fraud. Acceptance shall not be construed to waive any warranty rights that the State might have at law or by express reservation in this Contract with respect to any nonconformity. 17. SAMPLES: a) Samples of items may be required by the State for inspection and specification testing and must be furnished free of expense to the State, The samples furnished must be identical in all respects to the products bid and/or specified in the Contract. b) Samples, if not destroyed by tests, may, upon request made at the time the sample is furnished, be returned at Contractor's expense. 18. WARRANTY: a) Unless otherwise specified in the Statement of Work, the warranties in this subsection a) begin upon delivery of the goods or services In question and end one (1) year thereafter. Contractor warrants that (i) Deliverables and services furnished hereunder will substantially conform to the requirements of this Contract (including without limitation all descriptions, specifications, and drawings identified in the Statement of Work), and (ii) the Deliverables will be —free from material defects in materials and workmanship. Where the parties have agreed to design specifications (such as a Revision 9/30/2009 (GSPD-4011T based on April 12, 2007) 36 Detailed Design Document) and incorporated the same or equivalent in the Statement of Work directly or by reference, Contractor wit warrant that its Deliverables provide all material functionality required thereby. In addition to the other warranties set forth herein, where the Contract calls for delivery of Commercial Software, Contractor warrants that such Software will perform in accordance with its license and accompanying Documentation. The State's approval of designs or specifications furnished by Contractor shall not relieve the Contractor of its obligations under this warranty. Contractor warrants that Deliverables furnished hereunder (i) will be free, at the time of delivery, of harmful code (i.e. computer viruses, worms, trap doors, time bombs, disabling code, or any similar malicious mechanism designed to interfere with the intended operation of, or cause damage to, computers, data, or Software); and (ii) will not infringe or violate any U.S.. Intellectual Property Right. Without limiting the generality of the foregoing, it the State believes that harmful code may be present in any Commercial Software delivered hereunder, Contractor will, upon the State's request, provide a master copy of the Software for comparison and correction. Unless otherwise specified in the Statement of Work: (i) Contractor does not warrant that any Software provided hereunder is error -tree or that it will run without immaterial interruption. (ii) Contractor does not warrant and will have no responsibility for a claim to the extent that it arises directly from (A) a modification made by the State;' unless such modification is approved or directed by Contractor, (B) use of Software in combination with or on products other than as specified by Contractor, or (C) misuse by the State. (iii) Where Contractor resells Hardware or Software it purchased from a third party, and such third party offers additional or more advantageous warranties than those set forth herein, Contractor will pass through any such warranties to the State and will reasonably cooperate in enforcing them. Such warranty pass - through will be supplemental to, and not relieve Contractor from, Contractor's warranty obligations set forth above. All warranties, including special warranties specified elsewhere herein, shall inure to the State, its successors, assigns, customer agencies, and governmental users of the Deliverables or services. e) Except as may be specifically provided in the Statement of Work ur elsewhere in this Contract, for any breach of the warranties provided in this Section, the State's exclusive remedy and Contractor's sole obligation will be limited to: (i) re -performance, repair, or replacement of the nonconforming Deliverable (including without limitation an infringing Deliverable) or service; or (ii) should the State in its sole discretion consent, refund of all amounts paid by the State for the nonconforming Deliverable or service and payment to the State of any additional amounts necessary to equal the State's Cost to Cover. 'Cost to Cover" means the cost, properly mitigated, of procuring Deliverables or services of equivalent capability, function, and performance. The payment obligation in subsection (e)(ii) above will not exceed the limits on Contractor's liability set forth in the Section entitled 'Limitation of Liability." f) EXCEPT FOR THE EXPRESS WARRANTIES SPECIFIED IN THIS SECTION, CONTRACTOR MAKES NO Page 4 of 11 EXHIBIT D GSPD-401(T WESTERN STATES CONTRACTING ALLIANCE (WSCA) MULTIFUNTION COPIERS AND RELATED SOFTWARE KONICA MINOLTA BUSINESS SOLUTION U.S.A., INC. GENERAL PROVISIONS WARRANTIES EITHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. 19. SAFETY AND ACCIDENT PREVENTION: In performing work under this Contract on State premises, Contractor shall conform to any specific safety requirements contained in the Contract or as required by law or regulation. Contractor shall take any additional precautions as the State may reasonably require for safety and accident prevention purposes. Any violation of such rules and requirements, unless promptly corrected, shall be grounds for termination of this Contract in accordance with the default provisions hereof. 20. INSURANCE: When performing work on property in the care, custody or controf of the State, Contractor shall maintain all commercial general liability insurance, workers' compensation insurance and any other insurance the State deems appropriate under the Contract. Contractor shall furnish an insurance certificate evidencing required insurance coverage acceptable 10 the State_ Upon request by the Buyer, the Contractor may be required to have the State shown as an "additional insured" on selected policies. 21.TERMINATION FOR NON -APPROPRIATION OF FUNDS: a) If the term of this Contract extends into fiscal years subsequent to that in which it is approved, such continuation of the Contract is contingent on the appropriation of funds for such purpose by the Legislature. If funds to effect such continued payment are not appropriated, Contractor agrees to take back any affected Deliverables furnished under this Contract terminate any services supplied to the State under this Contract, and relieve the State of any further obligation therefore. b) STATE AGREES THAT IF PARAGRAPH a) ABOVE IS INVOKED, DELIVERABLES SHALL BE RETURNED TO THE CONTRACTOR IN SUBSTANTIALLY THE SAME CONDITION IN WHICH DELIVERED TO THE STATE, SUBJECT TO NORMAL WEAR AND TEAR. STATE FURTHER AGREES TO PAY FOR PACKING, CRATING, TRANSPORTATION TO CONTRACTOR'S NEAREST FACILITY AND FOR REIMBURSEMENT TO THE CONTRACTOR FOR EXPENSES INCURRED FOR THEIR ASSISTANCE IN SUCH PACKING AND CRATING. 22. TERMINATION FOR THE CONVENIENCE OF THE STATE: a) The State may terminate performance of work under this Contract for its convenience in whole or, from time to time, in part, If the Department of General Services, Deputy Director Procurement Division, or designee, determines that a termination is in the State's interest. The Department of General Services, Deputy Director, Procurement Division, or designee, shall terminate by delivering to the Contractor a Notice of Termination specifying the extent of termination and the effective date thereof. b) After receipt of a Notice of Termination, and except as directed by the State, the Contractor shall immediately proceed with the following obligations, as applicable, regardless of any delay in determining or adjusting any amounts due under this clause. The Contractor shall: (i) Stop work as specified in the Notice of Termination. (ii) Place no further subcontracts for materials, services, or facilities, except as necessary to complete the continuing portion of the Contract. (iii) Terminate all subcontracts to the extent they relate to the work terminated. (iv) Settle all outstanding liabilities and termination settlement proposals arising from the termination of Revision 9/30/2009 (GSPD-401IT based on April 12, 2007) 37 subcontracts; Unless otherwise set forth in the Statement of Work, if the Contractor and the State fail to agree on the amount to be paid because of the termination for convenience, the State will pay the Contractor the following amounts; provided that in no event will total payments exceed the amount payable to the Contractor if the Contract had been fully performed: The Contract price for Deliverables or services accepted by the State and not previously paid for, adjusted for any savings on freight and other charges; and The total of: A) The reasonable costs incurred in the performance of the work terminated, including initial costs and preparatory expenses allocable thereto, but excluding any cost attributable to Deliverables or services paid or to be paid; B) The reasonable cost of settling and paying termination settlement proposals under terminated subcontracts that are properly chargeable to the terminated portion of the Contract; and C) Reasonable storage, transportation, demobilization, unamortized overhead and capital costs, and other costs reasonably incurred by the Contractor in winding down and terminating its work. The Contractor will use generally accepted accounting principles, or accounting principles otherwise agreed to in writing by the parties, and sound business practices in determining all costs claimed, agreed to, or determined' under this clause. 23. TERMINATION FOR DEFAULT: a) The State may, subject to the clause titled 'Force Majeure" and to sub -section d) below, by written notice of default to the Contractor, terminate this Contract in whole or in part if the Contractor fails to: i) Deliver the Deliverables or perform the services within the time specified in the Contract or any amendment thereto; ii) Make progress, so that the lack of progress endangers performance of this Contract; or iii) Perform any of the other provisions of this Contract. b) The State's right to terminate this Contract under sub- section a) above, may be exercised if the failure constitutes a material breach of this Contract and if the Contractor does not cure such failure within the time frame stated in the State's cure notice, which in no event will be less than fifteen (15) days, unless the Statement of Work calls for a shorter period. c) If the State terminates this Contract in whole or in part pursuant to this Section, 11 may acquire, under terms and in the manner the Buyer considers appropriate, Deliverables or services similar to those terminated, and the Contractor will be liable to the State for any excess costs for those Deliverables and services, including without limitation costs third party vendors charge for Manufacturing Materials (but subject to the clause entitled "Limitation of Liability"). However, the Contractor shall continue the work not terminated. d) If the Contract is terminated for default, the State may require the Contractor to transfer title, or in the case of licensed Software, license, and deliver to the State, as directed by the Buyer, arty: (i) completed Deliverables,— (ii) partially completed Deliverables, and, Page 5 of 11 EXHIBIT D GSPD-4(1IT WESTERN STATES CONTRACTING ALLIANCE (WSCA) MULTIFUNTION COPIERS AND RELATED SOFTWARE KONICA MINOLTA BUSINESS SOLUTION U.S.A., INC. GENERAL PROVISIONS (iii) subject to —provisions of sub -section e) below, Manufacturing Materials related to the terminated portion of this Contract. Nothing in this sub -section d) will be construed to grant the State rights to Deliverables that it would not have received had this Contract been fully performed. Upon direction of the Buyer, the Contractor shall also protect and preserve property in its possession in which the State has an interest. e) The State shall pay Contract price for completed Deliverables delivered and accepted. Unless the Statement of Work calls for different procedures or requires no -charge delivery of materials, the Contractor and Buyer shall attempt to agree on the amount of payment for Manufacturing Materials and other materials delivered and accepted by the State for the protection and preservation of the property;provided that where the Contractor has State for any such materials, no additional charge will apply . Failure to agree will constitute a dispute under the Disputes clause. The State may withhold from these amounts any sum it determines to be necessary to protect the State against loss because of outstanding liens or claims of former lien holders. f) If, after termination, it is determined by a final ruling in accordance with the Disputes Clause that the Contractor was not in default, the rights and obligations of the parties :,hall he the same as if the termination had been issued for the convenience of the State. g) The rights and remedies of the State in this clause are in addition to any other rights and remedies provided by law or under this Contract, and are subject to the clause titled "Limitation of Liability." 24. FORCEMAJEURE Except for defaults of subcontractors at any tier, the Contractor shall not be liable for any excess costs if the failure to perform the Contract arises from causes beyond the control and without the fault or negligence of the Contractor. Examples of such causes include, but are not limited to: a) Acts of God or of the public enemy, and b) Acts of the federal or State government in either its sovereign or contractual capacity. If the failure to perform is caused by the default of a subcontractor at any tier, and if the cause of the default is beyond the control of both the Contractor and subcontractor, and without the fault or negligence of either, the Contractor shall not be liable for any excess costs for failure to perform. 25. RIGHTS AND REMEDIES OF STATE FOR DEFAULT: a) In the event any Deliverables furnished or services provided by the Contractor in the performance of the Contract should fail to conform to the requirements herein, or to the sample submitted by the Contractor, the State may reject the same, and it shall become the duty of the Contractor to reclaim and remove the item promptly or to correct the performance of services, without expense to the State, and immediately replace all such rejected items with others conforming to the Contract. b) In addition to any other rights and remedies the State may have, the State may require Contractor, at Contractor's expense, to ship Deliverables via air freight or expedited routing to avoid or minimize actual or potential delay if the delay is the fault of the Contractor. c) In the event of the termination of the Contract, either in whole or in part, by reason of default or breach by the Contractor, any loss Revision 9/30/2009 (GSPD-401IT based on April 12, 2007) 38 or damage sustained by the State in procuring any items which the Contractor agreed to supply shall be borne and paid fur by the Contractor (but subject to the clause entitled "Limitation of Liability). d) The State reserves the right to offset the reasonable cost of all damages caused to the Stale against any outstanding invoices or amounts owed to Contractor or to make a claim against the Contractor therefore. 26. LIMITATION OF LIABILITY: a) Contractor's liability for damages to the Slate for any cause whatsoever, and regardless of the form of action, whether in Contract or in tort, shalt be limited to two times the Purchase Price. For purposes of this sub -section a), "Purchase Price" will mean the aggregate Contract price; except that, with respect to a Contract under which multiple purchase orders will be issued (e.g., a Master Agreement or Multiple Award Schedule contract), "Purchase Price" will mean the total price of the purchase order for the Deliverable(s) or service(s) that gave rise to the loss, such that Contractor will have a separate limitation of liability for each purchase order. b) The foregoing limitation of liability shall not apply (i) to liability under the General Provisions entitled "Patent, Copyright, and Trade Secret Protection' or to any other liability (including without limitation indemnification obligations) for infringement of third party intellectual property rights; (ii) to claims covered by any speck provision herein calling for liquidated damages; (iii) td claims arising under provisions herein calling for indemnification for third party claims against the State for bodily injury to persons or damage to real or tangible personal property caused by Contractor's negligence or willful misconduct; or (iv) to —costs or attorney's fees that the State becomes entitled to recover as a prevailing party in -any action. c) The States liability for damages for any cause whatsoever, and regardless of the form of action, whether in Contract or in tort, shall be limited to the Purchase Price, as that term is defined in subsection a) above. Nothing herein shall be construed to waive or limit the State's sovereign immunity or any other immunity from suit provided by law. d) In no event will either the Contractor or the State be liable for consequential, incidental, indirect, special, or punitive damages, even if notification has been given as to the possibility of such damages, except (I) to the extent that Contractor's liability for such damages is specifically set forth in the Statement of Work or (ii) to the extent that Contractor's liability for such damages arises out of sub- section b)(i), b)(ii), or b)(iv) above. 27. CONTRACTOR'S LIABILITY FOR INJURY TO PERSONS OR DAMAGE TO PROPERTY: a) The Contractor shall be liable for damages arising out of injury to the person and/or damage to the property of the State, employees of the State, persons designated by the State for training, or any other person(s) other than agents or employees of the Contractor, designated by the State for any purpose, prior to, during, or subsequent to delivery, installation, acceptance, and use of the Deliverables either at the Contractor's site or at the State's place of business, provided that the injury or damage was caused by the fault or negligence of the Contractor. b) Contractor shall not be fable for damages arising out of or caused by an alteration or an Attachment not made or installed by the Page 6 of 11 EXHIBIT D GSPD-401 IT WESTERN STATES CONTRACTING ALLIANCE (WSCA) MULTIFUNTION COPIERS AND RELATED SOFTWARE KONICA MINOLTA BUSINESS SOLUTION U.S.A., INC. GENERAL PROVISIONS Contractor, or for damage to alterations or Attachments that may result from the normal operation and maintenance of the Deliverables provided by the Contractor during the Contract. 28. INDEMNIFICATION: Contractor agrees to indemnify, defend and save harmless the State, its officers, agents and employees from any and all third party claims, costs (including without limitation reasonable attorneys" fees), and losses due to the injury or death of any individual, or the loss or damage to any real or tangible personal property, resulting from the willful misconduct or negligent acts or omissions of Contractor or any of its agents, subcontractors, employees, suppliers, laborers, or any other person, firm, or corporation furnishing or supplying work, services, materials, or supplies in connection with the performance of this Contract. Such defense and payment will be conditional upon the following: a) The State will notify ..Contractor of any .such claim in writing and tender the defense thereof within a reasonable time; and b) Contractor will have sole control of the defense of any action on such claim and all negotiations for its settlement or compromise; provided that (i) when substantial principles of government or public law are involved, when litigation might create precedent affecting future State operations or liability, or when involvement of the State is otherwise mandated by law, the State may participate in such action at its own expense with respect to attorneys' fees and costs (but not liability); (ii) the State will have the right to approve or disapprove any settlement or compromise, which approval will not unreasonably be withheld or delayed; and (iii) the State will reasonably cooperate in the defense and in any related settlement negotiations. 29. INVOICES: Unless otherwise specified, invoices shall be sent to the address set forth herein. Invoices shall be submitted in triplicate and shall include the Contract number; release order number (if applicable); item number; unit price, extended item price and invoice total amount. State sales tax and/or use tax shall be itemized separately and added to each invoice as applicable. 30. REQUIRED PAYMENT DATE Payment will be made in accordance with the provisions of the California Prompt Payment Act, Government Code Section 927 et. seq. Unless expressly exempted by statute, the Act requires State agencies to pay properly submitted, undisputed invoices not more than 45 days after (i) the date of acceptance of Deliverables or performance of services; or (ii) receipt of an undisputed invoice, whichever is later_ 31. TAXES: Unless otherwise required by law, the State of California is exempt from Federal excise taxes. The State will only pay for any State or local sales or use taxes on the services rendered or Goods supplied to the State pursuant to this Contract. 32. NEWLY MANUFACTURED GOODS: All Goods furnished under this Contract shall be newly manufactured Goods; used or reconditioned Goods are prohibited, unless otherwise specified. 33. CONTRACT MODIFICATION: No amendment or variation of the terms of this Contract shall be valid unless made in writing, signed by the parties and approved as required. No oral understanding or agreement not incorporated in the Contract is binding on any of the parties. 34. CONFIDENTIALITY OF DATA: All financial, statistical, personal, technical and other data and information relating to the State's operation which are designated confidential by the State and made Revision 9/30/2009 (GSPD-4011T based on April 12, 2007) 39 available to the Contractor in order to carry out this Contract, or which become available to the Contractor in carrying out this Contract, shall be protected by the Contractor from unauthorized use and disclosure through the observance of the same or more effective procedural requirements as are applicable to the State. The identification of all such confidential data and information as well as the State's procedural requirements for protection of such data and information from unauthorized use and disclosure shall be provided by the State in writing to the Contractor. If the methods and procedures employed by the Contractor for the protection of the Contractor's data and information are deemed by the Slate to be adequate for the protection of the State's confidential information, such methods and procedures may be used, with the written consent of the State, to carry out the intent of this paragraph, The Contractor shall not be required under the provisions of this paragraph to keep confidential any data or information which is or becomes publicly available, is already rightfully in the Contractor's possession, is independently developed by the Contractor outside the scope of this Contract, or is rightfully obtained from third parties. 35. NEWS RELEASES: Unless otherwise exempted, news releases pertaining to this Contract shall not be made without prior written approval of the Department of General Services. 36. DOCUMENTATION a) The Contractor agrees to provide to the State, at no charge, a number of all nonproprietary manuals and other printed materials, as described within the Statement of Work, and updated versions thereof, which are necessary or useful to' the State in its use of the Equipment or Software provided hereunder. The Contractor agrees to provide additional Documentation at prices not in excess of charges made by the Contractor to its other customers for similar Documentation. b) If the Contractor is unable to perform maintenance or the State desires to perform its own maintenance on Equipment purchased under this Contract then upon written notice by the State the Contractor will provide at Contractor's then current rates and fees adequate and reasonable assistance including relevant Documentation to allow the State to maintain the Equipment based on Contractor's methodology. The Contractor agrees that the State may reproduce such Documentation for its own use in maintaining the Equipment. If the Contractor is unable to perform maintenance, the Contractor agrees to license any other Contractor that the State may have hired to maintain the Equipment to use the above noted Documentation. The State agrees to include the Contractor's copyright notice on any such Documentation reproduced, in accordance with copyright instructions to be provided by the Contractor. 37. RIGHTS IN WORK PRODUCT: a) Alt inventions, discoveries, intellectual property, technical communications and records originated or prepared by the Contractor pursuant to this Contract including papers, reports, charts, computer programs, and other Documentation or improvements thereto, and including Contractor's administrative communications and records relating to this Contract (collectively, the "Work Product"), shall be Contractor's exclusive property. The provisions of this sub -section a) may be revised in a Statement of Work. b) Software and other materials developed or otherwise obtained by or for Contractor or its affiliates independently of this Contract or applicable purchase order ("Pre -Existing Materials") do not constitute Work Product. If Contractor Page 7 of 11 EXHIBIT D GSPD-40 IT WESTERN STATES CONTRACTING ALLIANCE (WSCA) MULTIFUNTION COPIERS AND RELATED SOFTWARE KONICA MINOLTA BUSINESS SOLUTION U.S.A., INC. GENERAL PROVISIONS creates derivative works of Pre -Existing Materials, the elements of such derivative works created pursuant to this Contract constitute Work Product, but other elements do not. Nothing in this Section 37 will be construed to interfere with Contractor's or its affiliates' ownership of Pre - Existing Materials. The State will have Government Purpose Rights to the Work Product as Deliverable or delivered to the State hereunder. "Government Purpose Rights" are the unlimited, irrevocable, worldwide, perpetual, royalty -free, non-exclusive rights and licenses to use, modify, reproduce, perform, release, display, create derivative works from, and disclose the Work Product. "Government Purpose Rights" also include the right to release or disclose the Work Product outside the State for any State government purpose and to authorize recipients to use, modify, reproduce, perform, release, display, create derivative :works ore, and disclose the Work Product for any State government purpose. Such recipients of the Work Product may include, without limitation, State Contractors, California local governments, the U.S. federal government, and the State and local governments of other states. "Government Purpose Rights" do not include any rights to use, modify, ,eproduce, perform, release, display, create derivative works from, or disclose the Work Product for any commercial purpose. The ideas, concepts, know-how, or techniques relating to data processing, developed during the course of this Contract by the Contractor or jointly by the Contractor and the State may be used by either party without obligation of notice or accounting. This Contract shall not preclude the Contractor from developing materials outside this Contract that are competitive, irrespective of their similarity to materials which might be delivered to the State pursuant to this Contract. 38. PROTECTION OF PROPRIETARY SOFTWARE AND OTHER PROPRIETARY DATA a) State agrees that all material appropriately marked or identified in writing as proprietary, and furnished hereunder are provided for State's exclusive use for the purposes of this Contract only. All such proprietary data shall remain the property of the Contractor. State agrees to take all reasonable steps to insure that such proprietary data are not disclosed to others, without prior written consent of the Contractor, subject to the California Public Records Act. b) The State will insure, prior to disposing of any media, that any licensed materials contained thereon have been erased or otherwise destroyed. c) The Slate agrees that it will take appropriate action by instruction, agreement or otherwise with its employees or other persons permitted access 10 licensed software and other proprietary data to satisfy its obligations under this Contract with respect to use, copying, modification, protection and security of proprietary software and other proprietary data.. 39. PATENT, COPYRIGHT AND TRADE SECRET INDEMNITY: a) Contractor will indemnify, defend, and save harmless the Slate, its officers, agents, and employees, From any and all third party claims, costs (including without limitation reasonable attorneys' fees), and losses for infringement or violation of any U.S. Intellectual Property Right by any product or service provided hereunder. With respect to claims arising from computer Hardware or Software Revision 9/30/2009 (GSPD-40117 based on April 12, 2007) 40 manufactured by a third party and sold by Contractor as a reseller, Contractor will pass through to the State such indemnity rights as it receives from such third party ('Third Party Obligation") and will cooperate in enforcing them; provided that if the third party manufacturer falls 10 honor the Third Party Obligation, Contractor will provide the State with indemnity protection equal to that called for by the Third Party Obligation, but in no event greater than that called for in the first sentence of this Section 39a). The provisions of the preceding sentence apply only to third party computer Hardware or Software sold as a distinct unit and accepted by the State. Unless a Third Party Obligation provides otherwise, the defense and payment obligations set forth in this Section 39a) will be conditional upon the following: The State will notify Contractor of any such claim in writing and tender the defense thereof within a reasonable time; and Contractor will have sole control of the defense of any action on such claim and all negotiations for its settlement or compromise; provided that (i) when substantial principles of government or public law are involved, when litigation might create precedent affecting future State operations or liability, or when involvement of the State is otherwise mandated by law, the State may participate in such action at its own expense with respect to attorneys' fees and costs (but not liability); (ii) the State will have the right to approve or disapprove any settlement or compromise, which approval will not unreasonably be withheld or delayed; and (tit) the State will reasonably cooperate in the defense and In any related settlement negotiations. b) Contractor may be required to furnish a bond to the State against any and all loss, damage, costs, expenses, claims and liability for patent, copyright and trade secret infringement. c) Should the Deliverables or Software, or the operation thereof, become, or in the Contractors opinion are likely to become, the subject of a claim of infringement or violation of a U.S. Intellectual Property Right, the State shall permit the Contractor at its option and expense either to procure for the State the right to continue using the Deliverables or Software, or to replace or modify the same so that they become non -infringing. If none of these options can reasonably be taken, or if the use of such Deliverables cr Software by the State shall be prevented by injunction, the Contractor agrees to take back such Deliverables or Software and make every reasonable effort to assist the State in procuring substitute Deliverables or Software. If, in the sole opinion of the State, the return of such infringing Deliverables or Software makes the retention of other Deliverables or Software acquired from the Contractor under this Contract impractical, the State shall then have the option of terminating such Contracts, or applicable portions thereof, without penalty or termination charge. The Contractor agrees to take back such Deliverables or Software and refund any sums the State has paid Contractor less any reasonable amount for use or damage. d) The Contractor shall have no liability to the State under any provision of this clause with respect to any claim of patent, copyright or trade secret infringement which is based upon: (i) The combination or utilization of Deliverables furnished hereunder with Equipment or devices not made or furnished by the Contractor; or, (ii) The operation of Equipment furnished by the Contractor under the control of any Operating Software other than, or in addition to, the current version of Contractor -supplied Operating Software; or (iii) The modification by the State of the Equipment furnished Page 8of11 EXHIBIT D GSPD-4011T WESTERN STATES CONTRACTING ALLIANCE (WSCA) MULTIFUNTION COPIERS AND RELATED SOFTWARE KONICA MINOLTA BUSINESS SOLUTION U.S.A., INC. GENERAL PROVISIONS hereunder or of the Software; or (iv) The combination or utilization of Software furnished hereunder with non -contractor supplied Software. e) Contractor certifies that it has appropriate systems and controls in place to ensure that State funds will riot be used in the performance of this Contract for the acquisition, operation or maintenance of computer Software in violation of copyright laws. 40. EXAMINATION AND AUDIT: Contractor agrees that the Stale, or its designated representative shaft have the right to review and copy any records and supporting Documentation pertaining to performance of this Contract. Contractor agrees to maintain such records for possible audit for a minimum of three (3) years after final payment, unless a longer period of records retention is stipulated. Contractor agrees to allow the auditor(s) access to such records during normal business hours and to allow interviews of any employees or others who might reasonably have information related to such records. Further, Contractor agrees to include a similar right of the State to audit records and interview staff in any subcontract related 10 performance of this Contract. 41. DISPUTES: — a) The parties shall deal in good faith and attempt to resolve potential disputes informally. if the dispute persists, Contractor shall submit to the Department Director or designee a written demand for a final decision regarding the disposition of any dispute between the parties arising under, related to or involving this Contract, unless the State, on its own initiative, has already rendered such a final decision. Contractor's written demand shall be fully supported by factual information, and if such demand involves a cost adjustment to the Contract, Contractor shall Include with the demand a written statement signed by an authorized person indicating that the demand is made in good faith, that the supporting data are accurate and complete and that the amount requested accurately reflects the Contract adjustment for which Contractor believes the Stale is liable. If the Contractor is not satisfied with the decision of the Department Director or designee, the Contractor may appeal the decision to the Department of General Services, Deputy Director, Procurement Division. In the event that this Contract is for Information Technology Goods and/or services, the decision may be appealed to an Executive Committee of State and Contractor personnel. b) Pending the final resolution of any dispute arising under, related to or involving this Contract, Contractor agrees to diligently proceed with the performance of this Contract, including the delivery of Goods or providing of services in accordance with the State's instructions. Contractor's failure to diligently proceed in accordance with the State's instructions shall be considered a material breach of this Contract. c) Any final decision of the State shall be expressly identified as such, shall be in writing, and shall be signed by the Department Director or designee or Deputy Director, Procurement Division if an appeal was made. If the State fails to render a final decision within 90 days after receipt of Contractor's demand, it shall be deemed a final decision adverse to Contractor's contentions. The State's final decision shall be conclusive artd binding regarding the dispute unless Contractor commences an action in a court of competent jurisdiction to contest such decision within 90 days following the date of the final decision or one (1) year following the accrual of the cause of action, whichever is later. 42. STOP WORK: a) The State may, at any time, by written Stop Work Order to the Contractor, require the Contractor to stop all, or any part, of the work called For by this Contract for a period up to 90 days after Revision 9/30/2009 (GSPD-4011T based on Apri! 12, 2007) 41 the Stop Work Order is delivered to the Contractor, and for any further period to which the parties may agree_ The Stop Work Order shall be specifically identified as such and shall indicate it is issued under this clause. Upon receipt of the Stop Work Order, the Contractor shall immediately comply with its terms and take all reasonable steps to minimize the incurrence of costs allocable to the work covered by the Stop Work Order during the period of work stoppage. Within a period of 90 days after a Stop Work Order is delivered to the Contractor, or within any extension of that period to which the parties shall have agreed, the State shall either: (i) Cancel the Stop Work Order; or (ii) Terminate the work covered by the Stop Work Order as provided for in the termination for default or the termination for convenience clause of this Contract. b) If a Stop Work Order issued under this clause is canceled or the period of the Stop Work Order or any extensibn thereof expires, the Contractor shall resume work. The State shall make an equitable adjustment in the delivery schedule, the Contract price, or both, and the Contract shall be modified, in writing, accordingly, if: (i) The Stop Work Order results in an increase in the time required for, or in the Contractors cost properly allocable to the performance of any part of this Contract; and (n) The Contractor asserts its right to an equitable adjustment within 30 days atter the end of the period of work stoppage; provided, that if the State decides the facts justify the action, the State may receive and act upon a proposal submitted at any time before final payment under this Contract.• c) If a Stop Work Order is not canceled and the work covered by the Stop Work Order is terminated in accordance with the provision entitled Termination for the Convenience of the State, the State shall allow reasonable costs resulting from the Stop Work Order in arriving at the termination settlement. d) The State shall not be liable to the Contractor for loss of profits because of a Stop Work Order issued under this clause. 43. FOLLOW-ON CONTRACTS: if the Contractor or its affiliates provides Technical Consulting and Direction (as defined below), the Contractor and its affiliates: (i) will not be awarded a subsequent Contract to supply the service or system, or any significant component thereof, that is used for or in connection with any subject of such Technical Consulting and Direction; and (ii) will not act as consultant to any person or entity that does receive a Contract described in sub -section (i). This prohibition will continue for one (1) year after termination of this Contract or completion of the Technical Consulting and Direction, whichever comes later. "Technical Consulting and Direction" means services for which the Contractor received compensation from the State and includes: (i) development of or assistance in the development of work statements, specifications, solicitations, or feasibility studies; (ii) development or design of test requirements; (iii) evaluation of test data; (iv) direction of or evaluation of another Contractor; (v) provision of formal recommendations regarding the acquisition of Information Technology products or services; or (vi) provisions of formal recommendations regarding any Page 9of11 EXHIBIT D GSPD-4011T WESTERN STATES CONTRACTING ALLIANCE (WSCA) MULTIFUNTION COPIERS AND RELATED SOFTWARE KONICA MINOLTA BUSINESS SOLUTION U.S.A., INC. GENERAL PROVISIONS of the above. For purposes of this Section, "affiliates" are employees, directors, partners, joint venture participants, parent corporations, subsidiaries, or any other entity controlled by, controlling, or under common control with the Contractor. Control exists when an entity owns or directs more than fifty percent (50%) of the outstanding shares or securities representing the right to vote for the election of directors or other managing authority. To the extent permissible by law, the Director of the Department of • General Services, or designee, may waive the restrictions set forth in this Section by written notice to the Contractor if the Director determines their application would not be in the State's best interest. Except as prohibited by law, the restrictions of this Section will not apply: to follow-on advice given by vendors of commercial off -the -shelf products, including Software and Hardware, on the operation, integration, repair, or maintenance of such products after sale; or where the State has entered into a master agreement for Software or services and the scope of work at the time of Contract execution expressly calls for future recommendations among the Contractor's own products. The restrictions set forth in this Section are in addition to conflict of interest restrictions imposed on public Contractors by California law ("Conflict Laws"). In the event of any inconsistency, such Conflict Laws override the provisions of this Section, even if enacted after execution of this Contract,. 44. PRIORITY HIRING CONSIDERATIONS: If this Contract includes services in excess of $200,000, the Contractor shall give priority consideration in filling vacancies in positions funded by the Contract to qualified recipients of aid under Welfare and Institutions Code Section 11200 in accordance with PCC Section 10353. 45. COVENANT AGAINST GRATUITIES: The Contractor warrants that no gratuities (in the form of entertainment, gifts, or otherwise) were offered or given by the Contractor, or any agent or representative of the Contractor, to any officer or employee of the State with a view toward securing the Contract or securing favorable treatment with respect to any determinations concerning the performance of the Contract. For breach or violation of this warranty, the State shall have the right to terminate the Contract, either in whole or in part, and any loss or damage sustained by the State in procuring on the open market any items which Contractor agreed to supply shall be borne and paid for by the Contractor. The rights and remedies of the State provided in this clause shall riot be exclusive and are in addition to any other rights and remedies provided by law or in equity. 46. NONDISCRIMINATION CLAUSE: a) During the performance of this Contract, Contractor and its subcontractors shall not unlawfully discriminate, harass or allow harassment, against any employee or applicant for employment because of sex, sexual orientation, race, color, ancestry, religious creed, national origin, disability (including HIV and AIDS), medical condition (cancer), age, marital status, and denial of family care leave. Contractor and subcontractors shall insure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. Contractor and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code, Section 12990 et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7285.0 et seq.). The applicable regulations of the Fair Revision 9/30/2009 (GSPD-4011T based on April 12, 2007) 42 Employment and Housing Commission implementing Governrent Code Section 12990 (a-f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations are incorporated into this Contract by reference and made a part hereof as if set forth in full. Contractor and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. b) The Contractor shalt include the nondiscrimination and compliance provisions of this clause in at subcontracts to perform work under the Contract. 47. NATIONAL LABOR RELATIONS BOARD CERTIFICATION: Contractor swears under penalty of perjury that no more than one final, unappealable finding of contempt of court by a federal court has been issued against the Contractor within the immediately preceding two-year period because of the Contractor's failure to comply with an order of the National Labor Relations Board. This provision is required by, and shall be construed in accordance with, PCC Section 10296. 48. ASSIGNMENT OF ANTITRUST ACTIONS: Pursuant to Government Code Sections 4552, 4553, and 4554, the following provisions are incorporated herein: a) In submitting a bid to the State, the supplier offers and agrees that if the bid is accepted, it will assign to the State 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. 15) or under the Cartwright Act (Chapter 2, commencing with Section 16700, of Part 2 of Division 7 of the Business and Professions Code), arising froii purchases of Goods, material or other items, or services by the supplier for sale to the State pursuant to the solicitation. Such assignment shall be made and become effective at the time the State tenders final payment to the supplier. b) If the State receives, either through judgment or settlement, a monetary recovery for a cause of action assigned under this chapter, the assignor shall be entitled to receive reimbursement for actual legal costs incurred and may, upon demand, recover from the State any portion of the recovery, including treble damages, attributable to overcharges that were paid by the assignor but were not paid by the State as part of the bid price, less the expenses incurred in obtaining that portion of the recovery. c) Upon demand in writing by the assignor, the assignee shall, within one year from such demand, reassign the cause of action assigned under this part if the assignor has been or may have been injured by the violation of law for which the cause of action arose and (i) the assignee has not been injured thereby, or (ii) the assignee declines to file a court action for the cause of action. 49. DRUG -FREE WORKPLACE CERTIFICATION: The Contractor certifies under penalty of perjury under the laws of the State of California that the Contractor will comply with the requirements of the Drug -Free Workplace Act of 1990 (Government Code Section 8350 et seq.) and will provide a drug -free workplace by taking the following actions: a) Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations, as required by Government Code Section 8355(a). b) Establish a Drug -Free Awareness Program as required by Government Code Section 8355(b) to inform employees about all of the following: (i) the dangers of drug abuse in the workplace; Page 10 of 11 EXHIBIT D GSPD-4011T WESTERN STATES CONTRACTING ALLIANCE (WSCA) MULTIFUNTION COPIERS AND RELATED SOFTWARE KONICA MINOLTA BUSINESS SOLUTION U.S.A., INC. GENERAL PROVISIONS (ii) the person's or organization's policy of maintaining a drug - free workplace; (iii) any available counseling, rehabilitation and employee assistance programs; and, (iv) penalties that may be imposed upon employees for drug abuse violations. c) Provide, as required by Government Code Section 8355(c), that every employee who works on the proposed or resulting Contract: (i) will receive a copy of the company's drug -free policy statement; and, (ii) will agree to abide by the terms of the company's statement as a condition of employment on the Contract. 50. FOUR -DIGIT DATE COMPLIANCE: Contractor warrants that it will provide only Four -Digit Date Compliant (as defined below) Deliverablesandlor services to the State. 'Four Digit Date Compliant" Deliverables and services can accurately process, calculate, compare, and sequence date data, including without limitation date data arising out of or relating to leap years and changes in centuries. This warranty and representation is subject to the warranty terms and conditions of this Contract and does not limit the generality of warranty obligations set forth elsewhere herein. 51. SWEATFREE CODE OF CONDUCT: a) Contractor declares under penalty of perjury that no equipment, materials, or supplies furnished to the State pursuant to the contract have been produced in whole or in part by sweatshop labor, forced labor, convict labor, indentured labor under penal sanction, abusive forms of child labor or exploitation of children in sweatshop labor, or with the benefit of sweatshop labor, forced labor, convict labor, indentured labor under penal sanction, abusive forms of child labor or exploitation of children in sweatshop labor. Contractor further declares under penalty of perjury that they adhere to the Sweatfree Code of Conduct as set forth on the California Department of Industrial Relations website located at www.dir.ca.gov and Public Contract Code Section 6108. b) Contractor agrees to cooperate fully in providing reasonable access to its records, documents, agents or employees, or premises if reasonably required by authorized officials of the State, the Department of Industrial Relations, or the Department of Justice to determine Contractor's compliance with the requirements under paragraph (a). 52. RECYCLING: The Contractor shall certify in writing under penalty of perjury, the minimum, if not exact, percentage ❑f post consumer material as defined in the Public Contract Code Section 12200, in products, materials, goods, or supplies offered or sold to the State regardless of whether the product meets the requirements of Section 12209. With respect to printer or duplication cartridges that comply with the requirements of Section 12156(e), the certification required by this subdivision shall specify that the cartridges so comply (PCC 12205). 53. CHILD SUPPORT COMPLIANCE ACT: For any Contract in excess of $100,000, the Contractor acknowledges in accordance with PCC Section 7110, that a) The Contractor recognizes the importance of child and family support obligations and shall fully comply with all applicable State and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with Section 5200) of Part 5 of Division 9 of the Family Code; and Revision 9/30/2009 (GSPD-4011T based on April 12, 2007) 43 b) The Contractor, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department. 54. AMERICANS WITH DISABILITIES ACT: Contractor assures the State that Contractor complies with the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq). 55. ELECTRONIC WASTE RECYCLING ACT OF 20D3: The Contractor certifies that it complies with the requirements of the Electronic Waste Recycling Act of 2003, Chapter 8.5, Part 3 of Division 30, commencing with Section 42460 of the Public Resources Code, relating to hazardous and solid waste. Contractor shall maintain documentation and provide reasonable access to its records and documents that evidence compliance. 56. USE TAX COLLECTION: In accordance with PCC Section 10295.1, Contractor certifies that it complies with the requirements of Section 7101 of the Revenue and Taxation Code. Contractor further certifies that it will immediately advise State of any change in its retailer's seller's permit or certification of registration or applicable affiliate's seller's permit or certificate of registration as described in subdivision (a) of PCC Section 10295.1. 57. EXPATRIATE CORPORATIONS: Contractor hereby declares that it is not an expatriate corporation or subsidiary of an expatriate corporation within the meaning of PCC Sectbns 10286 and 10286.1, and is eligible to contract with the State- 58. DOMESTIC PARTNERS: For contracts over $100,000 executed or amended after January 1, 2007, the contractor certifies that the contractor is in compliance with Public Contract Code section 10295.3. Page 11 of 11 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: June 19, 2012 AGENDA ITEM NO. 13 :M TITLE: Resolution of the City Council of the City of National City approving an amendment to the WINGS Agreement (Contract #1752) with the National School District for the National City Public Library to provide the before and after -school program at the ten (10) schools of the District for a total amount of $1,012,000 for FY2012-13, representing an increase of $32,302 over the original contract amount. PREPARED BY: G. Olivares PHONE: 470-5883 EXPLANATION: DEPARTMENT: Libr APPROVED BY: This agreement amends the Fee section (Section 5) to read $1,012,000 for FY2012-13, an increase of $32,302 over the original contract amount of $979,698. All other terms remain unchanged. FINANCIAL STATEMENT: ACCOUNT NO. 246-431-0000-3463 ENVIRONMENTAL REVIEW: ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Adopt resolution BOARD / COMMISSION RECOMMENDATION: Approved by the Library Board of Trustees on June 13, 2012 ATTACHMENTS: I. Copy of WINGS Operating Agreement CT#1752 '. Amendment to CT#1752 to WINGS Operating Agreement RESOLUTION NO. 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY RATIFYING AN AMENDMENT TO AGREEMENT CONTRACT NO. CT 1752 WITH THE NATIONAL SCHOOL DISTRICT IN THE AMOUNT OF $1,012,000 FOR THE PUBLIC LIBRARY TO PROVIDE A BEFORE AND AFTER SCHOOL PROGRAM DURING THE 2012-2013 SCHOOL YEAR AT THE DISTRICT'S TEN SCHOOLS WHEREAS, in 2009, the National City Public Library entered into After -School Education and Safety Program Operating Agreement Contract No. CT 1752 with the National School District (the "District") for the Library to provide a before and after school program at the District's ten schools, beginning July 1, 2009, with an annual automatic renewal contingent upon the parties agreeing on the appropriate adjustment in fees; and WHEREAS, on August 18, 2009, the City Council adopted Resolution No. 2009- 198, approving and ratifying said Operating Agreement; and WHEREAS, to continue the before and after school program, the City and the District have agreed to increase the cost to provide the Program to $1,012,000, an increase of $32,302 over previous years. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby approves and ratifies an Amendment to the After -School Education and Safety Program Operating Agreement Contract No. CT 1752 between the National City Public Library and the National School District setting the fee paid to the Library at $1,012,000 for providing a before and after school program at the District's ten schools, beginning July 1, 2012, to the District's ten schools during the 2012-2013 school year. PASSED and ADOPTED this 19th day of June, 2012. Ron Morrison, Mayor ATTEST: APPROVED AS TO FORM: Michael R. Dalla, City Clerk Claudia Gacitua Silva City Attorney 2 AN AGREEMENT TO AMEND CONTRACT 1752, AFTER SCHOOL EDUCATION AND SAFETY PROGRAM OPERATING AGREEMENT, BETWEEN THE NATIONAL SCHOOL DISTRICT AND THE NATIONAL CITY PUBLIC LIBRARY / CITY OF NATIONAL CITY THIS AGREEMENT AMENDMENT is made and entered into this 1st day of July 2012, by and between THE CITY OF NATIONAL CITY / NATIONAL CITY PUBLIC LIBRARY, hereinafter called "NCPL," and THE NATIONAL SCHOOL DISTRICT, an agency of the State of California, hereinafter called "DISTRICT." WHEREAS, the Parties have previously entered into an agreement entitled AFTER -SCHOOL EDUCATION AND SAFETY PROGRAM OPERATING AGREEMENT CONTRACT #CT 1752 ("Agreement") beginning on July 1, 2009; WHEREAS, the Agreement provides for automatic renewals contingent upon the parties agreeing on the appropriate adjustment in fees; WHEREAS, the Parties have agreed that to continue the WINGS program, which is a program part of the Agreement, an adjustment in the cost to provide this service is warranted and the Parties have agreed that the amount for the 2012-2013 school year is $1,012,000; WHEREAS, the Parties seek to amend the Agreement to reflect this increased fee; NOW, TIIEREFORE, the Parties agree as follows: 1. NATIONAL CITY PUBLIC LIBRARY shall provide a WINGS before and after school program at all ten (10) schools in the DISTRICT as outlined in the July 2009 After School Education and Safety Program Operating Agreement, Contract #1752, for the 2012-2013 school year. (See attached agreement) 2. The DISTRICT shall provide adequate supports and services outlined in the July 2009 After School Education and Safety Program Operating Agreement, Contract #1752. 3. This agreement will amend the Fee section (Section 5) in the original agreement to add the payment amount for the 2012-2013 school year: The District shall pay the NCPL One Million Twelve Thousand Dollars ($1,012,000) upon receipt of monthly invoices, for performance of the contract for the 2012-2013 school year. 4. The Parties further agree that each and every term and provision of the Agreement, except as amended herein, shall remain in full force and effect. IN WITNESS WHEREOF, the Parties hereto have caused this agreement to be executed the day and year first above written. NATIONAL SCHOOL DISTRICT Christopher Oram, Ed.D. District Superintendent National School District Board Approval Date: June 27, 2012 CITY OF NATIONAL CITY/ NCPL Minh City Librarian 3 06-00-9065-100-0000-1000-5800-100-026 AFTER -SCHOOL EDUCATION. AND SAFETY PROGRAM OPERATING AGREEMENT CONTRACT #CT 1752 This AGREEMENT is made by and between National School District, herein called, "District," 1500 "N" Avenue, National City, California 91950, and National City Public Library, herein called "Contractor," 1401 National City Blvd., National City, California 91950 WHEREAS, National School District has implemented or will be implementing the After -School Education and Safety Program ("ASESP"); and WHEREAS, District desires to engage the National City Public Library, (or Contractor) to provide an extended school day child care and education program pursuant to ASESP at all of its schools; and WHEREAS, Contractor is ready, willing and able to perform the services detailed in this Agreement, beginning July 1, 2009, and concluding June 30, 2010. NOW, THEREFORE, District and Contractor mutually agree as follows: 1. DEFINITIONS: For the purposes of this Agreement, the following terms shall have the meanings indicated: a) "District" - National School District b) "Contractor" - National City Public Library c) "State" - State -funded After -School Education and Safety Program grant which constitutes the source of funding under this Agreement. 2. SCOPE OF SERVICES: Contractor hereby agrees to perform the services specifically listed below: a) Operation of Program: Operate a school -age child care program pursuant to ASESP ("Program'') that provides safe, healthy, recreational, and educational activities at each of the District's schools for children enrolled in the Program. Contractor agrees to commit resources to ensure the delivery of an integrated, age -appropriate child care and education Program. b) Hours of Operation: While District schools are in regular sessions, the Program shall operate before school (6:30 — 8:00 a.m. or 7:00 — 8:30 a.m. dependent upon the school) and after school dismissal time (beginning around 1:00 to 3:10 p.m., dependent upon the school site), for the remainder of the day until 6:00 p.m., on a Monday through Friday schedule. Daily hours of operation must be posted by Contractor and be visible to the participants and parents of the Program. Operating hours will be monitored by daily sign -in and sign -out sheets and reported monthly to the District and to the State by the Contractor. c) Holidays: The Program will not operate during scheduled school holidays and scheduled vacation periods unless funds are made available, and Contractor agrees through an amendment to this Agreement to perform during such periods. d) Summer Program: District may request that Contractor operate the Camp Wings Summer School Program, subject to District and Contractor mutually agreeing to the Contractor's fee and implementing an amendment to this Agreement. e) Use of Facilities: At each school site, Contractor may use such portions of the school site and school facilities as are agreed upon with the principal of the school. Page 2 of 12 Contractor agrees to keep school sites and school facilities it uses clean and organized, and to cooperate with other groups using the sites and facilities. f) Compliance: If for any reason, the Program is not operating at the timesand days agreed upon, the Contractor shall forfeit payment for those times that the Program is not operating and will be subject to termination of the Agreement at District's sole option. g) Staffing: Contractor shall provide a coordinator to oversee and coordinate Program activities in cooperation with District staff Each Program site must be staffed daily, at a minimum, by the required student to staff ratio of one adult to twenty students. Designated coaches and/or site staff must be trained in CPR and First Aid. Training will be provided by National School District. Contractor is encouraged to hire instructional assistants and credentialed teachers' from the school site to assist with the Program. Volunteers to assist with tutoring, literacy, and mentoring may be added in addition to paid staff. h) Experience: Site supervisors must have prior supervisory experience. i) Fingerprinting: Contractor agrees to provide District with written certification that Contractor has complied with the fingerprinting and criminal background investigation requirements of the California Education Code with respect to all Contractor's employees and volunteers who may have contact with District students in the course of providing services under the Program. Contractor shall provide written verification stating that none of its employees or volunteers who may have contact with District students has been convicted of a violent or serious felony as defined in the Education Code. Page 3 of 12 j) First Aid/CPR: At all times, there shall be personnel on site trained in First Aid/CPR, safety, and emergency procedures. The leaders must have proof of their First Aid/CPR card at the site. k) Unifoiiu/Dress Code: On -site personnel will be required to have a professional appearance, wearing a name badge and vest which identifies them and the agency for which they work. 1) Supervision: The Contractor is required to have its agency supervisorial management personnel visit each Program site at least once weekly. The District or designee will periodically visit sites unannounced. m) Health: Contractor staff and volunteers are required to have a negative tuberculin test or x-ray within the last three (3) years. n) Safety: Safety is a critical element in the Programs. All safety rules and emergency procedures followed during the school day apply to the Program. o) Emergency Contact Forms: At every site Contractor must have parents fill out emergency contact cards and medical release forms. These forms must be kept on file at the school site by Contractor within easy access. p) Emergency Procedures/Accident Reports: The Contractor will adhere to emergency procedures at each school site. A formal reporting process for all accidents, incidents and complaints must be approved by the District and communicated to and posted for parents. Any serious accident, i.e., injury involving medical attention, must be reported in writing to the school principals and the Contractor's corporate office. A written accident or incident report must be sent within three (3) days. All minor Page 4 of 12 accidents or injuries are reported on an "Ouch Slip," with copies provided to the District, school site, and parent/guardian. q) School Relations: Developing a close relationship with school staff is critical to the success of the Program. Contractor will communicate regularly with school staff to ensure school staff is fully aware of Program activities. r) Collaboration: Contractor will collaborate with other appropriate persons and entities to provide an effective, meaningful Program in the National School District. Such collaboration shall include, but not be limited to, the National City Public Library, parents and local community partners. Contractor will promote cooperation and coordination among and between school sites and all personnel involved in Program activities. s) Amendment: Any modification of the type or quantity of services, or the fees for the services to be provided by Contractor, shall require a mutually agreeable amendment to this Agreement. 3. DISTRICT RESPONSIBILITIES: In connection with this Agreement District shall perform the following activities: a) Facilitate communication of the Program mission, goals and objectives to all participating school sites, and in particular to principals, teachers, other school staff, parent -teacher organizations, school site councils and parents. b) Promote cooperation and coordination among and between school sites and all personnel involved in Program activities. c) Designate a staff liaison as a key contact for Contractor. Page 5 of 12 d) Coordinate the daily delivery of snacks for participating children through Child Nutrition Services. e) Negotiate and implement contracts for karate, dance and music coaches. 4. PERIOD OF PERFORMANCE: The services to be performed by Contractor, as set forth herein, shall commence on July 1, 2009, and end on June 30, 2010, unless terminated sooner in accordance with the provisions of this Agreement. This Agreement will automatically renew each year for an additional 12-month period contingent on the Parties mutual agreement to any adjustment in fees due to increased or decreased operating costs. At any time either Party may choose to terminate the contract by providing thirty (30) days written notice prior to the end of the term. 5. FEE: The District shall pay to the Contractor as full consideration for the faithful performance of the contract, subject to any additions or deductions as provided in the contract documents, and including any applicable sales, use of other taxes or costs, the sum of ($979,698), Nine Hundred Seventy Nine Thousand Six Hundred Ninety Eight Dollars and No Cents. 6. EXPENDITURES: The Contractor will be required to provide substantiation for all expenditures claimed for reimbursement in the form of receipts and invoices. Contractor is allowed to charge a 5% administrative markup over claimed expenditures. 7. METHOD OF PAYMENT: Contractor shall be reimbursed for eligible expenditures within thirty days of receipt of invoices at the end of each quarter. Invoices shall be submitted for the quarters ending on September 30, 2009, December 31, 2009, March 31, 2010, and the last day of the school year. In order to receive reimbursement for expenditures, quarterly invoices must be accompanied by written documentation substantiating claimed Page 6of12 expenditures. The final payment to Contractor shall be withheld until the final invoice with substantiating documentation has been received by the District. 8. STATE REQUIREMENTS: Contractor shall comply with all requirements set forth by the State Depaituient of Education, After -School Education and Safety Program grant. This will include, but not be limited to, program reporting requirements, contract compliance, allowable expenses, fiscal reporting and program evaluations. 9. AUDITS: District will conduct an audit review of Contractor's Program annually during the term of this Agreement. Additionally, Contractor's Program may be audited by District at any time within three (3) years following termination of this Agreement. If Contractor is subject to audits from a source or sources other than the District, Contractor shall provide a copy of the audit to the District within thirty (30) days of completion of the audit. 10. DISCONTINUANCE OF PROGRAM: The District reserves the right to discontinue the Program at its sole discretion, for reasons including, but not limited to the following: regular low attendance (25 students or less), poor program quality, or at the request of the school principal. In such cases, a 30-day written notice will be provided to the Contractor. 11. RECORDS: Contractor shall maintain detailed administrative and fiscal records as required by the District in writing during the term of this Agreement Contractor shall allow National School District authorized agents to inspect its premises, books, accounting documents, payrolls, and other Program records for the purpose of auditing, monitoring, or evaluating the Program. Contractor shall store such records and documents for a period of three (3) years after submission of the final expenditure report, or until all audit findings have been resolved, whichever is longer. During this period, the District or its authorized agents, shall have access to such records and documents at any time. After the three (3) years storage period Page 7 of 12 has expired or all audit findings have been resolved, Contractor shall in either case, notify the District of its intent to dispose of Program records before any action is taken. 12. INTEGRATED AGREEMENT: This Agreement and the exhibits and references incorporated herein fully express all understandings of the Parties concerning the matters covered herein, and supersede any prior agreements, negotiations, and communications, oral or written, between the parties. No change, alteration, or modification of the terms or conditions of this Agreement, and no verbal understanding of the Parties, their officers, agents, or employees, shall be valid unless it is made in the form of a written change or amendment to this Agreement, is signed by all Parties, and is executed in accordance with procedures described herein. 13. EQUAL OPPORTUNITY PROGRAM REQUIREMENTS a) Equal Employment Opportunity: Contractor hereby agrees to comply with Title VII of the Civil Rights Act of 1964, as amended, Executive Orders 11246, 11375, and 12086; the California Fair Employment Practices Act, and anyother applicable Federal and State laws and regulations hereafter enacted. Contractor will not discriminate against any employee or applicant for employment on any basis prohibited by law. Upon request by District, Contractor agrees to submit a current Workforce Report or an Equal Employ- ment Opportunity Plan. Contractor understands that failure to comply with the above requirements and/or submitting false information in response to these requirements, may result in termination of this Agreement. b) Nondiscrimination: Contractor agrees not to discriminate in any manner against any person or persons on account of race, color, religion, gender, sexual orientation, medical status, national origin, age, marital status, or disability in Contractor's performance of Page. 8 of 12 this Agreement, including, but not limited to, the providing of services, privileges, facilities, advantages, and accommodations. c) Equal Contracting Opportunity: Contractors shall ensure that any subcontractors comply with these provisions. Nothing in this section shall be interpreted to hold a prime contractor liable for any discriminatory practice of its subcontractors. 14. INDEPENDENT CONTRACTOR: Contractor is an independent Contractor hereunder, and nothing contained herein shall be construed as creating a relationship of employer and employee between the Parties. Cnntractor shall notify all prospective subcontractors of its independent status hereunder. 15. ASSIGNABILITY: Contractor shall not assign or subcontract any of the work or services to be performed under this Agreement, or expend any funds for such purpose without prior written approval of the District. Contractor shall provide the District copies of all subcontracts entered into under the terms of this Agreement. 16. HOLD HARMLESS: Contractor agrees to defend, indemnify, protect and hold the District and its agents, officers and employees harmless from and against any and all" claims asserted or liability established for damages or injuries to any person or property, including injury to Contractor's employees, agents or officers which arise from or are connected with or are caused or claimed to be caused by the acts or omissions of Contractor, and its agents, officers or employees, in performing the work or services herein, and all expenses of investigating and defending against same; provided, however, that Contractor's duty to indemnify and hold harmless, shall not include any claims or liability arising from the established sole negligence or willful misconduct of the District, its agents, officers or employees. Page 9 of 12 17. INSURANCE: Contractor shall obtain and keep in force during the period of this Agreement, a policy of comprehensive public liability insurance or Lawful self -insured status, which insures Contractor against any and all claims of liability, including accident, injury or death arising from the provision of Program services, or from the ownership, use, operation, maintenance, or administration of School District premises and all areas appurtenant thereto. Such insurance or self-insurance shall be in an amount of not less than ONE MILLION DOLLARS ($1,000,000) for any injury or death of, any person or persons in any accident or occurrence, and shall name District as an additional insured. 18. WORKERS' COMPENSATION: Contractor agrees to procure and maintain in full force and effect Workers' Compensation Insurance covering its employees and agents while these persons are participating in the activities hereunder. In the event a claim under the provisions of the California Workers' Compensation Act is filed against District by a bona fide employee of Contractor participating under this Agreement, Contractor agrees to defend and indemnify. the District from such claim. Contractor may comply with the provisions of this Section 18 by maintaining its lawful self -insured status during the terms of this Agreement. 19. DRUG -FREE WORKPLACE: Contractor shall publish a statement, notifying employees that the unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited in the work place, and specifying the actions that will be taken against employees for violations of the prohibition. Contractor shall establish a drug -free awareness program to inform employees about all of the following: a) The dangers of drug abuse in the workplace b) The organization's policy of maintaining a drug -free workplace Page 10 of 12 c) Any available drug counseling, rehabilitation, and employee assistance program d) The penalties that may be imposed upon employees for drug abuse violations Contractor shall post the drug -free policy in a prominent place. Contractor shall include Ianguage in each subcontract executed in connection with this Agreement which indicates the subcontractor's agreement to abide by provisions of the drug -free workplace program. Contractor and subcontractors shall be individually responsible for their own drug -free workplace program. 2e. TERMINATION OF AGREEMENT: District or Contractor may terminate this Agree- ment by giving written notice to the other Party thirty (30) days prior to the effective date of termination. District may terminate this Agreement at any time if Contractor fails to meet or fulfill its obligations hereunder. In the event of termination by either Party, District's liability shall be limited to reimbursement for the eligible monthly expenditures for work or services performed, plus administrative markup, up to the date of termination. 21. EVALUATIONS: The effectiveness and success of each program will be measured by overall compliance with Agreement terms, daily attendance, variety and interest of program content, and satisfaction of participants, parents and school administrators. A desired outcome will be improved test scores and increased daily school attendance as measured by the District. Additional evaluations may be required by the State as terms of the grant requirement. Contractor agrees to cooperate and comply with all evaluations of the Program. 22. JOINT ADVISORY PANEL: The Parties agree that a joint advisory panel composed of the Literacy Coordinator and WINGS Coordinator from the National City Public Library, and the Assistant Superintendent for Educational Services and the Extended Learning Page 11 of 12 Opportunities Coordinator from the National School District, shall provide advise with respect to the Program provided for by this Agreement. NATIONAL ITY PUBLIC LIBRARY NATIONAL SCHOOL DISTRICT ti"44/"' Signature C4ris Oran, Print Name Print Name Title Date Minh Duong City Librarian S naerrn�[ ektcieh`t �esigVte� 'raid \\AOck (7(9-11'i o9 Governing Board Approval Date Page 12 of 12 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT i MEETING DATE: June 19, 2012 AGENDA ITEM NO. 14 iM TITLE: Resolution of the City Council of the City of National City ratifying an amendment to Agreement CT#1752 with the National School District in the amount of $125,000 for the National City Public Library to provide Camp WINGS summer program at the National School District's eight (8) school sites. PREPARED BY: G. Olivares DEPARTMENT: Libr PHONE: 470-5883 APPROVED BY: EXPLANATION: This agreement calls upon the National City Public Library to provide Camp WINGS, a three-week summer program from June 25 to July 13, 2012, Monday to Friday, from 8:30 am to 1:00 pm at eight (8) schools in the District as follows: Central, El Toyon, Harbison, Las Palmas, Lincoln Acres, Olivewood, Otis, and Palmer Way School. FINANCIAL STATEMENT: ACCOUNT NO. 246-431-0000-3463 ENVIRONMENTAL REVIEW: ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: Finance APPROVED: MIS STAFF RECOMMENDATION: Adopt resolution BOARD / COMMISSION RECOMMENDATION: Approved by the Library Board of Trustees on May 9, 2012 ATTACHMENTS: I. Copy of WINGS Operating Agreement CT#1752 ?. Amendment to CT#1752 WINGS Operating Agreement RESOLUTION NO. 2012 — SUMMER PROGRAM RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY RATIFYING AN AMENDMENT TO AGREEMENT CONTRACT NO. CT 1752 WITH THE NATIONAL SCHOOL DISTRICT IN THE AMOUNT OF $125,000 FOR THE PUBLIC LIBRARY TO PROVIDE THE CAMP WINGS SUMMER PROGRAM FROM JUNE 25 TO JULY 13, 2012, AT EIGHT OF THE DISTRICT'S SCHOOLS WHEREAS, in 2009, the National City Public Library entered into the After - School Education and Safety Program Operating Agreement Contract No. CT 1752 with the National School District (the "District") for the Library to provide an annual child care and education program; and WHEREAS, on August 18, 2009, the City Council adopted Resolution No. 2009- 198, approving and ratifying said Operating Agreement; and WHEREAS, the Agreement provided that, subject to the District's and the Library's agreement concerning the fee to be paid to the Library, the District may request that the Library operate a summer school program; and WHEREAS, pursuant to the Agreement, the District has requested that the Library provide the Camp WINGS Summer Program, a three-week summer program for a fee of $125,000, to be paid at the end of the Program; and WHEREAS, Camp WINGS will be held for fourteen days from June 25 to July 13, 2012, from 8:30 a.m. to 1:00 p.m., Monday through Friday, excluding July 4th, at the following eight schools: Central, El Toyon, Harbison, Las Palmas, Lincoln Acres, Olivewood, Otis, and Palmer Way. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby approves and ratifies an Amendment to the Operating Agreement between the National City Public Library and the National School District for the Library to provide the Camp WINGS Summer Program for a fee in the amount of $125,000. PASSED and ADOPTED this 19th day of June, 2012. Ron Morrison, Mayor ATTEST: APPROVED AS TO FORM: Michael R. Dalla, City Clerk Claudia Gacitua Silva City Attorney 2 AN AMENDMENT TO THE AGREEMENT BETWEEN THE NATIONAL SCHOOL DISTRICT AND THE NATIONAL CITY PUBLIC LIBRARY / CITY OF NATIONAL CITY FOR CAMP WINGS JUNE-JULY 2012 THIS AGREEMENT, made and entered into this 19th day of June 2012, by and between THE CITY OF NATIONAL CITY / NATIONAL CITY PUBLIC LIBRARY, hereinafter called "NCPL," and THE NATIONAL SCHOOL DISTRICT, an agency of the State of California, hereinafter called "DISTRICT." WHEREAS, the Parties have previously entered into an agreement entitled AFTER -SCHOOL EDUCATION AND SAFETY PROGRAM OPERATING AGREEMENT CONTRACT #CT 1752 ("Agreement") beginning on July 1, 2009; WHEREAS, the Parties seek to provide for a summer camp program entitled Camp; NOW, THEREFORE, the Parties agree as follows: 1. SERVICES TO BE PROVIDED A. NATIONAL CITY PUBLIC LIBRARY shall provide a Summer Camp WINGS program at eight (8) schools in the DISTRICT as follows: Central, El Toyon, Harbison, Las Palmas, Lincoln Acres, Olivewood, Otis, and Palmer Way School. 1. The Camp WINGS Program will be held for fourteen (14) days from June 25 through July 13, 2012 from 8:30 am to 1:00 pm, Monday through Friday. There will be no program on July 4th, a national holiday. 2. The curriculum and activities will be developed by NCPL WINGS staff and approved by the DISTRICT prior to implementation. B. The DISTRICT shall provide: 1. Adequate and appropriated space for service provision. 2. Payment to NCPL a total of One Hundred Twenty -Five Thousand ($125,000) upon receipt of invoices at the conclusion of the program. 2. TERM AND TERMINATION All other Terms and Conditions remain per the original contract. The term of this Contract Amendment shall begin June 1, 2012 and terminate on July 13, 2012 at the end of the Camp WINGS Summer Program. IN WITNESS WHEREOF, the Parties hereto have caused this agreement to be executed the day and year first above written. NATIONAL SCHOOL DISTRICT Christopher Oram, Ed.D. District Superintendent NSD Board Approval Date: April 11, 2012 CITY OF NATIONAL CITY/ NCPL Minh Duo g City' nan 06-00-9065-100-0000-1000-5800-100-026 AFTER -SCHOOL EDUCATION AND SAFETY PROGRAM OPERATING AGREEMENT CON TRACT #CT 1752 This AGREEMENT is made by and between National School District, herein called, "District," 1500 "N" Avenue, National City, California 91950, and National City Public Library, herein called "Contractor," 1401 National City Blvd., National City, California 91950 W 1TNESSETH WHEREAS, National School District has implemented or will be implementing the After -School Education and Safety Program ("ASESP"); and WHEREAS, District desires to engage the National City Public Library, (or Contractor) to provide an extended school day child care and education program pursuant to ASESP at all of its schools; and WHEREAS, Contractor is ready, willing and able to perform the services detailed in this Agreement, beginning July 1, 2009, and concluding June 30, 2010_ NOW, THEREFORE, District and Contractor mutually agree as follows: 1. DEFINITIONS: For the purposes of this Agreement, the following terms shall have the meanings indicated: a) "District" - National School District b) "Contractor" - National City Public Library c) "State" - State -funded After -School Education and Safety Program grant which constitutes the source of funding under this Agreement. 2. SCOPE OF SERVICES: Contractor hereby agrees to perform the services specifically listed below: a) Operation of Program: Operate a school -age child care program pursuant to ASESP ("Program") that provides safe, healthy, recreational, and educational activities at each of the District's schools for children enrolled in the Program. Contractor agrees to commit resources to ensure the delivery of an integrated, age -appropriate child care and education Program. b) Hours of Operation: While District schools are in regular sessions, the Program shall operate before school (6:30 — 8:00 a.m. or 7:00 — 8:30 a.m. dependent upon the school) and after school dismissal time (beginning around 1:00 to 3:10 p,m., dependent upon the school site), for the remainder of the day until 6:00 p.m., on a Monday through Friday schedule. Daily hours of operation must be posted by Contractor and be visible to the participants and parents of the Program. Operating hours will be monitored by daily sign -in and sign -out sheets and reported monthly to the District and to the State by the Contractor. c) Holidays: The Program will not operate during scheduled school holidays and scheduled vacation periods unless funds are made available, and Contractor agrees through an amendment to this Agreement to perform during such periods. d) Summer Program: District may request that Contractor operate the Camp Wings Summer School Program, subject to District and Contractor mutually agreeing to the Contractor's fee and implementing an amendment to this Agreement. e) Use of Facilities: At each school site, Contractor may use such portions of the school site and school facilities as are agreed upon with the principal of the school. Page 2 of 12 Contractor agrees to keep schoolsites and school facilities it uses clean and organized, and to cooperate with other groups using the sites and facilities. f) Compliance: If for any reason, the Program is not operating at the times. and days agreed upon, the Contractor shall forfeit payment for those times that the Program is not operating and will be subject to termination of the Agreement at District's sole option. g) Staffing: ContTactor shall provide a coordinator to oversee and coordinate Program activities in cooperation with District staff: Each Program site must be staffed daily, at a minimum, by the required student to staff ratio of one adult to twenty students. Designated coaches and/or site staff must be trained in CPR and First Aid. Training will be provided by National School District. Contractor is encouraged to hire instructional assistants and credentialed teachers from the school site to assist with the Program. Volunteers to assist with tutoring, literacy, and mentoring may be added in addition to paid staff h) Experience: Site supervisors must have prior supervisory experience. i) Fingerprinting: Contractor agrees to provide District with written certification that Contractor has complied with the fingerprinting and criminal background investigation requirements of the California Education Code with respect to all Contractor's employees and volunteers who may have contact with District students in the course of providing services under the Program. Contractor shall provide written verification stating that none of its employees or volunteers who may have contact with District students has been convicted of a violent or serious felony as defined in the Education Code. Page 3 of 12 j) First Aid/CPR: At all times, there shall be personnel on site trained in First Aid/CPR, safety, and emergency procedures. The leaders must have proof of their First Aid/CPR card at the site. k) Uniform/Dress Code: On -site personnel will be required to have a professional appearance, wearing a name badge and vest which identifies them and the agency for which they work. 1) Supervision: The Contractor is required to have its agency supervisorial management personnel visit each Program site at least once weekly. The District or designee will periodically visit sites unannounced. m) Health: Contractor staff and volunteers are required to have a negative tuberculin test or x-ray within the last three (3) years. n) Safety: Safety is a critical element in the Programs. All safety rules and emergency procedures followed during the school day apply to the Program. o) Emergency Contact Forms: At every site Contractor must have parents fill out emergency contact cards and medical release forms. These forms must be kept on file at the school site by Contractor within easy access. p) Emergency Procedures/Accident Reports: The Contractor will adhere to emergency procedures at each school site. A formal reporting process for all accidents, incidents and complaints must be approved by the District and communicated to and posted for parents. Any serious accident, i.e., injury involving medical attention, must be reported in writing to the school principals and the Contractor's corporate office. A written accident or incident report must be sent within three (3) days. All minor Page 4 of 12 accidents or injuries are reported on an "Ouch Slip," with copies provided to the District, school site, and parent/guardian. q) School Relations: Developing a close relationship with school staff is critical to the success of the Program. Contractor will communicate regularly with school staff to ensure school staff is fully aware of Program activities. r) Collaboration: Contractor will collaborate with other appropriate persons and entities to provide an effective, meaningful Program in the National School District, Such collaboration shall include, but not be limited to, the National City Public Library, parents and local community partners. Contractor will promote cooperation and coordination among and between school sites and all personnel involved in Program activities. s) Amendment: Any modification of the type or quantity of services, or the fees for the services to be provided by Contractor, shall require a mutually agreeable amendment to this Agreement. 3. DISTRICT RESPONSIBILITIES: In connection with this Agreement District shall perform the following activities: a) Facilitate communication of the Program mission, goals and objectives to all participating school sites, and in particular to principals, teachers, other school staff, parent -teacher organizations, school site councils and parents. b) Promote cooperation and coordination among and between school sites and all personnel involved in Program activities. c) Designate a staff liaison as a key contact for Contractor. Page 5 of 12 d) Coordinate the daily delivery of snacks for participating children through Child Nutrition Services. e) Negotiate and implement contracts for karate, dance and music coaches. 4. PERIOD OF PERFORMANCE: The services to be performed by Contractor, as set forth herein, shall commence on July 1, 2009, and end on June 30, 2010, unless terminated sooner in accordance with the provisions of this Agreement. This Agreement will automatically renew each year for an additional 12-month period contingent on the Parties mutual agreement to any adjustment in fees due to increased or decreased operating costs. At any time either Party may choose to terminate the contract by providing thirty (30) days written notice prior to the end of the term. 5. FEE: The District shall pay to the Contractor as full consideration for the faithful performance of the contract, subject to any additions or deductions as provided in the contract documents, and including any applicable sales, use of other taxes or costs, the sum of ($979,698), Nine Hundred Seventy Nine Thousand Six Hundred Ninety Eight Dollars and No Cents. 6. EXPENDITURES: The Contractor will be required to provide substantiation for all expenditures claimed for reimbursement in the form of receipts and invoices. Contractor is allowed to charge a 5% administrative markup over claimed expenditures. 7. METHOD OF PAYMENT: Contractor shall be reimbursed for eligible expenditures within thirty days of receipt of invoices at the end of each quarter. Invoices shall be submitted for the quarters ending on September 30, 2009, December 31, 2009, March 31, 2010, and the last day of the school year. In order to receive reimbursement for expenditures, quarterly invoices must be accompanied by written documentation substantiating claimed Page 6 of 12 expenditures. The final payment to Contractor shall be withheld until the final invoice with substantiating documentation has been received by the District. 8. STATE REQUIREMENTS: Contractor shall comply with all requirements set forth by the State Department of Education, After -School Education and Safety Program grant. This will include, but not be limited to, program reporting requirements, contract compliance, allowable expenses, fiscal reporting and program evaluations. 9. AUDITS: District will conduct an audit review of Contractor's Program annually during the term of this Agreement. Additionally, Contractor's Program may be audited by District at any time within three (3) years following termination of this Agreement. If Contractor is subject to audits from a source or sources other than the District, Contractor shall provide a copy of the audit to the District within thirty (30) days of completion of the audit. 10. DISCONTINUANCE OF PROGRAM: The District reserves the right to discontinue the Program at its sole discretion, for reasons including, but not Limited to the following: regular low attendance (25 students or less), poor program quality, or at the request of the school principal. In such cases, a 30-day written notice will be provided to the Contractor. 11. RECORDS: Contractor shall maintain detailed administrative and fiscal records as required by the District in writing during the term of this Agreement. Contractor shall allow National School District authorized agents to inspect its premises, books, accounting documents, payrolls, and other Program records for the purpose of auditing, monitoring, or evaluating the Program. Contractor shall store such records and documents for a period of three (3) years after submission of the final expenditure report, or until all audit findings have been resolved, whichever is longer. During this period, the District or its authorized agents, shall have access to such records and documents at any time. After the three (3) years storage period Page 7 of 12 has expired or all audit findings have been resolved, Contractor shall in either case, notify the District of its intent to dispose of Program records before any action is taken. 12. INTEGRATED AGREEMENT: This Agreement and the exhibits and references incorporated herein fully express all understandings of the Parties concerning the matters covered herein, and supersede any prior agreements, negotiations, and communications, oral or written, between the parties. No change, alteration, or modification of the terms or conditions of this Agreement, and no verbal understanding of the Parties, their officers, agents, or employees, shall be valid unless it is made in the form of a written change or amendment to this Agreement, is signed by all Parties, and is executed in accordance with procedures described herein. 13. EQUAL OPPORTUNITY PROGRAM REQUIREMENTS a) Equal Employment Opportunity: Contractor hereby agrees to comply with Title VII of the Civil Rights Act of 1964, as amended, Executive Orders 11246, 11375, and 12086; the California Fair Employment Practices Act, and any other applicable Federal and State laws and regulations hereafter enacted. Contractor will not discriminate against any employee or applicant for employment on any basis prohibited by law. Upon request by District, Contractor agrees to submit a current Workforce Report or an Equal Employ- ment Opportunity Plan. Contractor understands that failure to comply with the above requirements and/or submitting false information in response to these requirements, may result in tennination of this Agreement. b) Nondiscrimination: Contractor agrees not to discriminate in any manner against any person or persons on account of race, color, religion, gender, sexual orientation, medical status, national origin, age, marital status, or disability in Contractor's performance of Page 8 of 12 this Agreement, including, but not Iimited to, the providing of services, privileges, facilities, advantages, and accommodations. c) Equal Contracting Opportunity: Contractors shall ensure that any subcontractors comply with these provisions. Nothing in this section shall be interpreted to hold a prime contractor liable for any discriminatory practice of its subcontractors. 14. INDEPENDENT CONTRACTOR: Contractor is an independent Contractor hereunder, and nothing contained herein shall be construed as creating a relationship of employer and employee between the Parties. Contractor shall notify all prospective subcontractors of its independent status hereunder. 15. ASSIGNABILITY: Contractor shall not assign or subcontract any of the work or services to be performed under this Agreement, or expend any funds for such purpose without prior written approval of the District. Contractor shall provide the District copies of all subcontracts entered into under the terms of this Agreement. 16. HOLD HARMLESS: Contractor agrees to defend, indemnify, protect and hold the District and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to Contractor's employees, agents or officers which arise from or are connected with or are caused or claimed to be caused by the acts or omissions of Contractor, and its agents, officers or employees, in performing the work or services herein, and all expenses of investigating and defending against same; provided, however, that Contractor's duty to indemnify and hold harmless, shall not include any claims or liability arising from the established sole negligence or willful misconduct of the District, its agents, officers or employees. Page 9 of 12 17. INSURANCE: Contractor shall obtain and keep in force during the period of this Agreement, a policy of comprehensive public liability insurance or lawful self -insured status, which insures Contractor against any and all claims of liability, including accident, injury or death arising from the provision of Program services, or from the ownership, use, operation, maintenance, or administration of School District premises and all areas appurtenant thereto. Such insurance or self-insurance shall be in an amount of not less than ONE MILLION DOLLARS ($1,000,000) for any injury or death of, any person or persons in any accident or occurrence, and shall name District as an additional insured. 18. WORKERS' COMPENSATION: Contractor agrees to procure and maintain in full force and effect Workers' Compensation Insurance covering its employees and agents while these persons are participating in the activities hereunder. In the event a claim under the provisions of the California Workers' Compensation Act is filed against District by a bona fide employee of Contractor participating under this Agreement, Contractor agrees to defend and indemnify the District from such claim. Contractor may comply with the provisions of this Section 18 by maintaining its lawful self -insured status during the terms of this Agreement. 19. DRUG -FREE WORKPLACE: Contractor shall publish a statement, notifying employees that the unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited in the work place, and specifying the actions that will be taken against employees for violations of the prohibition. Contractor shall establish a drug -free awareness program to inform employees about all of the following: a) The dangers of drug abuse in the workplace b) The organization's policy of maintaining a drug -free workplace Page 10 of 12 c) Any available drug counseling, rehabilitation, and employee assistance program d) The penalties that may be imposed upon employees for drug abuse violations Contractor shall post the drug -free policy in a prominent place. Contractor shall include language in each subcontract executed in connection with this Agreement which indicates the subcontractor's agreement to abide by provisions of the drug -free workplace program. Contractor and subcontractors shall be individually responsible for their own drug -free workplace program. 20. TERMINATION OF AGREEMENT: District or Contractor may terminate this Agree- ment by giving written notice to the other Party thirty (30) days prior to the effective date of termination. District may terminate this Agreement at any time if Contractor fails to meet or fulfill its obligations hereunder. In the event of termination by either Party, District's liability shall be limited to reimbursement for the eligible monthly expenditures for work or services performed, plus administrative markup, up to the date of termination. 21. EVALUATIONS: The effectiveness and success of each program will be measured by overall compliance with Agreement terms, daily attendance, variety and interest of program content, and satisfaction of participants, parents and school administrators. A desired outcome will be improved test scores and increased daily school attendance as measured by the District. Additional evaluations may be required by the State as terms of the grant requirement. Contractor agrees to cooperate and comply with all evaluations of the Program. 22. JOINT ADVISORY PANEL: The Parties agree that a joint advisory panel composed of the Literacy Coordinator and WINGS Coordinator from the National City Public Library, and the Assistant Superintendent for Educational Services and the Extended Learning Page 11 of 12 Opportunities Coordinator from the National School District, shall provide advise with respect to the Program provided for by this Agreement. NATIONAL ITY PUBLIC LIBRARY NATIONAL SCHOOL DISTRICT 0\11/0/ li)4441- Signatu ` Signature ris Ora -- Minh Duong Print Name Print Name City Librarian Title Syip 2riYIiie{'{Cleht DeS;SYiee„ Title �f g\\DJ\O`‘ 6f 24 Q9 Date Governing Board Approval Date Page 12 of 12 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: June 19, 2012 AGENDA ITEM NO.15 -EM TITLE: Resolution of the City Council of the City of National City approving a salary schedule for the Municipal Employees' Association employee group for fiscal year 2012-2013 in compliance with the requirements of the California Public Employee's Retirement System (Ca1PERS) PREPARED BY: Stacey Stevenson PHONE: 336-4308 EXPLANATION: DEPARTMENT:�.- APPROVED: ources All employees of the City of National City receive a rate of pay within the established salary range for the job classification into which the employee has been hired. The purpose of this item is to establish the fiscal year 2012- 2013 salary schedule for classifications represented by the Municipal Employees' Association. FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. i APPROVED: There is no fiscal impact associated with this action ENVIRONMENTAL REVIEW: ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Approve the resolution BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: volution "..,,.t of Classifications Represented by the Municipal Employees' Association Municipal Employees' Association Salary Schedule RESOLUTION NO. 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING A SALARY SCHEDULE FOR THE MUNICIPAL EMPLOYEE'S ASSOCIATION EMPLOYEE GROUP FOR FISCAL YEAR 2012-2013 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby approves the Fiscal Year 2012-2013 Salary Schedule for the Municipal Employee's Association Employee Group, attached hereto as Exhibit "A". PASSED and ADOPTED this 19th day of June, 2012. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney Ron Morrison, Mayor City of National City Human Resources Department LIST OF CLASSIFICATIONS REPRESENTED BY NCMEA Fiscal Year 2012-2013 Accountant Accountant Trainee Accounting Assistant Administrative Secretary Buyer Executive Secretary Management Analyst Trainee Office Assistant Purchasing Clerk Senior Accounting Assistant Senior Office Assistant 114 96 76 87 92 101 101 53 76 92 63 Assistant Engineer -Civil Assistant Planner Associate Engineer -Civil Associate Planner Building Inspector Building Inspector/Plan Checker Civil Engineering Technician Code Conformance Officer I Code Conformance Officer 11 Construction Inspector Fire inspector Housing Inspector I Housing Inspector II Permit Technician Planning Technician 143 119 156 130 123 133 108 113 123 118 123 113 123 86 98 Page 1 EXHIBIT "A" City of National City Human Resources Department LIST OF CLASSIFICATIONS REPRESENTED BY NCMEA Fiscal Year 2012-2013 Senior Civil Engineering Technician Senior Construction Inspector Executive Chef 81 Home Delivered Meals Coordinator 60 Librarian 124 Library Assistant 63 Library Technician 88 Neighborhood Council Specialist 101 Recreation Center Supervisor 95 Recreation Supervisor 112 Senior Library Technician 93 Sous Chef 63 Abandoned Vehicle Abatement Officer 83 Community Services Officer 73 Crime Analyst 120 Crime Scene Specialist 112 Parking Regulations Officer 83 Police Dispatcher 113 Police Investigative Aide 105 Police Investigator (Non -sworn) 123 Page 2 City of National City Human Resources Department LIST OF CLASSIFICATIONS REPRESENTED BY NCMEA Fiscal Year 2012-2013 Police Operations Assistant Police Records Clerk Police Records Manager Property & Evidence Specialist I Property & Evidence Specialist II Property & Evidence Unit Supervisor Training Coordinator 93 63 120 92 112 123 74 Community Development Specialist I Community Development Specialist II Housing Assistant Housing Specialist Senior Housing Specialist Assistant Tree Trimmer Lead Tree Trimmer Park Caretaker Park Supervisor Parks Equipment Operator Senior Park Caretaker Tree Trimmer 82 93 74 109 98 82 87 Page 3 City of National City Human Resources Department LIST OF CLASSIFICATIONS REPRESENTED BY NCMEA Fiscal Year 2012-2013 Building Trades Specialist Carpenter Custodian Electrician Equipment Mechanic Equipment Operator Lead Equipment Mechanic Maintenance Worker Plumber Senior Equipment Operator Senior Traffic Painter Street Sweeper Operator Supervising Custodian Traffic Painter Wastewater Crew Chief 102 102 56 102 105 98 115 76 102 110 98 98 67 86 110 Page 4 CITY OF NATIONAL CITY NCMEA SALARY SCHEDULE EFFECTIVE DATE: Fiscal Year 2012-2013 RANGE STEP HOURLY BIWEEKLY MONTHLY ANNUAL 051 A 12.92 1,033.36 2,238.94 26,867.30 B 13.56 1,085.02 2,350.88 28,210.59 C 14.24 1,139.27 2,468.42 29,621.09 D 14.95 1,196.23 2,591.84 31,102.02 E 15.70 1,256.04 2,721.43 32,657.14 052 A 12.62 1,009.81 2,187.93 26,255.11 B 13.25 1,060.29 2,297.30 27,567.60 C 13.92 1,113.31 2,412.16 28,945.97 D 14.61 1,168.98 2,532.79 30,393.43 E 15.34 1,227.42 2,659.41 31, 912.92 053 A 12.74 1,019.42 2,208.75 26,504.97 B 13.38 1,070.40 2,319.19 27,830.31 C 14.05 1,123.92 2,435.15 29,221.80 D 14.75 1,180.13 2,556.95 30,683.45 E 15.49 1,239.12 2,684.76 32,217.14 054 A 12.84 1,027.11 2,225.40 26,704.75 B 13.48 1,078.48 2,336.71 28,040.53 C 14.15 1,132.38 2,453.49 29,441.93 D 14.86 1,189.01 2,576.19 30,914.30 E 15.61 1,248.47 2,705.03 32,460.31 055 A 12.97 1,037.71 2,248.38 26,980.58 B 13.62 1,089.60 2,360.79 28,329.49 C 14.30 1,144.07 2,478.82 29,745.89 D 15.02 1,201.28 2,602.77 31,233.25 E 15.77 1,261.34 2,732.90 32,794.79 056 A 13.47 1,077.64 2,334.88 28,018.58 B 14.14 1,131.51 2,451.60 29,419.17 C 14.85 1,188.08 2,574.18 30,890.19 D 15.59 1,247.49 2,702.91 32,434.86 E 16.37 1,309.86 2,838.03 34,056.39 057 A 13.61 1,088.67 2,358.78 28,305.39. B 14.29 1,143.11 2,476.75 29,720.98 C 15.00 1,200.26 2,600.56 31,206.73 D 15.75 1,260.27 2,730.58 32,766.94 E 16.54 1,323.27 2,867.09 34,405.07 Page 1 of 23 CITY OF NATIONAL CITY NCMEA SALARY SCHEDULE EFFECTIVE DATE: Fiscal Year 2012-2013 RANGE STEP HOURLY BIWEEKLY MONTHLY ANNUAL 058 A 13.73 1,098.42 2,379.92 28,559.00 B 14.42 1,153.33 2,498.89 29,986.64 C 15.14 1,211.00 2,623.84 31,486.05 D 15.89 1,271.56 2,755.04 33,060.45 E 16.69 1,335.14 2,892.80 34,713.58 059 A 13.84 1,107.24 2,399.02 28,788.23 B 14.53 1,162.58 2,518.93 30,227.12 C 15.26 1,220.70 2,644.86 31,738.32 D 16.02 1,281.73 2,777.09 33,325.03 E 16.82 1,345.85 2,916.01 34,992.09 060 A 13.95 1,116.19 2,418.41 29,020.95 B 14.65 1,171.99 2,539.30 30,471.62 C 15.38 1,230.59 2,666.28 31,995.41 D 16.15 1,292.12 2,799.60 33,595.24 E 16.96 1,356.74 2,939.60 35,275.15 061 A 14.05 1,124.05 2,435.44 29,225.28 B 14.75 1,180.25 2,557.20 30,686.40 C 15.49 1,239.27 2,685.07 32,220.89 D 16.27 1,301.23 2,819.33 33,831.98 E 17.08 1,366.28 2,960.28 35,523.40 062 A 14.21 1,136.90 2,463.29 29,559.50 B 14.92 1,193.76 2,586.48 31,037.75 C 15.67 1,253.43 2,715.76 32,589.12 D 16.45 1,316.11 2,851.58 34,218.95 E 17.27 1,381.90 2,994.12 35,929.39 063 A 14.33 1,146.74 2,484.60 29,815.25 B 15.05 1,204.09 2,608.86 31,306.36 C 15.80 1,264.29 2,739.30 32,871.65 D 16.59 1,327.51 2,876.26 34,515.14 E 17.42 1,393.88 3,020.07 36,240.84 064 A 14.45 1,155.67 2,503.95 30,047.43 B 15.17 1,213.46 2,629.17 31,550.05 C 15.93 1,274.14 2,760.64 33,127.66 D 16.72 1,337.85 2,898.67 34,784.01 E 17.56 1,404.72 3,043.57 36,522.83 Page 2 of 23 CITY OF NATIONAL CITY NCMEA SALARY SCHEDULE EFFECTIVE DATE: Fiscal Year 2012-2013 RANGE STEP HOURLY BIWEEKLY MONTHLY ANNUAL 065 A 14.57 1,165.47 2,525.18 30,302.11 B 15.30 1,223.75 2,651.47 31,817.59 C 16.06 1,284.94 2,784.03 33,408.32 D 16.86 1,349.17 2,923.19 35,078.32 E 17.71 1,416.64 3,069.39 36,832.68 066 A 14.69 1,175.39 2,546.69 30,560.26 B 15.43 1,234.17 2,674.03 32,088.33 C 16.20 1,295.87 2,807.73 33,692.72 D 17.01 1,360.67 2,948.12 35,377.45 E 17.86 1,428.69 3,095.50 37,146.00 067 A 14.80 1,184.29 2,565.97 30,791.64 B 15.54 1,243.50 2,694.25 32,330.96 C 16.32 1,305.69 2,828.99 33,947.93 D 17.14 1,370.97 2,970.44 35,645.25 E 17.99 1,439.50 3,118.91 37,426.92 068 A 14.93 1,194.20 2,587.44 31,049.27 B 15.67 1,253.93 2,716.85 32,602.24 C 16.46 1,316.62 2,852.67 34,232.07 D 17.28 1,382.45 2,995.30 35,943.58 E 18.14 1,451.57 3,145.07 37,740.79 069 A 15.06 1,205.02 2,610.87 31,330.46 B 15.82 1,265.27 2,741.42 32,897.09 C 16.61 1,328.52 2,878.47 34,541.65 D 17.44 1,394.95 3,022.39 36,268.69 E 18.31 1,464.70 3,173.52 38,082.23 070 A 15.16 1,212.76 2,627.65 31,531.84 B 15.92 1,273.40 2,759.03 33,108.38 C 16.71 1,337.07 2,896.99 34,763.92 D 17.55 1,403.91 3,041.81 36, 501.68 E 18.43 1,474.12 3,193.92 38,327.00. 071 A 15.31 1,224.72 2,653.56 31,842.76 B 16.07 1,285.96 2,786.24 33,434.83 C 16.88 1,350.25 2,925.54 35,106.44 D 17.72 1,417.76 3,071.82 36,861.87 E 18.61 1,488.66 3,225.43 38,705.13 Page 3 of 23 CITY OF NATIONAL CITY NCMEA SALARY SCHEDULE EFFECTIVE DATE: Fiscal Year 2012-2013 RANGE STEP HOURLY BIWEEKLY MONTHLY ANNUAL 072 A 15.44 1,235.58 2,677.09 32,125.02 B 16.22 1,297.37 2,810.96 33,731.55 C 17.03 1,362.23 2,951.49 35,417.89 D 17.88 1,430.34 3,099.07 37,188.85 E 18.77 1,501.85 3,254.02 39,048.19 073 A 15.61 1,248.42 2,704.91 32,458.97 B 16.39 1,310.84 2,840.15 34,081.83 C 17.20 1,376.39 2,982.18 35,786.11 D 18.07 1,445.20 3,131.27 37,575.29 E 18.97 1,517.46 3,287.83 39,453.90 tt 074 A 15.74 1,259.35 2,728.59 32,743.10 B 16.53 1,322.31 2,865.01 34, 380.16 C 17.36 1,388.43 3,008.26 36,099.17 D 18.22 1,457.85 3,158.68 37,904.14 E 19.13 1,530.76 3,316.64 39,799.63 075 A 15.88 1,270.14 2,751.98 33,023.76 B 16.67 1,333.64 2,889.56 34,674.74 C 17.50 1,400.33 3,034.04 36,408.48 D 18.38 1,470.34 3,185.73 38,228.72 E 19.30 1,543.86 3,345.02 40,140.27 076 A 16.03 1,282.04 2,777.76 33,333.07 B 16.83 1,346.15 2,916.65 34,999.85 C 17.67 1,413.45 3,062.47 36,749.66 D 18.55 1,484.13 3,215.61 38,587.30 E 19.48 1,558.34 3,376.40 40,516.80 ** 077 A 16.15 1,291.72 2,798.73 33,584.80 B 16.95 1,356.30 2,938.66 35,263.90 C 17.80 1,424.13 3,085.61 37,027.37 D 18.69 1,495.33 3,239.89 38,878.67 E 19.63 1,570.09 3,401.86 40,822.36 Page 4 of 23 CITY OF NATIONAL CITY NCMEA SALARY SCHEDULE EFFECTIVE DATE: Fiscal Year 2012-2013 RANGE STEP HOURLY BIWEEKLY MONTHLY ANNUAL *078 A 16.33 1,306.44 2,830.62 33,967.48 B 17.15 1,371.77 2,972.18 35,666.14 C 18.00 1,440.34 3,120.74 37,448.88 D 18.90 1,512.37 3,276.80 39,321.61 E 19.85 1,588.00 3,440.67 41,288.07 ** 079 A 16.44 1,315.59 2,850.44 34,205.29 B 17.27 1,381.37 2,992.98 35,915.73 C 18.13 1,450.45 3,142.63 37,711.60 D 19.04 1,522.97 3,299.76 39,597.18 E 19.99 1,599.12 3,464.75 41,577.02 ** 080 A 16.59 1,327.40 2,876.04 34,512.46 B 17.42 1,393.78 3,019.85 36,238.16 C 18.29 1,463.48 3,170.86 38,050.36 D 19.21 1,536.63 3,329.36 39,952.28 E 20.17 1,613.46 3,495.84 41,950.07 ** 081 ** A 16.70 1,336.21 2,895.12 34, 741.43 B 17.54 1,403.00 3,039.84 36,478.11 C 18.41 1,473.17 3,191.86 38,302.36 D 19.34 1,546.81 3,351.43 40, 217.13 E 20.30 1,624.17 3,519.03 42,228.31 082 A 16.89 1,350.99 2,927.14 35,125.72 B 17.73 1,418.53 3,073.47 36,881.68 C 18.62 1,489.45 3,227.15 38,725.75 D 19.55 1,563.92 3,388.50 40,661.95 E 20.53 1,642.12 3,557.92 42,695.09 083 A 17.01 1,360.89 2,948.59 35,383.08 B 17.86 1,428.93 3,096.01 37,152.16 C 18.75 1,500.38 3,250.82 39,009.89 D 19.69 1,575.40 3,413.36 40,960.28 E 20.68 1,654.17 3,584.03 43,008.41 084 A 17.13 1,370.77 2,969.99 35,639.90 B 17.99 1,439.30 3,118.49 37,421.84 C 18.89 1,511.26 3,274.39 39,292.69 D 19.84 1,586.83 3,438.13 41,257.54 E 20.83 1,666.17 3,610.03 43,320.40 Page 5 of 23 CITY OF NATIONAL CITY NCMEA SALARY SCHEDULE EFFECTIVE DATE: Fiscal Year 2012-2013 RANGE STEP HOURLY BIWEEKLY MONTHLY ANNUAL 085 A 17.28 1,382.65 2,995.74 35,948.94 B 18.15 1,451.80 3,145.56 37,746.68 C 19.05 1,524.37 3,302.80 39,633.60 D 20.01 1,600.60 3,467.97 41,615.58 E 21.01 1,680.63 3,641.37 43,696.39 086 A 17.49 1,399.38 3,031.99 36,383.84 B 18.37 1,469.35 3,183.58 38,203.01 C 19.29 1,542.81 3,342.75 40,112.96 D 20.25 1,619.94 3,509.88 42,118.51 E 21.26 1,700.94 1,635.37 44,224.49 087 A 17.60 1,408.26 3,051.22 36,614.69 B 18.48 1,478.67 3,203.78 38,445.37 C 19.41 1,552.59 3,363.95 40,367.37 D 20.38 1,630.21 3,532.13 42,385.51 E 21.40 1,711.74 3,708.76 44,505.15 088 A 17.79 1,423.10 3,083.38 37,000.59 B 18.68 1,494.24 3,237.52 38,850.28 C 19.61 1,568.96 3,399.41 40,792.90 D 20.59 1,647.40 3,569.37 42,832.47 E 21.62 1,729.77 3,747.84 44,974.06 089 A 17.99 1,438.92 3,117.66 37,411.93 B 18.89 1,510.89 3,273.59 39,283.05 C 19.83 1,586.43 3,437.26 41,247.09 D 20.82 1,665.75 3,609.12 43,309.42 E 21.86 1,749.03 3,789.57 45,474.85 090 A 18.11 1,448.73 3,138.91 37,666.87 B 19.01 1,521.16 3,295.84 39,550.04 C 19.97 1,597.21 3,460.62 41,527.48 D 20.96 1,677.08 3,633.67 43,604.00 E 22.01 1,760.93 3,815.35 45,784.16 091 A 18.27 1,461.45 3,166.47 37, 997.61 B 19.18 1,534.54 3,324.83 39,897.92 C 20.14 1,611.26 3,491.06 41,892.76 D 21.15 1,691.81 3,665.58 43,986.95 E 22.21 1,776.41 3,848.89 46,186.66 Page 6 of 23 CITY OF NATIONAL CITY NCMEA SALARY SCHEDULE EFFECTIVE DATE: Fiscal Year 2012-2013 RANGE STEP HOURLY BIWEEKLY MONTHLY ANNUAL 092 A 18.41 1,472.49 3,190.39 38,284.69 B 19.33 1,546.11 3,349.91 40,198.92 C 20.29 1,623.42 3,517.42 42,209.03 D 21.31 1,704.59 3,693.27 44,319.29 E 22.37 1,789.81 3,877.92 46, 535.07 093 A 18.62 1,489.22 3,226.63 38,719.60 B 19.55 1,563.66 3,387.94 40,655.25 C 20.52 1,641.86 3,557.37 42,688.39 D 21.55 1,723.94 3,735.21 44,822.49 E 22.63 1,810.15 3,922.00 47,063.98 094 A 18.77 1,501.97 3,254.26 39,051.13 B 19.71 1,577.04 3,416.93 41,003.13 C 20.70 1,655.90 3,587.78 43,053.40 D 21.73 1,738.70 3,767.19 45,206.25 E 22.82 1,825.63 3,955.54 47,466.48 095 A 18.90 1,511.84 3,275.66 39,307.95 B 19.84 1,587.46 3,439.49 41,273.87 C 20.84 1,666.83 3,611.46 43,337.54 D 21.88 1,750.16 3,792.00 45,504.04 E 22.97 1,837.66 3,981.61 47,779.27 096 A 19.06 1,524.77 3,303.67 39,644.04 B 20.01 1,601.00 3,468.84 41,626.03 C 21.01 1,681.05 3,642.28 43,707.37 D 22.06 1,765.11 3,824.41 45, 892.89 E 23.17 1,853.38 4,015.66 48,187.93 097 A 19.26 1,540.55 3,337.86 40,054.31 B 20.22 1,617.57 3,504.74 42,056.92 C 21.23 1,698.46 3,680.00 44,159.95 D 22.29 1,783.36 3,863.95 46,367.43 E 23.41 1,872.54 4,057.17 48,686.04 098 A 19.40 1,552.40 3,363.52 40,362.28 B 20.38 1,630.02 3,531.70 42,380.42 C 21.39 1,711.51 3,708.27 44,499.25 D 22.46 1,797.08 3,893.68 46,724.14 E 23.59 1,886.93 4,088.35 49,060.16 Page 7 of 23 CITY OF NATIONAL CITY NCMEA SALARY SCHEDULE EFFECTIVE DATE: Fiscal Year 2012-2013 RANGE STEP HOURLY BIWEEKLY MONTHLY ANNUAL 099 A 19.60 1,568.12 3,397.60 40,771.21 B 20.58 1,646.52 3,567.45 42,809.44 C 21.61 1,728.86 3,745.85 44,950.23 D 22.69 1,815.30 3,933.16 47,197.88 E 23.83 1,906.08 4,129.83 49,558.00 100 A 19.80 1,583.95 3,431.90 41,182.82 B 20.79 1,663.15 3,603.49 43,241.93 C 21.83 1,746.30 3,783.66 45,403.88 D 22.92 1,833.62 3,972.84 47,674.02 E 24.07 1,925.30 4.171.48 50,057.71 101 A 19.96 1,596.75 3,459.62 41,515.43 B 20.96 1,676.58 3,632.60 43,591.15 C 22.01 1,760.41 3,814.23 45,770.77 D 23.11 1,848.43 4,004.93 48,059.12 E 24.26 1,940.85 4,205.17 50,462.09 102 A 20.16 1,612.53 3,493.81 41,925.70 B 21.16 1,693.16 3,668.50 44,022.04 C 22.22 1,777.81 3,851.92 46,223.08 D 23.33 1,866.71 4,044.54 48,534.47 E 24.50 1,960.04 4,246.75 50,961.00 103 A 20.34 1,627.32 3,525.85 42,310.26 B 21.36 1,708.68 3,702.13 44,425.61 C 22.43 1,794.12 3,887.25 46,647.01 D 23.55 1,883.81 4,081.58 48,979.01 E 24.73 1,978.00 4,285.67 51,428.04 104 A 20.50 1,640.22 3,553.82 42,645.81 B 21.53 1,722.23 3,731.50 44,778.03 C 22.60 1,808.34 3,918.07 47,016.84 D 23.73 1,898.76 4,113.99 49,367.86 E 24.92 1,993.71 4,319.70 51,836.44 105 A 20.70 1,656.02 3,588.05 43,056.62 B 21.74 1,738.80 3,767.41 45,208.92 C 22.82 1,825.77 3,955.83 47,469.96 D 23.96 1,917.04 4,153.58 49,842.94 E 25.16 2,012.89 4,361.26 52,335.08 Page 8 of 23 CITY OF NATIONAL CITY NCMEA SALARY SCHEDULE EFFECTIVE DATE: Fiscal Year 2012-2013 RANGE STEP HOURLY BIWEEKLY MONTHLY ANNUAL 106 A 20.86 1,668.86 3,615.86 43,390.30 6 21.90 1,752.30 3,796.65 45,559.74 C 23.00 1,839.91 3,986.47 47,837.65 D 24.15 1,931.90 4,185.78 50,229.37 E 25.36 2,028.49 4,395.07 52,740.80 107 A 21.05 1,683.75 3,648.13 43,777.53 B 22.10 1,767.95 3,830.57 45,966.80 C 23.20 1,856.34 4,022.07 48,264.79 D 24.36 1,949.15 4,223.16 50,677.94 E 25.58 2,046.61 4,434.32 53,211.86 108 A 21.24 1,699.43 3,682.09 44,185.13 B 22.30 1,784.38 3,866.16 46,393.94 C 23.42 1,873.61 4,059.49 48,713.89 D 24.59 1,967.30 4,262.48 51,149.80 E 25.82 2,065.67 4,475.61 53,707.29 109 A 21.46 1,717.19 3,720.57 44,646.81 B 22.54 1,803.06 3,906.62 46,879.46 C 23.66 1,893.19 4,101.91 49, 222.98 D 24.85 1,987.87 4,307.05 51,684.60 E 26.09 2,087.25 4,522.38 54,268.60 110 A 21.65 1,731.91 3,752.48 45,029.77 B 22.73 1,818.52 3,940.12 47,281.43 C 23.87 1,9'09.43 4,137.11 49,645.30 D 25.06 2,004.92 4,343.98 52,127.81 E 26.31 2,105.16 4,561.17 54,734.04 111 A 21.84 1,746.81 3,784.75 45,417.01 B 22.93 1,834.15 3,974.00 47,687.95 C 24.07 1,925.85 4,172.68 50,072.17 D 25.28 2,022.16 4,381.34 52,576.10 E 26.54 2,123.27 4,600.42 55,205.10 112 A 22.03 1,762.55 3,818.85 45,826.20 B 23.13 1,850.67 4,009.79 48,117.50 C 24.29 1,943.20 4,210.26 50,523.15 D 25.50 2,040.36 4,420.78 53,049.31 E 26.78 2,142.37 4,641.80 55,701.60 Page 9 of 23 CITY OF NATIONAL CITY NCMEA SALARY SCHEDULE EFFECTIVE DATE: Fiscal Year 2012-2013 RANGE STEP HOURLY BIWEEKLY MONTHLY ANNUAL 113 A 22.25 1,780.27 3,857.26 46,287.09 B 23.37 1,869.27 4,050.10 48,601.15 C 24.53 1,962.76 4,252.64 51,031.70 D 25.76 2,060.89 4,465.25 53,583.03 E 27.05 2,163.92 4,688.49 56,261.83 114 A - 22.45 1,796.04 3,891.42 46,697.09 B 23.57 1,885.85 4,086.00 49,032.04 C 24.75 1,980.14 4,290.31 51,483.75 D 25.99 2,079.14 4,504.80 54,057.57 E 27.29 2,183.10 4,73004 56,760.48 115 A 22.66 1,812.86 3,927.87 47,134.41 B 23.79 1,903.53 4,124.32 49,491.85 C 24.98 1,998.69 4,330.50 51,966.05 D 26.23 2,098.64 4,547.04 54,564.52 E 27.54 2,203.56 4,774.38 57,292.60 116 A 22.86 1,828.66 3,962.10 47,545.21 B 24.00 1,920.11 4,160.23 49,922.74 C 25.20 2,016.10 4,368.22 52,418.64 D 26.46 2,116.92 4,586.66 55,039.86 E 27.78 2,222.77 4,816.00 57,792.04 117 A 23.04 1,843.46 3,994.17 47,930.04 B 24.20 1,935.64 4,193.88 50,326.58 C 25.41 2,032.41 4,403.55 52,842.56 D 26.68 2,134.04 4,623.75 55,484.95 E 28.01 2,240.73 4,854.92 58,259.09 118 A 23.27 1,861.35 4,032.93 48,395.21 B 24.43 1,954.41 4,234.57 50,814.78 C 25.65 2,052.13 4,446.28 53,355.40 D 26.93 2,154.75 4,668.62 56,023.49 E 28.28 2,262.48 4,902.03 58,824.41 119 A 23.46 1,877.13 4,067.12 48,805.48 B 24.64 1,971.00 4,270.50 51,245.94 C 25.87 2,069.56 4,484.04 53,808.52 D 27.16 2,173.02 4,708.21 56,498.57 E 28.52 2,281.67 4,943.61 59,323.32 Page 10 of 23 CITY OF NATIONAL CITY NCMEA SALARY SCHEDULE EFFECTIVE DATE: Fiscal Year 2012-2013 RANGE STEP HOURLY BIWEEKLY MONTHLY ANNUAL 120 A 23.70 1,895.73 4,107.40 49,288.86 B 24.88 1,990.51 4,312.76 51,753.15 C 26.13 2,090.06 4,528.45 54,341.44 D 27.43 2,194.54 4,754.83 57,058.00 E 28.80 2,304.27 4,992.60 59,911.14 121 A 23.93 1,914.55 4,148.20 49,778.40 B 25.13 2,010.29 4,355.63 52,267.60 C 26.38 2,110.80 4,573.40 54,880.79 D 27.70 2,216.34 4,802.08 57,624.94 E 29.09 2,327.16 5,042.18 60,506.20 122 A 24.14 1,931.33 4,184.55 50,214.64 B 25.35 2,027.91 4,393.79 52,725.54 C 26.62 2,129.30 4,613.48 55,361.76 D 27.95 2,235.78 4,844.19 58,130.27 E 29.34 2,347.57 5,086.39 61,036.71 123 A 24.40 1,952.10 4,229.54 50,754.53 B 25.62 2,049.72 4,441.06 53,292.74 C 26.90 2,152.21. 4,663.11 55,957.35 D 28.25 2,259.80 4,896.23 58,754.78 E 29.66 2,372.79 5,141.05 61,692.55 124 A 24.58 1,966.79 4,261.37 51,136.41 B 25.81 2,065.12 4,474.42 53,693.10 C 27.10 2,168.39 4,698.17 56,378.06 D 28.46 2,276.80 4,933.08 59,196.92 E 29.88 2,390.64 5,179.72 62,156.65 125 A 24.81 1,984.68 4,300.13 51,601.58 B 26.05 2,083.91 4,515.13 54,181.56 C 27.35 2,188.11 4,740.91 56,890.90 D 28.38 2,270.39 4,919.17 59,030.08 E 30.15 2,412.37 5,226.81 62,721.71 126 A 25.06 2,004.45 4,342.98 52,115.75 B 26.31 2,104.67 4,560.12 54,721.45 C 27.62 2,209.90 4,788.11 57,457.29 D 29.00 2,320.39 5,027.52 60,330.25 E 30.46 2,436.41 5,278.90 63,346.75 Page 11 of 23 CITY OF NATIONAL CITY NCMEA SALARY SCHEDULE EFFECTIVE DATE: Fiscal Year 2012-2013 RANGE STEP HOURLY BIWEEKLY MONTHLY ANNUAL 127 A 25.25 2,020.11 4,376.90 52,522.81 B 26.51 2,121.13 4,595.78 55,149.39 C 27.84 2,227.18 4,825.56 57,906.66 D 29.23 2,338.53 5,066.82 60,801.85 E 30.69 2,455.47 5,320.18 63,842.18 128 A 25.50 2,039.95 4,419.88 53,038.59 B 26.77 2,141.94 4,640.86 55,690.35 C 28.11 2,249.04 4,872.91 58,474.93 D 29.52 2,361.49 5,116.56 61,398.77 E 30.99 2.479.57 5,372.40 64,468.83 129 A 25.73 2,058.60 4,460.30 53,523.58 B 27.02 2,161.53 4,683.31 56,199.70 C 28.37 2,269.62 4,917.50 59,010.00 D 29.79 2,383.10 5,163.38 61,960.62 E 31.28 2,502.24 5,421.52 65,058.26 130 A 25.95 2,076.29 4,498.64 53,983.66 B 27.25 2,180.12 4,723.59 56,683.08 C 28.61 2,289.12 4,959.77 59,517.21 D 30.04 2,403.58 5,207.75 62,493.00 E 31.55 2,523.75 5,468.12 65,617.43 131 A 26.20 2,096.03 4,541.40 54,496.76 B 27.51 2,200.83 4,768.47 57,221.63 C 28.89 2,310.87 5,006.88 60,082.54 D 30.33 2,426.42 5,257.25 63,086.99 E 31.85 2,547.75 5,520.12 66,241.40 132 A 26.45 2,115.86 4,584.36 55,012.28 B 27.77 2,221.66 4,813.59 57,763.12 C 29.16 2,332.74 5,054.28 60,651.34 D 30.62 2,449.36 5,306.95 63,683.38 E 32.15 2,571.84 5,572.32 66,867.79 133 A 26.68 2,134.61 4,625.00 55,499.94 6 28.02 2,241.36 4,856.29 58,275.42 C 29.42 2,353.42 5,099.07 61,188.82 D 30.89 2,471.10 5,354.06 64,248.70 E 32.43 2,594.64 5,621.72 67,460.69 Page 12 of 23 CITY OF NATIONAL CITY NCMEA SALARY SCHEDULE EFFECTIVE DATE: Fiscal Year 2012-2013 RANGE STEP HOURLY BIWEEKLY MONTHLY ANNUAL 134 A 26.95 2,156.28 4,671.95 56,063.39 B 28.30 2,264.10 4,905.56 58,866.72 C 29.72 2,377.30 5,150.82 61,809.85 D 31.20 2,496.17 5,408.38 64,900.53 E 32.76 2,620.99 5,678.81 68,145.73 135 A 27.16 2,173.18 4,708.55 56,502.59 B • 28.52 2,281.83 4,943.97 59,327.61 C 29.95 2,395.93 5,191.19 62,294.30 D 31.45 2,515.71 5,450.71 65,408.54 E 33.02 2,641.52 5,723.29 68,679.45 136 A 27.43 2,194.77 4,755.32 57,063.90 B 28.81 2,304.50 4,993.09 59,917.04 C 30.25 2,419.74 5,242.77 62,913.18 D 31.76 2,540.71 5,504.87 66,058.49 E 33.35 2,667.75 5,780.13 69,361.54 137 A 27.69 2,215.48 4,800.20 57,602.44 B 29.08 2,326.26 5,040.22 60,482.63 C 30.53 2,442.55 5,292.20 63,506.36 D 32.06 2,564.68 5,556.81 66,681.66 E 33.66 2,692.91 5,834.65 70,015.77 138 A 27.94 2,235.37 4,843.30 58,119.56 B 29.34 2,347.11 5,085.41 61,024.93 C 30.81 2,464.49 5,339.73 64,076.77 D 32.35 2,587.71 5,606.71 67,280.47 E 33.96 2,717.09 5,887.03 70,644.30 139 A 28.22 2,257.97 4,892.26 58,707.12 B 29.64 2,370.86 5,136.87 61,642.47 C 31.12 2,489.40 5,393.69 64,724.31 D 32.67 2,613.87 5,663.39 67,960.68 E 34.31 2,744.57 5,946.57 71,358.79 140 A 28.48 2,278.74 4,937.27 59,247.27 B 29.91 2,392.68 5,184.14 62,209.67 C 31.40 2,512.30 5,443.33 65,319.90 D 32.97 2,637.91 5,715.48 68,585.72 E 34.62 2,769.81 6,001.26 72,015.17 Page 13 of 23 CITY OF NATIONAL CITY NCMEA SALARY SCHEDULE EFFECTIVE DATE: Fiscal Year 2012-2013 RANGE STEP HOURLY BIWEEKLY MONTHLY ANNUAL 141 A 28.77 2,301.43 4,986.44 59,837.23 B 30.21 2,416.50 5,235.76 62,829.09 C 31.72 2,537.31 5,497.51 65,970.12 D 33.30 2,664.20 5,772.43 69,269.15 E 34.97 2,797.40 6,061.03 72,732.34 142 A 29.01 2,321.13 5,029.11 60,349.27 6 30.46 2,437.19 5,280.57 63,366.84 C 31.99 2,559.06 5,544.62 66,535.45 D 33.59 2,687.01 5,821.86 69,862.33 E 35.27 2,821.36 6;112.94 73,355.24 143 A 29.27 2,341.86 5,074.03 60,888.35 B 30.74 2,458.95 5,327.72 63,932.70 C 32.27 2,581.90 5,594.12 67,129.43 D 33.89 2,710.99 5,873.81 70,485.76 E 35.58 2,846.54 6,167.50 74, 010.01 144 A 29.54 2,363.51 5,120.94 61,451.26 B 31.02 2,481.67 5,376.96 64,523.46 C 32.57 2,605.75 5,645.78 67,749.38 D 34.20 2,736.04 5,928.09 71,137.05 E 35.91 2,872.85 6,224.50 74,693.97 145 A 29.83 2,386.31 5,170.35 62,044.17 B 31.32 2,505.63 5,428.86 65,146.37 C 32.89 2,630.92 5,700.32 68,403.89 D 34.53 2,762.45 5,985.31 71,823.69 E 36.26 2,900.58 6,284.60 75,415.16 146 A 30.14 2,410.92 5,223.66 62,683.95 B 31.64 2,531.46 5,484.83 65,818.01 C 33.23 2,658.03 5,759.06 69,108.74 D 34.89 2,790.94 6,047.04 72,564.43 E 36.63 2,930.49 6,349.40 76,192.85 147 A 30.40 2,431.68 5,268.63 63,223.56 B 31.92 2,553.26 5,532.06 66,384.67 C 33.51 2,680.93 5,808.67 69,704.06 D 35.19 2,814.97 6,099.10. 73,189.20 E 36.95 2,955.72 6,404.06 76,848.69 Page 14 of 23 CITY OF NATIONAL CITY NCMEA SALARY SCHEDULE EFFECTIVE DATE: Fiscal Year 2012-2013 RANGE STEP HOURLY BIWEEKLY MONTHLY ANNUAL 148 A 30.68 2,454.33 5,317.70 63,812.46 B 32.21 2,577.05 5,583.61 67,003.29 C 33.82 2,705.89 5,862.77 70,353.20 D 35.51 2,841.18 6,155.90 73,870.76 E 37.29 2,983.25 6,463.71 77,564.52 149 A 30.98 2,478.15 5,369.32 64,431.88 B 32.53 2,602.06 5,637.79 67,653.51 C 34.15 2,732.16 5,919.67 71,036.09 D 35.86 2,868.77 6,215.66 74,587.92 E 37.65 3,012.20 6,526.44 78,317.31 150 A 31.26 2,500.73 5,418.24 65,018.89 B 32.82 2,625.77 5,689.17 68,269.99 C 34.46 2,757.04 5,973.59 71,683.10 D 36.19 2,894.91 6,272.30 75,267.60 E 38.00 3,039.63 6,585.87 79,030.46 151 A 31.51 2,520.46 5,461.00 65,532.00 6 33.08 2,646.46 5,734.00 68,808.00 C 34.73 2,778.80 6,020.72 72,248.69 D 36.47 2,917.73 6,321.75 75,861.05 E 38.30 3,063.62 6,637.85 79,654.16 152 A 31.83 2,546.09 5,516.52 66,198.29 B 33.42 2,673.40 5,792.36 69,508.29 C 35.09 2,807.05 6,081.94 72,983.27 D 36.84 2,947.41 6,386.05 76,632.58 E 38.68 3,094.77 6,705.33. 80,463.99 153 A 32.13 2,570.79 5,570.04 66,840.47 B 33.74 2,699.33 5,848.55 70,182.61 C 35.43 2,834.30 6,140.99 73,691.87 D 37.20 2,976.01 6,448.02 77,376.26 E 39.06 3,124.80 6,770.41 81,244.90 154 A 32.43 2,594.50 5,621.41 67,456.95 B 34.05 2,724.22 5,902.47 70,829.62 C 35.76 2,860.44 6,197.63 74,371.54 D 37.54 3,003.45 6,507.47 78,089.68 E 39.42 3,153.62 6,832.85 81,994.20 Page 15 of 23 CITY OF NATIONAL CITY NCMEA SALARY SCHEDULE EFFECTIVE DATE: Fiscal Year 2012-2013 RANGE STEP HOURLY BIWEEKLY MONTHLY ANNUAL 155 A 32.75 2,620.23 5,677.16 68,125.91 B 34.39 2,751.23 5,961.00 71,532.06 C 36.11 2,888.80 6,259.07 75,108.79 D 37.92 3,033.26 6,572.06 78,864.69 E 39.81 3,184.91 6,900.65 82,807.78 156 A 33.06 2,645.00 5,730.83 68,769.97 B 34.72 2,777.24 6,017.35 72,208.25 C 36.45 2,916.11 6,318.23 75,818.73 D 38.27 3,061.91 6,634.14 79,609.71 E 40.19 3.215.23 6.966.33 83,595.91 157 A 33.37 2,669.46 5,783.83 69,405.99 B 35.04 2,802.95 6,073.06 72,876.68 C 36.79 2,943.09 6,376.70 76,520.37 D 38.63 3,090.23 6,695.49 80,345.89 E 40.56 3,244.75 7,030.29 84,363.43 158 A 33.66 2,693.17 5,835.21 70,022.47 B 35.35 2,827.82 6,126.95 73,523.42 C 37.12 2,969.22 6,433.31 77,199.78 D 38.97 3,117.69 6,754.99 81,059.85 E 40.92 3,273.57 7,092.73 85,112.73 159 A 33.99 2,718.85 5,890.84 70,690.09 B 35.68 2,854.80 6,185.40 74,224.79 C 37.47 2,997.54 6,494.66 77,935.96 D 39.34 3,147.40 6,819.37 81,832.45 E 41.31 3,304.80 7,160.39 85,924.70 160 A 21.28 1,702.78 3,689.35 44,272.16 B 22.35 1,787.92 3,873.82 46,485.80 C 23.47 1,877.32 4,067.52 48,810.30 D 24.64 1,971.19 4,270.92 51,251.03 E 25.87 2,069.75 4,484.47 53,813.61 161 A 34.64 2,771.14 6,004.14 72,049.72 B 36.37 2,909.70 6,304.35 75,652.16 C 38.19 3,055.17 6,619.53 79,434.30 D 40.10 ------3,207.94 6,950.53 83,406.31 E 42.10 3,368.33 7,298.04 87,576.49 Page 16 of 23 CITY OF NATIONAL CITY NCMEA SALARY SCHEDULE EFFECTIVE DATE: Fiscal Year 2012-2013 RANGE STEP HOURLY BIWEEKLY MONTHLY ANNUAL 162 A 34.97 2,797.90 6,062.12 72,745.46 B 36.72 2,937.79 6,365.20 76,382.45 C 38.56 3,084.69 6,683.48 80,201.82 D 40.49 3,238.90 7,017.61 84,211.32 E 42.51 3,400.84 7,368.49 88,421.94 163 A 35.26 2,820.53 6,111.15 73,333.82 B 37.02 2,961.56 6,416.71 77,000.53 C 38.87 3,109.65 6,737.58 80,850.96 D 40.81 3,265.13 7,074.45 84,893.40 E 42.85 3,428.39 7,428.17 89,138.03 164 A 35.63 2,850.10 6,175.22 74,102.67 B 37.41 2,992.60 6,483.97 77,807.68 C 39.28 3,142.24 6,808.19 81,698.28 D 41.24 3,299.35 7,148.59 85,783.04 E 43.30 3,464.30 7,505.99 90,071.85 165 A 35.97 2,877.81 6,235.25 74,823.05 B 37.77 3,021.69 6,547.00 78,563.95 C 39.66 3,172.78 6,874.36 82,492.31 D 41.64 3,331.41 7,218.06 86,616.70 E 43.72 3,497.99 7,578.99 90,947.83 166 A 36.34 2,907.36 6,299.28 75,591.37 B 38.16 3,052.73 6,614.26 79,371.10 C 40.07 3,205.38 6,944.99 83,339.90 D 42.07 3,365.63 7,292.19 87,506.33 E 44.17 3,533.92 7,656.83 91,881.91 167 A 36.67 2,934.00 6,356.99 76,283.90 B 38.51 3,080.70 6,674.85 80,098.18 C 40.43 3,234.73 7,008.57 84,102.86 D 42.46 3,396.48 7,359.03 88,308.39 E 44.58 3,566.29 7,726.97 92,723.61 168 A 37.07 2,965.58 6,425.41 77;104.98 B 38.92 3,113.83 6,746.64 80,959.69 C 40.87 3,269.54 7,084.00 85,008.02 D 42.91 3,433.02 7,438.21 89,258.54 E 45.06 3,604.67 7,810.12 93,721.43 Page 17 of 23 CITY OF NATIONAL CITY NCMEA SALARY SCHEDULE EFFECTIVE DATE: Fiscal Year 2012-2013 RANGE STEP HOURLY BIWEEKLY MONTHLY ANNUAL 169 A 37.42 2,993.32 6,485.54 77,826.43 B 39.29 3,142.99 6,809.82 81,717.83 C 41.25 3,300.12 7,150.26 85,803.12 D 43.31 3,465.15 7,507.82 90,093.81 E 45.48 3,638.40 7,883.21 94,598.48 ** 170 A 37.77 3,021.83 6,547.31 78,567.70 B 39.66 3,172.93 6,874.67 82,496.06 C 41.64 3,331.58 7,218.42 86,620.98 D 43.73 3,498.15 7,579.32 90,951.84 E 45.91 3,673.06 7,958.30 95,499.62 171 A 38.20 3,056.34 6,622.07 79,464.83 B 40.11 3,209.15 6,953.16 83,437.91 C 42.12 3,369.60 7,300.81 87,609.70 D 44.23 3,538.10 7,665.89 91,990.64 E 46.44 3,715.00 8,049.18 96,590.10 172 A 38.56 3,085.07 6,684.31 80,211.72 B 40.49 3,239.33 7,018.55 84,222.56 C 42.52 3,401.30 7,369.48 88,433.72 D 44.64 3,571.35 7,737.92 92,855.10 E 46.87 3,749.93 8,124.85 97,498.21 173 A 38.96 3,116.59 6,752.62 81,031.46 B 40.91 3,272.42 7,090.25 85,083.01 C 42.95 3,436.05 7,444.77 89,337.28 D 45.10 3,607.83 7,816.97 93,803.65 E 47.35 3,788.23 8,207.82 98,493.89 174 A 39.34 3,147.13 6,818.79 81,825.49 B 41.31 3,304.49 7,159.72 85,916.67 C 43.37 3,469.72 7,517.73 90,212.71 D 45.54 3,643.20 7,893.61 94,723.27 E 47.82 3,825.37 8,288.30 99,459.58 175 A 39.72 3,177.78 6,885.18 82,622.19 B 41.71 3,336.67 7,229.46 86,753.54 C 43.79 3,503.48 7,590.88 91,090.56 D 45.98 3,678.69 7,970.49 95,645.84 E 48.28 3,862.59 8,368.95 100,427.41 Page 18 of 23 CITY OF NATIONAL CITY NCMEA SALARY SCHEDULE EFFECTIVE DATE: Fiscal Year 2012-2013 RANGE STEP HOURLY BIWEEKLY MONTHLY ANNUAL 176 A 40.12 3,209.39 6,953.67 83,444.07 B 42.12 3,369.87 7,301.39 87,616.66 C 44.23 3,538.36 7,666.44 91,997.33 D 46.44 3,715.27 8,049.76 96,597.07 E 48.76 3,901.03 8,452.24 101,426.84 177 A 40.55 3,243.91 7,028.48 84,341.74 B 42.58 3,406.09 7,379.85 88,558.25 C 44.70 3,576.40 7,748.86 92,986.32 D 46.94 3,755.20 8,136.28 97,635.33 E 49.29 3,942.99 8,543.15 102,517.86 178 A 40.94 3,275.52 7,096.97 85,163.61 B 42.99 3,439.30 7,451.83 89,421.90 C 45.14 3,611.26 7,824.40 93,892.82 D 47.40 3,791.83 8,215.64 98,587.62 E 49.77 3,981.42 8,626.42 103,517.02 179 A 41.36 3,308.96 7,169.41 86,032.89 B 43.43 3,474.42 7,527.90 90,334.83 C 45.60 3,648.14 7,904.30 94,851.55 D 47.88 3,830.54 8,299.50 99,594.02 E 50.28 4,022.06 8,714.46 104,573.49 180 A 41.74 3,339.59 7,235.78 86,829.33 B 43.83 3,506.56 7,597.55 91,170.64 C 46.02 3,681.90 7,977.45 95,729.39 D 48.32 3,865.99 8,376.32 100,515.78 E 50.74 4,059.29 8,795.13 105,541.59 181 A 42.18 3,374.07 7,310.49 87,725.92 B 44.28 3,542.78 7,676.02 92,112.22 C 46.50 3,719.93 8,059.84 96,718.11 D 48.82 3,905.91 8,462.81 101,553.78 E 51.27 4,101.20 8,885.94 106,631.27 182 A 42.62 3,409.64 7,387.55 88,650.64 B 44.75 3,580.14 7,756.96 93,083.53 C 46.99 3,759.13 8,144.78 97,737.36 D 49.34 3,947.09 8,552.04 102,624.44 E 51.81 4,144.44 8,979.62 107,755.49 Page 19 of 23 CITY OF NATIONAL CITY NCMEA SALARY SCHEDULE EFFECTIVE DATE: Fiscal Year 2012-2013 RANGE STEP HOURLY BIWEEKLY MONTHLY ANNUAL 183 A 43.03 3,442.26 7,458.23 89,498.76 B 45.18 3,614.39 7,831.19 93,974.23 C 47.44 3,795.10 8,222.71 98,672.52 D 49.81 3,984.86 8,633.87 103,606.46 E 52.30 4,184.09 9,065.52 108,786.25 184 A 43.47 3,477.70 7,535.02 90,420.26 B 45.64 3,651.58 7,911.75 94,940.99 C 47.93 3,834.16 8,307.36 99,688.28 D 50.32 4,025.89 8,722.76 104,673.11 E 52.84 4,227.17 9,158.87 109,906.46 185 A 43.90 3,512.30 7,609.98 91,319.80 B 46.10 3,687.93 7,990.50 95,886.06 C 48.40 3,872.34 8,390.06 100,680.75 D 50.82 4,065.94 8,809.53 105,714.32 E 53.37 4,269.25 9,250.04 111,000.42 186 A 44.37 3,549.80 7,691.24 92,294.86 B 46.59 3,727.29 8,075.80 96,909.59 C 48.92 3,913.66 8,479.60 101,755.16 D 51.37 4,109.35 8,903.59 106,843.09 E 53.93 4,314.79 9,348.72 112,184.63 187 A 44.78 3,582.43 7,761.94 93,143.25 B 47.02 3,761.55 8,150.02 97,800.29 C 49.37 3,949.62 8,557.50 102,690.05 D 51.84 4,147.11 8,985.40 107,824.85 E 54.43 4,354.45 9,434.64 113,215.66 188 A 45.24 3,618.83 7,840.80 94,089.66 B 47.50 3,799.79 8,232.89 98,794.63 C 49.87 3,989.77 8,644.49 103,733.94 D 52.37 4,189.25 9,076.70 108,920.42 E 54.98 4,398.73 9,530.58 114,366.94 189 A 45.72 3,657.39 7,924.34 95,092.03 B 48.00 3,840.26 8,320.57 99,846.82 C 50.40 4,032.27 8,736.60 104,839.15 D 52.92 4,233.89 9,173.42 110,081.06 E 55.57 4,445.57 9,632.07 115,584.89 Page 20 of 23 CITY OF NATIONAL CITY NCMEA SALARY SCHEDULE EFFECTIVE DATE: Fiscal Year 2012-2013 RANGE STEP HOURLY BIWEEKLY MONTHLY ANNUAL 190 A 46.14 3,690.96 7,997.09 95,965.06 B 48.44 3,875.51 8,396.94 100,763.23 C 50.87 4,069.27 8,816.76 105,801.09 D 53.41 4,272.73 9,257.58 111,090.94 E 56.08 4,486.39 9,720.52 116,646.18 191 A 46.59 3,727.47 8,076.18 96,914.14 B 48.92 3,913.82 8,479.95 101,759.45 C 51.37 4,109.51 8,903.95 106,847.38 D 53.94 4,315.00 9,349.17 112,189.99 E 56.63 4,530.74 9,816.61 117,799.33 192 A 47.08 3,766.01 8,159.69 97,916.25 B 49.43 3,954.30 8,567.66 102,811.90 C 51.90 4,152.02 8,996.05 107,952.59 D 54.50 4,359.63 9,445.86 113,350.37 E 57.22 4,577.60 9,918.13 119,017.55 193 A 47.56 3,804.48 8,243.04 98,916.48 B 49.93 3,994.71 8,655.21 103,862.48 C 52.43 4,194.45 9,087.97 109,055.66 D 55.05 4,404.18 9,542.38 114,508.60 E 57.80 4,624.37 10,019.47 120,233.63 194 A 48.04 3,842.91 8,326.30 99,915.64 B 50.44 4,035.07 8,742.64 104,911.72 C 52.96 4,236.82 9,179.78 110,157.39 D 55.61 4,448.65 9,638.75 115,664.96 E 58.39 4,671.08 10,120.68 121,448.10 195 A 48.49 3,879.40 8,405.37 100,864.46 B 50.92 4,073.36 8,825.62 105,907.40 C 53.46 4,277.05 9,266.95 111,203.41 D 56.14 4,490.89 9,730.27 116,763.21 E 58.94 4,715.44 10,216.79 122,601.52 196 A 48.97 3,917.88 8,488.75 101,864.96 B 51.42 4,113.77 8,913.17 106,957.98 C 53.99 4,319.47 9,358.85 112,306.21 D 56.69 4,535.44 9,826.79 117,921.45 E 59.53 4,762.22 10,318.13 123,817.60 Page 21 of 23 CITY OF NATIONAL CITY NCMEA SALARY SCHEDULE EFFECTIVE DATE: Fiscal Year 2012-2013 RANGE STEP HOURLY BIWEEKLY MONTHLY ANNUAL 197 A 49.48 3,958.50 8,576.74 102,920.90 B 51.96 4,156.42 9,005.58 108,066.94 C 54.55 4,364.25 9,455.88 113,470.61 D 57.28 4,582.44 9,928.62 119,143.42 E 60.14 4,811.56 10,425.05 125,100.63 198 A 49.95 3,995.94 8,657.86 103,894.35 B 52.45 4,195.72 9,090.72 109,088.60 C 55.07 4,405.52 9,545.28 114,543.42 D 57.82 4,625.79 10,022.55 120,270.59 E 60.71 4,857.08 10, 523.67 126, 284.04 199 A 50.47 4,037.34 8,747.58 104,970.91 B 52.99 4,239.20 9,184.94 110,219.25 C 55.64 4,451.17 9,644.19 115,730.31 D 58.42 4,673.72 10,126.39 121,516.66 E 61.34 4,907.40 10,632.71 127,592.51 200 A 50.97 4,077.83 8,835.30 106,023.63 B 53.52 4,281.73 9,277.08 111,325.00 C 56.20 4,495.82 9,740.93 116,891.22 D 59.01 4,720.60 10,227.97 122,735.69 E 61.96 4,956.63 10,739.36 128,872.32 201 A 51.49 4,119.19 8,924.90 107,098.84 B 54.06 4,325.13 9,371.13 112,453.50 C 56.77 4,541.39 9,839.69 118,076.23 D 59.61 4,768.47 10,331.68 123,980.15 E 62.59 5,006.88 10, 848.24 130,178.92 202 A 52.02 4,161.60 9,016.80 108,201.64 B 54.62 4,369.68 9,467.64 113,611.74 C 57.35 4,588.17 9,941.03 119,292.31 D 60.22 4,817.57 10,438.06 125,256.76 E 63.23 5,058.46 10,960.01 131,520.06 203 A 52.49 4,199.27 9,098.42 109,180.99 B 55.12 4,409.23 9,553.34 114,640.09 C 57.87 4,629.70 10,031.01 120,372.08 D 60.76 4,861.19 10,532.57 126,390.89 E 63.80 5,104.24 11,059.18 132,710.16 Page 22 of 23 CITY OF NATIONAL CITY NCMEA SALARY SCHEDULE EFFECTIVE DATE: Fiscal Year 2012-2013 RANGE STEP HOURLY BIWEEKLY MONTHLY ANNUAL 204 A 53.03 4,242.64 9,192.39 110,308.69 B 55.68 4,454.77 9,652.00 115,824.04 C 58.47 4,677.50 10,134.58 121,614.94 D 61.39 4,911.38 10,641.32 127,695.88 E 64.46 5,156.95 11,173.40 134, 080.77 205 A 53.58 4,286.04 9,286.41 111,436.94 B 56.25 4,500.34 9,750.73 117,008.78 C 59.07 4,725.36 10,238.28 122,859.41 D 62.02 4,961.65 10,750.25 129,003.01 E 65.12 5,209.71 11,287.70 135,452.44 206 A 54.11 4,328.47 9,378.36 112,540.27 B 56.81 4,544.89 9,847.25 118,167.02 C 59.65 4,772.14 10, 339.65 124, 075.76 D 62.63 5,010.75 10,856.63 130,279.61 E 65.77 5,261.28 11,399.44 136,793.31 207 A 54.66 4,372.82 9,474.45 113,693.42 B 57.39 4,591.44 9,948.12 119,377.47 C 60.26 4,821.03 10,445.56 125,346.74 D 63.28 5,062.07 10,967.82 131,613.79 E 66.44 5,315.18 11,516.23 138,194.71 208 A 55.23 4,418.15 9,572.67 114,872.01 B 57.99 4,639.07 10,051.32 120,615.78 C 60.89 4,871.01 10,553.86 126,646.37 D 63.93 5,114.56 11,081.54 132,978.50 E 67.13 5,370.29 11,635.62 139,627.44 Page 23 of 23 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: June 19, 2012 AGENDA ITEM NO. 1,6 EM TITLE: Resolution of the City Council of the City of National City approving a salary schedule for the Firefighters' Association employee group for fiscal year 2012-2013 in compliance with the requirements of the California Public Employee's Retirement System (Ca1PERS) PREPARED BY: Stacey Stevenson DEPARTMENT: .���,_an Res. +roes PHONE: 336-4308 APPROVED EXPLANATION: All employees of the City of National City receive a rate of pay within the established salary range for the job classification into which the employee has been hired. The purpose of this item is to establish the fiscal year 2012- 2013 salary schedule for classifications represented by the Firefighters' Association. FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: There is no fiscal impact associated with this action ENVIRONMENTAL REVIEW: ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Approve the resolution BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: volution ...;fighters' Association Salary Schedule RESOLUTION NO. 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING A SALARY SCHEDULE FOR THE FIREFIGHTERS' ASSOCIATION EMPLOYEE GROUP FOR FISCAL YEAR 2012-2013 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby approves the Fiscal Year 2012-2013 Salary Schedule for the Firefighters' Association Employee Group, attached hereto as Exhibit "A". PASSED and ADOPTED this 19th day of June, 2012. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney CITY OF NATIONAL CITY NCFFA SALARY SCHEDULE EFFECTIVE DATE: Fiscal Year 2012-2013 RANGE DESCRIPTION F121 FIREFIGHTER (0.25% Biweekly Monthly Annual 28/dy Pay Period 40-Hr Week 192 Shift 216 Shift 240 Shift Hourly = Annual/2912 STEP A STEP B STEP C STEP D STEP E STEP F STEP G Increase) 1,867.78 4,057.98 48,695.75 3,735.56 23.35 19.46 17.29 15.56 16.72 F130 FIRE ENGINEER (0.83% Increase) Biweekly Monthly Annual 28/dy Pay Period 40-Hr Week 96 192 Shift 108 216 Shift 120 240 Shift Hourly = Annual/2912 1,961.17 2,059.23 2,162.19 2,270.30 ,4,260.88 4,473.92 4,697.62 4,932.50 51,130.53 53,687.06 56,371.41 59,189.98 3,922.34 4,118.46 4,324.38 4,540.60 24.51 25.74 27.03 28.38 20.43 21.45 22.52 23.65 18.16 19.07 20.02 21.02 16.34 17.16 18.02 18.92 17.56 18.44 19.36 20.33 2,376.52 2,495.35 2,620.11 2,751.12 2,888.68 5,163.28 5,421.44 5,692.51 5,977.14 6,276.00 61,959.32 65,057.29 68,310.15 71,725.66 75,311.94 4,753.04 4,990.69 5,240.23 5,502.24 5,777.35 29.71 31.19 32.75 34.39 36.11 24.76 25.99 27.29 28.66 30.09 22.00 23.11 24.26 25.47 26.75 19.80 20.79 21.83 22.93 24.07 21.28 22.34 23.46 24.63 25.86 F140 FIRE CAPTAIN (0.85% Increase) Biweekly Monthly Annual 28/dy Pay Period 40-Hr Week 192 Shift 216 Shift 240 Shift Hourly = Annual/2912 F140 DEPUTY FIRE MARSHAL Biweekly Monthly Annual 28/dy Pay Period 40-Hr Week 192 Shift 216 Shift 240 Shift Hourly = Annual/2912 F150 FIRE BATTALION CHIEF Biweekly Monthly Annual 28/dy Pay Period 40-Hr Week 192 Shift 216 Shift 240 Shift Hourly = Annual/2912 2,787.48 2,926.86 3,073.20 3,226.86 3,388.20 6,056.14 6,358.95 6,676.89 7,010.74 7,361.28 72,673.68 76,307.36 80,122.73 84,128.87 88,335.31 5,574.96 5,853.71 6,146.40 6,453.72 6,776.40 34.84 36.59 38.41 40.34 42.35 29.04 30.49 32.01 33.61 35.29 25.81 27.10 28.46 29.88 31.37 23.23 24.39 25.61 26.89 28.24 24.96 26.20 27.51 28.89 30.33 (0.85% Increase) 2,787.48 2,926.86 3,073.20 3,226.86 3,388.20 6,056.14 6,358.95 6,676.89 7,010.74. 7,361.28 72,673.68 76,307.36 80,122.73 84,128.87 88,335.31 5,574.96 5,853.71 6,146.40 6,453.72 6,776.40 34.84 36.59 38.41 40.34 42.35 29.04 30.49 32.01 33.61 35.29 25.81 27.10 28.46 29.88 31.37 23.23 24.39 25.61 26.89 28.24 24.96 26.20 27.51 28.89 30.33 (1.17% Increase) 3,491.20 7,585.06 91,020.73 6,982.41 43.64 36.37 32.33 29.09 31.26 3,725.59 3,959.98 4,194.37 4,428.75 8,094.30 8,603.53 9,112.76 9,622.00 97,131.54 103, 242.35 109, 353.17 115, 463.98 7,451.18 7,919.96 8,388.73 8,857.51 46.57 49.50 52.43 55.36 38.81 41.25 43.69 46.13 34.50 36.67 38.84 41.01 31.05 33.00 34.95 36.91 33.36 35.45 37.55 39.65 2,383.81 2,503.01 5,179.12 5,438.08 62,149.48 65,256.96 4,767.63 5,006.01 29.80 31.29 24.83 26.07 22.07 23.18 19.87 20.86 21.34 22.41 EXHIBIT"A" CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: June 19.2012 AGENDA ITEM NO. 17 EM TITLE: Resolution of the City Council of the City of National City approving a salary schedule for the Police Officers' Association employee group for fiscal year 2012-2013 in compliance with the requirements of the California Public Employee's Retirement System (CaIPERS) PREPARED BY: Stacey Stevenson DEPARTMENT: PHONE: 336-4308 APPROVED EXPLANATION: rces All employees of the City of National City receive a rate of pay within the established salary range for the job classification into which the employee has been hired. The purpose of this item is to establish the fiscal year 2012- 2013 salary schedule for classifications represented by the Police Officers' Association. FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: There is no fiscal impact associated with this action ENVIRONMENTAL REVIEW: ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Approve the resolution BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: olution .,..ce Officers' Association Salary Schedule RESOLUTION NO. 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING A SALARY SCHEDULE FOR THE POLICE OFFICERS' ASSOCIATION EMPLOYEE GROUP FOR FISCAL YEAR 2012-2013 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby approves the Fiscal Year 2012-2013 Salary Schedule for the Police Officers' Association Employee Group, attached hereto as Exhibit "A". PASSED and ADOPTED this 19th day of June, 2012. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney CITY OF NATIONAL CITY NCPOA SALARY SCHEDULE EFFECTIVE DATE: Fiscal Year 2012-2013 RANGE DESCRIPTION STEP A STEP B STEP C STEP D STEP E POLICE LIEUTENANT P148 BI-WEEKLY 3,970.71 4,169.24 4,377.71 4,596.59 4,826.42 ANNUAL 103,238.42 108,400.34 113,820.36 119,511.38 125,486.94 MONTHLY 8,603.20 9,033.36 9,485.03 9,959.28 10,457.25 40/HR WEEK 49.63 52.12 54.72 57.46 60.33 POLICE SERGEANT P136 BI-WEEKLY 3,158.21 3,316.12 3,481.93 3,656.03 3,838.83 ANNUAL 82,113.51 86,219.18 90,530.14 95,056.65 99,809.48 MONTHLY 6,842.79 7,184.93 7,544.18 7,921.39 8,317.46 40/HR WEEK 39.48 41.45 43.52 45.70 47.99 POLICE CORPORAL P122 BI-WEEKLY 3,239.90 ANNUAL 84,237.40 MONTHLY 7,019.77 40/HR WEEK 40.50 POLICE OFFICER P121 BI-WEEKLY 2,416.24 2,537.05 2,798.74 2,938.68 3,085.62 ANNUAL 62,822.23 65,963.34 72,767.34 76,405.71 80,225.99 MONTHLY 5,235.19 5,496.94 6,063.94 6,367.14 6,685.50 40/HR WEEK 30.20 31.71 34.98 36.73 38.57 POLICE RECRUIT P119 BI-WEEKLY 1,955.55 2,053.32 2,265.10 2,378.36 2,497.28 ANNUAL 50,844.22 53,386.44 58,892.70 61,837.34 64,929.20 MONTHLY 4,237.02 4,448.87 4,907.73 5,153.11 5,410.77 40/HR WEEK 24.44 25.67 28.31 29.73 31.22 ANIMAL CONTROL OFFICER P094 BI-WEEKLY 1,699.63 1,784.61 1,873.84 1,967.53 2,065.91 ANNUAL 44,190.35 46,399.87 48,719.86 51,155.85 53,713.65 MONTHLY 3,682.53 3,866.66 4,059.99 4,262.99 4,476.14 40/HR WEEK 21.25 22.31 23.42 24.59 25.82 SENIOR POLICE DISPATCHER P112 BI-WEEKLY 2,335.37 2,452.14 2,574.75 2,703.49 2,838.66 ANNUAL 60,719.72 63,755.71 66,943.49 70,290.67 73,805.20 MONTHLY 5,059.98 5,312.98 5,578.62 5,857.56 6,150.43 40/HR WEEK 29.19 30.65 32.18 33.79 35.48 EXHIBIT "A" CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: June 19, 2012 AGENDA ITEM NO. 18 'EM TITLE: Resolution of the City Council of the City of National City approving a salary schedule for the Confidential employee group for fiscal year 2012-2013 in compliance with the requirements of the California Public Employee's Retirement System (Ca1PERS) PREPARED BY: Stacey Stevenson DEPARTMENT: PHONE: 336-4308 APPROVED EXPLANATION: rces All employees of the City of National City receive a rate of pay within the established salary range for the job classification into which the employee has been hired. The purpose of this item is to establish the fiscal year 2012- 2013 salary schedule for classifications within the Confidential employee group. FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: There is no fiscal impact associated with this action ENVIRONMENTAL REVIEW: ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Approve the resolution BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: >olution .—unfidential Employee Group Salary Schedule RESOLUTION NO. 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING A SALARY SCHEDULE FOR THE CONFIDENTIAL EMPLOYEE GROUP FOR FISCAL YEAR 2012-2013 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby approves the Fiscal Year 2012-2013 Salary Schedule for the Confidential Employee Group, attached hereto as Exhibit "A". PASSED and ADOPTED this 19th day of June, 2012. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney Ron Morrison, Mayor CITY OF NATIONAL CITY CONFIDENTIAL SALARY SCHEDULE EFFECTIVE DATE: Fiscal Year 2012-2013 TITLE/RANGE STEP A MIS Technician 11 c144 BI-WEEKLY MONTHLY ANNUAL HOURLY MIS Technician I c130 BI-WEEKLY MONTHLY ANNUAL HOURLY Executive Assistant IV c115 BI-WEEKLY MONTHLY ANNUAL HOURLY Executive Assistant I11 c109 BI-WEEKLY MONTHLY ANNUAL HOURLY Executive Assistant I1 c101 BI-WEEKLY MONTHLY ANNUAL HOURLY STEP B STEP C STEP D STEP E 2,596.16 2,725.97 2,862.26 3,005.38 3,155.65 5,625.01 5,906.26 6,201.57 6,511.65 6,837.23 67,500.10 70,875.11 74,418.86 78,139.81 82,046.80 32.4520 34.0746 35.7783 37.5672 39.4456 2,280.83 2,394.87 2,514.62 2,640.35 2,772.36 4,941.80 5,188.89 5,448.34 5,720.75 6,006.79 59,301.61 62,266.69 65,380.03 68,649.03 72,081.48 28.5104 29.9359 31.4327 33.0043 34.6546 1,991.27 2,090.83 2,195.37 2,305.14 2,420.40 4,314.41 4,530.13 4,756.63 4,994.47 5,244.19 51,772.89 54,361.54 57,079.61 59,933.59 62,930.27 24.8908 26.1354 27.4421 28.8142 30.2549 1,886.17 1,980.48 2,079.51 2,183.48 2,292.66 4,086.71 4,291.05 4,505.60 4,730.88 4,967.42 49,040.55 51,492.58 54,067.21 56,770.57 59,609.09 23.5772 24.7560 25.9938 27.2935 28.6582 1,753.88 1,841.58 1,933.66 2,030.34 2,131.86 3,800.08 3,990.09 4,189.59 4,399.07 4,619.02 45,600.98 47,881.03 50,275.08 52,788.84 55,428.28 21.9235 23.0197 24.1707 25.3792 26.6482 Payroll Technician & Confidential Assistant c092 BI-WEEKLY 1,617.33 MONTHLY 3,504.21 ANNUAL 42,050.52 HOURLY 20.2166 Executive Assistant 1 c087 BI-WEEKLY MONTHLY ANNUAL HOURLY (At -Wilt) 1,698.19 1,783.10 1,872.26 1,965.87 3,679.42 3,863.39 4,056.56 4,259.39 44,153.04 46,360.69 48,678.73 51,112.66 21.2274 22.2888 23.4032 24.5734 1,546.55 1,623.88 1,705.07 1,790.33 1,879.84 3,350.86 3,518.40 3,694.32 3,879.04 4,072.99 40,210.32 42,220.84 44,331.88 46,548.48 48,875.90 19.3319 20.2985 21.3134 22.3791 23.4980 EXHIBIT "A" CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: June 19, 2012'. AGENDA ITEM NO. 19 EM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING AND ADOPTING THE ANNUAL APPROPRIATION LIMIT FOR FISCAL 2012-2013 OF $49,718,940 PREPARED BY: Tina Norrdin Financial Services Officer PHONE: (6191336-4331': XPLANATION: State law requires the governing body of each local jurisdiction to establish its appropriation limit, also known as the Gann Limit, by resolution each year. The Gann limit sets a cap on the amount of local government spending that may be financed from proceeds of taxes. DEPARTMENT: APPROVED The annual Gann Limit is based on the previous year's appropriation limit multiplied by the percentage change in population and percentage change in the California per capita income. Based on information provided by the State Department of Finance, the following percentage changes are used in setting the FY 2012-2013 appropriation limit : California Per Capita Personal Income 3.77% Change in San Diego County Population 0.91% FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: N/A ENVIRONMENTAL REVIEW: IN/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Approve and adopt the resolution. BOARD / COMMISSION RECOMMENDATION: LN/Aj ATTACHMENTS: Resolution RESOLUTION NO. 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING AND ADOPTING THE ANNUAL APPROPRIATIONS LIMIT FOR FISCAL YEARS 2012-2013 OF $49,718,940 WHEREAS Article XIII-B of the California Constitution provides that appropriations made by State and local governments shall be changed annually by a factor comprised of the change in population and the change in the cost of living. NOW, THEREFORE, BE IT RESOLVED that the cost of living factors to be used in calculating the appropriations limit for fiscal year 2012-2013 shall be as set forth in Attachment 1. BE IT FURTHER RESOLVED that the population change factors to be used in calculating the appropriations limit for fiscal year 2012-2013 shall be as set forth in Attachment 1. BE IT FURTHER RESOLVED that the appropriation limit for fiscal year 2012- 2013 shall be $49,718,940, as set forth in Attachment 1. PASSED and ADOPTED this 19th day of June, 2012. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney Resolution No. 2012 — Attachment 1 June 19, 2012 City of National City Gann Appropriations Limit Fiscal Year 2012-2013 FY 2011-2012 Gann Appropriations Limit $ 47,480,561 California Per Capita Cost of Living Change *** 3.77% Limit Sub -Total $ 49,270,578 San Diego County Population Change *** 0.91% FY 2012-2013 Gann Appropriations Limit $ 49,718,940 Gann Limit Recap Total City Appropriations $ 64,658,498 Less: Non -Tax Proceeds $ 30,715,742 Estimated Appropriations Subject to the Gann Limit $ 33,942,756 FY 2012-2013 Gann Appropriations Limit $ 49,718,940 Amount of Appropriations Below the Gann Limit $ 15,776,184 *** Source — State of California, Department of Finance http://www.dof.ca.gov/budgeting/ CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: June 19th, 2012 AGENDA ITEM NO. 20 EM TITLE: :Warrant Register #47 for the period of 05/16/12 through 05/22/12 in the amount of $521,784.89. (Finance) PREPARED BY: K. Apalategui DEPARTMENT: Financ PHONE: 619-336-4331 APPROVED BY: elf` EXPLANATION: 'Per Government Section Code 37208, attached are the warrants issued for the period of 05/16/12 through 05/22/12 The Finance Department has implemented a policy explanation of all warrants above $50,000.00 Vendor Check Amount Explanation Public Emp Ret System 302224 274,860.60 Retirement Insurance Period 5/01/2012-5/14/2012 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 $521,784.89 BOARD / COMMISSION RECOMMENDATION: N/AI ATTACHMENTS: rant Register #47 PAYEE THIRD DEGREE COMMUNICATIONS VILLARIASA FRANK TOYOTA LEAGUE OF CALIFORNIA CITIES CITY OF SAN DIEGO KANE BALLMER & BERKMAN KEYSER MARSTON ASSOC NATIONAL CONSTRUCTION RENTAL PRUDENTIAL OVERALL SUPPLY STAPLES ADVANTAGE VISTA PAINT AAIR PURIFICATION SYSTEMS AFFORDABLE BUTTONS.COM AIRGAS WEST ALL FRESH PRODUCTS ALL THE KINGS FLAGS AMEDEE AMERICAN BACKFLOW SPECIALTIES T MOBILITY IETT BROTHERS INC __..3UISSE INC BRENNTAG PACIFIC INC BUREAU VERITAS N AMERICA CALIFORNIA ELECTRIC SUPPLY CAMEON CHAD MORGAN CHODUR CONSTRUCTION CITY NATIONAL BANK CLEARWIRELEGACY LLC COX COMMUNICATIONS CUSTOMER SVC ADVANTAGE INC DAPPER TIRE COMPANY DEPARTMENT OF JUSTICE D-MAX ENGINEERING DRACO TRUCKS & EQUIPMENT INC DREW FORD DUNBAR ARMORED INC ENVIRONMENTAL HEALTH COALITION ESGIL CORPORATION FAT PIPE NETWORKS G & A AUTO AIR CONDITIONING GRAINGER GRANICUS INC TON MEATS & PROVISIONS i DEPOT CREDIT SVCS PARTNERS IRMA MENDIOLA IRON MOUNTAIN JERAULDS CAR CARE CENTER JOHN DEERE LANDSCAPES WARRANT REGISTER # 47 5/22/2012 DESCRIPTION TUITION/DEATH INVESTIGATION COURSE SUBSISTENCE/DEATH INV COURSE TOYOTA PRIUS HYBRID 2012 CONFERENCE / SEP 5-7, 2012 SD REGIONAL ENTERPRIZE-3 & 4 QTR LEGAUSUCCESSOR AGENCY OPERATIONS PROFESSIONAL SERVICES/APRIL 2012 FENCING AT 1640 E PLAZA BLVD-PALM PLAZA MOP 45742/ LAUNDRY SERVICES/ NSD MOP 45704. OFFICE SUPPLIES / CDC MOP 68834. PAINT / NSD GRABBER 805501 CUSTOM PIN -BACK BUTTON MOP 45714 MATERIALS & SUPPLIES FOOD / NUTRITION CENTER FLAGS, ACCESSORIES REIMB-GOLDEN GUARDIAN EXERCISE 05/15/12 BACKFLOWS, GAUGES, PARTS SECURE WIRELESS CIRCUIT / POLICE EMPLOYEE RECOGNITION CATALOG MILK AND DAIRY / NUTRITION POOL CHEMICALS T&A DEPOSIT #169 MOP 45698 ELECTRICAL MATERIAL CASH LIEU DEDUCTIONS ON 5/03/12 REFUND OF SEWER FEE FIRE HYDRANT INSTALLATION / FIRE LEASE PAYMENT #9 REFUND PORTION -OF -FILING -CHARGES COX COMMUNICATIONS DATA & VIDEO POLICY, BROCHURE & SURVEY DEVELOP 215/55R17 94V SL EAGLE GT GSWTL NEW EMPLOYEE FINGERPRINT / HR DEPOSIT #1588 - FRESH & EASY LABOR, DIAGNOSE PROBLEM AND REPAIRS MOP 49078 AUTO PARTS ARMORED SERVICES / FINANCE EXPENSE REIMBURSEMENT / APRIL 2012 PLAN CHECK SERVICES / FIRE FATPIPE NETWORK ROUTER GOLD SERVICE LABOR, AC SERVICE/DIAGNOSTIC, R&R MOP 65179. SUPPLIES / CSD GRANICUS WEBCAST SERVICE / MIS MEAT DELIVERY / NUTRITION CENTER TRUMETER MEASURE METER CONSULTING SVCS/APR 17-MAY 17 2012 LIABILITY CLAIMS COSTS / RISK RECORDS MANAGEMENT/STORAGE HOSE/COOLANT/FUEL PUMP MOP 69277 MATERIALS & SUPPLIES 1/3 CHK NO DATE AMOUNT 302155 5/17/12 345.00 302156 5/17/12 378.00 302157 5/21/12 1,049.25 302158 5/22/12 475.00 302159 5/22/12 24,250.00 302160 5/22/12 2,287.60 302161 5/22/12 3,608.80 302162 5/22/12 142.52 302163 5/22/12 22.40 302164 5/22/12 72.28 302165 5/22/12 80.25 302166 5/22/12 300.64 302167 5/22/12 890.81 302168 5/22/12 269.35 302169 5/22/12 487.35 302170 5/22/12 1,432.30 302171 5/22/12 90.30 302172 5/22/12 386.03 302173 5/22/12 2,414.11 302174 5/22/12 200.00 302175 5/22/12 578.58 302176 5/22/12 716.84 302177 5/22/12 3,125.00 302178 5/22/12 237.21 302179 5/22/12 210.70 302180 5/22/12 1,619.30 302181 5/22/12 15, 620.02 302182 5/22/12 43,101.10 -3021.83- --5/22/12 3,594,99 302184 5/22/12 3,049.70 302185 5/22/12 4,375.00 302186 5/22/12 978.58 302187 5/22/12 256.00 302188 5/22/12 900.00 302189 5/22/12 773.94 302190 5/22/12 610.60 302191 5/22/12 148.91 302192 5/22/12 3,663.78 302193 5/22/12 740.30 302194 5/22/12 2,400.00 302195 5/22/12 535.14 302196 5/22/12 615.56 302197 5/22/12 1,477.35 302198 5/22/12 872.85 302199 5/22/12 395.72 302200 5/22/12 4,000.00 302201 5/22/12 167.00 302202 5/22/12 135.00 302203 5/22/12 1,781.34 302204 5/22/12 176.52 PAYEE LASER SAVER INC LEXIS NEXIS LORMAN EDUCATION SERVICES LOUANN COUNTRYMAN MASON'S SAW & MATTHEW METANAT METRO AUTO PARTS DISTRIBUTOR MUNICIPAL EMERGENCY SERVICES NAPA AUTO PARTS NATIONAL CITY TROPHY NATIONAL NOTARY ASSOCIATION NEXUS IS INC PARRA PERRY FORD POWERSTRIDE BATTERY CO INC PRO BUILD PRO -EDGE KNIFE PRUDENTIAL OVERALL SUPPLY PUBLIC EMP RETIREMENT SYSTEM RECCE GROUP ROAD ONE TOWING RON BAKER CHEVROLET RUSS' BEE REMOVAL SAN DIEGO BMW MOTORCYCLES SAN DIEGO MIRAMAR COLLEGE SDG&E SILVA SMART & FINAL STAPLES ADVANTAGE STARTECH COMPUTERS SWANK MOTION PICTURES INC SYSCO SAN DIEGO TARGET SPECIALTY PRODUCTS THE LIGHTHOUSE INC TOPECO PRODUCTS TURF MAKER UNITED ROTARY BRUSH URBAN FUTURES INC V & V MANUFACTURING VALENZUELA VALLEY INDUSTRIAL SPECIALTIES VIORA VISTA PAINT W.L. BUTLER CONSTRUCTION W.L. BUTLER CONSTRUCTION WALTERS WEST PAYMENT CENTER WILLY'S ELECTRONIC SUPPLY - IINCORPURATED _J WARRANT REGISTER # 47 5/22/2012 DESCRIPTION MOP 45725 / INK CARTRIDGES / CSD ONLINE LEGAL RESEARCH / APR 2012 AUDIO CONFERENCE -CHAOTIC WORKLOAD OVERPAYMENT ON BUILDING PERMIT MOP 45729 MATERIALS & SUPPLIES REFUND OF BUILDING PERMITS HALOGEN FOWARD LIGHTING BOX EKO STRAPLESS D CYLINDER BRACKET MOP 45735 AUTO PARTS MOP 66556 !TRACK MEDALS !CSD. MEMBERSHIP RENEWAL-G. MILLER NEXUS PHONE SYS SVC / MIS TRAVEL REIMB/ FIRE -RESCUE CONE R&M CITY VEHICLES MOP 67839 AUTO PARTS MOP 45707 SMALL TOOLS SHARPENING SERVICES / NUTRITION MOP 45742 LAUNDRY SERVICE SERVICE PERIOD 5/01/12 - 5/14/12 TACTICAL EMER CASUALTY CARE / PD TOWING CHARGES INVOICES MOP 45751 AUTO PARTS BEE REMOVAL DRIVE SHAFT ASSEMBLY/GASKETS FTO & ROT TUITION / POLICE STREET GAS & ELECTRIC TRAVEL REIMB / FIRE RESCUE CONF MOP 45756. SUPPLIES / HR MOP 45704-OFFICE SUPPLIES/ MIS MOP 61744. SUPPLIES / MIS JUNE MOVIE LICENSE / FOOTLOOSE FOOD & CONSUMABLES / NUTRITION ROUNDUP PROMAX MOP 45726 AUTO PARTS MOP 63849 SHOP SUPPLIES 19-4-4 NITRA KING MOP 62683 AUTO PARTS FINANCIAL ADVISORY SVCS / APR 2012 NEW BADGES & REPAIRS / POLICE TRAVEL REIMB/ FIRE -RESCUE CONF MOP 45453 BUILDING MATERIAL TRAVEL REIMB/ FIRE -RESCUE CONF ON-LINE TRAFFIC FAST DRY YELLOW REFUND/ CONST & DEBRI DEPOSIT REFUND/ CONST & DEBRI DEPOSIT EDUCATIONAL REIMBURSEMENT / PD CLEAR INVESTIGATIVE DATABASES/PD MOP 45763. ELECTRICAL SUPPLIES/MIS 2/3 CHK NO DATE AMOUNT 302205 5/22/12 279.21 302206 5/22/12 427.38 302207 5/22/12 99.00 302209 5/22/12 1,178.61 302210 5/22/12 5311 302211 5/22/12 177.00 302212 5/22/12 126.72 302213 5/22/12 888.13 302214 5/22/12 333.96 302215 5/22/12 74.82 302216 5/22/12 52.00 302217 5/22/12 210.00 302218 5/22/12 554.58 302219 5/22/12 445.75 302220 5/22/12 147 90 302221 5/22/12 1,571.15 302222 5/22/12 46 00 302223 5/22/12 497.79 302224 5/22/12 274,860 60 302225 5/22/12 1' 302226 5/22/12 L,_.__ 302227 5/22/12 56.75 302228 5/22/12 775-00 302229 5/22/12 4,051.74 302230 5/22/12 72 00 302231 5/22/12 18, 870.88 302232 5/22/12 27.24 302233 5/22/12 228.97 302234 5/22/12 260.15 302235 5/22/12 896.90 302236 5/22/12 321.00 302237 5/22/12 3,189.82 302238 5/22/12 187.94 302239 5/22/12 330.96 302240 5/22/12 123.98 302241 5/22/12 924.38 302242 5/22/12 218.84 302243 5/22/12 1,267.50 302244 5/22/12 259.85 302245 5/22/12 124.13 302246 5/22/12 63.59 302247 5/22/12 276.05 302248 5/22/12 14,632.01 302249 5/22/12 43,89r " 302250 5/22/12 302251 5/22/12 330.o. 302252 5/22/12 412.80 302253 5/22/12 246.03 A/P Total 512,468.17 3/3 PAYEE SECTION 8 HAPS PAYMENTS A' �) pg ryr.. N(. 8 O ! TED J WARRANT REGISTER # 47 5/22/2012 DESCRIPTION CHK NO DATE AMOUNT Start Date End Dale 5/15/2012 5/22/2012 9,316.72 GRAND TOTAL $ 521,784.89 Certification IN ACCORDANCE WITH SECTION 37202, 37208, 372059 OF THE GOVERNMENT CODE, WE HEREBY CERTIFY TO THE ACCURACY OF THE DEMANDS LISTED ABOVE AND TO TIIE AVAILABILITY OF FUNDS FOR THE PAYMENT THEREOF AND FURTHER THAT THE ABOVE CLAIMS AND DEMANDS HAVE BEEN AIJDITED AS REQUIRED BY LAW. TINA NO ' IN, FINANCE LESLIE DEESE, CITY MANAGER FINANCE COMMITTEE RONALD J. MORRISON, MAYOR -CHAIRMAN ALEJANDRA SOTELO-SOLIS, VICE -MAYOR LUIS NATIVIDAD, MEMBER ROSALIE ZARATE, MEMBER MONA RIOS, MEMBER I HEREBY CERTIFY THAT THE FOREGOING CLAIMS AND DEMANDS WERE APPROVED AND TIIE CITY TREASURER IS AUTHORIZED TO ISSUE SAID WARRANTS IN PAYMENT TIIERF,OF BY TIIE CITY COUNCIL ON THE 16th OF JUNE, 2012. AYES NAYS ABSENT CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: June 19th, 2012 AGENDA ITEM NO. 21 EM TITLE: Warrant Register #48 for the period of 05/21/12 through 05/29/12 in the amount of $2,751,317.35. (Finance) PREPARED BY: K. Apalategui DEPARTMENT: Fina PHONE: 619-336-4331 APPROVED BY: EXPLANATION: 'Per Government Section Code 37208, attached are the warrants issued for the period of 05/21/12 through 05/29/12 The Finance Department has implemented a policy explanation of all warrants above $50,000.00 Vendor Check Amount Explanation City of San Diego 302273 1,220,194.00 Sewer Transportation and Treatment Kimley Horn and Assoc 302306 136,206.96 Coolidge Ave Services for March 2012 S Mobile 302325 215,902.17 60 Ruggedized Laptops 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 $2,751,317.35 BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: rrant Register #48 PAYEE SECRETARY OF STATE ABCANA INDUSTRIES ACEDO ACME SAFETY & SUPPLY CORP AFFORDABLE SVC APPLIANCES AFLAC ALL FRESH PRODUCTS ALLEN ANDERSON BEARD BECK BISHOP BOEGLER BONSUISSE INC BOYD BRENNTAG PACIFIC INC BUREAU VERITAS N AMERICA C' .-"RNIA HIGHWAY ADOPTION CO C EN'S HOSPITAL NAN INC,ORPOiil�ls`T� fry WARRANT REGISTER #48 5/29/2012 DESCRIPTION BUSINESS ENTITIES RECORDS ORDER POOL CHEMICALS RETIREE HEALTH BENEFITS JUN 2012 BARRICADES / PW THERMOSTAT, FILTER AFLAC ACCT #BDM36 - MAY 2012 FOOD / NUTRITION CENTER RETIREE HEALTH BENEFITS JUN 2012 RETIREE HEALTH BENEFITS JUN 2012 RETIREE HEALTH BENEFITS JUN 2012 RETIREE HEALTH BENEFITS JUN 2012 RETIREE HEALTH BENEFITS JUN 2012 RETIREE HEALTH BENEFITS JUN 2012 MILK & DAIRY DELIVERY / NUTRITION RETIREE HEALTH BENEFITS JUN 2012 POOL CHEMICALS SAFE ROUTE TO SCHOOL, MARCH-APRIL, 2012 PARADISE CREEK LITTER REMOVAL CHILD ABUSE EXAMS C... -.= SAN DIEGO CONDON COOPER'S PLUMBING & HEATING CORPUZ DANESHFAR DEFRATIS DELTA CARE USA DELTA DENTAL -DI CERCI-HO- DION INTERNATIONAL TRUCK INC DREDGE DREW FORD EISER III ESGIL CORPORATION GELSKEY GEORGE'S LAWN EQUIPMENT CO GIBBS JR GIRL SCOUTS GRAINGER HANSON HARRIS & ASSOCIATES INC HARRIS & ASSOCIATES INC HEALTH NET I-" -.LITER DE LLAMAS & ASSOC F S HOMt DEPOT CREDIT SVCS JAMES JEFFREY. L SERVATIUS JERAULDS CAR CARE CENTER JOHN DEERE LANDSCAPES SEWER TRANSPORTATION/TREATMENT RETIREE HEALTH BENEFITS JUN 2012 PLUMBING SERVICES, REPAIRS RETIREE HEALTH BENEFITS JUN 2012 RETIREE HEALTH BENEFITS JUN 2012 RETIREE HEALTH BENEFITS JUN 2012 PMI COBRA DENTAL INS -APR 2012 COBRA DENTAL INS -APR 2012 #09086-010D2 -RETIREE HEALTH -BENEFITS JUN 2012 TRANSMITTER #1807329C92 RETIREE HEALTH BENEFITS JUN 2012 MOP 49078 AUTO PARTS RETIREE HEALTH BENEFITS JUN 2012 PLAN CHECKING SERVICES / BUILDING RETIREE HEALTH BENEFITS JUN 2012 THROTTLE CONTROL 1013-E RETIREE HEALTH BENEFITS JUN 2012 MANA OF SD BREAKFAST / MYR MOP 65179 MATERIALS & SUPPLIES RETIREE HEALTH BENEFITS JUN 2012 30TH & F AVE SR2S, MARCH SERVICES DEP #1666 HARBOR VIEW CONDOS R1192Q (COBRA) MAR, APR, MAY 2012 CONTRACT SVCS - SALES TAX 2ND QTR RETIREE HEALTH BENEFITS JUN 2012 FRP/TILE INSIDE CORNER -WHITE 8/PW RETIREE HEALTH BENEFITS JUN 2012 RETIREE HEALTH BENEFITS JUN 2012 MOP 72449 R&M AUTO EQUIPMENT MOP 69277 PLANTING MATERIAL 1/3 CHK NO DATE AMOUNT 302254 5/24/12 20.00 302255 5/29/12 314.91 302256 5/29/12 160.00 302257 5/29/12 310.48 302258 5/29/12 400.11 302259 5/29/12 1,075.30 302260 5/29/12 59.99 302261 5/29/12 125.00 302262 5/29/12 110.00 302263 5/29/12 70.00 302264 5/29/12 140.00 302265 5/29/12 110.00 302266 5/29/12 260.00 302267 5/29/12 245.80 302268 5/29/12 145.00 302269 5/29/12 726.38 302270 5/29/12 1,000.00 302271 5/29/12 864.00 302272 5/29/12 1,678.00 302273 5/29/12 1,220,194.00 302274 5/29/12 280.00 302275 5/29/12 200.00 302276 -5/29/12 140.00 302277 5/29/12 250-00 302278 5/29/12 120.00 302279 5/29/12 213.09 302280 5/29/12 331.68 302281-5/2-9/12 70.00 302282 5/29/12 276.63 302283 5/29/12 250.00 302284 5/29/12 110.99 302285 5/29/12 250.00 302286 5/29/12 40,596.63 302287 5/29/12 115.00 302288 5/29/12 39.53 302289 5/29/12 120.00 302290 5/29/12 15.00 302291 5/29/12 296.81 302292 5/29/12 135.00 302293 5/29/12 34,954.40 302294 5/29/12 1,440.00 302295 5/29/12 1,761.93 302296 5/29/12 2,519.54 302297 5/29/12 200.00 302298 5/29/12 143.08 302299 5/29/12 140.00 302300 5/29/12 340.00 302301 5/29/12 49.99 302302 5/29/12 613.06 2/3 WARRANT REGISTER #48 5/29/2012 PAYEE DESCRIPTION CHK NO DATE AMOUNT JUNIEL RETIREE HEALTH BENEFITS JUN 2012 302303 5/29/12 50.00 KAISER FOUNDATION HEALTH PLANS RET INS -COBRA APR 2012 GRP #104220-7002 302304 5/29/12 4,980.29 KIMBLE RETIREE HEALTH BENEFITS JUN 2012 302305 5/29/12 300.00 KIMLEY HORN AND ASSOC INC COOLIDGE AVE, SERVICES, MARCH, 2012 302306 5/29/12 136,206.96 KONE ELEVATOR REPAIRS & MAINTENANCE 302307 5/29/12 3,982.77 LANDA RETIREE HEALTH BENEFITS JUN 2012 302308 5/29/12 155.00 LIMFUECO RETIREE HEALTH BENEFITS JUN 2012 302309 5/29/12 160.00 LINCOLN EQUIPMENT INC RAYPAK HEADER MANIFOLD 0-RING 302310 5/29/12 240.28 MALDONADO RETIREE HEAI TH BENEFITS JUN 2012 302311 5/29/12 130.00 MASON'S SAW & MOP 45729 MOBILE TOOLS 302312 5/29/12 312.37 MATIENZO RETIREE HEALTH BENEFITS JUN 2012 302313 5/29/12 100.00 MATLOCK REIMB - EDUCATIONAL 302314 5/29/12 222.08 MAYER REPROGRAPHICS PRINTING OF PLANS / SPEC- NO. 12-03 302315 5/29/12 387.75 MC CABE RETIREE HEALTH BENEFITS JUN 2012 302316 5/29/12 280.00 MEDINA RETIREE HEALTH BENEFITS JUN 2012 302317 5/29/12 105.00 MUNICIPAL CODE CORPORATION 45 COPIES - CODE OF ORDINANCES 302318 5/29/12 5,336.53 MURRAY RETIREE HEALTH BENEFITS JUN 2012 302319 5/29/12 150.00 MYERS RETIREE HEALTH BENEFITS JUN 2012 302320 5/29/12 140.00 NOSAL WILLIAM A RETIREE HEALTH BENEFITS JUN 2012 302321 5/29/12 1,' OCHOA RETIREE HEALTH BENEFITS JUN 2012 302322 -5/29/12 O'REILLY AUTO PARTS INV 321278 / 321281 /AUTOMOTIVE SUPP 302323 5/29/12 673.86 PAUU JR RETIREE HEALTH BENEFITS JUN 2012 302324 5/29/12 340.00 PCS MOBILE CF-3101AAX1M SF-31 RUGGEDIZED LAPTOP 302325 5/29/12 215,902.17 PEASE JR RETIREE HEALTH BENEFITS JUN 2012 302326 5/29/12 140.00 PERRY FORD R&M CITY VEHICLES 302327 5/29/12 582.09 PETERS RETIREE HEALTH BENEFITS JUN 2012 302328 5/29/12 290.00 POST RETIREE HEALTH BENEFITS JUN 2012 302329 5/29/12 280.00 POTTER RETIREE _HEALTH -BENEFITS _JUN 2012 302330 5/29/12 150,00 PROJECT PROFESSIONALS CORP. STORM DRAIN IMPROVEMENTS 11-12 302331 5/29/12 19,403.00 PRUDENTIAL OVERALL SUPPLY MOP45742. LAUNDRY SERVICES/ FIRE 302332 5/29/12 44.90 R J SAFETY SUPPLY INDUSTRIAL BACK SUPPORT BLACK 302333 5/29/12 172.59 RAY RETIREE HEALTH BENEFITS JUN 2012 302334 5/29/12 190.00 RBF CONSULTING 8TH ST SAFETY ENHANCEMENTS 302335 5/29/12 1,637.82 ROARK RETIREE HEALTH BENEFITS JUN 2012 302336 5/29/12 135.00 ROE RETIREE HEALTH BENEFITS JUN 2012 302337 5/29/12 120.00 RUIZ RETIREE HEALTH BENEFITS JUN 2012 302338 5/29/12 310.00 S & S WORLDWIDE INC CRAFT SUPPLIES / CSD 302339 5/29/12 1,531.50 SAFRAN MORPHOTRUST INVESTIGATIVE SVC - MAR 2012 302340 5/29/12 16.00 SHORT RETIREE HEALTH BENEFITS JUN 2012 302341 5/29/12 300.00 SILVA REIMB - TRAVEL EXP-LEAUGE OF CITIES 302342 5/29/12 184.23 STAPLES ADVANTAGE MOP45704. OFFICE SUPPLIES/ ENG 302343 5/29/12 803.79 STRASEN RETIREE HEALTH BENEFITS JUN 2012 302344 5/29/12 135.00 SUMMIT SUPPLY 4 ROLL DISPENSER TP-4 302345 5/29/12 2-- -- SUPERIOR READY MIX TACK OIL, 3/8, SHEET & COLDMIX ASPHALTS 302346 5/29/12 SWEETWATER AUTHORITY FACILITIES WATER BILL 302348 5/29/12 21; SYSCO SAN DIEGO FOOD & CONSUMABLES / NUTRITION 302349 5/29/12 2,222.73 THE SAN DIEGO UNION TRIBUNE VIDEO MANAGEMENT SYS RFP MAR 5-16, 2012 302350 5/29/12 1,706.35 THOMSON WEST LEGAL PUBLICATIONS FOR FY12 302351 5/29/12 1,287.83 TRAINING AND CONSULTING TEAM TUITION - OFFICER P. HERNANDEZ 302352 5/29/12 95.00 PAYEE TRAINING INNOVATIONS TRIVIZ UNITED ROTARY BRUSH URIAS VALLEY INDUSTRIAL SPECIALTIES VCA EMERGENCY ANIMAL HOSPITAL WAXIE SANITARY SUPPLY WELLS FARGO TRUST OPERATIONS ZIETLOW ZIONS BANK DESROCHERS NATIONAL COMMUNITY U S BANK WIRED PAYMENTS TRISTAR RISK MANAGEMENT OLL Pay period 11 WARRANT REGISTER #48 5/29/2012 DESCRIPTION TMS SOFTWARE SUPPORT / MIS RETIREE HEALTH BENEFITS JUN 2012 SWEEPER REPAIRS RETIREE HEALTH BENEFITS JUN 2012 MOP 46453 PLUMBING MATERIAL STRAY ANIMAL VET CARE / POLICE JANITORIAL SUPPLIES QTR ADMIN FEES FOR FEB, MAR 2012 RETIREE HEALTH BENEFITS JUN 2012 28TH LEASE PYMNT-800 MHZ EQUIP RETIREE HEALTH BENEFITS JUN 2012 REGISTRATION - A. MARCHANTE CREDIT CARD FEES - CDC PREFUND CLAIM # 10295467 & 10283764 Start Date 5/1/2012 End Date 5/14/2012 tTieck Date 5/23/2012 3/3 CHK NO DATE AMOUNT 302353 5/29/12 600.00 302354 5/29/12 135.00 302355 5/29/12 242-14 302356 5/29/12 125.00 302357 5/29/12 71.30 302358 5/29/12 404.56 302359 5/29/12 352.76 302360 5/29/12 29.25 302361 5/29/12 150.00 302362 5/29/12 48,678.25 302363 5/29/12 110.00 302364 5/29/12 350.00 302365 5/29/12 32.08 A/P Total 1,790,063.86 135332 5/24/12 39,448.00 921,805.49 GRAND TOTAL S 2,751,317.35 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: June 19, 2012 AGENDA ITEM NO. 22 'EM TITLE: Public Hearing: Weed Abatement, Council to hear report findings regarding abated properties and associated fees; per National City Municipal code 9.12.020 — public nuisance declared — Weeds and other flammable materials (Fire) PREPARED BY: Robert Hernandez / Fire MarshallDEPARTMENT: F. PHONE: 336-4552 APPROVED BY: EXPLANATION: In accordance with National City Municipal Code, Chapter 9.12, a report of the proceedings and an accurate account of the cost of abating the nuisance on each separate property shall be filed with the City Council. Notice of the public hearing shall be served in the same manner as summons in a civil action in accordance with Article 3 (commencing with Section 415.10) of Chapter 4 of Title 5 of Part 2 of the Code of Civil Procedure. Pursuant to National City Municipal Code, Section 1.36.100, the City Council shall consider the Report and Account at the time set for the confirmation of costs hearing, together with any objections or protests by the responsible person or other interested persons. The responsible person or other interested persons may present a written or oral protest or objection to the report and account. At the conclusion of the hearing, the City Council shall by resolution either approve the Report and Account as submitted, or as modified or corrected by the City Council. If cost of abatement is waived by Mayor and Council, the City of National City will be responsible for all cost associated with the abatement conducted by Fire Prevention Services FINANCIAL STATEMENT: ACCOUNT NO. 001-12124-3561 ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: City Council by resolution approves the report and Account as submitted or as modified or corrected by City Council. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: =ixed Charges Special Assessments — Please see Exhibit "A" City of ional City Weed Abatement Program 2012/2013 Fixed Charge Special Assessments EXHIBIT A Hi n. ;+y5f, Xi" R^`t eY-:... , ppb� .'sr. .t 9� V6A i,t x ��1 .: ar ? �,�.yy'yy'yy �fy �j44 ;F V3 T�f41 '' �'r m? f ` > yy+Yys���,j yeyyvb.. ,fir VYF Virl 8 € -m 552 330 04 OC $1,517.20 103 N Kenton Ave National City 91950 L;K Patton Enterprises L L C F :4L4,13A?P... 9440 Chestnut St Spring Valley CA 91977 554 180 05 OC $1,590.44 3109 E 8th St National City 91950 Carolino Construction Corp 1366 Corona Vis Bonita CA 91902 554 262 04 OC $2,278.68 2638 E 2nd St National City 91950 Maafala Talai 2638 E 2nd St National City CA 91950 556 415 06 OC $878.26 1023 E 7th St National City 91950 Jimenez Jaime;Patricia 489 Miguel Trail PI Chula Vista CA 91914 557 140 25 OC $2,688.66 8th St National City Zayat Kamel;Elkadi % Casa Engineerin 9225 Dowdy Dr #21 c San Diego CA 92126 557 180 37 OC $965.40 805 N Ave National City 91950 Li Zhiwei 1498 13th St #193 Imperial Beacr CA 91932 557 380 10 OC $892.30 2224 E 12th St National City 91950 Thomas Ginlei L; Chen Jason 13896 Kerry Ln San Diego CA 92130 558 153 19 OC $2,015.68 3035 Palmer St National City 91950 Vargas Living Trust 550 I St Chula Vista CA 91910 Total Parcels: 8 Total Assess: $12,826.62 SUMMARY REPORT FOR APN 552-330-04-00 07/07/11 Initial inspection was made, property was found to be in violation. 07/08/11 Mailed 30 day courtesy notice to the property owner. 08/08/11 Re -inspection was made, property was found to be in violation. 08/08/11 Posted property. 08/09/11 Mailed 10 day final notice to the owner, certified mail. 08/22/11 Final inspection was made, property was found to be in violation. 08/23/11 Verified ownership information with the County of San Diego. 08/24/11 Received certified notice returned "attempted not known". 09/21/11 Work order authorization signed by City Official. 09/26/11 F.P.S.I. crews abated the property. 09/28/11 The owner was mailed a bill at our contracted rates. 09/28/11 A Notice of Abatement was filed on the property. 10/21/11 The owner was mailed a final bill. 06/05/12 The list of Fixed Charge Special Assessments [EXHIBIT "A"] and the City Clerk's "NOTICE OF PUBLIC CONFIRMATION OF COSTS HEARING" was served upon the property owner by means of Regular Mail, Certified Mail and Posting upon the property. CITY OF NATIONAL CITY FIRE DEPARTMENT 1243 E. 12th St. : Suite A : NATIONAL CITY, CA. 91950-4596 NOTICE TO ABATE PUBLIC NUISANCE Owner: L;K Patton Enterprises L L C Parcel Number: 552 330 04 00 Address: 9440 Chestnut St Date: 7/8/2011 Spring Valley, CA 91977 Location of Public Nuisance: 103 N Kenton Ave National City 91950 Instructions for Abatement Please clear the entire property of all weeds, dead vegetation, trash, debris and arundo. All piles of dead vegetation and debris must be removed from the property. (Please maintain any and all grasses below 3 inches year round) You are hereby directed to abate the public nuisance described above, of which you are the occupant or owner, within thirty (30) days of 7/8/2011. **Your failure to comply with this order will result in the City having your property cleaned by the City's contractor at your expense (per National City Municipal Code Chapter 1.36). A $350.00 administrative fee will be charged in addition to the contractor's fees to clean the property (per Resolution number 94-97). Violations are also subject to prosecution as misdemeanors. Guidelines For The Abatement of Flammable Vegetation For the protection of life and property, remove all brush, flammable vegetation, or combustible growth which is located from thirty (30) feel to one hundred (100) feet from such a building or structure or to the property line, whichever is nearer, or as required by the Fire Department, including the maintenance of grass and other vegetation more than thirty (30) from such building or structure. Cuttings are to be removed from the property and disposed of properly. Vegetation is to be cut within two (2) inches of the ground. "NOTICE REGARDING RARE, THREATENED OR ENDANGERED SPECIES" If you have previously received a notice from the California Department of Fish and Game or the U.S. Fish and Wildlife Services that rare, threatened or endangered species of fish or wildlife have occurred on your property in the areas identified for fuel break clearance, YOU MUST NOTIFY BOTH AGENCIES AND THE NATIONAL CITY FIRE DEPARTMENT IN WRITING AT LEAST TEN (10) DAYS PRIOR TO BEGINNING VEGETATION CLEARING. IF THESE AGENCIES FAIL TO OBJECT OR NOTIFY YOU OF ANY ALTERNATIVE PROCEDURES WITHIN THOSE TEN (10) DAYS, YOU MAY THEN PROCEED TO CLEAR VEGETATION AS DIRECTED BY THIS NOTICE. Failure to provide notification to these agencies may render you liable under Federal or State Law to penalties. National City Municipal Code 9.12.010 Public Nuisance Declared --In General Any of the following conditions are hereby declared to constitute a public nuisance: When the Fire Chief or his/her designee determines that there exists in any building or on any premises combustible, hazardous or explosive materials or dangerous dations of rubbish; or unnecessary accumulations of wastepaper, boxes, shavings, or any highly flammable materials which are so situated as to endanger life or pop.,,y; or finds obstructions to or on fire escapes, stairs, passageways, doors or windows that reasonably tend to interfere with the operations of the fire department or the egress of the occupants of such building of premises; or finds that the effectiveness of any exit door, attic separation or any fire separation wall is reduced; or finds that any provision of the Uniform Fire Code is being violated. B. When the Fire Chief or his/her designee deems any chimney, smokestack, stove, oven, incinerator, furnace ur other heating device, electric fixture or any appurtenance thereto, or anything regulated under a nationally recognized standard in or upon any building, structure or premises not specifically mentioned in the Uniform Fire Code, to be defective or unsafe so as to create a hazard_ C. When the Fire Chief or his/her designee finds any condition which in his/her judgment increases or may cause an increase of the hazard or menace of fire to a greater degree that customarily recognized as normal by persons in the public service regularly engaged in preventing, suppressing or extinguishing fire or any thing or act which may obstruct, delay, hinder or interfere with the operations of the fire department or the egress of occupants in the event of fire. National City Municipal Code 9.12.020 Public Nuisance Declared —Weeds and Other Flammable Materials All weeds, growing or located upon streets, sidewalks or private property are hereby declared to be a public nuisance. For the purposes of this chapter, "weeds" shall include the following: A. Weeds which bear seeds of a downy or wingy nature. B. Sagebrush, chaparral, and any other brush or weeds which attain such large growth as to become, when dry, a fire menace to adjacent improved property. C. Weeds which are otherwise noxious or dangerous. D. Poison oak and poison ivy when the conditions of growth are such as to constitute a menace the the public health. E. Dry grass, stubble, brush, litter, or other flammable material which endangers the public safety by creating a fire hazard in a portion of the City which has been zoned for single and multiple residence purposes. National City Municipal Code 1.36.010 Public Nuisance Defined "Public Nuisance" means any condition defined or declared to be a public nuisance in any section of this code, and/or and condition caused, maintained or permitted to exist which constitutes a threat to the public's health, safety and welfare or which significantly obstructs, injures or interferes with the reasonable of free use of property in a neighborhood, community or to any considerable number of persons. A public nuisance also has the saute meaning as set forth in California Civil Code Section 3479. National City Municipal Code 1.36.060 Abatement-- Appeal— Hearing Within ten (10) days from the date of posting, mailing or personal service of the required notice, the owner or person occupying or controlling such lot or premises affected may appeal to the City Council. Such appeal shall be in writing and shall he filed with the City Clerk. If you should have any questions, please feel free to call this number: 1-866-779-3774 Si usted tienealguna pregunta, por favor (lame al numero: 1-866-779-3774 tang katanungan, tumawag lang po sa numerong ito: 1-866-779-3774 y yours in public safety, 1-866-779-3774 ext. 311 or http://fireprevention.net Fire Prevention Services*** **You have the right to appeal this matter to the City Council within ten (10) days of the receipt of this notice. The appeal shall be in writing and filed with the City Clerk. (NCMC 1.36.050) ***Fire Prevention Services, Inc. is under contract with the City of National City. 3 NATIONAL CITY FIRE DEPARTMENT COMMON QUESTIONS AND ANSWERS ARE YOU THE CURRENT OWNER OF THIS PROPERTY? Yes 1r HAVE YOU CLEARED THIS PROPERTY SINCE THIS NOTICE? No DO YOU UNDERSTAND THE INSTRUCTIONS FOR ABATEMENT? No CALL FIRE PREVENTION 1-866-779-3774 http://fireprevention.net CALL FIRE PREVENTION FOR Yes RE -INSPECTION. 1-866-779-3774 http://fireprevention.net Yes HAVE YOU MADE ARRANGEMENTS TO ABATE THE PROPERTY? PROPERTY OWNERS ARE RESPONSIBLE FOR MAINTAINING HAZARD ABATEMENT ON A YEAR ROUND BASIS. No ► HAVE YOU THOROUGHLY READ THE ABATEMENT Yes— INSTRUCTIONS No WOULD YOU LIKE THE CITY TO ABATE THE HAZARD FOR YOU? No IF NOT ABATED WITHIN TIME SPECIFIED THE OWNER WILL BE CHARGED A $350.00 ADMINISTRATIVE FEE. PLUS FIRE PREVENTION WILL ABATE. THE OWNER WILL BE BILLED FOR ALL COSTS Yes Yes IF YOU DO NOT UNDERSTAND INSTRUCTIONS CALL FIRE PREVENTION. 1-866-779-3774 http://fireprevention.net CALL FIRE PREVENTION WHEN COMPLETED FOR RE -INSPECTION. 1-866-779-3774 http:llfireprevention.nt CALL FIRE PREVENTION FOR ARRANGEMENTS. 1-866-779-3774 http://fireprevention.net IF ARRANGEMENTS ARE MADE PRIOR TO CITY ABATING HAZARD, THE ADMINISTRATIVE FEE MAY BE WAIVED. 333 E. 16th Street : National City, CA : 91950-4596 CITY OF NATIONAL CITY SCHEDULE OF FEES 1. Tractor Mowing A. per parcel, sized 1 to 7,500 square feet B. per parcel, sized 7,501 to 15,000 square feet C. per parcel, sized 15,001 square feet to 30,000 square feet D. per parcel, sized 30,001 square feet to one acre E. Per square foot over one acre 2. Hand Labor A. per square foot of area abatcd Dozer Operation A. hourly rate B. move -on fce $250.00 $325.00 $400.00 $450.00 $ 00.02 $ 00.10 $150.00 $150.00 4. Debris Remediation (includes chipping, grinding, and/or shredding) A. per cubic yard of material prior to chipping, and or compacting $ 38.00 B. dump fees (reimbursement of cost) 5. Administrative Fee (failure to comply with final notice) A. per parcel 6. Attorney Services A. per parcel, per hour 7. Assessment Fees (includes preparing reports, attending hearings, etc.) A. Cost confirmations fee, per parcel 8. Miscellaneous Fees A. B. C. D E. F. G. H. special inspection fee abatement lien Interest on lien (apr) release of abatement lien public notary File duplication fee Unscheduled Labor per man hour unscheduled fees $350.00 $200.00 $275.00 $ 50.00 $ 50.00 10% $ 50.00 $ 20.00 $ 50.00 $ 50.00 (reimbursement of cost) 5 CITY OF NATIONAL CITY FIRE DEPARTMENT 1243 E. l2th St. : Suite A : NATIONAL CITY, CA. 91950-4596 FINAL NOTICE TO ABATE PUBLIC NUISANCE Owner: L;K Patton Enterprises L L C Address: 9440 Chestnut St Spring Valley, CA 91977 Date: 8/9/2011 Parcel Number: 552 330 04 00 Location of Public Nuisance: 103 N Kenton Ave National City 91950 Instructions for Abatement: Please clear the entire property of all weeds, dead vegetation, trash, debris and arundo. All piles of dead vegetation and debris must be removed from the property. (Please maintain any and all grasses below 3 inches year round) You are hereby directed to abate the public nuisance described above, of which you are the occupant or owner, within ten (10) days of 8/9/2011. **Your failure to comply with this order will result in you being charged the administrative fee and the City having your property cleaned by the City's contractor at Lour expense (per National City Municipal Code Chapter 1.36). A $350.00 administrative fee will be charged in addition to the contractor's fees to clean the property (per Resolution number 94-97). Violations are also subject to prosecution as misdemeanors. Guidelines For The Abatement of Flammable Vegetation For the protection of life and property, remove all brush, flammable vegetation, or combustible growth which is located from thirty (30) feet to one hundred (100) feet from such a building or structure or to the property line, whichever is nearer, or as required by the Fire Department, including the maintenance of grass and other vegetation more than thirty (30) from such building or structure. Cuttings are to be removed from the property and disposed of properly_ Vegetation is to be cut within two (2) inches of the ground. "NOTICE REGARDING RARE THREATENED OR ENDANGERED SPECIES" If you have previously received a notice from the California Department of Fish and Game or the U.S. Fish and Wildlife Services that rare, threatened or endangered species of fish or wildlife have occurred on your property in the areas identified for Mel break clearance, YOU MUST NOTIFY BOTH AGENCIES AND THE NATIONAL CITY FIRE DEPARTMENT IN WRITING AT LEAST TEN (10) DAYS PRIOR TO BEGINNING VEGETATION CLEARING. IF THESE AGENCIES FAIL TO OBJECT OR NOTIFY YOU OF ANY ALTERNATIVE PROCEDURES WITHIN THOSE TEN (10) DAYS, YOU MAY THEN PROCEED TO CLEAR VEGETATION AS DIRECTED BY THIS NOTICE. Failure to provide notification to these agencies may render you liable under Federal or State Law to penalties. National City Municipal Code 9.12.010 Public Nuisance Declared --In General Any of the following conditions are hereby declared to constitute a public nuisance: A. When the Fire Chief or his/her designee determines that there exists in any building or on any premises combustible, hazardous or explosive materials or aangerous accumulations of rubbish; or unnecessary accumulations of wastepaper, boxes, shavings, or any highly flammable materials which are so situated as to endanger fe or property; or finds obstructions to or on fire escapes, stairs, passageways, doors or windows that reasonably tend to interfere with the operations of the fire department or the egress of the occupants of such building of premises; or finds that the effectiveness of any exit door, attic separation or any fire separation wall is reduced; or finds that any provision of the Uniform Fire Code is being violated. B. When the Fire Chief or his/her designee deems any chimney, smokestack, stove, oven, incinerator, furnace or other heating device, electric fixture or any appurtenance thereto, or anything regulated under a nationally recognized standard in or upon any building, structure or premises not specifically mentioned in the Uniform Fire Code, to be defective or unsafe so as to create a hazard. C. When the Fire Chief or his/her designee finds any condition which in his/her judgment increases or may cause an increase of the hazard or menace of fire to a greater degree that customarily recognized as normal by persons in the public service regularly engaged in preventing, suppressing or extinguishing fire or any thing or act which may obstruct, delay, hinder or interfere with the operations of the fire department or the egress of occupants in the event of fire. National City Municipal Code 9.12.020 Public Nuisance Declared --Weeds and Other Flammable Materials Alt weeds, growing or located upon streets, sidewalks or private property are hereby declared to be a public nuisance. For the purposes of this chapter, "weeds" shall include the following: A. Weeds which bear seeds of a downy or wingy nature_ B. Sagebrush, chaparral, and any other brush or weeds which attain such large growth as to become, when dry, a fire menace to adjacent improved property. C. Weeds which are otherwise noxious or dangerous. D. Poison oak and poison ivy when the conditions of growth are such as to constitute a menace the the public health. E. Dry grass, stubble, brush, litter, or other flammable material which endangers the public safety by creating a fire hazard in a portion of the City which has been zoned for single and multiple residence purposes. National City Municipal Code 136.010 Public Nuisance Defined "Public Nuisance" means any condition defined or declared to be a public nuisance in any section of this code, and/or and condition caused, maintained or permitted to exist which constitutes a threat to the public's health, safety and welfare or which significantly obstructs, injures or interferes with the reasonable of free use of property in a neighborhood, community or to any considerable number of persons. A public nuisance also has the same meaning as set forth in California Civil Code Section 3479. National City Municipal Code 136.060 Abatement— Appeal— Hearing Within ten (10) days from the date of posting, mailing or personal service of the required notice, the owner or person occupying or controlling such lot or premises affected may appeal to the City Council. Such appeal shall be in writing and shall be filed with the City Clerk. If you should have any questions, please feel free to call this number: 1-866-779-3774 Si usted tienealguna pregunta, por favor !lame al numero: 1-866-779-3774 Sa anumang katanungan, Iumawag lang po sa numerong ito: 1-866-779-3774 acerely yours in public safety, notice. 1-866-779-3774 ext. 311 or http://fireprevention.net Fire Prevention Services*** rev. 03/27/06, 0424/06, 0621/06 **You have the right to appeal this matter to the City Council within ten (10) days of the receipt of this The appeal shall be in writing and filed with the City Clerk. (NCMC 1.36.050) ***Fire Prevention Services, Inc. is under contract with the City of National City. NATIONAL CITY FIRE DEPT. 1243 National City Boulevard NATIONAL CITY, CA 91950-45% 1n ru ERT1 1E AI = ECE PT. Atooto Ki 552 330 04 00 NC L,K Patton Enterprises L L C 9440 Chestnut St Sprang Valley CA 91977 i uia 71110 2780 00111 2040 1771 Lattrlil ntearprisas L L G 44ut t ptting Valley, CA 11977 o€1'ulslie Nuisance LQ36N K n$ foi4 #bateetlent: 1L" se A leai"t RETURN RE ,PT REQUEST.,. nten ,Ave N ke entire nropertv'. eel Number. 'IC POSOMUWWU car 91977 RCTORN TO S;CNOM9 ATTEMPTED --' NOT }<NOWN UNADLE TO FORWARD DC! tj9.1.950.459455,0F (( tt kA-O7"71-OjA(:4O-I .i ll�t�i ll i�i#�itl7lFit�i �dFrJ t)ir�t �i lllat)3 itt{t(�SI H lH JJ U.S. POS1'HGE PAID EL G92(02QcA AUG , II AMC9NT WO d` CITY OF NATIONAL CITY FIRE DEPARTMENT 333 E. 16th St. : NATIONAL CITY, CA. 91950-4596 WORK ORDER AUTHORIZATION Authorization # 3225 Owner: L;K Patton Enterprises L L C Address: 9440 Chestnut St Spring Valley, CA 91977 Parcel #552 330 04 00 Job location:103 N Kenton Ave National City 91950 Authorized by: Signature: 4-'6'ik t v1 c Date• WHEN SIGNED THIS DOCUMENT ALLOWS RAGHT OF PASSAGE ONTO PRIVATE PROPERTY FOR THE PURPOSE OF FIRE VIOLATION / PUBLIC NUISANCE REDUCTION OR REMOVAL. METHOD OF CLEARING Entire Parcel Fire Break Hand Cutting: ,1500 sq. ft. Removal: g • 3 3 cu. yds. Tractor Mowing: sq. ft. Discing: sq. ft. CREW INFORMATION Crew Date Type: Type: Type: Type: Notes: Please clear the entire property of all weeds, dead vegetation trash, debris and arundo. All piles of dead vegetation and debris must be removed from the property. (Please maintain any and all grasses below 3 inches year round) /0 06 ® SAN WOO COUNTT •SSE5508•S MAP 800A 39.3. ••6E 33.. CERVANTES AVE ARROYO 330 l33" © ' 1 3 I li3. m ml1��f 77a R �5 173 co (2319 1 O • A 2 a a smr i3x0 2 DIVISION 3 >Mr 51r4 ST TH5 NIP WA5 DGEPAR(D FOQ ASSES9®4 PJ3O 5 31Y. IC wain' 6 ASSLMSO WR THE ACCtAMCT OF TIE DATA SfOYN ASSESSORS PARCELS ANT 147 COAX WITH LOCAL AECEC5 N OR RMEOFG ORDINANCES A MT1S73E 1]0 8 50r11ME u$ C w7"72152 n.w O Rqo n w E 001r127tE IAAi F F•10 O 51,00TE ria 8 • MAP 2677-NATIONAL VISTA 552-33. 6/12/01 .E3 C BLX -PNGES OLD NEW ♦RICUT 330 10 10-20 861 2111 1E 01I4725 20 031 •619 9 5* R 0314499 SEP 12 2002 • .�� 4 6 grf@r glagpral »' amoun of work done TrQf ,&1 6d D 0.1 r J- 2 Tatra R,%Qn;Cu. ya �. \} \ /� Fire Prevention Services, Inc. P.O. Box 1720 : El Cajon, CA 92022-1720 (866) 779-3774 : fax (619) 445-6336 http://fireprevention.net 9/28/2011 1,:K Patton Enterprises L L C 9440 Chestnut St Spring Valley, CA 91977 Parcel # 552 330 04 00 Location: 103 N Kenton Ave National City 91950 Dear L;K Patton Enterprises L L C, This letter is to inform you that the Public Nuisance on the above referenced property was abated pursuant to a prior Notice to Abate and order of the City of National City. Fire Prevention Services was contracted by the City of National City to help reduce Public Nuisances and potential fire violations thus improving the safety of its citizens. The abatement work on your property was performed as mandated by The National City Municipal Code Chapter 1.36. The charges thus far total S916.54. You will incur no further costs if this amount is paid within fifteen (15) days of the date of this notice. Failure to pay this bill may result in the filing of an abatement lien upon your property. Please make your check payable to Fire Prevention Services and include the Parcel # 552 330 04 00 on the check. If you have any questions please call us direct at (866) 779-3774. Sincerely, Fire Prevention Services, Inc. rev.05/ 19/06 • NATIONAL CITY SCHEDULE OF FEES Lctor Mowing quantity sub total H. per parcel, sized 1 to 7,500 square feet $250.00 B. per parcel, sized 7,501 to 15,000 square feet $325.00 C. per parcel, sized 15,001 square feet to 30,000 square feet $400.00 D. per parcel, sized 30,001 square feet to one acre $450.00 E. per square foot over one acre $00.02 sq. ft. Hand Labor A. per square foot of area abated $0.10 2500 sq. ft. 250.00 Dozer Operation A. hourly rate B. move -on fee $150.00 $150.00 Debris Remediation (includes chipping, grinding, and/or shredding) A. per cubic yard of material prior to chipping, and or compacting $38.00 X 8.33 cu.vds =316.54 B. dump fees (reimbursement of cost) Administrative Fee (failure to comply by deadline of notice) A. per parcel $350.00 1 350.00 n homey Services A. per parcel, per hour Assessment Fees (includes preparing reports, attending hearings, etc.) A. cost confirmation fee, per parcel $200.00 $275.00 Miscellaneous Fces Per Parcel A. special inspection fee $50.00 B. abatement lien $50.00 C. Interest on lien (apr) 10% D. release of abatement lien $50.00 E. public notary $20.00 F. file duplication fee $50.00 G. unscheduled Labor per man hour $50.00 H. unscheduled fees (reimbursement of cost) FILE # 3225 APN # 552-330-04-00 TOTAL $ 916.54 f5 Fire Prevention Services, Inc. P.O. Box 1720 : El Cajon, CA 92022-1720 (866) 779-3774 : fax (619) 445-6336 http://fireprevention.net Final Bill 10/21/2011 L;K Patton Enterprises L L C 9440 Chestnut St Spring Valley, CA 91977 Ref: Parcel # 552 330 04 00 Dear L;K Patton Enterprises L L C, This is a reminder of the letter we sent you on 9/28/201 1 and we have not received payment in the amount of $916.54 If we do not receive payment within 10 days we will be required to seek appropriate action to collect these monies. This action may include filing an abatement lien on your property and forwarding this bill to our collection agency. Under state and local law, costs for such action will be added to your total amount. Please tender a check to us immediately to avoid any further action. Make your check payable to Fire Prevention Services, Inc., and include the Parcel # 552 330 04 00 on the check. Should you need to discuss this matter you may contact us at (866) 779-3774. Sincerely. Fire Prevention Services. Inc. rev.05/I9/06 /e6 RECORDING REQUESTED BY Fire Prevention Services, Inc. p0 Box 2012 Ipine, CA 91903-2012 0 19) 562-1058 fax (619) 445-6336 AND WHEN RECORDED MAIL TO Fire Prevention Services, Inc. PO Box 2012 Alpine, CA 91903-2012 D D C ## 2011-0508672 1111111111111111111111111 III III111111I11111111111111111111 III SEP 29, 2011 3:35 PM OFFICIAL RECORDS SAN DIEGO COUNTY RECORDER'S OFFICE Ernest J. Dronenburg- Jr., COUNTY RECORDER FEES: 0.00 PAGES 1 Ill I IIII I I III II I I IH 111111111111111111111111 IIIII I111111111 I IIH 11111 H111111II 11111111 NOTICE OF ABATEMENT TO THE CURRENT OWNER OF RECORD AND ANY FUTURE OWNERS/PURCHASERS OF THE HEREIN DESCRIBED PROPERTY WHEREAS it was determined that a violation of Chapter 1.36 of the National City Municipal Code did exist, and WHEREAS such violation was ordered abated on 9/21/2011, and WHEREAS representatives of the National City Fire Department abated the violation(s) on 9/26/201 1, and WHEREAS the charge for such abatement amounted to $986.54; THEREFORE be it known that an abatement obligation exists on the property regardless of owner until paid. The current owner of the property is L;K Patton Enterprises L L C at 9440 Chestnut St, Spring Valley, CA 91977 described as follows: )N # 552 330 04 00 )DRESS: 103 N Kenton Ave National City 91950 LEGAL DESCRIPTION: Lot 120 'This abatement obligation shall attach to the property, not the owner, and after confirmation by the City Council shall become a special assessment on the property tax bill. If not paid pursuant to State Law and State Tax Lien Law, the property may be sold to satisfy that obligation. The amount of such claim shall be $986.54 plus interest and other costs which may hereafter become due. This filing does not preclude the filing of legal action for collection. Should such actions be required or determined to be appropriate, reasonable legal fees will be incurred and added to said obligation. DATED: September 28, 2011 State of California ) SS. County of San Diego BY Ken Osborn, Fire Prevention Services, Inc., Designee for National City Fire Department Certificate Of Acknowledgement On September 28, 2011 before me, Michelle D. Higgins, Notary Public, personally appeared Ken Osborn, 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. 1 LE D. NIGGINS COMM. *1900612 g Notary Public - California p San Diego County Comm. Expires Au.. 21, 2014 (Seal) /7 SUMMARY REPORT FOR APN 554-180-05-00 02/01/11 Initial inspection was made, property was found to be in violation. 02/07/11 Mailed 30 day courtesy notice to the property owner. 03/10/11 Re -inspection was made, property was found to be in violation. 03/10/11 Posted property. 03/14/11 Mailed 10 day final notice to the owner, certified mail. 03/25/11 Final inspection was made, property was found to be in violation. 03/28/11 Verified ownership information with the County of San Diego. 04/05/11 Received certified notice returned "unclaimed". 04/13/11 Work order authorization signed by City Official. 05/19/11 F.P.S.I. crews abated the property. 05/23/11 The owner was mailed a bill at our contracted rates. 05/23/11 A Notice of Abatement was filed on the property. 06/20/1 1 The owner was mailed a final bill. 06/05/12 The list of Fixed Charge Special Assessments [EXHIBIT "Al and the City Clerk's "NOTICE OF PUBLIC CONFIRMATION OF COSTS HEARING" was served upon the property owner by means of Regular Mail, Certified Mail and Posting upon the property. Owner: CITY OF NATIONAL CITY FIRE DEPARTMENT 1243 E. 12th St. : Suite A : NATIONAL CITY, CA. 91950-4596 NOTICE TO ABATE PUBLIC NUISANCE Carolino Construction Corp Address: 1366 Corona Vis Bonita, CA 91902 Date: 2/7/2011 Parcel Number: 554 180 05 00 Location of Public Nuisance: 3109 E 8th St National City 91950 Instructions for Abatement: Please clear the entire property of all weeds, dead vegetation, trash, debris and arundo. All piles of dead vegetation and debris must be removed from the property. (Please maintain any and all grasses below 3 inches year round) Please remove dead Christmas tree from property and dispose of it properly. (Along Rachael Ave) You are hereby directed to abate the public nuisance described above, of which you are the occupant or owner, within thirty (30) days of 2/72011. *Your failure to comply with this order will result in the City having your property cleaned by the City s contractor at your expense (per National City Municipal Code Chapter 1.36). A $350.00 administrative fee will be charged in addition to the contractor's fees to clean the property (per Resolution number 94-97). Violations are also subject to prosecution as misdemeanors_ GuidelinesFor The Abatement of Flammable VeEetation Far the protection of life and property, remove all brush, flammable vegetation, or combustible growth which is located from thirty (30) feet to one hundred (100) feet from such a building or structure or to the property line, whichever is nearer, or as required by the Fire Department, including the maintenance of grass and other vegetation more than thirty (30) from such building or structure. Cuttings are to be removed from the property and disposed of properly. Vegetation is to be cut within two (2) inches of the ground. "NOTICE REGARDING RARE, THREATENED OR ENDANGERED SPECIES" If you have previously received a notice from the Califomia Department of Fish and Game or the U.S. Fish and Wildlife Services that rare, threatened or endangered species of fish or wildlife have occurred on your property in the areas identified for fuel break clearance, YOU MUST NOTIFY BOTH AGENCIES AND THE NATIONAL CITY FIRE DEPARTMENT IN WRITING AT LEAST TEN (10) DAYS PRIOR TO BEGINNING VEGETATION CLEARING. IF THESE AGENCIES FAIL TO OBJECT OR NOTIFY YOU OF ANY ALTERNATIVE PROCEDURES WITHIN THOSE TEN (10) DAYS, YOU MAY THEN PROCEED TO CLEAR VEGETATION AS DIRECTED BY THIS NOTICE. Failure to provide notification to these agencies may render you liable under Federal or State Law to penalties. National City Municipal Code 9.12.010 Public Nuisance Declared —In General Any of the following conditions are hereby declared to constitute a public nuisance: A. When the Fire Chief or his/her designee determines that there exists in any building or on any premises combustible, hazardous or explosive materials or dangerous accumulations of rubbish; or unnecessary accumulations of wastepaper, boxes, shavings, or any highly flammable materials which are so situated as to endanger life or property; or finds obstructions to or on fire escapes, stairs, passageways, doors or windows that reasonably tend to interfere with the operations of the fire department or the egress of the occupants of such building of premises; or finds that the effectiveness of any exit door, attic separation or any fire separation wall is reduced; or finds that any provision of the Uniform Fire Code is being violated. B. When the Fire Chief or his/her designee deems any chimney, smokestack, stove, oven, incinerator, furnace or other heating device, electric fixture or any appurtenance thereto, or anything regulated under a nationally recognized standard in or upon any building, structure or premises not specifically mentioned in the Uniform Fire Code, to be defective or unsafe so as to create a hazard. When the Fire Chief or his/her designee finds any condition which in his/her judgment increases or may cause an increase of the hazard or menace of fire to a greater degree that customarily recognized as normal by persons in the public service regularly engaged in preventing, suppressing or extinguishing fire or any thing or act which may obstruct, delay, hinder or interfere with the operations of the fire department or the egress of occupants in the event of fire. National City Municipal Code 9.12.020 Public Nuisance Declared --Weeds and Other Flammable Materials All weeds, growing or located upon streets, sidewalks or private property are hereby declared to be a public nuisance. For the purposes of this chapter, "weeds" shall include the following: A. B. C. D. E. Weeds which bear seeds of a downy or wingy nature. Sagebrush, chaparral, and any other brush or weeds which attain such large growth as to become, when dry, a Ere menace to adjacent improved property. Weeds which are otherwise noxious or dangerous. Poison oak and poison ivy when the conditions of growth are such as to constitute a menace the the public health. Dry grass, stubble, brush, litter, or other flammable material which endangers the public safety by creating a fire hazard in a portion of the City which has been zoned for single and multiple residence purposes. National City Municipal Code 1.36.010 Public Nuisance Defined "Public Nuisance" means any condition defined or declared to be a public nuisance in any section of this code, and/or and condition caused, maintained or permitted to exist which constitutes a threat to the public's health, safety and welfare or which significantly obstructs, injures or interferes with the reasonable of free use of property in a neighborhood, community or to any considerable number of persons. A public nuisance also has the same meaning as set forth in California Civil Code Section 3479. National City Municipal Code 136.060 Abatement— Appeal— Hearing Within ten (10) days from the date of posting, mailing or personal service of the required notice, the owner or person occupying or controlling such lot or premises affected may appeal to the City Council. Such appeal shall be in writing and shall be filed with the City Clerk. If you should have any questions, please feel free to call this number: 1-866-779-3774 Si usted tienealguna pregunta, por favor Ilame al numero: 1-866-779-3774 Sa anumang katanungan, tumawag lang po sa numerong ito: 1-866-779-3774 / L Sincerely yours in public safety, "You have the right to appeal this matter to the City Council within ten (10) days of the receipt of this notice. 1-866-779-3774 ext. 311 or httpJ/fireprevention.net The appeal shall be in writing and filed with the City Clerk. (NCMC 1.36.050) NATIONAL CITY FIRE DEPARTMENT COMMON QUESTIONS AND ANSWERS ARE YOU THE CURRENT OWNER OF THIS PROPERTY? Yes HAVE YOU CLEARED THIS PROPERTY SINCE THIS NOTICE? No v DO YOU UNDERSTAND THE INSTRUCTIONS FOR ABATEMENT? No Yes NNN, PROPERTY OWNERS ARE RESPONSIBLE FOR MAINTAINING HAZARD ABATEMENT ON A YEAR ROUND BASIS. Yes HAVE YOU MADE ARRANGEMENTS TO ABATE THE PROPERTY? CALL FIRE PREVENTION 1-866-779-3774 http://fireprevention.net CALL FIRE PREVENTION FOR RE -INSPECTION. 1-866-779-3774 http://fireprevention.net HAVE YOU THOROUGHLY READ THE ABATEMENT Yes INSTRUCTIONS No WOULD YOU LIKE THE CITY TO ABATE THE HAZARD FOR YOU? No IF NOT ABATED WITHIN TIME SPECIFIED THE OWNER WILL BE CHARGED A $350.00 ADMINISTRATIVE FEE. PLUS FIRE PREVENTION WILL ABATE. THE OWNER WILL BE BILLED FOR ALL COSTS Ye Yes IF YOU DO NOT UNDERSTAND INSTRUCTIONS CALL FIRE PREVENTION. 1-866-779-3774 http://fireprevention.net CALL FIRE PREVENTION WHEN COMPLETED FOR RE -INSPECTION. 1-866-779-3774 http://fireprevention.net CALL FIRE PREVENTION FOR ARRANGEMENTS. 1-866-779-3774 http://fireprevention.net IF ARRANGEMENTS ARE MADE PRIOR TO CITY ABATING HAZARD, THE ADMINISTRATIVE FEE MAY BE WAIVED. 333 E. 16th Street : National City, CA : 91950-4596 CITY OF NATIONAL CITY SCHEDULE OF FEES 1. Tractor Mowing A. per parcel, sized 1 to 7,500 square feet B. C. D. E. per parcel, sized 7,501 to 15,000 square feet per parcel, sized 15,001 square feet to 30,000 square feet per parcel, sized 30,001 square feet to one acre Per square foot over one acre 2. Hand Labor A. per square foot of area abated 3. Dozer Operation A. hourly rate B. move -on fee $250.00 $325.00 $400.00 $450.00 $ 00.02 $ 00.10 $150.00 $ 1 50.00 4. Debris Remediation (includes chipping, grinding, and/or shredding) A. per cubic yard of material prior to chipping, and or compacting $ 38.00 B. dump fees (reimbursement of cost) 5. Administrative Fee (failure to comply with final notice) A. per parcel 6. Attorney Services A. per parcel, per hour 7. Assessment Fees (includes preparing reports. attending hearings, etc.) A. Cost confirmations fee, per parcel 8. Miscellaneous Fees A. B. C. D E. F. G. H. special inspection fee abatement lien Interest on lien (apr) release of abatement lien public notary File duplication fee Unscheduled Labor per man hour unscheduled fees $350.00 $200.00 $275.00 $ 50.00 $ 50.00 10% $ 50.00 $ 20.00 $ 50.00 $ 50.00 (reimbursement of cost) CITY OF NATIONAL CITY FIRE DEPARTMENT 1243 E. 12th St. : Suite A : NATIONAL CITY, CA. 91950-4596 FINAL NOTICE TO ABATE PUBLIC NUISANCE Owner: Carolino Construction Corp Address: 1366 Corona Vis Bonita, CA 91902 Date: 3/14/2011 Parcel Number: 554180 05 00 Location of Public Nuisance: 3109 E 8th St National City 91950 instructions for Abatement: Please clear the entire property of all weeds, dead vegetation, trash, debris and arundo. All piles of dead vegetation and debris must be removed from the property. (Please maintain any and all grasses below 3 inches year round) Please remove dead Christmas tree from property and dispose of it properly. (Along Rachael Ave) You are hereby directed to abate the public nuisance described above, of which you are the occupant or owner, within ten (10) days of 3/14/2011. **Your failure to comply with this order will result in you being charged the administrative fee and the City having your property cleaned by the City's contractor at your expense (per National City Municipal Code Chapter 1.36). A $350.00 administrative fee will be charged in addition to the contractor's fees to clean the property (per Resolution number 94-97). Violations are also subject to prosecution as misdemeanors. Guidelines For The Abatement of Flammable Vegetation For the protection of life and property, remove all brush, flammable vegetation, or combustible growth which is located from thirty (30) feet to one hundred (100) feet from such a building or structure or to the property line, whichever is nearer, or as required by the Fire Department, including the maintenance of grass --and other vegetation more than thirty (30) from such building or structure. Cuttings are to be removed from the property and disposed of properly. Vegetation is to be cut within two (2) inches of the ground. L, "NOTICE REGARDING RARE, THREATENED OR ENDANGERED SPECIES" If you have previously received a notice from the California Department of Fish and Game or the U.S. Fish and Wildlife Services that rare, threatened or endangered species of fish or wildlife have occurred on your property in the areas identified for fuel break clearance, YOU MUST NOTIFY BOTH AGENCIES AND THE NATIONAL CITY FIRE DEPARTMENT IN WRITING AT LEAST TEN (10) DAYS PRIOR TO BEGINNING VEGETATION CLEARING. IF THESE AGENCIES FAIL TO OBJECT OR NOTIFY YOU OF ANY ALTERNATIVE PROCEDURES WITHIN THOSE TEN (10) DAYS, YOU MAY THEN PROCEED TO CLEAR VEGETATION AS DIRECTED BY THIS NOTICE. Failure to provide notification to these agencies may render you liable under Federal or State Law to penalties. National City Municipal Code 9.12.010 Public Nuisance Declared —In General Any of the following conditions are hereby declared to constitute a public nuisance! When the Fire Chief or his/her designee determines that there exists in any building or on any premises combustible, hazardous or explosive materials or uangerous accumulations of rubbish; or unnecessary accumulations of wastepaper, boxes, shavings, or any highly flammable materials which are so situated as to endanger life or property; or finds obstructions to or on fire escapes, stairs, passageways, doors or windows that reasonably tend to interfere with the operations of the fire department or the egress of the occupants of such building of premises; or finds that the effectiveness of any exit door, attic separation or any fire separation wall is reduced; or finds that any provision of the Uniform Fire Code is being violated. B. When the Fire Chief or his/her designee deems any chimney, smokestack, stove, oven, incinerator, furnace or other heating device, electric fixture or any appurtenance thereto, or anything regulated under a nationally recognized standard in or upon any building, structure or premises not specifically mentioned in the Uniform Fire Code, to be defective or unsafe so as to create a hazard. C. When the Fire Chief or his/her designee finds any condition which in his/her judgment increases or may cause an increase of the hazard or menace of fire to a greater degree that customarily recognized as normal by persons in the public service regularly engaged in preventing, suppressing or extinguishing fire or any thing or act which may obstruct, delay, hinder or interfere with the operations of the fire department or the egress of occupants in the event of fire. National City Municipal Code 9.12.020 Public Nuisance Declared —Weeds and Other Flammable Materials All weeds, growing or located upon streets, sidewalks or private property are hereby declared to be a public nuisance. For the purposes of this chapter, "weeds" shall include the following: A. Weeds which bear seeds of a downy or wingy nature. B. Sagebrush, chaparral, and any other brush or weeds which attain such large growth as to become, when dry, a fire menace to adjacent improved property. C. Weeds which are otherwise noxious or dangerous. D. Poison oak and poison ivy when the conditions of growth are such as to constitute a menace the the public health. E. Dry grass, stubble, brush, litter, or other flammable material which endangers the public safety by creating a fire hazard in a portion of the City which has been zoned for single and multiple residence purposes. National City Municipal Code 1.36.010 Public Nuisance Defined "Public Nuisance" means any condition defined or declared to be a public nuisance in any section of this code, and/or and condition caused, maintained or permitted to exist which constitutes a threat to the public's health, safety and welfare or which significantly obstructs, injures or interferes with the reasonable of free use of property in a neighborhood, community or to any considerable number of persons. A public nuisance also has the same meaning as set forth in California Civil Code Section 3479. National City Municipal Code 1.36.060 Abatement-- Appeal— Hearing Within ten (10) days from the date of posting, mailing or personal service of the required notice, the owner or person occupying or controlling such lot or premises affected may appeal to the City Council. Such appeal shall be in writing and shall be filed with the City Clerk. If you should have any questions, please feel free to call this number: 1-866-779-3774 usted ticnealguna pregunta, por favor !lame al numero: 1-866-779-3774 t anumang katanungan, tumawag lang po sa numerong ito: 1-866-779-3774 Sincerely yours in public safety, **You have the right to appeal this matter to the City Council within ten (10) days of the receipt of this notice. 1-866-779-3774 ext. 311 or http://frreprevention.net The appeal shall be in writing and filed with the City Clerk. (NCMC 1.36.050) "*Fire Prevention Services, Inc. is under contract with the City of National City. c... a...,...,;,.., c....r..ow••• NATIONAL CITY FIRE DEPT. 1243Natiornil City Boulevard NATIONAL ('Irv, CA 91950-4596 ru .7" S Postai Servi CERTIFIED MAfl, FIECEIPT stie Afoll ; irmomooft 470volog° 4149"4444141 tittonaana4 tint aura No0iyao in iviiiiii404ntwoot = „ , 1:11 554 180 05 OD NC Carolino Construction Corp 1366 Corona Vis Bonita CA 91902 ps p `s- - ' TICE 7010 1670 0000 4427 0281 Owner: Carolino Construction Corp Parcel Number Address: 1 366 Corona Vis Date: 3/14/2011 Bonita, CA 91902 Location of Public Nuisance: 3109 E 8th St National city 91950 'ostructions for Abatement. Plemeo 4140.11. +4" UNITEOSZ3ThS POSTAL SSRV'CF 1000 9 2 1 I:11C 1 U.S. P0S1HGE FRIO EL UiJON.0 92020 MR AMOUNT 91902 000 1 1 92 - 08 00 00/01/11 n,-1,tp!%x 0,1 .it'3,1t,. i4e LINAMLE TO FORWARD E1C: 91 .50,41,5959.9 *0104-03.550-14-39 44,,,,p444,,,t44-44,41.,4,14W147-4A CITY OF NATIONAL CITY FIRE DEPARTMENT 333 E. l6th St.: NATIONAL CITY, CA. 91950-4596 WORK ORDER AUTHORIZATION Authorization # 2856 Owner: Carolino Construction Corp Address: 1366 Corona Vis Bonita, CA 91902 Parcel #554 180 05 00 Job location:3109 E 8th St National City 91950 Authorized Date: 4- 1 l ' 1 WHEN SIGNED THIS DOCUMEI4T LOWS RIGHT OF PASSAGE ONTO PRIVATE PROPERTY FOR THE PURPOSE OF FIRE VIOLATION / PUBLIC NUISANCE REDUCTION OR REMOVAL. METHOD OF CLEARING Entire Parcel Fire Break Hand Cutting: sq. ft. Removal: cu. yds. Tractor Mowing: sq. ft. Discing: sq. ft. CREW INFORMATION Crew Date Type: Type: Type: Type: Notes: Please clear the entire property of all weeds, dead vegetation, trash, debris and arundo. All piles of dead vegetation and debris must be removed from theproperty.jPlease maintain any and all grasses below 3 inches year round) Please remove dead Christmas tree from property and dispose of it pr perly. (Along_Rachael Ave) 06 SAN DIEGO COUNTY ASSESSON'S MAP B00A.94 PAGE ,R 1-800445-7334 1 2 3t 4 5 5T," 0 I w ,6 7;c O7cZ. 7/5QS 0 t ECOIOS 1V 7z7 \ST OP 7lo' - n4- S-T.+ u1 z YI 4 1 _ �YSE COR OSEC I05 THS ALW WAS PREPARED FOR ASMSSM'.M PUIFOSES DRAT. IC LRBLOY LS ASSWED FOR TIE ACOIRACT OF THE DATA "OWN. A55E5909 S PARCELS ,uT IUT CDAPLY WITH LOCAL SLBDNRDN OR &iDH C90wNCES. y. SCALE IN 1/10 OF AN INCHI. 554-18. 12/22/99 RAC CHANGES EA.K OLD NEW rR CUT 4 4A•S • tr OP 99 4697 V,APP. 01 1.:,3 MAP 166 - RANCHO DE LA NACION -POR SEQ OF SEO OF QSEC 105 ROS 8346 Work .a.pap for d!ovam; and rncwnpfwork don Hand Scr,rjQDD Trgctr'Sq, 719t41 Rqrn'QI CW. Yd9.! ,Ne) ree 2g cb Fire Prevention Services, Inc. P.O. Box 1720 : El Cajon, CA 92022-1720 (619) 401-1863 : fax (619) 445-6336 http:/lfireprevention.net 5/23/2011 Carotino Construction Corp 1366 Corona Vis Bonita, CA 91902 Parcel # 554 180 05 00 Location: 3109 E 8111 St National City 91950 Dear Carolino Construction Corp, -T))v0 This letter is to inform you that the Public Nuisance on the above referenced property was abated pursuant to a prior Notice to Abate and order of the City of National City. Fire Prevention Services was contracted by the City of National City to help reduce Public Nuisances and potential fire violations thus improving the safety of its citizens. The abatement work on your property was performed as mandated by The National City Municipal Code Chapter 1.36. The charges thus far total $950.00. You will incur no further costs if this amount is paid within fifteen (15) days of the date of this notice. Failure to pay this bill may result in the filing of an abatement lien upon your property. Please make your check payable to Fire Prevention Services and include the Parcel # 554 180 05 00 on the check. If you have any questions please call us direct at 619-401-1863. Sincerely, Fire Prevention Services, Inc. rev.05/19/06 30 Tractor Mowing NATIONAL CITY SCHEDULE OF FEES 00`0)\Y' quantity sub total A. per parcel, sized 1 to 7.500 square feet $250.00 B. per parcel, sized 7,501 to 15,000 square feet $325.00 C. per parcel, sizcd 15,001 square feet to 30,000 square feet $400.00 D. per parcel, sized 30,001 square feet to one acre $450.00 E. per square foot over one acre $00.02 sq. ft. Hand Labor A. per square foot of area abated $0.10 6000 sq. ft. 600.00 Dozer Operation A. hourly rate B. move -on fee $150.00 $1.50. 00 Debris Remediation (includes chipping, grinding, and/or shredding) A. per cubic yard of material prior to chipping, and or compacting $38.00 X B. dump fees (reimbursement of cost) cu.vds = Administrative Fee (failure to comply by deadline of notice) A. per parcel $350.00 1 350.00 Attorney Services A. per parcel, per hour Assessment Fees (includes preparing reports, attending hearings, etc.) A. cost confirmation fee, per parcel $200.00 S275.00 Miscellaneous Fees Per Parcel A. special inspection fee $50.00 B. abatement lien $50.00 C. Interest on lien (apr) 10% D. release of abatement lien $50.00 L. public notary $20.00 F. file duplication fee $50.00 G. unscheduled Labor per man hour $50.00 H. unscheduled fees (reimbursement of cost) FILE, # 2856 APN # 554-180-05-00 TOTAL $ 950.00 3 Fire Prevention Services, Inc. P.O. Box 1720 : Et Cajon, CA 92022-1720 (866) 779-3774 : fax (619) 445-6336 http://fireprevention.net Final Bill 6/20/2011 Carolino Construction Corp 1366 Corona Vis Bonita, CA 91902 Ref: Parcel # 554 180 05 00 Dear Carolino Construction Corp, This is a reminder of the letter we sent you on 5/23/201 1 and we have not received payment in the amount of $950.00 If we do not receive payment within 10 days we will be required to seek appropriate action to collect these monies. This action may include filing an abatement lien on your property and forwarding this bill to our collection agency. Under state and local law, costs for such action will be added to your total amount. Please tender a check to us immediately to avoid any further action. Make your check payable to Fire Prevention Services, Inc., and include the Parcel # 554 180 05 00 on the check. Should you need to discuss this matter you may contact us at (866) 779-3774. Sincerely, Fire Prevention Services, Inc. rev.05/ 19/06 3' RECORDING REQUESTED BY Fire Prevention Services, Inc. PO Box 2012 Alpine, CA 91903-2012 (619) 562-1058 fax (619) 445-6336 AND WHEN RECORDED MAIL TO Fire Prevention Services, Inc. PO Box 2012 Alpine, CA 91903-2012 /vy D O C it 2011-0267884 I IIIII II II III I IIIII III IIIII IIIII IIII IIIII IIIII IIII11111111 MAY 24, 2011 3:10 PM OFFICIAL RECORDS SAN DIEGO COUNTY RECORDER'S OFFICE Ernest J. Dranenburg, Jr., COUNTY RECORDER FEES: 0.00 PAGES: 1 1IIIIII1111111111111111111111111111111111111111(1111111111111111111111111111111IIII III NOTICE OF ABATEMENT TO THE CURRENT OWNER OF RECORD AND ANY FUTURE OWNERS/PURCHASERS OF TIIE HEREIN DESCRIBED PROPERTY WHEREAS it was determined that a violation of Chapter 1.36 of the National City Municipal Code did exist. and WHEREAS such violation was ordered abated on 4/ 13/201 1, and WHEREAS representatives of the National City Fire Department abated the violation(s) on 5119/201 1, and WHEREAS the charge for such abatement amounted to SI,020.00: THEREFORE be it known that an abatement obligation exists on the properly regardless of owner until paid. The current owner of the property is Carolino Construction Corp at 1366 Corona Vis, Bonita, CA 91902 described as follows: APN # 554 180 05 00 ADDRESS: 3109 E 8th St National City 91950 LEGAL DESCRIPTION: Por 1/4 Sec 105 This abatement obligation shall attach to the property, not the owner, and after confirmation by the City Council shall become a special assessment on the property tax bill. If not paid pursuant to State Law and State Tax Lien Law, the properly may be sold to satisfy that obligation. The amount of such claim shall be $1,020.00 plus interest and other costs which may hereafter become due. This filing does not preclude the filing of legal action for collection. Should such actio s be required or determined to be appropriate. reasonable legal fees will be incurred and added to said obligation. DATED: May 23, 2011 State of California ) SS. County of San Diego BY: Ken Osborn, Fire Prevention Services, Inc., Designee for National City Fire Department Certificate Of Acknowledgement On May 23, 2011 before me, Michelle D. Higgins, Notary Public. personally appeared Ken Osborn• 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 pflic eal. / Gina MICHELLE D. HIGGINS ' COMM. #1900612 z Notary Public • California San Diego County My Comm. Expires Aut21.2014t (Seal) >3 SUMMARY REPORT FOR APN 554-262-04-00 02/14/11 Initial inspection was made, property was found to be in violation. 02/16/11 Mailed 30 day courtesy notice to the property owner. 03/22/11 Re -inspection was made, property was found to be in violation. 03/22/11 Posted property. 03/23/11 Mailed 10 day final notice to the owner, certified mail. 04/04/11 Final inspection was made, property was found to be in violation. 04/05/11 Verified ownership information with the County of San Diego. 04/13/11 Work order authorization signed by City Official. 04/18/11 Received notice returned "attempted not known". 04/18/11 Received certified notice returned "unclaimed". 05/17/11 F.P.S.I. crews abated the property. 05/20/11 The owner was mailed a bill at our contracted rates. 05/27/11 A Notice of Abatement was filed on the property. 06/03/11 The owner was mailed a final bill. 06/05/12 The list of Fixed Charge Special Assessments [EXHIBIT "Al and the City Clerk's "NOTICE OF PUBLIC CONFIRMATION OF COSTS HEARING" was served upon the property owner by means of Regular Mail, Certified Mail and Posting upon the property. CITY OF NATIONAL CITY FIRE DEPARTMENT 1243 E. 12th St. : Suite A : NATIONAL CITY, CA. 91950-4596 NOTICE TO ABATE PUBLIC NUISANCE Owner: Maafala Talai Parcel Number: 554 262 04 00 Address: 2638 E 2nd St Date: 2/16/2011 National City, CA 91950 Location of Public Nuisance: 2638 E 2nd St National City 91950 Instructions for Abatement: Please clear the entire property of all weeds, dead vegetation trash debris and arundo. All piles of dead vegetation and debris must be removed from the property. (Please maintain any and all grasses below 3 inches year round? You are hereby directed to abate the public nuisance described above, of which you are the occupant or owner, within thirty (30) days of 2/16/2011. **Your failure to comply with this order will result in the City having your property cleaned by the City's contractor at your expense (per National City Municipal Code Chapter 1.36). A $350.00 administrative fee will be charged in addition to the contractor's fees to clean the property (per Resolution number 94-97). Violations are also subject to prosecution as misdemeanors. Guidelines For The Abatement of Flammable Vegetation For the protection of life and property, remove all brush, flammable vegetation, or combustible growth which is located from thirty (30) feet to one hundred (100) feet from such a building or structure or to the property line, whichever is nearer, or as required by the Fire Department, including the maintenance of grass and other vegetation more than thirty (30) from such building or structure. Cuttings are to be removed from the property and disposed of properly. Vegetation is to be cut within two (2) inches of the ground. "NOTICE REGARDING RARE, THREATENED OR ENDANGERED SPECIES" If you have previously received a notice from the California Department of Fish and Game or the U.S. Fish and Wildlife Services that rare, threatened or endangered species of fish or wildlife have occurred on your property in the areas identified for fuel break clearance, YOU MUST NOTIFY BOTH AGENCIES AND THE NATIONAL CITY FIRE DEPARTMENT IN WRITING AT LEAST TEN (10) DAYS PRIOR TO BEGINNING VEGETATION CLEARING. IF THESE AGENCIES FAIL TO OBJECT OR NOTIFY YOU OF ANY ALTERNATIVE PROCEDURES WITHIN THOSE TEN (10) DAYS, YOU MAY THEN PROCEED TO CLEAR VEGETATION AS DIRECTED BY THIS NOTICE. Failure to provide notification to these agencies may render you liable under Federal or State Law to penalties. National City Municipal Code 9.12.010 Public Nuisance Declared --In General Any of the following conditions are hereby declared to constitute a public nuisance: When the Fire Chief or his/her designee determines that there exists in any building or on any premises combustible, hazardous or explosive materials or dangerous jlations of rubbish; or unnecessary accumulations of wastepaper, boxes. shavings, or any highly flammable materials which are so situated as to endanger life or r. Y .•y; or finds obstructions to or on fire escapes, stairs, passageways, doors or windows that reasonably tend to interfere with the operations of the fire department or the egress of the occupants of such building of premises; or finds that the effectiveness of any exit door, attic separation or any fire separation wall is reduced; or finds that any provision of the Uniform Fire Code is being violated. B. When the Fire Chief or his/her designee deems any chimney, smokestack, stove, oven, incinerator, furnace or other heating device, electric fixture or any appurtenance thereto, or anything regulated under a nationally recognized standard in or upon any building, structure or premises not specifically mentioned in the Uniform Fire Code, to be defective or unsafe so as to create a hazard. C. When the Fire Chief or his/her designee finds any condition which in his/her judgment increases or may cause an increase of the hazard or menace of fire to a greater degree that customarily recognized as normal by persons in the public service regularly engaged in preventing, suppressing or extinguishing fire or any thing or act which may obstruct, delay, hinder or interfere with the operations of the fire department or the egress of occupants in the event of fire. National City Municipal Code 9.12.020 Public Nuisance Declared --Weeds and Other Flammable Materials All weeds, growing or located upon streets, sidewalks or private property are hereby declared to be a public nuisance. For the purposes of this chapter, "weeds' shall include the following: A. Weeds which bear seeds of a downy or wingy nature. B. Sagebrush, chaparral, and any other brush or weeds which attain such large growth as to become, when dry, a fire menace to adjacent improved property. C. Weeds which are otherwise noxious or dangerous D. Poison oak and poison ivy when the conditions of growth are such as to constitute a menace the the public health E. Dry grass, stubble, brush, litter, ar other flammable material which endangers the public safety by creating a fire hazard in a portion of the City which has been zoned for single and multiple residence purposes. National City Municipal Code 1.36.010 Public Nuisance Defined "Public Nuisance" means any condition defined or declared to be a public nuisance in any section of this code, and/or and condition caused, maintained or permitted to exist which constitutes a threat to the public's health, safety and welfare or which significantly obstructs, injures or interferes with the reasonable of free use of property in a neighborhood, community or to any considerable number of persons. A public nuisance also has the same meaning as set forth in California Civil Code Section 3479. National City Municipal Code 1.36.060 Abatement— Appeal— Hearing Within ten (10) days from the date of posting, mailing or personal service of the required notice, the owner or person occupying or controlling such lot or premises affected may appeal to the City Council. Such appeal shall be in writing and shall be filed with the City Clerk. Ryon should have any questions, please feel free to call this number: 1-866-779-3774 Si usted tienealguna pregunta, por favor (lame al numero: 1-866-779-3774 mang katanungan, tumawag lang po sa numerong ito: 1-866-779-3774 yours in public safety, 1-866-779-3774 ext. 311 or http://frreprevention.nct Fire Prevention Services*** ••You have the right to appeal this matter to the City Council within ten (10) days of the receipt of this notice. The appeal shalt be in writing and filed with the City Clerk. (NCMC 1.36.050) ***Fire Prevention Services, Inc. is under contract with the City of National City. NATIONAL CITY FIRE DEPARTMENT COMMON QUESTIONS AND ANSWERS ARE YOU THE CURRENT OWNER OF THIS PROPERTY? Yes HAVE YOU CLEARED THIS PROPERTY SINCE THIS NOTICE? No DO YOU UNDERSTAND THE INSTRUCTIONS FOR ABATEMENT? Yes • HAVE YOU MADE ARRANGEMENTS TO ABATE THE PROPERTY? No — Yes CALL FIRE PREVENTION 1-866-779-3774 http://fireprevention.net CALL FIRE PREVENTION FOR RE -INSPECTION. 1-866-779-3774 http://fireprevention.net • PROPERTY OWNERS ARE RESPONSIBLE FOR MAINTAINING HAZARD ABATEMENT ON A YEAR ROUND BASIS. HAVE YOU THOROUGHLY o READ THE ABATEMENT INSTRUCTIONS WOULD YOU LIKE THE CITY TO ABATE THE HAZARD FOR YOU? No IF NOT ABATED WITHIN TIME SPECIFIED THE OWNER WILL BE CHARGED A $350.00 ADMINISTRATIVE FEE. PLUS FIRE PREVENTION WILL ABATE. THE OWNER WILL BE BILLED FOR ALL COSTS Yes Yes Yes IF YOU DO NOT UNDERSTAND INSTRUCTIONS CALL FIRE PREVENTION. 1-866-779-3774 http://fireprevention.net CALL FIRE PREVENTION WHEN COMPLETED FOR RE -INSPECTION. 1-866-779-3774 http://1Ireprevention.net CALL FIRE PREVENTION FOR ARRANGEMENTS. 1-866-779-3774 http://fireprevention.net IF ARRANGEMENTS ARE MADE PRIOR TO CITY ABATING HAZARD, THE ADMINISTRATIVE FEE MAY BE WAIVED. 333 E. 16th Street : National City, CA : 91950-4596 3 CITY OF NATIONAL CITY SCHEDULE OF -FEES I . Tractor Mowing A. per parcel, sized 1 to 7,500 square feet B. per parcel, sized 7,501 to 15,000 square feet C. per parcel, sized 15,001 square feet to 30,000 square feet D. per parcel, sized 30,001 square feet to one acre E. Per square foot over one acre 2. Hand Labor A. per square foot of area abated 3. Dozer Operation A. hourly rate B. move -on fee $250.00 $325.00 $400.00 $450.00 $ 00.02 $ 00.10 $150.00 $150.00 4. Debris Remediation (includes chipping, grinding, and/or shredding) A. per cubic yard of material prior to chipping, and or compacting $ 38.00 B. dump fees (reimbursement of cost) 5. Administrative Fee (failure to comply with final notice) A. per parcel 6. Attorney Services A. per parcel, per hour 7. Assessment Fees (includes preparing reports, attending hearings, etc.) A. Cost confirmations fee, per parcel 8. Miscellaneous Fees A. special inspection fee B. abatement lien C. Interest on lien (apr) D release of abatement lien E. public notary F. File duplication fee G. Unscheduled Labor per man hour H. unscheduled fees $350.00 $200.00 $275.00 $ 50.00 $ 50.00 10% $ 50.00 $ 20.00 $ 50.00 $ 50.00 (reimbursement of cost) 37 CITY OF NATIONAL CITY FIRE DEPARTMENT 1243 E. 12th St. : Suite A : NATIONAL CITY, CA. 91950-4596 FINAL NOTICE TO ABATE PUBLIC NUISANCE Owner: Maafala Talai Parcel Number: 554 262 04 00 Address: 2638 E 2nd St Date: 3/23/2011 National City, CA 91950 Location of Public Nuisance: 2638 E 2nd St National City 91950 Instructions for Abatement: Please clear the entire property of all weeds, dead vegetation, trash, debris and arundo. All piles of dead vegetation and debris must be removed from the property. (Please maintain any and all grasses below 3 inches year round) You are hereby directed to abate the public nuisance described above, of which you are the occupant or owner, within ten (10) days of 3/23/2011. "Your failure to comply with this order will result in you being charged the administrative fee and the City having your property cleaned by the City's contractor at your expense (per National City Municipal Code Chapter 1.36). A $350.00 administrative fee will be charged in addition to the contractor's fees to clean the property (per Resolution number 94-97). Violations are also subject to prosecution as misdemeanors. Guidelines For The Abatement of Flammable Vegetation For the protection of life and property, remove all brush, flammable vegetation, or combustible growth which is located from thirty (30) feet to one hundred (100) feet from such a building or structure or to the property line, whichever is nearer, or as required by the Fire Department, including the maintenance of grass and other vegetation more than thirty (30) from such building or structure. Cuttings are to be removed from the property and disposed of properly. Vegetation is to be cut within two (2) inches of the ground. "NOTICE REGARDING RARE, 'THREATENED OR ENDANGERED SPECIES" If you have previously received a notice from the California Department of Fish and Game or the U.S. Fish and Wildlife Services that rare, threatened or endangered species of fish or wildlife have occurred on your property in the areas identified for fuel break clearance, YOU MUST NOTIFY BOTH AGENCIES AND THE NATIONAL CITY FIRE DEPARTMENT IN WRITING AT LEAST TEN (10) DAYS PRIOR TO BEGINNING VEGETATION CLEARING. IF THESE AGENCIES FAIL TO OBJECT OR NOTIFY YOU OF ANY ALTERNATIVE PROCEDURES WITHIN THOSE TEN (I0) DAYS, YOU MAY TI LEN PROCEED TO CLEAR VEGETATION AS DIRECTED BY THIS NOTICE. Failure to provide notification to these agencies may render you liable under Federal or State Law to penalties. National City Municipal Code 9.12.010 Public Nuisance Declared —In General Any of the following conditions are hereby declared to constitute a public nuisance: A. When the Fire Chief or his/her designee determines that there exists in any building or on any premises combustible, hazardous or explosive materials or 'angerous accumulations of rubbish; or unnecessary accumulations of wastepaper, boxes, shavings, or any highly flammable materials which are so situated as to endanger 'e or property; or finds obstructions to or on fire escapes, stairs, passageways, doors or windows that reasonably tend to interfere with the operations of the fire department or the egress of the occupants of such building of premises; or finds that the effectiveness of any exit door, attic separation or any fire separation wall is reduced; or finds that any provision of the Uniform Fire Code is being violated. B. When the Fire Chief or his/her designee deems any chimney, smokestack, stove, oven, incinerator, furnace or other heating device, electric fixture or any appurtenance thereto, or anything regulated under a nationally recognized standard in or upon any building, structure or premises not specifically mentioned in the Uniform Fire Code, to he defective or unsafe so as to create a hazard. C. When the Fire Chief or his/her designee finds any condition which in his/herjudgment increases or may cause an increase of the hazard or menace of fire to a greater degree that customarily recognized as normal by persons in the public service regularly engaged in preventing, suppressing or extinguishing fire or any thing or act which may obstruct, delay, hinder or interfere with the operations of the fire department or the egress of occupants in the event of fire. National City Municipal Code 9.12.020 Public Nuisance Declared --Weeds and Other Flammable Materials All weeds, growing or located upon streets, sidewalks or private property are hereby declared to be a public nuisance. For the purposes of this chapter, "weeds" shall include the following: A. Weeds which bear seeds of a downy or wingy nature. B. Sagebrush, chaparral, and any other brush or weeds which attain such large growth as to become, when dry, a fire menace to adjacent improved property. C. Weeds which are otherwise noxious or dangerous. D. Poison oak and poison ivy when the conditions of growth are such as to constitute a menace the the public health. E. Dry grass, stubble, brush, litter, or other flammable material which endangers the public safety by creating a fire hazard in a portion of the City which has been zoned for single and multiple residence purposes. National City Municipal Code 1.36.010 Public Nuisance Defined "Public Nuisance" means any condition defined or declared to be a public nuisance in any section of this code, and/or and condition caused, maintained or permitted to exist which constitutes a threat to the public's health, safety and welfare or which significantly obstructs, injures or interferes with the reasonable of free use of property in a neighborhood, community or to any considerable number of persons. A public nuisance also has the same meaning as set forth in California Civil Code Section 3479. National City Municipal Code 1.36.060 Abatement— Appeal— Hearing Within ten (10) days from the date of posting, mailing or personal service of the required notice, the owner or person occupying or controlling such lot or premises affected may appeal to the City Council. Such appeal shall be in writing and shall be filed with the City Clerk. If you should have any questions, please feel free to call this number: 1-866-779-3774 Si usted tienealguna pregunta, por favor Ilame al numero: 1-866-779-3774 Sa anumang katanungan, tumawag Iang po sa numerong ito: 1-866-779-3774 icerely yours in public safety, "You have the right to appeal this matter to the City Council within ten (10) days of the receipt of this notice. 1-866-779-3774 ext. 311 or bttp://fireprevention.net The appeal shall be in writing and filed with the City Clerk. (NCMC 1.36.050) ***Fire Prevention Services, Inc. is under contract with the City of National City. F/j Fire Prevention Services'" J rev. 03/27/06, 04/24/06, 0621/06 NATIONAL CITY FIRE DEPT. 1243 National City Boulevard NATIONAL CITY, CA 919504596 .. :r IL AL.au IMPORTANT EIAZARD ABKI'F iMFNT NOTICE: ; r IA.1101L.iI r Dwner: Maatala alai Parcel Number: 554 Address: 2638 E 2nd St Date: 2/16/2011 National City, CA 91950 1 NIXib_ ;BC:. 921 BO 1 00 04/ 1 O/ 1.1 $'&TURN TO SF..NOCR ATTEMPTCO NOT KNOWN UNAE3LE TO FORWARD 459599 *2104-1472--1B-37 11zi„�a,111�1y�,1,{.Il,F�)i,�3�131,1,1,�,11r,h1a�1�1„�1,�11 NATIONAL CITY FIRE DEPT. 1243 National City Boulevard NATIONAL CITY, CA 91950-4596 m 444V',21.7Y g114, ; rtto oho -4 4, ru Pohhohto •i $ US Postal SeMcer. CERTFtEQ MAIL RECEIPT 12.30 lin 12.30 cp ,,o, ,I,,,rlif .11 ROCiii4SGdi hhthtttv phhhhth rho ii)„1:10 '11 tti,t4tt; 554 262.04 00 Maafala Talai 2638 E 2nd St National City CA t o C.tt. th, CERTIFIED MAIL.„ '1,,,howro 91950 • [CI ONITZOSTAIVS POSTAL SVIVICE 7T.1[1...4470,...b660\0t0 0434 ')11\ vner: Maafala Talai Parcel Number; 554 262 11' ' dress: 2638 E 2nd St Date: 3/23/2011 National City, CA 91950 NIXIE _.ocation of Public NuiL. sance, 26382nd St National City 91950. 74'1 EYDS20 i 4 CO26, 9195004.596 os& # iso tx,skt sat8' ,46 91950 9.21 DC 1 RETURN TO SENDari UNCLAX MED UNABLE TO rORUARD 11 U.S. POSTAGE. PAID EL CAjON.ai 9202P Mk 23. I/ 9MOUNI $5541 000I,S7S 6H) 00 4/141;11 MC; 91950459699 *0404- 06400-20-41 L1nn3111311Aldliw1r Whir IdwitAinhinr Fire Prevention Services PO. Box 1720 El Cajon, CA 92022-1720 /.10/.,!0 l 1 NEutlitla falai 2638 I. rid St National city, cik 91950 Fire Prevention Services P.O. Box 1720 El Cajon, CA 92022-1720 COI GM" 1. Maafala Talai 2638 E 2nd St National City, CA 91950 ""1-17,7,,J1- • , 4,0 UK C; :2'0' MAY NIXIE 1 1 00 0$119/1.1 RETURN TO SENDER ATTEMPTED - NOT KNOWN UNAMI_E TO FORWARD GC: 92022172020 *1404-04109-20-07 720 921 Ait4 .2911 PM I T NIXIE 921 5C 1 00 08/00/11 PCTURN TO WZNOCR VACANT ONADLE TO FORWARD OC;' 22022172020 *1004-15952-03-a? p CITY OF NATIONAL CITY FIRE DEPARTMENT 333 E. 16th St.: NATIONAL CITY, CA. 91950-4596 WORK ORDER AUTHORIZATION Authorization # 2919 Owner: Maafala Talai Address: 2638 E 2nd St National City, CA 91950 Parcel #554 262 04 00 Job location:2638 E 2nd St National City 91950 Authorized i Signature: —Date: — WHEN SIGNED THIS DOCUMS RIGHT OF PASSAGE ONTO PRIVATE PROPERTY FOR THE PURPOSE OF FIRE VIOLATION / PUBLIC NUISANCE REDUCTION OR REMOVAL. METHOD OF CLEARING Entire Parcel Fire Break a Hand Cutting: & sq. ft. Removal: mil- ,�� u. yds. Tractor Mowing: sq. ft. Discing: sq. ft. CREW INFORMATION Crew Date Type: Type: Type: Type: Notes: Please clear the entire property of all weeds, dead vegetation, trash, debris and arundo. All piles of dead vegetation and debris must be removed from the property. (Please maintain any and all grasses below 3 inches year round) �3 554-261--264 SAN 01EG9 COUNTY ASSESSORS MAP BOON 554 PAGE 26 91 SECOND •hct1 O 90 27 0 57 lj i2 j• Yq ",N h. ="Z 0O Di , OO 01,2 ?1,4 Ie Z ,1r � sal. Z1 3 • 123 i i 122 •©i 9 ooO ' 1TB t 2121 7 -20 =THIRD v Ir•21'JI', 5T. © .. 0 0 O o F'05 54 2 ;+5 tA G3 ,; p a . ../7 2 jS 1 ` 3.3,50 5� FOURTH ST. AO > CLAIRMONT Z1/0 2q3 3o0 / i 3i MAP 4268 - NATIONAL AWARD HOMES UNIT NO. I ,554- 26, CHAN'1S BLK OLD CUT Work space Pcr d!sg,rams snd amol-Jntrof work dona Totai Rarrova! Yd ` el< 9 rf • .i- N Fire Prevention Services, Inc. P.O. Box 1720 : El Cajon, CA 92022-1720 (619) 401-1863 : fax (619) 445-6336 http://fireprevention.net 5/20/2011 Maafala Talai 2638 E 2nd St National City, CA 91950 Parcel # 554 262 04 00 Location: 2638 F. 2nd St National City 91950 Dear Maafala Talai. This letter is to inform you that the Public Nuisance on the above referenced property was abated pursuant to a prior Notice to Abate and order of the City of National City. Fire Prevention Services was contracted by the City of National City to help reduce Public Nuisances and potential fire violations thus improving the safety of its citizens. The abatement work on your property was performed as mandated by The National City Municipal Code Chapter 1.36. The charges thus far total $1,547.23. You will incur no further costs if this amount is paid within fifteen (15) days of the date of this notice. Failure to pay this hill may result in the filing of an abatement lien upon your property. Please make your check payable to Fire Prevention Services and include the Parcel # 554 262 04 00 on the check. If you have any questions please call us direct at 619-401-1863. Sincerely, Fire Prevention Services, Inc. rev.05/19/06 7 g n. B. D. E. NATIONAL CITY SCHEDULE OF FEES f,c )'1.: tctor Mowing per parcel, sized 1 to 7,500 square feet per parcel, sized 7,501 to 15,000 square feet per parcel, sized 15,001 square feet to 30,000 square feet per parcel, sized 30,001 square feet to one acre per square foot over one acre Hand Labor A. per square foot of area abated Dozcr Operation A. hourly rate B. move -on fee $250.00 $325.00 $400.00 $450.00 $00.02 $0.10 $150.00 $150.00 quantity sub total sq. ft. 2050 sq. ft. 205.00 Debris Remediation (includes chipping, grinding, and/or shredding) A. per cubic yard of material prior to chipping, and or compacting $38.00 x 23.70 cu.vds =900.60 B. dump fees (reimbursement of cost) 1 91.63 Administrative Fee (failure to comply by deadline of notice) A. per parcel natomey Services A. per parcel, per hour Assessment Fees (includes preparing reports, attending hearings, etc.) A. cost confirmation fee, per parcel Miscellaneous Fees Per Parcel A. B. C. D. E. F. G. H. special inspection fee abatement lien Interest on lien (apr) release of abatement lien public notary file duplication fee unscheduled Labor per man hour unscheduled fees FILE # 2919 APN # 554-262-04-00 $350.00 1 $200.00 $275.00 $50.00 $50.00 10% $50.00 $20.00 $50.00 $50.00 (reimbursement of cost) TOTAL $ 1547.23 350.00 S9 Fire Prevention Services, Inc. P.O. Box 1720 : El Cajon, CA 92022-1720 (619) 401-1863 : fax (619) 445-6336 http://fireprevention.net Final Bill 6/3/2011 Maafala Talai 2638E2ndSt National City, CA 91950 Ref: Parcel # 554 262 04 00 Dear Maafala Talai, This is a reminder of the letter we sent you on 5/20/2011 and we have nofreceived payment in the amount of $1,547.23 If we do not receive payment within 10 days we will be required to seek appropriate action to collect these monies. This action may include filing an abatement lien on your property and forwarding this bill to our collection agency. Under state and local law, costs for such action will be added to your total amount. Please tender a check to us immediately to avoid any further action. Make your check payable to Fire Prevention Services, Inc., and include the Parcel # 554 262 04 00 on the check. Should you need to discuss this matter you may contact us at (619) 401-1863. Sincerely, Fire Prevention Services, Inc. rev_05/ 19/06 • RECORDING REQUESTED BY Fire Prevention Services. Inc. PO Box 2012 Ipine, CA 91903-2012 ,.,19) 562-1058 fax (619) 445-6336 AND WHEN RECORDED MAIL TO Fire Prevention Services, Inc. PO Box 2012 Alpine, CA 91903-2012 C 0 C it 2011-0275933 111 IIII IIII MAY 27, 2011 3:57 PM OFFICIAL RECORDS SAN DIEGO COUNTY RECORDER'S OFFICE Ernest J_ Dronenburg, Jr., COUNTY RECORDER FEES: 0.00 PAGES: 1 IIIIII INII IIIII IIIII IIIII IIII IIIII IIIII IIIII IIIII IIIII III IIIII llff1IIIII IIN IIII NOTICE OF ABATEMENT TO THE CURRENT OWNER OF RECORD AND ANY FUTURE OWNERS/PURCHASERS OF THE HEREIN DESCRIBED PROPERTY WHEREAS it was determined that a violation of Chapter 1.36 of the National City Municipal Code did exist. and WHEREAS such violation was ordered abated on 4/ 13/201 1, and WHEREAS representatives of the National City Fire Department abated the violation(s) on 5/17/2011, and WHEREAS the charge for such abatement amounted to $1,617.23; THEREFORE be it known that an abatement obligation exists on the property regardless of owner until paid. The current owner of the property is Maafala Talai at 2638 E 2nd St, National City, CA 91950 described as follows: 'N # 554 2620400 )DRESS: 2638 E 2nd St National City 91950 LEGAL DESCRIPTION: Lot 114 This abatement obligation shall attach to the property. not the owner, and after confirmation by the City Council shall become a special assessment on the property tax bill. If not paid pursuant to State Law and State Tax Lien Law, the property may be sold to satisfy that obligation. The amount of such claim shall be $1,617.23 plus interest and other costs which may hereafter become due. This filing does not preclude the filing of legal action for collection. Should such acti, s be required or determined to be appropriate. reasonable legal fees will be incurred and added to said obligation. DATED: May 27, 2011 State of Cal ifornia ) SS. County of San Diego BY: Ken Osborn, Fire Prevention Services, Inc., Designee for National City Fire Department Certificate Of Acknowledgement On May 27, 2011 before me, Michelle D. Higgins, Notary Public, personally appeared Ken Osborn 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. 1 certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. TNESS my.han4..and official seal. CiLI MICNEIIE 0. HIGGINS COMM. *1900612 z Notary Public -California Seal) San Diego County Comm. Expires 21. 2014 SUMMARY REPORT FOR APN 556-415-06-00 06/20/11 Received citizen complaint. 06/20/11 Initial inspection was made, property was found to be in violation. 06/21/11 Mailed 30 day courtesy notice to the property owner. 07/22/11 Re -inspection was made, property was found to be in violation. 7/22/11 Met with tenant and went over what needed to be done. 07/26/11 Mailed 10 day final notice to the owner, certified mail. 08/02/11 Received signed certified return receipt. 08/08/11 Final inspection was made, property was found to be in violation. 08/08/11 Met with tenant and granted extension on forced abatement. 08/23/11 Verified ownership information with the County of San Diego. 09/21/11 Work order authorization signed by City Official for admin fee. 09/26/11 The owner was mailed an admin bill at our contracted rates. 10/21/11 The owner was mailed a final bill. 11/04/11 A Notice of Abatement was filed on the property. 06/05/12 The list of Fixed Charge Special Assessments [EXHIBIT "Al and the City Clerk's "NOTICE OF PUBLIC CONFIRMATION OF COSTS HEARING" was served upon the property owner by means of Regular Mail, Certified Mail and Posting upon the property. CITY OF NATIONAL CITY FIRE DEPARTMENT 1243 E. 12th St. : Suite A : NATIONAL CITY, CA. 91950-4596 NOTICE TO ABATE PUBLIC NUISANCE Owner: Jimenez Jaime;Patricia Address: 489 Miguel Trail P1 Chula Vista, CA 91914 Parcel Number: 556 415 06 00 Date: 6/21/2011 CCFY Location of Public Nuisance: 1023 E 7th St National City 91950 Instructions for Abatement: Please clear the entire property of all weeds, dead vegetation, trash, debris and arundo. All piles of dead vegetation and debris must be removed from the property. (Please maintain any and all grasses below 3 inches year round) You are hereby directed to abate the public nuisance described above, of which you are the occupant or owner, within thirty (30) days of 6/21/2011. **Your failure to comply with this order will result in the City having your property cleaned by the City's contractor at your expense (per National City Municipal Code Chapter 1.36). A S350.00 administrative fee will be charged in addition to the contractor's fees to clean the property (per Resolution number 94-97). Violations are also subject to prosecution as misdemeanors. Guidelines For The Abatement of Flammable Vegetation For the protection of life and property, remove all brush, flammable vegetation, or combustible growth which is located from thirty (30) feet to one hundred (100) feet from such a building or structure or to the property line, whichever is nearer, or as required by the Fire Department, including the maintenance of grass and other vegetation more than thirty (30) from such building or structure. Cuttings are to be rerno.ved from the property a:al disposed of properly. Vegetation is to be cut within two (2) inches of the ground. "NOTICE REGARDING RARE, THREATENED OR ENDANGERED SPECIES" If you have previously received a notice from the California Department of Fish and Game or the U.S. Fish and Wildlife Services that rare, threatened or endangered species of fish or wildlife have occurred on your property in the areas identified for fuel break clearance, YOU MUST NOTIFY BOTH AGENCIES AND THE NATIONAL CITY FIRE DEPARTMENT IN WRITING AT LEAST TEN (10) DAYS PRIOR TO BEGINNING VEGETATION CLEARING. IF THESE AGENCIES FAIL TO OBJECT OR NOTIFY YOU OF ANY ALTERNATIVE PROCEDURES WITHIN THOSE TEN (10) DAYS, YOU MAY THEN PROCEED TO CLEAR VEGETATION AS DIRECTED BY THIS NOTICE. Failure to provide notification to these agencies may render you liable under Federal or State Law to penalties. National City Municipal Code 9.12.010 Public Nuisance Declared --In General Any of the following conditions are hereby declared to constitute a public nuisance: When the Fire Chief or his/her designee determines that there exists in any building or on any premises combustible, hazardous or explosive materials or dangerous ....cumulations of rubbish; or unnecessary accumulations of wastepaper, boxes, shavings, or any highly flammable materials which are so situated as to endanger life or property; or finds obstructions to or on fire escapes, stairs, passageways, doors or windows that reasonably tend to interfere with the operations of the fire department or the egress of the occupants of such building of premises; or finds that the effectiveness of any exit door, attic separation or any fire separation wall is reduced; or finds that any provision of the Uniform Fire Code is being violated_ B. When the Fire Chief or his/her designee deems any chimney, smokestack, stove, oven, incinerator, furnace or other heating device, electric fixture or any appurtenance thereto, or anything regulated under a nationally recognized standard in or upon any building, structure or premises not specifically mentioned in the Uniform Fire Code, to be defective or unsafe so as to create a hazard. C. When the Fire Chief or his/her designee finds any condition which in his/her judgment increases or may cause an increase of the hazard or menace of fire to a greater degree that customarily recognized as normal by persons in the public service regularly engaged in preventing, suppressing or extinguishing fire or any thing or act which may obstruct, delay, hinder or interfere with the operations of the fire department or the egress of occupants in the event of fire. National City Municipal Code 9.12.020 Public Nuisance Declared --Weeds and Other Flammable Materials All weeds, growing or located upon streets, sidewalks or private property are hereby declared to be a public nuisance. For the purposes of this chapter, "weeds" shall include the following: A. Weeds which bear seeds of a downy or wingy nature. B. Sagebrush, chaparral, and any other brush or weeds which attain such large growth as to become, when dry, a fire menace to adjacent improved property. C. Weeds which are otherwise noxious or dangerous. D. Poison oak and poison ivy when the conditions of growth are such as to constitute a menace the the public health. E. Dry grass, stubble, brush, litter, or other flammable material which endangers the public safety by creating a fire hazard in a portion of the City which has been zoned for single and multiple residence purposes. National City Municipal Code 1.36.010 Public Nuisance Defined "Public Nuisance" means any condition defined or declared to be a public nuisance in any section of this code, and/or and condition caused, maintained or permitted to exist which constitutes a threat to the public's health, safety and welfare or which significantly obstructs, injures or interferes with the reasonable of free use of property in a neighborhood, community or to any considerable number of persons. A public nuisance also has the same meaning as set forth in California Civil Code Section 3479. National City Municipal Code 1.36.060 Abatement-- Appeal— Hearing Within ten (10) days from the date of posting, mailing or personal service of the required notice, the owner or person occupying or controlling such lot or premises affected may appeal to the City Council. Such appeal shall be in writing and shall be filed with the City Clerk. If you should have any questions, please feel free to call this number: 1-866-779-3774 usted tienealguna pregunta, por favor Ilame al numero: 1-866-779-3774 numang katanungan, tumawag tang po sa numerong ito: 1-866-779-3774 Sincerely yours in public safety, 1-866-779-3774 ext. 311 or http://fireprevention.net Fire Prevention Services*** **You have the right to appeal this matter to the City Council within ten (10) days of the receipt of this notice. The appeal shall be in writing and filed with the City Clerk. (NCMC 1.36.050) *"Fire Prevention Services, Inc. is under contract with the City of National City. NATIONAL CITY FIRE DEPARTMENT COMMON QUESTIONS AND ANSWERS ARE YOU THE CURRENT OWNER OF THIS PROPERTY? Yes HAVE YOU CLEARED THIS PROPERTY SINCE THIS NOTICE? DO YOU UNDERSTAND THE INSTRUCTIONS FOR ABATEMENT? Yes HAVE YOU MADE ARRANGEMENTS TO ABATE THE PROPERTY? No No Yes CALL FIRE PREVENTION 1-866-779-3774 http://fireprevention.net CALL FIRE PREVENTION FOR RE -INSPECTION. 1-866-779-3774 http://fireprevention.net I PROPERTY OWNERS ARE RESPONSIBLE FOR MAINTAINING HAZARD ABATEMENT ON A YEAR ROUND BASIS. HAVE YOU THOROUGHLY 1 READ THE ABATEMENT Yes INSTRUCTIONS No WOULD YOU LIKE THE CITY TO ABATE THE HAZARD FOR YOU? No 1 Yes Yes IF YOU DO NOT UNDERSTAND INSTRUCTIONS CALL FIRE PREVENTION. 1-866-779-3774 http://fireprevention.net CALL FIRE PREVENTION WHEN COMPLETED FOR RE -INSPECTION. 1-866-779-3774 http://fireprevention.net CALL FIRE PREVENTION FOR ARRANGEMENTS. 1-866-779-3774 http://fireprevention.net IF ARRANGEMENTS ARE MADE PRIOR TO IF NOT ABATED WITHIN CITY ABATING HAZARD, THE TIME SPECIFIED THE ADMINISTRATIVE OWNER WILL BE FEE MAY BE WAIVED. CHARGED A $350.00 ADMINISTRATIVE FEE. PLUS FIRE PREVENTION WILL ABATE. THE OWNER WILL BE BILLED FOR ALL COSTS 333 E. 16th Street : National City, CA : 91950-4596 CITY OF NATIONAL CITY SCHEDULE OF FEES 1. Tractor Mowing A. per parcel, sized 1 to 7,500 square feet B. per parcel, sized 7,501 to 15,000 square feet C. per parcel, sized 15,001 square feet to 30,000 square feet D. per parcel, sized 30,001 square feet to one acre E. Per square foot over one acre 2. 3. Hand Labor A. per square foot of area abated Dozer Operation A. hourly rate B. move -on fee $250.00 $325.00 $400.00 $450.00 $ 00.02 $ 00.10 $150.00 $150.00 4. Debris Remediation (includes chipping, grinding, and/or shredding) A. per cubic yard of material prior to chipping, and or compacting $ 38.00 B. dump fees (reimbursement of cost) 5. Administrative Fee (failure to comply with final notice) A. per parcel 6. Attorney Services A. per parcel, per hour 7. Assessment Fees (includes preparing reports, attending hearings, etc.) A. Cost confirmations fee, per parcel 8. Miscellaneous Fees A. special inspection fee B. abatement lien C. Interest on lien (apr) I) release of abatement lien E. public notary F. File duplication fee G. Unscheduled Labor per man hour H. unscheduled fees $350.00 $200.00 $275.00 $ 50.00 $ 50.00 10% $ 50.00 $ 20.00 $ 50.00 $ 50.00 (reimbursement of cost) CITY OF NATIONAL CITY FIRE DEPARTMENT 1243 E. 12th St. : Suite A : NATIONAL CITY, CA. 91950-4596 FINAL NOTICE TO ABATE PUBLIC NUISANCE Owner: Jimenez Jaime;Patricia Address: 489 Miguel Trail PI Chula Vista, CA 91914 Parcel Number: 556 415 06 00 Date: 7/26/2011 Location of Public Nuisance: 1023 E 7th St National City 91950 Instructions for Abatement: Please clear the entire property of all weeds, dead vegetation, trash, debris and arundo. All piles of dead vegetation and debris must be removed from the property. (Please maintain any and all grasses below 3 inches year round) You are hereby directed to abate the public nuisance described above, of which you are the occupant or owner, within ten (10) days of 7/26/2011. **Your failure to comply with this order will result in you being charged the administrative fee and the City having your property cleaned by the City's contractor at your expense (per National City Municipal Code Chapter 1.36). A $350.00 administrative fee will be charged in addition to the contractor's fees to clean the property (per Resolution number 94-97). Violations are also subject to prosecution as misdemeanors. Guidelines For The Abatement of Flammable Vegetation For the protection of life and property, remove all brush, flammable vegetation, or combustible growth which is located from thirty (30) feet to one hundred (100) feet from such a building or structure or to the property line, whichever is nearer, or as required by the Fire Department, including the maintenance of grass and other vegetation more than thirty (30) from such building or structure. Cuttings are to be removed from the property and disposed of properly. Vegetation is to be cut within two (2) inches of the ground. "NOTICE REGARDING RARE, THREATENED OR ENDANGERED SPECIES" If you have previously received a notice from the California Department of Fish and Game or the U.S. Fish and Wildlife Services that rare, threatened or endangered species of fish or wildlife have occurred on your property in the areas identified for fuel break clearance, YOU MUST NOTIFY BOTH AGENCIES AND THE NATIONAL CITY FIRE DEPARTMENT IN WRITING AT LEAST TEN (10) DAYS PRIOR TO BEGINNING VEGETATION CLEARING. IF THESE AGENCIES FAIL "10 OBJECT OR NOTIFY YOU OF ANY ALTERNATIVE PROCEDURES WITHIN THOSE TEN (10) DAYS, YOU MAY THEN PROCEED TO CLEAR VEGETATION AS DIRECTED BY THIS NOTICE. Failure to provide notification to these agencies may render you liable under Federal or State Law to penalties. National City Municipal Code 9.12.010 Public Nuisance Declared --In General Any of the following conditions are hereby declared to constitute a public nuisance: A. When the Fire Chief or his/her designee determines that there exists in any building or on any premises combustible, hazardous or explosive materials or :rows accumulations of rubbish; or unnecessary accumulations of wastepaper, boxes, shavings, or any highly flammable materials which are so situated as to endanger property; or finds obstructions to or on fire escapes, stairs, passageways, doors or windows that reasonably tend to interfere with the operations of the fire department _.: egress of the occupants of such building of premises; or finds that the effectiveness of any exit door, attic separation or any fire separation wall is reduced; or finds that any provision of the Uniform Fire Code is being violated. B. When (he Fire Chief or his/her designee deems any chimney, smokestack, stove, oven, incinerator, furnace or other heating device, electric fixture or any appurtenance thereto, or anything regulated under a nationally recognized standard in or upon any building, structure or premises not specifically mentioned in the Uniform Fire Code, to be defective or unsafe so as to create a hazard. C. When the Fire Chief or his/her designee finds any condition which in his/her judgment increases or may cause an increase of the hazard or menace of fire to a greater degree that customarily recognized as normal by persons in the public service regularly engaged in preventing, suppressing or extinguishing fire or any thing or act which may obstruct, delay, hinder or interfere with the operations of the fire department or the egress of occupants in the event of fire. National City Municipal Code 9.12.020 Public Nuisance Declared —Weeds and Other Flammable Materials All weeds, growing or located upon streets, sidewalks or private property are hereby declared to be a public nuisance. For the purposes of this chapter, "weeds" shall include the following: A. Weeds which bear seeds of a downy or wingy nature. B. Sagebrush, chaparral, and any other brush or weeds which attain such large growth as to become, when dry, a fire menace to adjacent improved property. C. Weeds which are otherwise noxious or dangerous. D. Poison oak and poison ivy when the conditions of growth are such as to constitute a menace the the public health. E. Dry grass, stubble, brush, litter, or other flammable material which endangers the public safety by creating a fire hazard in a portion of the City which has been zoned for single and multiple residence purposes. National City Municipal Code 136.010 Public Nuisance Defined "Public Nuisance" means any condition defined or declared to be a public nuisance in any section of this code, and/or and condition caused, maintained or permitted to exist which constitutes a threat to the public's health, safety and welfare or which significantly obstructs, injures or interferes with the reasonable of free use of property in a neighborhood, community or to any considerable number of persons. A public nuisance also has the same meaning as set forth in Califomia Civil Code Section 3479. National City Municipal Code 136.060 Abatement-- Appeal— Hearing Within ten (10) days from the date of posting, mailing or personal service of the required notice, the owner or person occupying or controlling such lot or premises affected may appeal to the City Council. Such appeal shall be in writing and shall be filed with the City Clerk. If you should have any questions, please feel free to call this number: 1-866-779-3774 Si usted tienealguna pregunta, por favor Ilame al numero: 1-866-779-3774 Sa anumang katanungan, tumawag lang po sa numerong ito: 1-866-779-3774 ely yours in public safety, notice. 1-866-779-3774 ext. 311 or http://fireprevention.net Fire Prevention Services*** rev. 0327/06, 0424/06, 06✓21/06 **You have the right to appeal this matter to the City Council within ten (10) days of the receipt of this The appeal shall be in writing and filed with the City Clerk. (NCMC 1.36.050) ***Fire Prevention Services, Inc. is under contract with the City of National City. U.S. Postal Service CERTIFIED MAIL, RECEIPT (Domestic Maid Only; Na insurance:Covera Pro 'tied) fro c ativ :YOtum Fzh.c�ip9 F'�xa NF jGltp�} 556 415 06 00 Jimenez Jaime;Patricia 489 Miguel Trail PI Chula Vista CA 91914 SENDER: COMPLETE THIS SECTION is Complettt;items 1, 2, and 3. Also complete item 4 If Restricted Delivery is desired. ■ Print your name and address on the reverse so that we can return the card to you. Attach this card to the back of the mailpiece, or on the front If space permits. 1.-Article t©: 55 06 0D Ji z Jaime;PatriCia 48 I uel Trail PI Ch I Vista CA 91914 Nwnbr rrfrom serWce Jabal) 38 1, February2004 COMPLETE THIS SECTION ON DELIVERY delivery addressifferenttton item 1? YES, enter delivery address be Ow: o rifled Mail -0 Express MaIL Ci i=te�isterad i Rotum Receipt C] Ensued Mali in 0.0.0. 4, Rest,idted Deliveiy7 Fee; for Men 0Y 71310 27811 0001 2840 3-- Domestic Realm Roca pt CITY OF NATIONAL CITY FIRE DEPARTMENT 333 E. 16th St.: NATIONAL CITY, CA. 91950-4596 WORK ORDER AUTHORIZATION Authorization # 3212 Owner: Jimenez Jaime;Patricia Address: 489 Miguel Trail PI Chula Vista, CA 91 914 Parcel #556 415 06 00 Job location:1023 E 7th St National City 91950 Authorized Signature: Date: WHEN SIGNED THIS DOCUMENT ALOF PASSAGE ONTO PRIVATE PROPERTY FOR THE PURPOSE OF FIRE VIOLATION / PUBLIC NUISANCE REDUCTION OR REMOVAL. METHOD OF CLEARING Entire Parcel Fire Break Hand Cutting: sq. ft. Removal: cu. yds. Tractor Mowing: sq. ft. Discing: sq. ft. CREW INFORMATION Crew Date Type: Type: Type: Type: Notes: Please clear the entire property of all weeds, dead vegetation, trash, debris and arundo. All piles of dead vegetation and debris must be removed from the property. (Please maintain any and all grasses below 3 inches year round) r 1r,,,r 11 111111111 II , I 11 111111 11111.1111 06 TT 35 BO •a o HIGHLAND 1-800-345-7334 1 4 5 0 •0 N 71.31 N 7xSQt I xSo 10' 3 BLK 5 5 rr� L��l7 9 5 10 m SIXTH SEVENTH 5 31 I L II 1 I I 1 2S J M 19 125 o aO NNC5N IS 17.16 1514 13112 3 4 5 7 1 2 'BLK 080 II1I 25I Ili »l a 11'4 8910 Ila I25 a S. 01ECO AVSTY AsSesso16 YAP BOW 556.I4GE..41 EIGHTH 80 H Bo f 7 II I I T � 62.19 � 97,S, N IB bl S. .4 $ BLK 'u 2,, )5 N 40 O JN 9O N 90 fie w3 ry` W s 5o 0 / i So 0 o .�I ^ _ +ee Y M G �S ev So 10) So 9 �O se BLK 2 3 w I 0 PP 25 25 ,25 z/ 7 THS MAP WAS PREPARED FOR ASSES8AB1T RAMS CTRL 17D l6BUTT 6 ASSL6E0 FOR TIE ACCURACY CF 1IE DATA BOWM. ASSESSORS PARCELS MAT FO7 MOLT WITH LOCAL 9JWNISON 0R BoLDTt 011;05MH:ES a 60 W BO N 62.So N 1. O 250 p� 22 12 1 19 CD ��'�� 4O1�16 0 Q 7 14,,"mow 'Y} J / IC 5 g 10 11,,T 417.7 ,•N 41.0 4 oi.o 4 66 zi$ 1� 4 l � � 7 ',7jSn se II 9aJ.ar7a 56 0 7o 0 71 3, 60 SCALE 1N 1/10 OF AN INCH ST .vb,•,eE 0 m 44 la ST 75 71 57 r 40 'IS I m 27; So a of 50 140 90 o� I 5 0 90 0 50 $36 125 roc BLK 0 5 013 95 r 0 0 a 45 0 65 60 140 I D u r, 0 60 60 01 40 N_ _to ow Oin too ,2/4/98 RAG CHANGES ELK OLD NEW�YR CUT 415 121.41 1-10 414 4ET-Y4A I-.t 417 423-vN. 1- 9 418 414,04. I —13 10011 4/4 9 r4¢/9 9, 2237 416 08409 15 96 1,5 418 05407 17 99 1787 sT m 1 J MAP 615 F COPELAND SUB MAP 166 — RANCHO DE LA NACION—POR I/4SEC 131 DEC 1'61998 Fire Prevention Services, Inc. P.O. Box 1720 : El Cajon, CA 92022-1720 (866) 779-3774 : fax (619) 445-6336 http://fireprevention.net ADMINISTRATIVE BILL 9/26/2011 Jimenez Jaime:Patricia 489 Miguel Trail PI Chula Vista, CA 91914 Parcel # 556 415 06 00 ';cation: 1023 F. 7th St National City 91',}50 Dear Jimenez Jaime; Patricia, Fire Prevention Services has been contracted by the City of National City to help reduce potential fire violations thus improving the safety of its citizens. Your property was re -inspected on 8/8/201 1 and found to still be in violation of the National City Municipal Code Chapter 1.36. As stated in the notice, if the violation is not corrected prior to the deadline you will be charged an administrative fee. A final inspection was performed on the above referenced parcel, as of 9/21/2011 this parcel is in compliance with the National City Municipal Code Chapter 1.36. Due to the abatement not being completed by the deadline, you are being charged the administrative fee_ Thus far your bill is $ 350 and if paid within fifteen (15) days of this notice no further costs will be incurred by you. Please make check payable to F.P.S.I. and please include the File # 556 415 06 00 on the check. If you have any questions please call us direct at (866) 779-3774. Sincerely, Fire Prevention Services. Inc. rev.05/ 19/06 NATIONAL CITY SCHEDULE OF FEES Tractor Mowing quantity sub total A. per parcel, sized 1 to 7500 square feet S250.00 $ B. per parcel, sized 7,501 to 15,000 square feet $325.00 $ C. per parcel sized 15,001 square feet to 30,000 square feet $400.00 $ D. per parcel sized 30,001 square feet to one acre $4.50.00 $ E. per square foot over one acre $0.02 sq.ft. $ Hand Labor A. per square foot of area abated $0.10 sq.ft. Dozer Operation A. hourly rate $150.00 B. move -on fee $150.00 Debris Remediation (includes chipping, grinding and/or shredding) A. per cubic yard of material prior to chipping and/or compacting B. dump fees $38.00 X cu.yds.= $ - (reimbursement of cost) Administrative Fee ( failure to comply by deadline of notice) A. per parcel $350.00 1 $ 350.00 Attorney Services A. per parcel, per hour $200.00 $ Assessment Fees (includes preparing reports, attending hearings, etc.) A. cost confirmation fee, per parcel $275.00 $ Miscellaneous Fees Per Parcel A. special inspection fee $50.00 $ B. abatement lien $50.00 $ C. interest on lien (apr) 10% D. release of abatement lien $50.00 E. public notary $20.00 F. file duplication fee $50.00 $ G. unscheduled labor per man hour $50.00 $ H. unscheduled fees (reimbursement of cost) $ FILE # 3212 APN# 556-415-06-00 TOTAL $ 350.00 Fire Prevention Services, Inc. P.O. Box 1720 : El Cajon, CA 92022-1720 (866) 779-3774: fax (619) 445-6336 http://fireprevention.net Final Bill 10/21/2011 Jimenez Jaime;Patricia 489 Miguel Trail P1 Chula Vista, CA 91914 Itef: Parcel # 556 415 06 00 Dear Jimenez Jaime;Patricia, This is a reminder of the letter we sent you on 9/26/2011 and we have not received payment in the amount of $3.50.00 If we do not receive payment within 10 days we will be required to seek appropriate action to collect these monies. This action may include filing an abatement lien on your property and forwarding this bill to our collection agency. Under state and local law, costs for such action will be added to your total amount. Please tender a check to us immediately to avoid any further action. Make your check payable to Fire Prevention Services, Inc., and include the Parcel # 556 415 06 00 on the check. Should you need to discuss this matter you may contact us at (866) 779-3774. Sincerely, Fire Prevention Services, Inc. rev.05/I9/06 RECORDING REQUESTED BY Fire Prevention Services, Inc. PO Box 2012 [pine, CA 91903-2012 19) 562-1058 fax (619) 445-6336 AND WHEN RECORDED MAIL TO Fire Prevention Services, Inc. PO Box 2012 Alpine, CA 91903-2012 D O C ## 2011-0597532 IIII11111111111111111II111111111111111I111111111 II1111 NOV 08, 2011 2:53 PM OFFICIAL RECORDS SAN DIEGO COUNTY RECORDER'S OFFICE Ernest J Dronenburg, Jr., COUNTY RECORDER FEES. 0.00 PAGES: 1 I I1IIII I1III I1III11III IIIII I111111II11111111III 111II IIIH 111I11111111III1101111I I01 III NOTICE OF ABATEMENT TO THE CURRENT OWNER OF RECORD AND ANY FUTURE OWNERS/PURCHASERS OF THE HEREIN DESCRIBED PROPERTY WHEREAS it was determined that a violation of Chapter 1.36 of the National City Municipal Code did exist, and WHEREAS such violation was ordered abated on 9/21/201 1, and - WHEREAS representatives of the National City Fire Department abated the violation(s) on 9/21/201 1, and WHEREAS the charge for such abatement amounted to $420.00: THEREFORE be it known that an abatement obligation exists on the property regardless of owner until paid. The current owner of the property is Jimenez Jaime;Patricia at 489 Miguel Trail PI, Chula Vista. CA 91914 described as follows: 'N#556415 0600 )DRESS: 1023 E 7th St National City 91950 LEGAL DESCRIPTION: Lot 4 W 66 Ft Lots 11 Thru 14 Blk 3 This abatement obligation shall attach to the property, not the owner, and after confirmation by the City Council shall become a special assessment on the property tax bill. if not paid pursuant to State Law and State Tax Lien Law, the property may be sold to satisfy that obligation. The amount of such claim shall be $420.00 plus interest and other costs which may hereafter become due. This filing does not preclude the filing of legal action for collection. Should such actions be required or determined to be appropriate, reasonable legal fees will be incurred and added to said obligation. DATED: November 4, 2011 State of California ) SS. County of San Diego BY: Ken sborn, Fire Prevention Services, Inc., Designee for National City Fire Department Certificate Of Acknowledgement On November 4, 201 I before me, Michelle D. Higgins, Notary Public, personally appeared Ken Osborn, 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. d err d offici. seal. TNES5--fny MICHELLE D. HIGGINS L COMM. #1900612 z Notary Publu - California AO San Diego County My Comet Expires Aurk21, 2014t (Seal) SUMMARY REPORT FOR APN 557-140-25-00 01/27/11 Initial inspection was made, property was found to be in violation. 02/17/11 Mailed 30 day courtesy notice to the property owner. 03/21/11 Re -inspection was made, property was found to be in violation. 03/21/11 Posted property. 03/22/11 Mailed 10 day final notice to the owner, certified mail. 04/01/11 Received signed certified return receipt. 04/04/11 Final inspection was made, property was found to be in violation. 04/05/11 Verified ownership information with the County of San Diego. 04/13/11 Work order authorization signed by City Official. 05/19/11 F.P.S.I. crews abated the property. 05/23/11 The owner was mailed a bill at our contracted rates. 05/23/11 A Notice of Abatement was filed on the property. 06/10/11 Received returned bill "not deliverable as addressed". 06/13/11 The owner was mailed a final bill. 06/05/12 The list of Fixed Charge Special Assessments [EXHIBIT "A"] and the City Clerk's "NOTICE OF PUBLIC CONFIRMATION OF COSTS HEARING" was served upon the property owner by means of Regular Mail, Certified Mail and Posting upon the property. CITY OF NATIONAL CITY FIRE DEPARTMENT 1243 E. 12th St. : Suite A : NATIONAL CITY, CA. 91950-4596 NOTICE TO ABATE PUBLIC NUISANCE Owner: Zayat Kamel;Elkadi % Casa Engineering Address: 9225 Dowdy Dr #219 Date: 2/17/2011 San Diego, CA 92126 Parcel Number: 557 140 25 00 x t�: ,: Vr AYW' e1Ja" ki Location of Public Nuisance: 8th St National City Instructions for Abatement: Please clear the entire property of all weeds, dead vegetation, trash, debris and arundo. All piles of dead vegetation and debris must be removed from the property. (Please maintain any and all grasses below 3 inches year round' You are hereby directed to abate the public nuisance described above, of which you are the occupant or owner, within thirty (30) days of 2/17/2011. **Your failure to comply with this order will result in the City having your property cleaned by the City's contractor at your expense (per National City Municipal Code Chapter 1.36). A $350.00 administrative fee will be charged in addition to the contractor's fees to clean the property (per Resolution number 94-97). Violations are also subject to prosecution as misdemeanors. Guidelines For The Abatement of Flammable Vegetation For the protection of life and property, remove all brush, flammable vegetation, or combustible growth which is located from thirty (30) feet to one hundred (100) feet from such a building or structure or to the property line, whichever is nearer, or as required by the Fire Department, including the maintenance of grass and other vegetation more than thirty (30) from such building or structure. Cuttings are to be removed from the property and disposed of properly Vegetation is to be cut within two (2) inches of the ground. "NOTICE REGARDING RARE THREATENED OR ENDANGERED SPECIES" If you have previously received a notice from the California Department of Fish and Game or the U.S. Fish and Wildlife Services that rare, threatened or endangered species of fish or wildlife have occurred on your property in the areas identified for fuel break clearance, YOU MUST NOTIFY BOTH AGENCIES AND THE NATIONAL CITY FIRE DEPARTMENT IN WRITING AT LEAST TEN (10) DAYS PRIOR TO BEGINNING VEGETATION CLEARING. IF THESE AGENCIES FAIL TO OBJECT OR NOTIFY YOU OF ANY ALTERNATIVE PROCEDURES WITHIN THOSE TEN (10) DAYS, YOU MAY THEN PROCEED TO CLEAR VEGETATION AS DIRECTED BY THIS NOTICE. Failure to provide notification to these agencies may render you liable under Federal or State Law to penalties. National City Municipal Code 9.12.010 Public Nuisance Declared —In General Any of the following conditions are hereby declared to constitute a public nuisance: When the Fire Chief or his/her designee determines that there exists in any building or on any premises combustible, hazardous or explosive materials or dangerous umulations of rubbish; or unnecessary accumulations of wastepaper, boxes, shavings, or any highly flammable materials which are so situated as to endanger Life or property; or finds obstructions to or on fire escapes, stairs, passageways, doors or windows that reasonably tend to interfere with the operations of the fire department or the egress of the occupants of such building of premises; or finds that the effectiveness of any exit door, attic separation or any fire separation wall is reduced; or finds that any provision of the Uniform Fire Code is being violated. B. When the Fire Chief or his/her designee deems any chimney, smokestack, stove, oven, incinerator, furnace or other heating device, electric fixture or any appurtenance thereto, or anything regulated under a nationally recognized standard in or upon any building, structure or premises not specifically mentioned in the Uniform Fire Code, Io be defective or unsafe so as to create a hazard. C. When the Fire Chief or his/her designee finds any condition which in his/her judgment increases or may cause an increase of the hazard or menace of fire to a greater degree that customarily recognized as normal by persons in the public service regularly engaged in preventing, suppressing or extinguishing fire or any thing or act which may obstruct, delay, hinder or interfere with the operations of the fire department or the egress of occupants in the event of fire. )National City Municipal Code 9.12.020 Public Nuisance Declared —Weeds and Other Flammable Materials All weeds, growing or located upon streets, sidewalks or private property are hereby declared to be a public nuisance. For the purposes of this chapter, "weeds" shall include the following: A. Weeds which bear seeds of a downy or wingy nature. B. Sagebrush, chaparral, and any other brush or weeds which attain such large growth as to become, when dry, a tire menace to adjacent improved property. C. Weeds which are otherwise noxious or dangerous. D. Poison oak and poison ivy when the conditions of growth are such as to constitute a menace the the public health. E. Dry grass, stubble, brush, litter, or other flammable material which endangers the public safety by creating a fire hazard in a portion of the City which has been zoned for single and multiple residence purposes. National City Municipal Code 1.36.010 Public Nuisance Defined "Public Nuisance" means any condition defined or declared to be a public nuisance in any section of this code, and/or and condition caused, maintained or permitted to exist which constitutes a threat to the public's health, safety and welfare or which significantly obstructs, injures or interferes with the reasonable of free use of property in a neighborhood, community or to any considerable number of persons. A public nuisance also has the same meaning as set forth in California Civil Code Section 3479. National City Municipal Code 1.36.060 Abatement-- Appeal— Hearing Within ten (10) days from the date of posting, mailing or personal service of the required notice, the owner or person occupying or controlling such lot or premises affected may appeal to the City Council. Such appeal shall be in writing and shall be filed with the City Clerk. If you should have any questions, please feel free to call this number: 1-866-779-3774 Si usted tienealguna pregunta, por favor Ilame al numero: 1-866-779-3774 vnumang katanungan, tumawag tang po sa numerong ito: 1-866-779-3774 Sincerely yours in public safety, 1-866-779-3774 ext. 311 or hap://fireprevention.net Fire Prevention Services*** **You have the right to appeal this matter to the City Council within ten (10) days of the receipt of this notice. The appeal shall be in writing and filed with the City Clerk. (NCMC 1.36.050) **Tire Prevention Services, Inc. is under contract with the City of National City. NATIONAL CITY FIRE DEPARTMENT COMMON QUESTIONS AND ANSWERS ARE YOU THE CURRENT OWNER OF THIS PROPERTY? Yes ti HAVE YOU CLEARED THIS PROPERTY SINCE THIS NOTICE? No DO YOU UNDERSTAND THE INSTRUCTIONS FOR ABATEMENT? Yes HAVE YOU MADE ARRANGEMENTS TO ABATE THE PROPERTY? No Yes CALL FIRE PREVENTION 1-866-779-3774 http://Tirepreyention.net CALL FIRE PREVENTION FOR RE -INSPECTION. 1-866-779-3774 http://firepreyention.net PROPERTY OWNERS ARE RESPONSIBLE FOR MAINTAINING HAZARD ABATEMENT ON A YEAR ROUND BASIS. No ► HAVE YOU THOROUGHLY READ THE ABATEMENT INSTRUCTIONS No WOULD YOU LIKE THE CITY TO ABATE THE HAZARD FOR YOU? IF NOT ABATED WITHIN TIME SPECIFIED THE OWNER WILL BE CHARGED A $350.00 ADMINISTRATIVE FEE. PLUS FIRE PREVENTION WILL ABATE. THE OWNER WILL BE BILLED FOR ALL COSTS Yes Yes Yes IF YOU DO NOT UNDERSTAND INSTRUCTIONS CALL FIRE PREVENTION. 1-866-779-3774 http://fireprevention.net CALL FIRE PREVENTION WHEN COMPLETED FOR RE -INSPECTION. 1-866-779-3774 http://fireprevention.net CALL FIRE PREVENTION FOR ARRANGEMENTS. 1-866-779-3774 http://fireprevention.net IF ARRANGEMENTS ARE MADE PRIOR TO CITY ABATING HAZARD, THE ADMINISTRATIVE FEE MAY BE WAIVED. 333 E. 16th Street : National City, CA : 91950-4596 1. CITY OF NATIONAL CITY SCHEDULE OF FEES Tractor Mowing A. per parcel, sized 1 to 7,500 square feet B. per parcel, sized 7,501 to 15,000 square feet C. per parcel, sized 15,001 square feet to 30,000 square feet D. per parcel, sized 30,001 square feet to one acre E. Per square foot over one acre 2. tland Labor A. per square foot of area abated Dozer Operation A. hourly rate B. move -on fee $250.00 $325.00 $400.00 $450.00 $ 00.02 $ 00.10 $150.00 $150.00 4. Debris Remediation (includes chipping, grinding, and/or shredding) A. per cubic yard of material prior to chipping, and or compacting $ 38.00 B. dump fees (reimbursement of cost) 5. Administrative Fee (failure to comply with final notice) A. per parcel 6. Attorney Services A. per parcel, per hour 7. Assessment Fees (includes preparing reports, attending hearings, etc.) A. Cost confirmations fee, per parcel 8. Miscellaneous Fees A. B. C. D E. G. H. special inspection fee abatement lien Interest on lien (apr) release of abatement lien public notary File duplication fee Unscheduled Labor per man hour unscheduled fees $350.00 $200.00 $275.00 $ 50.00 $ 50.00 10% $ 50.00 $ 20.00 $ 50.00 $ 50.00 (reimbursement of cost) CITY OF NATIONAL CITY FIRE DEPARTMENT Fire Prevention Services*" rev. 03/27/06, 0424/06, 06/21/06 1243 E. 12th St. : Suite A : NATIONAL CITY, CA. 91950-4596 FINAL NOTICE TO ABATE PUBLIC NUISANCE vwrter: Zayat Kamel;Elkadi % Casa Engineering Address: 9225 Dowdy Dr #219 Date: 3/22/2011 San Diego, CA 92126 Parcel Number: 557 140 25 00 Location of Public Nuisance: 8th St National City `? Instructions for Abatement: Please dear the entire property of all weeds, dead vegetation, trash, debris and arundo. All piles of dead vegetation and debris must be removed from the property. (Please maintain any and all grasses below 3 inches year round) You are hereby directed to abate the public nuisance described above, of which you are the occupant or owner, within ten (10) days of 3/22/2011. **Your failure to comply with this order will result in you being charged the administrative fee and the City having your property cleaned by the City's contractor at your expense (per National City Municipal Code Chapter 1.36). A $350 00 administrative fee will be charged in addition to the contractor's fees to clean the property (per Resolution number 94-97). Violations are also subject to prosecution as misdemeanors_ Guidelines For The Abatement of Flammable Vegetation For the protection of life and property, remove all brush, flammable vegetation, or combustible growth which is located from thirty (30) feet to one hundred (I00) feet from such a building or structure or to the property line, whichever is nearer, or as required by the Fire Department, including the maintenance of grass and other vegetation more than thirty (30) from such building or structure. Cuttings are to be removed from the property and disposed of properly Vegetation is to be cut within two (2) inches of the ground_ "NOTICE REGARDING RARE, THREATENED OR ENDANGERED SPECIES" If you have previously received a notice from the California Department of Fish and Game or the U.S. Fish and Wildlife Services that rare, threatened or endangered species of fish or wildlife have occurred on your property in the areas identified for fuel break clearance, YOU MUST NOTIFY BOTH AGENCIES AND THE NATIONAL CITY FIRE DEPARTMENT IN WRITING AT LEAST TEN (10) DAYS PRIOR TO BEGINNING VEGETATION CLEARING. IF THESE AGENCIES FAIL TO OBJECT OR NOTIFY YOU OF ANY ALTERNATIVE PROCEDURES WITHIN THOSE TEN (10) DAYS. YOU MAY THEN PROCEED TO CLEAR VEGETATION AS DIRECTED BY THIS NOTICE. Failure to provide notification to these agencies may render you liable under Federal or State Law to penalties. National City Municipal Code 9.12.010 Public Nuisance Declared —In General Any of the following conditions are hereby declared to constitute a public nuisance: A. When the Fire Chief or his/her designee determines that there exists in any building or on any premises combustible, hazardous or explosive materials or aangerous accumulations of rubbish; or unnecessary accumulations of wastepaper, boxes, shavings, or any highly flammable materials which are so situated as to endanger property; or finds obstructions to or on fire escapes, stairs, passageways, doors or windows that reasonably tend to interfere with the operations of the fire department egress of the occupants of such building of premises; or finds that the effectiveness of any exit door, attic separation or any fire separation wall is reduced; or finds Wry provision of the Uniform Fire Code is being violated. B. When the Fire Chief or his/her designee deems any chimney, smokestack, stove, oven, incinerator, furnace or other heating device, electric fixture or any appurtenance thereto, or anything regulated under a nationally recognized standard in or upon any building, structure or premises not specifically mentioned in the Uniform Fire Code, to be defective or unsafe so as to create a hazard. C. When the Fire Chief or his/her designee finds any condition which in his/her judgment increases or may cause an increase of the hazard or menace of fire to a greater degree that customarily recognized as normal by persons in the public service regularly engaged in preventing, suppressing or extinguishing fire or any thing or act which may obstruct, delay, hinder or interfere with the operations of the fire department or the egress of occupants in the event of fire. National City Municipal Code 9.12.020 Public Nuisance Declared --Weeds and Other Flammable Materials All weeds, growing or located upon streets, sidewalks or private property are hereby declared to be a public nuisance. For the purposes of this chapter, "weeds" shall include the following: A. Weeds which bear seeds of a downy or wingy nature. B. Sagebrush, chaparral, and any other brush or weeds which attain such large growth as to become, when dry, a fire menace to adjacent improved property. C. Weeds which are otherwise noxious or dangerous. D. Poison oak and poison ivy when the conditions of growth are such as to constitute a menace the the public health. E. Dry grass, stubble, brush, litter, or other flammable material which endangers the public safety by creating a fire hazard in a portion of the City which has been zoned for single and multiple residence purposes. National City Municipal Code 1.36.010 Public Nuisance Defined "Public Nuisance" means any condition defined or declared to he a public nuisance in any section of this code, and/or and condition caused, maintained or permitted to exist which constitutes a threat to the public's health, safety and welfare or which significantly obstructs, injures or interferes with the reasonable of free use of property in a neighborhood, community or to any considerable number of persons. A public nuisance also has the same meaning as set forth in California Civil Code Section 3479. National City Municipal Code 1.36.060 Abatement— Appeal— Hearing Within ten (10) days from the date of posting, mailing or personal service of the required notice, the owner or person occupying or controlling such lot or premises affected may appeal to the City Council. Such appeal shall be in writing and shall be filed with the City Clerk. If you should have any questions, please feel free to call this number: 1-866-779-3774 Si usted tienealguna pregunta, por favor !lame al numero: 1-866-779-3774 Sa anumang katanungan, tumawag lang po sa numerong ito: 1-866-779-3774 :ly yours in public safety, "You have the right to appeal this matter to the City Council within ten (10) days of the receipt of this 1-866-779-3774 ext. 311 or http://fireprevention.net The appeal shall be in writing and filed with the City Clerk. (NCMC 1.36.050) ***Fire Prevention Services, Inc. is under contract with the City of National City. NATIONAL CITY FIRE DEPT. 1243 National City Boulevard IMPORTANT NATIONAL CITY, CA 91950-4596 I IA7AR1) ABATEMENT NOT1C. NOTICE TO ABATE Owner: Zayat Karnel,Efkadi Rana Address: 9225 Dowdy Dr #220 San Diego, CA 92126 Date: 2/3/2011 L7@r4s'im NIXIE 921 SE 1 OD O:2/ 07/ 11 RETURN TO SENDER NOT DELIVERABLE AS ADDRESSED UNADLE TO FORWARD MC: 919:SO4.59b9Si *2304-- 1'9124 - 03--OS 11111171111111)1, 1711111 M 1111111111111II II111111111111111111 U.S, Postat Service;: CERTIFtE# MAIL,.. F ECEIPT .' (bomesU MaO f ly, No'irr uranr average Pt (actor ;r 3nt lid Re-'s'.rint ' 1 sivoFy i? nd-:1.num;?nt F r-4ugp':1 ( 557 140 25 00 NC Zayat Kamel;Elkadi % Casa Engineer - 9225 Dowdy Dr #219 San Diego CA 92126 SENDER: COMPLLTE'THIS SECTION is Cornplete items 1, 2, and 3. Also complete item 4 if Restricted Delivery is desired. is Print your name and address on the reverse so that we can return the card to you. is Attach this card to the back of the mailpiece, or on the front if space permits. ressed to: 557 140 25 00 NC Zayat Kamel;Elkadi % Casa Enginee 9225 Dowdy Dr#219 San Diego CA 92126 2. COMPLETE THIS SECTION ON DELIVERY ❑ Agent ❑ Addre Date of Delivery D: is delivery address diffe a Frtfri ite n f? Peres if YES, enter delivery address below: 0 No Senrke Type C Cettified'Mati Registered 0 insured Mail 4. Restricted DeIW PS Form 3811,`February 2004 Domestic Return Receipt u Rstum 0 C.O.D. for Merchandise 0 Yes 1025$5'- 2-M-154p -. ruitzli" Fire Prevention Services P.O. Box 1720 El Cajon, CA 92022-1720 q Zayat Kamel;Elkadi % Casa I-;ngineering 922'5 Dowdy Dr 4219 I-, San Dicgo, CA 92126 1 L4 C'7 Fire Prevention Services P.O. Box 1720 El Cajon, CA 92022-1720 0/13/2011 Zayat Karnel;Elkadi % Casa Engineering 9225 Dowdy Dr #219 San Diego; CA 92126 20 ...S., AN Olt C 23MIY 70i "fr,W4 2 T NIXIE 921 5E 1 oo 09/ 1 1 RETURN TO SENDER NOT DE'LIVERABLE AS Pirxmasszo UNABLE ro PORWARD 92022172020 '*1404-00S.f. 7-2B-- a Jawukh,W40,,JuhlIkunhflk,.11,1 4TAUN.2011.PU 2 T NIXIE :1,21 5E, 1 00 06/10/11 RETURN TO SENDER NOT DELIVERABLE AS ADDRESSED UNABLE TO rORWARD DC: B2022172020 *1404-19$20-14-00 ni Jfl CITY OF NATIONAL CITY FIRE DEPARTMENT 333 E. 16th St.: NATIONAL CITY, CA. 91950-4596 WORK ORDER AUTHORIZATION Authorization # 2802 Owner: Zayat Kamel;Elkadi % Casa Engineering Address: 9225 Dowdy Dr #219 San Diego, CA 92126 Parcel #557 140 25 00 Job location:8th St National City Authorized by-:- eh:-{-1 ` \.Q tit o.,c\ : nat Date: 11- 13 \C ,�t WHEN SIGNED THIS DOCUMENT ALLOWS RIGHT OF PASSAGE ONTO PRIVATE PROPERTY FOR THE PURPOSE OF FIRE VIOLATION / PUBLIC NUISANCE REDUCTION OR REMOVAL. METHOD OF CLEARING Entire Parcel Fire Break Hand Cutting: sq. ft. Removal: cu. yds. Tractor Mowing: sq. ft. Discing: sq. ft. CREW INFORMATION Crew Date Type: Type: Type: Type: Notes: Please clear the entire property of all weeds, dead vegetation, trash, debris and arundo. All piles of dead vegetation and debris must be removed from the property. (Please maintain any and all grasses below 3 inches year round) Ob koLP SAN IIEGO COUNTY ASSESSOR'S NAP BOOK 537. PAGE .14. —A to a m w 0 Y 0 -o eie Ac bl! • 7 C,l` zl z5 QSEC 130 0 7r•}E'S Te. PI 40 ..a .e �. ,y,.6p MI 2E'`� ` 2C%3 C>> � 20 POR BO AC. LOT 2 3D. OEHPCii a 0 tn.J 2.Pe:::n CM &> ® A•.. .( .— G y ;6 :2m i y 7 �' 1n l%-�j' 3 ,� •s••s, in •.ue.s TH61MP AAS FREPAREO' FOR ASSES9400 REPOSES ONLY NO LAEEIT 6 A59.PAE0 FOa 11E AC0.'MO( OF THE DATA SOWN ASSESSORS PARCELS EMT N71 QYFtY WIN LOCAL 51180 604 DR RULOPG CODN*SCES 5 T, : Aw ,557-14 ' 700 ED tH A 9 . ,90 37 AT, 20430 Wf423J5 }1f}2 334E n 3s 31 32 'WE7 et 39 19$ Zf /374 WLOp ER 1988 sP l60 5 2344 O 033 ' 5 1272 SEP 2 1 1994 MAP 12257.—VILLA PARAISO CONDM. MAP 166 — RHO DE LA NACION — POR QSEC 130 ROS 2374 M ID./ao.,:.. WOO WQrk spaca. cPagrama and Arrolrinr,pf work cfpno Hand $s!, TractcirinTh„ .QtRcnr4Yai 79 7? Fire Prevention Services, Inc. P.O. Box 1720 : El Cajon, CA 92022-1720 (619) 401-1863 : fax (619) 445-6336 http://fireprevention.net 5/23/2011 Zayat Kamel;Elkadi % Casa Engineering 9225 Dowdy Dr #219 San Diego, CA 92126 Parcel # 557 140 25 00 Location: 8th St National City Dear Zayat Kamel;Elkadi % Casa Engineering, This letter is to inform you that the Public Nuisance on the above referenced property was abated pursuant to a prior Notice to Abate and order of the City of National City. Fire Prevention Services was contracted by the City of National City to help reduce Public Nuisances and potential fire violations thus improving the safety of its citizens. The abatement work on your property was performed as mandated by The National City Municipal Code Chapter 1.36. The charges thus far total $1,900.56. You will incur no further costs if this amount is paid within fifteen (15) days of the date of this notice. Failure to pay this bill may result in the filing of an abatement lien upon your property. Please make your check payable to Fire Prevention Services and include the Parcel # 557 140 25 00 on the check. If you have any questions please call us direct at 619-401-1863. Sincerely, Fire Prevention Services. Inc. rev.05/19/06 NATIONAL CITY SCHEDULE OF FEES ilrmw tractor Mowing quantity sub total A. per parcel, sized 1 to 7.500 square feet $250.00 B. per parcel. sized 7,501 to 15,000 square feet $325.00 10550 325.00 C. per parcel, sized 15,001 square feet to 30.000 square feet $400.00 D. per parcel, sized 30,001 square feet to one acre $450.00 E. per square foot over one acre $00.02 sq. tt. Hand I.abor A. per square foot of area abated $0.10 1000 sq. ft. 100.00 Dozer Operation A. hourly rate B. move -on fee S150.00 $150.00 Debris Remediation (includes chipping, grinding, and/or shredding) A. per cubic yard of material prior to chipping, and or compacting $38.00 x 29.62 cu.vds =1 12.5.56 B. dump fees (reimbursement of cost) Administrative Fee (failure to comply by deadline of notice) A. per parcel $350.00 1 350.00 Attorney Services A. per parcel, per hour Assessment Fees (includes preparing reports, attending hearings, etc.) A. cost confirmation fee, per parcel $200.00 $275.00 Miscellaneous Fees Per Parcel A. special inspection fee $50.00 B. abatement lien $50.00 C. Interest on lien (apr) 10% D. release of abatement lien $50.00 E. public notary $20.00 F. file duplication fee $50.00 G. unscheduled Labor per man hour $50.00 H. unscheduled fees (reimbursement of cost) FILE # 2802 APN # 557 140 25 00 TOTAL $ 1.900.56 Fire Prevention Services, Inc. P.O. Box 1720 : El Cajon, CA 92022-1720 (619) 401-1863 : fax (619) 445-6336 http://fireprevention.net Final Bill 6/13/2011 Zayat Kamel;Elkadi % Casa Engineering 9225 Dowdy Dr 14219 San Diego, CA 92126 Ref: Parcel # 557 140 25 00 Dear Zayat Kamel;Elkadi % Casa Engineering, i)PY This is a reminder of the letter we sent you on 5/23/2011 and we have not received payment in the amount of $1,900.56 If we do not receive payment within 10 days we will be required to seek appropriate action to collect these monies. This action may include filing an abatement lien on your property and forwarding this hill to our collection agency. Under state and local law, costs for such action will be added to your total amount. Please tender a check to us immediately to avoid any further action. Make your check payable to Fire Prevention Services, Inc., and include the Parcel # 557 140 25 00 on the check. Should you need to discuss this matter you may contact us at (619) 401-1863. Sincerely, Fire Prevention Services, Inc. rev.05/ 19/06 RECORDING REQUESTED BY Fire Prevention Services, Inc. PO Box 2012 Alpine, CA 91903-2012 (619) 562-1058 fax (619) 445-63 36 1'p D O C tt 2011-0287885 II 1111 IIIII IIIII IIIII IIIII IIIII IIIII IIIII 11111 IIIII IIIII II 11111 MAY 24, 2011 3:10 PM OFFICIAL RECORDS AND WHEN RECORDED MAIL TO SAN DIEGO COUNTY RECORDER'S OFFICE Ernest J. Dronenburg, Jr.. COUNTY RECORDER Fire Prevention Services, Inc. FEES: 0.00 PO Box 2012 PAGES 1 Alpine, CA 91903-2012 1111111 IIIII IIIII 111 IIIII IIIII IIiI IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII ICI IIII NOTICE OF ABATEMENT TO TIIE CURRENT OWNER OF RECORD AND ANY FUTURE OWNERS/PURCHASERS OF THE HEREIN DESCRIBED PROPERTY WHEREAS it was determined that a violation of Chapter 1.36 of the National City Municipal Code did exist. and WHEREAS such violation was ordered abated on 4/13/2011. and WHEREAS representatives of the National City Fire Department abated the violation(s) on 5/19/201 1, and WHEREAS the charge for such abatement amounted to S1,970.56; THEREFORE he it known that an abatement obligation exists on the property regardless of owner until paid. The current owner of the property is Zayat Kamel;Elkadi % Casa Engineering at 9225 Dowdy Dr 4219. San Diego, CA 92126 described as follows: APN # 557 140 25 00 ADDRESS: 8th St National City LEGAL DESCRIPTION: (Ex St&Op)Doc216353Rec60 In 80 AcLot 2 Qsec 130 This abatement obligation shall attach to the property, not the owner, and after confirmation by the City Council shall become a special assessment on the property tax bill. If not paid pursuant to State law and State Tax Lien Law, the property may he sold to satisfy that obligation. The amount of such claim shall be S1,970.56 plus interest and other costs which may hereafter become due. This Filing does not preclude the filing of legal action for collection. Should such actions he required or determined to be appropriate. reasonable legal fees will be incurred and added to said obligation. .7 DATED: May 23, 2011 State of California ) SS. County of San Diego BY: Ken Osborn, Fire Prevention Services. Inc.. Designee for National City Fire Department Certificate Of Acknowledgement On May 23, 2011 before me, MichelleD. Higgins, Notary Public, personally appeared Ken Osborn, 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. / WITNE"§S • hari ar o cal seal' (wL MICNEIIE D. NIC61N5 /` COMM. 01900612 g Notary Public • Californiaa p San Diego County - (Seal) Jr� •.<?" Comm. 21,2014 SUMMARY REPORT FOR APN 557-180-37-00 06/10/11 Initial inspection was made, property was found to be in violation. 06/13/11 Mailed 30 day courtesy notice to the property owner. 06/20/11 Received returned notice "attempted not known". 06/21/11 Verified ownership information with the County of San Diego. 07/14/11 Re -inspection was made, property was found to be in violation. 07/14/11 Posted property. 07/19/11 Mailed 10 day final notice to the owner, certified mail. 07/22/11 Received signed certified return receipt. 07/25/11 Received certified notice returned "attempted not known" green card missing. 08/01/11 Final inspection was made, property was found to be in violation. 08/02/11 Verified ownership information with the County of San Diego. 08/15/11 Work order authorization signed by City Official. 08/17/11 F.P.S.I. crews abated the property. 08/19/11 The owner was mailed a bill at our contracted rates. 08/19/11 A Notice of Abatement was filed on the property. 08/30/11 Received bill returned. 09/16/11 The owner was mailed a final bill. 06/05/12 The list of Fixed Charge Special Assessments [EXHIBIT "Al and the City Clerk's "NOTICE OF PUBLIC CONFIRMATION OF COSTS HEARING" was served upon the property owner by means of Regular Mail, Certified Mail and Posting upon the property. CITY OF NATIONAL CITY FIRE DEPARTMENT 1243 E. 12th St. : Suite A : NATIONAL CITY, CA. 91950-4596 NOTICE TO ABATE PUBLIC NUISANCE Owner: Li Zhiwei Address: 1498 I3th St#193 Imperial Beach, CA 91932 Parcel Number: 557 180 37 00 Date: 6/13/2011 Location of Public Nuisance: 805 N Ave National City 91950 Instructions for Abatement: Please clear the entire property of all weeds, dead vegetation, trash, debris and arundo. All piles of dead vegetation and debris must be removed from the property. (Please maintain any and all grasses below 3 inches year round) You are hereby directed to abate the public nuisance described above. of which you are the occupant or owner within thirty (30) days of 6/13/2011. **Your failure to comply with this order will result in the City having your property cleaned by the City's contractor at your expense (per National City Municipal Code Chapter 1.36). A $350.00 administrative fee will be charged in addition to the contractors fees to clean the property (per Resolution number 94-97), Violations are also subject to prosecution as misdemeanors. Guidelines For The Abatement of Flammable Vegetation For the protection of life and property, remove all brush, flammable vegetation_ or combustible growth which is located from thirty (30) feet to one hundred (100) feet From such a building or structure or to the property line, hichever is nearer, or as required by the Fire Department. including the maintenance of grass and other vegetation more than thirty (30) from such building or structure. Cuttings are to be removed from the property and disposed of properly. Vegetation is to be cut within two (2) inches of the ground. "NOTI: I: REGARDING RARE, THREATENED OR ENDANGERED SPECIES" If you have previously received a notice from the C aliknn is Department of Fish and Game or the U.S. fish and Wildlife Services that rare, threatened or endangered species of fish or wildlife have occurred on your property in the areas identified for fuel break clearance, YOU MUST NOl1FY BOTH AGENCIES AND THE NATIONAL CITY FIRE DEPARTMENT IN WRITING AT LEAST TEN (10) DAYS PRIOR TO BEGINNING VEGETATION CLEARING. IF THESE AGENCIES FAIL TO OBJECT OR NOTIFY YOU OF ANY ALTERNATIVE PROCEDURES WITHIN THOSE TEN (I0) DAYS. YOU MAY THEN PROCEED TO CLEAR VEGETATION AS DIRECTED BY THIS NOTICE. Failure to provide notification to these agencies may render you liable under Federal or State Law to penalties. Nat:.,r:..t City Municipal Code 9.12.010 Public Nuisance Declared --In General Any of the following conditions are hereby declared to constitute a public nuisance: When the Fire Chief or his/her designs .!. ;, r. rives that there exists in any building or on any premises combustible. hazardous or explosive materials or dangerous mlations of rubbish; or unnecessary aceuu ..r..:•. ;u of wastepaper, boxes. shavings, or any highly flammable materials which are so situated as to endanger life or _ ty; or finds obstructions to or on fire escapes, stairs, passageways, doors or windows that reasonably tend to interfere with the operations of the tire department or the egress of the occupants of such building of premises: or finds that the effectiveness of an) exit door. attic separation or any fire separation wall is reduced: or finds that any provision of the Uniform Fire Code is being violated. B. When the Fire Chief or his/her designer dcems any chimney, smokestack, stove. oven, incinerator, furnace or other heating device. electric fixture or any appurtenance thereto, or anything regulated under a nationally recognized standard in or upon any building, structure or premises not specifically mentioned in the Uniform Fire Code, to be defective or unsafe so as to creak::. 1_:. ud. C. When the Fire Chief or his/her design: : L•,J> any condition which in his/her judgment increases or may cause an increase of the hazard or menace of fire to a greater degree that customarily recognized as normal by persons in the public service regularly engaged in preventing. suppressing or extinguishing fire or any thing or act which may obstruct, delay, hinder or interfere IA it! .,;+orations of the fire department or the egress of occupants in the event of tire. National City \luu:: F...t Code 9.12.020 Public Nuisance Declared--1) eeds and Other Flammable Materials All weeds, growing or located upon streets, sidewaGks or private property are hereby declared to be a public nuisance. For the purposes of this chapter. "weeds" shall include the following: A. Weeds which bear seeds of a downy or r, . ,• nature. B. Sagebrush, chaparral- and any other hrr ..reeds which attain such large growth as to become, when dry. a fire menace to adjacent improved property. C. Weeds which are otherwise noxious or D. Poison oak and poison ivy when the condi; ions of growth are such as to constitute a menace the the public health. E. Dry grass, stubble, brush, litter, or oil. , :'...: _sable material which endangers the public safety by creating a tire hazard in a portion of the City which has been zoned for single and nn.:. r,..; residence purposes. :.,tonal City Municipal Code 1.36.010 Public Nuisance Defined "Public Nuisance" means any condition defined or declared to be a public nuisance in any section of this code, and/or and condition caused. maintained or permitted to exist which constitutes a threat to the public's health, said c and welfare or which significantly obstructs. injures or interferes with the reasonable of free use of property in a neighborhood, community or to any considerable u... ,r of persons. A public nuisance also has the same meaning as set Mali in California Civil Code Section 3479. ...1 City Municipal Cnde 1.36.060 Abatement-- Appeal-- Hearing Within ten (10) days from the date of posting, ur.....c_. or personal service of the required notice, the owner or person occur)} ing or controlling such lot or premises affected may appeal to the City Council. Such appeal sh:.l'. riving and shall be filed with the City Clerk If you should have any questions, please feel fre: ,❑ this number: 1-866-779-3774 Si usted tienealguna pregunta, por favor flame .... .. n;: 1-866-779-3774 rmang katanungan, tumawag tang pu sa ur..,.,enne ito: 1-866-779-3774 ely yours in public safety, I-866-779-3774 ext. 311 or htlpd/fireprevculion. Fire Prevention Services.' `Von have the right to appeal this matter to the City Council within ten (10) days of the receipt of this notice. -he appeal shall be in writing and filed with the City Clerk. (NCMC 1.36,050) . 'shire Prevention Services. Inc. is under contract with the City of National City. NATIONAL CITY FIRE DEPARTMENT COMMON QUESTIONS AND ANSWERS ARE YOU THE CURRENT OWNER OF THIS PROPERTY? Yes HAVE YOU CLEARED THIS PROPERTY SINCE THIS NOTICE? No DO YOU UNDERSTAND THE INSTRUCTIONS FOR ABATEMENT? Yes HAVE YOU MADE ARRANGEMENTS TO ABATE THE PROPERTY? No — Yes CALL FIRE PREVENTION 1-866-779-3774 http://fireprevention.net CALL FIRE PREVENTION FOR RE -INSPECTION. 1-866-779-3774 http://fireprevention.net • PROPERTY OWNERS ARE RESPONSIBLE FOR MAINTAINING HAZARD ABATEMENT ON A YEAR ROUND BASIS. No HAVE YOU THOROUGHLY READ THE ABATEMENT INSTRUCTIONS No WOULD YOU LIKE THE CITY TO ABATE THE HAZARD FOR YOU? No IF NOT ABATED WITHIN TIME SPECIFIED THE OWNER WILL BE CHARGED A $350.00 ADMINISTRATIVE FEE. PLUS FIRE PREVENTION WILL ABATE. THE OWNER WILL BE BILLED FOR ALL COSTS Yes Yes IF YOU DO NOT UNDERSTAND Yes INSTRUCTIONS CALL FIRE PREVENTION. 1-866-779-3774 http:/lfireprevention.net CALL FIRE PREVENTION WHEN COMPLETED FOR RE -INSPECTION. 1-866-779-3774 http://fireprevention.net CALL FIRE PREVENTION FOR ARRANGEMENTS. 1-866-779-3774 http://fireprevention.net IF ARRANGEMENTS ARE MADE PRIOR TO CITY ABATING HAZARD, THE ADMINISTRATIVE FEE MAY BE WAIVED. 333 E. 16th Street : National City, CA : 91950-4596 CITY OF NATIONAL CITY SCHEDULE OF FEES 1. Tractor Mowing A. per parcel, sized 1 to 7,500 square feet B. per parcel, sized 7,501 to 15,000 square feet C. per parcel, sized 15,001 square feet to 30,000 square feet D. per parcel, sized 30,001 square feet to one acre E. Per square foot over one acre 2. Hand Labor A. per square foot of area abated 3. Dozer Operation A. hourly rate B. move -on fee $250.00 $325.00 $400.00 $450.00 $ 00.02 $ 00.10 $150.00 $150.00 4. Debris Remediation (includes chipping, grinding, and/or shredding) A. per cubic yard of material prior to chipping, and or compacting $ 38.00 B. dump tees (reimbursement of cost) 5. Administrative Fee (failure to comply with final notice) A. per parcel 6. Attorney Services A. per parcel, per hour 7. Assessment Fees (includes preparing reports, attending hearings, etc.) A. Cost confirmations fee, per parcel 8. Miscellaneous Fees A. special inspection fee B. C. D E. F. G. H. abatement lien Interest on lien (apr) release of abatement lien public notary File duplication fee Unscheduled Labor per man hour unscheduled fees $350.00 $200.00 $275.00 $ 50.00 $ 50.00 10% $ 50.00 $ 20.00 $ 50.00 $ 50.00 (reimbursement of cost) CITY OF NATIONAL CITY FIRE DEPARTMENT 1243 E. 12th St. : Suite A : NATIONAL CITY, CA. 91950-4596 FINAL NOTICE TO ABATE PUBLIC NUISANCE Owner: Li Zhiwei Parcel Number: 557 180 37 00 Address: 1498 13th St #193 Date: 7/19/2011 Imperial Beach, CA 9I932 Location of Public Nuisance: 805 N Ave National City 91950 Instructions for Abatement: Please el: tl.e entire property of all weeds, dead vegetation, trash, debris and arundo. All piles of dead vegetation and debris must be removed from the property. (Please maintain any and all grasses below 3 inches year round) You are hereby directed to abate the public uuho;utce described above. of which you are the occupant or owner. within ten (10) days of 7/19/2011_ **Your failure to comply with this order will result in you beo : charged the administrative fee and the City having your property. cleaned by the Cdy's contractor at your expense (per National City Municipal Code Chapter I.N,). A S 350.00 administrative fee will be charged in addition to the contractor's lees to clean the property (per Resolution number 94-97). Violations are also subject to pit,. norm as misdemeanors. i:uidelincs For The Abatement of Flammable Vegetation For the protection of life and property, remove e all hi Ai. flammable vegetation, or combustible growth which is located from thirty (30) feet to one hundred (100) feet from such a building or structure or to the proper:.) . ,,:,,,,hover is nearer. or as required by the Fire Department, including the maintenance of grass and other vegetation more than thirty (30) from such building or sum: ...:.n,•s ;ne to be removed from the properly. and disposed of properly. Vegetation is to be cut within two (2) inches of the ground. . IRDING RARE, THREATENED OR ENDANGERED SPECIES" If you have previously received a notice from th :!:. l) lrtnem of Fish and Game or the U.S. Fish and Wildlife Services that rare, threatened or endangered species of fish or wildlife have occurred on your pro, n r.:...:c:, :dentilicd for fuel break clearance, YOU MUST NOTIFY BOTH AGENCIES AND THE NATIONAL CITY FIRE DEPARTMENT IN WRITING AT I.i . S Iu) DAYS PRIOR TO BEGINNING VEGETATION CLEARING. IF THESE AGENCIES FAIL TO OBJECT OR NOTIFY YOU OF ANY ALTERNATIVE PROCI r.;'k 1Al I!11N TI IOSE TEN (10) DAYS, YOU MAY TIIEN PROCEED TO CLEAR VEGETATION AS DIRECTED BY THIS NOTICE. Failure to provide nonf,:al _ a;nties may render you liable under Federal or State Lass to penalties. Any of the following conditions are hereby ric:fu: .. c, A. When the Fire Chief or his/her dc,i •:. -.• dangerous accumulations of rubbish; or ife or property, or finds obstructions to oi . n or the egress of the occupants of such buih:a:,. , that any provision of the Uniform Fire Code e. When the Fire Chief or his/her .I, , appurtenance thereto, or anything regulated gun ...._.. Fire Code, to be defective or unsafe so as to :.. ..: . C. When the Fire Chief or his/her greater degree that customarily recognized as nrnurd by which may obstruct, delay, hinder or intetlehe National All weeds, growing or located upon street>, the following: A. B. C. D. E. Weeds which bear seeds of ado.,. Sagebrush, chaparral, and any o.'.... Weeds which are otherwise no.. -.. Poison oak and poison ivy when the ,-. ... Dry grass, stubble, brush, litter, rr which has been zoned for single ::;:. "Public Nuisance" means any condition def.:.:,: which constitutes a threat to the public's L:.,l.h. neighborhood, community or to any cmrs1,1.. Within ten (10) days from the date of pmt ., may appeal to the City Council. Such appe. If you should have any questions, please Si usted tienealguna prrgunta, por favor Sa anumang kalanungan, tumawag tang ,.. incerely yours in public safety, notice. 1-866-779-3774 ext. 311 or hit; - Fire Prevention Services*** rev. 03/27/06, 04/24/06, 0621/06 \L:uieip:d Code 9.12.010 PubGe Nuisance Declared --In General msutine a public nuisance: the:, exists in any building or on any premises combustible. hazardous or explosive materials or as of wastepaper. boxes, shavings, or any highly flammable materials which are so situated as to endanger pas,:.ecways, doors or windows that reasonably tend to interfere with the operations of the fire department - o: finds thus the effectiveness of any exit door, attic separation or any fire separation wall is reduced: or finds smokestack. stove, o,at, incinerator, furnace or other heating device. electric fixture or any math recognized standard in or upon any building. structure or premises not specifically mentioned in the Uniform .,n, condition which in his/her judgment increases or may cause an increase of the hazard or menace of fire to a persons in the public service regularly engaged in preventing, suppressing or extinguishing fire or any thing or act . •.:L,s.: of the lire department or the egress of occupants in the event of tire. 2.02n1 Public Nuisance Dec hared --Weeds and Other Flammable Materials ;a,qxn v arc hereby declared to be a public nuisance. For the purposes of this chapter. "weeds" shall include ,Lr:h attain such large growth as to become, when dry. a tire menace to adjacent improved property. of uo0111 are such as to constitute a menace the the public health which endangers the ',oldie safety by creating a fire hazard in a portion of the City ._...I. purposes. Code 1.36.0Iii Public Nuisance Defined ,.'. to be ;t public nuisance in any section of this code, and/or and condition caused, maintained or permitted to exist m which significantly obstructs, injures or interferes with the reasonable of tree use of property in a •,ous. A public nuisance also has the same meaning as set forth in California Civil Code Section 3479. )imucip:l Code 1.36.06(1 .\batemenl--Appeal— Hearing service of the required notice. the owner or person occupying or controlling such lot or premises affected sh;:fl be filed with the Cu, Clerk. ti.„ r.br: 1-866-779-3774 ,7;"3774 Mo 779-3774 '* You have the right to appeal this matter to the City Council within ten (10) days of the receipt of this The appeal shall be nt'rrioitez and filed with the City Clerk. (NCMC 1.36.050) ^'fuc Fret ention Service,. Inc. is under contract with the City of National City. SENDER: COMPLE ff THIS SECTION mttem1,2, and 3A Item 4 if Restricted Delivery Is desired, Print your name end address on Mu ruvONO So nun wn Win ref.= the CUM to you. • Attach this C41rd to the but* of the insilpfece, or an the fiend 4 specie permits. A•kin,..”thd t)57 1130 3/ 00 li Zhiwei 1496 13th St #193 Imperial Beach CA NC 9193'2. . ' . COMPLETE THIS SECTION ON ORIVERY Ads,occ o4�l COtri.6 of Doi 7 - z-, n VIn ; LI to EMa Reeeteed CI Patten floosie/ 0 hewed Mail 0 mai) 4, 64sigtetod 0,41Nory? Odra tog) 2, Article NurnOor (Throw* from sorvicto 7010 2?80 11001 2840 1511 • • • PS Form 3811, February 2004 Domestic Return Rep* 1Oeslt,-tt244464), ...IN'ATIONAL CITY FIRED:NTT. 243 National City,,BouleV4rd ...:NATIONAL CITY, CA 50-4 u4kt r.Tb 54,NDE 1 0 2 8 0 0 0 0 1 2 4 0 1511 RUM CHECItEo Clemed......Atteatt ttefttottO t Ito*. Insuflicient Aft No ouch Pla sigh Witt If, tem, DI inn MAIL ter Li Zhiwei ress: 1498 13th St #193 Imperial Beach, CA 91932 11 11 Parcel Number: 557 180 37 00 Date: 7/19/2011 Ii I vtion of Public Nuisance: 805 N Ave National City 91950 A aantirP nronortu Mali weette.. dead v (4t-0 'ICI UN,TE0374t. PCS,. SERiorr 1000 91932 US. POSIkGE PATO CL CAJON.CA 92020 JUL 19'll MOUNT JUL 2 2011 ! I, ... ,4 $5 59 0001579-it RETURN W R E OF NATONAL CI1Y IR DEPARTMENT REQUES D II f I 111 if 1111 133 I kE41Z 1 Fire Prevention Services lo'eo P.O. Box 1720 El Cajon, CA 92022-1720 , 01/0 't"'VO'tq aft4ea 0 Atternmediv zfrai4ed u retain A, Wee PO Sigh ""41060,, a Office state_ — 117 get remains to. Li Aliwei 1498 13thSt fi 193 Imperial 13eaell. CA 91932 Pare7 IRet 72O Fire Prevention Services P.U.Box 1720 El Cajon, CA 92022-1720 • 9/16/2011/ i Zhi ei 14i13th St 4193 ImrSrial Beach., CA 91932 !BC: • . . . 111,4 921 5C 1 L)6,120/1. RETURN TO SENDER RE:FUMED UNAVLE: FORWARD D2022172020 A1404-042S0-20-O0 • f.'10P L • NIXIE D21 DC 1 02 10127/11 RETURN TO SENDER NOT DELIVERADLE AS ADDRESSED I -NAM -a TO POPWARD DC: 92022172020 *1377-0240D-27-00 11,1 I Ili J IIII 2373 13121222321)):ft:ILI CITY OF I NA_. CITY FIRE DEPARTMENT . St.: NATIONAL CITY, CA. 91950-4596 is O1-:DER AUTHORIZATION .`.uthorization # 3196 Owner: Li Zhiwei Address: 1498 13th St Imperial Beach, CA 91 Parcel #557 180 37 00 ;:,cation:805 N Ave National City 91950 Authorized Sign tatii e- WHEN SIGNED THIS �.-.- PURPOSE(, Hand Tractor Date: RIGiIT OF PASSAGE ONTO PRIVATE PROPERTY FOR THE PUBLIC NUISANCE REDUCTION OR REMOVAL. V. THOD OF CLEARING Parcel Fi:: Break sq. ft. Removal: cu. yds. sq. ft. Discing: sq. ft. C,•W INFORMATION Crew Date Type: Type: Type: Type: Notes: Please clear tl� of dead vegetation and c: below 3 inches year ro:. r1v ;;i cal weeds, dead vegetation, trash, debris and arundo. All piles be removed from the property. (Please maintain any and all grasses 06 0 '311.1 SAN O(GO COUNTY ASSESSORS MAI BOON SS/ PAGE 1P. e7 0 ,ifui �" Q — �IGHfH n lS;ti NiYB'1'E IS " M14619`'A551 45 PO7i}4 r. Lc Y i 6 AC THIS NAP WAS PREPAR°C FOR A5SES5MEN1 PURPOSES CRC NO LIABILITY 15 ASSUMED F]R THE ACCURACY Of THE OATP SHOWN ASSESSORS PARCELS MA` NOT COMP, WUN LOCAL 51:9p'JSION OR BUILDNG ORDINANCES is 132 LVT'7 oel AC Rs .R /flsa(/P))A r 9 TH ST MAP 14619 - PARADISE HOMES MAP 166 — RHO DE LA NACION — POR OSEC 132 ROS 11345 e, 8/12/03 MGS LK OLD BOLD 3 , 14 340! IB :8.50 .a rush �ZS 5354 5A34 j04j/714 3542 'Lnl /03 BDI3556 0R1 81 KK• Work spgco far d'Atg,rprn$ Pd ornou n t,,of work donl 612. Hand $9, 7,' 'Proctor-S. TotAl Rorrogi Cu, YO$ pro ,frbil --7` 3jL rikl 0 3 8-17-11 After 8-17-11 Before 8-17-11 After Fire Prevention Services, Inc. P.O. Box 1720 : El Cajon, CA 92022-1720 (866) 779-3774: fax (619) 445-6336 http://fireprevention.net 8/ 19/201 1 Li Zhiwei 1498 13th St #193 Imperial Beach, CA 91932 Parcel # 557 180 37 00 Location: 805 N Ave National City 9195;;0 Dear Li Zhiwei, This letter is to inform you that the Public Nuisance on the above referenced property was abated pursuant to a prior Notice to Abate and order of the City of National City. Fire Prevention Services was contracted by the City of National City to help reduce Public Nuisances and potential fire violations thus improving the safety of its citizens. The abatement work on your property was performed as mandated by The National City Municipal Code Chapter 1.36. The charges thus far total $419.20. You will incur no further costs if this amount is paid within fifteen (15) days of the date of this notice. Failure to pay this bill may result in the filing of an abatement lien upon your property. Please make your check payable to Fire Prevention Services and include the Parcel if 557 180 37 00 on the check. If you have any questions please call us direct at (866) 779-3774. Sincerely, Fire Prevention Services, Inc. rev.05/19/06 NATIONAL CITY SCHEDULE OF FEES actor Mowing quantity sub total per parcel, sized t to 7,500 square feet $250.00 B. per parcel, sized 7,501 to 15,000 square feet $325.00 C. per parcel, sized 15,001 square feet to 30,000 square feet $400.00 D. per parcel, sized 30,001 square feet to one acre $450.00 E. per square foot over one acre $00.02 sq. ft. Hand Labor A. per square foot of area abated $0.10 692 sq. ft. 69.20 Dozer Operation A. hourly rate B. move -on fee S 150.00 $150.00 Debris Remediation (includes chipping, grinding, and/or shredding) A. per cubic yard of material prior to chipping, and or compacting $38.00 X cu.yds = B. dump fees (reimbursement of cost) Administrative Fee (failure to comply by deadline of notice) A. per parcel $350.00 1 350.00 torney Services A. per parcel, per hour Assessment Fees (includes preparing reports, attending hearings, etc.) A. cost confirmation fee, per parcel $200.00 $275.00 Miscellaneous Fees Per Parcel A. special inspection fee $50.00 B. abatement lien $50.00 C. Interest on lien (apr) 10% D. release of abatement lien $50.00 E. public notary $20.00 F. file duplication fee $50.00 G. unscheduled Labor per man hour $50.00 H. unscheduled fees (reimbursement of cost) FILE # 3196 APN # 557-180-37-00 TOTAL S 419.20 Fire Prevention Services, Inc. P.O. Box 1720 : El Cajon, CA 92022-1720 (866) 779-3774 : fax (619) 445-6336 http://fireprevention.net Final Bill 9/16/2011 Li Zhiwei 1498 lath St # 193 Imperial Beach, CA 91932 Ref: Parcel # 557 180 37 00 ])ear Li Zhiwei, This is a reminder of the letter we sent you on 8/19/201 1 and we have not received payment in the amount of $419.20 If we do not receive payment within 10 days we will be required to seek appropriate action to collect these monies. This action may include filing an abatement lien on your property and forwarding this bill to our collection agency. Under state and local law, costs for such action will be added to your total amount, Please tender a check to us immediately to avoid any further action. Make your check payable to Fire Prevention Services, Inc., and include the Parcel # 557 180 37 00 on the check. Should you need to discuss this matter you may contact us at (866) 779-3774. Sincerely, Fire Prevention Services, Inc. rev.05/ 19/06 • RECORDING REQUESTED BY Fire Prevention Services, Inc. PO Box 2012 !pine, CA 91903-2012 i19) 562-1058 fax (619) 445-6336 AND WHEN RECORDED MAIL TO Fire Prevention Services, Inc. PO Box 2012 Alpine, CA 91903-2012 IP D O C ## 2011-0434822 1111111111111111111111111111111111111111111111111111111111111 AUG 23, 2011 3:45 PM OFFICIAL RECORDS SAN DIEGO COUNTY RECORDER'S OFFICE Ernest J Dronenburg, Jr., COUNTY RECORDER FEES' 0.00 PAGES: 1 1111111 IIIII IIIII IIIII NIf1 IIIII 11H1 IIIII IIIII 1111! 011111111 IIIH IIIII 11111 !III !III NOTICE OF ABATEMENT TO THE CURRENT OWNER OF RECORD AND ANY FUTURE OWNERS/PURCHASERS OF THE HEREIN DESCRIBED PROPERTY WHEREAS it was determined that a violation of Chapter 1.36 of the National City Municipal Code did exist, and WHEREAS such violation was ordered abated on 8/ 15/201 1, and WHEREAS representatives of the National City Fire Department abated the violation(s) on 8/17/2011, and WHEREAS the charge for such abatement amounted to S489.20; THEREFORE be it known that an abatement obligation exists on the properly regardless of owner until paid, The current owner of the property is Li Zhiwei at 1498 I3th St 4193, Imperial Beach, CA 91932 described as follows: PN 4 5571803700 DDRESS: 805 N Ave National City 91950 L.LGAL DESCRIPTION: Lot 3 This abatement obligation shall attach to the property, not the owner, and after confirmation by the City Council shall become a special assessment on the property tax bill. If not paid pursuant to State Law and State Tax Lien Law, the property may be sold to satisfy that obligation. The amount of such claim shall be S489.20 plus interest and other costs which may hereafter become due. This filing does not preclude the filing of legal action for collection. Should such actions be required or determined to be appropriate. reasonable legal fees will be incurred and added to said obligation. DATED: August 19. 2011 State of California ) SS. County of San Diego BY: Ken Osborn. Fire Prevention Services, Inc., Designee for National City Fire Department Certificate Of Acknowledgement On August 19, 2011 before me, Michelle D. Higgins, Notary Public, personally appeared Ken Osborn, 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, re MICHELLE D. HIGGINS COMM. #1900612 z(Seal) Notary Public • California O San Diego County Comm. Expires Au.. 21, 2014P SUMMARY REPORT FOR APN 557-380-10-00 03/10/11 Initial inspection was made, property was found to be in violation. 03/14/11 Mailed 30 day courtesy notice to the owner. 03/23/11 Notice returned, "unclaimed". 03/24/11 Verified ownership information with the County of San Diego. 04/15/11 Re -inspection was made, property was found to be in violation. 0415/11 Posted property. 04/18/11 Mailed 10 day final notice to the owner, certified mail. 04/29/11 Final inspection was made, property was found to be in violation. 05/02/11 Verified ownership information with the County of San Diego. 05/03/11 Received voicemail. 05/03/11 Returned call, granted extension on forced abatement. 05/24/11 Work order authorization signed for admin fee by City Official. 05/26/11 The owner was mailed an Administrative bill at the contracted rates. 06/20/11 The owner was mailed a final bill. 07/05/11 A Notice of Abatement was filed on the property. 06/05/12 The list of Fixed Charge Special Assessments [EXHIBIT "Al and the City Clerk's "NOTICE OF PUBLIC CONFIRMATION OF COSTS HEARING" was served upon the property owner by means of Regular Mail, Certified Mail and Posting upon the property. CITY OF NATIONAL CITY FIRE DEPARTMENT 1243 E. 12th St. : Suite A : NATIONAL CITY, CA. 91950-4596 NOTICE TO ABATE PUBLIC NUISANCE Owner: Thomas Ginlei L; % Calstar Address: 9710 Distribution Ave San Diego, CA 92121 Date: 3/14/2011 Parcel Number: 557 380 10 00 Location of Public Nuisance: 2224 E 12th St National City 91950 Instructions for Abatement: Please clear the entire property of all weeds, dead vegetation, trash, debris and arundo. All piles of dead vegetation and debris must be removed from the property. (Please maintain any and all grasses below 3 inches year round) You are hereby directed to abate the public nuisance described above. of which you are the occupant or owner, within thirty (30) days of 3/14/2011. **Your failure to comply with this order will result in the City having your property cleaned by the City's contractor at your expense (per National City :Municipal Code Chapter 1.36). A S350.00 administrative fee will be charged in addition to the contractor's fees to clean the property (per Resolution number 94-97). Violations are also subject to prosecution as misdemeanors. Guidelines For The Abatement of Flammable Vegetation For the protection of life and property, remove all brush, flammable vegetation. or combustible growth which is located from thirty (30) feet to one hundred (100) feet front such a building of structure or to the property line, whichever is nearer, or as required by the Fire Department, including lire maintenance of grass and other vegetation more than thirty (30) from such building or structure. Cuttings are to he removed from the property and disposed of properly. Vegetation lis to be cut within two (2) inches of the ground. "NOTICE, REGARDING RARE, THREATENED OR ENDANGERED SPECIES" If you have previously received a notice from the California Department of Fish and Game or the U_S. Fish and Wildlife Services that rare, threatened or endangered species of fish or wildlife have occurred on your property in the areas identified for fuel break clearance. YOU MUST NOTIFY BOTH AGENCIES AND THE NATIONAL C]TY FIRE DEPARTMEN f IN WRITING AT LEAST TEN (10) DAYS PRIOR TO BEGINNING VEGETATION CLEARING. IF THESE. AGENCIES FAIL TO OBJECT OR NOTIFY YOU OF ANY ALTERNATIVE PROCEDURES WITHIN THOSE TEN (10) DAYS. YOU MAY THEN PROCEED TO CLEAR VEGETATION AS DIRECTED BY THIS NOTICE. Failure to provide notification to these agencies may render you liable under Federal or State Law to penalties. National City Municipal Code 9.12.010 Public Nuisance Declared --In General Any of the following conditions are hereby declared to constitute a public nuisance: When the Fire Chief or his/her designee determines that there exists in any building or on any premises combustible, hazardous or explosive materials or dangerous accumulations of rubbish; or unnecessary. accumulations of wastepaper, boxes, shavings, or any highly flammable materials which are so situated as to endanger life of property; or finds obstructions to or on tire escapes, stairs, passageways. doors or windows that reasonably tend to interfere with the operations of the fire department or the egress of the occupants of such building of premises; or finds that the effectiveness of any exit door, attic separation or any fire separation wall is reduced; or finds that any provision of the Uniform Fire Code is being violated. B. When the Fire Chief or his/her designee deems any chimney, smokestack, stove, oven, incinerator, furnace or other heating device. electric fixture or any appurtenance thereto, or anything regulated under a nationally recognized standard in or upon any building, structure or premises not specifically mentioned in the Uniform Fire Code, to be defective or unsafe so as to create a hazard. C. When the Fire Chief or his/her designee finds any condition which in his/her judgment increases or may cause an increase of the hazard or menace of fire to a greater degree that customarily recognized as normal by persons in the public service regularly engaged in preventing. suppressing or extinguishing fire or any thing or act which may obstruct. delay. hinder or interfere with the operations of the fire department or the egress of occupants in the event of fire. National City Municipal Code 9.12.020 Public Nuisance Declared —Weeds and Other Flammable Materials All weeds, growing or located upon streets. sidewalks or private property are hereby declared to be a public nuisance. For the purposes of this chapter. "weeds" shall include the following. A. Weeds which bear seeds of a downy or wingy nature. B. Sagebrush, chaparral. and any other brush or weeds which attain such large growth as to become, when dry, a fire menace to adjacent improved property. C. Weeds which are otherwise noxious or dangerous. D. Poison oak and poison ivy when the conditions of growth are such as to constitute a menace the the public health. E. Dry grass, stubble. brush, liner, or other flammable material which endangers the public safety by creating a fire hazard in a portion of the City which has been zoned for single and multiple residence purposes. National City Municipal Code 1.36.010 Public Nuisance Defined "Public Nuisance" means any condition defined or declared to be a public nuisance in any section of this code, and/or and condition caused. maintained or permitted to exist which constitutes a threat to the public's health, safety and welfare or which significantly obstructs, injures or interferes with the reasonable of free use of property in a neighborhood, community or to any considerable number of persons. A public nuisance also has the same meaning as set forth in California Civil Code Section 3479. National City Municipal Code 136.060 Abatement— Appeal— Hearing Within ten (10) days from the date of posting, mailing or personal service of the required notice, the owner or person occupying or controlling such lot or premises affected may appeal to the City Council. Such appeal shall be in writing and shall be filed with the City Clerk. If you should have any questions, please feel free to call This number: I-866-779-3774 qi usted tienealguna pregunta, por favor !lame al numero: 1-866-779-3774 a anumang katanungan, tumawag lang po sa numerong ito: 1-866-779-3774 Sincerely yours in public safety, **You have the right to appeal this mutter to the City Council within ten (10) days of the receipt of this notice. 1-866-779-3774 ext. 311 or http://fireprevention.net The appeal shall be in writing and filed with the City Clerk. (NCMC 1.36.050) "*Fire Prevention Services, Inc. is under contract with the City of National City. /Q Fire Prevention Services*** NATIONAL CITY FIRE DEPARTMENT COMMON QUESTIONS AND ANSWERS ARE YOU THE CURRENT OWNER OF THIS PROPERTY? Yes HAVE YOU CLEARED THIS PROPERTY SINCE THIS NOTICE? No DO YOU UNDERSTAND THE INSTRUCTIONS FOR ABATEMENT? Yes HAVE YOU MADE ARRANGEMENTS TO ABATE THE PROPERTY? NIo WOULD YOU LIKE THE CITY TO ABATE THE HAZARD FOR YOU? No IF NOT ABATED WITHIN TIME SPECIFIED THE OWNER WILL BE CHARGED A $350.00 ADMINISTRATIVE FEE. PLUS FIRE PREVENTION WILL ABATE. THE OWNER WILL BE BILLED FOR ALL COSTS No CALL FIRE PREVENTION ► 1-866-779-3774 http://fi repreventi on. net CALL FIRE PREVENTION FOR Yes RE -INSPECTION. 1-866-779-3774 http://fireprevention.net N, PROPERTY OWNERS ARE RESPONSIBLE FOR MAINTAINING HAZARD ABATEMENT ON A YEAR ROUND BASIS. No HAVE YOU THOROUGHLY READ THE ABATEMENT INSTRUCTIONS Yes Yes Yes IF YOU DO NOT UNDERSTAND INSTRUCTIONS CALL FIRE PREVENTION. 1-866-779-3774 http:!Hi repreventi on. net CALL FIRE PREVENTION WHEN COMPLETED FOR RE -INSPECTION. 1-866-779-3774 http:/lfireprevention.net CALL FIRE PREVENTION FOR ARRANGEMENTS. 1-866-779-3774 http://fireprevention.net IF ARRANGEMENTS ARE MADE PRIOR TO CITY ABATING HAZARD, THE ADMINISTRATIVE FEE MAY BE WAIVED. 333 E. 16th Street : National City, CA : 91950-4596 /0 / CITY OF NATIONAL CITY 1. Tractor Mowing A. B. C. I). E. SCHEDULE OF FEES per parcel, sized 1 to 7,500 square feet per parcel, sized 7,501 to 15,000 square feet per parcel, sized 15,001 square feet to 30,000 square feet per parcel, sized 30,001 square feet to one acre Per square foot over one acre Iland Labor A. per square foot of area abated Dozer Operation A. hourly rate B. move -on fee $250.00 $325.00 $400.00 $450.00 $00.02 $ 00.10 $150.00 $150.00 4, Debris Remediation (includes chipping, grinding, and/or shredding) A. per cubic yard of material prior to chipping, and or compacting $ 38.00 B. dump fees (reimbursement of cost) 5. Administrative Fee (failure to comply with final notice) A. per parcel 6. Attorney Services A. per parcel, per hour 7. Assessment Fees (includes preparing reports, attending hearings, etc.) A. Cost confirmations fee, per parcel Miscellaneous Fees A. special inspection fee B. abatement lien C. Interest on lien (apr) D release of abatement lien E. public notary t File duplication fee G. Unscheduled Labor per man hour 11. unscheduled fees $350.00 $200.00 $275.00 $ 50.00 $ 50.00 10% $ 50.00 $ 20.00 $ 50.00 $ 50.00 (reimbursement of cost) /6 a CITY OF NATIONAL CITY FIRE DEPARTMENT 1243 E. 12th St. : Suite A : NATIONAL CITY, CA. 91950-4596 FINAL NOTICE TO ABATE PUBLIC NUISANCE Owner: Thomas Ginlei 1,; % Calstar Parcel Number: 557 380 10 00 Address: 9710 Distribution Ave Date: 4/18/2011 San Diego, CA 92121 L. Location of Public Nuisance: 2224 E 12th St National City 91950 Instructions for Abatement: Please clear the entire property of all weeds, dead vegetation, trash, debris and arundo. All piles of dead vegetation and debris must be removed from the property. (Please maintain any and all grasses below 3 inches year round) You are hereby directed to abate the public nuisance described above, of which you are the occupant or owner, within ten (10) days of 4/18/2011. ** your failure to comply with this order will result in you being charged the administrative fee and the City having your property cleaned by the City's contractor at your expense (per National City Municipal Code Chapter 136). A $350.00 administrative fee will be charged in addition to the contractors fees to clean the property (per Resolution number 94-97). Violations are also subject to prosecution as misdemeanors. Guidelines For The Abatement of Flammable Vegetation For the protection of life and property, remove all brash, flammable vegetation. or combustible growth which is located from thirty (30) feet to one hundred 1100) feet from such a building or structure or to the property line, whichever is nearer, or as required by the Firc Department. including the maintenance of grass and other vegetation more than thirty (30) from such building or structure. Cuttings are to be removed from the property and disposed of properly_ Vegetation is to he cut within two (2) inches of the ground. "NOTICE REGARDING R.4RE, THREATENED OR ENDANGERED SPECIES" If you have previously received a notice from the California Department of Fish and Game or the IJ.S. Fish and Wildlife Services that rare, threatened or endangered species of fish or wildlife have occurred on your property in the areas identified for fuel break clearance, YOU MUST NOTIFY BOTH AGENCIES ANL)'I HE NATIONAL IONAL CITY FIRE DEPARTMENT IN WRITING AT LEAST TEN (10) DAYS PRIOR TO BEGINNING VEGETATION CLEARING. IF THESE AGENCIES FAIL. TO OBJECT OR NOTIFY YOU OF ANY ALTERNATIVE PROCEDURES WITHIN THOSE TEN (10) DAYS, YOU MAY THEN PROCEED TO CLEAR VEGETATION AS DIRECTED BY TIIIS NOTICE. Failure to provide notification to these agencies may render you liable under Federal or State taw to penalties. National City Municipal Code 9.12.010 Public Nuisance Declared --In General Any of the following conditions are hereby declared to constitute a public nuisance: A. When the Fire Chief nr his/her designee determines that there exists in any building or on any premises combustible. hazardous or explosive materials or gerous accumulations of rubbish: or unnecessary accumulations of wastepaper. boxes. shavings. or any highly flammable materials which are so situated as to endanger or property: or finds obstructions to or on fire escapes, stairs, passageways. doors or windows that reasonably tend to interfere with the operations of the fire department he egress of the occupants of such building of premises: or finds that the effectiveness of any exit door, attic separation or any fire separation wall is reduced: or finds that any provision of the Uniform Fire Code is being violated. B. When the Fire Chief or his/her designee deems any chimney, smokestack, stove. oven, incinerator, furnace or other heating device, electric fixture or any appurtenance thereto, or anything regulated under a nationally recognized standard in or upon any building, structure or premises not specifically mentioned in the flu Fire Code, to be defective or unsafe so as to create a hazard. C. When the Fire Chief or his/her designee finds any condition which in his/her judgment increases or may cause an increase of the hazard or menace of fire to a greater degree that customarily recognized as normal by persons in the public service regularly engaged in preventing, suppressing or extinguishing fire or any thing or act which may obstruct, delay, hinder or interfere with the operations of the fire department or the egress of occupants in the event of fire. National (III' Municipal Code 9.12.020 Public Nuisance Declared --Weeds and Other Flammable Materials All weeds. growing or located upon streets, sidewalks or private property are hereby declared to be a public nuisance. For the purposes of this chapter. "weeds" shall include the following: A. Weeds which bear seeds of a downy or wingy nature. B_ Sagebrush, chaparral, and any other brush or weeds which attain such large growth as to become. when dry, a fire menace to adjacent improved property. C. Weeds which are otherwise noxious or dangerous. D. Poison oak and poison ivy when the conditions of growth are such as to constitute a menace the the public health. E. Dry grass, stubble, brush, litter, or other flammable material which endangers the public safety by creating a fire hazard in a portion of the City which has been zoned for single and multiple residence purposes. National City Municipal Code 1.36.010 Public Nuisance Defined "Public Nuisance" means any condition defined or declared to be a public nuisance in any section of this code. and/or and condition caused, maintained or permitted to exist which constitutes a threat to the public's health, safety and welfare or which significantly obstructs, injures or interferes with the reasonable of free use of property in a neighborhood, community or to any considerable number of persons. A public nuisance also has the sante meaning as set forth in California Civil Code Section 3479. National City Municipal Code 1.36.060 Abatement— Appeal-- Hearing Within ten (10) days from the date of posting, mailing or personal service of the required notice, the owner or person occupying or controlling such lot or premises affected may appeal to the City Council. Such appeal shall be in writing and shall be tiled with the City Clerk. If you should have any questions, please feel free to call this number: 1-866-779-3774 Si usted tienealguna pregunta, por favor (lame al numero: 1-866 779-3774 Sa anumang katanungan, tumawag lang po sa numerong ito: 1-866-779-3774 erely yours in public safety, **You have the right to appeal this matter to the City Council within ten (10) days of the receipt of this notice. 1-866-779-3774 ext. 311 or http://ftreprevention.nel The appeal shall be in writing and filed with the City Clerk. (NCMC 1.36.050) ***Fire Prevention Services, Inc. is under contract with the City of National City. Fire Prevention Services**• rev. 03/27/06, 0424/06, 0621/06 /a S 1670 000 U.S. Postal Service,. CERTIFIED. MAIL,=. RECEIPT (Domestic Mail Drily No Insurance Coverage ProvMed)' Fot tlktivery Information CertIted Fee Return Receipt Fee (Ermierswnen1 H©quhed) Reprtuted Derive/id Fee [,cfccureerd Required) 557 380 10 00 Thomas Ginlei L; % Calstar 9710 Distribution Ave San Diego CA 92121 Postrnadi Here 1 12011 NC NATION.m. (ITV FIRE DErr. 241 Natiwull City Boulevard NATIONAL CITY, CA 91950-4596 SAK DIEGO (-,A HAZARD ABATEMENT. NOTICE tgfi2 1 2011 INV," 1 1*) AtiA JE, Owner: Thomas Ginlei L;-+ Address: 9710 Distribution Ave San Diego, CA 92121 Fire Prevention Services P.O. Box 1720 El Cajon, CA 92022-1720 6/20/2011 Parcel Nutt Date: 3/14/2011 S2-1141L Thomastcialei % Calstar 97BYDtstribution Ave San Diego. CA 92121 NIXZE, 921 ttE. 1 00 03/17/11 74-CTUPN TO SENDE'R ON,=,470LE TO rORWARO S5045'S6S0 104-0104-'4,4-37 nritrunitilr,Ithilt1;,L1101111.fprnoi.LitYldIrritrii' .z.01 PM T NIXIE 921 SS 1 00 oer2.11 STUN TO SCNDSR NOT DEL I V17.RACILE 4ADORMS:SCO UNADI-E TO FORWARD E i2022172020 *1004-06127-20-OS '32 Zit 720 CITY OF NATIONAL CITY FIRE DEPARTMENT 333 E. 16th St.: NATIONAL CITY, CA. 91950-4596 WORK ORDER AUTHORIZATION Owner: Thomas Ginlei L; % Calstar Address: 9710 Distribution Ave San Diego, CA 92121 Parcel #557 380 10 00 Authorized by: gnature:— _. Authorization # 2979 / 2-1 11 t f � t1'k- ` Job location:2224 E I2th St Natibpal City 91950 -� je-ticti [lc Date: LI WHEN SIGNED THIS DOCUMENT ALLOWS RIGHT OF PASSAGE ONTO PRIVATE PROPERTY FOR THE PURPOSE OF FIRE VIOLATION / PUBLIC NUISANCE REDUCTION OR REMOVAL. METHOD OF CLEARING Entire Parcel Fire Break Hand Cutting: sq. ft. Removal: cu. yds. Tractor Mowing: sq. ft. Discing: sq. ft. CREW INFORMATION Crew Date Type: Type: Type: Type: Notes: Please clear the entire property of all weeds, dead vegetation, trash, debris and arundo. All piles of dead vegetation and debris must be removed from the property.jPlease maintain any and all grasses below 3 inches year round? Ro7 cos. 0 NW COP OP BO AC E OE LOT Z •E sT 0'. • 0 1F stV, WAS PEERAIED FOR ASSE5S.€111 PUFPOSES OKA tWEILIIT ESSI.E0 R2 SEARCIAACE OF THE DATA 510VIN ASSESSOR S PARCELS WAY COVPLY \\714 LOON. SUGGE,091 C. (10100.4 0110hANCES SAN bit 0 COUNI y ASSSSSU,, MAP 55?P Gt 3$ iT111111) 2 111171111 3 1.,11111 4 5 171111111 111771- 5 SCALE IN WO OF AN INCH C.-)F? 80 AC V ke' 131 G PAR. 2 AC Lei 0 1512. EaD„ 1 GI •):/ kr) 0 • d og 380 68 0,51AC POR 54 E" cop ow \ OF 21/2 OF BOAC. LOT ? 1.91 AC • • LOT - OF BO AC LOT 2 ER ZZ'i!O 0.0340. 2 44. E'" 557-38 00 \ 4 5 100' A k SOMERMIMISISI =MEMO= lantIRMI ‘MerlIMPIII IIIIMMEINSEMB 11111/11111wsalihm 11111•11=19302 moVella 11111111111111111111M1111 IIIIIM1111111111 MIN MEM OMEN= 111111111111111M1111 111111111111161111111 ort 0 MAP 166 -RHO. DE LA NACiON -POR, QSEC 129 ROS 8845,9406 Fire Prevention Services, Inc. P.O. Box 1720 : El Cajon, CA 92022-1720 (619) 401-1863 : fax (619) 445-6336 http://firepreven tion.nel ADMINISTRATIVE BILL 5/26/2011 'Fhoatas Ginlei L; % Calstar 9710 Distribution Ave San Diego, CA 92121 Parcel # 557 380 10 00 Location:2224 E i2th St National City 9195; Dear Thomas Ginlei L; % Calstar, Fire Prevention Services has been contracted by the City of National City to help reduce potential fire violations thus improving the safety of its citizens. Your property was re -inspected on 4/29/2011 and found to still be in violation of the National City Municipal Code Chapter 1.36. As stated in the notice, if the violation is not corrected prior to the deadline you will be charged an administrative fee. A final inspection was performed on the above referenced parcel, as of 5/16/2011 this parcel is in compliance with the National City Municipal Code Chapter I .36. Due to the abatement not being completed by the deadline, you are being charged the administrative fee. Thus far your bill is $ 350 and if paid within fifteen (15) days of this notice no further costs will he incurred by you. Please make check payable to F.P.S.I. and please include the File # 557 380 10 00 on the check. If you have any questions please call us direct at (619) 401-1863. Sincerely, Fire Prevention Services, Inc. rev.05/ 19/06 r/o NATIONAL CITY SCHEDULE OF FEES Tractor Mowing quantity sub total A. per parcel, sized 1 10 7500 square feet $250.00 13, per parcel, sized 7,501 to 15,000 square feet $325-00 per parcel sized 15,001 square feet to 30,000 square feet $400.00 $ per parcel sized 30,001 square feet to one acre $450.00 $ E. per square foot over one acre $0.02 sq.ft. $ Hand Labor A. per square foot of area abated ^;))` $0.10 sq.fi. . \. 1)ozer Operation A. hourly rate $150.00 13. move -on fee $150.00 $ Debris Remediation (includes chipping, grinding and/or shredding) A. per cubic yard of material prior to chipping and/or compacting $38.00 X 13. dump fees (reimbursement of cost) cu-yds.= $ Administrative Fee ( failure to comply by deadline of notice) A. per parcel $350.00 I $ 350 00 Attorney Services A. per parcel, per hour $200.00 Assessment Fees (includes preparing reports, attending hearings, etc.) A cost confirmation fee, per parcel $275.00 $ Miscellaneous Fees Per Parcel A. special inspection fee $50.00 $ 13 abatement lien $50.00 $ C. interest on lien (apr) I O% $ D. release of abatement lien $50.00 $ E. public notary $20.00 $ F. file duplication fee $50.00 $ G, unscheduled labor per man hour $50.00 $ I1. unscheduled fees (reimbursement of cost) FILE # 2979 APN# 558-091-21-00 TOTAL $ 350.00 /7/ • Fire Prevention Services, Inc. P.O. Box 1720 : El Cajon, CA 92022-1720 (866) 779-3774 : fax (619) 445-6336 h t t p:// f i r e p r e v e n t i o n. n et Final Bill 6/20/2011 "Thomas Ginlei L_ % Calstar 9710 Distribution Ave San Diego, CA 92121 Ref: Parcel # 557 380 10 00 Dear 1 homas Ginlei L; % Calstar, This is a reminder of the letter we sent you on 5/26/2011 and we have not received payment in the amount of $350.00 If we do not receive payment within 10 days we will be required to seek appropriate action to collect these monies. This action may include filing an abatement lien on your property and forwarding this hill to our collection agency. Under state and local law, costs for such action will be added to your total amount. Please tender a check to us immediately to avoid any further action. Make your check payable to Fire Prevention Services, Inc., and include the Parcel # 557 380 10 00 on the check. Should you need to discuss this matter you may contact us at (866) 779-3774. Sincerely, Fire Prevention Services, Inc. rev.05/ 19/ 06 ! /) Fire Prevention Services, Inc. P.O. Box 1720 : El Cajon, CA 92022-1720 (866) 779-3774 : fax (619) 445-6336 http://fireprevention.net Final Bill 9/16/201 I Inzunza Nicholas E PO Box 181806 Coronado. CA 92178 Ref: Parcel # 558 091 21 00 Dear Inzunza Nicholas E, This is a reminder of the letter we sent you on 8/9/2011 and we have not received payment in the amount of $350.00 If we do not receive payment within 10 days we will be required to seek appropriate action to collect these monies. This action may include filing an abatement lien on your property and forwarding this bill to our collection agency. Under state and local law, costs for such action will be added to your total amount. Please tender a check to us immediately to avoid any further action. Make your check payable to Fire Prevention Services, Inc., and include the Parcel # 558 091 21 00 on the check. Should you need to discuss this matter you may contact us at (866) 779-3774. Sincerely, Fire Prevention Services, Inc. rev.05/ 19/06 f /3 RECORDING REQUESTED BY Fire Prevention Services, Inc. PO Box 2012 Alpine, CA 91903-2012 (619) 562-1058 fax (619) 445-6336 AND WHEN RECORDED MAIL TO Fire Prevention Services, Inc. PO Box 2012 Alpine, CA 91903-2012 D O C if 2011-0338446 111111111111111111111111111111111111111111111111111111111111 JUL 05, 2011 3:11 PM OFFICIAL RECORDS SAN DIEGO COUNTY RECORDER'S OFFICE Ernest J. Dronenburg, Jr.. COUNTY RECORDER FEES: 0.00 PAGES: 1 11110111010101111111111111161110111111111111111101 NOTICE OF ABATEMENT TO THE CURRENT OWNER OF RECORD AND ANY FtJTURF. OWNERS/PURCHASERS OF THE HEREIN DESCRIBED PROPERTY WHEREAS it was determined that a violation of Chapter 1.36 of the National City Municipal Code did exist, and W I IEREAS such violation was ordered abated on , and WHEREAS representatives of the National City Fire Department abated the violation(s) on 5/16/201 I. and WHEREAS the charge for such abatement amounted to $420.00; THEREFORE be it known that an abatement obligation exists on the property regardless of owner until paid. The current owner of the property is Thomas Ginlci L; Chen Jason at 13896 Kerry Ln, San Diego, CA 92130 described as follows: APN k 557 380 10 00 ADDRESS: 2224 E 12th St National City 91950 LEGAL DESCRIPTION: Por Lot 2 1/4 Sec 129 This abatement obligation shall attach to the property, not the owner, and after confirmation by the City Council shall become a special assessment on the property tax bill. If not paid pursuant to State Law and State Tax Lien Law, the property may be sold to satisfy that obligation. The amount of such claim shall he $420.00 plus interest and other costs which may hereafter become due. This filing does not preclude the filing of legal action for collection. Should such actions be required or determined to be appropriate, reasonable legal fees will he incurred and added to said obligation. DATED: July 5, 2011 State of California ) SS. County of San Diego L BY: Ken horn, Fire Preventio ices. Inc., Designee for National City Fire Department Certificate Of Acknowledgement On July 5, 2011 before me, Michelle D. Higgins, Notary Public, personally appeared Ken Osborn, 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. certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITH SS ti- tad a1Yd official sell.• MICHELLE D.HI681NS COMM. #1900612 Notary P,bi+c California Sar b»ego County ea!) Comm Expires ,.21,2014 SUMMARY REPORT FOR APN 558-153-19-00 03/08/11 Initial inspection was made, property was found to be in violation. 03/09/11 Mailed 30 day courtesy notice to the owner. 04/12/11 Re -inspection was made, property was found to be in violation. 04/12/11 Posted property. 04/13/11 Mailed 10 day final notice to the owner, certified mail. 04/25/11 Final inspection was made, property was found to be in violation. 04/26/11 Verified ownership information with the County of San Diego. 05/24/11 Work order authorization signed by City Official. 05/26/11 Certified notice returned, "unclaimed". 06/10/11 F.P.S.I. crews abated the property. 06/13/11 The owner was mailed a bill at our contracted rates. 06/13/11 A Notice of Abatement was filed on the property. 07/05/11 The owner was mailed a final bill. 06/05/12 The list of Fixed Charge Special Assessments [EXHIBIT "Al and the City Clerk's "NOTICE OF PUBLIC CONFIRMATION OF COSTS HEARING" was served upon the property owner by means of Regular Mail, Certified Mail and Posting upon the property. /7S-- CITN ti,,t' NATIONAL CITY FIRE DEPARTMENT 1243 E. 12th St. : Suite .A : NATIONAL CITY, CA. 91950-4596 NOTICE TO ABATE PUBLIC NUISANCE Owner: Vargas Living Trust Parcel Number: 558 153 19 00 Address: 550 1 St Date: 3/9/2011 Chula Vista, CA 91910 Location of Public Nuisance: 3035 Palmer St National City 91950 Instructions for Abatement: Please clear the entire property of all weed.. dead egetation, trash. Jy r • - .: arund 1 . • •f dead vegetation and debris must be removed from the property. (Please maintain any and all grasses hvl• w - .n;nc, year - You are hereby directed to abate the public nuisance describedabote.,dwhlehyouare the occupant orowner. witr :::r,_rn •3n,day- failure to oomph with this order will result in the City having \our property cleaned by the City's contractor at your experoe .-_:. .: A 8350.00 administrative tee will be charged in addition to the contractors fees us clean the property (per Resoluti,:- 04-0-, 1 prosecution as misdemeanors. Guideline. For The Abatement of Flammable Vegetation For the protection of lite and property remove all brush. flammable seeetaion. or e• r -_ : r. o h s,hich Is located Iron thirty (30) feet to one h,.- such a building or structure or to the property line, whichever is nearer. or as required r.. . :)apartment. including the maintenance of grass and than thins (.301 from such building or structure. Cuttings are to be removed tram the prop: _' disposed of property vegetation is to be cut within Iss,• ground "NOTICE REGARDING R t RI.. I IIREATENED OR FAD If you have previously received a nonce trorn the California Depar rn _ : -S ,till Game or the • -h fish or wildlife have occurred on your property in the areas identified G.t ;,,:. clearance. 1-t • ' DEPARTMENT IN 11 RITING AT LL:AST TEN (10) DAYS PRIOR I1 13l- iAA1'- VEGETA! n YOU OF ANY ALTERNATIVE PRO( [MIRES WITHIN THOSE T E\ I I lit [) 1`. s. 1 OU MAY I :- NOTICE. Failure to provide notification'," these agencies may render you liable Inc:tI ederal or State A\'GFRED SPECIES" and Wildlife Services that rare, threatened or endangere.i NOTIFY BOTH AGENCIES AND THE NAT1OA A' RING. IF THESE AGENCIES FAIL TOOBJI:C al.FD TO CI.EAR VEGETATION AS DIRE(:: does National City Muniripal Code 9.12.0111 Public Nuisance Det Ior J--In General Any of the following conditions are hereb declared to constitute a public nuisance: When the Fire Chief or his/her designee determines that there exists in am hu.ldfng or on any pren-. • mutations of rubbish, or unnecessary accumulation, of wastepaper, boxes, shay ins• or any highly or finds obstructions to or on fire escapes- stairs. passageways, doors or window, that reasonable egress of the occupants of such building of premises. or Finds that the effectiveness of arts ayn door, attic separ::_ provision of the Uniform Fire Code is being violated. B. When the Fire Chief or his/her designee deems any chimney. smokestack. :nos a. oten. incinerator. fum.r„ appurtenance thereto, or anything regulated under a nationally recognized standard in or upon any building, struct,.-. - Fire Code. to he detective or unsafe so as to create a hazard. C. When the Fire Chief or his/her designee finds any condition which in his/her judgment increases or greater degree that customarily recognized as normal by persons in the public service regularh engaged in preventin_. which may obstruct, delay. hinder or interfere with the operations of the fire department or the egress of occupants in the !t:vardous or explosive materials r : c.. . - which are so situated as to end:-_. ,yperations of the fire depac- . wall is reduced; or 0:.: electric fixture or an e: tiealh mentioned u, ::hc hazard or menace oL' -_ ,r eytinauishing fire or :r.. National City Municipal Code 9.12.020 Public Nuisance Declared --Weeds and Other F!anima hie Materials All weeds. growing or located upon streets. sidewalks or private property are hereby declared to he a public nuisance. 1 ::' ,',:rpo.es of this chapter the following: A. C. D. E Weeds which hear seeds of a downy or wingy nature. Sagebrush, chaparral and any other brush or weeds which attain such large growth a.. to become. when dry. a fire menace to adjacent impro\ e.:. :— Weeds which are otherwise noxious or dangerous. Poison oak and poison ivy when the conditions of growth arc such as to constitute a menace the the public health Dry grass, stubble, brush, litter, or other flammable material which endangers the public safety by creating_ a fire hazard in a portion of the t which has been zoned for single and multiple residence purposes- tde National City Municipal Code 1.36.010 Public Nuisance Defined "Public Nuisance" means any condition defined or declared to be a public nuisance in am section of this code, and/or and condition caused_ r ermitted to exist which constitutes a threat to the public's health. safety and welfare or which significantly ohstructs. injures or interferes with the reasonable • _- of property in a neighborhood. community or to any considerable number of persons. A public nuisance also has the same meaning as set forth in California Cxecuon 3479. National (Iry Municipal Code 1.36.060 Abatement--:%ppeal-- Hearing Within ten (10) days from the date of posting, mailing or personal service of the required nouea- the owner or person occupying or cornr.iIlm_: -u:h lot or premises affected may appeal to the City Council. Such appeal shall he in writing and shall he filed with the Cin Clerk. If you should have any questions, please feel free to call this number: 1-866-779-3774 Si usted tienealguna prcgunta, por favor (lame al numero: 1-866-779-3774 numang katanungan, tumawag lang po sa numerong ito: I-866-779-3774 ,rely yours in public safety, 1-866-779-3774 ext. 311 or http://Greprevention.net Fire Prevention Services*** **You have the right to appeal this !natter to the City Council within ten (10) days of the receipt of this notice. The appeal shall he in writing and filed with the City Clerk. tNCMC 1.36.050) ***Fire Prevention Services, Inc. is under contract with the City of National City. /7 s NATIONAL CITY FIRE DEPARTMENT COMMON QUESTIONS AND ANSWERS ARE YOU THE CURRENT OWNER OF THIS PROPERTY? Yes 1 HAVE YOU CLEARED THIS PROPERTY SINCE THIS NOTICE? No DO YOU UNDERSTAND THE INSTRUCTIONS FOR ABATEMENT? Yes HAVE YOU MADE ARRANGEMENTS TO ABATE THE PROPERTY? No No Yes CALL FIRE PREVENTION 1-866-779-3774 http://fireprevention.net CALL FIRE PREVENTION FOR RE -INSPECTION. 1-866-779-3774 http://fireprevention.net PROPERTY OWNERS ARE RESPONSIBLE FOR MAINTAINING HAZARD ABATEMENT ON A YEAR ROUND BASIS. HAVE YOU THOROUGHLY READ THE ABATEMENT Yes INSTRUCTIONS No WOULD YOU LIKE THE CITY TO ABATE THE HAZARD FOR YOU? IF NOT ABATED WITHIN TIME SPECIFIED THE OWNER WILL BE CHARGED A $350.00 ADMINISTRATIVE FEE. PLUS FIRE PREVENTION WILL ABATE. THE OWNER WILL BE BILLED FOR ALL COSTS Yes Yes IF YOU DO NOT UNDERSTAND INSTRUCTIONS CALL FIRE PREVENTION. 1-866-779-3774 http://fireprevention.net CALL FIRE PREVENTION WHEN COMPLETED FOR RE -INSPECTION. 1-866-779-3774 http://fireprevention.net CALL FIRE PREVENTION FOR ARRANGEMENTS. 1-866-779-3774 http:Nfireprevention.net IF ARRANGEMENTS ARE MADE PRIOR TO CITY ABATING HAZARD, THE ADMINISTRATIVE FEE MAY BE WAIVED. 333 E. 16th Street : National City, CA : 91950-4596 7(7 CITY OF NATIONAL CITY SCHEDULE OF FEES 1 Tractor Mowing A. per parcel, sized 1 to 7,500 square feet $250.00 B. per parcel, sized 7,501 to 15,000 square feet $325.00 C. per parcel, sized 15,001 square feet to 30,000 square feet $400.00 D. per parcel, sized 30,001 square feet to one acre $450.00 E. Per square foot over one acre $ 00.02 Hand Labor A. per square foot of area abated $ 00.10 .Dozer Operation A. hourly rate $150.00 B. move -on fee $150.00 4. Debris Remediation (includes chipping, grinding, and/or shredding) A. per cubic yard of material prior to chipping, and or compacting $ 38.00 B. dump fees (reimbursement of cost) 5. Administrative Fee (failure to comply with final notice) A. per parcel $350.00 6. Attorney Services A. per parcel, per hour $200.00 7. Assessment Fees (includes preparing reports, attending hearings, etc.) A. Cost confirmations fee, per parcel $275.00 8. Miscellaneous Fees A. special inspection fee $ 50.00 B. abatement lien $ 50.00 C. Interest on lien (apr) 10% D release of abatement lien $ 50.00 E. public notary $ 20.00 F. File duplication fee $ 50.00 G. Unscheduled Labor per man hour $ 50.00 H. unscheduled fees (reimbursement of cost) is Owner: CI - I OF NATIONAL CITY FIRE DEPARTNICN 7 1243 E. 12th St. : Suite A : NATIONAL CITY, CA. 91950-4596 FINAL NOTICE TO ABATE PUBLIC NUISANCE Vargas Living Trust Parcel Number: 558 153 19 00 Address: 550 I St Date: 4/13/2011 Chula Vista, CA 91910 Location of Public Nuisance: 3035 Palmer St National City 91950 Instructions for Abatement: Please clear the entire property of all Ltd,. dad y egetation, trash. de • _ :.: n„td . \ es of dead vegetation and debris must be removed from the property. (Pleaxt maintain ant and all grasses by - - ear r You are hereby directed to abate the public nuisance described above. - Failure to comply with this order will result in you being charged the administr::'... - (per National City Municipal ( ode Chapter 1 36). A $350 CO administrative to number 9-1-9') Violations arc aL o subject to prosecution as misdemeanors. Guidelines For The Abatemynt For the protection of lice and proper. remove all brush_ tlaert:noble vegetation. or con-- - such a building or structure or to the property line. whichet.- - n::aer. or as required i . than thirty (30) from such building or structure_ Cutting- r; removed from the pro;-. ground. ,. are theoecupantOF0'ale- 11.1:-. .: ;he City having your prop;r. - . :-ecd in addition to the c,,n:r:,'. •I .tnimable Vegetation - „th which is located trout thin. .n utrnent. including the maime:-. -. a.,sed of properly. Vegetation "N(T11( E REGARDING R IRE. THREATENED t (R I If you have prcyioush received a notice from the ud:thrnia Dep.n;- m ,,f F.h and Game or the • of fish or wildlife base occurred on your proper} in the areas id.r.'. „ Biel break clearance. FIRE DEPARTMENT- IN WRITING A I LEAST TEN (10) DAl' PRIi I# GINNING VIA. NOTIFY YOU OF ANY _AI. fERNATIVE PROCEDURES WITHIN I I lost 11 v 10) DAYS, lL_ BY THIS NOTICE. Failure to provide notification to these agencies may render'.,- liable under Fed, \I)\\GEREDSPECIES" Wildlife Services that rare.::: " VOflFY HO'1 H AGENCIES \RING. IF THESE AGE "ROCEED TO CLEAR V '., penalties_ National City Municipal Code 9. 1_2.l( In Public Nuisance Ile, 1, r,.:--1n General Any of the following conditions are hereby declared to constitute a public nuisance • \t A. When the Fire Chief or hisihcr designee determines that there es -r c..:-.- �;. Iding or on any prep--, - - - - - . .;.irdou, or explosive material -- dangerous accumulations of rubbish; or unnecessary accumulations of t,-:•i, p.,, er s...- shavings, or any which are sn i Wat;J life or property: or finds obstructions to or on fire escapes- stair,. pa„acew.it s. J, ,,r . r ., uiJows that reason::h.. or the egress of the occupants of such building of premise,: nr trod, th:a the elleciise:: --- ,,t any exit door. ann. that any provision of the Uniform Fire Code is being s iolateJ B. When the Fire Chief or his:her designee deems am :himnct. smokestack. sl„s.. . ten. incinerator, furnace - : - appurtenance thereto. or anything regulated under a nationallt recognized standard in or .:p,-n any building, structure .- Fire Code, to be defective or unsafe so as to create a hazard. C. When the Fire Chief or his/her designee finds any condition which in his/her) dolLnt increases or may came an uicreo-_ greater degree that customarily recognized as normal by persons in the public service regularlt engaged in preventing. suppressing ,,r - - which rimy obstruct. delay, hinder or interfere with the operations of the fire department or the egress of occupants in the event of tire. National City Municipal Code 9.12.020 Public Nuisance Declared--'\ eeds and Other Flammable !Materials All weeds, growing or located upon streets, sidewalks or private property are hereby declared to be a public nuisance. For the purposes of this chaptert,.... the following: A. B- C. D E Weeds which hear seeds of a downy or wing% nature. Sagebrush, chaparral_ and am other brush or weeds which attain such large growth as to become. when dry. a fire menace to adjacent imps-,<... Weeds which are otherwise noxious or dangerous_ Poison oak and poison ivs when the conditions 01 growth are such as to constitute a menace the the public health. Dry grass, stubble, brush. litter. or other flammable material which endangers the public safety by creating a fire hazard in a portion ofthe o .. which has been zoned for single and multiple residence purposes. -.nense .iron it iude National City Municipal (ode 1.36.010 Public Nuisance Defined "Public Nuisance" means any condition defined or declared to he a public nuisance in any section of this code. and/or and condition caused. nta,rt.permitted to exist which constitutes a threat to the public's health, safety and welfare or which significantly obstructs. injures or interferes with the reasonable .-::r;; u,, of property in a neighborhood. community or to any considerable number of persons. A public nuisance also has the same meaning as set forth in California Cis d •de section 3479. National City Municipal Code 1.36.060 .abatement-- anneal-- Hearing Within ten (10) days from the date of posting, mailing or personal service of the required notice. the owner or person occupying or controlling such l01 or premises affected may appeal to the City Council. Such appeal shall be in writing and shall he tiled with the City Clerk. If you should have any questions, please feel free to call this number: 1-866-779-3774 Si usted tienealguna pregunta, por favor (lame al numero: 1-866-779-3774 Sa anumang katanungan, tumawag lang po sa numerong ito: I-866-779-3774 Sincerely yours in public safety, **You have the right to appeal this matter to the City Council within ten (10) days of the receipt of this notice. 1-866-779-3774 ext. 311 or http://lireprevention.net The appeal shall be in writing and filed with the City Clerk. (NCMC 1.36.050) ***Fire Prevention Services- Inc- is under contract with the City of National City. Fire Prevention Services*** rev. 0327/06, 0424/06, 0621 /06 S Postal $ tCE.RTioIFIEAI D ML,„ RECEIPT o.. ft oo,PA. No insurance Covengto Provkhk0 • Pror inkonatton Atilt our wybotttattromostmotbror ?' 0 0 , co r- *-1 r7.7 558 153 19 00 Vargas Living Trust 550 I St Chula Vista CA NATIONAL CITY FIRE DEPT. 1243 National City Boulevard NATIONAL CITY. CA 91950-4596 Vargas 1_,R.ing Trust 550 1 St Date: 411 Chula Vista, CA 91910 11 11 1,,,,trrmft NC 91910 7010 1670 0000 4.4269940 /2 of Public Nuisance: 3035 PaltnerStNattunal City 91950 4hAtymyht• PleaMehl^ the entire nrhnertv, of MI wreck. (1 191rv$4'-:114 COii RAY * Parcel Nur ber 558 153 19 110, TURN brn_ 924, Da 1 oo 0-5/20/11 RETURN TO SENDER UNCLAIMED UNABLE TO FORWARO DC: 9191304-S9E9Q *0404-00107-1D-42 hrithtliad STATC-5 POSTAI- SVPVIrf 1 000 POSItiGE PAID EL CH..04.1 9ZD2p PR 13. 11 AMOUNT $5•51 9,9,0 0.81675_0 CITE i.•I+, NATIONAL CITY FIRE DEPARTMENT 333 E. 16th St.: NATIONAL CITY, CA. 91950-4596 WORK ORDER AUTHORIZATION Authorization = 2969 Owner: Vargas Living Trust Address: 5501 St Chula Vista, CA 91910 Parcel N558 153 19 00 Job location: ,0 35 Palmer \ationa 1 (it' Q1950 r-_�y f 1 I Authorized 04- . `ign tr e.---_ ate: WHEN SIGNED THIS DOCUMEN'IkALLOWS RI HT OF PASSAGE ONTO PRIVATE PROPERTI FOR THE PURPOSE OF FIRE VIOIATFOti-I FBLIC NUISANCE REDUCTION OR RE M1O1 1I METHOD OF CLEARING Entire Parcel Fire Break Iland Cutting: -I 7,rj0 sq. It. Removal: cu. yds. Tractor Mowing: sq. ft. Discing: sq. ft. CREW INFORMATION Crew Date Type: Type: Type: Type: Notes: Please clear the entire property of all weeds, dead vegetation, trash. debris and arundo. All piles of dead vegetation and debris must be removed from the propertv. (Please maintain am and all grasses below 3 inches year round) 14 SAM 0ohi 4SSISSOk`IflI BOO., SSi 11 11130, 0 \32,' 34 Q1 e 0 (41 cr MAP 2389-RANCHO HILLS UNI1 MAP 166 -RHO DE LA NAC,ION Pop 558-i5 E9 CH aSI OLKOLP ,fito 2DS3 ,af'sVa, 70 zap? Work•&pgyitms ar,d monofwork Qn , C11 3-0 4 rQ Rqrroyll/ c.4 YO9 Fire Prevention Services, Inc. P.O. Box 1720 : El Cajon, CA 92022-1720 (619) 401-1863 : fax (619) 445-6336 http://fireprevention.net 6/13/2011 Vargas Living Trust 550 1 St Chula Vista, CA 91910 Parcel # 558 153 19 00 Location: 3035 Palmer St National City 91950 Dear Vargas Living Trust, This letter is to inform you that the Public Nuisance on the above referenced property was abated pursuant to a prior Notice to Abate and order of the City of National City. Fire Prevention Services was contracted by the City of National City to help reduce Public Nuisances and potential fire violations thus improving the safety of its citizens. The abatement work on your property was performed as mandated by The National City Municipal Code Chapter 1.36. The charges thus far total $1,325.00. You will incur no further costs if this amount is paid within fifteen (15) days of the date of this notice. Failure to pay this bill may result in the filing of an abatement lien upon your property. Please make your check payable to Fire Prevention Services and include the Parcel # 558 153 19 00 on the check. If you have any questions please call us direct at 619-401-1863. Sincerely, Fire Prevention Services, Inc. rev.05/I9'06 r� � NATIONAL CITY SCHEDULE OF FEES ��„(}l Tractor Mowing quantity sub total A. per parcel, sized 1 to 7,500 square feet $250.00 B. per parcel, sized 7,501 to 15,000 square feet $325.00 C. per parcel, sized 15,001 square feet to 30,000 square feet $400.00 D. per parcel, sized 30,001 square feet to one acre $450.00 E. per square foot over one acre $00.02 sq. ft. Hand Labor A. per square foot of area abated Dozer Operation A. hourly rate R. move -on fee $0.10 $150.00 $150.00 Debris Remediation (includes chipping, grinding, and/or shredding) A. per cubic yard of material prior to chipping, and or compacting $38.00 x B. dump fees (reimbursement of cost) Administrative Fee (failure to comply by deadline of notice) A. per parcel Attorney Services A. per parcel, per hour Assessment Fees (includes preparing reports, attending hearings, etc.) A. cost confirmation fee, per parcel Miscellaneous Fees Per Parcel A. B. C. D. E. F. G. H. special inspection fee abatement lien Interest on lien (apr) release of abatement lien public notary file duplication fee unscheduled Labor per man hour unscheduled fees FILE # 2969 APN # 558-153-19-00 9750 sq. ft. 975.00 $350.00 1 $200.00 $275.00 $50.00 $50.00 10% $50.00 $20.00 $50.00 $50.00 (reimbursement of cost) TOTAL $ 1325.00 cu.yds = 350.00 Fire Prevention Services, Inc. P.O. Box 1720 : El Cajon, CA 92022-1720 (866) 779-3774 : fax (619) 445-6336 http://fireprevention.net Final Bill 7/5/201 l Vargas Living Trust 550 I St Chula Vista, CA 91910 Ref: Parcel # 558 153 19 00 Dear Vargas Living Trust, This is a reminder of the letter we sent you on 6/13/2011 and we have not received payment in the amount of $1,325.00 If we do not receive payment within 10 days we will be required to seek appropriate action to collect these monies. This action may include filing an abatement lien on your property and forwarding this bill to our collection agency. Under state and local law, costs for such action will be added to your total amount. Please tender a check to us immediately to avoid any further action. Make your check payable to Fire Prevention Services, Inc., and include the Parcel # 558 153 19 00 on the check. Should you need to discuss this matter you may contact us at (866) 779-3774. Sincerely, Fire Prevention Services, Inc. rev.05/ 19/06 RECORDING REQUESTED BY Fire Prevention Services, Inc. PO Box 2012 Alpine, CA 91903-2012 (619) 562-1058 fax (619) 445-6336 AND WHEN RECORDED MAIL TO Fire Prevention Services, Inc. PO Box 2012 Alpine, CA 91903-2012 !O JP kfp D O C ## 2011-0299279 rIIII I1IIIIIIIIIIIIII II II I I1 IIII I I II!I JUN 13, 2011 1:23 PM OFFICIAL RECORDS SAN DIEGO COUNTY RECORDER'S OFFICE Ernest J. Dronenburg, Jr., COUNTY RECORDER FEES: 0.00 PAGES• 1 IIIIII IIIN IIIII II III IIIII IIIII IIIII IIIII IIIII IIIII IIII! IIIII IIf II Iill IIIN IIII IIII NOTICE OF ABATEMENT TO THE CURRENT OWNER OF RECORD AND ANY FUTURE OWNERS/PURCHASERS OF TILE HEREIN DESCRIBED PROPERTY WHEREAS it was determined that a violation of Chapter 1.36 of the National City Municipal Code did exist, and WHEREAS such violation was ordered abated on 5/24/2011, and WHEREAS representatives of the National City Fire Department abated the violation(s) on 6i 10/201 1, and WHEREAS the charge for such abatement amounted to $ I.395.00; THEREFORE be it known that an abatement obligation exists on the property regardless of owner until paid. The current owner of the property is Vargas Living Trust at 550 1 St, Chula Vista, CA 91910 described as follows: APN # 558 153 19 00 ADDRESS: 3035 Palmer St National City 91950 LEGAL DESCRIPTION: Por Lot II This abatement obligation shall attach to the property, not the owner. and after confirmation by the City Council shall become a special assessment on the property tax bill. If not paid pursuant to State Law and State Tax Lien Law, the property may be sold to satisfy that obligation. The amount of such claim shall be $1,395.00 plus interest and other costs which may hereafter become due. This filing does not preclude the filing of legal action for collection. Should such actions be required or determined to be appropriate, reasonable legal fees will be incurred and added to said obligation. _ r DATED: June 13, 2011 State of California ) SS. County of San Diego BY: Ken Osborn, Fire Prevention Services, Inc., Designee for National City Fire Department Certificate Of Acknowledgement On June 13, 2011 before me, Michelle D. Higgins, Notary Public, personally appeared Ken Osborn, 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. WITNESStrr/hand and official sea{. /r LE .1114C1NS COMM. *1900612 Notary Public - California p San Diego County Comm. EK,ues Au,. 21, 2014 (Seal) it CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: June 19, 2012 AGENDA ITEM NO.13 'EM TITLE: Resolution of the City Council of the City of National City approving a compensation plan for members of the Executive and Management groups to include: a cost of living adjustment of four percent; an adjustment in the City's contribution to employee health care to $1.200; the addition of a two percent bilingual pay differential for eligible employees; authorizing the City Manager to grant up to an additional four percent merit increase; an upward adjustment in the Executive and Management salary bands; and the addition of a new Executive classification titled Director of Administrative Services. PREPARED BY: Stacey Stevenson DEPARTMENT: PHONE: 336-4308 APPROVED EXPLANATION: Please refer to attached staff report. FINANCIAL STATEMENT: APPROVED: tFinance ACCOUNT NO. APPROVED: MIS The fiscal impact is projected to be $325,070.02, the cost of which will be paid out of e adopted budgets of each employee's funding department/funding source. ENVIRONMENTAL REVIEW: ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Approve the resolution BOARD / COMMISSION RECOMMENDATION: On May 10, 2012, the City of National City Civil Service Commission unanimously approved the creation of the Executive level Director of Administrative Services. ATTACHMENTS: 'solution 3Maff Report Civil Service Commission Staff Report: Creation of New Classification — Director of Administrative Services City Council Staff Report May 19, 2012 ITEM Resolution of the City Council of the City of National City approving a compensation plan for members of the Executive and Management groups to include: a cost of living adjustment of four percent; an adjustment in the City's contribution to employee health care to $1,200; the addition of a two percent bilingual pay differential for eligible employees; authorizing the City Manager to grant up to an additional four percent merit increase; an upward adjustment in the Executive and Management salary bands; and the addition of a new Executive classification titled Director of Administrative Services. BACKGROUND The City of National City workforce is comprised of six primary employee work groups: Executive, Management, Confidential, Municipal, Public Safety Fire and Public Safety Police. Municipal and Public Safety are formally recognized collective bargaining groups. As such, the wages, hours, terms and conditions of employment for employees represented by these three groups are negotiated through collective bargaining and governed by collective bargaining agreements commonly referred to as Memoranda of Understanding. The Confidential employee group is an informal employee association that has been granted limited authority to negotiate wages, hours, terms and conditions of employment. The authority to negotiate with all three groups is delegated to the City Manager and her negotiating team by the City Council. The Executive and Management employee groups do not negotiate wages, hours, terms and conditions of employment. Instead such wages, hours, terms and conditions of employment are determined at the discretion of the City Council and the City Manager, in compliance with any applicable State and Federal labor laws. Through collective bargaining, over the past eleven years, employees represented by National City formal and informal employee associations have negotiated both concessions, such as employee contributions to the pension fund, and unpaid work furloughs; as well as modest enhancements to wages and benefits, based on the cost of living. Through all such negotiations, team members of both sides of the negotiation table recognized the need to further the goal of fiscal sustainability for the City. During that same time period, Executive and Management employee groups have also picked up employee contributions to the pension fund while maintaining a status quo (flat) benefits package and a relatively flat salary package. All groups have been reduced through managed attrition. Page 2 Staff Report — Executive and Management Compensation Plan June 19, 2012 The purpose of this report is to review the compensation package established for the Executive and Management employee groups, focusing on data. Based on the information contained herein, the report further seeks the authority to adjust said package. For your consideration is a review of current and historic data related to compensation and benefits for members of the Executive and Management employee groups. As background to the numeric data provided herein, brief narrative sections are provided for context. For the remainder of this report, the term Management will be used to denote the collective Executive and Management groups. DISCUSSION As referenced above, one of the avenues to fiscal sustainability for National City has been in the form of employee concessions. The City Manager's pledge to have Management employees lead by example has been manifested through: • One salary increase in a ten year period • An employee contribution to the pension fund (PERS) of 3% for Executives and 2% for Management in 2009 • A full 8% employee contribution to PERS for Executives and Management in 2011 (8% represents the full employee contribution required by PERS) • No increase in the City's contribution to health care coverage since 2002 • No increase in auto allowance since 2002 • Suspension of professional training and memberships since 2008 • Addition of vacation leave accrual cap for Executives effective January, 2012 • No bilingual pay (except the Police Department) Compensation A compensation history for members of the Executive and Management groups for the time period 2002 to present (as shown in the table below) demonstrates the adherence to that pledge. In that span of time, the two groups under discussion received two salary increases. In comparing the number of increases granted to Management employees verses other employee groups, the following was found: Employee Group Number of Increases (2002 to present) Executive & Management 2 Confidential 8 (an additional increase is scheduled for July, 2012) FFA 10 (an additional increase is scheduled for July, 2013) MEA 8 (an additional increase is scheduled for July, 2012) POA 14 (additional salary surveys to be conducted in August, 2012 and 2013)* *Salaries are based on local market Page 3 Staff Report — Executive and Management Compensation Plan June 19, 2012 Attached tables provide detailed data by group (Attachments 1 and 2). As a result of the above, Executive and Management employees saw a reduction in take home pay when they reached the full employee eight percent (8%) contribution to retirement July 1, 2011. In fiscal year 2000, the City Council re-established the Managerial Compensation Plan for Executive and Management employees. The Plan calls for executive and management positions to be surveyed annually in order to update the City's salary bands and benefits to the county- wide average based on local cities. The last known record of such a survey and such an adjustment is 2002. In conjunction with this report, the current executive level positions were benchmarked against the other local cities, comparing actual salaries with the following findings: Position NC Monthly Salary % Below Average w/ National City % Below Average w/o National City City Clerk $7,658 25.25% 26.73% City Librarian $9,050 21.39% 24.45% City Engineer $10,369 13.63% 18.17% Director of Emergency Svcs $10,413 28.43% 30.46% Human Resources Director $10,106 20.59% 22.87% Police Chief $12,273 17.89% 19.87% Public Works Director $9,636 29.07% 31.49% CDC Executive Director $11,288 6.71% 7.27% NOTES: 1. The CDC Executive Director was benchmarked against both hybrid redevelopment directors (with responsibility for Redevelopment as well as other areas) and pure Redevelopment Director positions, respectively 2. The Director of Emergency Services was benchmarked against Fire Chiefs While cities have historically benchmarked against other cities, recently comparisons have been made between cities and other relevant local markets such as water and school districts. In comparing the executive level staff to the local water district, the Sweetwater Authority over a four year period, the following was found: Salary Increases Year City of National City Sweetwater Authority 2008 n/a 2.2% COLA 2009 Between 3% and 6% COLA (average of 5%) 3.3% COLA 2010 n/a 2.0% COLA 2011 n/a 2.0% COLA 2012 under discussion 3.3% COLA Page 4 Staff Report — Executive and Management Compensation Plan June 19, 2012 Health care Under the current compensation plans, the City contributes towards the cost of medical and dental coverage for employees covered by one of the City's plans. The amount contributed to an individual employee is dependent on the employee group to which he/she is a member. Members of the Management group receive a flat dollar contribution. Members of the Confidential, FFA, MEA and POA (represented) employee groups receive a percentage of the cost of the lowest priced medical and dental plans. As such, every time the premiums increase, the City's contributions increase for those groups. Current City Contributions to Health Care by Grou Group City Contribution Executive $750 Management $625 Confidential Employee Only: $602.11 Employee +1: $602.11 Employee +Fam: $1,029.81 Employee Only: $466.86 Represented Employee +1: $755.39 Employee +Fam: $1,056.11 Benefit Year Increase in City's Contribution Confidential Management Represented* Yes 2002 Yes Yes 2003 Yes No Yes 2004 Yes No No 2005 Yes No No 2006 No No Yes 2007 No No Yes 2008 No No Yes 2009 No No No 2010 No No Yes 2011 No No Yes 2012 Yes No Yes *Represented includes FFA, MEA and POA Attached table lists increases by group (Attachment 3). In the eleven (11) benefit years from 2002 through 2012, the City's premiums for medical care (the largest portion of the cost of health care) increased in ten (10) out of eleven (11) times. The one year without a rate increase, 2009, is attributable to unblending the active employees and early retirees that year otherwise; the City would have experienced a rate increase in all eleven years. The contribution given to some employee groups such as Management employees has not Page 5 Staff Report — Executive and Management Compensation Plan June 19, 2012 kept pace with the cost of health care. As such, members of these flat contribution groups are experiencing larger and larger out of pocket expenses, thus reducing total compensation and further reducing take home pay. In consulting with health care providers and the City's employee benefits broker, this upward trend in health care costs is projected to continue over the next decade. For the purposes of budgeting and fiscal sustainability, a flat contribution to health care is certainly an appropriate approach. However, such flat contributions should be revisited periodically for adjustment. At present, the City's benefits program is "upside down" with employees earning higher health care benefits than their supervisors and managers. Bilingual Pay The disparity in the allocation of salary and health care increases is leading to compression issues between management positions and staff. Further adding to the inequity is the bilingual pay benefit. Employees represented by the Confidential, Municipal and Safety groups are eligible to receive bilingual pay: Group Bilingual Benefit Confidential $50 per pay period Municipal $50 per pay period Public Safety - Fire 2% of base salary Public Safety Police 2% of base salary (Sergeants & Lieutenants) 3% of base salary (Police Officers & Senior Officers) Individuals requesting bilingual pay must demonstrate that there is both a need for the skill and fluency in the language. National City is a very diverse community with a significant population of individuals that speak other languages such as Spanish and Tagalog as their primary or sole language. While Management level employees have taken on greater day to day operational responsibilities (due to reductions in staffing), including the need to converse directly with residents, the only two Management level positions currently eligible to receive bilingual pay are the Police Chief and Assistant Police Chief. Organizational Structure In July, 2011, the City Manager began moving the City toward a consolidated organization consisting of five (5) primary departments. Today, those five (5) primary departments are Administrative Services, Community Services, Engineering, Fire and Police. On May 10, 2012, the City Manager requested that the Civil Service Commission create a new position entitled Director of Administrative Services to oversee the Administrative Services Department with responsibility for directing the work of Finance (including Purchasing), Human Resources (including Risk Management) and Management Information Systems. Having reviewed the request, the Commission unanimously approved both the recreation of the Executive level position and its exemption from classified service. The creation of this classification will not result in an increase in employees. Page 6 Staff Report — Executive and Management Compensation Plan June 19, 2012 The salary band established for the position is $67,721 - $142,774 RECOMMENDATION As a result of managed attrition, the number of Management employees has been significantly reduced since 2004. Since 2004, through managed attrition, 22 Management positions have been eliminated, saving the City more than $2.6 million. As discussed above, the compensation plan for Management positions has been held relatively flat, with an actual reduction in take home compensation (resulting from increased pension contributions and increases in out of pocket health care costs). At the same time, members of this group have taken on greater spans of control and increases in work load resulting from the consolidation of work units, divisions and departments necessary to achieve the staffing reductions (through managed attrition) with no reductions in services to the community or productivity. In recognition of: the disparity in compensation history between Management employees and other groups, the disparity between the compensation of Management employees and the local market; and the significant reduction in the number of Management positions, the following recommendation is made: Approve an amendment to the Management compensation plan to include the following: 1. Effective with the first full pay period in July, 2012 a. Authorize the City Manager to grant a four percent (4%) cost of living adjustment to existing Management employees b. Authorize the City Manager to grant an additional base salary increase of up four percent (4%) to Management employees based on merit c. Increase the flat contribution to health care to $1,200 per month for Management employees d. Authorize the addition of a two percent (2%) bilingual pay differential for eligible Management employees 2. Approve the Executive and Management salary schedules, including the upward adjustment of said schedules and the inclusion of the newly created Director of Administrative Services. FISCAL IMPACT The fiscal impact of the above recommendation is projected to be $325,070.02, the cost of which will be paid out of the adopted budgets of each employee's funding department/funding source. Attachments: 1. Compensation History — Executives and Managers 2. Summary of Compensation Adjustments (by employee group) 3. History of City Contribution — Health and Dental Insurance, 2002 — 2012 Page 7 Staff Report — Executive and Management Compensation Plan June 19, 2012 4. Executive Compensation Schedule 5. Management Compensation Schedule 6. Report to Civil Service: Creation of New Classification — Director of Administrative Services Attachment 1 Compensation History Executive and Management Groups 2002 Yes 2003 No 2004 2005 2006 2007 2008 2009 2010 2011 No No No No No Yes No No n/a n/a Salary band increases of 6%. Actual salary increases to individual employees of 3% to 6% 4.6 3.7 3.4 2.3 3.9 0.0 TOTAL CPI 1.3 3.0 29.4 Attaciuucnt 2 N SALARY HISTORY BY GROUP Side by Side January, 2002 4% 2.43% 2% 6.43% Battalion Chief March, 2002 3% July, 2002 8% 8% 3% 5% September, 2002 2% October, 2002 2% January, 2003 4.4% 2% 6.9% Battalion Chief April, 2003 2% July, 2003 3% 3% 2% January, 2004 2% 3.74% 2% 2% 6.24% Battalion Chief July, 2004 3% 3% 2% January, 2005 2% 2% 3% January, 2007 3.4% 4.2% August, 2007 9.69% Lieutenant 5.66% Sergeant 3.77% Corporal & Officer January, 2008 3% 4.80% Battalion Chief 1.94% Lieutenant 17.22% Fire Captain, Fire Engineer 3% 1.10% Sergeant & Deputy Fire Marshal 13.05% Firefighter 4% Corporal & Officer Salary History by Group Side by Side Page 2 August, 2008 2.48% Battalion Chief 0.43% Lieutenant 2.20% Fire Captain & Deputy Fire Marshal ° 1.61% Sergeant 2.47% Fire Engineer 3.40% Corporal & Officer 2.30% Firefighter January, 2009 4% 0.54% Battalion Chief 4% 2.88% Lieutenant 1.52% Fire Captain & Deputy Fire Marshal 2.24% Sergeant 1.35% Fire Engineer 3.34% Corporal & Officer 0.76% Firefighter 4% Animal Control Off July, 2009 5% 5% August, 2009 -0.29% Batt Chief 1.04% Fire Captain & Deputy Fire Marshal 1.17%Fire Engineer 2.85% Firefighter January, 2010 -0.09% Batt Chief 0.71% Fire Captain & Deputy Fire Marshal 0.70%Fire Engineer 0.25% Firefighter August, 2010 1.17% Battalion Chief 0.85% Fire Captain & Deputy Fire Marshal 0.83%Fire Engineer 0.25% Firefighter January, 2012 4.06% ry History by Group Side by Side Page 3 July, 2012 3%�>l: �.,. August, 2012 Market adjustment to be determined July, 2013 2% August, 2013 Market adjustment tobe determined Total 'l 13% 13% 27% . * of M � ;. 27% ^.I / /j . o { ieut runt 39.51% Fire Captain & Deputy Fire Marshal 38.87% Sergeant 39.71% Fire Engineer 42.77% Corporal & Officer 35.43% Firefighter 32.26% Animal Control Officer Attachment 3 History of City Contribution Health Care Premiums 2002 - 2012 Executives: $750.00 City Manager: $850.00 City Attorney: $800.00 $625.00 Eee Only: $318.94 Eee +1: $352.86 Eee +Fam: $382.73 Eee Only: $305.30 Eee +1: S356.60 Eee +Fam: $493.08 Eee Only: $295.00 Eee +I: $356,06 Eee +Fam: $493.08 �1s $450.00 $507.96 Executives: $750.00 City Manager: $850.00 City Attorney: $800.00 $625.00 Eee Only: S320.00 Eee +1: $398.18 Eee +Fam: $516.98 Eee Only: $305.30 E:ee +1: $398.18 Eee +Fam: $551.44 Eee Only: $295.00 Eee +1: $398.18 Eee +Fam: $551.44 $572.78 Executives: $750.00 City Manager: $850.00 City Attorney: $800.00 $625.00 Eee Only: $320.00 Eee +1: 80% of Elected u Coverage Eee +Fam: 80% of Elected Covera_e Eee Only: $305.30 Fee +1: $457.07 Pee +Fam: $634,78 Eee Only: $295.00 Eee +1: $457.07 Eee +Fam: $634.78 $602.11 Executives: $750.00 City Manager: $850.00 City Attorney: $800.00 $625.00 Eee Only: $320.00 Eee +1: 80% of Elected Coverage Eee +Fam: 80% of Elected Cover.:e Eee Only: $305.30 Eee +I : $457.07 Eee +Fam: $634.78 Eee Only: $295.00 Eee +1: $466.58 Eee +Fam: $647.69 ,sr,, $602.11 Executives: $750.00 City Manager: $850.00 City Attorney: $800.00 $625.00 Eee Only: $324.16 Eee +1: 80% of Elected Coverage Eee +Fain: 80% of Elected Coveral e Eee Only: $324.16 Eee +1: $523.26 Eee +Fam: $727.90 Eee Only: $324.16 Eee +1: $523.26 Eee +Fam: $727.90 Page _ History of City Contribution (2002-2012) Health Care Premiums Eee Only: $338.10 Eee +1: $545.57 Eee +Fam: $759.47 $602.11 Executives: $750.00 City Manager: $850.00 $625.00 Eee Only: $338.10 Eee +l : $545.57 Eee +Fam: $759.47 Eee Only: $338.10 Eee +1: $545.57 Eee +Fam: $759.47 $602.11 Executives: $750.00 City Manager: $850.00 $625.00 Eee Only: $387.26 Eee +1: $624.30 Eee +Fam: $870.60 Eee Only: $387.26 Eee +1: $624.30 Eee +Fam: $870.60 Eee Only: $387.26 Eee +1: S624.30 Eee +Fam: $870.60 $602.11 Executives: S750.00 City Manager: $850.00 S625.00 Eee Only: $387.26 Eee +1: $624.30 Eee +Fam: $870.60 Eee Only: $387.26 Eee +1: $624.30 Eee +Fam: $870.60 Eee Only: $387.26 Eee +1: $624.30 Eee +Fam: $870.60 $602.11 Executives: $750.00 City Manager: $850.00 $625.00 Eee Only: $397.28 Eee +1: $640.34 Eee +Fam: $893.31 Eee Only: $397.28 Eee +1: $640.34 Eee +Fam: $893.31 Eee Only: $397.28 Eee +1: $640.34 Eee +Fam: $893.31 $602.11 Executives: $750.00 City Manager: $850.00 City Attorney: $800.00 $625.00 Eee Only: $457.56 Eee +1: $436,80 Eee+Fam: $1,029.81 Eee Only: $457.56 Eee +1: $436.80 Eee+Fam: $1,029.81 Eee Only: $457.56 Eee +1: $436.80 Eee+Fam: $1,029.81 Eee Only: $602.11 Eee+1: $602.11 Eee+Fam: $1,029.81 Executives: $750.00 City Manager: $850.00 City Attorney: $800.00 $625.00 Eee Only: $466.86 Eee+1: $755.39 Eee+Fam: $1,056.11 Eee Only: $457.56 Eee+1: $755.39 Eee+Fam: $1,056.11 Eee Only: $457.56 Eee+1: $755.39 Eee+Fam: $1,056.11 City of National City Human Resources Department EXECUTIVE POSITIONS July 1,2012 Attachment 4 ., yg N`-a"{- Tr, f _ hy i'2 � �� City Manager $13,750 $165,000 City Attorney $16,658.33 $199,900 Assistant City Manager $6,250 - $12,365 $74,997 - $148,381 City Engineer $5,643 - $11,518 $67,721 - $138,213 City Librarian $5,364 - $10,430 $64,363 - $125,158 Community Development Executive Director $7,7a,1 - $12,416 $87,456 - $148,995 Community Services Director $7,288 - $9,716 $87,450 - $116,595 Director of Administrative Services $5,643 - $11,898 $67,721 - $142,774 Director of Building & Safety $5,562 - $9,756 $66,742 - $117,071 Director of Community Development $5,643 - $11,518 $67,721 - $138,213 Director of Emergency Services $5,947 - $12,046 $71,359 - $144,551 Director of Finance $5,643 - $11,346 $67,721 - $136,156 Director of Planning $5,643 - $11,898 $67,721 - $142,774 Director of Public Works $5,643 - $11,518 $67,721 - $138,213 Fire Chief $5,947 - $12,046 $71,359 - $144,551 Human Resources Director $4,862 - $11,365 $58,347 - $136,380 Police Chief $6,541 - $13,629 $78,495 - $163,552 Records Management Officer $5,463 - $7,388 $65,553 - $88,653 Senior Assistant City Attorney $7,433 - $12,341 $89,199 - $148,091 Page 1 Compensation Plan (Executive Positions) Revised 07/0112012 City of National City Human Resources Department Attachment 5 MANAGEMENT POSITIONS July 1, 2012 1) ( i •:i i' €.� �F�€ y e 5 i 1 ~ b,._ t€ x: Is R�. 'i=sry` p g :,i' v Fy, i F j( p i.,s 4S1 C �R0. }]A 1` Asst Director of PW!Engineering $4,594 - $9,791 $55,128 - $117,491 Assistant Police Chief $11,369 - $11,584 $136,422 - $139,011 Battalion Chief $5,317 - $9,770 $63,804 - $117,239 Building Official $7,796 - $9,581 $93,551 - $114,972 Community Development Manager $7,288 - $9,134 $87,450 - $109,613 Community Development Specialist 11I $4,466 - $8,089 $53,589 - $97,063 Deputy City Attorney $6,841 - $9,121 $82,093 - $109,458 Deputy Director of Human Resources $7,288 - $9,134 $87,450 - $109,613 Equipment Maint Supervisor $3,230 - $7,774 $38,758 - $93,285 Facilities Maint Supervisor $3,230 - $6,608 $38,758 - $79,293 Financial Services Officer $4,174 - $9,077 $50,091 - $108,928 Housing Programs Manager $4,256 - $8,491 $51,071 - $101,890 Management Analyst I $3,117 - $5,605 $37,401 - $67,260 Management Analyst II $3,542 - $6,370 $42,508 - $76,438 Management Analyst III $3,964 - $7,135 $47,573 - $85,617 Mgmt Information Systems Manager $4,279 - $9,305 $51,351 - $111,656 Neighborhood Council Coordinator $3,964 - $7,135 $47,573 - $85,617 Neighborhood Services Manager $3,230 - $7,774 $38,758 - $93,285 Nutrition Program Manager $3,230 - $7,648 $38,758 - $91,774 Paris Superintendent $3,230 - $7,648 $38,758 - $91,774 PIO/Mgmt Analyst III $3,964 - $7,135 $47,573 - $85,617 Police Captain $5,410 - $10,903 $64,923 - $130,839 1 Compensation Plan (Mgmt Positions) Revised 07/01/2012 City of National City Human Resources Department Attachment 5 MANAGEMENT POSITIONS July 1, 2012 Police Support Services Manager $3,964 - $7,135 $47,573 - $85,617 Principal Civil Engineer $7,796 - $9,581 $93,551 - $114,972 Principal Librarian $3,766 - $7,823 $45,194 - $93,872 Principal Planner $4,466 - $8,089 $53,589 - $97,063 Project Officer $4,466 - $8,089 $53,589 - $97,063 Purchasing Agent $4,256 - $8,491 $51,071 - $101,890 Recreation Superintendent $3,230 - $7,648 $38,758 - $91,774 Risk Manager $4,174 - $9,074 $50,091 - $108,886 Senior Accountant $3,265 - $6,808 $39,178 - $81,699 Special Assistant to the Mayor $3,542 - $6,370 $42,508 - $76,438 Street Maintenance Supervisor $3,230 - $6,608 $38,758 - $79,293 St Maint & Wastewater Superintendent $2,936 - $7,648 $35,234 - $91,774 Traffic Engineer $6,056 - $9,305 $72,674 - $111,656 Wastewater Supervisor $3,230 - $6,608 $38,758 - $79,293 Compensation Plan (Mgmt Positions) 2 Revised 07/01 /2012 7B.1 Attachment 6 \ CITY OF NATIONAL CITY MEMORANDUM DATE: May 10, 2012 TO: City of National City Civil Service Commission FROM: Leslie Deese, City Manager SUBJECT: Creation of New Classification — Director of Administrative Services For the past five years, in an effort to increase organizational efficiency and in response to the State-wide economic downturn, the City of National City has been engaged in continuous process improvement. Efforts have included such elements as increased use of automation, an employee suggestion program and managed attrition. In July, 2011, the Office of the City Manager entereda new phase of strategic organizational realignment, transitioning the City's working elements into five functional areas: Administrative Services, Development Services, Community Services, Fire and Police. As designed, the Administrative Services area included Finance, Human Resources, Housing and Grants and Management Information Systems. Within this structure, Purchasing is component of Finance and Risk Management is a component of Human Resources. Responsibility for directing the activities of Administrative Services was assigned to the Assistant City Manager. The Assistant City Manager position has been vacant since January, 2012. In March, 2012, responsibility for directing the activities of the Administrative Services Director shifted to the Human Resources Director (with the exception of Housing and Grants). The increase in functional responsibility is beyond the scope of Human Resources Director. Further, in reviewing the City's classification plan, there is no existing classification that encompasses this full scope of responsibility. The extent of the change in scope of responsibility is such that the creation of a new classification is warranted. Looking County -wide, the classification most consistent with the current duties and responsibilities of the position is that of Director of Administrative Services, a classification currently not allocated to the City's classification plan. The proposed classification and associated class specification are consistent with the current expectations of the position responsible for heading Administrative Services. Further, an at -will designation is appropriate for this classification, consistent with other executive level positions within the City. Designation as an at -will classification exempts the position from classified service and Civil Service. 78,2 May 10, 2012 Creation of New Classification — Director of Administrative Services Page 2 Based on the above, staff recommends the following: a. Create a new classification titled Director of Administrative Services. b. Exempt the Director of Administrative Services from Classified Service LESLIE DEESE RESOLUTION NO. 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING A COMPENSATION PLAN FOR MEMBERS OF THE EXECUTIVE AND MANAGEMENT GROUPS TO INCLUDE: A COST OF LIVING ADJUSTMENT OF FOUR PERCENT; AN ADJUSTMENT IN THE CITY'S CONTRIBUTION TO EMPLOYEE HEALTH CARE TO $1,200; THE ADDITION OF A TWO PERCENT BILINGUAL PAY DIFFERENTIAL FOR ELIGIBLE EMPLOYEES; AUTHORIZING THE CITY MANAGER TO GRANT UP TO AN ADDITIONAL FOUR PERCENT MERIT INCREASE; AN UPWARD ADJUSTMENT IN THE EXECUTIVE AND MANAGEMENT SALARY BANDS; AND THE ADDITION OF A NEW EXECUTIVE CLASSIFICATION TITLED ADMINISTRATIVE SERVICES WHEREAS, as a result of managed attrition, 22 Executive and Management (collectively referred to as "Management" herein) positions have been eliminated since 2004, saving the City more than $2.6 million; and WHEREAS, the compensation plan for Management positions has been held relatively flat, with an actual reduction in take home compensation due to increased pension contributions and increases in out-of-pocket health care costs; and WHEREAS, at the same time, members of this employee group have taken on greater spans of control and increases in work load resulting from the consolidation of work units, divisions and departments necessary to achieve the staffing reductions with no reductions in services to the community or productivity; and WHEREAS, on May 10, 2012, at the City Manager's requested, the Civil Service Commission created a new position entitled Director of Administrative Services to oversee the Administrative Services Department with responsibility for directing and overseeing the Finance Department (including Purchasing), Human Resources (including Risk Management) and Management Information Services; and WHEREAS, an amendment to the Management compensation plan is proposed that would include the following: 1. Effective with the first full pay period in July, 2012: a. Authorizing the City Manager to grant a four percent (4%) cost of living adjustment to existing Management employees; b. Authorize the City Manager to grant an additional base salary increase of up to four percent (4%) to Management employees based on merit; c. Increase the flat contribution to health care to $1,200 per month for Management employees; and d. Authorize the addition of a two percent (2%) bilingual pay differential for eligible Management employees. 2. Approve the Executive and Management salary schedules, including the upward adjustment of said schedules and the inclusion of the newly created Director of Administrative Services. Resolution No. 2012 — Page Two NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby approves an amendment to the Management compensation plan to include a compensation plan for members of the Executive and Management groups to include: a cost of living adjustment of four percent (4%); and adjustment in the City's contribution to employee health care to $1,200; the addition of a two percent bilingual pay differential for eligible employees; authorizing the City Manager to grant up to an additional four percent (4%) merit increase; and upward adjustment in the Executive and Management salary bands; and the addition of a new Executive classification titled Director of Administrative Services. PASSED and ADOPTED this 19th day of June, 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: June 19, 2012 AGENDA ITEM NO. 24 M TITLE: Resolution of the City Council of the City of National City authorizing the issuance of its 2012 General Obligation Refunding Bonds, authorizing and directing the execution of a Paying Agent Agreement and certain other related documents, and authorizing actions related thereto. PREPARED BY: Leslie Deese, City Manager- 619-336-4240 DEPARTMENT: City Manager/Finance PHONE: Stacey Stevenson, Human Resource Director - APPROVED 619-336-4308 EXPLANATION: See Attached FINANCIAL STATEMENT: N/A ACCOUNT NO. ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Adopt the Resolution BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: I) Resolution ?) Staff Report 3) Market Update 4) Paying Agent Agreement 5) Irrevocable Refunding Instructions for National City 6) 2012 General Obligation Refunding Bonds 7) Bond Purchase Agreement RESOLUTION NO. 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE ISSUANCE OF ITS 2012 GENERAL OBLIGATION REFUNDING BONDS, AUTHORIZING AND DIRECTING THE EXECUTION OF A PAYING AGENT AGREEMENT AND CERTAIN OTHER RELATED DOCUMENTS, AND AUTHORIZING ACTIONS RELATED THERETO WHEREAS, an election was duly and regularly held in the City on March 5, 2002, for the purpose of submitting to the qualified electors of National City the question of whether bonds should be issued in the principal not to exceed amount of $6,000,000 to finance the acquisition, construction and completion of a public library; and WHEREAS, more than two-thirds of the votes cast at said election were in favor of the issuance of said bonds; and WHEREAS, pursuant to the authorization received at such election, the City of National City ("City") has previously issued its $6,000,000 original principal amount of General Obligation Bonds, Election of 2002, Series A (the "Prior Bonds"); and WHEREAS, the City now desires to issue its 2012 General Obligation Refunding Bonds (the "Bonds") to refund the Prior Bonds, in order to achieve debt service savings and lower the property tax override levied on the property owners of the City to pay debt service on the Prior Bonds; and WHEREAS, to provide for development of the most favorable debt structure for the City and to ensure the most favorable reception in the market place for the Bonds, the City has determined to sell the Bonds by negotiated sale pursuant to the terms of a Bond Purchase Agreement (the "Bond Purchase Agreement") by and between the City and Estrada Hinojosa & Co., Inc., as underwriter (the "Underwriter"); and WHEREAS, the City Council of National City has duly considered such transactions and desires at this time to approve said transactions and the documents related thereto. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City as follows: Section 1. Findings and Determinations. Pursuant to Section 53552 of the Refunding Law (hereinafter defined), the City Council of the City of National City hereby finds and determines that the prudent management of the fiscal affairs of the City requires that the Bonds be issued under the authority of Articles 9 and 11 (commencing with Section 53550) of Chapter 3 of Division 2 of Title 5 of the Government Code of the`State of California (the "Refunding Law"), the Paying Agent Agreement (as defined below), and this Resolution. The total net interest cost to maturity on the Bonds plus the principal amount of the Bonds shall not exceed the total net interest cost to maturity on the Prior Bonds plus the principal amount of the Prior Bonds. Section 2. Approval of Paying Agent Agreement. The proposed form of the Paying Agent Agreement by and between the City of National City and Union Bank, N.A. (the "Paying Agent"), which is on file with the City Clerk (the "Paying Agent Agreement"), is hereby approved, and the Mayor, the City Manager and the Finance Manager of the City (collectively, the "Authorized Officers"), each acting alone, are hereby authorized and directed, for and in the name and on Resolution No. 2012 — June 5, 2012 Page Two behalf of the City, to execute and deliver the Paying Agent Agreement in substantially said form, with said additions thereto (including the insertion of the maturity dates, principal amounts, and interest rates of the Bonds), and changes therein as the Authorized Officers, each acting alone, may approve, such approval to be conclusively evidenced by the execution and delivery thereof. Section 3. Approval of Form of Bonds. The form of Bonds set forth in the form of the Paying Agent Agreement is hereby approved, and the Authorized Officers of the City, each acting alone, the City Treasurer and the City Clerk, are hereby authorized and directed to execute the Bonds in the name and on behalf of the City and under its seal, and to cause the delivery thereof as provided for below. Section 4. Sale and Issuance of Bonds. The City Council of the City of National City hereby approves the sale of the Bonds by negotiation pursuant to the Bond Purchase Agreement in substantially the form on file with the City Clerk together with any changes therein or additions thereto approved by an Authorized Officer, whose execution thereof shall be conclusive evidence of approval to any such changes or additions. The Bond Purchase Agreement shall be executed in the name and on behalf of the City of National City by an Authorized Officer, who is hereby authorized and directed to execute and deliver said form of Bond Purchase Agreement on behalf of the City. Notwithstanding anything herein to the contrary, the Bonds shall be issued only if such issuance results in present value debt service savings of not less than 3.5%, and the Underwriter's discount or fee (excluding original issue discount, if any) for the Bonds shall not exceed 1% of the principal amount of the Bonds. Pursuant to Section 53583(c)(1) of the California Government Code , the Bonds shall be sold on a negotiated basis and at a price, above or below par, as the Authorized Officer executing the Bond Purchase Agreement determines. In order to achieve the debt service savings specified in the preceding paragraph, the City Manager or the Finance Manager of the City may determine to refund less than all of the Prior Bonds. Section 5. Approval of Preliminary and Final Official Statement. The form of the Preliminary Official Statement, as presented to this meeting is hereby approved. The Authorized Officers are hereby authorized and directed, for and on behalf of the City, to execute all certificates necessary to deem final the Preliminary Official Statement as of its date, with the exception of certain final pricing, and related information. The Authorized Officers are hereby authorized and directed, for and on behalf of the City, to execute and deliver the final Official Statement. The use and distribution of said Preliminary Official Statement and use and distribution of the final Official Statement in connection with the sale of the Bonds is hereby ratified and approved. Section 6. Bond Insurance. The Authorized Officers, each acting alone, are hereby authorized to take any and all action that they deem necessary to qualify the bonds for municipal bond insurance. Section 7. Delegation of Authority to Authorized Officer. The Authorized Officers are hereby authorized and directed to execute, sign, and deliver any and all approvals, certificates, statements, requests, requisitions, and orders of the City in connection with the sale and issuance of the Bonds, the purchase of the Bonds and the other transactions described herein. Resolution No. 2012 — June 5, 2012 Page Three The Authorized Officers may authorize such other officers of the City as they deem appropriate to undertake any of the actions that he or she is authorized or directed to undertake pursuant hereto. Section 8. General Authority. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things, and to execute and deliver any and all documents that they may deem necessary or advisable in order to consummate the transactions described herein or to otherwise effectuate the purpose of this Resolution, including refunding instructions relating to the defeasance and redemption of the Prior Bonds and preparing, or causing to be prepared, and executing all appropriate disclosure documents relating to the Bonds and agreements necessary to comply with the disclosure requirements of Rule 15c2-12, as amended, of the Securities and Exchange Commission. Any such actions previously taken by such officers are hereby ratified and confirmed. Section 9. Severability. If any section, paragraph, or provision of this Resolution shall be held to be invalid or unenforceable for any reason, such invalidity or unenforceability shall not affect any remaining provisions hereof. Section 11. Effective Date. This resolution shall take effect from and after the date of its passage and adoption. PASSED and ADOPTED this 5th day of June, 2012. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney AUTHORIZING THE ISSUANCE OF ITS 2012 GENERAL OBLIGATION REFUNDING BONDS, AUTHORIZING AND DIRECTING THE EXECUTION OF A PAYING AGENT AGREEMENT AND CERTAIN OTHER RELATED DOCUMENTS, AND AUTHORIZING ACTIONS RELATED THERETO SUMMARY At the May 1, 2012 City Council meeting, staff presented, and the Council approved, a proposal to move forward with the refinancing of the City's 2002 General Obligation Bonds. As discussed during the meeting, staff informed the Council of its intent to return to the Council and present the necessary documents to refinance the existing debt for taxpayer savings. Proceeds for the refinancing will be allocated towards a reduction in the current property tax assessment. SUMMARY RECOMMENDATION: It is recommended that the City Council approve the attached Resolutions and execute the necessary documents to issue refinance the City's outstanding General Obligation Bonds, Election of 2002, Series A for the purposes of redeeming all bonds, pay transaction costs related and to lower the current tax assessment to property owners within the City of National City. DISCUSSION: The subject bonds were issued pursuant to an Indenture of Trust, dated May 15, 2003 by the City of National City (the Issuer), in order to match State grant funds to fund design and construction of the City's Library located in the City of National City at 1401 National City Boulevard. The bonds are secured by a General Obligation property tax assessment approved by the voters in 2002. Because the bonds were issued with MBIA bond insurance, the Bonds were rated "AAA" by Error! Reference source not found. when investors purchased the bonds. Unfortunately MBIA has been downgraded to "BBB" and as a result the bonds also received a downgrade from Standard & Poor's to "A" on June 5th, 2009. The current rating represents the City underlying rating. Current Market Trends The Municipal market continues to hold at historically low rates. Yields in all maturities have been on average higher less than 2% of the time in the past 11 years. Currently, the 30-year Municipal Market Data (MMD) is at 3.42% (see attached market update). It is important to note that increases in municipal bond supply have begun to affect interest rates. Supply has been heavy with the State of California's $2 billion issuance of General Obligation bonds in March and anticipated issuance of $1.3 billion at the writing of this report. National supply for the next 30 days is expected to be $9.8 billion. As a result, MMD has increased slightly in recent weeks. However, the continued inflows into bond funds have meant that accounts still have cash to invest. Municipal bond funds have experienced inflows in all but two weeks in the last six months. Because of the fluid nature of the bond market, the City must respond to these opportunities in a timely manner to refinance outstanding callable bonds for saving to our tax payers. Refunding Opportunity The City's financial advisor has reviewed the City's outstanding debt and noted the City's 2002A Bonds can be refinanced for savings in today's market. Approximately $4.95 million of the 2002A Bonds are outstanding and callable on August 1, 2012 at 100%. Interest rates range from 3.70% to 5.57%. Additionally, the bonds carry a rating of "A" from Standard & Poor's. Should the City complete the refunding prior to August, savings will appear on the tax rolls starting in FY 2012-13. FISCAL IMPACT: Based on current interest rates, a refunding of the 2002A Bonds would generate overall net present value (NPV) savings of roughly $250,000, or 6% of the refunded par amount of the bonds. Average annual savings to all affected property owners is equal to approximately $20,000, totaling $300,000 in savings over the life of the bonds. The savings is determined by the relationship between the total citywide assessed valuation and the amount of the debt service due on the bonds for that year. Therefore, the parcel savings is based on the parcels percentage value of the total valuation. Properties representing the highest percentages will save the most. Staff is aware Sweetwater Union High School District is considering refinancing of General Obligation debt which could save taxpayers over $14 million. In these times when taxpayers are looking for tax relief it makes sense for all issuers, including the City and School Districts, to take advantage of any refunding opportunities to show taxpayers that they are good custodians of their public trust and dollars. Overall savings to taxpayers per parcel will definitely be higher and more significant with overlapping jurisdictions doing their own refinancings. The cost of financing, often referred to as the cost of issuance, is broken down below. The proposed fees are within the contractual rates for each of the firms included on the finance team. Cost of Issuance Amount Underwriter 34,620 Financial Advisor 25,000 Bond/Disclosure Counsel 36,000 Trustee & Counsel 3,500 Standard & Poor's Rating Fees 10,000 Verification Agent 2,000 Printing of Official Statement 2,000 California Debt Investment Advisory Commission (CDIAC) 750 Miscellaneous 2,500 Documents to Be Approved Approval of the Resolution approving, authorizing and directing execution of certain bond financing documents, authorizing and directing the sale of 2012 General Obligation Refunding Bonds, approving a Preliminary Official Statement, and authorizing and directing certain actions with respect thereto will authorize the execution of the following documents which are not included with the document due to their length, but are available for review in the City Clerks Office: • City Resolution. A Resolution of the City Council of the City of National City approving the issuance of its National City 2012 General Obligation Refunding Bonds. • Irrevocable Refunding Instructions. This document contains the terms and conditions necessary to defease the Series 2002 General Obligation Bonds. • Paying Agent Agreement. This document contains the terms of the Bonds, including payment and redemption provisions, definition and pledge of Tax Revenues to pay the Bonds, Rights and Duties of the Trustee, remedies upon a default in the payment of the Bonds, and final discharge of the Bonds and other related matters. • Preliminary Official Statement. This is the City's document pursuant to which the Bonds will be offered for purchase by the public. This document must contain all facts material to the Bonds and the City (with certain permitted exceptions to be completed in the final Official Statement) and must not omit any such material facts. • Bond Purchase Contract. This document contains the obligation of the underwriter to accept and pay for the Bonds, provided that all of the covenants and representations of the City are met and certain other conditions excusing performance by the underwriter do not exist. May 2012 Market Update ESTRADA * HINOJOSA INVESTMENT BANKERS Dallas • Austin • Chicago • Houston • Miami • New York • Phoenix • San Antonio • San Diego Market Update Negotiated Calendar Week of. May 215t Issue Description Sale Ratings Par Amount ($000) Moody's S&P Fitch New York City General 5/21 $ 800,000 Aa2 AA AA Obligation Bonds City of San Antonio, Texas 5/21 $ 650,000 Aa1 AA AA+ State of Washington 5/21 $ 432,000 Aa2 AA AA Federal Highway Grant Anticipation Revenue (Garvees) San Diego County 5/21 $ 385,000 Aa2 AAA NR Regional Transportation Commission Sales Tax Revenue Bonds 2012 Series A VRA, Virginia 5/21 $ 341,190 AA2 AA NR Infrastructure Revenue Bonds, Series 2012 A Phoenix, AZ General ' 5/21 $ 203,335 Aa1 AAA NR Obligation Refunding Bonds, Series 2012C Houston Independent 5/21 $ 186,455 Aaa AAA NR School District Variable - Rate Limited Tax Bonds, Series 2012 Connecticut Housing 5/21 S 176,995 Aaa AAA NR Finance Authority Housing Mortgage Finance Program Bonds University of Arizona 5/21 $ 155,000 Aa3 AA- NR Refunding Certificates of Participation Arizona Board of Regents 5/21 $ 152,000 Aa1 AAA NR Refunding Certificates of Participation University of Arizona Projects 'Source: Bond Buyer **Source: Municipal Market Data 1 ESTRADA• H[NOJOSA Tax -Exempt and Treasury Spreads: 3 Year History Commentary for the week of May 21st ■ Municipal Markets closed after a week of mixed sessions that provided little market direction. This may be due to the anticipated increase in issues this week. • The current AAA MMD curve was left relatively unchanged throughout last week. • This week of tax-exempt issuance is over $9 billion, which is $3 billion over the 2012 weekly average of $6 billion. ■ Treasuries remained flat despite concerns with Greece and other troubled European sovereigns. MMD to Treasury Ratios AAA MMD to BBB MMD Spreads ¢prLO :Oct 09 hDY-AA'P, vs BBB M1ViDSprea.i 20Y AAA vs BBB M FA DSpiaa- OYAQA vs BBB I MDSpreaa• Octc11Apr-12 Source: Municipal Market Data Thomson Reuters TM3 2 ESTRADA-HiNOIOSA 'AAA' M M D History Since 2000 m7 +&»2l2Zm2 A# m A« mf A? $ k\ A 3 +» i 2 a« m< � f « � a 4 1 > 0 ESTRADA H Nq0 A Bond Buyer Indices vs. 30 Year Treasury: 20 Year History F(P.hua6.94, ..� `I' _ ii ' .Lz .__i �,�_S 7f . 4?,-,P '8.'14 _ _ Y ;�*Y�, ^.. , " uera�e�,: -f 501.,: 9 Y..1 �.a., '�' .em xX'-• 2 . 551 .•., Current s e� .x�4ti75`i�r`:. . �.w ,.2 80 • , r-:. Source: Bond Buyer 4 ESTRADA-H[NOJOSA Disclaimer This document is intended for discussion purposes only and, in conjunction with oral presentations and further negotiations, is subject to the final terms of definitive transaction related written agreements, if appropriate, and is not a commitment to lend money, underwrite or purchase securities or commit capital, nor does it obligate this firm to enter into written agreements. Terms and conditions described herein are an indicative summary which may be amended or replaced by subsequent summaries. This document is intellhded for the exclusive use of the entity identified on the cover page hereof or otherwise identified as the recipient by a member of the firm and may contain information proprietary to Estrada Hinojosa, which by acceptance of this document obligates you to keep confidential the proposed terms for any prospective transaction. 1 Estrada Hinojosa does not provide accounting, tax or legal advice and any discussion of such matters herein should not be relied upon by you asp guarantee or commitment of a specific result should a transaction occur. All numbers and prices discussed herein are preliminary and indicative of market conditions on the date prepares and do not represent bids or offers, and you should determine, without reliance upon us, the economic risks and merit:; as well as the legal and tax consequences of any such transaction, keeping in mind that the results of analyses from any quantitative model which represent potential fi.ture events that may or may not occur, and that may not include every particular material fact related to a proposed] transaction, are by their nature subject to further discussion and examination. © 2012 Estrada Hinojosa & Company, Inc. Member: FINRA & SIPC. All rights reserved. No part of this document may be reproduced in any manner without the written permission of Estrada Hinojosa. ESTRADA• H[NOJOSA Jones Hall Draft 5/21/12 PAYING AGENT AGREEMENT By and Between CITY OF NATIONAL CITY and UNION BANK, N.A., as Paying Agent Dated as of July 1, 2012 Relating to $ City of National City 2012 General Obligation Refunding Bonds /0 TABLE OF CONTENTS ARTICLE I DEFINITIONS; AUTHORITY Section 1.01. Definitions. 2 Section 1.02. Authority for this Agreement. 7 ARTICLE II THE BONDS Section 2.01. Authorization. 8 Section 2.02. Terms of Bonds. 8 Section 2.03. Redemption. 9 Section 2.04. Form of Bonds 10 Section 2.05. Execution of Bonds. 11 Section 2.06. Transfer of Bonds 11 Section 2.07. Exchange of Bonds. 11 Section 2.08. Bond Register. 11 Section 2.09. Temporary Bonds. 12 Section 2.10. Bonds Mutilated, Lost, Destroyed or Stolen 12 Section 2.11. Book -Entry; Limited Obligation of City. 12 Section 2.12. Representation Letter. 13 Section 2.13. Transfers Outside Book -Entry System 13 Section 2.14. Payments and Notices to the Nominee 13 ARTICLE III ISSUANCE OF BONDS; APPLICATION OF BOND PROCEEDS; SECURITY FOR THE BONDS Section 3.01. Issuance and Delivery of Bonds. 15 Section 3.02. Application of Proceeds of Sale of Bonds. 15 Section 3.03. Validity of Bonds 15 Section 3.04. Security for the Bonds. 15 ARTICLE IV FUNDS AND ACCOUNTS Section 4.01. Proceeds Fund. 16 Section 4.02. Debt Service Fund 16 Section 4.03. Administration and Disbursements From Debt Service Fund 16 Section 4.04. Bond Service Fund 16 Section 4.05. Investment of Moneys. 16 Section 4.06. Costs of Issuance Fund 16 ARTICLE V OTHER COVENANTS OF THE CITY Section 5.01. Punctual Payment. 18 Section 5.02. Extension of Time for Payment 18 Section 5.03. Payment of Claims. 18 Section 5.04. Books and Accounts 18 Section 5.05. Protection of Security and Rights of Bondowners. 18 Section 5.06. Continuing Disclosure 18 Section 5.07. Further Assurances. 18 Section 5.08. No Arbitrage. 19 Section 5.09. Federal Guarantee Prohibition. 19 Section 5.10. Private Activity Bond Limitation. 19 Section 5.11. Maintenance of Tax -Exemption 19 Section 5.12. Rebate Requirement. 19 1/ Section 5.13. Information Report 19 Section 5.14. Small Issuer Exemption from Bank Nondeductibility Restriction. 19 ARTICLE VI THE PAYING AGENT Section 6.01. Appointment of Paying Agent. 20 Section 6.02. Paying Agent May Hold Bonds. 20 Section 6.03. Liability of Agents. 20 Section 6.04. Notice to Agents. 21 Section 6.05. Compensation, Indemnification. 22 Section 6.06. Funds and Accounts 22 ARTICLE VII EVENTS OF DEFAULT AND REMEDIES OF BONDOWNERS Section 7.01. Events of Default. 23 Section 7.02. Application of Funds. 23 Section 7.03. Other Remedies of Bondowners 24 Section 7.04. Non -Waiver. 24 Section 7.05. Remedies Not Exclusive 25 ARTICLE VIII SUPPLEMENTAL AGREEMENTS Section 8.01. Amendments Permitted. 26 Section 8.02. Owners' Meetings 26 Section 8.03. Procedure for Amendment with Written Consent of Owners. 27 Section 8.04. Disqualified Bonds 27 Section 8.05. Effect of Supplemental Agreement. 27 Section 8.06. Endorsement or Replacement of Bonds Issued After Amendments. 28 Section 8.07. Amendatory Endorsement of Bonds. 28 ARTICLE IX MISCELLANEOUS Section 9.01. Benefits of Agreement Limited to Parties 29 Section 9.02. Successor is Deemed Included in All References to Predecessor. 29 Section 9.03. Discharge of Agreement 29 Section 9.04. Execution of Documents and Proof of Ownership by Owners 30 Section 9.05. Waiver of Personal Liability. 30 Section 9.06. Notices to and Demands on City and Paying Agent. 30 Section 9.07. Partial Invalidity. 30 Section 9.08. Unclaimed Moneys. 31 Section 9.09. Applicable Law. 31 Section 9.10. Conflict with Act 31 Section 9.11. Conclusive Evidence of Regularity. 31 Section 9.12. Payment on Business Day. 31 Section 9.13. Counterparts. 31 EXHIBIT A FORM OF BOND it PAYING AGENT AGREEMENT This Paying Agent Agreement (the "Agreement") is made and entered into as of July 1, 2012, by and between the City of National City, a general law city organized and existing under the laws of the State of California (the "City") and Union Bank, N.A., a national banking association duly organized and existing under the laws of the United States, as Paying Agent (the "Paying Agent") WITNESSTH: WHEREAS, an election was duly and regularly held in the City on March 5, 2002 for the purpose of submitting to the qualified electors of said City the question of whether bonds should be issued in the principal amount of not to exceed $6,000,000 to finance the acquisition, construction and completion of a public library; and WHEREAS, more than two-thirds of the votes cast at said election were In favor of the issuance of said bonds; and WHEREAS, pursuant to the authorization received at such election, the City has previously issued its $6,000,000 original principal amount of General Obligation Bonds, Election of 2002, Series A (the "Prior Bonds"); and WHEREAS, the City now desires to issue its 2012 General Obligation Refunding Bonds (the "Bonds") in order to refund the Prior Bonds, in order to achieve debt service savings and lower the property tax override levied on the property owners of the City to pay debt service on the Prior Bonds; and WHEREAS, this City has sold the Bonds as previously approved in the City Resolution (hereinafter defined); NOW THEREFORE, the City and the Paying Agent agree as follows: /3 ARTICLE I DEFINITIONS; AUTHORITY Section 1.01. Definitions. The terms defined above and in this Section 1.01, as used and capitalized herein, shall, for all purposes of this Agreement, have the meanings ascribed to them below, unless the context clearly requires some other meaning. "Act" means, collectively, Article 9 (commencing with section 53550) and Article 11 of Chapter 3 (commencing with section 53580) of Part 1 of Division 2 of Title 5 of the California Government Code, as in effect on the date of adoption hereof and as amended hereafter. "Articles," "Sections" and other subdivisions are to the corresponding Articles, Sections or subdivisions of this Agreement, and the words "herein," "hereof," "hereunder" and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section or subdivision hereof. "Authorized Investments" means any investments permitted by law to be made with moneys belonging to, or in the custody of, the City. "Beneficial Owner" means any person who has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds, including persons holding Bonds through nominees or depositories including, but not limited to, through the Nominee. "Bond Counsel" means any attorney or firm of attorneys nationally recognized for expertise in rendering opinions as to the legality and tax-exempt status of securities issued by public entities. "Bond Service Fund" means the 2012 Bond Service Fund established pursuant to Section 4.04 hereof. "Bond Year" means the twelve month period beginning on August 2 and ending on the following August 1, except that the first Bond year shall begin on the Closing Date and end on August 1, 2012. "Bonds" means the City of National City 2012 General Obligation Bonds Outstanding pursuant to this Agreement. "Business Day" means a day which is not a Saturday or Sunday or a day on which banks in San Francisco and Los Angeles, California, and New York, New York, are not required or permitted to be closed. "City" means the City of National City, a general law city duly organized and existing under the laws of the State of California. "City Manager" means the City Manager or such other duly appointed officer of the City authorized by the City Council by resolution to perform the functions of the manager of the City. "City Representative" means the City Manager, the Finance Manager or any other person authorized by resolution of the City Council of the City to act on behalf of the City with respect to this Agreement. 2 "City Resolution" means of the Resolution of the City Council adopted on 2012, authorizing the issuance of the Bonds. "City Treasurer" means the City Treasurer or any other person authorized by resolution of the City Council to act on behalf of the City with respect to this Agreement. "Closing Date" means the date upon which there is an exchange of Bonds for the proceeds representing the purchase price of the Bonds by the Purchaser, being 2012. "Code" means the Internal Revenue Code of 1986. "Continuing Disclosure Certificate" means that certain Continuing Disclosure Certificate dated the Closing Date and executed by the City, as originally executed and as it may be amended from time to time in accordance with the terms thereof. "Costs of Issuance Fund" means the 2012 Costs or issuance Fund established pursuant to Section 4.06 hereof. "Debt Service" means the scheduled amount of interest and principal, including principal paid pursuant to mandatory sinking fund redemption, payable on the Bonds during the period of computation, excluding amounts scheduled during such period which relate to principal which has been retired before the beginning of such period. "Debt Service Fund" means the 2012 Debt Service Fund established pursuant to Section 4.02 hereof. "Depository" means any securities depository appointed to act as Depository under Section 2.13 hereof. "Excess Investment Earnings" means an amount equal to the sum of: (i) the excess of (A) the aggregate amount earned on all Nonpurpose Investments (other than amounts attributable to such excess), over (B) the amount which would have been earned if the Yield on such Nonpurpose Investments (other than amounts attributable to such excess) had been equal to the Yield on the Bonds, (ii) any income attributable to the excess described in clause (i). "Fair Market Value" means the price at which a willing buyer would purchase the investment from a willing seller in a bona fide, arm's length transaction (determined as of the date the contract to purchase or sell the investment becomes binding) if the investment is traded on an established securities market (within the meaning of section 1273 of the Code) and, otherwise, the term "Fair Market Value" means the acquisition price in a bona fide arm's length transaction (as referenced above) if (i) the investment is a certificate of deposit that is acquired in accordance with applicable regulations under the Code, (ii) the investment is an agreement with specifically negotiated withdrawal or reinvestment provisions and a specifically negotiated 3 i5 interest rate (for example, a guaranteed investment contract, a forward supply contract or other investment agreement) that is acquired in accordance with applicable regulations under the Code, (iii) the investment is a United States Treasury Security --State and Local Government Series that is acquired in accordance with applicable regulations of the United States Bureau of Public Debt, or (iv) any commingled investment fund in which the City and related parties do not own more than a ten percent (10%) beneficial interest if the return paid by the fund is without regard to the source of investment. "Federal Securities" means United States Treasury notes, bonds, bills or certificates of indebtedness or those for which the faith and credit of the United States are pledged for the payment of principal and interest. "Finance Manager" means the Finance Manager or such other duly appointed officer of the City authorized by the City Council by resolution to perform the functions of the finance manager of the City. "Fitch" means Fitch, a corporation duly organized and existing under and by virtue of the laws of the State of Delaware, and its successors and assigns, except that if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, then the term "Fitch" shall be deemed to refer to any other nationally recognized securities rating agency selected by the City. "General Fund" means the General Fund of the City. "Gross Proceeds" means the sum of the following amounts: (a) original proceeds, namely, net amounts received by or for the City as a result of the sale of the Bonds, excluding original proceeds which become transferred proceeds (determined in accordance with applicable Regulations) of obligations issued to refund in whole or in part the Bonds; (b) investment proceeds, namely, amounts received at any time by or for the City, such as interest and dividends, resulting from the investment of any original proceeds (as referenced in paragraph (a) above) or investment proceeds (as referenced in this paragraph (b)) in Nonpurpose Investments, increased by any profits and decreased (if necessary, below zero) by any losses on such investments, excluding investment proceeds which become transferred proceeds (determined in accordance with applicable Regulations) of obligations issued to refund in whole or in part the Bonds; (c) sinking fund proceeds, namely, amounts, other than original proceeds or investment proceeds (as referenced in paragraphs (a) and (b) above) of the Bonds, which are held in the Debt Service Account and any other fund to the extent that the City reasonably expects to use such other fund to pay Debt Service on the Bonds; (d) amounts in any fund established as a reasonably required reserve or replacement fund; (e) Investment Property pledged as security for payment of Debt Service on the Bonds by the City; 4 (f) amounts, other than as specified in this definition, used to pay Debt Service on the Bonds; and (9) definition. amounts received as a result of investing amounts described in this "Information Services" means, in accordance with then current guidelines of the Securities and Exchange Commission, such services providing information with respect to the redemption of bonds as the City may designate in a Written Request of the City filed with the Paying Agent. "Investment Property" means any security (as said term is defined in section 165(g)(2)(A) or (B) of the Code), obligation, annuity contract or investment -type property, excluding, however, obligations (other than specified private activity bonds as defined in section 57(e)(5)(6) of the Code) the interest on which is excluded from gross income, under section 103 of the Code, for federal income tax purposes. "Issuance Expenses" means all items of expense directly or indirectly relating to the execution, issuance and delivery of the Bonds including, but not limited to, filing and recording costs, settlement costs, underwriting fees, printing costs, reproduction and binding costs, legal fees and charges, bond insurance premiums, fees and expenses of the Paying Agent, financial and other professional consultant fees, costs of obtaining credit ratings and bond insurance premiums. "Moody's" means Moody's Investors Service, a corporation organized and existing under the laws of the State of Delaware, its successors and assigns, except that if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency for any reason, the term "Moody's" shall be deemed to refer to any other nationally recognized securities rating agency selected by the City. "Nominee" means the nominee of the Depository as determined from time to time in accordance with Section 2.13. "Nonpurpose Investments" means any Investment Property which is acquired with the Gross Proceeds of the Bonds and is not acquired in order to carry out the governmental purpose of the Bonds. "Outstanding," when used as of any particular time with reference to Bonds, means all Bonds except: (a) Bonds theretofore canceled by the Paying Agent or surrendered to the Paying Agent for cancellation; (b) Bonds paid or deemed to have been paid within the meaning of Section 9.03 hereof; and (c) Bonds in lieu of or in substitution for which other Bonds shall have been authorized, executed, issued and delivered by the City pursuant to the Agreement. "Owner" or "Bondowner" mean any person who shall be the registered owner of any Outstanding Bond. 5 "Participant" means those broker -dealers, banks and other financial institutions from time to time for which the Depository holds Bonds as a securities depository. "Participating Underwriter" has the meaning assigned to such term in the Continuing Disclosure Certificate. "Person" means an individual, corporation, firm, association, partnership, trust or other legal entity or group of entities, including a governmental entity or any agency or political subdivision thereof. "Principal Office" means the corporate trust office of the Paying Agent in Santa Ana, California, or, solely for purposes of the presentation of Bonds for payment, transfer or exchange, such corporate trust operations office designated by the Paying Agent, or such other location as approved by the City. "Prior Bonds" shall have the meaning assigned to it in the preambles to this Agreement. "Prior Bonds Paying Agent" means Union Bank of California, N.A., as paying agent for each of the Prior Bonds. "Private Business Use" means use directly or indirectly in a trade or business carried on by a natural person or in any activity carried on by a person other than a natural person, excluding, however, use by a governmental unit and use as a member of the general public. "Proceeds Fund" means the 2012 Proceeds Fund established pursuant to Section 4.01 hereof. "Purchase Price" The term, for the purpose of computation of the Yield of the Bonds, has the same meaning as the term "issue price" in sections 1273(b) and 1274 of the Code, and, in general, means the initial offering price of the Bonds to the public (not including bond houses and brokers, or similar persons or organizations acting in the capacity of underwriters or wholesales) at which price a substantial amount of the Bonds are sold or, if the Bonds are privately placed, the price paid by the first buyer of the Bonds or the acquisition cost of the first buyer. The term "Purchase Price," for the purpose of computation of the Yield of Nonpurpose Investments, means the fair market value of the Nonpurpose Investments on the date of use of Gross Proceeds of the Bonds for acquisition thereof, or if later, on the date that Investment Property constituting a Nonpurpose Investment becomes a Nonpurpose Investment of the Bonds. Code. "Purchaser" means Estrada Hinojosa & Co., Inc. "Regulations" means temporary and permanent regulations promulgated under the "Refunding Instructions" means the Irrevocable Refunding Instructions dated the Closing Date from the City to the Prior Bonds Paying Agent relating to the refunding of the Prior Bonds. "S&P" means Standard & Poor's Ratings Services, a division of The McGraw-Hill Companies, Inc., a corporation organized and existing under the laws of the State of New York, its successors and assigns, except that if such corporation shall be dissolved or liquidated or 6 18 shall no longer perform the functions of a securities rating agency for any reason, the term "S&P" shall be deemed to refer to any other nationally recognized securities rating agency selected by the City. "Securities Depositories" means The Depository Trust Company or, in accordance with then -current guidelines of the Securities and Exchange Commission, such other securities depositaries, or no such depositaries, as the Agency may indicate in a certificate of the Agency delivered to the Paying Agent. "Supplemental Agreement" means any agreement supplemental to or amendatory of this Agreement entered into in accordance with Article VIII hereof. "Written Request of the City" means an instrument in writing signed by the City Representative. "Yield" means that yield which, when used in computing the present worth of all payments of principal and interest (or other payments in the case of Nonpurpose Investments which require payments in a form not characterized as principal and interest) on a Nonpurpose Investment or on the Bonds produces an amount equal to the Purchase Price of such Nonpurpose Investment or the Bonds, all computed as prescribed in applicable Regulations. Section 1.02. Authority for this Agreement. This Agreement is being entered into pursuant to the authority set forth in the Act and the City Resolution constitutes a continuing agreement with the Owners of all of the Bonds issued or to be issued hereunder and then Outstanding to secure the full and final payment of principal of and premiums, if any, and the interest on all pursuant to the provisions of the Act. 7 ARTICLE II THE BONDS Section 2.01. Authorization. Bonds in the aggregate principal amount of million thousand dollars ($ ) are hereby authorized to be issued by the City under and subject to the terms of the Act and which may from time to time be executed and delivered hereunder, subject to the covenants, agreements, provisions and conditions herein contained. The Bonds shall be designated the "City of National City 2012 General Obligation Bonds". Section 2.02. Terms of Bonds. (a) Form; Numbering: The Bonds shall be issued as fully registered Bonds, without coupons, in the denomination of $5,000 each or any integral multiple thereof, but in an amount not to exceed the aggregate principal amount of Bonds maturing in the year of maturity of the Bond for which the denomination is specified. Bonds shall be lettered and numbered as the Paying Agent shall prescribe. (b) Date of Bonds: The Bonds shall be dated their date of issuance and delivery, being , 2012. (c) CUSIP Identification Numbers: "CUSIP" identification numbers shall be imprinted on the Bonds, but such numbers shall not constitute a part of the contract evidenced by the Bonds and any error or omission with respect thereto shall not constitute cause for refusal of the Purchaser to accept delivery of and pay for the Bonds. In addition, failure on the part of the City to use such CUSIP numbers in any notice to Owners of the Bonds shall not constitute an event of default or any violation of the City's contract with such Owners and shall not impair the effectiveness of any such notice. (d) Maturities; Interest. The Bonds shall bear interest at the rate or rates set forth below, payable on August 1, 2012 and on each February 1 and August 1 thereafter (each an "Interest Payment Date"), and shall mature and become payable as to principal on August 1 of the years and in the amounts as set forth below. 8 Maturity Date Principal Interest Amount Rate Each Bond shall bear interest from the Interest Payment Date next preceding the date of registration and authentication thereof unless (i) it is registered and authenticated as of an Interest Payment Date, in which event it shall bear interest from such date, or (ii) it is registered and authenticated prior to an Interest Payment Date and after the close of business on the fifteenth day of the month preceding such Interest Payment Date, in which event it shall bear interest from such Interest Payment Date, or (iii) it is registered and authenticated on or prior to July 15, 2012, in which event it shall bear interest from the date of original issuance and authentication of the Bonds; provided, however, that if at the time of registration and authentication of a Bond, interest is in default thereon, such Bond shall bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment thereon. Interest on the Bonds shall be calculated on the basis of a 360-day year composed of twelve 30-day months. (e) Payment. Interest on the Bonds (including the final interest payment upon maturity or earlier redemption) is payable by check mailed on the applicable Interest Payment Date to the Owner thereof at his or her address as it appears on the registration books maintained by the Paying Agent at the close of business on the fifteenth (15th) day of the month preceding the Interest Payment Date, orr at such other address as the Owner may have filed with the Paying Agent for that purpose; provided that an Owner of $1,000,000 or more aggregate principal amount of Bonds, or the Owner of all of the Bonds at the time Outstanding, shall, at his or her option, receive payment of interest by wire transfer to an account in the United States of America designated by such Owner to the Paying Agent no later than the fifteenth (15) day of the month immediately preceding the applicable Interest Payment Date. Principal of the Bonds is payable in lawful money of the United States of America at the Principal Office of the Paying Agent. Section 2.03. Redemption. (a) Optional Redemption. The Bonds maturing on or before August 1, are not subject to redemption prior to their respective maturity dates. Bonds maturing on or after 9 August 1, shall be subject to redemption prior to their respective maturity dates as a whole or in part on any date, as designated by the City and, absent any such designation, in inverse order of maturities and by lot within a maturity from money provided at the option of the City, in each case on and after August 1, , at a redemption price equal to the principal amount of the Bonds to be redeemed, plus accrued interest to the date of redemption, without premium. (b) Redemption Procedure. The Paying Agent shall cause notice of any redemption to be mailed, first class mail, postage prepaid, at least thirty (30) days but not more than sixty (60) days prior to the date fixed for redemption, to the respective Owners of any Bonds designated for redemption, at their addresses appearing on the Bond registration books maintained by the Paying Agent and to the Securities Depositories and the Information Services; but such mailing shall not be a condition precedent to such redemption and failure to mail or to receive any such notice shall not affect the validity of the proceedings for the redemption of such Bonds. The Paying Agent shall not mail any notice of redemption until it has sufficient moneys on deposit to pay the redemption price of all Bonds to be redeemed; provided, however, that such restriction shall not apply when the Bonds are redeemed with the proceeds of another obligation of the City; and provided further that in the event the Bonds are being redeemed with such proceeds, the City shall have the right to cancel the notice of redemption by providing written notice of such cancellation to the Paying Agent at least seven (7) Business Days prior to the date set for redemption. Such notice shall state the redemption date and the redemption price and, if less than all of the then Outstanding Bonds are to be called for redemption, shall designate the serial numbers of the Bonds to be redeemed by giving the individual number of each Bond or by stating that all Bonds between two stated numbers, both inclusive, or by stating that all of the Bonds of one or more maturities have been called for redemption, and shall require that such Bonds be then surrendered at the Principal Office of the Paying Agent for redemption at the said redemption price, giving notice also that further interest on such Bonds will not accrue from and after the redemption date. In the event term bonds are redeemed in part, the City shall deliver a revised sinking fund schedule to the Paying Agent. Upon surrender of Bonds redeemed in part only, the City shall execute and the Paying Agent shall authenticate and deliver to the Owner, at the expense of the City, a new Bond or Bonds, of the same maturity, of authorized denominations in aggregate principal amount equal to the unredeemed portion of the Bond or Bonds. From and after the date fixed for redemption, if notice of such redemption shall have been duly given and funds available for the payment of the principal of and interest (and premium, if any) on the Bonds so called for redemption shall have been duly provided, such Bonds so called shall cease to be entitled to any benefit under this Agreement other than the right to receive payment of the redemption price, and no interest shall accrue thereon on or after the redemption date specified in such notice. All Bonds redeemed pursuant to this Section 2.03 shall be canceled by the Paying Agent, and a certificate of cancellation shall be submitted by the Paying Agent to the City. Section 2.04. Form of Bonds. The Bonds, the form of the Paying Agent's certificate of authentication and registration and the form of assignment to appear thereon shall be substantially in the forms, respectively, with necessary or appropriate variations, omissions and 10 insertions, as permitted or required by this Agreement, as are set forth in Exhibit A attached hereto. Section 2.05. Execution of Bonds. The Bonds shall be executed on behalf of the City by the manual or facsimile signatures of its Mayor, Mayor Pro Tem or City Manager and its Treasurer, and attested by the manual or facsimile signature of its City Clerk, who are in office on the date of execution of this Agreement or at any time thereafter, and the seal of the City shall be impressed, imprinted or reproduced by facsimile thereon. If any officer whose signature appears on any Bond ceases to be such officer before delivery of the Bonds to the Purchaser, such signature shall nevertheless be as effective as if the officer had remained in office until the delivery of the Bonds to the Purchaser. Any Bond may be signed and attested on behalf of the City by such persons as at the actual date of the execution of such Bond shall be the proper officers of the City although at the nominal date of such Bond any such person shall not have been such officer of the City. Only such Bonds as shall bear thereon a certificate of authentication and registration in the form set forth in Exhibit A attached hereto, executed and dated by the Paying Agent, shall be valid or obligatory for any purpose or entitled to the benefits of this Agreement, and such certificate of the Paying Agent shall be conclusive evidence that the Bonds so registered have been duly authenticated, registered and delivered hereunder and are entitled to the benefits of this Agreement. Section 2.06. Transfer of Bonds. Any Bond may, in accordance with its terms, be transferred, upon the books required to be kept pursuant to the provisions of Section 2.08 hereof, by the person in whose name it is registered, in person or by his duly authorized attorney, upon surrender of such Bond for cancellation at the Principal Office at the Paying Agent, accompanied by delivery of a written instrument of transfer in a form approved by the Paying Agent, duly executed. The Paying Agent shall require the payment by the Owner requesting such transfer of any tax or other governmental charge required to be paid with respect to such transfer. Whenever any Bond or Bonds shall be surrendered for transfer, the City shall execute and the Paying Agent shall authenticate and deliver a new Bond or Bonds, for like aggregate principal amount. No transfers of Bonds shall be required to be made (a) fifteen days prior to the date established for selection of Bonds for redemption or (b) with respect to a Bond after such Bond has been selected for redemption (except with respect to the unredeemed portion thereof). Section 2.07. Exchange of Bonds. Bonds may be exchanged at the Principal Office of the Paying Agent for a like aggregate principal amount of Bonds of authorized denominations and of the same maturity. The Paying Agent shall require the payment by the Owner requesting such exchange of any tax or other governmental charge required to be paid with respect to such exchange. No exchanges of Bonds shall be required to be made (a) fifteen days prior to the date established for selection of Bonds for redemption or (b) with respect to a Bond after such Bond has been selected for redemption (except with respect to the unredeemed portion thereof). Section 2.08. Bond Register. The Paying Agent shall keep or cause to be kept sufficient books for the registration and transfer of the Bonds, which shall at all times be open to 11 inspection by the City upon reasonable notice; and, upon presentation for such purpose, the Paying Agent shall, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on said books, Bonds as herein before provided. Section 2.09. Temporary Bonds. The Bonds may be initially issued in temporary form exchangeable for definitive Bonds when ready for delivery. The temporary Bonds may be printed, lithographed or typewritten, shall be of such denominations as may be determined by the City, and may contain such reference to any of the provisions of this Agreement as may be appropriate. Every temporary Bond shall be executed by the City upon the same conditions and in substantially the same manner as the definitive Bonds. If the City issues temporary Bonds it will execute and furnish definitive Bonds without delay, and thereupon the temporary Bonds may be surrendered, for cancellation, in exchange therefor at the Principal Office of the Paying Agent and the Paying Agent shall deliver in exchange for such temporary Bonds an equal aggregate principal amount of definitive Bonds of authorized denominations. Until so exchanged, the temporary Bonds shall be entitled to the same benefits pursuant to this Agreement as definitive Bonds executed and delivered hereunder. Section 2.10. Bonds Mutilated, Lost, Destroyed or Stolen. If any Bond shall become mutilated the City, at the expense of the Owner of said Bond, shall execute, and the Paying Agent shall thereupon authenticate and deliver, a new Bond of like maturity and principal amount in exchange and substitution for the Bond so mutilated, but only upon surrender to the Paying Agent of the Bond so mutilated and provision of indemnity satisfactory to the Paying Agent. Every mutilated Bond so surrendered to the Paying Agent shall be canceled by it and delivered to, or upon the order of, the City. If any Bond shall be lost, destroyed or stolen, evidence of such loss, destruction or theft may be submitted to the City and the Paying Agent and, if such evidence be satisfactory to the City and the Paying Agent and indemnity satisfactory .to it shall be given, the City, at the expense of the Owner, shall execute, and the Paying Agent shall thereupon authenticate and deliver, a new Bond of like maturity and principal amount in lieu of and in substitution for the Bond so lost, destroyed or stolen. The City may require payment of a sum not exceeding the actual cost of preparing each new Bond issued under this Section and of the expenses which may be incurred by the City and the Paying Agent in the premises. Any Bond issued under the provisions of this Section 2.10 in lieu of any Bond alleged to be lost, destroyed or stolen shall constitute an original additional contractual obligation on the part of the City whether or not the Bond so alleged to be lost, destroyed or stolen be at any time enforceable by anyone, and shall be equally and proportionately entitled to the benefits of this Agreement with all other Bonds issued pursuant to this Agreement. Section 2.11. Book -Entry; Limited Obligation of City. The Bonds may be issued in the form of a separate single fully registered Bond (which may be typewritten) for each maturity. The ownership of such Bond shall be registered in the registration books kept by the Paying Agent in the name of the Nominee as nominee of the Depository. With respect to Bonds registered in the registration books kept by the Paying Agent in the name of the Nominee, the City and the Paying Agent shall have no responsibility or obligation to such Participant or to any Person on behalf of which such a Participant holds an interest in the Bonds. Without limiting the immediately preceding sentence, the City and the Paying Agent shall have no responsibility or obligation with respect to (i) the accuracy of the records of the Depository, the Nominee, or any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other Person, other than as shown in the registration books kept by the Paying Agent, of any notice with respect to the Bonds, including any notice of redemption, (iii) the selection by the Depository and its 12 Participants of the beneficial interests in the Bonds to be redeemed in the event the Bonds are redeemed in part, or (iv) the payment to any Participant or any other Person, other than a Nominee as shown in the registration books kept by the Paying Agent, of any principal of, premium, if any, or interest on the Bonds. The City and the Paying Agent may treat and consider the Person in whose name each Bond is registered in the registration books kept by the Paying Agent as the owner and absolute Owner of such Bond for the purpose of payment of principal of, premium, if any, and interest on such Bond, for the purpose of giving notices of prepayment and other matters with respect to such Bond, for the purposes of registering transfers with respect to such Bond, and for all other purposes whatsoever. The Paying Agent shall pay all principal, premium, if any, and interest with respect to the Bonds, only to or upon the order of the respective Owners, as shown in the registration books kept by the Paying Agent, or their respective attorneys duly authorized in writing, and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to payment of principal, premium, if any, and interest on the Bonds to the extent of the sum or sums so paid. No person other than an Owner, as shown in the registration books kept by the Paying Agent, shall receive a t3ond evidencing the obligation of the City to make payments of principal, premium, if any, and interest pursuant to this Paying Agent Agreement. Upon delivery by the Depository to the Nominee, the Paying Agent and the City of written notice to the effect that the Depository has determined to substitute a new nominee in place of the Nominee, and subject to the provisions regarding the payment of the principal of and interest on the Bonds set forth in Section 2.02(e), the word Nominee in this Agreement shall refer to such new nominee of the Depository. Section 2.12. Representation Letter. In order to qualify the Bonds for the Depository's book -entry system, the City shall execute, seal, countersign and deliver to such Depository a letter from the City representing such matters as shall be necessary to so qualify the Bonds (the "Representation Letter"). The execution and delivery of the Representation Letter shall not in any way limit the provisions of Section 2.11 hereof or in any other way impose upon the City or the Paying Agent any obligation whatsoever with respect to Persons having interests in the Bonds other than the Owners, as shown on the registration books kept by the Paying Agent. In the written acceptance of the Paying Agent, such Paying Agent shall agree to take all actions necessary for all representations of the City in the Representation Letter with respect to the Paying Agent to at all times be complied with. In addition to the execution and delivery of the Representation Letter, the City shall take any other actions, not inconsistent with this Agreement, to qualify the Bonds for the Depository's book -entry system. Section 2.13. Transfers Outside Book -Entry System. The City may, by written request, at any time or for any reason, remove the Depository and appoint a successor or successors thereto. In the event (i) the Depository determines not to continue to act as securities depository for any series of Bonds, or (ii) the City determines that the Depository shall no longer so act, then the City will discontinue the book -entry system with the Depository. If the City fails to identify another qualified securities depository to replace the Depository then the Bonds shall no longer be restricted to being registered in the registration books kept by the Paying Agent in the name of the Nominee, but shall be registered in whatever name or names Owners of such Bonds transferring or exchanging such Bonds shall designate, in accordance with the provisions of Section 2.06. Section 2.14. Payments and Notices to the Nominee. Notwithstanding any other provision of this Agreement to the contrary, so long as any Bond is registered in the name of the Nominee, all payments of principal of, premium, if any, and interest on such Bond and all 13 notices with respect to such Bond shall be made and given, respectively, as provided in the Representation Letter or as otherwise instructed in writing by the Depository. 14 ARTICLE III ISSUANCE OF BONDS; APPLICATION OF BOND PROCEEDS; SECURITY FOR THE BONDS Section 3.01. Issuance and Delivery of Bonds. At any time after the execution of this Agreement the City may issue and deliver Bonds in the aggregate principal amount of million thousand dollars ($ ). The Mayor, the Mayor Pro Tem, the City Manager or the Finance Manager, and the City Treasurer are hereby directed to cause the Bonds substantially in the form attached hereto as Exhibit A to be printed, signed and sealed, and to be delivered to the Purchaser through the Depository on receipt of the purchase price therefor. The appropriate officials of the City are hereby authorized to take any and all action any of them deem reasonable in order to enable the City to execute and deliver the Bonds. The Paying Agent is hereby authorized to deliver the Bonds to the Purchaser, upon receipt of a Written Request of the City. Section 3.02. Application of Proceeds of Sale of Bonds. Upon the receipt of payment for the Bonds, the proceeds thereof, being $ (constituting the par amount thereof ($ ), plus net original issue premium in the amount of $ , less the discount in the amount of $ retained by the Purchaser), shall be paid to the Paying Agent who shall forthwith set aside, pay over and deposit such proceeds as follows: (a) Deposit in the Costs of Issuance Fund the amount of $ ; and (b) Deposit in the Proceeds Fund, the remainder of the proceeds of the Bonds, being $ , which the Paying Agent will immediately transfer to the Prior Bonds Paying Agent for deposit under the Refunding Instructions as provided in Section 4.01. Section 3.03. Validity of Bonds. The validity of the authorization and issuance of the Bonds shall not be dependent upon the completion of the Project or upon the performance by any person of his or her obligation with respect to such Project. Section 3.04. Security for the Bonds. The Bonds are general obligations of the City and the City has the power, is obligated and hereby covenants to levy ad valorem taxes upon all property within the City subject to taxation by the City, without limitation of rate or amount (except with respect to certain personal property which is taxed at limited rates), for the payment of the Bonds and the interest thereon, in accordance with all relevant provisions of law. The City hereby covenants to direct the County of San Diego to collect such ad valorem taxes in such amounts and at such times as is necessary to ensure the timely payment of Debt Service. 15 ,27 ARTICLE IV FUNDS AND ACCOUNTS Section 4.01. Proceeds Fund. There is hereby established with the Paying Agent as a separate fund the 2012 Proceeds Fund (the "Proceeds Fund"), to the credit of which a deposit shall be made as required by Section 3.02(b). Money in the Proceeds Fund shall be transferred by the Paying Agent, immediately upon receipt thereof, to the Prior Bonds Paying Agent for deposit under and pursuant to the Refunding Instructions. At such time as no amounts remain on deposit in the Proceeds Fund, the Paying Agent shall close the Proceeds Fund. Section 4.02. Debt Service Fund. There is hereby established with the City as a separate fund, to be maintained distinct from all other funds of the City, the 2012 Debt Service Fund. Upon the receipt thereof, the City shall deposit the proceeds of the ad valorem property taxes levied to pay Debt Service in the Debt Service Fund and, if any, other moneys lawfully available to pay debt service on the Bonds as provided in Section 3.04. The City shall also deposit in the Debt Service Fund the amount required by Section 3.04 hereof. The Debt Service Fund shall be administered and disbursements made in the manner and in the order set forth in Section 4.03 hereof. Section 4.03. Administration and Disbursements From Debt Service Fund. All moneys in the Debt Service Fund shall be used and withdrawn by the City solely for the purpose of paying the principal of and interest on the Bonds as the same shall become due and payable. On the last day of January and July in each year, commencing July 31, 2012, the City shall transfer to the Paying Agent moneys on deposit in the Debt Service Fund for application by the Paying Agent on the next succeeding Interest Payment Date to the payment of principal of and interest on the Bonds. Amounts representing accrued interest on the Bonds or premium with respect to the Bonds shall be applied to pay interest on the Bonds prior to amounts collected pursuant to Section 3.04 being so applied. Section 4.04. Bond Service Fund. There is hereby established as a separate fund the 2012 Bond Service Fund (the "Bond Service Fund"), to be held by the Paying Agent. All moneys received by the Paying Agent from the City pursuant to Section 4.03 shall be deposited into the Bond Service Fund. The moneys on deposit in the Bond Service Fund shall be used solely to pay principal and interest on the Bonds when due. The funds in the Bond Service Fund shall be invested in a money market fund (including any fund for which the Paying Agent or any its affiliates maintains or acts as sponsor or advisor) assigned a rating of Aaa by Moody's and AAA by S&P and Fitch. Section 4.05. Investment of Moneys. Subject to the provisions of Section 5.08 hereof, amounts on deposit in the Project Fund and the Debt Service Fund may be invested in Authorized Investments, and earnings on such investments shall remain in the respective fund or account. Authorized Investments may be purchased at such prices as the City may determine, but in no event at more than their Fair Market Value. Section 4.06. Costs of Issuance Fund. There is hereby established as a separate fund the 2012 Costs of Issuance Fund (the "Costs of Issuance Fund"), to be held by the Paying Agent, to the credit of which a deposit shall be made as required by Section 3.02(a). Moneys on deposit in the Costs of Issuance Fund shall be used by the Paying Agent to pay Issuance Expenses. If on September 30, 2012 amounts remain on deposit in the Costs of Issuance Fund, the Paying Agent will transfer such amounts to the Bond Service fund to be applied to pay 16 interest on the Bonds on February 1, 2013, provided that the Paying Agent shall notify the City at least 15 days prior to making such transfer. At such time as no amounts remain on deposit in the Costs of Issuance Fund, the Paying Agent shall close the Costs of Issuance Fund. 17 .29 ARTICLE V OTHER COVENANTS OF THE CITY Section 5.01. Punctual Payment. The City will punctually pay, or cause to be paid, the principal of and interest on the Bonds, in strict conformity with the terms of the Bonds and of this Agreement, and it will faithfully observe and perform all of the conditions, covenants and requirements of this Agreement and of the Bonds. Nothing herein contained shall prevent the City from making advances of its own moneys, howsoever derived, to any of the uses or purposes permitted by law. Section 5.02. Extension of Time for Payment. In order to prevent any accumulation of claims for interest after maturity, the City will not, directly or indirectly, extend or consent to the extension of the time for the payment of any claim for interest on any of the Bonds and will not, directly or indirectly, approve any such arrangement by purchasing or funding said claims for interest or in any other manner. In case any such claim for interest shall be extended or funded, whether or not with the consent of the City, such claim for interest so extended or funded shall not be entitled, in case of default hereunder, to the benefits of this Agreement, except subject to the prior payment in full of the principal of all of the Bonds then Outstanding and of all claims for interest which shall not have so extended or funded. Section 5.03. Payment of Claims. The City will pay and discharge, or cause to be paid and discharged, any and all lawful claims for labor, materials or supplies which, if unpaid, might become a lien or charge upon the project financed with the proceeds of the Bonds which might impair the security of the Bonds. Nothing herein contained shall require the City to make any such payment so long as the City in good faith shall contest the validity of said claims. Section 5.04. Books and Accounts. The City will keep, or cause to be kept, proper books of record and accounts, separate from all other records and accounts of the City in which complete and correct entries shall be made of all transactions relating to the project financed with proceeds of the Prior Bonds. Such books of record and accounts shall at all times during business hours be subject to the inspection of the Paying Agent and the Owners of not less than ten percent (10%) of the principal amount of the Bonds then Outstanding, or their representatives authorized in writing. Section 5.05. Protection of Security and Rights of Bondowners. The City will preserve and protect the security of the Bonds and the rights of the Bondowners, and will warrant and defend their rights against all claims and demands of all persons. From and after the sale and delivery of any of the Bonds by the City, the Bonds shall be incontestable by the City. Section 5.06. Continuing Disclosure. The City hereby covenants and agrees that it will comply with and carry out all of the terms of the Continuing Disclosure Certificate. Notwithstanding any other provision of this Agreement, failure of the City to comply with the Continuing Disclosure Certificate shall not be an Event of Default under Section 7.01 hereof; provided, however, any Participating Underwriter, any Owner or any Beneficial Owner may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this Section 5.06 and the Continuing Disclosure Certificate. Section 5.07. Further Assurances. The City will adopt, make, execute and deliver any and all such further resolutions, instruments and assurances as may be reasonably necessary or proper to carry out the intention or to facilitate the performance of this Agreement, and for the 18 better assuring and confirming unto the Owners of the Bonds of the rights and benefits provided in this Agreement. Section 5.08. No Arbitrage. The City shall not take, or permit or suffer to be taken by the Paying Agent or otherwise, any action with respect to the proceeds of the Bonds which, if such action had been reasonably expected to have been taken, or had been deliberately and intentionally taken, on the date of issuance of the Bonds would have caused the Bonds to be "arbitrage bonds" within the meaning of section 148 of the Code. Section 5.09. Federal Guarantee Prohibition. The City shall not take any action or permit or suffer any action to be taken if the result of the same would be to cause the Bonds to be "federally guaranteed" within the meaning of section 149(b) of the Code. Section 5.10. Private Activity Bond Limitation. The City shall assure that the proceeds of the Bonds are not so used as to cause the Bonds to satisfy the private business tests of section 141(b) of the Code or the private loan financing test of section 141(c) of the Code. Section 5.11. Maintenance of Tax -Exemption. The City shall take all actions necessary to assure the exclusion of interest on the Bonds from the gross income of the Owners of the Bonds to the same extent as such interest is permitted to be excluded from gross income under the Code as in effect on the date of issuance of the Bonds. Section 5.12. Rebate Requirement. The City shall take any and all actions necessary to assure compliance with section 148(f) of the Code, relating to the rebate of Excess Investment Earnings, if any, to the federal government, to the extent that such section is applicable to the Bonds. Section 5.13. Information Report. The Finance Manager is hereby directed to assure the filing of an information report for the Bonds in compliance with Section 149(e) of the Code. [Section 5.14. Small Issuer Exemption from Bank Nondeductibility Restriction. The City hereby designates the Bonds for purposes of paragraph (3) of section 265(b) of the Code and covenants that none of the Bonds constitute private activity bonds as defined in section 141 of the Code, and that not more than $10,000,000 aggregate principal amount of obligations the interest on which is excludable (under section 103(a) of the Code) from gross income for federal income taxes (excluding, however, private activity bonds, as defined in section 141 of the Code, other than qualified 501(c)(3) bonds as defined in section 145 of the Code), including the Bonds, have been or shall be issued by the City, including all subordinate entities of the City, during the calendar year 20121 19 3/ ARTICLE VI THE PAYING AGENT Section 6.01. Appointment of Paying Agent. Union Bank, N.A., at its Principal Office in San Francisco, California, or in such other location as approved by the City, is hereby appointed Paying Agent for the Bonds. The Paying Agent undertakes to perform such duties, and only such duties, as are specifically set forth in this Agreement, and, even during the continuance of an Event of Default, no implied covenants or obligations shall be read into this Agreement against the Paying Agent. The Paying Agent shall signify its acceptance of the duties and obligations imposed upon it by this Agreement by executing and delivering to the City this Agreement. The City may remove the Paying Agent initially appointed, and any successor thereto, and may appoint a successor or successors thereto, but any such successor shall be a bank or trust company doing business in the State of California, having (or, if such bank or trust company is a member of a bank holding company, its parent holding company has) a combined capital (exclusive of borrowed capital) and surplus of at least fifty million dollars ($50,000,000), and subject to supervision or examination by federal or state authority. If such bank or trust company publishes a report of condition at least annually, pursuant to law or to the requirements of any supervising or examining authority above referred to, then for the purposes of this Section 6.01 the combined capital and surplus of such bank or trust company shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. The Paying Agent may at any time resign by giving written notice to the City and the Bondowners of such resignation. Upon receiving notice of such resignation, the City shall promptly appoint a successor Paying Agent by an instrument in writing. Any resignation or removal of the Paying Agent and appointment of a successor Paying Agent shall become effective upon acceptance of appointment by the successor Paying Agent. If the City fails to appoint a successor Paying Agent within 30 days of the Paying Agent's removal or resignation, the Paying Agent may petition a court of competent jurisdiction for the appointment of a siuccessor. Section 6.02. Paying Agent May Hold Bonds. The Paying Agent may become the owner of any of the Bonds in its own or any other capacity with the same rights it would have if it were not Paying Agent. Section 6.03. Liability of Agents. The recitals of facts, covenants and agreements herein and in the Bonds contained shall be taken as statements, covenants and agreements of the City, and the Paying Agent assumes no responsibility for the correctness of the same, nor makes any representations as to the validity or sufficiency of this Agreement or of the Bonds, nor shall incur any responsibility in respect thereof, other than as set forth in this Agreement. The Paying Agent shall riot be liable in connection with the performance of its duties hereunder, except for its own negligence or willful default. In the absence of bad faith, the Paying Agent may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Paying Agent and conforming to the requirements of this Agreement; but in the case of any such certificates or opinions by which any provision hereof are specifically required to be furnished to the Paying Agent, the Paying Agent shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Agreement. 20 The Paying Agent shall not be liable for any error of judgment made in good faith by a responsible officer unless it shall be proved that the Paying Agent was negligent in ascertaining the pertinent facts. No provision of this Agreement shall require the Paying Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it. The Paying Agent may execute any of the powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Paying Agent shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder. The Paying Agent agrees to accept and act upon instructions or directions pursuant to this Agreement sent by unsecured e-mail, facsimile transmission or other similar unsecured electronic methods, provided, however, that, the Paying Agent shall have received an incumbency certificate listing persons designated to give such instructions or directions and containing specimen signatures of such designated persons, which such incumbency certificate shall be amended and replaced whenever a person is to be added or deleted from the listing. If the City elects to give the Paying Agent e-mail or facsimile instructions (or instructions by a similar electronic method) and the Paying Agent in its discretion elects to act upon such instructions, the Paying Agent's understanding of such instructions shall be deemed controlling. The Paying Agent shall not be liable for any losses, costs or expenses arising directly or indirectly from the Paying Agent's reliance upon and compliance with such instructions notwithstanding such instructions conflict or are inconsistent with a subsequent written instruction. The City agrees to assume all risks arising out of the use of such electronic methods to submit instructions and directions to the Paying Agent, including without limitation the risk of the Paying Agent acting on unauthorized instructions, and the risk of interception and misuse by third parties. Any banking association or corporation into which the Paying Agent may be merged, converted or with which the Paying Agent may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Paying Agent shall be a party, or any banking association or corporation to which all or substantially all of the corporate trust business of the Paying Agent shall be transferred, shall succeed to all the Paying Agent's rights, obligations and immunities hereunder without the execution or filing of any paper or any further act on the part of the parties hereto, anything herein to the contrary notwithstanding. Section 6.04. Notice to Agents. The Paying Agent may rely and shall be protected in acting or refraining from acting upon any notice, resolution, request, consent, order, certificate, report, warrant, bond or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or proper parties. The Paying Agent may consult with counsel, who may be of counsel to the City, with regard to legal questions, and the opinion of such counsel shall be full and complete authorization and protection in respect of any action taken or suffered by it hereunder in good faith and in accordance therewith. Whenever in the administration of its duties under this Agreement the Paying Agent shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering 21 any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of bad faith on the part of the Paying Agent, be deemed to be conclusively proved and established by a certificate of the City, and such certificate shall be full warrant to the Paying Agent for any action taken or suffered under the provisions of this Agreement upon the faith thereof, but in its discretion the Paying Agent may, in lieu thereof, accept other evidence of such matter or may require such additional evidence as to it may seem reasonable. Section 6.05. Compensation, Indemnification. The City shall pay to the Paying Agent from time to time reasonable compensation for all services rendered under this Agreement, and also all reasonable expenses, charges, counsel fees and other disbursements, including those of their attorneys, agents and employees, incurred in and about the performance of their powers and duties under this Agreement. A City Representative is hereby authorized to execute an agreement or agreements with the Paying Agent in connection with such fees and expenses. The City further agrees to indemnify and save the Paying Agent and its officers, agents, directors and employees harmless against any liabilities, costs, expenses (including, without limitation, legal fees and expenses), losses, judgments, damages, claims and suits which it may incur in the exercise and performance of its powers and duties hereunder which are not due to its negligence or bad faith. This Section 6.05 shall survive the termination of this Agreement and the earlier removal or resignation of the Paying Agent. Section 6.06. Funds and Accounts. The Paying Agent may establish such funds and accounts as it reasonably deems necessary or appropriate to perform its obligations under this Agreement. 22 3y ARTICLE VII EVENTS OF DEFAULT AND REMEDIES OF BONDOWNERS Section 7.01. Events of Default. If one or more of the following events ("Events of Default") shall happen, that is to say: (a) if default shall be made by the City in the due and punctual payment of the principal of or redemption premium, if any, on any Bond when and as the same shall become due and payable, whether at maturity as therein expressed or by declaration or otherwise; (b) if default shall be made by the City in the due and punctual payment of any installment of interest on any Bond when and as such interest installment shall become due and payable; (c) if default shalt be made by the City in the observance of any of the covenants, agreements or conditions on its part in this Agreement or in the Bonds contained, and such default shall have continued for a period of thirty (30) days after written notice thereof to the City Representative; or (d) if the City shall file a petition seeking reorganization or arrangement under the federal bankruptcy laws or any other applicable law of the United States of America, or if a court of competent jurisdiction shall approve a petition, seeking reorganization of the City under the federal bankruptcy laws or any other applicable law of the United States of America, or if, under the provisions of any other law for the relief or aid of debtors, any court of competent jurisdiction shall assume custody or control of the City or of the whole or any substantial part of its property; then, and in each and every event of default and upon written request of the Owners of not less than sixty percent (60%) in aggregate principal amount of the Bonds at the time Outstanding, the principal of all of the Bonds then Outstanding, and the interest accrued thereon, shall be declared to be due and payable immediately, and upon any such declaration the same shall become and shall be immediately due and payable, anything in this Agreement or in the Bonds contained to the contrary notwithstanding. Such declaration may be rescinded by the Owners of not less than sixty percent (60%) in aggregate principal amount of the Bonds at the time Outstanding provided the City cures such default or defaults, including the deposit with the Paying Agent of a sum sufficient to pay all principal on the respective Bonds matured prior to such declaration and all matured installments of interest (if any) on the Bonds, with interest at the rate of twelve percent (12%) per annum on such overdue installments of principal and, to the extent such payment of interest is lawful at that time, on such overdue installments of interest, so that the City is currently in compliance with all payment, deposit and transfer provisions of this Agreement, and a sum sufficient to pay any expenses incurred by the Paying Agent in connection with such default. Section 7.02. Application of Funds. All of the sums in the funds and accounts provided for in Sections 4.03 and 4.05 hereof, upon the date of the Event of Default as provided in Section 7.01 hereof, and all sums thereafter received by the Paying Agent hereunder, shall be 23 35 applied by the Paying Agent in the following order upon presentation of the Bonds, and the stamping thereon of the payment if only partially paid, or upon the surrender thereof if fully paid: First, to the payment of the costs and expenses of the Paying Agent hereunder in declaring such event of default, including reasonable compensation to her or their agents, attorneys and counsel; Second, in case the principal of the Bonds shall not have become due and payable, to the payment of the interest in default in the order of the seniority of the installments of such interest, with interest on the overdue installments at the rate of twelve percent (12%) per annum (to the extent that such interest on overdue installments shall have been collected), such payments to be made ratably to the persons entitled thereto without discrimination or preference; Third, in case the principal of the Bonds shall have become and shall be then due and payable, to the payment of the whole amount then owing and unpaid upon the Bonds for principal and interest, with interest on the overdue principal and installments of interest at the rate of twelve percent (12%) per annum (to the extent that such interest on overdue installments of interest shall have been collected), and in case such moneys shall be insufficient to pay in full the whole amount so owing and unpaid upon the Bonds, then to the payment of such principal and interest without preference or priority of principal over interest, or interest over principal, or of any installment of interest over any other installment of interest, ratably to the aggregate of such principal and interest. Section 7.03. Other Remedies of Bondowners. Any Bondowner shall have the right, for the equal benefit and protection of all Bondowners similarly situated: (a) by mandamus, suit, action or proceeding, to compel the City and its members, officers, agents or employees to perform each and every term, provision and covenant contained in this Agreement and in the Bonds, and to require the carrying out of any or all such covenants and agreements of the City and the fulfillment of all duties imposed upon it; (b) by suit, action or proceeding in equity, to enjoin any acts or things which are unlawful, or the violation of any of the Bondowners' rights; or (c) upon the happening of any event of default (as defined in Section 7.01 hereon), by suit, action or proceeding in any court of competent jurisdiction, to require the City and its members and employees to account as if it and they were the Paying Agents of an express trust. Section 7.04. Non -Waiver. Nothing in this Article VII or in any other provision of this Agreement, or in the Bonds, shall affect or impair the obligation of the City, which is absolute and unconditional, to pay the principal of and interest on the Bonds to the respective Owners of the Bonds at the respective dates of maturity, as herein provided, or affect or impair the right of action, which is also absolute and unconditional, of such Owners to institute suit to enforce such payment by virtue of the contract embodied in the Bonds. A waiver of any default by any Bondowner shall not affect any subsequent default or impair any rights or remedies on the subsequent default. No delay or omission of any Owner of any of the Bonds to exercise any right or power accruing upon any default shall impair any such 24 right or power or shall be construed to be a waiver of any such default or an acquiescence therein, and every power and remedy conferred upon the Bondowners by this Article VI may be enforced and exercised from time to time and as often as shall be deemed expedient by the Owners of the Bonds. If a suit, action or proceeding to enforce any right or exercise any remedy be abandoned or determined adversely to the Bondowners, the City and the Bondowners shall be restored to their former positions, rights and remedies as if such suit, action or proceeding had not been brought or taken. Section 7.05. Remedies Not Exclusive. No remedy herein conferred upon the Owners of Bonds shall be exclusive of any other remedy and that each and every remedy shall be cumulative and shall be in addition to every other remedy given hereunder or thereafter conferred on the Bondowners. 25 37 ARTICLE VIII SUPPLEMENTAL AGREEMENTS Section 8.01. Amendments Permitted. This Agreement and the rights and obligations of the City and of the Owners of the Bonds may be modified or amended at any time by a Supplemental Agreement pursuant to the affirmative vote at a meeting of Owners, or with the written consent without a meeting, of the Owners of at least sixty percent (60%) in aggregate principal amount of the Bonds then Outstanding, exclusive of Bonds disqualified as provided in Section 8.04. No such modification or amendment shall (i) extend the maturity of any Bond or reduce the interest rate thereon, or otherwise alter or impair the obligation of the City to pay the principal of, and the interest and any premium on, any Bond, without the express consent of the Owner of such Bond, or (ii) permit the creation by the City of any pledge or lien upon the ad valorem taxes of the taxes superior to or on a parity with the pledge and lien created for the benefit of the Bonds (except as otherwise permitted by the Act, the laws of the State of California or this Agreement), or reduce the percentage of Bonds required for the amendment hereof. Any such amendment may not modify any of the rights or obligations of the Paying Agent without its written consent. This Agreement and the rights and obligations of the City and of the Owners may also be modified or amended at any time by a Supplemental Agreement, without the consent of any Owners, only to the extent permitted by law and only for any one or more of the following purposes: (a) to add to the covenants and agreements of the City in this Agreement contained, other covenants and agreements thereafter to be observed, or to limit or surrender any right or power herein reserved to or conferred upon the City; (b) to make modifications not adversely affecting any outstanding series of Bonds of the City in any material respect, as determined by the City; (c) to make such provisions for the purpose of curing any ambiguity, or of curing, correcting or supplementing any defective provision contained in this Agreement, or in regard to questions arising under this Agreement, as the City and the Paying Agent may deem necessary or desirable and not inconsistent with this Agreement, and which shall not materially adversely affect the rights of the Owners of the Bonds, as determined by the City; and (d) to make such additions, deletions or modifications as may be necessary or desirable to assure compliance with Section 148 of the Code relating to required rebate of Excess Investment Earnings to the United States or otherwise as may be necessary to assure exclusion from gross income for federal income tax purposes of interest on the Bonds or to conform with the Regulations. The Paying Agent shall, prior to executing such Supplemental Agreement, be entitled to receive and rely upon an opinion of counsel stating that such Supplemental Agreement is authorized or permitted in accordance with the terms of this Agreement. Section 8.02. Owners' Meetings. The City may at any time call a meeting of the Owners. In such event the City is authorized to fix the time and place of said meeting and to provide for the giving of notice thereof, and to fix and adopt rules and regulations for the conduct of said meeting. 26 Section 8.03. Procedure for Amendment with Written Consent of Owners. The City and the Paying Agent may at any time adopt a Supplemental Agreement amending the provisions of the Bonds or of this Agreement or any Supplemental Agreement, to the extent that such amendment is permitted by Section 8.01, to take effect when and as provided in this Section. A copy of such Supplemental Agreement, together with a request to Owners for their consent thereto, shall be mailed by first class mail, by the Paying Agent to each Owner of Bonds Outstanding, but failure to mail copies of such Supplemental Agreement and request shall not affect the validity of the Supplemental Agreement when assented to as in this Section provided. Such Supplemental Agreement shall not become effective unless there shall be filed with the Paying Agent the written consents of the Owners of at least sixty percent (60%) in aggregate principal amount of the Bonds then Outstanding (exclusive of Bonds disqualified as provided in Section 8.04) and a notice shall have been mailed as hereinafter in this Section provided. Each such consent shall be effective only if accompanied by proof of ownership of the Bonds for which such consent is given, which proof shall be such as is permitted by Section 9.04. Any such consent shall be binding upon the Owner of the Bonds giving such consent and on any subsequent Owner (whether or not such subsequent Owner has notice thereof) unless such consent is revoked in writing by the Owner giving such consent or a subsequent Owner by filing such revocation with the Paying Agent prior to the date when the notice hereinafter in this Section provided for has been mailed. After the Owners of the required percentage of Bonds shall have filed their consents to the Supplemental Agreement, the City shall mail a notice to the Owners in the manner hereinbefore provided in this Section for the mailing of the Supplemental Agreement, stating in substance that the Supplemental Agreement has been consented to by the Owners of the required percentage of Bonds and will be effective as provided in this Section (but failure to mail copies of said notice shall not affect the validity of the Supplemental Agreement or consents thereto). Proof of the mailing of such notice shall be filed with the Paying Agent. A record, consisting of the papers required by this Section 8.03 to be filed with the Paying Agent, shall be proof of the matters therein stated until the contrary is proved. The Supplemental Agreement shall become effective upon the filing with the Paying Agent of the proof of mailing of such notice, and the Supplemental Agreement shall be deemed conclusively binding (except as otherwise hereinabove specifically provided in this Article) upon the City and the Owners of all Bonds at the expiration of sixty (60) days after such filing, except in the event of a final decree of a court of competent jurisdiction setting aside such consent in a legal action or equitable proceeding for such purpose commenced within such sixty-day period. Section 8.04. Disqualified Bonds. Bonds owned or held for the account of the City, excepting any pension or retirement fund, shall not be deemed Outstanding for the purpose of any vote, consent or other action or any calculation of Outstanding Bonds provided for in this Article VIII, and shall not be entitled to vote upon, consent to, or take any other action provided for in this Article VIII; except that in determining whether the Paying Agent shall be protected in relying upon any such approval or consent of an Owner, only Bonds which the Paying Agent actually knows to be owned or held for the account of the City (excepting any pension or retirement fund) shall be disregarded unless all Bonds are so owned in which case such Bonds shall be considered outstanding for the purpose of such determination. Section 8.05. Effect of Supplemental Agreement. From and after the time any Supplemental Agreement becomes effective pursuant to this Article VIII, this Agreement shall be deemed to be modified and amended in accordance therewith, the respective rights, duties 27 3g and obligations under this Agreement of the City and all owners of Bonds Outstanding shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of any such Supplemental Agreement shall be deemed to be part of the terms and conditions of this Agreement for any and all purposes. Section 8.06. Endorsement or Replacement of Bonds Issued After Amendments. The City may determine that Bonds issued and delivered after the effective date of any action taken as provided in this Article VIII shall bear a notation, by endorsement or otherwise, in form approved by the City, as to such action. In that case, upon demand of the Owner of any Bond Outstanding at such effective date and presentation of his Bond for that purpose at the Principal Office of the Paying Agent or at such other office as the City may select and designate for that purpose, a suitable notation shall be made on such Bond. The City may determine that new Bonds, so modified as in the opinion of the City is necessary to conform to such Owners' action, shall be prepared, executed and delivered. In that case, upon demand of the Owner of any Bonds then Outstanding, such new Bonds shall be exchanged at the Principal Office of the Paying Agent without cost to any Owner, for Bonds then Outstanding, upon surrender of such Bonds. Section 8.07. Amendatory Endorsement of Bonds. The provisions of this Article VIII shall not prevent any Owner from accepting any amendment as to the particular Bonds held by him or her. 28 16 ARTICLE IX MISCELLANEOUS Section 9.01. Benefits of Agreement Limited to Parties. Nothing in this Agreement, expressed or implied, is intended to give to any person other than the City, the Paying Agent and the Owners, any right, remedy, claim under or by reason of this Agreement. Any covenants, stipulations, promises or agreements in this Agreement contained by and on behalf of the City shall be for the sole and exclusive benefit of the Owners and the Paying Agent. Section 9.02. Successor is Deemed Included in All References to Predecessor. Whenever in this Agreement or any Supplemental Agreement either the City or the Paying Agent is named or referred to, such reference shall be deemed to include the successors or assigns thereof, and all the covenants and agreements in this Agreement contained by or on behalf of the City or the Paying Agent shall bind and inure to the benefit of the respective successors and assigns thereof whether so expressed or not. Section 9.03. Discharge of Agreement. The City shall have the option to pay and discharge the indebtedness on all or any portion of the Bonds Outstanding in any one or more of the following ways: (a) by paying or causing to be paid the principal of, and interest and any premium on, such Bonds Outstanding and designated for defeasance, as and when the same become due and payable; (b) by depositing with the Paying Agent, in trust, at or before maturity, money which, together with, in the event of a discharge of all of the Bonds, the amounts then on deposit in the funds provided for in Sections 4.02 and 4.04 is fully sufficient to pay such Bonds Outstanding and designated for defeasance, including all principal, interest and redemption premiums; or (c) by irrevocably depositing with the Paying Agent, in trust, cash and Federal Securities in such amount as the City shall determine as confirmed in writing by an independent certified public accountant will, together with the interest to accrue thereon and, in the event of a discharge of all of the Bonds, moneys then on deposit in the funds and accounts provided for in Sections 4.02 and 4.04, be fully sufficient to pay and discharge the indebtedness on such Bonds Outstanding and designated for defeasance (including all principal, interest and redemption premiums) at or before their respective maturity dates. If the City shall have taken any of the actions specified in (a), (b) or (c) above, and if such Bonds are to be redeemed prior to the maturity thereof notice of such redemption shall have been given as in this Agreement provided or provision satisfactory to the Paying Agent shall have been made for the giving of such notice, then, at the election of the City, and notwithstanding that any Bonds shall not have been surrendered for payment, the pledge of the funds and moneys provided for in this Agreement and all other obligations of the City under this Agreement with respect to such Bonds Outstanding shall cease and terminate. Notice of such election shall be filed with the Paying Agent. Notwithstanding the foregoing, the obligation of the City to pay or cause to be paid to the Owners of the Bonds not so surrendered and paid all sums due thereon and all amounts owing to the Paying Agent pursuant to Section 6.05 shall continue in any event. 29 Upon compliance by the City with the foregoing with respect to all Bonds Outstanding and designated for defeasance, any funds held by the Paying Agent after payment of all fees and expenses of the Paying Agent, which are not required for the purposes of the preceding paragraph, shall be paid over to the City. Section 9.04. Execution of Documents and Proof of Ownership by Owners. Any request, declaration or other instrument which this Agreement may require or permit to be executed by Owners may be in one or more instruments of similar tenor, and shall be executed by Owners in person or by their attorneys appointed in writing. Except as otherwise herein expressly provided, the fact and date of the execution by any Owner or his attorney of such request, declaration or other instrument, or of such writing appointing such attorney, may be proved by the certificate of any notary public or other officer authorized to take acknowledgments of deeds to be recorded in the state in which he purports to act, that the person signing such request, declaration or other instrument or writing acknowledged to him the execution thereof, or by an affidavit of a witness of such execution, duly sworn to before such notary public or other officer. Except as otherwise herein expressly provided, the ownership of registered Bonds and the amount, maturity, number and date of holding the same shall be proved by the registry books. Any request, declaration or other instrument or writing of the Owner of any Bond shall bind all future Owners of such Bond in respect of anything done or suffered to be done by the City or the Paying Agent in good faith and in accordance therewith. Section 9.05. Waiver of Personal Liability. No member, officer, agent or employee of the City shall be individually or personally liable for the payment of the principal of, or interest or any premium on, the Bonds; but nothing herein contained shall relieve any such member, officer, agent or employee from the performance of any official duty provided by law. Section 9.06. Notices to and Demands on City and Paying Agent. Any notice or demand which by any provision of this Agreement is required or permitted to be given or served by the Paying Agent to or on the City may be given or served by being deposited postage prepaid in a post office letter box addressed (until another address is filed by the City with the Paying Agent) to the City of National City, 525 San Anselmo Avenue, San Anselmo, California 94960, Attn: Finance and Administrative Services Director. Any notice or demand which by any provision of this Agreement is required or permitted to be given or served by the City to or on the Paying Agent may be given or served by being deposited postage prepaid in a post office letter box addressed (until another address is filed by the Paying Agent with the City) to Union Bank, N.A., 550 Kearny Street, Suite 600, San Francisco, California 94108, Attention: Milly Canessa. Section 9.07. Partial Invalidity. If any Section, paragraph, sentence, clause or phrase of this Agreement shall for any reason be held illegal or unenforceable, such holding shall not affect the validity of the remaining portions of this Agreement. The City hereby declares that it would have adopted this Agreement and each and every other Section, paragraph, sentence, clause or phrase hereof and authorized the issue of the Bonds pursuant thereto irrespective of 30 the fact that any one or more Sections, paragraphs, sentences, clauses, or phrases of this Agreement may be held illegal, invalid or unenforceable. Section 9.08. Unclaimed Moneys. Anything contained herein to the contrary notwithstanding, any moneys held by the Paying Agent in trust for the payment and discharge of the principal of, and the interest and any premium on, the Bonds which remains unclaimed for two (2) years after the date when the payments of such principal, interest and premium have become payable, if such moneys was held by the Paying Agent at such date, shall be repaid by the Paying Agent (without liability for interest) to the City as its absolute property free from any trust, and the Paying Agent shall thereupon be released and discharged with respect thereto and the Bond Owners shall look only to the City for the payment of the principal of, and interest and any premium on, such Bonds. Section 9.09. Applicable Law. This Agreement shall be governed by and enforced in accordance with the laws of the State of California applicable to contracts made and performed in the State of California. Section 9.10. Conflict with Act. In the event of a conflict between any provision of this Agreement with any provision of the Act as in effect on the Closing Date, the provision of the Act shall prevail over the conflicting provision of this Agreement. Section 9.11. Conclusive Evidence of Regularity. Bonds issued pursuant to this Agreement shall constitute conclusive evidence of the regularity of all proceedings under the Act relative to their issuance and the levy of the ad valorem taxes securing the payment of the Bonds. Section 9.12. Payment on Business Day. In any case where the date of the maturity of interest or of principal (and premium, if any) of the Bonds or the date fixed for redemption of any Bonds or the date any action is to be taken pursuant to this Agreement is other than a Business Day, the payment of interest or principal (and premium, if any) or the action need not be made on such date but may be made on the next succeeding day which is a Business Day with the same force and effect as if made on the date required and no interest shall accrue for the period after such date. Section 9.13. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original. 31 '�{3 IN WITNESS WHEREOF, the City has caused this Agreement to be executed in its name and the Paying Agent has caused this Agreement to be executed in its name, all as of the date first written above. CITY OF NATIONAL CITY By: City Manager UNION BANK, N.A., as Paying Agent By: Authorized Officer 32 yr No. $ EXHIBIT A FORM OF BOND Interest Rate UNITED STATES OF AMERICA STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF NATIONAL CITY 2012 GENERAL OBLIGATION BOND Maturity Date August 1, 20_ REGISTERED OWNER: Cede & Co. PRINCIPAL SUM: DOLLARS issue Date April _, 2012 CUSP The CITY OF NATIONAL CITY, a general law city duly organized and existing under and by virtue of the Constitution and laws of the State of California (the "City"), for value received hereby promises to pay to the Registered Owner stated above, or registered assigns (the "Owner"), on the Maturity Date stated above (subject to any right of prior redemption hereinafter provided for), the Principal Sum stated above, in lawful money of the United States of America, and to pay interest thereon in like lawful money from the interest payment date next preceding the date of authentication of this Bond (unless (i) this Bond is authenticated on an interest payment date, in which event it shall bear interest from such date of authentication, or (ii) this Bond is authenticated prior to an interest payment date and after the close of business on the fifteenth day of the month preceding such interest payment date, in which event it shall bear interest from such interest payment date, or (iii) this Bond is authenticated on or prior to July 15, 2012, in which event it shall bear interest from the Issue Date stated above; provided however, that if at the time of authentication of this Bond, interest is in default on this Bond, this Bond shall bear interest from the interest payment date to which interest has previously been paid or made available for payment on this Bond) until payment of such Principal Sum in full, at the rate per annum stated above, payable on August 1, 2012 and on each February 1 and August 1 thereafter, calculated on the basis of 360-day year composed of twelve 30-day months. Principal hereof and premium, if any, upon early redemption hereof are payable at the designated corporate trust office of Union Bank, N.A., (the "Paying Agent"). Interest hereon (including the final interest payment upon maturity or earlier redemption) is payable by check mailed on the applicable Interest Payment Date to the Owner at his or her address as it appears on the registration books maintained by the Paying Agent as of the close of business on the fifteenth day of the month next preceding such interest payment date, or at such other address as the Owner may have filed with the Paying Agent for that purpose. A-1 fs This Bond is one of a duly authorized issue of bonds of the City designated as "City of National City 2012 General Obligation Refunding Bonds" (the "Bonds"), in an aggregate principal amount of _ million thousand dollars ($ ), all of like tenor and date (except for such variation, if any, as may be required to designate varying numbers, maturities, interest rates or redemption and other provisions) and all issued pursuant to the provisions of Article 9 (commencing with section 53550) and Article 11 of Chapter 3 (commencing with section 53580) of Part 1 of Division 2 of Title 5 of the California Government Code (collectively, the "Act"), pursuant to a resolution of the City adopted , 2012 (the "Resolution"), authorizing the issuance of the Bonds and a Paying Agent Agreement dated as of July 1, 2012 (the "Agreement") between the City and the Paying Agent. Reference is hereby made to the Resolution and the Agreement (copies of which are on file at the office of the Paying Agent) and the Act for a description of the terms on which the Bonds are issued and the rights thereunder of the owners of the Bonds and the rights, duties and immunities of the Paying Agent and the rights and obligations of the City thereunder, to all of the provisions of which Resolution and Agreement the Owner of this Bond, by acceptance hereof, assents and agrees. The Bonds have been issued for the purpose of refunding certain previously issued general obligation bonds of the City. This Bond and the interest hereon and on all other Bonds and the interest thereon (to the extent set forth in the Agreement) are general obligations of the City and the City has the power, is obligated and has covenanted to levy ad valorem taxes for the payment of the Bonds and the interest thereon, in accordance with all relevant provisions of law. The City has covenanted in the Agreement to direct the County of San Diego to levy and collect such ad valorem taxes in such amounts and at such times is necessary to ensure the timely payment of debt service on the Bonds. Further, if and to the extent the amount of such ad valorem taxes collected is insufficient to pay debt service on the Bonds, the City is obligated, under the Agreement, to use any other moneys lawfully available therefor to pay debt service on the Bonds. The Bonds maturing on or before August 1, are not subject to redemption prior to their respective maturity dates. Bonds maturing on or after August 1, , shall be subject to redemption prior to their respective maturity dates as a whole or in part on any date, as designated by the City and, absent any such designation, in inverse order of maturities and by lot within a maturity from money provided at the option of the City, in each case on and after August 1, , at a redemption price equal to the principal amount of the Bonds to be redeemed, plus accrued interest to the date of redemption, without premium. As provided in the Agreement, notice of redemption shall be given by mail no less than thirty (30) nor more than sixty (60) days prior to the redemption date to the respective registered owners of any Bonds designated for redemption at their addresses appearing on the Bond registration books maintained by the Paying Agent, but neither failure to receive such notice nor any defect in the notice so mailed shall affect the sufficiency of the proceedings for redemption. If this Bond is called for redemption and payment is duly provided therefor as specified in the Agreement, interest shall cease to accrue hereon from and after the date fixed for redemption. If an Event of Default, as defined in the Agreement, shall occur, the principal of all Bonds may be declared due and payable upon the conditions, in the manner and with the effect A-2 provided in the Agreement, but such declaration and its consequences may be rescinded and annulled as further provided in the Agreement. The Bonds are issuable as fully registered Bonds, without coupons, in denominations of $5,000 and any integral multiple thereof. Subject to the limitations and conditions and upon payment of the charges, if any, as provided in the Agreement, Bonds may be exchanged for a like aggregate principal amount of Bonds of other authorized denominations and of the same maturity. This Bond is transferable by the Owner hereof, in person or by his attorney duly authorized in writing, at said office of the Paying Agent, but only in the manner and subject to the limitations provided in the Agreement, and upon surrender and cancellation of this Bond. Upon registration of such transfer a new Bond or Bonds, of authorized denomination or denominations, for the same aggregate principal amount and of the same maturity will be issued to the transferee in exchange herefor. The City and the Paying Agent may treat the Owner hereof as the absolute owner hereof for all purposes, and the City and the Paying Agent shall not be affected by any notice to the contrary. The Agreement may be amended without the consent of the Owners of the Bonds to the extent set forth in the Agreement. It is hereby certified that all of the things, conditions and acts required to exist, to have happened or to have been performed precedent to and in the issuance of this Bond do exist, have happened or have been performed in due and regular time and manner as required by the laws of the State of California, and that the amount of this Bond, together with all other indebtedness of the City, does not exceed any limit prescribed by any laws of the State of California, and is not in excess of the amount of Bonds permitted to be issued under the Agreement. This Bond shall not be entitled to any benefit under the Agreement or become valid or obligatory for any purpose until the Certificate of Authentication hereon shall have been signed by the Paying Agent. Unless this Bond is presented by an authorized representative of The Depository Trust Company, a New York corporation ("DTC), to the City or its agent for registration of transfer, exchange, or payment, and any certificate issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. A-3 IN WITNESS WHEREOF, the City of National City has caused this Bond to be executed in its name and on its behalf with the facsimile signatures of its City Manager, its Treasurer and its City Clerk and its seal to be reproduced hereon, all as of the Issue Date stated above. ATTEST: City Clerk A-4 CITY OF NATIONAL CITY By: City Manager By: Treasurer [FORM OF PAYING AGENTS CERTIFICATE OF AUTHENTICATION] CERTIFICATE OF AUTHENTICATION This is one of the Bonds described in the within -mentioned Agreement. Date of Authentication: UNION BANK, N.A., as Paying Agent Authorized Signatory ABBREVIATIONS The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to applicable laws or Tax Regulations: TEN COMM--as tenants in common TEN ENT --as tenants by the entireties JT TEN --as joint tenants with right of survivorship and not as tenants in common COMM PROP --as community property UNIF TRANS MIN ACT Custodian (Cust.) (Minor) under Uniform Transfers to Minors Act (State) ADDITIONAL ABBREVIATIONS MAY ALSO BE USED THOUGH NOT IN THE LIST ABOVE A-5 within ASSIGNMENT For value received, the undersigned do(es) hereby sell, assign and transfer unto the (Name, Address and Tax Identification or Social Security Number of Assignee) the within Bond and do(es) hereby irrevocably constitute and appoint attorney, to transfer the same on the registration books of the Paying Agent, with full power of substitution in the premises. Dated: Signature Guaranteed: Notice: Signature(s) must be guaranteed by a qualified guarantor institution Notice: The signature(s) on this assignment must correspond with the name(s) as written on the face of the within Bond in every particular without alteration or enlargement or any change whatsoever. A-6 Jones Hall Draft 5/2212 IRREVOCABLE REFUNDING INSTRUCTIONS For City of National City General Obligation Bonds, Election of 2002, Series A These IRREVOCABLE REFUNDING INSTRUCTIONS (these "Instructions"), dated as of 2012, is between the CITY OF NATIONAL CITY, a general law city organized and existing under the laws of the State of California (the "City"), and UNION BANK OF CALIFORNIA, N.A., a national banking association organized and existing under the laws of the United States of America, acting as paying agent for the City's General Obligation Bonds, Election of 2002, Series A (the "Prior Bonds"). BACKGROUND: 1. The City has previously issued, executed and delivered the Prior Bonds under a a resolution adopted by the City Council on April 1, 2003 (the "Prior Bonds Resolution"), pursuant to which Union Bank of California, N.A. was appointed as Paying Agent fro the Prior Bonds (the "Prior Bonds Paying Agent"). 2. The Prior Bonds are all currently subject to redemption in full on any date, and in order to raise funds to pay the redemption price of the Prior Bonds, the City and Union Bank, N.A. (as the "2012 Paying Agent") have entered into a Paying Agent Agreement dated as of July 1, 2012 (the "2012 Paying Agent Agreement") for the purpose of authorizing the execution and delivery of the City's 2012 General Obligation Refunding Bonds, in the aggregate principal amount of $ (the "2012 Bonds"), the proceeds of which will be used to refund and redeem the Prior Bonds prior to their maturity date. 3. The City has conducted proceedings to issue the 2012 Bonds to refund the Prior Bonds for purposes of defeasing and redeeming them on , 2012. 4. The City wishes to give these Instructions to the Prior Bonds Paying Agent for the purpose of establishing an irrevocable escrow fund to be funded, invested, held and administered for the purpose of providing for the payment in full of the principal, interest and prepayment premium represented by the Prior Bonds upon the redemption thereof on , 2012. INSTRUCTIONS: In order to provide for the payment and prepayment of the Prior Bonds and to discharge the Prior Bonds and the obligations represented thereby, the City hereby irrevocably directs the Prior Bonds Paying Agent as follows: SECTION 1. Establishment of Escrow Fund. The Prior Bonds Paying Agent is directed to establish an escrow fund (the "Escrow Fund") to be held by the Prior Bonds Paying Agent in trust as an irrevocable escrow securing the payment of the Prior Bonds and the City's obligations with respect thereto, as hereinafter set forth. All cash and securities in the Escrow Fund are hereby irrevocably pledged as a special fund for the payment of the principal and interest represented by the Prior Bonds in accordance with the Prior Bonds Resolution. If at any time the Prior Bonds Paying Agent receives actual knowledge that the cash and securities in the Escrow Fund will not be sufficient to make any payment required by Section 3 in respect of the Prior Bonds, the Prior Bonds Paying Agent shall notify the City of such fact and the City shall immediately cure such deficiency from any source of legally available funds. The Prior Bonds Paying Agent has no liability for any such insufficiency. SECTION 2. Deposit into Escrow Fund. Concurrently with delivery of the 2012 Bonds, the Prior Bonds Paying Agent shall transfer into the Escrow Fund the amount of $ received from the City (or as designated by the City) in immediately available funds, to be derived from the proceeds of sale of the 2012 Bonds and $ being held by the City with respect to the Prior Bonds, for a total amount of $ SECTION 3. No investment. The Prior Bona F . :1g Agent shall hold the entire amount of $ in the Escrow Fund in cash, uninvested. SECTION 4. Instructions as to Application of Deposit. The Prior Bonds Paying Agent shall apply the cash and securities held in the Escrow Fund for the sole purpose of paying the principal of and interest and redemption premium on the Prior Bonds to and including , 2012, as set forth in Appendix A. The City hereby elects to redeem, on , 2012, the Prior Bonds outstanding on that date. Neither the Paying Agent or the Prior Bonds Paying Agent have any lien upon or right of set off against the securities and cash at any time on deposit in the Escrow Fund. Neither the Paying Agent or the Prior Bonds Paying Agent are liable for the accuracy of any calculations provided as to the sufficiency of the moneys and securities deposited with it to pay the principal interest or redemption premium on the Prior Bonds. The deposit made into the Escrow Fund under this Agreement constitutes an irrevocable deposit for the payment and redemption of the Prior Bonds in accordance with the Prior Bonds Resolution. The City hereby elects that the pledge of the funds provided for in the Prior Bonds Resolution, and all other obligations of the Prior Bonds Paying Agent and the City with respect to the Prior Bonds, shall cease and terminate, with the effect and subject to the limitations set forth in the Prior Bonds Resolution. SECTION 5. Disposition of Excess Funds. Following payment and redemption in full of all of the Prior Bonds on , 2012, the Prior Bonds Paying Agent shall withdraw any amounts remaining on deposit in the Escrow Fund and transfer those amounts to the 2012 Paying Agent, to be deposited in the Bond Service Fund established under the 2012 Paying Agent Agreement, and applied to pay a portion of the next interest coming due and payable on the 2012 Bonds. SECTION 6. Irrevocable Election to Redeem Prior Bonds; Redemption Notice. The City hereby irrevocably elects to redeem all of the outstanding Prior Bonds on , 2012. The Prior Bonds Paying Agent acknowledges that it has given notice of redemption to the owners of the Prior Bonds in accordance with the requirements of each of the Prior Bonds Paying Agent Agreement. SECTION 7. Application of Certain Terms of Prior Bonds Resolution. All of the terms of the Prior Bonds Resolution relating to the payment and redemption of principal of and -2- interest and redemption premium on the Prior Bonds, and the indemnifications, protections, immunities and limitations from liability afforded the Prior Bonds Paying Agent are incorporated in these Instructions as if set forth in full herein. SECTION 8. Compensation to Prior Bonds Paying Agent. The City shall pay the Prior Bonds Paying Agent full compensation for its services under these Instructions, including out-of-pocket costs such as publication costs, redemption expenses, legal fees and other costs and expenses relating hereto and, in addition, all fees, costs and expenses relating to the purchase, substitution or withdrawal of any securities after the date hereof. Under no circumstances shall amounts deposited in or credited to the Escrow Fund be deemed to be available for said purposes. The Prior Bonds Paying Agent has no lien upon or right of set off against the cash and securities at any time on deposit in the Escrow Fund. SECTION 9. Execution in Counterparts. These Instructions may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. -3- SECTION 10. Applicable Law. These Instructions shall be governed by and construed in accordance with the laws of the State of California. ACCEPTED: UNION BANK OF CALIFORNIA, N.A., as Prior Bonds Paying Agent By Authorized Officer CITY OF NATIONAL CITY By City Manager -4- APPENDIX A PAYMENT AND REDEMPTION SCHEDULE OF PRIOR BONDS Principal Interest Redemption Payment Payment Payment Premium Date Amount Amount Amount -0- Total A-1 Jones Hall Draft 5/22/12 PRELIMINARY OFFICIAL STATEMENT DATED , 2012 NEW ISSUE — BOOK -ENTRY ONLY RATINGS: S&P: " " Bank Qualified (See "RATING" herein) In the opinion of Jones Hall, A Professional Law Corporation, San Francisco, California, Bond Counsel, subject, however, to certain qualifications described herein, under existing law, the interest on the Bonds is excludable from gross income for federal income tax purposes and such interest is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individual and corporate, although for the purpose of computing the alternative minimum tax imposed on certain corporations, such interest is taken into account in determining certain income and earnings, and the Bonds are "qualified tax-exempt obligations" within the meaning of section 265(b)(3) of the Internal Revenue Code of 1986. In the further opinion of Bond Counsel, such interest is exempt from California personal income taxes. See "TAX MATTERS" herein. CITY OF NATIONAL CITY 2012 General Obligation Refunding Bonds Dated: Date of Delivery Due: August 1, as shown inside cover Purpose. The bonds captioned above (the "Bonds") are being issued by the City of National City (the "City") to refund all or a portion of its General Obligation Bonds, Election of 2002, Series A (the "Prior Bonds"). See "PLAN OF FINANCE - Purpose of Issue." Issuance. The Bonds are being issued by the City under provisions of the California Government Code and under a Resolution adopted by the City Council of the City (the "City Council") on , 2012 (the "Bond Resolution") and a Paying Agent Agreement, dated as of July 1, 2012, between the City and Union Bank, N.A., as paying agent (the 'Paying Agent"). The Prior Bonds were authorized in 2002 at an election of the registered voters of the City, at which more than two-thirds of the persons voting on the propositions voted to authorize the issuance and sale of general obligation bonds. See "PLAN OF FINANCE." Security. The Bonds are general obligations of the City, payable solely from ad valorem property taxes levied by the City and collected by the County of San Diego (the "County"). The City Council is empowered and is obligated to annually levy ad valorem taxes for the payment of interest on, and principal of, the Bonds upon all property subject to taxation by the City, without limitation of rate or amount (except certain personal property which is taxable at limited rates). See "SECURITY FOR THE BONDS." Book -Entry Only. The Bonds will be issued in book -entry form only, and will be initially issued and registered in the name of Cede & Co. as nominee of The Depository Trust Company, New York, New York ("DTC"). The Bonds are issuable as fully registered securities in denominations of $5,000 or any integral multiple of $5,000. Purchasers of the Bonds (the "Beneficial Owners") will not receive physical certificates representing their interest in the Bonds. See "THE BONDS" and "APPENDIX E - DTC AND THE BOOK - ENTRY ONLY SYSTEM." Payments. Interest on the Bonds accrues from the date of delivery and is payable semiannually on February 1 and August 1 of each year, commencing August 1, 2012. Payments of principal of and interest on the Bonds will be paid by U.S. Bank National Association, as Paying Agent, to DTC for subsequent disbursement to DTC Participants, which will remit such payments to the Beneficial Owners of the Bonds. See "THE BONDS - Description of the Bonds." Redemption. The Bonds are subject to redemption prior to maturity as provided herein. See "THE BONDS - Redemption." Cover Page. This cover page contains certain information for genera/ reference only. It is not intended to be a summary of the security for or the terms of the Bonds. Investors are advised to read the entire Official Statement to obtain information essential to the making of an informed investment decision. Capitalized terms used on this cover page not otherwise defined shall have the meaning set forth herein. MATURITY SCHEDULE (See inside cover) The Bonds are offered when, as and if executed and delivered, subject to the approval as to their legality by Jones Hall, A Professional Law Corporation, San Francisco, California, Bond Counsel. Jones Hall, A Professional Law Corporation is also serving as Disclosure Counsel to the City. Certain legal matters are being passed upon for the City by the City Attorney. The Bonds are expected to be available for delivery through the facilities of DTC of New York, New York, on 2012. Dated: 2012. ' Preliminary, subject to change. Estrada Hinojosa & Company, Inc. S0 MATURITY SCHEDULE CITY OF NATIONAL CITY 2012 General Obligation Refunding Bonds Base CUSIPt: 635400 $ Serial Bonds Maturity Date Principal Coupon Price (August 11 Amount Rate or Yield CUSIP 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 t Copyright 2012, American Bankers Association. CUSIP data herein are provided by Standard & Poor's CUSIP Service Bureau, a division of The McGraw-Hill Companies, Inc., and are provided for convenience of reference only. None of the City, the Underwriter or the Paying Agent assumes any responsibility for the accuracy of these CUSIP data. GENERAL INFORMATION ABOUT THIS OFFICIAL STATEMENT Use of Official Statement. This Official Statement is submitted in connection with the sale of the Bonds referred to herein and may not be reproduced or used, in whole or in part, for any other purpose. This Official Statement is not a contract between any bond owner and the City or the Underwriter. This Official Statement and the information contained herein are subject to completion or amendment without notice. No Offering Except by This Official Statement. No dealer, broker, salesperson or other person has been authorized by the City or the Underwriter to give any information or to make any representations relating to the Bonds other than those contained in this Official Statement and, if given or made, such other information or representation must not be relied upon as having been authorized by the City or the Underwriter. No Unlawful Offers or Solicitations. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy nor may there be any sale of the Bonds by a person in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale. Estimates and Projections. When used in this Official Statement and in any continuing disclosure by the City, in any press release and in any oral statement made with the approval of an authorized officer of the City, the words or phrases "will likely result," "are expected to", "will continue", "is anticipated", "estimate", "project," "forecast", "expect", "intend" and similar expressions identify "forward looking statements." Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward -looking statements. Any forecast is subject to such uncertainties. Inevitably, some assumptions used to develop the forecasts will not be realized and unanticipated events and circumstances may occur. Therefore, there are likely to be differences between forecasts and actual results, and those differences may be material. Information in Official Statement. The information set forth in this Official Statement has been furnished by the City and other sources which are believed to be reliable, but it is not guaranteed as to accuracy or completeness by the City. The underwriter has reviewed the information in this official statement pursuant to its responsibilities to investors under the federal securities laws, but the underwriter does not guarantee the accuracy or completeness of such information. All summaries of the Bond Resolution or other documents referred to in this Official Statement are made subject to the provisions of such documents and qualified in their entirety to reference to such documents, and do not purport to be complete statements of any or all of such provisions. No Securities Laws Registration. The Bonds have not been registered under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, in reliance upon exceptions therein for the issuance and sale of municipal securities. The Bonds have not been registered or qualified under the securities laws of any state. Effective Date. This Official Statement speaks only as of its date, and the information and expressions of opinion contained in this Official Statement are subject to change without notice. Neither the delivery of this Official Statement nor any sale of the Bonds will, under any circumstances, give rise to any implication that there has been no change in the affairs of the City, or the other parties described in this Official Statement, or the condition of the property within the City since the date of this Official Statement. S(J CITY OF NATIONAL CITY SAN DIEGO COUNTY, CALIFORNIA CITY COUNCIL Ron Morrison, Mayor Alejandra Sotelo-Solis, Vice Mayor Luis Natividad, Councilmember Mona Rios, Councilmember Rosalie Zarate, Councilmember CITY ADMINISTRATION Leslie Deese, City Manager Tina Norrdin, Financial Services Officer Claudia Silva, City Attorney PROFESSIONAL SERVICES Paying Agent Union Bank, N.A. Santa Ana, California Bond Counsel and Disclosure Counsel Jones Hall, A Professional Law Corporation San Francisco, California Financial Advisor Urban Futures, Inc. Orange, California TABLE OF CONTENTS Page INTRODUCTION 1 REFINANCING PLAN 3 Purpose of Issue 3 Estimated Sources and Uses of Funds 3 Annual Debt Service 4 THE BONDS 5 General 5 Redemption 5 Events of Default and Remedies for the Bonds 7 SECURITY FOR THE BONDS 9 Ad Valorem Taxes 9 Debt Service Fund 9 Limited Obligation 10 PROPERTY TAXATION 10 Property Tax Collection Procedures 10 Taxation of State -Assessed Utility Property 11 Alternative Method of Tax Apportionment - Teeter Plan 11 Tax Rates 14 Tax Levies and Delinquencies 14 Major Taxpayers 15 Direct and Overlapping Debt 15 CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES AND APPROPRIATIONS 17 Article XIIIA of the State Constitution 17 Article XIIIB of the State Constitution 17 Proposition 62 18 Article XIIIC and XIIID of the State Constitution 18 Proposition 1A; Proposition 22; Proposition 26 20 Unitary Property 21 Future Initiatives 21 TAX MATTERS 22 CERTAIN LEGAL MATTERS 23 ABSENCE OF MATERIAL LITIGATION 23 FINANCIAL ADVISOR 23 UNDERWRITING 23 RATING 24 CONTINUING DISCLOSURE 24 MISCELLANEOUS 24 APPENDIX A APPENDIX B APPENDIX C APPENDIX D APPENDIX E - CITY AND COUNTY GENERAL AND ECONOMIC DATA - AUDITED FINANCIAL STATEMENTS OF THE CITY FOR FISCAL YEAR 2010-11 - PROPOSED FORM OF OPINION OF BOND COUNSEL - FORM OF CONTINUING DISCLOSURE CERTIFICATE - DTC AND THE BOOK -ENTRY ONLY SYSTEM OFFICIAL STATEMENT CITY OF NATIONAL CITY 2012 General Obligation Refunding Bonds INTRODUCTION This Introduction is not a summary of this Official Statement. It is only a brief description of and guide to, and is qualified by, more complete and detailed information contained in the entire Official Statement and the documents summarized or described herein. A full review should be made of the entire Official Statement. The offering of Bonds to potential investors is made only by means of the entire Official Statement. The City. The City of National City (the "City") is the second oldest city in San Diego County (the "County"), with a history that dates to 1868 when the original community was laid out by the California missionaries. The City is a general law city and was incorporated in 1887. The City encompasses an area of approximately nine square miles and enjoys a fairly constant population of approximately 58,000. The City is bordered by the City of San Diego on the north and east, the City of Chula Vista on the south and San Diego Bay on the west. The City is substantially developed. See "APPENDIX A - CITY AND COUNTY GENERAL AND ECONOMIC DATA," for demographic and financial information regarding the City. Purpose for issuance. The Bonds are being issued to refund the City's $6,000,000 original principal amount of General Obligation Bonds, Election of 2002, Series A (the "Prior Bonds"), currently outstanding in the principal amount of $4,945,000. See "REFINANCING PLAN - Purpose of Issue." Authority for Issuance. The Prior Bonds were authorized at an election of the registered voters of the City, at which more than two-thirds of the persons voting on the proposition voted to authorize the issuance and sale of general obligation bonds. See "PLAN OF FINANCE - Purpose of Issue." The Bonds are being issued under Articles 9 and 11 of Chapter 3 of Part 1 of Division 2 of Title 5 of the California Government Code, a Resolution adopted by the City Council of the City (the "City Council") on , 2012 (the "Bond Resolution") and a Paying Agent Agreement, dated as of July 1, 2012 (the "Paying Agent Agreement"), between the City and Union Bank, N.A., as paying agent (the "Paying Agent"). Preliminary, subject to change. -1- Col Security and Sources of Payment for the Bonds. The Bonds are general obligations of the City payable solely from ad valorem property taxes levied by the City and collected by the County. The City Council is empowered and is obligated to annually levy ad valorem taxes for the payment of interest on, and principal of, the Bonds upon all property subject to taxation by the City, without limitation of rate or amount (except with respect to certain personal property which is taxable at limited rates). See "SECURITY FOR THE BONDS." Payment and Registration of the Bonds. The Bonds will be dated their date of original issuance and delivery (the "Dated Date") and will be issued as fully registered bonds, without coupons, in the denominations of $5,000 or any integral multiple of $5,000, registered in the name of Cede & Co. as nominee of The Depository Trust Company, New York, New York ("DTC"), and will be available under the book -entry system maintained by DTC, only through brokers and dealers who are or act through DTC Participants as described below. Beneficial Owners will not be entitled to receive physical delivery of the Bonds. See "THE BONDS" and "APPENDIX E - DTC AND THE BOOK -ENTRY ONLY SYSTEM." Interest on the Bonds accrues from their date of issuance and is payable semiannually on February 1 and August 1 of each year, commencing August 1, 2012. See "THE BONDS - Description of the Bonds." Early Redemption. The Bonds are subject to optional redemption and mandatory redemption from sinking fund payments prior to their maturity as described in "THE BONDS - Redemption." The Bonds are not subject to optional redemption prior to maturity. Other Information. This Official Statement speaks only as of its date, and the information contained herein is subject to change. Copies of documents referred to in this Official Statement and information concerning the Bonds are available from the City Clerk of the City. The City may impose a charge for copying, mailing and handling. -2- REFINANCING PLAN Purpose of Issue On March 5, 2002 an election was duly and regularly held in the City for the purpose of submitting to the qualified electors of the City the questions whether bonds should be issued in the principal amount of not to exceed $6,000,000 to finance the acquisition, construction and completion of a public library in the City. The measure passed by more than 2/3 of the votes cast in favor of the bond issuance (the "2002 Authorization"). Pursuant to the 2002 Authorization, the City issued the Prior Bonds in 2003, currently outstanding in the principal amount of $4,945,000. The City is issuing the Bonds to provide for the payment in full of the principal of and interest on the Prior Bonds maturing August 1, 2013 through August 1, 2028, without redemption premium. , as paying agent for the Prior Bonds, will establish an irrevocable escrow fund to be funded with the net proceeds of the Bonds, to be invested, held and administered for the purpose of providing for the payment in full of the principal and accrued interest represented by the Prior Bonds to the redemption date of August 1, 2012. Proceeds deposited into the Escrow Fund on the date of issuance of the Bonds will not be available to pay debt service on the Bonds. Estimated Sources and Uses of Funds The proceeds of the sale of the Bonds received by the City are expected to be applied as follows: Sources of Funds Bond Proceeds Prior Bonds Debt Service Fund Premium Total Sources Uses of Funds Escrow Fund Underwriter's Discount Cost of Issuance 1) Total Uses (1) Issuance costs include Bond Counsel and Disclosure Counsel fees, financial advisory fees, rating agency fees, Official Statement printing costs, and paying agent fees. -3- Annual Debt Service Table 1 below presents a schedule of the annual debt service for the Bonds. Table 1 CITY OF NATIONAL CITY 2012 General Obligation Refunding Bonds Annual Debt Service Schedule Year Ending August 1 Principal Interest Total 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 -4- THE BONDS General The Bonds are initially available in book -entry form only. So long as Cede & Co. is the registered owner of the Bonds as nominee of The Depository Trust Company ("DTC"), New York, New York, references herein to the Bondowners or registered owners of the Bonds shall mean Cede & Co. and shall not mean the beneficial owners of the Bonds. In addition, so long as Cede & Co. is the registered owner of the Bonds, purchasers of the Bonds will not receive certificates representing their interest in the Bonds purchased. Interest on and principal of the Bonds will be payable by the Paying Agent to Cede & Co. by wire transfer in immediately available funds in accordance with the terms of a Letter of Representation delivered by the City to DTC. The Bonds will be issued as fully registered bonds in denominations of $5,000 principal amount or any integral multiple thereof. The Bonds will be dated their date of issuance and delivery being , 2012, will bear interest at the rates and will mature on the dates and in the principal amounts set forth on the front cover page hereof. Interest on the Bonds is computed on the basis of a 360-day year consisting of twelve 30-day months. Interest on the Bonds is payable semiannually on February 1 and August 1 of each year (each an "Interest Payment Date") commencing August 1, 2012. Each Bond shall bear interest from the Interest Payment Date next preceding the date of registration and authentication thereof unless (i) it is registered and authenticated as of an Interest Payment Date, in which event it shall bear interest from such date, or (ii) it is registered and authenticated prior to an Interest Payment Date and after the close of business on the fifteenth day of the month preceding such Interest Payment Date, in which event it shall bear interest from such Interest Payment Date, or (iii) it is registered and authenticated on or prior to July 15, 2012, in which event it shall bear interest from the date of original issuance and authentication of the Bonds; provided, however, that if at the time of registration and authentication of a Bond, interest is in default thereon, such Bond shall bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment thereon. For long as the bonds are in book -entry form only and registered in the name of Cede & Co., the interest on and principal of the Bonds will be payable by the Paying Agent to Cede & Co. by wire transfer in immediately available funds in accordance with the terms of the Letter of Representation. See "APPENDIX E - DTC AND THE BOOK -ENTRY ONLY SYSTEM." Redemption Optional Redemption. The Bonds maturing on or before August 1, 20 are not subject to redemption prior to maturity. The Bonds maturing on or after August 1, 20 are subject to redemption at the option of the City, as a whole or in part and by lot within a maturity, from any source of available funds, on any date on and after August 1, 20_ at a redemption price equal to the principal amount thereof to be redeemed, plus accrued interest to the date of redemption, without premium. Mandatory Sinking Fund Redemption. The Bonds maturing August 1, 20_ are subject to mandatory sinking fund redemption in part, by lot, prior to their stated maturity date, on each August 1 on and after August 1 20 , at a redemption price equal to 100% of the principal -5- 4.5 amount thereof called for redemption, plus accrued interest to the redemption date, without premium, as follows: Date (August 1) Amount Redemption Procedures. The Paying Agent shall cause notice of any redemption to be mailed, first class mail, postage prepaid, at least thirty days but not more than sixty days prior to the date fixed for redemption, to the respective Owners of any Bonds designated for redemption, at their addresses appearing on the Bond registration books maintained by the Paying Agent and to the Securities Depositories and the Information Services; but such mailing shall not be a condition precedent to such redemption and failure to mail or to receive any such notice shall not affect the validity of the proceedings for the redemption of such Bonds. The Paying Agent shall not mail any notice of redemption until it has sufficient moneys on deposit to pay the redemption price of all Bonds to be redeemed; provided, however, that such restriction shall not apply when the Bonds are redeemed with the proceeds of another obligation of the City; and provided further that in the event the Bonds are being redeemed with such proceeds, the City shall have the right to cancel the notice of redemption by providing written notice of such cancellation to the Paying Agent at least seven Business Days prior to the date set for redemption. Such notice shall state the redemption date and the redemption price and, if less than all of the then Outstanding Bonds are to be called for redemption, shall designate the serial numbers of the Bonds to be redeemed by giving the individual number of each Bond or by stating that all Bonds between two stated numbers, both inclusive, or by stating that all of the Bonds of one or more maturities have been called for redemption, and shall require that such Bonds be then surrendered at the Principal Office of the Paying Agent for redemption at the said redemption price, giving notice also that further interest on such Bonds will not accrue from and after the redemption date. In the event term bonds are redeemed in part, the City shall deliver a revised sinking fund schedule to the Paying Agent. Upon surrender of Bonds redeemed in part only, the City shall execute and the Paying Agent shall authenticate and deliver to the Owner, at the expense of the City, a new Bond or Bonds, of the same maturity, of authorized denominations in aggregate principal amount equal to the unredeemed portion of the Bond or Bonds. From and after the date fixed for redemption, if notice of such redemption has been duly given and funds available for the payment of the principal of and interest (and premium, if any) on the Bonds so called for redemption have been duly provided, such Bonds so called shall cease to be entitled to any benefit other than the right to receive payment of the redemption price, and no interest shall accrue thereon on or after the redemption date specified in such notice. -6- Events of Default and Remedies for the Bonds The Paying Agent Agreement contains the following events of default and remedies: If one or more the following events ("Events of Default") shall happen, that is to say: (a) if default is made by the City in the due and punctual payment of the principalof or redemption premium, if any, on any Bond when and as the same shall become due and payable, whether at maturity as therein expressed or by declaration or otherwise; (b) if default is made by the City in the due and punctual payment of any installment of interest on any Bond when and as such interest installment shall become due and payable; (c) if default is made by the City in the observance of any of the covenants, agreements or conditions on its part in the Paying Agent Agreement or in the Bonds contained, and such default shall have continued for a period of thirty days after written notice thereof to the City; or (d) if the City files a petition seeking reorganization or arrangement under the federal bankruptcy laws or any other applicable law of the United States of America, or if a court of competent jurisdiction approves a petition, seeking reorganization of the City under the federal bankruptcy laws or any other applicable law of the United States of America, or if, under the provisions of any other law for the relief or aid of debtors, any court of competent jurisdiction assumes custody or control of the City or of the whole or any substantial part of its property; then, and in each and every event of default and upon written request of the Owners of not less than sixty percent in aggregate principal amount of the Bonds at the time Outstanding, the principal of all of the bonds then Outstanding, and the interest accrued thereon, shall be declared to be due and payable immediately, and upon any such declaration the same shall become and shall be immediately due and payable, anything in the Paying Agent Agreement or in the bonds contained to the contrary notwithstanding. Such declaration may be rescinded by the Owners of not less than sixty percent in aggregate principal amount of the Bonds at the time Outstanding provided the City cures such default or defaults, including the deposit with the Paying Agent of a sum sufficient to pay all principal on the respective Bonds matured prior to such declaration and all matured installments of interest (if any) on the Bonds, with interest at the rate of twelve percent per annum on such overdue installments of principal and, to the extent such payment of interest is lawful at that time, on such overdue installments of interest, so that the City is currently in compliance with all payment, deposit and transfer provisions of the Paying Agent Agreement, and a sum sufficient to pay any expenses incurred by the Paying Agent in connection with such default. Upon the date of the Event of Default as provided above, all of the sums in the Debt Service Fund held by the City and all sums thereafter received by the Paying Agent under the Paying Agent Agreement, shall be applied by the Paying Agent in the following order upon presentation of the Bonds, and the stamping thereon of the payment if only partially paid, or upon the surrender thereof if fully paid: -7- First, to the payment of the costs and expenses of the Paying Agent under the Paying Agent Agreement and of the costs and expenses of Bondowners in declaring such event of default, including reasonable compensation to the Bondowners or their agents, attorneys and counsel; Second, in case the principal of the Bonds shall not have become due and payable, to the payment of the interest in default in the order of the seniority of the installments of such interest, with interest on the overdue installments at the rate of twelve percent (12%) per annum (to the extent that such interest on overdue installments shall have been collected), such payments to be made ratably to the persons entitled thereto without discrimination or preference; Third, in case the principal of the Bonds shall have become and shall be then due and payable, all such sums shall be applied to the payment of the whole amount then owing and unpaid upon the Bonds for principal and interest, with interest on the overdue principal and installments of interest at the rate of twelve percent (12%) per annum (to the extent that such interest on overdue installments of interest shall have been collected), and in case such moneys shall be insufficient to pay in full the whole amount so owing and unpaid upon the Bonds, then to the payment of such principal and interest without preference or priority of principal over interest, or interest over principal, or of any installment of interest over any other installment of interest, ratably to the aggregate of such principal and interest. The remedies available to the Paying Agent and the registered owners of the Bonds upon an event of default under the Paying Agent Agreement and any other document described herein are in many respects dependent upon regulatory and judicial actions which are often subject to discretion and delay. Under existing law and judicial decisions, the remedies provided for under such documents may not be readily available or may be limited. The various legal opinions to be delivered concurrently with the delivery of the Bonds will be qualified to the extent that the enforceability of the legal documents with respect to the Bonds is subject to limitations imposed by bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors generally and by equitable remedies and proceedings generally. -8- SECURITY FOR THE BONDS Ad Valorem Taxes Bonds Payable from Ad Valorem Property Taxes. The Bonds are general obligations of the City, payable solely from ad valorem property taxes levied by the City and collected by the County. The City is empowered and is obligated to annually levy ad valorem taxes for the payment of the Bonds and the interest thereon upon all property within the City subject to taxation by the City, without limitation of rate or amount (except certain personal property which is taxable at limited rates). Levy and Collection. The City will levy and the County will collect such ad valorem taxes in such amounts and at such times as is necessary to ensure the timely payment of debt service. Such taxes, when collected, will be deposited into a debt service fund for the Bonds, which is maintained by the City and which is irrevocably pledged for the payment of principal of and interest on the Bonds when due. City property taxes are assessed and collected by the County in the same manner and at the same time, and in the same installments as other ad valorem taxes on real property, and will have the same priority, become delinquent at the same times and in the same proportionate amounts, and bear the same proportionate penalties and interest after delinquency, as do the other ad valorem taxes on real property. As described below, the County has adopted the Teeter Plan which provides that the City will receive all of the property taxes which are levied by the City, and that any penalties and interest on delinquent taxes will be retained by the County. See "PROPERTY TAXATION - Alternative Method of Tax Apportionment - Teeter Plan." Annual Tax Rates. The amount of the annual ad valorem tax levied by the City to repay the Bonds will be determined by the relationship between the assessed valuation of taxable property in the City and the amount of debt service due on the Bonds. Fluctuations in the annual debt service on the Bonds and the assessed value of taxable property in the City may cause the annual tax rate to fluctuate. Economic and other factors beyond the City's control, such as economic recession, deflation of land values, a relocation out of the City or financial difficulty or bankruptcy by one or more major property taxpayers, or the complete or partial destruction of taxable property caused by, among other eventualities, earthquake, flood or other natural disaster, could cause a reduction in the assessed value within the City and necessitate a corresponding increase in the annual tax rate. Debt Service Fund The City will establish the Debt Service Fund (the "Debt Service Fund"), which will be established as a separate fund to be maintained distinct from all other funds of the City. All taxes levied by the City pursuant to the Bond Resolution for the payment of the principal of and interest and premium (if any) on the Bonds will be deposited in the Debt Service Fund by the City promptly upon the receipt from the County. The Debt Service Fund is pledged for the payment of the principal of and interest and premium (if any) on the Bonds when and as the same become due. The City will transfer amounts in the Debt Service Fund, to the extent necessary to pay the principal of and interest on the Bonds as the same become due and payable, to the Paying Agent as required to pay the principal of and interest and premium (if any) on the Bonds. -9- If, after payment in full of the Bonds, any amounts remain on deposit in the Debt Service Fund, the City shall transfer such amounts to its General Fund, to be applied solely in a manner which is consistent with the requirements of applicable state and federal tax law. Limited Obligation The Bonds are payable solely from the proceeds of an ad valorem tax levied by the City, and collected by the County, for the payment of principal and interest on the Bonds. Although the County is obligated to collect the ad valorem tax for the payment of the Bonds, the Bonds are not a debt of the County. PROPERTY TAXATION Property Tax Collection Procedures In California, property which is subject to ad valorem taxes is classified as "secured" or "unsecured." The "secured roll" is that part of the assessment roll containing state assessed public utilities' property and real property, the taxes on which are a lien on real property sufficient, in the opinion of the county assessor, to secure payment of the taxes. A tax levied on unsecured property does not become a lien against such unsecured property, but may become a lien on certain other property owned by the taxpayer. Every tax which becomes a lien on secured property has priority over all other liens arising pursuant to State law on such secured property, regardless of the time of the creation of the other liens. Secured and unsecured property are entered sepatately on the assessment roll maintained by the county assessor. The method of collecting delinquent taxes is substantially different for the two classifications of property. Property taxes on the secured roll are due in two installments, on November 1 and February 1 of each. fiscal year. If unpaid, such taxes become delinquent after December 10 and April 10, respectively, and a 10% penalty attaches to any delinquent payment. In addition, property on the secured roll with respect to which taxes are delinquent is declared tax defaulted on or about June 30 of the fiscal year. Such property may thereafter be redeemed by payment of the delinquent taxes and a delinquency penalty, plus a redemption penalty of 1 1/2% per month to the time of redemption. If taxes are unpaid for a period of five years or more, the property is subject to sale by the County. Property taxes are levied for each fiscal year on taxable real and personal property situated in the taxing jurisdiction as of the preceding January 1. A bill enacted in 1983, SB813 (Statutes of 1983, Chapter 498), however, provided for the supplemental assessment and taxation of property as of the occurrence of a change of ownership or completion of new construction. Thus, this legislation eliminated delays in the realization of increased property taxes from new assessments. As amended, SB813 provided increased revenue to taxing jurisdictions to the extent that supplemental assessments of new construction or changes of ownership occur subsequent to the January 1 lien date and result in increased assessed value. Property taxes on the unsecured roll are due on the January 1 lien date and become delinquent, if unpaid on the following August 31. A 10% penalty is also attached to delinquent taxes in respect of property on the unsecured roll, and further, an additional penalty of 1 1/2% per month accrues with respect to such taxes beginning the first day of the third month following -10- the delinquency date. The taxing authority has four ways of collecting unsecured personal property taxes: (1) a civil action against the taxpayer; (2) filing a certificate in the office of the county clerk specifying certain facts in order to obtain a judgment lien on certain property of the taxpayer; (3) filing a certificate of delinquency for record in the county recorder's office, in order to obtain a lien on certain property of the taxpayer; and (4) seizure and sale of personal property, improvements or possessory interests belonging or assessed to the assessee. The exclusive means of enforcing the payment of delinquent taxes in respect of property on the secured roll is the sale of the property securing the taxes for the amount of taxes which are delinquent. Taxation of State -Assessed Utility Property The State Constitution provides that most classes of property owned or used by regulated utilities be assessed by the State Board of Equalization ("SBE") and taxed locally. Property valued by the SBE as an operating unit in a primary function of the utility taxpayer is known as "unitary property". a concept designed to permit assessment of the utility as a going concern rather than assessment of each individual element of real and personal property owned by the utility taxpayer. State -assessed unitary and "operating nonunitary" property (which excludes nonunitary property of regulated railways) is allocated to the counties based on the situs of the various components of the unitary property. Except for unitary property of regulated railways and certain other excepted property, all unitary and operating nonunitary property is taxed at special county -wide rates and tax proceeds are distributed to taxing jurisdictions according to statutory formulae generally based on the distribution of taxes in the prior year. Alternative Method of Tax Apportionment - Teeter Plan The Board of Supervisors of the County has approved the implementation of the Alternative Method of Distribution of Tax Levies and Collections and of Tax Sale Proceeds (the "Teeter Plan"), as provided for in Section 4701 et seq. of the California Revenue and Taxation Code. Under the Teeter Plan, the County apportions secured property taxes on an accrual basis when due (irrespective of actual collections) to local political subdivisions, including the City, for which the County acts as the tax -levying or tax -collecting agency. Unsecured taxes are not normally covered under the Teeter Plan. The Teeter Plan was effective beginning the fiscal year commencing July 1, 1993. The County's Teeter Plan applies to the City and the Bonds. The Teeter Plan is to remain in effect unless the Board of Supervisors of the County orders its discontinuance or unless, prior to the commencement of any fiscal year of the County (which commences on July 1), the Board of Supervisors receives a petition for its discontinuance joined in by resolutions adopted by at least two-thirds of the participating revenue districts in the County, in which event the Board of Supervisors is to order discontinuance of the Teeter Plan effective at the commencement of the subsequent fiscal year. If the Teeter Plan is discontinued subsequent to its implementation, only those secured property taxes actually collected would be allocated to political subdivisions (including the City) for which the County acts as the tax -levying or tax -collecting agency. Assessed Valuations The California Constitution requires the State Board of Equalization to annually assess property, except franchises, owned or used by regulated railway, telegraph, or telephone companies, car companies operating on railways in the state, and companies transmitting or selling gas or electricity. It also requires the State Board of Equalization to annually assess -11- pipelines, flumes, canals, ditches, and aqueducts lying within two or more counties. Except for the railway car companies, the assessed values are allocated to the counties and other local tax jurisdictions in which the property is located. The taxes are levied and collected in the same manner as they are for county -assessed properties. State assessed property is assessed at its fair market value or its full value as of 12:01 a.m. January 1. The county assessor must annually assess all taxable property in the county, except for state -assessed property, to the person, business, or legal entity owning, claiming, possessing, or controlling the property on January 1. The duties of the county assessor are to discover all assessable property, to inventory and list all taxable property, to value the property, and to enroll the property on the local assessment roll. The assessed value determined and enrolled by the county assessor is multiplied by the appropriate tax rate to form the basis of the current year's tax bill. The tax rate is 1 percent plus (1) the amount necessary to make annual payments due on general obligation bonds or other indebtedness incurred prior to July 1, 1978; (2) any bonded indebtedness for the acquisition or improvement of real property approved by a two-thirds majority of voters on or after July 1, 1978; and (3) effective January 1, 2001, certain bonded indebtedness for school facilities approved by 55 percent of the voters. The collection of these taxes and their allocation to the appropriate taxing jurisdictions are functions of the county tax collector and the county auditor, respectively. Like the county assessor, these officials are governed by state law. The County Assessor of San Diego County assesses all real and personal property in the City for tax purposes except public utility property which is assessed by the State Board of Equalization. California law requires a $7,000 reduction of taxable value for qualifying owner - occupied homes. The state reim- burses local agencies for the loss in property tax revenue. The homeowner must make a simple one-time filing with the county assessor for the exemption. Personal property held for sale or lease in the ordinary course of business is exempt. "Business inventory" includes merchandise held for sale or lease, animals used in the production of food or fiber, and incidental supplies passed on to the customer. The exemption does not include property in use on the lien date (except animals) or ordinary supplies. No filing is required, but the assessor may audit the taxpayer to verify whether the property qualifies. Revenue estimated to be lost to local taxing agencies due to exemptions is reimbursed from State sources. Such reimbursement is based upon total taxes due upon such exempt values and is not reduced by any amount for estimated delinquencies. The table below shows a five-year history of the City's assessed valuation. Table 2 CITY OF NATIONAL CITY Assessed Valuations of All Taxable Property Fiscal Years 2007-08 to 2011-12 Local Secured Utility Unsecured Total 2007-08 $2,764,499,932 $4,039,249 $157,294,577 $2,925,833,758 2008-09 2,953,195,474 5,858,889 170,461,026 3,129,515,389 2009-10 2,820,539,327 5,586,456 207,380,749 3,033,506,532 2010-11 2,786,114,776 5,195,618 202,638,779 2,993,949,173 2011-12 2,787,205,706 5,195,618 203,565,939 2,995,967,263 Source: California Municipal Statistics, Inc. -12- Assessed Valuation by Land Use. The following table shows the land use of parcels in the City, according to assessed valuation. As shown, the majority of land in the City is used for residential purposes. Table 3 CITY OF NATIONAL CITY Assessed Valuation and Parcels by Land Use Fiscal Year 2011-12 Number of 2011-12 Assessed Percent of Secured Land Use Parcels Valuation A.V.(1) Single Family Residential 6,657 $ 993,090,427 35.56% Commercial 694 894,184,524 32.02 Multi Family Residential 1,489 478,416,800 17.13 Industrial 302 272,823,794 9.77 Vacant 756 74,928,161 2.68 ,'J Institutional 58 49,414,234 1.77 Recreational 45 29,543,385 1.06 Total All Secured 10,001 $2,792,401,324 100.00% (1) Based on Fiscal Year 2011-12 secured assessed valuation of $2,792,401,324. Source: Urban Futures, Inc. with information from the San Diego County 2011-12 Secured Property Tax Roll. Assessed Valuation of Single Family Residential Parcels. The following table shows a breakdown of the assessed valuations of improved single-family residential parcels in the City, according to assessed valuation. Table 4 CITY OF NATIONAL CITY Per Parcel 2011-12 Assessed Valuation of Single Family Homes (1) Improved single family residential parcels. Excludes condominiums and parcels with multiple family units. Source: California Municipal Statistics, Inc. -13- Tax Rates The table below summarizes the total ad valorem tax rates levied by all taxing entities in Tax Rate Area (which corresponds to $ of assessed valuation, which is approximately % of the City's total assessed valuation) for each $100 of assessed valuation during the fiscal years 2007-08 through 2011-12. Table 5 CITY OF NATIONAL CITY Summary of Ad Valorem Tax Rates $1 per $100 of Assessed Valuation Fiscal Years 2007-08 to 2011-12 (Tax Rate Area 6-000) Ad Valorem Tax General Tax Rate SchoofBorfds (K-12) Community College Bonds General Obligation Bonds Metro Water District Total Tax Rate 2007-08 2008-09 2009-10 2010-11t1t 2011-1211t 1.000000 1.000000 1.000000 1.00000 1.000000 0.127470 0.125670 0.147570 0.055170 0.039930 0.025320 0.059240 need 0.036350 0.014300 0.013000 0.012700 from 0.014200 0.004500 0.004300 0.004300 HdL 0.003700 1.186200 1.168290 1.223810 1.109420 (1) Tax Rate Area 006-045 used in 2010-11 and 2011-12. Source: City of National City Financial Statements, FY 2010-11, page 133 & HdL Property Tax Reports 2010-11 and 2011-12 Tax Levies and Delinquencies Because the County has adopted the Teeter Plan, the amount of ad valorem property taxes received by the City is equal to the amount levied rather than the amount collected by the County. See "- Alternative Method of Apportionment - Teeter Plan," above. -14- Major Taxpayers The following table shows the twenty largest taxpayers in the City as determined by their secured assessed valuations in 2011-12: Table 6 CITY OF NATIONAL CITY Largest 2011-12 Local Secured Taxpayers Property Owner Rocky Mountain Chocolate PVHR LLC /Adventist Health Pasha Automotive Services Plaza II Bonita LP Plaza Bonita LP Mpt Of Paradise Valley LP Sweetwater Associates LP Dixieline Lumber Company Williams G W Company Prime Healthcare Svcs Foun Inc. Total 2011-12 Secured Assessed Valuation $129,536,153 57,480,830 42,291,632 35,926,636 34,815,887 29,416,894 23,007,972 22,852,802 22,683,186 21,912,097 $419,924,089 Primary Land Use Commercial Commercial Industrial Commercial Commercial Institutional Commercial Commercial Multi Family Residential Institutional Percentage ofAV(1) 4.64% 2.06 1.51 1.29 1.25 1.05 0.82 0.82 0.81 0.78 15.04% (1) Based on Fiscal Year 2011-12 secured assessed valuation of $2,792,401,324 Source: Urban Futures, Inc. with information from the San Diego County 2011-12 Secured Property Tax Roll. Direct and Overlapping Debt Set forth below is a direct and overlapping debt report (the "Debt Report") prepared by California Municipal Statistics, Inc. and effective 1, 2012. The Debt Report is included for general information purposes only. The City has not reviewed the Debt Report for completeness or accuracy and makes no representation in connection therewith. The Debt Report generally includes long-term obligations sold in the public credit markets by public agencies whose boundaries overlap the boundaries of the City in whole or in part. Such Tong -term obligations generally are not payable from revenues of the City (except as indicated) nor are they necessarily obligations secured by land within the City. In many cases, long-term obligations issued by a public agency are payable only from the general fund or other revenues of such public agency. The contents of the Debt Report are as follows: (1) the first column indicates the public agencies which have outstanding debt as of the date of the Debt Report and whose territory overlaps the City; (2) the second column shows the percentage that the City's assessed valuation represents of the total assessed valuation of each public agency identified in the first column; and the third column is an apportionment of the dollar amount of each public agency's outstanding debt to property in the City, as determined by multiplying the total outstanding debt of each agency by the percentage of the City's assessed valuation represented in the second column. -15- Table 7 CITY OF NATIONAL CITY STATEMENT OF DIRECT AND OVERLAPPING BONDED DEBT (As of 1, 2012) Source: California Municipal Statistics, Inc. -16- CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES AND APPROPRIATIONS Article XIIIA of the State Constitution Article XIIIA of the State Constitution, known as Proposition 13, was approved by the voters in June 1978 and has been amended on occasions, including most recently on November 7, 2000 to reduce the voting percentage required for the passage of school bonds. Section I(a) of Article XIIIA limits the maximum ad valorem tax on real property to 1% of "full cash value," and provides that such tax shall be collected by the counties and apportioned according to State statutes. Section I(b) of Article XIIIA provides that the 1% limitation does not apply to ad valorem taxes levied to pay interest or redemption charges on any (1) indebtedness approved by the voters prior to July 1, 1978, (2) bonded indebtedness for the acquisition or improvement of real property approved on or after July 1, 1978, by two-thirds of the votes cast by the voters voting on the proposition and (3) bonded indebtedness incurred by a school district, community college district or county office of education for the construction, reconstruction, rehabilitation or replacement of school facilities, including the furnishing and equipping of school facilities or the acquisition or lease of real property for schooi facilities, approved by 55 percent of the voters voting on the proposition. Section 2 of Article XIIIA defines "full cash value" to mean the county assessor's valuation of real property as shown on the 1975-76 Fiscal Year tax bill, or thereafter, the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred. The full cash value may be adjusted annually to reflect inflation at a rate not to exceed 2% per year, or to reflect a reduction in the consumer price index or comparable data for the taxing jurisdiction, or may be reduced in the event of declining property value caused by substantial damage, destruction or other factors. See "Litigation Relating to Two Percent Limitation" below. Legislation implementing Article XIIIA provides that, notwithstanding any other law, local agencies may not levy any ad valorem property tax except to pay debt service on indebtedness approved by the voters as described above. Such legislation further provides that each county will levy the maximum tax permitted by Article XIIIA, which is $1.00 per $100 of assessed market value. Since its adoption, Article XIIIA has been amended a number of times. These amendments have created a number of exceptions to the requirement that property be reassessed when it is purchased, newly constructed or undergoes a change in ownership. These exceptions include certain transfers of real property between family members, certain purchases of replacement dwellings for persons over age 55 and by property owners whose original property has been destroyed in a declared disaster, and certain improvements to accommodate disabled persons and for seismic upgrades to property. These amendments have resulted in marginal reductions in the property tax revenues of the City. Both the State Supreme Court and the United States Supreme Court have upheld the validity of Article XIIIA. Article XIIIB of the State Constitution In addition to the limits Article XIIIA imposes on property taxes that may be collected by local governments, certain other revenues of the State and most local governments are subject to an annual "appropriations limit" imposed by Article XIIIB which effectively limits the amount of such revenues those entities are permitted to spend. Article XIIIB, approved by the voters in July 1979, was modified substantially by Proposition 111 in 1990. The appropriations limit of -17- 7 each government entity applies to "proceeds of taxes," which consist of tax revenues, State subventions and certain other funds, including proceeds from regulatory licenses, user charges or other fees to the extent that such proceeds exceed "the cost reasonably borne by such entity in providing the regulation, product or service." "Proceeds of taxes" excludes tax refunds and some benefit payments such as unemployment insurance. No limit is imposed on the appropriation of funds which are not "proceeds of taxes," such as reasonable user charges or fees, and certain other non -tax funds. Article XIIIB also does riot limit appropriation of local revenues to pay debt service on bonds existing or authorized by January 1, 1979, or subsequently authorized by the voters, appropriations required to comply with mandates of courts or the federal government, appropriations for qualified capital outlay projects, and appropriation by the State of revenues derived from any increase in gasoline taxes and motor vehicle weight fees above January 1, 1990 levels. The appropriations limit may also be exceeded in case of emergency; however, the appropriations limit for the next three years following such emergency appropriation must be reduced to the extent by which it was exceeded, unless the emergency arises from civil disturbance or natural disaster declared by the Governor, and the expenditure is approved by two-thirds of the legislative body of the local government. The State and each local government entity has its own appropriations limit. Each year, the limit is adjusted to allow for changes, if any, in the cost of living, the population of the jurisdiction, and any transfer to or from another government entity of financial responsibility for providing services. Proposition 111 requires that each agency's actual appropriations be tested against its limit every two years. If the aggregate "proceeds of taxes" for the preceding two-year period exceeds the aggregate limit, the excess must be returned to the agency's taxpayers through tax rate or fee reductions over the following two years. Proposition 62 On November 4, 1986, California voters adopted Proposition 62, which requires that (i) any local tax for general governmental purposes (a "general tax") must be approved by a majority vote of the electorate; (ii) any local tax for specific purposes (a "special tax") must be approved by a two-thirds vote of the electorate; (iii) any general tax must be proposed for a vote by two-thirds of the legislative body; and (iv) proceeds of any tax imposed in violation of the vote requirements must be deducted from the local agency's property tax allocation. Most of the provisions of Proposition 62, which was a statutory initiative, were affirmed by the 1995 California Supreme Court decision in Santa Clara County Local Transportation Authority v. Guardino, which invalidated a special sales tax for transportation purposes because fewer than two-thirds of the voters voting on the measure had approved the tax. The City believes that none of its general fund revenues are subject to challenge under Proposition 62. Article XIIIC and XIIID of the State Constitution General. On November 5, 1996, the voters of the State approved Proposition 218, known as the "Right to Vote on Taxes Act." Proposition 218 adds Articles XIIIC and XIIID to the California Constitution and contains a number of interrelated provisions affecting the ability of the City to levy and collect both existing and future taxes, assessments, fees and charges. -18- On November 2, 2010, California voters approved Proposition 26, entitled the "Supermajority Vote to Pass New Taxes and Fees Act". Section 1 of Proposition 26 declares that Proposition 26 is intended to limit the ability of the State Legislature and local government to circumvent existing restrictions on increasing taxes by defining the new or expanded taxes as "fees." Proposition 26 amended Articles XIIIA and XIIIC of the State Constitution. The amendments to Article XIIIA limit the ability of the State Legislature to impose higher taxes (as defined in Proposition 26) without a two-thirds vote of the Legislature. The amendments to Article XIIIC define "taxes" that are subject to voter approval as "any levy, charge, or exaction of any kind imposed by a local government," with certain exceptions. Taxes. Article XIIIC requires that all new local taxes be submitted to the electorate before they become effective. Taxes for general governmental purposes of the City ("general taxes") require a majority vote; taxes for specific purposes ("special taxes"), even if deposited in the City's General Fund, require a two-thirds vote. The voter approval requirements of Article XIIIC reduce the flexibility of the City to raise revenues for the General Fund, and no assurance can be given that the City will be able to impose, extend.or increase such taxes in the future to meet increased expenditure needs. Property -Related Fees and Charges. Article XIIID also adds several provisions making it generally more difficult for local agencies to levy and maintain property -related fees, charges, and assessments for municipal services and programs. These provisions include, among other things, (i) a prohibition against assessments which exceed the reasonable cost of the proportional special benefit conferred on a parcel, (ii) a requirement that assessments must confer a "special benefit," as defined in Article XIIID, over and above any general benefits conferred, (iii) a majority protest procedure for assessments which involves the mailing of notice and a ballot to the record owner of each affected parcel, a public hearing and the tabulation of ballots weighted according to the proportional financial obligation of the affected party, and (iv) a prohibition against fees and charges which are used for general governmental services, including police, fire or library services, where the service is available to the public at large in substantially the same manner as it is to property owners. Reduction or Repeal of Taxes, Fees and Charges. Article XIIIC also removes limitations on the initiative power in matters of reducing or repealing local taxes, assessments, fees or charges. No assurance can be given that the voters of the City will not, in the future, approve an initiative or initiatives which reduce or repeal local taxes, assessments, fees or charges currently comprising a substantial part of the City's General Fund. If such repeal or reduction occurs, the City's ability to pay debt service on the Bonds could be adversely affected. Burden of Proof. Article XIIIC provides that local government "bears the burden of proving by a preponderance of the evidence that a levy, charge, or other exaction is not a tax, that the amount is no more than necessary to cover the reasonable costs of the governmental activity, and that the manner in which those costs are allocated to a payor bear a fair or reasonable relationship to the payor's burdens on, or benefits received from, the governmental activity." Similarly, Article XIIID provides that in "any legal action contesting the validity of a fee or charge, the burden shall be on the agency to demonstrate compliance" with Article XIIID. Impact on City's General Fund. The approval requirements of Articles XIIIC and XIIID reduce the flexibility of the City to raise revenues for the General Fund, and no assurance can be given that the City will be able to impose, extend or increase the taxes, fees, charges or taxes in the future that it may need to meet increased expenditure needs. -19- �9 The City does not believe that any material source of General Fund revenue is subject to challenge under Proposition 218 or Proposition 26. Judicial Interpretation. The interpretation and application of Articles XIIIC and XIIID will ultimately be determined by the courts with respect to a number of the matters discussed below, and it is not possible at this time to predict with certainty the outcome of such determination. Proposition IA; Proposition 22; Proposition 26 Proposition IA. Proposition 1A, proposed by the Legislature in connection with the State's fiscal year 2004-05 Budget, approved by the voters in November 2004 and generally effective in fiscal year 2006-07, provided that the State may not reduce any local sales tax rate, limit existing local government authority to levy a sales tax rate or change the allocation of local sales tax revenues, subject to certain exceptions. Proposition 1A generally prohibited the State from shifting to schools or community colleges any share of property tax revenues allocated to local governments for any fiscal year, as set forth under the laws in effect as of November 3, 2004. Any change in the allocation of property tax revenues among local governments within a county had to be approved by two-thirds of both houses of the Legislature. Proposition 1A provided, however, that beginning in fiscal year 2008-09, the State may shift to schools and community colleges up to 8% of local government property tax revenues, which amount must be repaid, with interest, within three years, if the Governor proclaimed that the shift is needed due to a severe state financial hardship, the shift was approved by two-thirds of both houses and certain other conditions were met. The State could also approve voluntary exchanges of local sales tax and property tax revenues among local governments within a county. See the section entitled "RISK FACTORS — Impact of State Budget on City Revenues" for information about the State's fiscal year 2009-10 budget and a shift of local property revenues under Proposition 1A (which must be repaid within three years). The City participated in the Proposition 1A securitization program, and received 100% of the amount of the property tax reduction, so no money is due to the City. Proposition 22. Proposition 22, entitled "The Local Taxpayer, Public Safety and Transportation Protection Act," was approved by the voters of the State in November 2010. Proposition 22 eliminates or reduces the State's authority to (i) temporarily shift property taxes from cities, counties and special districts to schools, (ii) use vehicle license fee revenues to reimburse local governments for State -mandated costs (the State will have to use other revenues to reimburse local governments), (iii) redirect property tax increment from redevelopment agencies to any other local government, (iv) use State fuel tax revenues to pay debt service on State transportation bonds, or (v) borrow or change the distribution of State fuel tax revenues. The City expects Proposition 22 to result in more stable revenues for the City. Proposition 26. Proposition 26, or the "Supermajority Vote to Pass New Taxes and Fees Act," which was passed by the voters of the State of California on November 2, 2010, requires a two-thirds vote to approve State laws that increase taxes, even if the law does not increase State revenues, and would repeal recent State laws that conflict with the measure, unless subsequently approved by two-thirds of each house of the Legislature. In addition, -20- Proposition 26 categorizes certain fees and charges imposed by government as taxes requiring two-thirds approval at the State level or two-thirds voter approval at the local level. For example, regulatory fees and certain business assessments that are now approved with a majority vote of the local governing body would be considered taxes requiring two-thirds voter approval. The Legislative Analyst's Office ("LAO") states in its analysis of Proposition 26 that Proposition 26 will make it more difficult for the State and local governments to pass new laws to raise revenues and could result in a major decrease in State and local revenues and spending, depending upon future actions of the Legislature, local governing bodies, and local voters. Additionally, in its analysis of Proposition 26, the LAO states that Proposition 26 will not apply to fees imposed by local governments that are in effect as of November 2, 2010, but will apply to future increase or extensions of those fees. The City is reviewing Proposition 26 to determine the potential impact on the City. The interpretation and application of Proposition 26 will ultimately be determined by the courts, and it is not possible at this time to predict with certainty the outcome of such determination. Unitary Property AB 454 (Chapter 921, Statutes of 1986) provides that revenues derived from most utility property assessed by the State Board of Equalization ("Unitary Property"), commencing with the 1988-89 fiscal year, will be allocated as follows: (i) each jurisdiction will receive up to 102% of its prior year State -assessed revenue; and (ii) if county -wide revenues generated from Unitary Property are less than the previous year's revenues or greater than 102% of the previous year's revenues, each jurisdiction will share the burden of the shortfall or benefit of the excess revenues by a specified formula. This provision applies to all Unitary Property except railroads, whose valuation will continue to be allocated to individual tax rate areas. The provisions of AB 454 do not constitute an elimination of the assessment of any State -assessed properties nor a revision of the methods of assessing utilities by the State Board of Equalization. Generally, AB 454 allows valuation growth or decline of Unitary Property to be shared by all jurisdictions in a county. Future Initiatives Article XIIIA, Article XIIIB, Article XIIIC, Article XIIID and Proposition 62 were each adopted as measures that qualified for the ballot through California's initiative process. From time to time other initiative measures could be adopted, further affecting the City's revenues. -21- TAX MATTERS Federal Tax Status. In the opinion of Jones Hall, A Professional Law Corporation, San Francisco, California, Bond Counsel, subject, however to the qualifications set forth below, under existing law, the interest on the Bonds is excluded from gross income for federal income tax purposes and such interest is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations, provided, however, that, for the purpose of computing the alternative minimum tax imposed on corporations (as defined for federal income tax purposes), such interest is taken into account in determining certain income and earnings. The opinions set forth in the preceding paragraph are subject to the condition that the [Issuer] comply with all requirements of the Internal Revenue Code of 1986, as amended (the "Tax Code") that must be satisfied subsequent to the issuance of the Bonds. The [Issuer] has covenanted to comply with each such requirement. Failure to comply with certain of such requirements may cause the inclusion of such interest in gross income for federal income tax purposes to be retroactive to the date of issuance of the Bonds. Tax Treatment of Original Issue Discount and Premium. If the initial offering price to the public (excluding bond houses and brokers) at which a Bond is sold is less than the amount payable at maturity thereof, then such difference constitutes "original issue discount" for purposes of federal income taxes and State of California personal income taxes. If the initial offering price to the public (excluding bond houses and brokers) at which a Bond is sold is greater than the amount payable at maturity thereof, then such difference constitutes "original issue premium" for purposes of federal income taxes and State of California personal income taxes. De minimis original issue discount and original issue premium is disregarded. Under the Tax Code, original issue discount is treated as interest excluded from federal gross income and exempt from State of California personal income taxes to the extent properly allocable to each owner thereof subject to the limitations described in the first paragraph of this section. The original issue discount accrues over the term to maturity of the Bond on the basis of a constant interest rate compounded on each interest or principal payment date (with straight- line interpolations between compounding dates). The amount of original issue discount accruing during each period is added to the adjusted basis of such Bonds to determine taxable gain upon disposition (including sale, redemption, or payment on maturity) of such Bond. The Tax Code contains certain provisions relating to the accrual of original issue discount in the case of purchasers of the Bonds who purchase the Bonds after the initial offering of a substantial amount of such maturity. Owners of such Bonds should consult their own tax advisors with respect to the tax consequences of ownership of Bonds with original issue discount, including the treatment of purchasers who do not purchase in the original offering, the allowance of a deduction for any loss on a sale or other disposition, and the treatment of accrued original issue discount on such Bonds under federal individual and corporate alternative minimum taxes. Under the Tax Code, original issue premium is amortized on an annual basis over the term of the Bond (said term being the shorter of the Bond's maturity date or its call date). The amount of original issue premium amortized each year reduces the adjusted basis of the owner of the Bond for purposes of determining taxable gain or loss upon disposition. The amount of original issue premium on a Bond is amortized each year over the term to maturity of the Bond on the basis of a constant interest rate compounded on each interest or principal payment date (with straight-line interpolations between compounding dates). Amortized Bond premium is not -22 deductible for federal income tax purposes. Owners of premium Bonds, including purchasers who do not purchase in the original offering, should consult their own tax advisors with respect to State of California personal income tax and federal income tax consequences of owning such Bonds. California Tax Status. In the further opinion of Bond Counsel, interest on the Bonds is exempt from California personal income taxes. Other Tax Considerations. Owners of the Bonds should also be aware that the ownership or disposition of, or the accrual or receipt of interest on, the Bonds may have federal or state tax consequences other than as described above. Bond Counsel expresses no opinion regarding any federal or state tax consequences arising with respect to the Bonds other than as expressly described above. Form of Opinion. The proposed form of opinion of Bond Counsel for the Bonds is attached hereto as APPENDIX C. CERTAIN LEGAL MATTERS The legal opinion of Jones Hall, A Professional Law Corporation, San Francisco, California, Bond Counsel, approving the validity of the Bonds, in substantially the form attached hereto as APPENDIX C, will be made available to purchasers at the time of original delivery of the Bonds. Jones Hall, A Professional Law Corporation, is also serving as Disclosure Counsel to the City. Payment of fees of Bond Counsel and Disclosure Counsel is contingent upon the issuance of the Bonds. ABSENCE OF MATERIAL LITIGATION No litigation is pending or threatened concerning the validity of the Bonds, and a certificate to that effect will be furnished to purchasers at the time of the original delivery of the Bonds. The City is not aware of any litigation pending or threatened questioning the political existence of the City or contesting the City's ability to receive ad valorem taxes or to collect other revenues or contesting the City's ability to issue and retire the Bonds. FINANCIAL ADVISOR Urban Futures, Inc., Orange, California, has served as financial advisor (the "Financial Advisor") to the City with respect to the sale of the Bonds. The Financial Advisor is an independent advisory firm and is not engaged in the business of underwriting, trading or distributing municipal or other public securities. UNDERWRITING The Bonds are being purchased by Estrada Hinojosa & Company, Inc. (the "Underwriter") pursuant to a bond purchase agreement with respect to the Bonds. The Underwriter has agreed to purchase the Bonds from the City at the purchase price of $ representing the par amount of the Bonds, being $ , plus original -23- issue premium of $ , less an underwriter's discount of $ , and less costs of issuance in the amount of $ which the Underwriter has agreed to pay. The Underwriter is committed to purchase all (but not less than all) of the Bonds. RATING Standard & Poor's Credit Market Services, a division of The McGraw Hill Companies, Inc. ("S&P") has assigned its municipal bond rating of " " to the Bonds. The rating reflects only the views of such organization, and an explanation of the significance of such rating may be obtained from S&P. There is no assurance that the rating will continue for any given period of time or that they will not be revised downward or withdrawn entirely by such rating agency, if, in the judgment of such rating agency, circumstances so warrant. Any such downward revision or withdrawal of such rating may have an adverse effect on the market price of the Bonds. CONTINUING DISCLOSURE The City will covenant for the benefit of owners of the Bonds to provide certain financial information and operating data relating to the City by not later than March 31 after the end of each fiscal year of the City (currently June 30`h), commencing with the report for the 2011-12 fiscal year (the "Annual Report"), and to provide notices of the occurrence of certain listed events. The specific nature of the information to be contained in the Annual Report or the notices of certain events is summarized in "APPENDIX D - FORM OF CONTINUING DISCLOSURE CERTIFICATE," attached to this Official Statement. These covenants have been made in order to assist the Underwriter (as defined below) in complying with Securities Exchange Commission Rule 15c2-12(b)(5) (the "Rule"). The City has complied with all of its material obligations under existing continuing disclosure undertakings during the past five years. [CONFIRM] MISCELLANEOUS At the time of delivery and payment for the Bonds, an authorized representative of the City will deliver a certificate stating that to the best of his knowledge this Official Statement does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements herein, in light of the circumstances under which they were made, not misleading. Such certificate will also certify that to the best of his knowledge from the date of this Official Statement to the date of such delivery and payment there was no material adverse change in the information set forth herein. City. The execution and delivery of this Official Statement has been duly authorized by the -24- CITY OF NATIONAL CITY By: City Manager APPENDIX A CITY AND COUNTY GENERAL AND ECONOMIC DATA General Description The City. The City of National City (the "City") is situated in the southwestern coastal area of San Diego County, facing the San Diego Bay. The City lies adjacent to the cities of San Diego and Chula Vista. The City's boundaries encompass approximately nine square miles. The County. The County of San Diego (the "County") is the southern -most county in California. The County covers an area of approximately 4,280 square miles, about the size of the state of Connecticut. The County is bordered by the Pacific Ocean to the west, Orange and Riverside Counties to the north, Imperial County to the east, and the State of Baja California, Mexico to the south. The County includes 70 miles of the Pacific Ocean coastline, the Anza- Borrego Desert, which forms the eastern third of the county, the Laguna Mountains, the San Diego Bay, one of the world's largest natural deep -water harbors, and the San Diego International Airport. Population The following table lists population figures for the San Diego County for the last five calendar years. SAN DIEGO COUNTY Population Estimates Calendar Years 2007 through 2011 2007 2008 2009 2010 2011 Carlsbad 101,337 103,406 105,055 105,432 106,555 Chula Vista 227,723 230,397 234,011 244,269 246,496 Coronado 22,957 23,030 23,158 23,092 23,011 Del Mar 4,548 4,561 4,609 4,168 4,187 El Cajon 97,255 97,555 98,512 99,684 100,116 Encinitas 63,259 63,615 64,393 59,628 59,910 Escondido 141,788 143,259 145,388 144,125 145,196 Imperial Beach 27,709 28,092 28,351 26,367 26,459 La Mesa 56,250 56,445 57,096 57,184 58,041 Lemon Grove 25,451 25,511 25,748 25,370 25,478. National City 61,115 56,144 56,730 58,699 58,785 Oceanside 176,644 178,102 180,376 167,241 168,173 Poway 50,830 50,744 51,322 47,903 48,155 San Diego 1,316,837 1,333,617 1,359,132 1,301,535 1,311,882 San Marcos 79,812 82,419 83,468 83,900 84,734 Santee 55,158 55,850 57,064 53,456 54,183 Solana Beach 13,418 13,447 13,600 12,896 12,945 Vista 94,962 95,400 96,455 94,020 94,431 Total Unincorporated 481,216 489,958 500,994 482 610 490,139 Total County 3,098,269 3,131,552 3,185,462 3,091,579 3,118,876 Source: State Department of Finance estimates (as of January 1). A-1 Employment The City is included in the San Diego Metropolitan Statistical Area ("MSA"), which includes all of San Diego County. Set forth below is data from calendar years 2007 through 2011, reflecting the County's civilian labor force, employment and unemployment. These figures are county -wide statistics and may not necessarily accurately reflect employment trends in the City. Annual information is not yet available for 2012. SAN DIEGO COUNTY Civilian Labor Force, Employment and Unemployment (Annual Averages) 2007 2008 2009 2010 2011 Civilian Labor Force (1) 1,531,200 1,566,200 1,560,000 1,557,500 1,583,800 Employment 1,461,500 1,472,400 1,435,200 1,393,200 1,426,100 Unemployment 69,700 93,800 124,800 164,300 157,700 Unemployment Rate 4.6% 6.0% 8.0% 10.6% 10.0% Wage and Salary Employment: (2) Agriculture 1,319,700 1,309, 300 1,240,900 10,500 10,000 Mining and Logging 10,900 10,500 9,500 400 400 Construction 400 400 400 55,300 55,200 Manufacturing 87,000 76,100 61,100 92,900 92,800 Wholesale Trade 102,500 102,800 95,300 40,100 40,700 Retail Trade 45,500 44,900 40,600 130,700 132,200 Transportation, Warehousing and Utilities 148,100 142,000 131,600 26,500 26,100 Information 28,800 29,000 27,400 25,100 24,000 Finance and Insurance 31,300 31,400 28,200 41,300 41,600 Real Estate and Rental and Leasing 50,200 46,100 43,300 25,900 25,300 Professional and Business Services 30,100 29,200 26,500 207,700 211,500 Educational and Health Services 223,200 222,300 206,800 145,500 149,100 Leisure and Hospitality 129,500 137,300 144,300 154,800 156,900 Other Services 161,800 164,000 154,800 46,200 47,100 Federal Government 48,300 48,400 46,800 47,000 46,700 State Government 40,900 41,600 43,700 42,500 43,100 Local Government 40,500 41,800 42,000 140,900 138,700 Total, All Industries (3) 1,319,700 1,309,300 1,240,900 1,233,300 1,241,200 (1) Labor force data is by place of residence; includes self-employed individuals, unpaid family workers, household domestic workers, and workers on strike. (2) Industry employment is by place of work; excludes self-employed individuals, unpaid family workers, household domestic workers, and workers on strike. (3) Totals may not add due to rounding. Source: State of California Employment Development Department. A-2 The following table lists the major employers in the County as of January 1, 2012. Employer Name Barona Casino Callaway Golf Co Fleet Anti -Submarine Warfare General Dynamics NASSCO Goodrich Aerostructures Group Marine Corps Recruit Depot Merchants Building Maintenance Palomar Medical Ctr Palomar Pomerado Health Rehab San Diego County Sheriff San Diego Naval Medical Center San Diego Zoo Scripps Research Institute Sea World San Diego Sharp Mary Birch Hosp-Women Sharp Memorial Hospital Sharp Rees-Stealy Medical Center Solar Turbines Inc Sycuan Casino Tri-City Medical Center Tri-Union Seafoods US Post Office Viejas Casino & Outlet Center SAN DIEGO COUNTY Major Employers Location Lakeside Carlsbad San Diego San Diego Chula Vista San Diego San Diego Escondido Escondido Santee San Diego San Diego La Jolla San Diego San Diego San Diego San Diego San Diego El Cajon Oceanside San Diego San Diego Alpine Industry Casinos Golf Equipment & Supplies -Wholesale Government Offices -Us Ship Builders & Repairers (Mfrs) Aircraft Components -Manufacturers Military Bases Janitor Service Hospitals Rehabilitation Services Police Departments Military Bases Zoos Schools -Universities & College:: Academic Amusement & Theme Parks Hospitals Hospitals Hospitals Turbines -Manufacturers Casinos Schools -Universities & Colleges Academic Food Products (Whls) Post Offices Casinos Source: California Employment Development Dept, America's Labor Market Information System (ALMIS) Employer Database, 2012 1' Edition. A-3 Construction Activity The following tables show valuation summaries of building permits issued in the City and the County for the years 2006 through 2010. Permit Valuation: New Single-family New Multi -family Res. Alterations/Additions Total Residential New Commercial New Industrial New Other Com. Alterations/Additions Total Nonresidential CITY OF NATIONAL CITY Building Permit Valuation (Dollars in Thousands) 2006 2007 2008 2009 2010 $18,194.9 $15,337.5 $5,806.6 $1,974.1 $889.6 8,513.9 0.0 45,640.1 0.0 0.0 5,384.2 9,414.3 2,237.4 591.9 1,201.8 32,093.0 24,751.8 53,684.1 2,566.0 2,091.4 4,892.8 4,526.4 1,080.1 344.0 800.0 0.0 0.0 0.0 0.0 0.0 1,757.7 339.4 6,366.2 62.1 131.4 7,266.9 12,237.1 13,817.8 2.232.9 2,522.5 13,917.4 17,102.9 21,641.1 2,639.0 3,453.9 New Dwelling Units: Single Family 101 68 29 9 7 Multiple Family 97 0 433 0 0 TOTAL 198 68 462 9 7 Source: Construction Industry Research Board, Building Permit Summary. Permit Valuation: New Single-family New Multi -family Res. Alterations/Additions Total Residential New Commercial New Industrial New Other Com. Alterations/Additions Total Nonresidential SAN DIEGO COUNTY Building Permit Valuation (Dollars in Thousands) 2006 2007 2008 2009 2010 $1,373,554.8 $1,052,192.7 $754,716.8 $550,409.3 $648,573.3 736,965.1 485,049.3 319,304.3 132,230.1 127,847.4 360,168.1 315,137.1 265 , 223.7 196,061.6 198,064.4 2,470,688.0 1,852,379.1 1,339,244.8 878,701.D 974,485.1 668,762.5 596,981.4 338,667.4 91,590.6 95,031.3 153,474.4 118,401.6 57,119.9 25,699.0 7,863.9 252,359.3 191,114.0 165,385.3 123,633.3 124,348.3 547 014.1 510 327.4 500,628.1 343,041.2 431,623.4 $1,621,610.2 1,416,824.4 1,061,800.6 583,964.1 658,867.0 New Dwelling Units: Single Family 4,753 3,503 2,352 1786 2,254 Multiple Family 6 024 3 942 22 802 1204 1 092 TOTAL 10,777 7,445 5,154 2990 3,346 Source: Construction Industry Research Board, Building Permit Summary. A-4 Commercial Activity In 2009, the State Board of Equalization converted the business codes of sales and use tax permit holders to North American Industry Classification System codes. As a result of the coding change, data for 2009 and 2010 is not comparable to that of prior years. A summary of historic taxable sales within the City during the past five years in which data is available is shown in the following table. Total taxable sales during calendar year 2010 in the City were reported to be $1.13 billion, a 7.2% increase over the total taxable sales of $1.05 billion reported during calendar year 2009. Figures are not yet available for 2011. CITY OF NATIONAL CITY Number of Permits and Valuation of Taxable Transactions ($000's) Retail Stores Total All Outlets Number . n::a`;le Number Taxable of Permits Transactions of Permits Transactions 2006 1,286 1,330,336 2,118 1,510,206 2007 1,169 1,228,611 1,898 1,394,601 2008 1,159 898,221 2,498 1,095,026 2009 (1) 1,200 892,625 1,679 1,054,258 2010 i'1 1,295 958,855 1,762 1,129,833 (1) Not comparable to prior years. "Retail" category now includes "Food Services". Source: California State Board of Equalization, Taxable Sales in California (Sales & Use Tax). During calendar year 2010, total taxable transactions in the County were reported to be $41.6 billion, a 4.8% increase over the total taxable transactions of $39.7 billion that were reported in the County during calendar year 2009. A summary of historic taxable sales within the County during the past five years for which data is available is shown in the following table. Figures are not yet available for 2011. SAN DIEGO COUNTY Number of Permits and Valuation of Taxable Transactions ($000's) Retail Stores Total All Outlets Number Taxable Number Taxable of Permits Transactions of Permits Transactions 2006 42,359 $34,619,067 91,251 $47,835,514 2007 40,011 34,038,545 85,341 47,485,988 2008 41,695 31,715,672 87,050 45,329,136 2009 (I) 52,808 27,958,518 80,595 39,728,657 2010(1) 55,462 29,475,489 83,194 41,623,636 (1) Not comparable to prior years. "Retail" category now includes "Food Services". Source: Califomia State Board of Equalization, Taxable Sales in California (Sales & Use Tax). A-5 Effective Buying Income "Effective Buying Income" is defined as personal income Tess personal tax and nontax payments, a number often referred to as "disposable" or "after-tax" income. Personal income is the aggregate of wages and salaries, other labor -related income (such as employer contributions to private pension funds), proprietor's income, rental income (which includes imputed rental income of owner -occupants of non -farm dwellings), dividends paid by corporations, interest income from all sources, and transfer payments (such as pensions and welfare assistance). Deducted from this total are personal taxes (federal, state and local), nontax payments (fines, fees, penalties, etc.) and personal contributions to social insurance. According to U.S. government definitions, the resultant figure is commonly known as "disposable personal income." The following table summarizes the total effective buying income for San Diego County, the State and the United States for 2006 through 2010. SAN DIEGO COUNTY Effective Buying Income 2006 through 2010 Year Area Total Effective Buying Income (000's Omitted) 2006 City of National City $ 661,505 San Diego County 66,110,993 California 764,120,963 United States 6,107,092,244 2007 City of National City San Diego County California United States 2008 City of National City San Diego County California United States 2009 City of National City San Diego County California United States 2010 City of National City San Diego County California United States Source: Neilson & Co., Inc. $ 677,558 71,339,303 814,894,438 6,300,794,040 $ 642,998 72,630,155 832,531,445 6,443,994,426 $ 685,375 74,134,315 844,823,319 6,571,536,768 $ 639,270 70,231,474 801,393,028 6,365,020,076 A-6 Median Household Effective Buying Income $31,412 47,368 46,275 41,255 $32,996 50,024 48,203 41,792 $32,979 50,383 48,952 42,303 $33,838 51,733 49,736 43,252 $31,518 48,248 47,177 41,368 CI 0 Transportation Surface, sea and air transportation facilities serve County residents and businesses. Interstate 5 parallels the coast from Mexico to the Los Angeles Area and points north. Interstate 15 runs inland, leading to Riverside -San Bernardino, Las Vegas, and Salt Lake City. Interstate 8 runs eastward through the southern United States. San Diego's International Airport (Lindbergh Field) is located approximately one mile west of the downtown area at the edge of San Diego Bay. The facilities are owned and maintained by the San Diego Airport Authority and are leased to commercial airlines and other tenants. The airport is California's third most active commercial airport, served by 20 major airlines. In addition to San Diego International Airport, there are several general aviation airports located in the County, including McClellan -Palomar Airport in Imperial Beach. Services The City provides a full range of municipal services, including police and fire protection, sanitation services, the construction and maintenance of streets and public infrastructure, library services, recreational activities and cultural events. MUNICIPAL GOVERNMENT The City is a general law city of the State of California. The City was incorporated on September 17, 1887 and operates under a Council -Manager form of government. The City's political and legislative body is the City Council and is empowered by the general laws of the State of California to formulate citywide policy, including a fiscal program, City services and appointment of City Manager and City Attorney. It approves all ordinances, resolutions and major contracts, modifies and approves the budget. All major changes in direction or emphasis and organizational changes must be approved by the City Council. It sets the policy, and the City Manager and staff enforce the laws and implement the programs and policies. The City Council consists of four members who are elected by popular vote to serve a four-year term, and a mayor elected by a popular vote to serve a four-year term. Elections are held every two years. The City Clerk and The City Treasurer are also elective city administrative positions. The Mayor and current members of the City Council, together with their office and the date their term expires, are listed below: Name Office Term Expires Ron Morrison Mayor December 2014 Alejandra Sotelo-Solis Vice Mayor December 2012 Luis Natividad Councilmember December 2014 Mona Rios Councilmember December 2014 Rosalie Zarate Councilmember December 2012 The City Manager is appointed by the City Council and serves as the Council's pleasure as administrative head of the City. The City Manager is responsible for appointment of all City employees, except the City Attorney, who is appointed by the City Council. A-7 Leslie Deese is the City Manager. Previously, Ms. Deese served as the Assistant City Manager and prior to that, she was City's Community Services Director. Ms. Deese earned her Masters Degree in Business Administration from National University. Claudia G. Silva, Esq., is the appointed City Attorney. Ms. Silva was appointed in July of 2010. Prior to that appointment, Ms. Silva served as a Senior Assistant City Attorney. Ms. Silva has been in practice for over 18 years. Her career has been in municipal law serving public entities. Tina Norrdin is the Financial Services Officer for the City. She is a certified public accountant and has served the City since . Previously, Ms. Norrdin was employed by . She is a graduate of Budget Process The fiscal year of the City begins on the first day of July of each year and ends on the 30th day of June of the following year. At such date as the City Manager determines, each department head must furnish to the City Manager an estimate of revenues and expenditures for such department for the ensuing fiscal year, detailed in such manner as may be prescribed by the City Manager. In preparing the proposed budget, the City Manager review the estimates, holds conferences thereon with the respective department heads, and revises the estimates as the City Manager deems advisable. Prior to the beginning of each fiscal year, the City Manager submits to the City Council the proposed budget. After reviewing and making such revisions as it deems advisable, the City Council determines the time for the holding of a public hearing thereon and causes to be published a notice thereof not less than ten days prior to the hearing date. Copies of the proposed budget are available for inspection by the public in the office of the City Clerk at not less than ten days prior to the hearing. At the conclusion of the public hearing, the City Council further considers the proposed budget and makes revisions thereto that it deems advisable. On or before June 30 of each year, it adopts the budget with revisions, if any, by the affirmative vote of at least a majority of the total members of the City Council. From the effective date of the budget, the several amounts stated as proposed expenditures become appropriated to the several departments, offices and agencies for the objects and purposes named, provided that the City Manager may transfer the appropriations of a fund from one object or purpose to another within the same department. All appropriations lapse at the end of the fiscal year to the extent that they have not been expended or lawfully encumbered. At the public meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the majority vote of the City Council. The City Council employs, at the beginning of each fiscal year, an independent certified public accountant who, at such time or times as specified by the City Council, at least annually, and at such other times as the City Council shall determine, examines the financial statements of the City in accordance with generally accepted auditing standards, including such tests of the accounting records and such other auditing procedures as such accountant considers necessary. As soon as practicable after the end of the final audit and report is submitted by A-8 such accountant to the City Council and a copy of the financial statements as of the close of the fiscal year is published. Budget Overview General. The City's general fund budget figures for the year ended June 30, 2011, the City's audited actual figures for the year ended June 30, 2011, and the City's adopted budget for the year ended June 30, 2012 are set forth in the following table. Table A-9 CITY OF NATIONAL CITY General Fund Budgets For Fiscal Years 2010-11 through 2011-12 [please confirm/provide budget figures — budget categories do not correlate to audit categories] Adopted Audited Adopted Budget Actual Budget 201 f:- :: 2010-11 2011-12 Revenues: Taxes $29,819,949 $31,750,265 31,060,129 Licenses & Permits 613,604 767,876 Fines and forfeitures 1,380,168 1,434,437 Interest and rents 374,492 381,692 746,884 Intergovernmental 520,348 684,993 485,000 Charges for services: 992,115 1,011,653 Other revenues 665,724 740,928 Total revenues 34,366,400 36,771,826 36,023,207 Expenditures: Current: General government 4,741,836 3,893,535 Public safety 28,825,500 25,671,368 28,610,717 Transportation 1,423,320 1,212,963 Culture and leisure 2,008,734 1,736,096 Capital outlay 900,202 286,219 Debt service: principal 232,948 227,360 Debt service: interest and fees 59,256 57,831 Total expenditures 38,191,796 33,085,372 28,610,717 Excess (deficiency) of revenues over (under) expenditures (3,825,396) 3,686,454 Other financing sources (uses) Transfers in 3,463,960 1,760,491 Transfers out (3,706,094) (3,712,121) Total other financing sources (uses) (242,134) (1,951,630) Net change in fund balances (4,067,530) 1,734,824 Fund balance, beginning of year 11,826,025 11,826,025 Fund balance, end of year $7,758,495 $13,560,849 Financial Statements The accounting policies of the City conform to generally accepted accounting principles. The Governmental Accounting Standards Board ("GASB") published its Statement No. 34 "Basic Financial Statements — and Management's Discussion and Analysis — for State and Local Governments" on June 30, 1999. Statement No. 34 provides guidelines to auditors, state A-9 and local governments and special purpose governments such as school districts and public utilities, on new requirements for financial reporting for all governmental agencies in the United States. Generally, the basic financial statements and required supplementary information should include (i) Management's Discussion and Analysis; (ii) financial statements prepared using the economic measurement focus and the accrual basis of accounting and (ii) fund financial statements prepared using the current financial resources measurement focus and the modified accrual method of accounting and (iii) required supplementary information. Accounts of the City are organized on the basis of funds each of which is considered a separate accounting entity. There are three groups of funds- governmental funds (which include the General Fund), proprietary funds (which include enterprise funds and internal service funds) and fiduciary funds (which are used to account for resources held for the benefit of parties outside the City). The City maintains 16 individual governmental funds. Information is presented separately in the governmental statement of revenues, expenditures, and changes in fund balances for the General Fund and the Construction Fund, both of which are considered to be major funds. Data for the 14 other funds are combined into a single aggregated presentation. All governmental funds and fiduciary funds use the modified accrual basis of accounting. The proprietary funds use the accrual basis of accounting. The General Fund is the general operating fund of the City and is used to account for all financial resources except those required to be accounted for in another fund. The City's audited financial statements for fiscal year 2010-11 are attached to this Official Statement as Appendix B. The City has not sought nor has it received the consent of the auditor to include the audited financial statements in this Official Statement, and the auditor has not undertaken any post -audit review of the audited financial statements. A-10 q Set forth in the following pages are (i) a general fund balance sheet for fiscal years 2008-09 through 2010-11 and (ii) a statement of revenues, expenditures and changes in fund balances for the City's general fund for the last three fiscal years and the 2011-12 budgeted year. Table A-10 CITY OF NATIONAL CITY General Fund Balance Sheet As of June 30 for Fiscal Years 2008-09 through 2010-11 Audited Audited Audited 2008-09 2009-10 2010-11 ASSETS: Cash and investments $12,255,859 $9,024,317 $11,287,422 Accounts receivable 680,983 731,539 729,435 Interest receivable 178,554 64,196 58,917 Due from other funds 4,266,136 1,636,843 701,701 Due from other governmental entitles 2,973,625 2,919,636 3,368,938 Total assets $20,355,157 $14,376,531 $16,146,413 LIABILITIES: Accounts payable and accrued liabilities 1,147,113 849,314 $1,167,720 Salaries payable 361,503 975,789 766,047 Due to other funds 218,070 Deposits payable 128,537 150,120 128,398 Deferred revenue 39,246 13,794 13,794 Advances from other funds 563,382 509,605 Total liabilities 1,914,469 2,552,399 2,585,564 Fund Balances: Reserved 1,164,034 1,126,408 4,829,800 Unreserved 9,333,522 10,699,617 7,059,792 Total fund balances 18,440,688 11,826,025 13,560,849 Total liabilities and fund balances $20,355,157 $14,378,424 $16,146,413 Source: City of National City Audited Financial Statements. A-11 Table A-11 CITY OF NATIONAL CITY Statement of General Fund Revenues, Expenditures and Changes in Fund Balance Fiscal Years 2008-09 through 2010-11 (audited) and 2011-12 (budgeted) [please confirm/provide budget figures — budget categories do not correlate to audit categories] Audited Audited Audited Budget 2008-09 2009-10 2010-11 2011-12 Revenues: Taxes $31,230,431 $29,007,351 $31,750,265 31,060,129 Licenses and permits 723,913 551,517 767,876 Fines and forfeitures 1,137,181 1,219,418 1,434,437 Interest and rents 1,488,925 432,226 381,692 746,884 Intergovernmental 663,436 571,308 684,993 485,000 Charges for services 564,347 482,975 1,011,653 Other revenue 380,627 593,968 740,928 Total revenues 36,188,860 32,858,763 36,771,826 36,023,207 Expenditures: Current: General government 3,931,370 4,578,197 3,893,535 Public safety 26,673,528 28,402,451 25,671,368 28,610,717 Transportation 2,726,801 1,777,073 1,212,963 Community development 26,934 - - Culture and leisure 2,086,779 1,828,785 1,736,096 Capital outlay 1,013,344 301,404 286,219 Debt service: principal 214,837 261,174 227,360 Debt service: interest; fees 57,481 23,962 57,831 Total expenditures 36,731,074 37,173,046 33,085,372 36,910,217 Excess of revenues over (under) expenditures (542,214) (4,314,283) 3,686,454 (887,010) Other financing sources (uses): Transfers in 902,137 3,047,887 1,760,491 Transfers out (1,945,467) (5,348,267) (3,712,121) Total other financing sources (uses) (1,043,330) (2,300,380) (1,951,630) Net change in fund balance (1,585,544) (6,614,663) 1,743,824 Fund balance - July 1' 20,026,232 18,440,688 11,826,025 Fund balance - June 30 $18,440,688 $11,826,025 $13,560,849 Source: City of National City A-12 01 MAJOR GENERAL FUND REVENUE SOURCES Following is a discussion of the City's principal General Fund revenue sources: sales taxes; property taxes; transient occupancy taxes; other taxes; licenses and permits; fines, forfeitures and penalties; revenue from other agencies; and other charges and revenues. The table below shows a five-year history of the major general fund revenue sources for the City. Table A-12 CITY OF NATIONAL CITY Major General Fund Revenue Sources Fiscal Years 2006-07 through 2010-11 2006-07 2007-08 2008-09 2009-10 2010-11 Taxes 31,375,184 33,638,924 31,230,431 29,007,351 31,750,265 Transient Occupancy Taxes 859,430 799,452 723,913 551,517 767,876 Other Taxes 783,056 1,084,647 1,137,181 1,219,418 1,434,437 Licenses and Permits 2,056.097 2.168,962 1.488,925 432,226 381.692 Fines, Forfeitures and Penalties 1,259,455 802,557 663,436 571,308 684,993 Revenues from Other Agencies 1,318,470 414,298 564,347 482,975 1,011,635 Other Revenues 430,423 152,148 380,627 593,968 740,928 Source: City of National City Taxes The City derives a majority of its revenues from taxes, with sales tax providing the single major revenue source. Sales and Use Taxes. Sales and use taxes represent the largest source of tax revenue to the City (approximately % of general fund tax revenues in fiscal year 2010-11). This section describes the current system for levying, collecting and distributing sales and use tax revenues in the State of California. Sales Tax Rates. The City collects a percentage of taxable sales in the City (minus certain administrative costs imposed by the State Board of Equalization) pursuant to the Bradley -Burns Uniform Local Sales and Use Tax (the "Sales Tax Law"), as shown below. As part of the State's 2003-04 Budget, the State Legislature authorized, and the voters of the State approved, a redirection to the State from local jurisdictions (including the City) of sales revenues in the amount of 0.25% of the basic 1.0% local sales tax rate, starting July 1, 2004. The State of California uses such revenues to pay the State's economic recovery bonds. Under the California Economic Recovery Act, which includes legislation commonly referred to as the "Triple Flip", the State redirected certain property taxes in the Education Augmentation Revenue Fund ("ERAF") to local governments, including the City, to compensate for this redirection of sales taxes on a "dollar for dollar" basis. Under this legislation, along with the guarantees provided by the passage of Proposition 1A in November 2004, the City expects that there will not be any significant fiscal impacts on the City resulting from the "Triple Flip". Currently, taxable transactions in the City are subject to the following sales and use tax, of which the City's share is only a portion. In June 2006, the City's voters within the City approved Proposition D (District Tax), a one -cent increase in local sales tax effective until 2016. The revenues from the one cent district tax have generated between $ million and $ A-13 p7 million annually to the City's General Fund. The State collects and administers the tax, and makes distributions on taxes collected within the City, as follows: Table A-13 CITY OF NATIONAL CITY Sales Tax Rates Fiscal Year 2011-12 State (General Fund) State (Fiscal Recovery Fund) State (Local Revenue Fund) State (Local Public Safety Fund)) Local (City and County Operations) Local (County Transportation Funds) Total Statewide Sales Tax Rate Local Sales Tax 5.000%(1) 0.250 0.500 0.500 0.250 0.750 7.250% 1.500% Total City Sales Tax Rate 8.750% Source: California State Board of Equalization. Sales and use taxes are complementary taxes; when one applies, the other does not. In general, the statewide sales tax applies to gross receipts of retailers from the sale of tangible personal property in the State of California. The use tax is imposed on the purchase, for storage, use or other consumption in the State of tangible personal property from any retailer. The use tax generally applies to purchases of personal property from a retailer outside the State of California where the use will occur within the State of California. The Sales Tax is imposed upon the same transactions and items as the statewide sales tax and the statewide use tax. Certain transactions are exempt from the State sales tax, including sales of the following products: • • • • • food products for home consumption; prescription medicine; newspapers and periodicals; edible livestock and their feed; seed and fertilizer used in raising food for human consumption; and • gas, electricity and water when delivered to consumers through mains, lines and pipes. This is not an exhaustive list of exempt transactions. A comprehensive list can be found in the State Board of Equalization's June 2005 Publication No. 61 entitled "Sales and Use Taxes: Exemptions and Exclusions," which can be found on the State Board of Equalization's website at http://www.boe.ca.gov/. Sales Tax Collection Procedures. Collection of the sales and use tax is administered by the California State Board of Equalization. According to the State Board of Equalization, it A-14 distributes quarterly tax revenues to cities, counties and special districts using the following method: Using the prior year's like quarterly tax allocation as a starting point, the Authority first eliminates nonrecurring transactions such as fund transfers, audit payments and refunds, and then adjusts for growth, in order to establish the estimated base amount. The State Board of Equalization disburses 90% to each local jurisdiction in three monthly installments (advances) prior to the final computation of the quarter's actual receipts. Ten percent is withheld as a reserve against unexpected occurrences that can affect tax collections (such as earthquakes, fire or other natural disaster) or distributions of revenue such as unusually large refunds or negative fund transfers. The first and second advances each represent 30% of the 90% distribution, while the third advance represents 40%. One advance payment is made each month, and the quarterly reconciliation payment (clean-up) is distributed in conjunction with the first advance for the subsequent quarter. Statements showing total collections, administrative costs, prior advances and the current advance are provided with each quarterly clean-up payment. Under the Sales and Use Tax Law, all sales and use taxes collected by the State Board of Equalization under a contract with any city, city and county, redevelopment agency, or county are required to be transmitted by the Board of Equalization to such city, city and county, redevelopment agency, or county periodically as promptly as feasible. These transmittals are required to be made at least twice in each calendar quarter. Under its procedures, the State Board of Equalization projects receipts of the sales and use tax on a quarterly basis and remits an advance of the receipts of the sales and use tax to the City on a monthly basis. The amount of each monthly advance is based upon the State Board of Equalization's quarterly projection. During the last month of each quarter, the State Board of Equalization adjusts the amount remitted to reflect the actual receipts of the sales and use tax for the previous quarter. The Board of Equalization receives an administrative fee based on the cost of services provided by the Board to the City in administering the City's sales tax, which is deducted from revenue generated by the sales and use tax before it is distributed to the City. History of Taxable Transactions. In 2009, the State Board of Equalization converted the business codes of sales and use tax permit holders to North American Industry Classification System codes. As a result of the coding change, data for 2009 and 2010 is not comparable to that of prior years. A summary of historic taxable sales within the City during the past five years in which data is available is shown in the following table. Total taxable sales during calendar year 2010 in the City were reported to be $1,129,833,000, a 7.2% increase over the total taxable sales of $1,054,258,000 reported during calendar year 2009. Figures are not yet available for 2011. A-15 Table A-14 CITY OF NATIONAL CITY VALUATION OF TAXABLE TRANSACTIONS (in thousands of dollars) Retail Stores Total All Outlets Number Taxable Number Taxable of Permits Transactions of Permits Transactions 2006 1,286 $1,330,336 2,118 $1,510,206 2007 1,169 1,228,611 1,898 1,394,601 2008 1,159 898,221 2,498 1,095,026 2009 (1) 1,200 892,625 1,679 1,054,258 2010(1) 1,295 958,855 1,762 1,129,833 (1) Not comparable to prior years. "Retail" category now includes "Food Services". Source: California Board of Equalization. Franchise Taxes. The City levies franchise taxes on gas, electricity, refuse and cable television companies, representing the second largest source of tax revenue to the City. Telephone companies, railroads and wharves and piers are exempt from local franchising authority. Franchise taxes totaled approximately $1,602,483 in fiscal year 2010-11, representing approximately 4.7% of General Fund tax revenues in 2010-11, and are projected to total $1,613,126 of General Fund tax revenues in 2011-12. Property Taxes. Property taxes represent the third largest source of tax revenue to the City (approximately % of general fund tax revenues in fiscal year 2010-11). A property tax is imposed on real property (land and permanent improvements) and tangible personal property (furniture, fixtures and equipment). The general tax levy rate is 1 % of assessed value, adjusted by an annual inflation factor not to exceed 2%. Property in the City is assessed by County of San Diego Assessor, except for certain public utility property which is assessed by the State Board of Equalization. Cities and other local agencies, such as schools, special districts, and the County of San Diego share in the County -wide property tax pool for purchases made within the County, but not within a specific jurisdiction. ERAF Shift and Triple Flip Legislation. Certain property taxes have been shifted from local government agencies to schools by the State Legislature for deposit in the Education Revenue Augmentation Fund ("ERAF"), a shift that has resulted in diversion of City property taxes since fiscal year 1992-93. See "State Budgets" below. As discussed in "Sales and Use Taxes" below, on March 2, 2004, the State's voters approved a bond initiative known as the "California Economic Recovery Act" which includes provisions known as "Triple Flip" legislation, calling for a diversion of a portion of local governments' share of sales taxes to the State of California, and in return, a redirection of certain property taxes from the ERAF to local government. This has resulted in a cumulative loss of over $10 million over the past 15 years. Levy and Collection. Property taxes are levied for each fiscal year on taxable real and personal property as of the preceding January 1. For assessment and collection purposes, property is classified either as "secured" or "unsecured" and is listed accordingly on separate parts of the assessment roll. The "secured roll" is that part of the assessment roll containing A-16 State -assessed public utilities property and real property the taxes on which are a lien sufficient, in the opinion of the County Assessor, to secure payment of the taxes. Other property is assessed on the "unsecured roll." Property taxes on the secured roll are due in two installments, on November 1 and February 1 of each fiscal year, and become delinquent on December 10 and April 10, respectively. A penalty of 10% attaches immediately to all delinquent payments. Property on the secured roll with respect to which taxes are delinquent become tax defaulted on or about June 30 of the fiscal year. Such property may thereafter be redeemed by payment of a penalty of 1% per month to the time of redemption, plus costs and a redemption fee. If taxes are unpaid for a period of five years or more, the property is deeded to the State of California and may be sold at public auction. Property taxes on the unsecured roll are due as of the January 1 lien dates and become delinquent on August 31. A 10% penalty attaches to delinquent unsecured taxes. If unsecured taxes are unpaid at 5:00 p.m. on October 31, an additional penalty of 1% attaches to them on the first clay of each month until paid. i he County has four ways of collecting delinquent unsecured personal property taxes: (1) a civil action against the taxpayer; (2) filing a judgment in the office of the County Clerk specifying certain facts in order to obtain a lien on certain property of the taxpayer; (3) filing a certificate of delinquency for record in the County Recorder's office in order to obtain a lien on certain property of the taxpayer; and (4) seizure and sale of personal property, improvements or possessory interests belonging or assessed to the assessee. Beginning in 1978-79, Proposition 13 and its implementing legislation shifted the function of property tax allocation to the counties, except for levies to support prior voted debt, and prescribed how levies on county -wide property values are to be shared with local taxing entities within each county. Assessed Valuation. All property is assessed using full cash value as defined by Article XIIIA of the State Constitution. State law provides exemptions from ad valorem property taxation for certain classes of property such as churches, colleges, non-profit hospitals, and charitable institutions. See "CONSTITUTIONAL AND STATUTORY PROVISIONS AFFECTING CITY REVENUES AND APPROPRIATIONS" in the body of the Official Statement. Future assessed valuation growth allowed under Article XIIIA (new construction, certain changes of ownership, 2% inflation) will be allocated on the basis of "situs" among the jurisdictions that serve the tax rate area within which the growth occurs. Local agencies and schools will share the growth of "base" revenues from the tax rate area. Each year's growth allocation becomes part of each agency's allocation in the following year. Assessed Valuation History. See "PROPERTY TAXATION — Assessed Valuation" in the body of the Official Statement. Major Property Taxpayers. See "PROPERTY TAXATION — Assessed Valuation" in the body of the Official Statement. Impact of Proposition IA Borrowing. The declaration by the State of California of a fiscal emergency under Proposition 1A and a subsequent take -away of the equivalent of 8% of fiscal year 2008-09 property related tax revenues from cities had an impact of $ million on the City in fiscal year 2009-10. These tax revenues must be paid back by the State with interest A-17 10/ within three years. The City participated in .the Proposition 1A Securitization Program to mitigate this loss of revenue. [confirm] Transient Occupancy Taxes. A transient occupancy tax is imposed on occupants of hotels, inns, motels and other lodging facilities for occupancy of 30 days or Tess. The tax is applied to a customer's lodging bill. Taxes are remitted quarterly for all approved lodging operators in the City. The current hotel tax rate is %. [describe how it is broken down among the County, City and any other agencies] The other % is used by the City for general purposes. Hotel tax revenue for fiscal year 2010-11 was $767,876. Projected hotel tax revenue for fiscal year 2011- 12 is $733,091. Intergovernmental In 2010-11, approximately % of General fund revenues came from other governmental agencies, primarily from state shared revenues. Known as subventions, these shared revenues may be in lieu of local taxes, replacement revenue for taxes previously levied by cities or general state assistance for specific purposes. The largest of these revenues are the Motor Vehicle In -Lieu Tax received from the State of California. Vehicle license fees ("VLF") imposed for the operation of vehicles on state highways are collected by the State Department of Motor Vehicles. VLFs were historically assessed in the amount of two percent of a vehicle's depreciated market value for the privilege of operating a vehicle on the State's public highways. Beginning in 1999, the VLF paid by vehicle owners was offset (or reduced) to the effective rate of 0.65 percent. In connection with the offset of the VLF, the State Legislature authorized appropriations from the State General Fund to "backfill" the offset so that local governments, which receive all of the vehicle license fee revenues, would not experience any loss of revenues. The legislation that established the VLF offset program also provided that if there were insufficient State General Fund moneys to fully "backfill" the VLF offset, the percentage offset would be reduced proportionately (i.e., the license fee payable by drivers would be increased) to assure that local governments would not be underfunded. In June 2003, the State Director of Finance ordered the suspension of VLF offsets due to a determination that insufficient State General Fund moneys would be available for this purpose, and, beginning in October 2003, the VLF paid by vehicle owners were restored to the two percent level. However, the offset suspension was rescinded by the Governor on November 17, 2003, and State offset payments to local governments resumed. As part of the 2004 Budget Act negotiations, an agreement was made between the State and local government officials (the "State -local agreement") under which the VLF rate was permanently reduced from two percent to 0.65 percent. In order to protect local governments, the reduction in VLF revenue to cities and counties from this rate change was replaced by an increase in the amount of property tax they receive. Under the State -local agreement, for fiscal years 2004-05 and 2005-06 only, the replacement property taxes that cities and counties receive were reduced by $700 million. Commencing in fiscal year 2004-05, local governments began to receive their full share of replacement property taxes, and those replacement property A-18 %' o 9- taxes now enjoy constitutional protection against certain transfers by the State due to the approval of Proposition 1A at the November 2004 election. Since this revenue represents taxation of vehicles, new auto sales are a critical component to growth of this revenue source. Beginning in fiscal year 2005-06, the VLF Swap amount has been increasing at a similar rate to property taxes, and is based on property assessed value increases in the City. Due to the slowing economy and property reassessments, VLF revenues declined during the past two fiscal years and are expected to continue this trend in fiscal year 2011-12. VLF revenues constituted approximately $4.9 million of General Fund revenues in each of the last three fiscal years. About _% of General Fund revenues are expected to come from Intergovernmental revenues in 2011-12. Charges for ServicesThe City imposes chargus for various services, including licenses, permits, planning fees and the expense of providing certain services such as police and fire These fees represented about % of General Fund revenues in 2010-11 and are expected to represent % of General Fund revenues in 2011-12. Fines, Forfeitures and Penalties The City shares with the County all fines collected upon conviction of a misdemeanor or an infraction in any municipal or justice court and bail moneys forfeited following a misdemeanor or infraction charge when such a fine or forfeiture results from a misdemeanor or infraction committed within City boundaries. The City also receives revenues from vehicle code fines, parking citations, and penalties associated with building permits. As part of its budget act a number of years ago, the State diverted 50% of cities' vehicle code fines to State uses. Beginning in fiscal year 1998-99, the State returned these vehicle code fines to cities. In addition, cities for the first time have received revenue derived from those individuals who attend traffic school. As a result of this State action, The City receives approximately $ annually. Vehicle code fines were $ in fiscal year 2010-11 and are budgeted at $ for fiscal year 2011-12. [confirm] A-19 Other Revenues Other miscellaneous charges that contribute revenues to the general fund include recreation fees and . These charges represented % of General Fund revenues ub 2010-11 and are projected to represent % in 2011-12. Impact of State Budget on City Revenues The State of California is experiencing significant financial and budgetary stress. State budgets are affected by national and state economic conditions and other factors over which the City has no control. The State's financial condition and budget policies affect communities and local public agencies throughout California. To the extent that the State budget process results in reduced revenues to the City, the City will be required to make adjustments to its budget. The State's 2008-09, 2009-10, 2010-11 and 2011-12 budgets contained or contain a number of measures that impact the finances of local agencies. Information on Current State Budget Difficulties. Certain information about the State budgeting process and the State Budget is available through several State of California sources. A convenient source of information is the State's website, where recent official statements for State bonds are posted. The references to Internet websites shown below are shown for reference and convenience only; the information contained within the websites has not been reviewed by the City and is not incorporated in this Official Statement by reference. The California State Treasurer's Internet home page at www.treasurer.ca.gov, under the heading "Financial Information," posts the State's audited financial statements. In addition, the "Financial Information" section includes the State's Rule 15c2-12 filings for State bond issues. The "Financial Information" section also includes the "Overview of the State Economy and Government, State Finances, State Indebtedness, Litigation" from the State's most current Official Statement, which discusses the State budget and its impact on school districts. The California Department of Finance's Internet home page at www.dof.ca.gov, under the heading "California Budget," includes the text of proposed and adopted State Budgets. The State Legislative Analyst's Office the ("LAO") prepares analyses of the proposed and adopted State budgets. The analyses are accessible on the Legislative Analyst's Internet home page at www.lao.ca.gov under the heading "Products." 2011-12 State Budget Following the veto by the Governor of a 2011-12 Budget proposed by the Legislature on June 15, 2011, the Legislature passed by majority vote a $86 billion general fund State Budget which attempted to close the State's estimated $9.6 billion budget deficit. The 2011-12 Budget was signed by Governor Brown on June 29, 2011. According to a summary of the 2011-12 Budget released by the Department of Finance (the "Department of Finance Report"), the 2011-12 Budget sought to close a $26.6 billion deficit identified in the Governor's May Revise through a combination of measures totaling $27.2 billion. Specifically, the 2011-12 Budget included $15 billion of expenditure reductions, $900 A-20 log million of targeted revenue increases, $2.9 billion of other measures and a positive adjustment to the State's revenue outlook totaling $8.3 billion. Other budget -related legislation passed in June, 2011 called for the wind-up and dissolution of California redevelopment agencies in order to eliminate the diversion of property taxes from school districts to redevelopment agencies. This legislation was upheld by the California Supreme Court on December 29, 2011, making the terms of such legislation operative February 1, 2012. Related legislation allowing redevelopment agencies to continue under certain circumstances was invalidated by the Court. Other challenges or delays relating to the implementation of these statutes cannot be predicted at this time. The 2011-12 Budget projected an additional $4 billion in revenues during fiscal year 2011-12 and a plan to seek voter approval of a ballot measure, by November of 2012, which would protect public safety realignment and supplement the State's revenues. With the implementation of all measures, the 2011-12 Budget assumed, for fiscal year 2010-11, year-end revenues of $94.8 billion and expenditures of $91.5 billion and a 2010-11 ending budget deficit of $2 billion. Projected revenues for 2011-12 were $88.5 billion and authorized expenditures were $85.9 billion, with projections for an ending $543 million surplus. In the event that during fiscal year 2011-12 revenues did not reach the forecasts included in the 2011-12 Budget, a series of "trigger" reductions that were authorized to be implemented. "Tier 1 Trigger Cuts" would be triggered if, by January 2012, State revenues fell short of projections by $1-2 billion. Tier 1 Trigger Cuts relate to cuts in university, social services and library funding and would total approximately $600 million. "Tier 2 Trigger Cuts" would be triggered if, by January 2012, revenues were projected to fall short by more than $2 billion. Tier 2 Trigger Cuts relate to K-12 revenue limit funding and home -to -school transportation and total approximately $1.9 billion. See "January 1, 2012: Trigger Reductions Commence" below. The 2011-12 Budget also included decreases in Proposition 98 funding to $48.7 billion, including $32.8 billion from the State general fund, which reflected a decrease from the prior year of $1.1 billion. This decrease was a net figure reflective of all budgetary actions taken with respect to the State's share of Proposition 98 funding, including increases in baseline revenues, redirection of certain sales tax revenues related to the realignment of public safety programs, and the rebenching of the Proposition 98 minimum funding guarantee. The 2011-12 Budget also made a significant, one-time modification to State budgeting requirements for school districts, requiring them to project the same level of revenue per student in 2011-12 as in 2010- 11, as well as to maintain staffing and program levels commensurate with such level of funding. A related provision of the 2011-12 Budget provided that school districts would only be required to budget for the current year, and will not be required to demonstrate that they can meet their financial obligations for the subsequent two fiscal years (2012-13 and 2013-14). Other significant measures with respect to K-12 education funding were: Apportionment Deferral. An additional deferral of $1.2 billion in education spending in order to maintain programmatic funding at the fiscal year 2010-11 level. • Part -Day Preschool. A decrease of $62.3 million to reflect a reduction of income eligibility levels to 70% of the State Median Income, and across-the-board reductions to provider contracts. A-2 1 /oS • Charter Schools. $11 million in supplemental categorical funding to charter schools that begin operations between 2008-09 and 2011-12. Clean Technology and Renewable Energy Training. $3.2 million of increased funding for clean technology and renewable energy job training, career technical education and the Dropout Prevention Program, each of which was designed to provide at -risk high school students with occupational training in areas such as conservation, renewable energy and pollution reduction. Child Care and Development. A decrease of $180.4 million to child care and development programs, including reductions to license -exempt provider rates, reductions of income eligibility levels to 70% of the State Median Income, and across- the-board reductions to provider contracts. CALTIDES. A decrease of $2.1 million to reflect elimination of funding for the California Longitudinal Teacher Integrated Data System (CALTIDES). Although the CALTIDES program was intended to provide a central State information depository regarding the teaching workforce, the 2011-12 Budget indicated the program is not a critical need. Office of the Secretary of Education. The 2011-12 Budget projected a budget savings of $1.6 million through the elimination of the Office of the Secretary of Education. November 16, 2011 LAO Report. The LAO report entitled "The 2012-13 Budget: California's Fiscal Outlook" estimated that State General Fund revenues and transfers in 2011- 12 would be $3.7 billion less than the levels assumed in the 2011-12 Budget. This revenue shortfall would translate into $2 billion of potential Tier 1 and Tier 2 Trigger Cuts (described above). The LAO estimated that the State would end 2011-12 with a $3 billion deficit, including the effects of the trigger cuts. The LAO forecasted that in 2012-13 the State would face increased costs due to the expiration of a number of temporary budget measures, a significant increase in Proposition 98 school costs under current law, the required repayment of a $2 billion Proposition 1A property tax loan used to help balance the budget in 2009, and other factors. The LAO projected a $10 billion operating shortfall in 2012-13. January 1, 2012: Trigger Reductions Commence. On December 13, 2011, Governor Jerry Brown announced that $980 million in mid -year trigger cuts would be implemented following the determination by the Department of Finance that the State would fall $2.2 billion short of the revenue forecast contained in the 2011-12 Budget. These include Tier 1 Trigger Cuts and a portion of Tier 2 Trigger Cuts. Effective January 1, 2012, cuts to funding for University of California, California State University, community colleges, developmental services, local libraries and state -subsidized child care and K-12 school bus service funding, among others, became effective. Effective February 1, 2012, a cut to general revenue limit funding for K-12 school districts totaling $79.6 million will be implemented. 2012-13 State Budget. On January 5, 2012, Governor Brown submitted his 2012-13 Proposed Budget to the Legislature. The 2012-13 Proposed Budget acknowledged a $9.2 billion budget deficit, consisting of an $4.1 billion deficit that would remain at the end of Fiscal Year 2012-13 (absent budgetary action), and a $5.1 billion shortfall between current -law revenues and expenditures in 2012-13, with a proposed reserve of $1.1 billion. The 2012-13 Proposed Budget relies on a plan to submit to the voters at a regular election in November 2012 a $6.9 billion tax increase, A-22 including a higher rate for personal income over $250,000 and a half -cent sales tax hike. If the voters do not approve such revenue -raising measures, the 2012-13 Proposed Budget specifies $5.4 billion in additional trigger cuts affecting funding for each of: schools and community colleges ($4.8 billion cut, likely eliminating three weeks of instruction from the school year), the University of California and California State University ($200 million cut), State courts ($125 million cut, equivalent to court closures of three days per month), Parks and Recreation and Fish and Game (number of safety officers and lifeguards decreased), Forestry and Fire Prevention (substantial reduction in firefighting capability and emergency air response program, closure of fire stations), Department of Water (flood control programs cut) and Department of Justice (law enforcement programs reduced). The 2012-13 Proposed Budget includes additional expense reducing measures as follows: Changes to CaIWORKs and subsidized child care to, among other things, reduce assistance to families not meeting work requirements. ($1.4 billion reduction), merging service delivery for those who are eligible for both MediCal and Medicare ($842 million reduction), eliminating Int_Home Supportive Services in shared living arrangements. ($164 million reduction), eliminating supplemental funding for schools associated with the elimination of the sales tax on gasoline ($544 million reduction), reducing grants for students of private institutions ($302 million reduction), suspending state mandates on local governments ($828 million reduction) and expanding the alternative custody program for female prison inmates (millions of dollars reduced in future years). The 2012-13 also includes continuation of the use of weight fees to offset future State general fund costs connected with transportation expenses ($350 million savings) and a one-time shift of monies from the State's Unemployment Compensation Disability Fund to pay the federal government for interest costs on the State's outstanding Unemployment Insurance loan. Additionally, concurrently with the 2012-13 Proposed Budget, the Governor has proposed a constitutional amendment, to be submitted to the voters at the November 2012 general election, to secure funding for local governments so they can provide public services recently shifted to them under the State's "realignment' plan. Voter approval of such an amendment might give the State less budget flexibility, but could also strengthen local support for current and additional realignment. January 11, 2012 LAO Report. An LAO report dated January 11, 2011 stated that the 2012-13 Proposed Budget were reasonable, and either of (i) the proposed multiyear tax increases and significant reductions in social services and subsidized child care programs or (ii) larger cuts, aimed largely at schools, move the State budget much closer to balance over the next several years. However, the LAO noted that its revenue estimates —including estimates of state revenue gains from the Governor's proposed tax raising initiatives —are lower than the Governor's and that if LAO estimates are correct, the Legislature will have to pursue billions of dollars more in budget -balancing solutions. The LAO was supportive of major restructuring of the school finance system, community college categorical funding, and education mandates, but suggested that alternatives to reforms in the CaIWORKs program should be considered. The LAO further encouraged caution in setting the size of the trigger cuts, determining the specific education reductions to impose, and designing tools to help schools, community colleges, and universities respond to the trigger cuts. February 27, 2012 LAO Report. In its Economic and Revenue Update dated February 27, 2012, the LAO stated that despite promising job growth news in the past few months, California's unemployment levels remain high and the housing market remains troubled. However, corporate profits and technology companies are likely to generate additional state tax A-23 / 0'2 revenues in the coming few years. The LAO provided an updated revenue forecast of $6.5 billion lower than the Governor's in 2011-12 and 2012-13 combined (in November 2011, the LAO forecasted $6.8 billion lower revenues), meaning that if the LAO's revenue forecast proves to be more accurate than the administration's, the Legislature and the Governor will have to identify additional budgetary solutions to bring the 2012-13 state spending plan into balance. May Revision. On May 14, 2012, Governor Brown issued his proposed May Revision of the 2012-13 State Budget. The May Revision estimated that the State budget deficit had increased from $9.2 billion to $15.7 billion, and predicted that, absent actions to eliminate the State's structural deficit, the State would face an approximately $8 billion budget shortfall each year. The increase in the amount of the State budget deficit was attributed to an overly optimistic forecast of revenue to be received by April 2012 (which is tied to an ongoing modest economic recovery), year -over -year increases in Proposition 98 funding for K-14 education, and the U.S. Federal Government and certain courts rejecting certain cuts proposed in the Governor's initial State Budget. The May Revision proposed $16.7 billion in aggregate budget balancing measures and to build a $1 billion reserve. Under the May Revision, forthcoming budgets would be balanced on an ongoing basis, thereby enabling the State to pay down $33 billion in outstanding borrowing that has accumulated since 2002. The May Revision suggests that the State's outstanding debt could be reduced to $6.6 billion by the end of fiscal year 2015- 16. To bridge the State budget gap, the Governor proposed an additional $4.1 billion in spending reductions, including (i) shifting of the source of payment for local trial courts, (ii) implementing various reductions to hospital, nursing home and in home care funding, (iii) establishing standards for participation in the Cal Grant Program, (iv) reducing the cost of state employee compensation by 5% through a reduced workweek or a commensurate reduction in work hours and pay, (v) transferring cash assets previously held by redevelopment agencies to cities, counties and special districts to fund core public services, (vi) using proceeds from the National Mortgage Settlement to offset existing State general fund costs, and (vii) making various other adjustments. The May Revision also assumes passage of the Governor's proposed revenue - generating initiatives at the November 2012 election. The Governor's measures increase the personal income tax on the State's highest income generating taxpayers for seven years and increase the State sales tax by .25% for four years, guaranteeing the revenue generated thereby will be allocated to schools. If the Governor's measures were to fail, the May Revision provides for an additional $6.1 billion in trigger cuts, effective January 1, 2013, which are to include, a $5.5 billion reduction in funding for schools and community colleges (equivalent to the cost of three weeks instruction), $250 million reductions to each of the University of California and California State University, and reductions to numerous public safety programs. The May Revision also notes that, even assuming passage of the Governor's measures, the State may face long-term cost increases that could take future budgets out of balance, including, but not limited to, costs associated with actions to reduce the Federal deficit, Federal government and court decisions, the pace of economic recovery, an aging population and rising health care costs. Uncertainty Regarding Future State Budgets. The City cannot predict what actions will be taken in future years by the State Legislature and the Governor to address the State's current or future budget deficits. Future State budgets will be affected by national and state economic conditions and other factors over which the City has no control. To the extent that the State budget process results in reduced revenues to the City, the City will be required to make A-24 lae adjustments to its budget. Decreases in such revenues may have an adverse impact on the City's ability to pay Base Rental payments. Current Investment Portfolio The City's investments are limited to those allowable under state statutes as incorporated into the City's Investment Policy that is even more conservative than that allowed by the state statue. 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 risks associated with the City's cash and investments are interest rate risk, credit risk and custodial risk. Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment and custodial credit risk is for deposits is the risk that, in the event of the failure of a depository financial institution, a depositor 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 City's cash and investments at June 30, 2011 are as follows: Table A-15 CITY OF NATIONAL CITY Investment Portfolio as of June 30, 2011 Total U.S. Agency Securities $13,212,247 Certificates of Deposit-CDARS 2,000,000 Local Agency Investment Fund 51,108,733 Commercial Paper 510,320 Cash with Fiscal Agent: Treasury Coupon Securities 1,094,028 Money Market 5,967,159 Guaranteed Investment Contracts 305,907 Commercial Paper 2,344,000 Money Market Mutual Funds 34,058,588 Total Cash and Investments $110,600,982 Source: City of National City 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. Retirement and Pension Systems A-25 Plan Description. The City contributes to the California Public Employees' Retirement System ("PERS"), an agent multiple -employer public employee retirement system. PERS provides retirement, disability and death benefits. 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. Initial unfunded liabilities are amortized over a closed period that depends on the plan's date of entry into PERS. 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. Following is three-year trend information of Annual Pension Cost (Employer Contribution). Pension Cost APC Pension Miscellaneous employees (APC) Contributed Obligation 06/30/09 $3,199,780 100% 06/30/10 3,461,800 100% 06/30/11 3,277,155 100% Safety employees 06/30/09 $1,901,577 100% 06/30/10 1,871,038 100% 06/30/11 1,683,420 100% Other Post Employment Benefits 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 A-26 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, 2011, the date of the latest actuarial valuation: Retirees and beneficiaries receiving benefits Active plan members Total 46 280 326 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 ("OBEB") cost 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: Annual Required Contribution $126,454 Increase in net OPEB obligation 2,690 Adjustments to ARC (2,690) Annual OPEB cost (expense) 126,454 Contributions made (including premiums paid) (75,020) Increase in net OPEB obligation 51,434 Net OPEB obligation, beginning of year 53.795 Net OPEB obligation, beginning of year $105,229 The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for the last 3 fiscal years were as follows: Fiscal Year Annual % of Annual OPEB Net OPEB Ended OPEB Cost Cost Contributed Obligation 6/30/2009 $110,954 68% $34,624 6/30/2010 $110,954 83% $53,795 6/30/2011 $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) $1,370,805 A-27 Actuarial value of plan assets Unfunded actuarial accrued liability (UAAL) $1.370.805 Funded ratio (actuarial value of plan assets/AAL) 0.0% Covered payroll (active plan members) 18,322,000 UAAL as percentage of covered payroll 7.5% See "APPENDIX B — Comprehensive Audited Financial Report for the Year Ended June 30, 2011 — Note 9" for a description of actuarial methods and assumptions relating to the plan. Risk Management 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 fiscal year 2010-11, 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. A-28 Long -Term Debt The City generally incurs long-term debt to finance projects or purchase assets which will have useful lives equal to or greater than the related debt. The City's long-term debt for the fiscal year ended June 30, 2011 is as follows: Table A-16 CITY OF NATIONAL CITY Long -Term Debt Type of Indebtedness Final Amount Outstanding Maturity Issued 6/30/2011 General Obligation Bonds: Election of 2002, Series A* 2028 $6,000,000 $5,120,000 Lease Revenue Refunding Bonds 2018 3,115,000 3,115,000 Claims Payable 6,114,000 Compensated Absences 2,815,341 OPEB 105,229 Capitalized Lease Obligations 2,416,722 Note Payable 2,276,885 To be refunded with Bond proceeds. Source: City of National City A-29 (/3 APPENDIX B AUDITED FINANCIAL STATEMENTS OF THE CITY FOR FISCAL YEAR 2010-11 B-1 I APPENDIX C PROPOSED FORM OF OPINION OF BOND COUNSEL City Council City of National City 1243 National City Boulevard National City, California 91950-4301 ,2012 OPINION: $ City of National City 2012 General Obligation Refunding Bonds Members of the City Council: We have acted as bond counsel in connection with the issuance by the City of National City (the "City") of its $ aggregate principal amount of City of National City 2012 General Obligation Refunding Bonds, dated , 2012 (the "Bonds"). The Bonds have been issued by the City pursuant to the Constitution and laws of the State of California, a resolution adopted by the City Council of the City on , 2012 (the "Resolution") and a Paying Agent Agreement dated as of July 1, 2012 (the "Paying Agent Agreement") between the City and Union Bank, N.A. as we deem necessary to render this opinion. As to questions of fact material to our opinion, we have relied upon representations of the City contained in the Paying Agent Agreement and in the certified proceedings and certifications of public officials and others furnished to us, without undertaking to verify the same by independent investigation. Based upon the foregoing, we are of the opinion, under existing law, as follows: 1. The City is duly organized and validly existing as a general law city and municipal corporation under the Constitution and laws of the State of California, with the power to adopt the Resolution, to execute and deliver the Paying Agent Agreement and to perform the agreements on its part contained therein, and to issue the Bonds. 2. The Bonds are valid and binding general obligations of the City. 3. The City has the power, is obligated, and in the Paying Agent Agreement has covenanted, to levy ad valorem taxes upon all property within the City which is subject to taxation by the City, without limitation of rate or amount, for the payment of the Bonds and the interest thereon. 4. The interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations; it should be noted, however, that, for the purpose C-1 I/5. of computing the alternative minimum tax imposed on corporations (as defined for federal income tax purposes), such interest is taken into account in determining certain income and earnings. The Bonds are "qualified tax-exempt obligations" within the meaning of section 265(b)(3) of the Internal Revenue Code of 1986 (the "Code"), and, in the case of certain financial institutions (within the meaning of section 265(b)(5) of the Code), a deduction is allowed for 80 percent of that portion of such financial institutions' interest expense allocable to interest payable on the Bonds. The opinions set forth in the preceding sentences are subject to the condition that the City comply with all requirements of the Code that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excluded from gross income for federal income tax purposes and that the Bonds be, or continue to be, qualified tax-exempt obligations. The City has covenanted to comply with each such requirement. Failure to comply with certain of such requirements may cause the inclusion of interest on the Bonds in gross income for federal income tax purposes to be retroactive to the date of issuance of the Bonds. We express no opinion regarding other federal tax consequences arising with respect to the Bonds. 5. The interest on the Bonds is exempt from personal income taxation imposed by the State of California. The rights of the owners of the Bonds and the enforceability of the Bonds may be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted and may also be subject to the exercise of judicial discretion in appropriate cases. Respectfully submitted, A Professional Law Corporation C-2 11� APPENDIX D FORM OF CONTINUING DISCLOSURE CERTIFICATE This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and delivered by the City of National City (the "City") in connection with the issuance by the City of its $ 2012 General Obligation Refunding Bonds (the "Bonds"). The Bonds are being issued pursuant to a resolution adopted by the City Council of the City on , 2012 and a Paying Agent Agreement (the "Paying Agent Agreement"), dated as of July 1, 2012, by and between the City and Union Bank, N.A., as paying agent (the "Paying Agent"). Pursuant to Section 5.06 of the Paying Agent Agreement, the City covenants and agrees as follows: Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the City for the benefit of the Owners and Beneficial Owners of the Bonds and in order to assist the Participating Underwriters in complying with Securities and Exchange Commission Rule 15c2-12(b)(5). Section 2. Definitions. In addition to the definitions set forth in the Paying Agent Agreement, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Annual Report" shall mean any Annual Report provided by the City pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. "Annual Report Date" means January 1 of each year for so long as the Bonds remain outstanding. "Beneficial Owner" shall mean any person which (a) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any Bonds (including persons holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the owner of any Bonds for federal income tax purposes. "Dissemination Agent" shall mean the City or an entity selected and retained by the City, or any successor thereto selected by the City. The initial Dissemination Agent shall be Urban Futures, Inc. "Listed Events" shall mean any of the events listed in Section 5(a) of this Disclosure Certificate and any other event legally required to be reported pursuant to the Rule. "MSRB" means the Municipal Securities Rulemaking Board, which has been designated by the Securities and Exchange Commission as the sole repository of disclosure information for purposes of the Rule. "Participating Underwriter" shall mean Estrada Hinojosa & Company, Inc. and any other original underwriter of the Bonds required to comply with the Rule in connection with offering of the Bonds. D-1 "Rule" shall mean Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as the same may be amended from time to time. "State" shall mean the State of California. Section 3. Provision of Annual Reports. (a) The City shall, or shall cause the Dissemination Agent to, not later than each Annual Reporting Date, commencing January 1, 2013 for the report for the 2011-12 fiscal year, provide to the MSRB, in an electronic format as prescribed by the MSRB, an Annual Report which is consistent with the requirements of Section 4 of this Disclosure Certificate. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may include by reference other information as provided in Section 4 of this Disclosure Certificate. If the Dissemination Agent is not the City, not later than fifteen (15) Business Days prior to the Annual Report Date, the City shall provide the Annual Report to the Dissemination Agent. The City shall provide a written certification with each Annual Report furnished to the Dissemination Agent to the effect that such Annual Report constitutes the Annual Report required to be furnished by the City hereunder. The Dissemination Agent may conclusively rely upon such certification of the City. (b) If by fifteen (15) Business Days prior to the date specified in subsection (a) for filing the Annual Report with the MSRB, the Dissemination Agent has not received a copy of the Annual Report, the Dissemination Agent shall contact the City to determine if the City is in compliance with subsection (a). (c) If the City does not provide (or cause the Dissemination Agent to provide) an Annual Report by the Annual Report Date, the City shall provide (or cause the Dissemination Agent to provide) to the MSRB, in an electronic format as prescribed by the MSRB, a notice in substantially the form attached as Exhibit A. (d) With respect to each Annual Report, the Dissemination Agent shall: (i) determine each year prior to the Annual Report Date the then -applicable rules and electronic format prescribed by the MSRB for the filing of annual continuing disclosure reports; and (ii) if the Dissemination Agent is other than the City, file a report with the City certifying that the Annual Report has been provided pursuant to this Disclosure Certificate, and stating the date it was provided. Section 4. Content of Annual Reports. The City's Annual Report shall contain or include by reference the following: (a) Audited Financial Statements of the City for the most recently completed fiscal year prepared in accordance with GAAP, as in effect from time to time, as such principles are modified by GASB (or, if Audited Financial Statements are not available, unaudited Financial Statements will be provided, if available, and Audited Financial Statements will be provided as soon as available); (b) The approved budget of the City for the current fiscal year; (c) Changes, if any, in the operation of the County of San Diego's Teeter Plan affecting the City; (d) Any change the County of San Diego's investment pool which would affect the City's access to property tax collections used to pay debt service on the Bonds; (e) Assessed value of taxable property within the jurisdiction of the City; (f) Property tax collection delinquencies for the prior fiscal year for the City if the City is no longer a participant in the County of San Diego's Teeter Plan; (g) Amount of all general obligation debt of the City outstanding, and total scheduled debt service on such general obligation debt; and (g) The Top ten real prop e:y tax aaacoaeCs of the City for the current fiscal year, as measured by secured assessed valuation and percentage of total secured assessed value. Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues with respect to which the City is an "obligated person" (as defined by the Rule), which are available to the public on the MSRB's Internet web site or filed with the Securities and Exchange Commission. The City shall clearly identify each such other document so included by reference. Section 5. Reporting of Significant Events. Pursuant to the provisions of this Section 5, the City shall give, or cause to be given, notice of the occurrence of any of the following events with respect to the Bonds: 1. principal and interest payment delinquencies; 2. non-payment related defaults, if material; 3. modifications to rights of Bondowners, if material; 4. Bond calls, if material, and tender offers; 5. defeasances; 6. rating changes; 7. adverse tax opinions or events affecting the tax-exempt status of the Bonds, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701- TEB) or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax-exempt status of the Bonds; D-3 8. unscheduled draws on the debt service reserves, if any, reflecting financial difficulties; 9. unscheduled draws on credit enhancements reflecting financial difficulties; 10. substitution of credit or liquidity providers, or their failure to perform; 11. release, substitution, or sale of property securing repayment of the Bonds, if material; 12. Bankruptcy, insolvency, receivership or similar event of the obligated person; 13. The consummation of a merger, consolidation, or acquisition involving an obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and 14. Appointment of a successor or additional trustee or the change of name of a trustee, if material. (b) Whenever the City obtains knowledge of the occurrence of a Listed Event, the City shall, or shall cause the Dissemination Agent (if not the City) to, file a notice of such occurrence with the MSRB, in an electronic format as prescribed by the MSRB, in a timely manner not in excess of 10 business days after the occurrence of the Listed Event. Notwithstanding the foregoing, notice of Listed Events described in subsections (a)(8) and (9) above need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to holders of affected Bonds under the Resolution. (c) The City acknowledges that the events described in subparagraphs (a)(2), (a)(7), (a)(8) (if the event is a bond call), (a)(10), (a)(13), and (a)(14) of this Section 5 contain the qualifier "if material." The City shall cause a notice to be filed as set forth in paragraph (b) above with respect to any such event only to the extent that the City determines the event's occurrence is material for purposes of U.S. federal securities law. (d) For purposes of this Disclosure Certificate, any event described in paragraph (a)(12) above is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the City in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the City, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the City. D-4 ia� Section 6. Identifying Information for Filings with the MSRB. All documents provided to the MSRB under the Disclosure Certificate shall be accompanied by identifying information as prescribed by the MSRB. Section 7. Termination of Reporting Obligation. The City's and the Dissemination Agent's obligations under this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all of the Bonds. If such termination occurs prior to the final maturity of the Bonds, the City shall give notice of such termination in the same manner as for a Listed Event under Section 5(f) hereof. Section 8. Dissemination Agent. The City may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate, and may discharge any such Dissemination Agent, with or without appointing a successor Dissemination Agent. The Dissemination Agent may resign at any time by providing at least 60 days' notice in writing to the City and the Paying Agent. Section 9. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate, the City may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions are satisfied: (a) if the amendment or waiver relates to the provisions of Sections 3(a), 4 or 5(a), it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature, or status of an obligated person with respect to the Bonds, or type of business conducted; (b) the undertakings herein, as proposed to be amended or waived, would, in the opinion of nationally recognized bond counsel, have complied with the requirements of the Rule at the time of the primary offering of the Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances; and (c) the proposed amendment or waiver either (i) is approved by holders of the Bonds in the manner provided in the Indenture for amendments to the Indenture with the consent of holders, or (ii) does not, in the opinion of nationally recognized bond counsel, materially impair the interests of the holders or beneficial owners of the Bonds. If the annual financial information or operating data to be provided in the Annual Report is amended pursuant to the provisions hereof, the first Annual Report filed pursuant hereto containing the amended operating data or financial information shall explain, in narrative form, the reasons for the amendment and the impact of the change in the type of operating data or financial information being provided. If an amendment is made to this Disclosure Certificate modifying the accounting principles to be followed in preparing financial statements, the Annual Report for the year in which the change is made shall present a comparison between the financial statements or information prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. The comparison shall include a qualitative discussion of the differences in the accounting principles and the impact of the change in the accounting principles on the presentation of the financial information, in order to provide information to investors to enable them to evaluate the ability of the City to meet its obligations. To the extent reasonably feasible, the comparison shall be quantitative. D-5 A notice of any amendment made pursuant to this Section 9 shall be filed in the same manner as for a Listed Event under Section 5(c). Section 10. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the City from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the City chooses to include any information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is specifically required by this Disclosure Certificate, the City shall have no obligation under this Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event. Section 11. Default. In the event of a failure of the City to comply with any provision of this Disclosure Certificate, any Owner or Beneficial Owner of the Bonds may take such actions, as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an Event of Default under the Paying Agent Agreement, and the sole remedy under this Disclosure Certificate in the event of any failure of the City or the Dissemination Agent (if not the City) to comply with this Disclosure Certificate shall be an action to compel performance. The City hereby represents and warrants that it is currently not in default under any other continuing disclosure arrangement entered into in connection with the Rule. Section 12. Duties, Immunities and Liabilities of Dissemination Agent. The Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and the City agrees to indemnify and save the Dissemination Agent, and its officers, directors, employees and agents, harmless against any loss, expense and liabilities which they may incur arising out of or in the exercise or performance of their respective powers and duties hereunder, including the costs and expenses (including attorneys' fees) of defending against any claim of liability, but excluding liabilities due to the Dissemination Agent's negligence or willful misconduct. The Dissemination Agent shall be paid compensation by the City for its services provided hereunder in accordance with its schedule of fees as amended from time to time, and all expenses, legal fees and advances made or incurred by the Dissemination Agent in the performance of its duties hereunder. The Dissemination Agent shall have no duty or obligation to review any information provided to it hereunder and shall not be deemed to be acting in any fiduciary capacity for the City, the Bondowners, or any other party. The obligations of the City under this Section shall survive resignation or removal of the Dissemination Agent and the payment of the Bonds. Section 13. Notices. Any notices or communications to be given to the City pursuant to this Disclosure Certificate may be given as follows: City of National City 1243 National City Boulevard National City, California 91950-4301 Attn: Finance Manager Any person may, by written notice to the other persons listed above, designate a different address to which subsequent notices or communications should be sent. D-6 Section 14. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the City, the Dissemination Agent, the Paying Agent, the Participating Underwriters and Owners and Beneficial Owners from time to time of the Bonds, and shall create no rights in any other person or entity. Dated: , 2012 D-7 CITY OF NATIONAL CITY By City Manager Name of Issuer: Name of Bond Issue: Date of Issuance: EXHIBIT A NOTICE OF FAILURE TO FILE ANNUAL REPORT City of National City ,2012 2012 General Obligation Refunding Bonds NOTICE IS HEREBY GIVEN that the City of National City (the "City") has not provided an Annual Report with respect to the above -named Bonds as required by that certain Paying Agent Agreement, dated as of July 1, 2012, by and between the City and Union Bank, N.A., as paying agent. The City anticipates that the Annual Report will be filed by Dated: cc: City of National City D-8 [Dissemination Agent] By: Its: APPENDIX E DTC AND THE BOOK -ENTRY ONLY SYSTEM The following description of the Depository Trust Company ("DTC"), the procedures and record keeping with respect to beneficial ownership interests in the Bonds, payment of principal, interest and other payments on the Bonds to DTC Participants or Beneficial Owners, confirmation and transfer of beneficial ownership interest in the Bonds and other related transactions by and between DTC, the DTC Participants and the Beneficial Owners is based solely on information provided by DTC. Accordingly, no representations can be made concerning these matters and neither the DTC Participants nor the Beneficial Owners should rely on the foregoing information with respect to such matters, but should instead confirm the same with DTC or the DTC Participants, as the case may be. Neither the City nor the Paying Agent take any responsibility for the information contained in this Appendix. No assurances can be given that DTC, DTC Participants or Indirect Participants will distribute to the Beneficial Owners (a) payments of interest, principal or premium, if any, with respect to the Bonds, (b) certificates representing ownership interest in or other confirmation or ownership interest in the Bonds, or (c) redemption or other notices sent to DTC or Cede & Co., its nominee, as the registered owner of the Bonds, or that they will so do on a timely basis, or that DTC, DTC Participants or DTC Indirect Participants will act in the manner described in this Appendix. The current "Rules" applicable to DTC are on file with the Securities and Exchange Commission and the current "Procedures" of DTC to be followed in dealing with DTC Participants are on file with DTC. 1. The Depository Trust Company, New York, NY, will act as securities depository for the securities (the "Bonds"). The Bonds will be issued as fully -registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully -registered Bond certificate will be issued for the Bonds, in the aggregate principal amount of such issue, and will be deposited with DTC. If, however, the aggregate principal amount of any issue exceeds $500 million, one certificate will be issued with respect to each $500 million of principal amount and an additional certificate will be issued with respect to any remaining principal amount of such issue. 2. DTC, the world's largest depository, is a limited -purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 2.2 million issues of U.S. and non-U.S. equity, corporate and municipal debt issues, and money market instrument from over 100 countries that DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates the post -trade settlement among Direct Participants of sales and other securities transactions in deposited securities through electronic computerized book -entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly -owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC, in turn, is owned by a number of Direct Participants of DTC and Members of the National Securities Clearing E-1 1 �� Corporation, Fixed Income Clearing Corporation, and Emerging Markets Clearing Corporation (NSCC, FICC, and EMCC, also subsidiaries of DTCC), as well as by the New York Stock Exchange, Inc., the American Stock Exchange LLC, and the National Association of Securities Dealers, Inc. Access to the DTC system is also available to others such as both U.S. and non- U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). DTC has a Standard & Poor's rating of AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com and www.dtc.org. The information contained on this Internet site is not incorporated herein by reference. 3. Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond ("Beneficial Owner") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Bonds, except in the event that use of the book -entry system for the Bonds is discontinued. 4. To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co. or such other name as may be requested by an authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of Cede & Co. or such other nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. 5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Owners of Bonds may with to take certain steps to augment transmission to them of notices of significant events with respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendments to the security documents. For example, Beneficial Owners of Bonds may wish to ascertain that the nominee holding the Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Owners, in the alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request that copies of the notices be provided directly to them. 6. Redemption notices shall be sent to DTC. If less than all of the Bonds within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. 7. Neither DTC nor Cede & Co. (nor such other DTC nominee) will consent or vote with respect to the Bonds unless authorized by a Direct Participant in accordance with DTC's E-2 Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts the Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). 8. Redemption proceeds, distributions, and interest payments on the Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants' accounts, upon DTC's receipt of funds and corresponding detail information from the City or the Paying Agent on payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC nor its nominee, the Paying Agent, or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the City or the Paying Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. 9. DTC may discontinue providing its services as securities depository with respect to the Bonds at any time by giving reasonable notice to the City or the Paying Agent. Under such circumstances, in the event that a successor securities depository is not obtained, Bond certificates are required to be printed and delivered. 10. The City may decide to discontinue use of the system of book -entry -only transfers through DTC (or a successor securities depository). In that event, Bond certificates will be printed and delivered to DTC. 11. The information in this section concerning DTC and DTC's book -entry system has been obtained from sources that the City believes to be reliable, but the City takes no responsibility for the accuracy thereof. E-3 CITY OF NATIONAL CITY 2012 GENERAL OBLIGATION REFUNDING BONDS BOND PURCHASE AGREEMENT 2012 City of National City 1243 National City Boulevard National City, California 91950-4301 Ladies and Gentlemen: Estrada Hinojosa & Co., Inc. (the "Underwriter") offers to enter into this Bond Purchase Agreement (this "Purchase Agreement") with the City of National City (the "City"), which, upon your acceptance hereof, will be binding upon the City and the Underwriter. This offer is made subject to (i) the written acceptance of this Purchase Agreement by the City and (ii) withdrawal by the Underwriter upon written notice (by telecopy or otherwise) delivered to the City at any time prior to the acceptance of this Purchase Agreement by the City. The City acknowledges and agrees that: (i) the purchase and sale of the Bonds (as defined below) pursuant to this Purchase Agreement is an arm's length commercial transaction between the City and the Underwriter; (ii) in connection with such transaction, the Underwriter is acting solely as a principal and not as an agent or a fiduciary of the City; (iii) the Underwriter has not assumed (individually or collectively) a fiduciary responsibility in favor of the City with respect to: (x) the offering of the Bonds or the process leading thereto (whether or not any Underwriter, or any affiliate of the Underwriter, has advised or is currently advising the City on other matters); or (y) any other obligation to the City except the obligations expressly set forth in this Purchase Agreement; and (iv) the City has consulted with its own advisors to the extent it has deemed appropriate in connection with the Bonds. 1. Purchase and Sale of the Bonds. Upon the terms and conditions and in reliance upon the representations, warranties and agreements herein set forth, the Underwriter hereby agrees to purchase from the City for reoffering to the public, and the City hereby agrees to sell to the Underwriter for such purpose, all (but not less than all) of $ in aggregate principal amount of the City's 2012 General Obligation Refunding Bonds (the "Bonds"). The Bonds shall bear interest at the rates and shall mature in the years shown in Appendix A hereto, which is incorporated herein by this reference. i g The purchase price of the Bonds shall be $ , consisting of the $ principal amount of the Bonds, plus $ net original issue premium, less an underwriter's discount of $ 2. The Bonds; Purpose of the Issue. The Bonds shall be dated the date of their original delivery. The Bonds shall mature on August 1 in the years shown in Appendix A hereto, except as provided herein, and shall otherwise be as described in, and shall be issued and secured under the provisions of the Resolution of the City Council adopted on , 2012 (the "Bond Resolution"), and Articles 9 and 11 of Chapter 3 of Part 1 of Division 2 of Title 5 of the California Government Code, commencing with Section 53550 of said Code (the "Bond Law") and other applicable provisions of law. The Bonds shall be executed and delivered under and in accordance with the provisions of the Paying Agent Agreement, dated as of July 1 2012 (the "Paying Agent Agreement") between the City and Union Bank, N.A., as paying agent (the "Paying Agent"). The Bonds shall be issued for Lice pure,.., of refunding the City of National City General Obligation Bonds, Election of 2002, Series A (the "Prior Bonds"), in accordance with Irrevocable Refunding Instructions (the "Refunding Instructions") to be given by the City to Union Bank of California, N.A., as paying agent for the Prior Bonds (the "Prior Bonds Paying Agent"). 3. Use of Documents. The City hereby authorizes the Underwriter to use, in connection with the offer and sale of the Bonds, this Purchase Agreement, the Preliminary Official Statement (defined below), the Official Statement (defined below), the Continuing Disclosure Certificate (defined below), the Paying Agent Agreement, the Refunding Instructions and all information contained herein and therein and all of the documents, certificates or statements furnished by the City to the Underwriter in connection with the transactions contemplated by this Purchase Agreement (except as such documents otherwise provided). To assist the Underwriter in complying with Securities and Exchange Commission Rule 15c2-12(b)(5) ("Rule 15c2-12"), the City will execute a Continuing Disclosure Certificate (the "Continuing Disclosure Certificate") pursuant to which it will agree to provide annual reports and notices of certain events. 4. Public Offering of the Bonds. The Underwriter agrees to make a bona fide public offering of all the Bonds at the initial public offering prices or yields to be set forth on the cover page of the Official Statement and Appendix A hereto. Subsequent to such initial public offering, the Underwriter reserves the right to change such initial public offering prices or yields as it deems necessary in connection with the marketing of the Bonds. 5. Review of Official Statement. The Underwriter hereby represents that it has received and reviewed the Preliminary Official Statement with respect to the Bonds, dated , 2012 (the Preliminary Official Statement"). The City represents that it deemed the Preliminary Official Statement to be final as of its date, except for either revision or addition of the offering price(s), yield(s) to maturity, selling compensation, aggregate principal amount and maturity value, denominational amount and maturity value per maturity, delivery date, rating(s) and other terms of the Bonds which depend upon the foregoing as provided in and under Rule 15c2-12. The Underwriter agrees that prior to the time the final Official Statement (the "Official Statement") relating to the Bonds is available, the Underwriter will send to any potential purchaser of the Bonds, upon the request of such potential purchaser, a copy of the most recent Preliminary Official Statement. Such Preliminary Official Statement shall be sent by first class mail (or other equally prompt means) not later than the first business day following the date upon which each such request is received. The Underwriter hereby represents that it will provide, consistent with the requirements of Municipal Securities Rulemaking Board ("MSRB") Rule G-32, for the delivery of a copy of the Official Statement to each customer who purchases any Bonds during the underwriting period (as such term is defined in MSRB Rule G-11), and deliver a copy of the Official Statement to a national repository on or before the Closing Date, and that it will otherwise comply with all applicable statutes and regulations in connection with the offering and sale of the Bonds, including, without limitation, MSRB Rule G-32 and Rule 15c2-12. References herein to the Preliminary Official Statement and the final Official Statement include the cover page and all appendices, exhibits, maps, reports and statements included therein or attached thereto. 6. Closing. At 9:00 A.M., California time, on , 2012, or at such other time or on such other date as shall have been mutually agreed upon by the City and Underwriter, (the "Closing Date"), the City will deliver to the Underwriter at the offices of The Depository Trust Company ("DTC") in New York, New York, or at such other place as the City and the Underwriter may mutually agree upon, the Bonds in fully registered book -entry form, duly executed and registered in the name of Cede & Co., as nominee of DTC, and in San Francisco, California, the other documents hereinafter mentioned; and the Underwriter will accept such delivery and pay the purchase price thereof in immediately available funds by wire transfer to (i) the escrow account established by the Prior Bonds Paying Agent and (ii) to the Paying Agent, to pay the costs of issuing the Bonds. 7. Representations, Warranties and Agreements of the City. The City hereby represents, warrants and agrees with the Underwriter that: (a) Due Organization. The City is a general law city and municipal corporation duly organized and validly existing under the Constitution and laws of the State of California, with the power to issue the Bonds under the Bond Law; (b) Due Authorization. (i) On or before the Closing Date, the City will have taken all action required to be taken by it to authorize the issuance and delivery of the Bonds; (ii) the City has full legal right, power and authority to enter into the Paying Agent Agreement, this Purchase Agreement, the Refunding Instructions and the Continuing Disclosure Certificate, and to perform its obligations under the Paying Agent Agreement, the Refunding Instructions and the Continuing Disclosure Certificate; and (iii) this Purchase Agreement constitutes, and when executed, the Paying Agent Agreement, the Refunding Instructions and the Continuing Disclosure Certificate, will constitute the valid and legally binding obligation of the City; -3- 13 (c) Consents. Except for the action of parties hereto, no consent, approval, authorization, order, filing, registration, qualification, election or referendum of or by any court or governmental agency or public body whatsoever is required in connection with the issuance, delivery or sale of the Bonds or the consummation of the other transactions contemplated herein or hereby, except for such actions as may be necessary to qualify the Bonds for offer and sale under the Blue Sky or other securities laws and regulations of such states and jurisdictions of the United States as the Underwriter may reasonably request, or which have not been taken or obtained; (d) Internal Revenue Code. The City has covenanted to comply with the Internal Revenue Code of 1986, as amended, with respect to the Bonds; (e) No Conflicts. To the hest knowledge of the City, the issuance of the Bonds, and the execution, delivery and performance of this Purchase Agreement, the Paying Agent Agreement, the Refunding Instructions, the Continuing Disclosure Certificate and the Bonds, and the compliance with the provisions hereof do not conflict with or constitute on the part of the City a violation of or default under, the Constitution of the State of California or any existing law, charter, ordinance, regulation, decree, order or resolution, and do not conflict with or result in a violation or breach of, or constitute a default under, any agreement, indenture, mortgage, lease or other instrument to which the City is a party or by which it is bound or to which it is subject; (f) Litigation. No action, suit, proceeding, hearing or investigation is pending or, based on reasonable inquiry, threatened against the City: (i) in any way affecting the existence of the City or in any way challenging the respective powers of the several officers of the City required to execute any documents or certificates in connection with the delivery of the Bonds or of the titles of the officials of the City to such offices; or (ii) seeking to restrain or enjoin the sale, issuance or delivery of any of the Bonds, the application of the proceeds of the sale of the Bonds, or the collection of taxes of the City pledged or to be pledged or available to pay the principal of and interest on the Bonds, or the pledge thereof, or, the levy of any taxes contemplated by the Bond Resolution, or in any way contesting or affecting the validity or enforceability of the Bonds, the Paying Agent Agreement, the Refunding Instructions, the Continuing Disclosure Certificate or this Purchase Agreement or contesting the powers of the City or its authority with respect to the Bonds, the Paying Agent Agreement, the Refunding Instructions, the Continuing Disclosure Certificate, or this Purchase Agreement; or (iii) in which a final adverse decision could (a) materially adversely affect the operations of the City or the consummation of the transactions contemplated by this Purchase Agreement or the Paying Agent Agreement„ (b) declare this Purchase Agreement to be invalid or unenforceable in whole or in material part, or (c) adversely affect the exclusion of the interest -4- /3/ (g) paid on the Bonds from gross income for federal income tax purposes and the exemption of such interest from California personal income taxation; No Other Debt. Between the date hereof and the Closing Date, without the prior written consent of the Underwriter, neither the City directly, nor any other governmental agency or other body on behalf of the City, will have issued in the name and on behalf of the City any bonds, notes or other obligations for borrowed money except for such borrowings as may be described in or contemplated by the Official Statement; (h) Arbitrage Certificate. The City has not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that the City is a bond issuer whose arbitrage certificates may not be relied upon; (i) Continuing Disclosure. Except as disclosed in the Official Statement, the City has not failed to comply in all material respects with any previous continuing disclosure undertaking under Rule 15c2-12 during the past five years; and (j) Certificates. Any certificates signed by any officer of the City and delivered to the Underwriter shall be deemed a representation by the City to the Underwriter, but not by the person signing the same, as to the statements made therein. 8. Representations, Warranties and Agreements of the Underwriter. The Underwriter represents to and agrees with the City that, as of the date hereof and as of the Closing Date: (a) The Underwriter is duly authorized to execute this Purchase Agreement and to take any action under this Purchase Agreement required to be taken by it. (b) The Underwriter is in compliance with MSRB Rule G-37 with respect to the City, and is not prohibited thereby from acting as underwriter with respect to securities of the City. (c) The Underwriter has, and has had, no financial advisory relationship with the City with respect to the Bonds, and no investment firm controlling, controlled by or under common control with the Underwriter has or has had any such financial advisory relationship. (d) The Underwriter has reasonably determined that the City's obligations under the Continuing Disclosure Certificate are sufficient to effect compliance with Rule 15c2-12. 9. Covenants of the City. The City covenants and agrees with the Underwriter that: -5- 13 (a) Securities Laws. The City will furnish such information, execute such instruments, and take such other action in cooperation with the Underwriter if and as the Underwriter may reasonably request in order to qualify the Bonds for offer and sale under the Blue Sky or other securities laws and regulations of such states and jurisdictions, provided, however, that the City shall not be required to consent to service of process in any jurisdiction in which they are not so subject as of the date hereof; (b) Application of Proceeds. The City will apply the proceeds from the sale of the Bonds for the purposes for which the Bonds were authorized; (c) Official Statement. The City hereby agrees to deliver or cause to be delivered to the Underwriter, not later than the 7`h business day following the date this Purchase Agreement is signed, copies of a final Official Statement substantially in the form of the Preliminary Official Statement, with only such changes therein as shall have been accepted by the Underwriter and the City (such Official Statement with such changes, if any, and including the cover page and all appendices, exhibits, maps, reports and statements included therein or attached thereto being herein called the "Official Statement") in such quantities (including a representative number of originally executed copies) as may be requested by the Underwriter in order to permit the Underwriter to comply with paragraph (b)(4) of Rule 15c2-12 and with the rules of the Municipal Securities Rulemaking Board; (d) Subsequent Events. The City hereby agrees to notify the Underwriter of any event or occurrence that may affect in any material respect the accuracy or completeness of any information set forth in the Official Statement relating to the City, until the date which is 90 days following the Closing Date or until such time (if earlier) as the Underwriter shall no longer hold any of the Bonds for sale; (e) Amendments to Official Statement. For a period of 90 days after the Closing Date or until such time (if earlier) as the Underwriter shall no longer hold any of the Bonds for sale, the City will not adopt any amendment of or supplement to the Official Statement to which, after having been furnished with a copy, the Underwriter shall object in writing or which shall be disapproved by the Underwriter (the Underwriter's approval of such amendment or supplement shall not be unreasonably withheld); and if any event relating to or affecting the City shall occur as a result of which it is necessary, in the opinion of the Underwriter, to amend or supplement the Official Statement in order to make the Official Statement not misleading in light of the circumstances existing at the time it is delivered to a purchaser, the City shall forthwith prepare and furnish (at the expense of the City) a reasonable number of copies of an amendment of or supplement to the Official Statement (in form and substance satisfactory to the Underwriter) which will amend or -6- /33 supplement the Official Statement so that it will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at the time such supplemental Official Statement is delivered to a purchaser, not misleading. 10. Conditions to Closing. The Underwriter has entered into this Purchase Agreement in reliance upon the representations and warranties of the City contained herein and the performance by the City of its obligations hereunder, both as of the date hereof and as of the date of Closing. The Underwriter's obligations under this Purchase Agreement are and shall be subject at the option of the Underwriter, to the following further conditions at the Closing Date: (a) Representations True. The representations and warranties of the City contained herein shall be true, complete and correct in all material respects at the date hereof and at and as of the Closing Date as if made on and as of the Closing Date, and the statements made in all certificates and other documents delivered to the Underwriter on the Closing Date pursuant hereto shall be true, complete and correct in all material respects on the Closing Date; and each of the City shall be in compliance with each of the agreements made by it in this Purchase Agreement; (b) (c) Obligations Performed. On the Closing Date, (i) the Paying Agent Agreement, the Official Statement, this Purchase Agreement, the Continuing Disclosure Certificate and the Refunding Instructions shall not have been amended, modified or supplemented except as may have been agreed to in writing by the Underwriter; and (ii) all actions under the Bond Law which, in the opinion of Jones Hall, A Professional Law Corporation, San Francisco, California ('Bond Counsel"), shall be necessary in connection with the transactions contemplated hereby shall have been duly taken and shall be in full force and effect. Adverse Rulings. No decision, ruling or finding shall have been entered by any court or governmental authority since the date of this Purchase Agreement (and not reversed on appeal or otherwise set aside), or to the best knowledge of the City, pending or threatened which has any of the effects described in Section 7(f) or contesting in any way the completeness or accuracy of the Official Statement; (d) Marketability. Between the date hereof and the Closing Date, the market price or marketability or the ability of the Underwriter to enforce contracts for the sale of the Bonds, at the initial offering prices set forth in the Official Statement, of the Bonds shall not have been materially adversely affected by reason of any of the following: (1) legislation enacted or introduced in the Congress or recommended for passage by the President of the United States, or a decision rendered by a court established under Article III of the Constitution of the United States or by the -7- ,3 United States Tax Court, or an order, ruling, regulation (final, temporary or proposed) or official statement issued or made: (i) by or on behalf of the United States Treasury Department, or by or on behalf of the Internal Revenue Service, with the purpose or effect, directly or indirectly, of causing inclusion in gross income for purposes of federal income taxation of the interest received by the owners of the Bonds; or (ii) by or on behalf of the Securities and Exchange Commission, or any other governmental agency having jurisdiction over the subject matter thereof, to the effect that the Bonds, or obligations of the general character of the Bonds, including any and all underlying arrangements, are not exempt from registration under the Securities Act of 1933, as amended; (2) legislation enacted by the legislature of the State of California (the "State"), or a decision rendered by a court of the State, or a ruling, order, or regulation (final or temporary) made by State authority, which would have the effect of changing, directly or indirectly, the State tax consequences of interest on obligations of the general character of the Bonds in the hands of the holders thereof; (3) the declaration of war or engagement in major military hostilities by the United States or the occurrence of any other national emergency or calamity relating to the effective operation of the government or the financial community in the United States; the declaration of a general banking moratorium by federal, New York or California authorities, or the general suspension of trading on any national securities exchange; the imposition by the New York Stock Exchange, other national securities exchange, or any governmental authority, of any material restrictions not now in force with respect to the Bonds, or obligations of the general character of the Bonds, or securities generally, or the material increase of any such restrictions now in force; (6) an order, decree or injunction of any court of competent jurisdiction, or order, filing, regulation or official statement by the Securities and Exchange Commission, or any other governmental agency having jurisdiction over the subject matter thereof, issued or made to the effect that the issuance, offering or sale of obligations of the general character of the Bonds, or the issuance, offering or sale of the Bonds, as contemplated hereby or by the Official Statement, is or would 8- /3 be in violation of the federal securities laws, as amended and then in effect; (7) the withdrawal or downgrading of any rating of the City's outstanding indebtedness by a national rating agency; or (8) any event occurring, or information becoming known which, in the reasonable judgment of the Underwriter, makes untrue in any material adverse respect any statement or information contained in the Official Statement, or has the effect that the Official Statement contains any untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements made therein, in light of the circumstances under which they were made, not misleading, and which the City fails or is unwilling to correct by the submission of supplemental information. (e) Delivery of Documents. On or before the Closing Date, the City shall deliver (or cause to be delivered) sufficient copies of the following documents, in each case dated as of the Closing Date and satisfactory in form and substance to the Underwriter: (1) Paying Agent Agreement. The Paying Agent Agreement, fully executed by the City and the Paying Agent. (2) Refunding Instructions. Refunding Instructions, fully executed by the City and the Prior Bonds Paying Agent. (3) Bond Counsel Opinion. An approving opinion of Bond Counsel, as to the validity and tax-exempt status of the Bonds, dated the Closing Date, addressed to the City, in substantially the form attached as an appendix to the Official Statement, together with a reliance letter from Bond Counsel to the effect that the Underwriter can rely upon such approving opinion. (4) Bond Counsel Supplemental Opinion. The supplemental opinion of Bond Counsel to the effect that: (i) The statements contained in the Official Statement pertaining to the Bonds under the captions "INTRODUCTION," "THE BONDS," "SECURITY FOR THE BONDS," and "TAX MATTERS," excluding any material that may be treated as included under such captions by cross-reference, insofar as such statements expressly summarize certain provisions of the Bonds, the Paying Agent Agreement and its final opinion, are accurate in all material respects; and (ii) the Bonds are exempt from registration under the Securities Act of 1933, as amended. -9- (5) Disclosure Counsel 10b-5 Opinion. The opinion of Bond Counsel, acting as disclosure counsel to the City ("Disclosure Counsel"), in form and substance satisfactory to the Underwriter, addressed to the Underwriter and the City, dated the Closing Date, to the effect that during the course of serving as Disclosure Counsel in connection with the issuance of the Bonds and without having undertaken to determine independently or assuming any responsibility for the accuracy, completeness or fairness of the statements contained in the Official Statement, no information came to the attention of the attorneys in such firm rendering legal services in connection with the issuance of the Bonds that would lead them to believe that the Official Statement (excluding therefrom the financial statements, any financial or statistical data, or forecasts, charts, numbers, estimates, projections, assumptions or expressions of opinion included in the Official Statement and the appendices to the Official Statement as to which no opinion need be expressed), as of the date thereof or the Closing Date, contains any untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; (6) City Attorney Opinion. The opinion of the City Attorney, in form and substance satisfactory to the Underwriter, addressed to the Underwriter and the City, dated the Closing Date, to the effect that: (i) The Bond Resolution has been duly adopted and is in full force and effect and has not been amended or rescinded in whole or in part; (ii) The Paying Agent Agreement, the Purchase Contract and the Continuing Disclosure Certificate have been duly authorized, executed and delivered by the City and constitute the valid, legal and binding agreements of the City enforceable in accordance with their terms. (iii) The City is a general law city and municipal corporation duly organized and validly existing under the Constitution and laws of the State of California; (iv) The statements contained in the Official Statement under the caption "ABSENCE OF MATERIAL LITIGATION" fairly and accurately summarize the information presented therein; provided that the City Attorney need not express any opinion with respect to any financial or statistical information contained therein; and (v) Except as otherwise disclosed in the Official Statement and to the best knowledge of such counsel after due -10- 3 7 (7) (8) (9) inquiry, there is no litigation, proceeding, action, suit, or investigation at law or in equity before or by any court, governmental agency of body, pending or threatened against the City, challenging the creation, organization or existence of the City, or the validity of the Bond Resolution or seeking to restrain or enjoin the repayment of the Bonds or in any way contesting or affecting the validity of the Bond Resolution. Certificate of the City. A certificate signed by appropriate officials of the City to the effect that (i) such officials are authorized to execute the Paying Agent Agreement, the Refunding Instructions, the Continuing Disclosure Certificate and this Purchase Agreement; (ii) the representations, agreements and warranties of the City herein are true and correct in all material respects as of the date of Closing; (iii) the City has complied with all the terms of the Bond Resolution, the Paying Agent Agreement, the Refunding Instructions and this Purchase Agreement that are necessary to be complied with prior to or before the Closing Date and such documents and the Continuing Disclosure Certificate are in full force and effect; and (iv) the City has reviewed the Official Statement and on such basis certifies that the Official Statement does not contain any untrue statement of a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading, excepting therefrom those sections of the Official Statement describing the Depository Trust Company and its Book -Entry -Only System, any bond insurance and the provider of such bond insurance. Arbitrage. A non -arbitrage certificate of the City in a form satisfactory to Bond Counsel. Ratings. Evidence satisfactory to the Underwriter that the Bonds shall have been rated " " by Standard & Poor's Ratings Service and that such ratings have not been revoked or downgraded. (10) Bond Resolution. A certificate, together with fully executed copies of the Bond Resolution, of the City Clerk to the effect that: (i) such copies are true and correct copies of the Bond Resolution; and (ii) that the Bond Resolution was duly adopted and has not been modified, amended, rescinded or revoked and is in full force and effect on the Closing Date. -11- (11) Continuing Disclosure Certificate. A Continuing Disclosure Certificate of the City in substantially the form set forth in the Preliminary Official Statement. (10) Underwriter's Certifications. At or before Closing, and contemporaneously with the acceptance of delivery of the Bonds and the payment of the purchase price thereof, the Underwriter will provide (or cause to be provided) to the City: (i) the receipt of the Underwriter, in form satisfactory to the City and signed by an authorized officer of the Underwriter, confirming delivery of the Bonds to the Underwriter, receipt of all documents required by the Underwriter, and the satisfaction of all conditions and terms of this Purchase Agreement by the City, and confirming to the City that as of the Closing Date all of the representations of the Underwriter contained in this Purchase Agreement are true, complete and correct in all material respects. (ii) a certificate of the Underwriter regarding the initial reoffering price of the Bonds to the public, in form and substances acceptable to the Underwriter and Bond Counsel. (11) Certificate of Paying Agent and Prior Bonds Paving Agent. A certificate of each of the Paying Agent and the Prior Bonds Paying Agent, dated the date of Closing, addressed to the City and the Underwriter, to the following effect: (i) The Paying Agent is duly organized and existing as a national banking association under the laws of the United States of America, having the full power and authority to perform the duties of the Paying Agent and the Prior Bonds Paying Agent set forth in the Paying Agent Agreement and the Refunding Instructions, respectively. (ii) To the best knowledge of the Paying Agent, after due inquiry, there is no action, suit, proceeding or investigation, at law or in equity, before or by any court or governmental agency, public board or body that has been served on the Paying Agent or threatened against the Paying Agent which in the reasonable judgment of the Paying Agent would affect the existence of the Paying Agent or in any way contesting the powers of the Paying Agent or its authority to perform its obligation under the Paying Agent Agreement or the Refunding Instructions (in its role as Prior Bonds Paying Agent). (iii) To the best knowledge of the Paying Agent, the acceptance by the Paying Agent of its duties and obligations under the Paying Agent Agreement and the -12- 13l (f) Refunding Instructions (in its role as Prior Bonds Paying Agent) and compliance with the provisions thereof will not conflict with or constitute a breach of or default under any law, administrative regulation, consent decree or any agreement or other instrument to which the Paying Agent is subject or by which the Paying Agent is bound. (12) Other Documents. Such additional legal opinions, certificates, proceedings, instruments and other documents as the Underwriter or Bond Counsel may reasonably request to evidence (i) compliance by the City with legal requirements, (ii) the truth and accuracy, as of the time of Closing, of the representations of the City herein contained, and (iii) the due performance or satisfaction by the City at or prior to such time of all agreements then to be performed and all conditions then to be satisfied by the City. Termination. Notwithstanding anything to the contrary herein contained, if for any reason whatsoever the Bonds shall not have been delivered by the City to the Underwriter prior to the close of business, California time, on , 2012, then the obligation to purchase Bonds hereunder shall terminate and be of no further force or effect except with respect to the obligations of the City and the Underwriter under Section 12. If the City is unable to satisfy the conditions to the Underwriter's obligations contained in this Purchase Agreement or if the Underwriter's obligations shall be terminated for any reason permitted by this Purchase Agreement, this Purchase Agreement may be canceled by the Underwriter at, or at any time prior to, the time of Closing. Notice of such cancellation shall be given to the City in writing, or by telephone or telegraph, confirmed in writing. Notwithstanding any provision herein to the contrary, the performance of any and all obligations of the City hereunder and the performance of any and all conditions contained herein for the benefit of the Underwriter may be waived by the Underwriter in writing at its sole discretion. 11. Conditions to Obligations of the City. The performance by the City of its obligations is conditioned upon (i) the performance by the Underwriter of their obligations hereunder; and (ii) receipt by the City and the Underwriter of opinions and certificates being delivered on the Closing Date by persons and entities other than the City. 12. Expenses. The Underwriter shall be under no obligation to pay and the City shall pay or cause to be paid the expenses incident to the performance of the obligations of the City hereunder including but not limited to: (i) the fees and expenses of the City and City Attorney; (ii) the fees and expenses of Bond Counsel; (iii) the fees and expenses of any accountant, consultant or other expert retained by the City; (iv) all costs and expenses incurred in connection with the preparation and printing of the Bonds; (v) all expenses in connection with the preparation, printing, distribution and delivery of the Preliminary Official Statement, the Official Statement and any amendment or supplement thereto; (vi) fees and expenses of Standard & Poor's Ratings Service in connection with the rating of the Bonds; and (vii) fees of the verification agent; and (vii) the fees and expenses of the paying agent for the Bonds and the Prior Bonds Paying Agent. -13- 1 The Underwriter shall pay (from its underwriter's discount or otherwise), and the City shall be under no obligation to pay, all expenses incurred by the Underwriter in connection with the public offering and distribution of the Bonds, including but not limited to CDIAC, DTC, and CUSIP Bureau, if any, and all advertising expenses in connection with the public offering of the Bonds. 13. Notices. Any notice or other communication to be given under this Purchase Agreement may be given by delivering the same in writing: To the City: To the Underwriter. The City of National City 1243 National City Boulevard National City, California 91950-4301 Attention: City Manager Estrada Hinojosa & Co., Inc. 437 J Street, Suite 212 San DiegoCa 92:0 Attention: Ruben Mendoza 14. Parties in Interest; Survival of Representations and Warranties. This Purchase Agreement when accepted by the City in writing as heretofore specified shall constitute the entire agreement between the City and the Underwriter. This Purchase Agreement is made solely for the benefit of the City and the Underwriter (including the successors or assigns of the Underwriter). No person shall acquire or have any rights hereunder or by virtue hereof. All representations, warranties and agreements of the City in this Purchase Agreement shall survive regardless of (a) any investigation or any statement in respect thereof made by or on behalf of the Underwriter, and (b) delivery of and payment by the Underwriter for the Bonds hereunder. 15. Severability. In the event any provision of this Purchase Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision thereof. 16. Non -assignment. Notwithstanding anything stated to the contrary herein, neither party hereto may assign or transfer its interest herein, or delegate or transfer any of its obligations hereunder, without the prior consent of the other party hereto. 17. Entire Agreement. This Purchase Agreement, when executed by the parties hereto, shall constitute the entire agreement of the parties hereto, including their permitted successors and assigns, respectively. 18. Execution in Counterparts. This Purchase Agreement may be executed in several counterparts each of which shall be regarded as an original and all of which shall constitute but one and the same document. -14- i i/ 19. Applicable Law. This Purchase Agreement shall be interpreted, governed and enforced in accordance with the law of the State of California applicable to contracts made and performed in such State. Very truly yours, ESTRADA HINOJOSA & CO., INC. By: Authorized Officer The foregoing is hereby agreed to and accepted as of the date first above written: CITY OF NATIONAL CITY By: City Manager -15- / 9¢_._ APPENDIX A MATURITY SCHEDULE $ Serial Bonds Maturity Date Principal (August 1) Amount Interest Yield Price 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Exhibit A-1 %4'5 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: June 19, 2012 AGENDA ITEM NO. 25 EM TITLE: Resolution of the City Council of the City of National City adopting a budget for the 2012-2013 fiscal year. reslie Deese PREPARED BY: Stacey Stevenson PHONE: 336-4308 EXPLANATION: DEPARTMENT: APPROVED Finance/ City ces On May 22, 2012, the City Council of the City of National City considered the City's Preliminary Budget for fiscal year 2012-2013 as presented and recommended. Based on the information presented, the City Council provided direction to modify expenditures and finalize the budget for adoption. On May 23, 2012, staff began incorporating City Council directed inclusions. In addition, staff engaged in a comprehensive, line by line of the assumptions presented in the Preliminary Budget as well as a review of additional budgetary data that became available after the meeting of May 22, 2012. The budget presented for adoption represents the totality of these efforts. FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Adopt the Final Budget for Fiscal Year 2012-2013 BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: 1. City Council Resolution 2. Budget Binder RESOLUTION NO. 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ADOPTING A BUDGET FOR THE 2012-2013 FISCAL YEAR WHEREAS, the City Manager on May 22, 2012, submitted to the City Council a Recommended Budget for the 2012-2013 fiscal year, and said budget has been discussed and deliberated in public session. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that the budget for the fiscal year beginning July 1, 2012, with City expenditures totaling $75,960,161 is hereby approved, adopted, and appropriated. BE IT FURTHER RESOLVED that the fund appropriations set forth in the Projected Expenditures column of Attachment "1" shall be the maximum expenditures authorized for those funds. The City Manager is hereby authorized to make budgetary revisions within and between budget line items within a fund. BE IT FURTHER RESOLVED that the City Manager is hereby authorized to transfer monies up to the maximum set forth in the Transfers column in Attachment "1". BE IT FURTHER RESOLVED that the City Council does hereby authorize and approve the number and classification of employees in the respective functions, departments, and/or activities as set forth in the fiscal year 2012-2013 budget. PASSED and ADOPTED this 19th day of June, 2012. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney CITY OF NATIONAL CITY BUDGET ANALYSIS BY FUND, ALL FUNDS FISCAL YEAR 2012-2013 ATTACHMENT 1 Fund Number Fund Title Estimated Beg. Fund Bal. Estimated 71112012 Revenue Estimated Projected Ending Transfer In Transfer Out i Expenditures Ba1.613012013 001 General Fund Undesignated Balar 7,059,792 7,002,376, General Fund - Committed for 1,671,257 1,671,257 General Fund - Assigned for 4,829,800 4,829,800 Total General Fund 13,560,849 39,349,728 120,612 2,049,631 37,478,125 13,503,433, 104 Library Fund 105 Parks Maintenance Fund 108 Library Capital Outlay 109 Gas Taxes Fund 111 P.O.S.T Fund 115 Park & Rec Capital Outlay Fund 120 Plan Checking Revolvirtg Fund 125 Sewer Service Fund 130 EMT-D Revolving Fund 131 Asset Forfeiture Fund 154 State Library Fund 159 General Plan Update Reserve 166 Nutrition Center 171 Library School District Contract 172 Trash Rate Stabilization Fund 189 Civic Center Refurbishing 190 30th Street Cleanup Fund - 1303 191 STOP Project 198 Property Evidence Seizure 200 30th Street Cleanup - 1304 i 201 NCJPFA Debt Service Fund 208 Supp. Law Enforcement Svcs Funi 211 Security & Alarm Regulation Fund 212 Personnel Compensation Fund 241 National City Library State Grant 242 N. City Library Matching Fund 246 Wings Grant 253 Recreational Activities Fund 259 Library Bonds Debt Service Fund 277 NC Public Library Donations Fund 290 Police Department Grants 296 Engineering Dept Grants 301 Grant - C.D.B.G 307 312 323 325 326 343 345 346 348 502 505 506 626 627 628 629 632 643 644 731 Proposition "A" Fund STP Local(fransnet Highway Safe Routes to Schools Development Impact Fees Transportation Impact Fee Fund State -Local Partnership Traffic Congestion Relief Prop 1B State Grant Section 8 HOME Program HUD Program Income Facilities Maintenance Fund Liability Insurance Fund General Services Fund Information Systems Maintenance General Accounting Services Motor Vehicle Svc Fund Equipment Replacement Reserve Construction & Demolition Debris 168,102 152,189 976,012 588,904 427,586 199,946 1,364,369 154,886 458,456 100,191 119,633 258,452 163,412 379,757 1,756,754 300,365 73,822 11,182 756,239 95,405 (33,168) 712,616 19,620 119,600 92,893 629,964 1,142,777 706,853 411,818 104,231 1,669,527 48,100 0 300,000 7,256,309 302,794 63,105 0 0 439,180 308,499 17,740 144,500 17,867 2,942 , 55,000 0 7,408 i 490,225 0' 6,000 0 125,000 0 0 979,698 106,351 15,000 847,845 398,889 234,757 2,000 (400,235) 349,540 (44,935) 0 866,002 770,000 (524,882) 1,342,511 175,488 28.140 (61,537) 117,944 356,102 2,549,582 2,297,028 1,271,356 344,588 1,921,982 120,612 1,512,806 480,148 1,798, 384 242,080 119,118 0 36,000 7,135 1,211 0 61,537 1,223 4,960 9,436,000 295,176 7,400 2,519,173 2,827,604 0i 2,037,291 1,297,553 1 1,171,187 0 1 575,342 50,000 1,772,741 . 1,121,671 217,000 2,040,219 48,100 1,232 300,000 6,948,045 339,735 0 5,500 0 747,679 7,000 112,613 100,000 0 0 11,182 0 490,225 0 0 125,000 0 0 1,072,591 0 398,889 19,815 209,266 0 847,141 770,000 0 0 0 0 0 0 0 0 9,779,685 407,065 554,117 2,525,173 2,794,321 120,612 0 2,037,291 1,497,553 575,342 1,181,187 0 0 168,102 149,189 863,243 218,212 0 426,354 199,946 1,672,633 117,945 521,561 94,691 119,633, 258,452 174,1521 411,644 1,674,621 303,307 128,822 Oi 763,647 0i 95,4051 (27,168)1 712,616 $ 19,6201 119,6001 01 121,3511 847,8451 216,942' (259,961) (44,935) 18,861 0 (524,882) 0 1,378,511 182,623 29,351 0 119,167 361,062 2,205,897! 2,185,1391 724,639 338,588, 1,955,265 0 1,512,806) 280,148I 1,213,042 817,4221 169,1181 Total All Funds 37,813,305 74,684,515 2,745,585 2,745,585 75,960,161 36,537,659 j Account Number CITY OF NATIONAL CITY ESTIMATED FINANCING SOURCES SUMMARY BY FUND AND SOURCE FISCAL YEAR 2012-2013 Account Title 2012 2012 Adjstd Projected 2013 2011 Actuals Budget Actuals Estimates 001 001- 00000 TAXES: 3000 CURRENT YEAR -SECURED 2,758,397 2,710,280 2,463,276 3001 CURRENT YEAR -UNSECURED 68,296 75,000 148,990 3002 SUPPLEMENTAL ROLL 96,540 80,000 69,886 3003 PRIOR YEAR -SECURED & UNSECURED 4,322 0 2,795 3006 INTEREST, PENALTIES & DELINQ. 4,473 0 3,015 3007 MILE OF CARS SPEC. ASSESSMENT 0 0 113,348 3009 PROPERTY TAXES ALLOCATED (1,330,943) (1,328,037) (1,220,647) 3010 SALES & USE TAXES 9,837,376 9,449,369 9,806,309 3011 PROPERTY TAX: IN LIEU OF SALES TAX 3,024,675 3,235,456 3,403,217 3012 PROPERTY TAX: IN LIEU OF VLF 4,927,932 4,872,739 4,931,254 3014 PROP 172-PUBLIC SAFETY SALES TAX 100,580 130,622 124,901 3015 DISTRICT TRANSACTION & USE TAX 8,769,294 8,499,000 9,052,000 3016 AB1290 PROPERTY TAX PASS THROUGI 269,674 289,983 200,000 3020 TRANSIENT LODGING TAX 838,255 733,091 777,734 3030 CABLE TV FRANCHISE 442,603 412,960 348,263 3031 ELECTRIC FRANCHISE 689,470 710,154 690,000 3032 GAS FRANCHISE 81,838 80,012 80,000 3033 REFUSE FRANCHISE 420,559 410,000 415,000 3040 BUSINESS LICENSE TAX 580,302 545,000 550,000 3041 RESIDENTIAL RENTAL FEE 164,822 150,500 150,000 3042 PARATRANSIT FEES 1,800 4,000 0 SUBTOTAL 31,750,265 31,060,129 32,109,341 GENERAL FUND 2,710,280 75,000 80,000 0 0 0 (1,328,037) 10,567,101 3,522,366 4,931,260 125,000 9.410,000 200,000 750,000 412,960 710,154 80,012 420,000 550,000 150,000 0 33,366,096 001-00000 Use of Money and Property: 3300 INVESTMENT EARNINGS 270,307 369,900 324,831 318,827 3312 RENTAL 40,392 40,392 40,392 40,392 3314 RENTAL - LAND 282,515 266,372 265,402 265,400 3326 LEASE -OLD NATIONAL CITY LIBRARY 70,993 70,220 70,220 70,220 SUBTOTAL 664.207 746.884 700.845 694.839 001-0000 Inter -Governmental Revenue: 3400 STATE MOTOR VEHICLE IN LIEU 291,952 150,000 31,550 0 3420 STATE HOPTR 16,192 5,000 8,064 5,000 3455 CDC CONTRIBUTION 320,000 320,000 320,000 320,000 3452 MANDATED COST REIMBURSEMENT 27,975 10,000 25,841 10,000 3472 PORT OF SAN DIEGO Aquatic Center ProjE 0 0 830,000 0 SUBTOTAL 656,119 485,000 1,215,455 335,000 001-0000 Other: 3586 PHOTOCOPY SALES 155 50 155 50 3634 MISC. REVENUE 71,812 5,000 59,647 5,000 3636 REFUNDS & REIMBURSEMENTS 146,014 2,500 1,613 2,500 3654 ADM.COST FROM SUCCESSOR AGENCY 0 0 0 366,000 3999 TRANSFERS FROM OTHER FUNDS 1,742,375 1,186,082 1,144,125 120,612 SUBTOTAL 1,960,356 1,193,632 1,205,540 494,162 001-02000 City Clerk Revenues 3585 MISC. USER CHARGES 51 0 81 0 3634 MISC. REVENUE 3,182 500 1,041 500 SUBTOTAL 3,233 500 1,122 500 Account Number CITY OF NATIONAL CITY ESTIMATED FINANCING SOURCES SUMMARY BY FUND AND SOURCE FISCAL YEAR 2012-2013 Account Title 2012 2012 Adjstd Projected 2013 2011 Actuals Budget Actuals Estimates 001-04045 FINANCE REVENUES 3101 ADMINISTRATIVE FEES 3146 PARKING DISTRICT PERMIT 3585 MISC. USER CHARGES 3141 GARAGE SALE PERMITS 3589 RETURNED CHECK CHARGES SUBTOTAL 0 10,000 4,130 3,675 92 0 2,655 2,473 1,395 538 8,272 6,686 10,000 10,000 5,425 3,675 158 50 1,985 2,473 180 538 7,748 16,736 001-06027 PLANNING REVENUES 3143 HOME OCCUPATION PERMITS 3,740 3,300 2,970 2,200 3502 CONDITIONAL USE PERMIT 39,337 39,450 35,505 63,120 3504 INTERPRETATIONS/DETERMINATIONS 0 11,604 0 0 3506 PLANNED DEVELOPMENT PERMIT 40 5,918 0 0 3508 REQUEST INITIATE GP/SP CHANGE 0 0 75 0 3509 STREET VACATIONS 4,040 1,010 1,010 0 3510 TENTATIVE PARCEL MAP 3,250 6,500 1,625 6,500 3511 TENTATIVE SUBDIVISION MAP 4,970 4,970 2,485 9,940 3513 ZONE VARIANCE PERMIT 4,010 6,015 0 0 3514 DAY CARE CENTER 310 620 0 310 3521 COASTAL DEVELOPMENT PERMIT 0 2,485 2,485 2,485 3531 CERTIFICATE OF COMPLIANCE 0 672 0 0 3532 BANNERS/SIGNS - PROCESSING FEE 680 600 360 320 3581 ENVIRONMENTAL ASSESSMENT FORM 0 3,635 0 0 3584 SUBSTANTIAL CONFORMANCE 0 2,830 0 0 3585 MISC. USER CHARGES 7,067 0 69 0 3588 ZONING/REBUILD LETTER 451 750 1,013 750 3634 MISC. REVENUE 5,748 0 (1,269) 0 Subtotal 73,643 90,359 46,328 85,625 001-06028 BUILDING REVENUES 3101 ADMINISTRATIVE FEES 0 0 23,993 15,000 3120 BUILDING PERMITS 525,989 252,000 361,800 350,000 3144 HOUSE MOVING PERMITS 0 36,000 0 0 3204 ENFORCEMENT FINES & PENALTIES 0 0 68,159 50,000 3545 PLAN CHECKING FEE 354 0 55,266 60,000 3552 CONST. & DEMOLITION ADMIN FEE 0 7,670 6,549 5,000 3585 MISC. USER CHARGES 8,272 0 3,509 0 Subtotal 534,615 295,670 519,276 480,000 001-06029 ENGINEERING REVENUES 3125 SEWER PERMITS 0 0 391 0 3130 STREET & CURB PERMITS 8,510 4,455 2,970 4,000 3142 GRADING PERMITS 13,940 9,900 7,534 10,000 3144 HOUSE MOVING PERMITS 15,934 5,000 8,396 10,000 3146 PARKING DISTRICT PERMIT 0 3,000 560 550 3147 MISCELLANEOUS PERMITS 1,268 1,585 60 0 3160 UTILITY COMPANY PERMITS 26,410 50,000 26,410 26,000 3204 ENFORCEMENT FINES & PENALTIES 0 0 200 0 3528 SALE OF PLANS & SPECIFICATIONS 2,557 0 3,755 3,000 3547 STORM WATER MGT FEE (NPDES) 0 4,000 0 2,000 3557 TRAFFIC CONTROL PLAN/IMPACT STUD\ 0 0 5,250 7,875 3585 MISC. USER CHARGES 7,895 0 1,800 8,000 3634 MISC. REVENUES 8,743 4,000 3,786 301,000 3636 REFUND & REIMBURSEMENT 735,000 3647 20A CONVERSION REIMBURSEMENT 400,000 Subtotal 85,257 81,940 61,112 1,507,425 Account Number CITY OF NATIONAL CITY ESTIMATED FINANCING SOURCES SUMMARY BY FUND AND SOURCE FISCAL YEAR 2012-2013 Account Title 2012 2012 Adjstd Projected 2013 2011 Actuals Budget Actuals Estimates 001-11000 POLICE: 3100 ANIMAL LICENSES 8,394 8,000 5,600 8,000 3200 VEHICLE CODE FINES 158,063 160,000 140,173 160,000 3201 PARKING CITATIONS 502,665 405,000 413,005 405,000 3203 PARKING CITE ADMIN FEE 10,205 5,000 9,023 5,000 3205 PARKING CITE SIGN -OFF FEE 0 0 135 0 3220 OTHER FORFEITS & PENALTIES 5,029 5,000 62,299 5,000 3469 OVERTIME REIMBURSEMENTS 0 0 43,622 40,000 3533 BOOKING FEES 9,312 8,500 7,912 8,500 3537 MISC. POLICE SERVICES 2,382 3,000 3,209 3,000 3548 ANIMAL CONTROL REVENUES 0 100 0 0 3550 VEHICLE IMPOUND FEES 10,250 7,000 9,338 11,000 3551 ADMINISTRATIVE IMPOUND FEE -to. 190 35,000 48,918 65,000 3556 POLICE & FIRE SVCS - PORT OF SAN DIE 563,228 586,606 586,606 586,606 3558 TOW/IMPOUND REFERRAL FEES 40,810 29,680 62,640 122,520 3586 PHOTOCOPY SALES 11,018 9,500 11,212 9,500 3634 MISC. REVENUE 1,239 0 0 0 3636 11000-3636 REFUNDS & REIMBURSEMEP 3,840 3,062 0 0 3467 SCHOOL DISTRICT CONTRACT REIMB-N: 0 60,000 61,917 61,917 3467 SCHOOL DISTRICT CONTRACT REIMB-Sl 0 80,000 0 80,000 Subtotal 1,362,625 1,405,448 1,465,609 1,571,043 001-12124 FIRE PREVENTION: 3121 UNIFORM FIRE CODE PERMITS 0 500 0 500 3122 STORAGE TANK PERMITS 0 200 800 200 3541 PLAN REVIEW FIRE SYSTEMS 18,257 8,100 8,100 8,100 3542 ABANDONED VEHICLE ABATEMENT 0 0 0 0 3553 FIRE PERMIT REVIEW FEE 60,120 50,500 71,165 60,000 3561 WEED ABATEMENT 18,963- 0 4,052 0 001-12125 FIRE OPERATIONS: 3202 FALSE ALARM FINES 35,851 20,000 39,044 20,000 3322 AMR LEASE - FIRE STATION 55,424 57,320 60,395 57,320 3544 MISC. FIRE SERVICES 60,861 35,000 110,420 35,000 3555 FIRE PROT SVCS-LOWER SWEETWATER 705,192 210,000 349,371 260,000 3556 POLICE & FIRE SVCS - PORT OF SAN DIE( 194,425 202,494 151,870 202,494 3558 LSWFPD EQUIP REPLACEMENT 0 80,000 75,920 75,000 3636 REFUNDS & REIMBURSEMENTS 108,228 40,000 0 40,000 3637 DONATIONS 0 0 0 0 Subtotal 1,238,358 704,114 871,137 758,614 001-14000 RISK MANAGEMENT: 3632 COMP INSURANCE REIMBURSEMENT 26,928 25,000 36,155 25,000 3633 INSURANCE -CDC 0 0 0 0 Subtotal 26,928 25,000 36,155 25,000 Account Number CITY OF NATIONAL CITY ESTIMATED FINANCING SOURCES SUMMARY BY FUND AND SOURCE FISCAL YEAR 2012-2013 Account Title 2012 2012 Adjstd Projected 2013 2011 Actuals Budget Actuals Estimates 001-22000 3475 3630 3634 PUBLIC WORKS : TONNAGE DIVERSION GRANT ACCIDENT DAMAGES MISC. REVENUE 001-22221 PUBLIC WORKS STREETS: 3634 MISC. REVENUE 001-22223 PUBLIC WORKS FACILITIES MAINT. 3313 RENTAL-KIMBALL 3315 RENTAL -OTHER CITY PROPERTY 3634 MISC. REVENUE Subtotal 001-41000 3317 3572 3637 3637 RECREATION: RENTAL-LAS PALMAS GOLF COURSE MISC. RECREATION CHARGES DONATIONS M PORTILLO COMM CTR Subtotal 001-42000 PARKS: 3590 STREET TREE FEES Subtotal 001-45462 HOUSING AND GRANTS 3655 ASSET MANAGEMENT FEE Subtotal 001-45464 NEIGHBORHOOD SRVCS 3585 MISC. USER CHARGES Subtotal 104 104-00000 3009 3420 3634 3636 3999 GENERAL FUND TOTAL LIBRARY FUND General Operating Revenues PROPERTY TAXES ALLOCATED STATE HOPTR MISC. REVENUE REFUNDS & REIMBURSEMENTS TRANSFERS FROM OTHER FUNDS FUND TOTAL 105 PARKS MAINTENANCE FUND 3009 PROPERTY TAXES ALLOCATED 3420 STATE HOPTR 3999 TRANSFERS FROM OTHER FUNDS FUND TOTAL 108 LIBRARY CAPITAL OUTLAY 3050 REAL PROPERTY TRANSFER TAX 3565 BOOK FINES FUND TOTAL 34,847 140 389 23,078 25,000 0 8,982 726 0 1,852 0 25,000 0 0 1,099 2,400 2 0 900 500 38,103 27,900 85,608 82,000 12,965 5,000 3,060 0 500 0 102,133 87,000 0 0 2,400 30 0 1,013 500 34,955 27,900 79,762 82,000 5,547 5,000 0 0 0 0 85,309 87,000 65 400 0 400 65 400 0 400 0 0 0 20,000 0 0 0 20,000 6,868 0 13,641 0 6,868 0 13,641 0 38,511,047 36,210,662 38,373,573 39,470,340 614,682 623,364 6,234 6,600 18 0 3,311 0 819,208 754,558 1,443,453 1,384,522 716,261 704,673 7,264 2,180 456,012 406,977 1,179,537 1,113,830 62,026 56.890 118,916 563,743 4,657 0 0 1,131,837 1,700,237 656,904 5,427 610,466 1,272,797 77,760 71,646 26.471 48.938 104,231 120,584 623,364 6,600 0 0 1,142,777 1,772,741 704,673 2,180 411,818 1,118,671 77,760 26.471 104,231 Account Number CITY OF NATIONAL CITY ESTIMATED FINANCING SOURCES SUMMARY BY FUND AND SOURCE FISCAL YEAR 2012-2013 Account Title 2012 2012 Adjstd Projected 2013 2011 Actuals Budget Actuals Estimates 109 GAS TAXES FUND 3300 INVESTMENT EARNINGS 3410 GAS TAX 2106 3411 GAS TAX 2107 3412 GAS TAX 2107.5 3413 GAS TAX 2105 3414 R&T 7360 FUND TOTAL 111 P.O.S.T. FUND 3461 P.O.S.T. FUND TOTAL 613 5,000 (55) 8,210 201,303 228,603 213,251 210,967 396,990 447,467 442,021 442,373 0 7,500 7,500 7,500 297,712 336,242 311,566 308,244 509,936 706,614 672,501 692,233 1,406,554 1,731,426 1,646,784 1,669,527 24,892 48,100 20,585 48,100 24,892 48,100 20,585 48,100 115 PARK & REC CAPITAL OUTLAY FUND 3314 RENTAL -LAND 0 0 0 0 3470 COUNTY GRANTS 0 0 0 0 FUND TOTAL 0 0 0 0 120 PLAN CHECKING REVOLVING FUND 3500 ANNEXATION 3545 PLAN CHECKING FEE 315,149 278,000 346,827 300,000 FUND TOTAL 315,149 278,000 346,827 300,000 125 SEWER SERVICE FUND 3300 INVESTMENT EARNINGS 90,528 114,146 15,693 129,409 3316 RENTAL -SEWER 410 205 616 205 3563 SEWER SERVICE CHARGE 7,258,495 7,100,000 5,812,332 7,100,000 3564 SEWER TRANSPORTATION CHARGE 0 7,910 0 7,910 3610 SEWER CONNECTION FEES 486 10,000 0 10,000 3636 REFUNDS & REIMBURSEMENTS 9,483 0 6,925 0 3830 LOAN REPAYMENT 0 0 11,250 8,785 FUND TOTAL 7,359,402 7,232,261 5,846,816 7,256,309 130 EMT-D REVOLVING FUND 3034 FRANCHISE -AMR 315,289 296,857 291,036 302,794 3996 PENALTY - AMR 1,500 0 0 0 FUND TOTAL 316,789 296,857 291,036 302,794 131 ASSET FORFEITURE FUND 3300 INVESTMENT EARNINGS 3539 SEIZED ASSETS FUND TOTAL 2,923 4,963 0 4,546 64,753 185,480 58,559 58,559 67,676 190,443 58,559 63,105 159 GENERAL PLAN UPDATE RESERVE 3900 Other Financing Sources 3999 TRANSFERS FROM OTHER FUNDS 666,667 0 0 0 FUND TOTAL 666,667 0 0 0 166 NUTRITION 3470 COUNTY GRANTS 323,005 337,904 270,978 324,180 3514 NUTRITION INCOME - CATERED MEALS 50,089 48,000 32,661 0 3515 NUTRITION - PROGRAM INCOME 100,404 96,000 110,414 103,000 3516 NCNP - NON -MEALS DONATIONS 500 0 0 0 3517 NUTRITION INCOME - DELIVERED MEALS 19,455 19,200 11,635 12,000 3636 REFUNDS & REIMBURSEMENTS 0 0 0 0 3999 TRANSFERS FROM OTHER FUNDS 336,260 269,349 269,349 308,499 FUND TOTAL 829,713 770,453 695,037 747,679 Account Number CITY OF NATIONAL CITY ESTIMATED FINANCING SOURCES SUMMARY BY FUND AND SOURCE FISCAL YEAR 2012-2013 Account Title 2012 2012 Adjstd Projected 2013 2011 Actuals Budget Actuals Estimates 171 LIBRARY SCHOOL DISTRICT CNTRCT 3467 SCHOOL DISTRICT CONTRACT REIMB FUND TOTAL 17,740 17,740 17,740 17,740 17,740 17,740 17,740 17,740 172 TRASH RATE STABILIZATION FUND 3462 SALES TAX REIMBURSEMENT 9,263 0 13,895- 0 3642 RATE STABILIZATION RECEIPTS 141,987 144,500 144,333 144,500 FUND TOTAL 151,250 144,500 144,333 144,500 189 CIVIC CENTER REFURBISHING 3300 INVESTMENT EARNINGS 19,885 17,867 17,867 17,867 FUND TOTAL 19,885 17,867 17,867 17,867 190 30TH STREET CLEANUP FUND - 1303 3300 INVESTMENT EARNINGS 1,699 1,500 23- 2,942 FUND TOTAL 1,699 1,500 0 2,942 191 STOP PROJECT 3550 VEHICLE IMPOUND FEES 68,407 55,000 68,909 55,000 FUND TOTAL 68,407 55,000 68,909 55,000 198 PROPERTY EVIDENCE SEIZURE 3600 Other FUND TOTAL 0 0 0 0 0 0 0 0 200 30TH STREET CLEANUP FUND -1304 3300 INVESTMENT EARNINGS 4,279 2,000 (58) 7,408 FUND TOTAL 4,279 2,000 (58) 7,408 201 NCJPFA DEBT SERVICE FUND 3300 INVESTMENT EARNINGS 9 0 0 0 3456 POLICE FACILITY LEASE 332,504 487,450 487,450 490,225 FUND TOTAL 332,513 487,450 487,450 490,225 208 SUPP.LAW ENFORCEMENT SVCS FUND (SLESF) 3463 OTHER STATE GRANTS 100,000 0 0 0 FUND TOTAL 100,000 0 0 0 211 SECURITY AND ALARM REGULATION FUND 3161 SECURITY ALARM PERMITS 4,450 4,000 5,010 4,000 3202 FALSE ALARM FINES 2,156 2,000 1,650 2,000 FUND TOTAL 6,606 6,000 6,660 6,000 212 PERSONNEL COMPENSATION FUND 3700 INTERNAL SERVICE CHARGES 356,900 356,900 178,452 0 3999 TRANSFERS FROM OTHER FUNDS 1,993,986 0 0 125,000 FUND TOTAL 2,350,886 356,90.0 178,452 125,000 241 NATIONAL CITY LIBRARY STATE GRANT 3300 INVESTMENT EARNINGS 111 169 (2) 0 3463 OTHER STATE GRANTS 0 0 0 0 FUND TOTAL 111 169 (2) 0 Account Number CITY OF NATIONAL CITY ESTIMATED FINANCING SOURCES SUMMARY BY FUND AND SOURCE FISCAL YEAR 2012-2013 Account Title 2012 2012 Adjstd Projected 2013 2011 Actuals Budget Actuals Estimates 246 WINGS GRANT 3463 OTHER STATE GRANTS FUND TOTAL 253 RECREATIONAL ACTIVITIES FUND 3598 MISC RECREATION REVENUE FUND TOTAL 699,239 979,698 1,173,719 979,698 699,239 979,698 1,173,719 979,698 29,118 15,000 14,854 15,000 29,118 15,000 14,854 15,000 259 LIBRARY BONDS DEBT SERVICE FUND 3008 SPECIAL ASSESSMENT -GO BONDS 438,825 399,500 399,667 398,889 FUND TOTAL 438,825 399,500 399,667 398,889 277 NC PUBLIC LIBRARY DONATIONS F_!Nn 3637 DONATIONS 5,239 2,000 3,600 2,000 FUND TOTAL 5,239 2,000 3,600 2,000 290 POLICE DEPT GRANTS 290-11615 BORDER VIOLENCE PROJECT 3498 FEDERAL GRANT -BORDER VIOLENCE PR 132,839 0 92,794 0 290-11619 AVOID DUI GRANT AL0939 3463 OTHER STATE GRANTS -AVOID DUI GRAN 15,618 15,000 9,394 0 290-11622 2010 HOPE GRANT 3498 OTHER FEDERAL GRANTS 0 95,000 0 0 290-11623 2010-2011 JUDGE GRANT 3498 OTHER FEDERAL GRANTS -JUDGE 47,135 48,434 0 47,120 290-11624 2010 OPERATION STONEGARDEN GRANT 3498 OTHER FEDERAL GRANTS-STONEGARDE 87,147 81,444 119,396 0 290-11625 CVPD DUI PROSECUTION GRANT#AL1189 3463 OTHER STATE GRANTS-CVPD DUI PROSE 7,532 0 25,617 0 290-11626 RATT GRANT 3470 COUNTY GRANTS-RATT GRANT 39,481 92,000 0 80,000 290-11627 2011 CHILDREN EXPOSED TO DOMESTIC VIOLEN 3498 OTHER FEDERAL GRANTS-2011 CEDV 22,075 0 198,024 0 290-11630 2012 OTS SOBRIETY CHECKPOINT SC12279 3463 OTHER STATE GRANTS-2012 SC12279 0 36,800 0 36,800 290-11631 2012 - OTS GRANT #20319 3463 OTHER STATE GRANTS - OTS GRANT #20 0 103,429 0 103,429 290-11632 2012 - HIDTA GRANT 0 82,191 82,191 82,191 FUND TOTAL 351,827 554,298 527,416 349,540 Account Number CITY OF NATIONAL CITY ESTIMATED FINANCING SOURCES SUMMARY BY FUND AND SOURCE FISCAL YEAR 2012-2013 Account Title 2012 2012 Adjstd Projected 2013 2011 Actuals Budget Actuals Estimates 296 ENGINEERING DEPT GRANTS 296-06000 General Operating Revenues 3498 OTHER FEDERAL GRANTS-CPPW SAFE R 152 0 6,363 0 296-06512 TDA/TRANSNET BPNSP GRANT 3463 OTHER STATE GRANTS-TDA/TRANSNET 1 37,674 296-21510 RUBBERIZED ASPHALT CONCRETE GRANT-CIWMB 3463 OTHER STATE GRANTS 0 296-22511 US DOE GRANT# DE-SC0002029 3498 OTHER FEDERAL GRANTS -DOE DE-SC00( FUND TOTAL 23,137 60,963 0 0 0 0 0 0 0 146,830 0 0 153,193 0 301 GRANT-C.D.B.G. 3480 REVENUE SHARING 0 0 0 0 3498 OTHER FEDERAL GRANTS 1,644,864 1,463,226 169,232 866,002 FUND TOTAL 1,644,864 1,463,226 169,232 866,002 307 PROPOSITION A" FUND 3300 INVESTMENT EARNINGS 3,447 10,765 0 0 3466 TRANSACTIONS & USE TAX 0 687,000 1,216,500 770,000 FUND TOTAL 3,447 697,765 1,216,500 770,000 312 STP LOCAL/TRANSNET HIGHWAY 3498 OTHER FEDERAL GRANTS FUND TOTAL 323 SAFE ROUTES TO SCHOOL 3463 OTHER STATE GRANTS -SAFE ROUTES T( FUND TOTAL 325 DEVELOPMENT IMPACT FEES 325-11000 Police Revenues 3624 DEV. IMPACT FEES -POLICE 325-12125 Fire Operations Revenues 3623 Dev Impact Fees- Fire/EMS 325-31000 Library Revenues 3622 Dev Impact Fees- Library 179,843 179,843 61,335 61,335 0 0 0 0 0 0 0 0 0 0 0 0 25,025 21,000 67,293 21,000 13,464 8,000 26,603 8,000 14,860 2,000 3,096 2,000 325-42000 Parks Revenues 3621 Dev Impact Fees- Parks and Rec 6,363 205,000 15,444 5,000 FUND TOTAL 59,712 236,000 112,436 36,000 Account Number CITY OF NATIONAL CITY ESTIMATED FINANCING SOURCES SUMMARY BY FUND AND SOURCE FISCAL YEAR 2012-2013 Account Title 2012 2012 Adjstd Projected 2013 2011 Actuals Budget Actuals Estimates 326 TRANSPORTATION IMPACT FEE FUND 326-00000 General Operating Revenues 3162 TDIF REVENUE - SF RESIDENTIAL 39,699 18,000 2,183 4,135 3163 TDIF REVENUE - MF RESIDENTIAL 0 3.000 131.883 3.000 3300 00000-3300 INVESTMENT EARNINGS 3,269 0 0 0 FUND TOTAL 42,968 21,000 134,066 7,135 343 STATE -LOCAL PARTNERSHIP 343-00000 General Operating Revenues 3300 INVESTMENT EARNINGS 700 500 0 1,211 FUND TOTAL 700 500 0 1,211 345 TRAFFIC CONGESTION RELIEF 345-00000 General Operating Revenues 3999 TRANSFER FROM OTHER FUNDS 0 0 0 61,537 FUND TOTAL 0 0 0 61,537 346 PROP 1B FUND 346-00000 General Operating Revenues 3300 INVESTMENT EARNINGS 640 3463 OTHER STATE GRANTS 86,677 FUND TOTAL 87,317 348 STATE GRANT 0 0 0 1,223 0 0 0 1,223 348-00000 General Operating Revenues 3300 INVESTMENT EARNINGS 2,055 0 0 4,960 3463 OTHER STATE GRANTS 0 0 0 0 3999 TRANSFERS FROM OTHER FUNDS 0 0 0 0 FUND TOTAL 2,055 0 0 4,960 502 SECTION 8 FUND 502-45462 SECTION 8 REVENUE 3600 OTHER REVENUE - PORTABILITY 80% 1,148 0 1,274 0 3614 HUD REVENUE -HOUSING ASSISTANCE PI 8,583,579 8,280,000 7,896,918 8,520,000 3615 HUD REVENUE-AMINISTRATIVE FEES 998,728 900,000 869,391 900,000 3616 FRAUD RECOVERY -HAP 8,357 8,000 34,977 8,000 3617 FRAUD RECOVERY --ADMINISTRATIVE FEI 8,357 8,000 34,977 8,000 3618 OTHER REVENUE -PORTABILITY ADMIN 17,867 0 15,574 0 3619 OTHER REVENUE-FSS FORFEITURE 0 0 0 0 3634 MISC. REVENUE 0 0 600 0 3999 TRANSFERS FROM OTHER FUNDS 0 0 0 0 FUND TOTAL 9,618,036 9,196,000 8,853,711 9,436,000 Account Number CITY OF NATIONAL CITY ESTIMATED FINANCING SOURCES SUMMARY BY FUND AND SOURCE FISCAL YEAR 2012-2013 Account Title 2012 2012 Adjstd Projected 2013 2011 Actuals Budget Actuals Estimates 505 HOME FUND 505-00000 General Operating Revenues 3300 INVESTMENT EARNINGS 3321 HILP PAYMTS. INTEREST 3498 OTHER FEDERAL GRANTS FUND TOTAL 506 HOME LOAN PROGRAM FUND 13,795 0 1,515 0 33,497 35,983 0 0 1,155,914 588,081 657,417 295,176 1,203,206 624,064 658,932 295,176 506-00000 General Operating Revenues 3300 INVESTMENT EARNINGS 7,013 2,500 209 0 3321 HILP PAYMTS. INTEREST 3,208 4,700 1,215 0 3589 RETURNED CHECK CHARGES 0 0 0 0 3634 MISC. REVENUE 202,583 0 0 7,400 3636 REFUNDS & REIMBURSEMENTS 0 0 0 0 FUND TOTAL 212,804 7,200 1,424 7,400 522 LOW/MODERATE HOUSING FUND 522-00000 General Operating Revenues 3011 TAX INCREMENT REVENUE 2,767,741 2,909,034 1,728,812 0 3300 INVESTMENT EARNINGS 53,998 2,091 6,713 0 3321 FTHB PAYMTS. INTEREST 87,419 55,532 0 0 3634 MISCELLANEOUS REVENUE 2,409 0 0 0 3636 REFUNDS & REIMBURSEMENTS 30,565 0 0 0 3999 TRANSFERS FROM OTHER FUNDS 0 0 0 0 FUND TOTAL 2,942,132 2,966,657 1,735,525 0 524 2011 TAB FUND - CAPITAL IMPROVEMENT 524-00000 General Operating Revenues 3300 INVESTMENT EARNINGS 7,168 0 21,216 0 3900 00000-3900 Other Financing Sources 3991 00000-3991 BOND PROCEEDS 39,660,000 0 FUND TOTAL 39,660,000 0 525 2011 TAB FUND - HOUSING 0 0 0 0 525-00000 General Operating Revenues 3300 INVESTMENT EARNINGS 0 0 0 0 FUND TOTAL 0 0 0 0 Account Number CITY OF NATIONAL CITY ESTIMATED FINANCING SOURCES SUMMARY BY FUND AND SOURCE FISCAL YEAR 2012-2013 Account Title 2012 2012 Adjstd Projected 2013 2011 Actuals Budget Actuals Estimates 626 FACILITIES MAINT FUND 626-00000 General Operating Revenues 3300 INVESTMENT EARNINGS 3634 MISC. REVENUE 3636 REFUNDS & REIMBURSEMENTS 3700 INTERNAL SERVICE CHARGES 221 0 0 0 137 0 263 0 0 0 0 0 1,853,015 2,730,168 1,365,084 2,519,173 3999 TRANSFERS FROM OTHER FUNDS 4,210 0 0 0 FUND TOTAL 1,857,583 2,730,168 1,365,347 2,519,173 627 LIABILITY INS. FUND 627-00000 General Operating Revenues 3636 REFUNDS & REIMBURSEMENTS 114,871 0 23,823 0 3700 INTERNAL SERVICE CHARGES 1,485,228 1,459,579 758,292 1,383,992 14000-3700 INTERNAL SERVICE CHARGES 1,451,841 1,408,287 1,394,765 1,443,612 FUND TOTAL 3,051,940 2,867,866 2,176,880 2,827,604 628 GENERAL SERVICES FUND 628-00000 General Operating Revenues 3700 INTERNAL SERVICE CHARGES 254,972 0 0 0 FUND TOTAL 254,972 0 0 0 629 INFORMATION SYSTEMS MAINTENANCE 629-00000 General Operating Revenues 3455 CDC CONTRIBUTION 0 0 0 0 3700 INTERNAL SERVICE CHARGES 1,209,750 1,463,951 741,726 2,037,291 FUND TOTAL 1,209,750 1,463,951 741,726 2,037,291 632 GENERAL ACCOUNTING SERVICES 632-00000 General Operating Revenues 3636 REFUNDS & REIMBURSEMENTS 0 0 0 0 3700 INTERNAL SERVICE CHARGES 889,875 1,144,847 547,860 1,297,553 FUND TOTAL 889,875 1,144,847 547,860 1,297,553 643 MOTOR VEHICLE SVC FUND 643-00000 General Operating Revenues 3636 REFUNDS & REIMBURSEMENTS 0 0 0 0 3700 INTERNAL SERVICE CHARGES 1,853,015 1,350,030 684,603 1,171,187 3999 TRANSFERS FROM OTHER FUNDS 0 0 0 0 FUND TOTAL 1,853,015 1,350,030 684,603 1,171,187 644 EQUIPMENT REPLACEMENT RESERVE 644-00000 General Operating Revenues 3999 TRANSFER FROM OTHER FUNDS 0 0 0 575,342 FUND TOTAL 0 0 0 575,342 Account Number CITY OF NATIONAL CITY ESTIMATED FINANCING SOURCES SUMMARY BY FUND AND SOURCE FISCAL YEAR 2012-2013 Account Title 2012 2012 Adjstd Projected 2013 2011 Actuals Budget Actuals Estimates 731 CONSTRUCTION AND DEMOLITION DEBRIS 731-00000 General Operating Revenues 06028-3552 CONST. & DEMOLITION ADMIN FEE 10,738 0 6,008 5,000 06028-3815 CONST. & DEMOLITION FORFEITED DEPC 10,065 0 69,369 45,000 FUND TOTAL 20,803 0 75,377 50,000 GRAND TOTAL 121,734,739 77,169,681 72,040,254 77,430,100 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: June 19, 2012 AGENDA ITEM NO. 26 iM TITLE: League of California Cities Annual Conference — Designation of Voting Delegate and Alternate(s) PREPARED BY: Leslie Deese, Asst. City Manager DEPARTMENT: City Manager PHONE: 619-336-4240 APPROVED EXPLANATION: See attached Staff Report FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: APPROVED: Finance MIS If approved by Council, the travel costs and registration fees associated with this meeting would be charged to the appointed City Council members' training funds included in the 2012-13 preliminary budget. ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Staff respectfully requests Council's designation of a voting delegate and up to two alternates to represent the City of National City during the 2012 League of California Cities Annual Conference. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: r".aff Report ;ague of California Cities' information dated May 3, 2012 Title: League of California Cities Annual Conference — Designation of Voting Delegate and Alternate(s) The League of California Cities 2012 Annual Conference is scheduled for September 5-7 in San Diego. An important part of the Annual Conference is the Annual Business Meeting scheduled for noon on Friday, September 7 at the San Diego Convention Center. At this meeting, the League membership considers and takes action on resolutions that establish League policy. In order for cities to cast a vote during the Business Meeting, each city's respective Council must designate a voting delegate. In the instance that the selected voting delegate is unable to serve in that capacity, the League of California Cities' bylaws afford each city the opportunity to appoint up to two alternate voting delegates. According to the League's bylaws, the selection of the voting delegate and alternates must be performed through the official action of the City Council. Furthermore, the voting delegate and alternates must be registered to attend the conference. Eligible individuals who may be selected as the City's voting delegate include the Mayor, each City Council member, as well as any other City official selected by the City Council to serve in this capacity. At this time, Staff respectfully requests the City Council consider appointing a voting delegate and one or two alternate voting delegates to vote on the City's behalf at the Annual Business Meeting of the League of California Cities on September 7, 2012. Staff Recommendation: Staff respectfully requests Council's designation of a voting delegate and up to two alternates to represent the City of National City during the 2012 League of California Cities Annual Conference. Fiscal Impact: The travel costs and registration fees associated with this meeting will be charged to the appointed City Council members training funds included in the 2012-13 preliminary budget. RECEIVED MAY 0 72012 1400 K STREET SACRAMENTO, CA 95814 EH_ (916) 658-8200 PR: (916)658-8240 OFCA(FOKNI CITIES W'X'W.CAC ITIES.ORG May 3, 2012 Council Action Advised by August 3, 2012 TO: Mayors, City Managers and City Clerks RE: DESIGNATION OF VOTING DELEGATES AND ALTERNATES League of California Cities Annual Conference — September 5 - 7, San Diego The League's 2012 Annual Conference is scheduled for September 5 - 7 in San Diego. An important part of the Annual Conference is the Annual Business Meeting (at the General Assembly), scheduled for noon on Friday, September 7, at the San Diego Convention Center. At this meeting, the League membership considers and takes action on resolutions that establish League policy. In order to vote at the Annual Business Meeting, your city council must designate a voting delegate. Your city may also appoint up to two alternate voting delegates, one of whom may vote in the event that the designated voting delegate is unable to serve in that capacity. Please complete the attached Voting Delegate form and return it to the League's office no later than Wednesday, August 15, 2012. This will allow us time to establish voting delegate/alternates' records prior to the conference. Please note the following procedures that are intended to ensure the integrity of the voting process at the Annual Business Meeting. • Action by Council Required. Consistent with League bylaws, a city's voting delegate and up to two alternates must be designated by the city council. When completing the attached Voting Delegate form, please attach either a copy of the council resolution that reflects the council action taken, or have your city clerk or mayor sign the form affirming that the names provided are those selected by the city council. Please note that designating the voting delegate and alternates must be done by city council action and cannot be accomplished by individual action of the mayor or city manager alone. • Conference Registration Required. The voting delegate and alternates must be registered to attend the conference. They need not register for the entire conference; they may register for Friday only. To register for the conference, please go to our website: www.cacities.org. In order to cast a vote, at least one person must be present at the Business Meeting and in possession of the voting delegate card. Voting delegates and alternates need to pick up their conference badges before signing in and picking up -over- ' ccw the voting delegate card at the Voting Delegate Desk. This will enable them to receive the special sticker on their name badges that will admit them into the voting area during the Business Meeting. • Transferring Voting Card to Non -Designated Individuals Not Allowed. The voting delegate card may be transferred freely between the voting delegate and alternates, but only between the voting delegate and alternates. If the voting delegate and alternates find themselves unable to attend the Business Meeting, they may not transfer the voting card to another city official. • Seating Protocol during General Assembly. At the Business Meeting, individuals with the voting card will sit in a separate area. Admission to this area will be limited to those individuals with a special sticker on their name badge identifying them as'a-voting delegate or alternate. If the voting delegate and alternates wish to sit together, they must sign in at the Voting Delegate Desk and obtain the special sticker on their badges. The Voting Delegate Desk, located in the conference registration area of the San Diego Convention Center, will be open at the following times: Wednesday, September 5, 9:00 a.m. — 6:30 p.m.; Thursday, September 6, 7:00 a.m. — 4:00 p.m.; and September 7, 7:30-10:00 a.m. The Voting Delegate Desk will also be open at the Business Meeting on Friday, but not during a roll call vote, should one be undertaken. The voting procedures that will be used at the conference are attached to this memo. Please share these procedures and this memo with your council and especially with the individuals that your council designates as your city's voting delegate and alternates. Once again, thank you for completing the voting delegate and alternate form and returning it to the League office by Wednesday, August 15. If you have questions, please call Mary McCullough at (916) 658-8247. Attachments: • 2012 Annual Conference Voting Procedures • Voting Delegate/Alternate Form LEAGUE OF CALIFORNIA CITIES 1400 K Street, Suite 400 • Sacramento. California 95814 Phone: 916.658.8200 Fax: 916.658.8240 www.cacities.org Annual Conference Voting Procedures 2012 Annual Conference 1. One City One Vote. Each member city has a right to cast one vote on matters pertaining to League policy. 7. Designating a City Voting Representative. Prior to the Annual Conference, each city council may designate a voting delegate and up to two alternates; these individuals are identified on the Voting Delegate Form provided to the League Credentials Committee. 3. Registering with the Credentials Committee. The voting delegate, or alternates, may pick up the city's voting card at the Voting Delegate Desk in the conference registration area. Voting delegates and alternates must sign in at the Voting Delegate Desk. Here they will receive a special sticker on their name badge and thus be admitted to the voting area at the Business Meeting. 4. Signing Initiated Resolution Petitions. Only those individuals who are voting delegates (or altemates), and who have picked up their city's voting card by providing a signature to the Credentials Committee at the Voting Delegate Desk, may sign petitions to initiate a resolution. 5. Voting. To cast the city's vote, a city official must have in his or her possession the city's voting card and be registered with the Credentials Committee. The voting card may be transferred freely between the voting delegate and alternates, but may not be transferred to another city official who is neither a voting delegate or altemate. Voting Area at Business Meeting. At the Business Meeting, individuals with a voting card will sit in a designated area. Admission will be limited to those individuals with a special sticker on their name badge identifying them as a voting delegate or alternate. Resolving Disputes. In case of dispute, the Credentials Committee will determine the validity of signatures on petitioned resolutions and the right of a city official to vote at the Business Meeting. LEAGUE OF CALIFORNIA CITIES CITY: 2012 ANNUAL CONFERENCE VOTING DELEGATE/ALTERNATE FORM Please complete this form and return it to the League office by Wednesday, August 15, 2012. Forms not sent by this deadline may be submitted to the Voting Delegate Desk located in the Annual Conference Registration Area. Your city council may designate one voting delegate and up to two alternates. In order to vote at the Annual Business Meeting (General Assembly), voting delegates and alternates must be designated by your city council. Please attach the council resolution as proof of designation. As an alternative, the Mayor or City Clerk may sign this form, affirming that the designation reflects the action taken by the council. Please note: Voting delegates and alternates will be seated in a separate area at the Annual Business Meeting. Admission to this designated area will be limited to individuals (voting delegates and alternates) who are identified with a special sticker on their conference badge. This sticker can he obtained only at the Voting Delegate Desk. 1. VOTING DELEGATE Name: Title: 2. VOTING DELEGATE - ALTERNATE 3. VOTING DELEGATE - ALTERNATE Name: Name: Title: Title: PLEASE ATTACH COUNCIL RESOLUTION DESIGNATING VOTING DELEGATE AND ALTERNATES. OR ATTEST: I affirm that the information provided reflects action by the city council to designate the voting delegate and alternate(s). Name: E-mail Mayor or City Clerk Phone: (circle one) (signature) Date: Please complete and return by Wednesday, August 15th, to: League of California Cities ATTN: Mary McCullough 1400 K Street Sacramento, CA 95814 FAX: (916) 658-8240 E-mail: mmccullough@cacities.org (916) 658-8247 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: June 19, 2012 AGENDA ITEM NO. 27 :M TITLE: Report on Pawn Brokers, Second-hand dealers, and Gold Buying businesses and the impending expiration of the moratorium PREPARED BY: PHONE: EXPLANATION: Please see attached report. Claudia Gacitua Silva Ext. 4222 DEPARTMENT: APPROVED BY: FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: sort Staff Report On September 6, 2011, the City adopted a moratorium prohibiting new pawnbroker, secondhand and precious metal dealing establishments. That moratorium is set to expire July 21, 2012. Background As set forth in prior reports to Council, there has been a 200% increase in pawn shops in the City since the 1980's. At the time of the prior reports to Council, there were nine (9) businesses of this type licensed to operate within the City. Of the nine pawn, gold buying and secondhand businesses licensed to do business in National City, seven (7) received their Conditional Use Permits (CUP) between 2008 and 2011. (See Exhibit A, staff report from May 3, 2011 meeting). Since that time, the City has adopted an updated Land Use Code. National City Municipal Code section 18.30.320 addresses pawn shops, gold buying and secondhand dealing businesses. The provision adopted February 7, 2012 requires a CUP, and imposes distance requirements. Specifically, that section states: 18.30.320 - Pawn shops and businesses engaged in secondhand dealing and/or the purchase and selling of gold and other precious metals. A. Restrictions. 1. No pawn shops and businesses engaged in secondhand dealing and/or the purchase and selling of gold and other precious metals shall be located within 2,000 feet of another such business. 2. Pawn shops and businesses engaged in secondhand dealing and/or the purchase and selling of gold and other precious metals shall be no closer than two hundred fifty feet from residential zones. 3. No pawn shop or businesses engaged in secondhand dealing and/or the purchase and selling of gold and other precious metals shall be located east of Interstate 805. 4. A conditional use permit is required. 5. A pawn shop or businesses engaged in secondhand dealing and/or the purchase and selling of gold and other precious metals which provides payday lending is not exempt from the regulations of payday lenders. (Ord. No. 2012-2372, Exh. B-1, 2-7-2012) Current The City currently has six (6) pawn shops licensed to do business in the City. 1 Name Address Type CUP Notes We Lend More 133 E 8th St Pawn N Lawful non -conforming Express Financial Svcs 1050 Highland Ave Pawn Y CUP for pawn shop Simon & Simon 139 E 8th St Pawn N Lawful non -conforming Monte de Piedad 604 Highland Ave Pawn Y CUP for pawn shop Monte de Piedad 2720 Plaza Blvd Pawn Y Robertos Jewelry & Pawn 560 Highland Ave Pawn Y Two of the businesses above have specific gold buying approvals in their CUP approval. Monte de Piedad at 604 Highland Avenue may be buying gold as an accessory use to their pawn business (per a previous staff determination that gold buying was an allowed accessory use to a pawn shop). In addition, two CUP's for gold buying were issued prior to the moratorium and Code change: The Check Cashing Place 1539 Plaza Blvd Check Cashing Y Formerly Uncle Bucr.� Cash for Gold/Gold Rush Plaza Bonita Gold buying Y Since the moratorium has been in place, Planning has had three inquiries from business wanting to buy gold. They were all told of the moratorium. One (Leo Hamel) is expected to apply for a CUP as soon as possible so that they may engage in gold buying as soon as the moratorium has expired. These businesses are: Robertos Jewelry Inc 303 Highland Ave Jeweler N Informed of moratorium - no a D&A Jewelers 1021 Highland Ave Jeweler N Informed of moratorium - noat Leo Hamel Jewelry Buyers 1536 Sweetwater Rd Jeweler N Informed of moratorium - no a The Police Department (PD) reports that the problems they face are not with the legitimate pawn dealers, as they have rigorous compliance provisions; these pawn dealers help the police solve crime. The PD reports that the problem lies with second- hand and gold buying retailers who have no governance. PD suggests that imposition of the same restrictions imposed on secondhand dealers and gold buyers that are currently imposed on pawn dealers would assist in addressing their concerns. The current Land Use Code provisions do require CUP's in order to operate these types of businesses, thus does assist in addressing PD's concern. As currently written, the Code states that these types of businesses cannot operate without a CUP, thus one - day shows and the like are not allowed in the City. What is not known is the number of businesses engaging in secondhand dealing or gold buying as an accessory use to their primary business. Options The City Council can allow the moratorium to expire and new businesses would be subject to the CUP process. The CUP process would entail a public hearing at the Planning Commission and would also be before the City Council as a Notice of Decision (and hearing if the Council so chose). The City Council can ask for further Code revisions to the current provisions of Section 18.30.320. Such revisions would be brought back at a subsequent Council meeting. The City Council, to protect the public health, safety and welfare, can extend the moratorium for another year if any of these may be in conflict with contemplated zoning proposals being considered, studied, or intended to be studied by the Council, Planning Commission, or Planning Department staff, and after a noticed and a public hearing. Conclusion Staff brings forward this report to update Council on the impending expiration and seeks direction on whether the Council desires further land use regulation on all or some of these uses. 3 CITY,''c NATIONAL CITY, CALIFORr"A COUNCIL AGENDA STATEMEN1 MEETING DATE: September 6, 2011 AGENDA ITEM NO. ITEM TITLE: Public Hearing to consider adoption of an Interim Ordinance of the City Council of the City of National City adopted pursuant to Government Code Section 65858 as an Urgency Measure to take effect immediately, enacting a Moratorium prohibiting new pawnbroker, secondhand and precious metal dealing and establishments in National City PREPARED BY: George H. Eiser, III PHONE: 4221 EXPLANATION: Please see attached staff report. APPROVED BY: DEPARTMENT: City Attorney lit FINANCIAL STATEMENT: APPROVED: Finance ACCOUNT NO. APPROVED: MIS N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Hold public hearing. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: 1 — Staff Report 2 — Report on Pawnshops (Agenda Item No. 21, dated May 3, 2011) 3 — Memorandum from Department of Development Services 4 — Proposed ordinance _4 STAFF REPORT The City has recently adopted a new General Plan, a component of which allows for land usage that includes pawnbrokers, secondhand and precious metal dealers and establishments within the City. Since the original pawnshop establishments were approved in the 1980's, the City has seen a 200% increase in such establishments. Various existing businesses have also expanded to include dealings in secondhand goods in recent years. Moreover, due to the increasing value of gold, the market has encountered a proliferation of gold buying establishments. Recently, unlicensed and unpermitted gold and other secondhand dealer establishments and vendors have erupted in record numbers. The National City Police Department has been concerned with the increase in crime related to the existence of such establishments, which includes the sale and purchase of stolen goods, and the added burden of being tasked with tracking the reporting requirements for such establishments pursuant to the regulations of the California Department of Justice, particularly in light of the decrease in law enforcement resources. Existing land use controls may not adequately address the potential adverse effects of newly proposed pawnbrokers, secondhand and precious metal establishments in the community. There is a potential threat to the public health, safety and welfare were the City to permit new establishments without adequate land use controls. At the regular City Council meeting of August 2, 2011, the City Council enacted, as an urgency ordinance to take effect immediately, Ordinance No. 2011- 2364, imposing for a period of 45 days a moratorium on the locating of, development, or approval of new pawnshops, secondhand dealers, and precious metal dealing and establishments in the City. The moratorium imposed by Ordinance No. 2011- 2364 will expire on September 16, 2011 unless extended by action of the City Council. The Government Code provides that after a public hearing, the 45 day moratorium may be extended by 10 months and 15 days. This public hearing will satisfy the requirements of the Government Code. During this 10 months and 15 - days, staff will study and consider the current environment and the effects of existing and new pawnbrokers, secondhand and precious metal establishments, such as gathering information as to the status of such establishments and their effect upon other communities. The Government Code requires that prior to expiration of the interim ordinance, the City Council shall issue a written report describing the measures taken to alleviate the conditions which led to the adoption of the ordinance. An item pertaining to a report that satisfies this requirement preceded this item on this agenda. The urgency ordinance to extend the moratorium by 10 months and 15 days is a companion item on this agenda. CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: May 3, 2011. AGENDA ITEM NO.21 iM TITLE: Report on pawnshops and businesses engaged in secondhand dealing and/or the purchase and selling of gold and other precious metals. (Continued from Council Meeting of April 5, 2011) PREPARED BY: Leslie Deese, Asst. City Manager. DEPARTMENT: City Manager PHONE: 619-336-4240c�,.-u T- - APPROVED BY: EXPLANATION: See Attached FINANCIAL STATEMENT: NIA ACCOUNT NO. ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: Finance APPROVED: MIS STAFF RECOMMENDATION: Given the increasing number of gold buying businesses coming into the City, and the current lack of enforcement and zoning regulations, staff recommends the City Council direct that language be included in the draft Land Use Code to include gold buying and secondhand businesses. BOARD/COMMISSION RECOMMENDATION: N/A ATTACHMENTS: iff Report ....achment #1 {Council Agenda Statement from April 5, 2011) i Attachment #2 (Memo from Legal Counsel) CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT lIEETING DATE: May 3, 2011 AGENDA ITEM NO.21. iM TITLE: Report on pawnshops and businesses engaged in secondhand dealing and/or the purchase and selling of gold and other precious metals. (Continued from Council Meeting of April 5, 2011) PREPARED BY: Leslie Deese, Asst. City Manager DEPARTMENT: City Manager PRONE: 619-336-4240APPROVED BY: EXPLANATION: See Attached FINANCIAL STATEMENT: NIA ACCOUNT NO. ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Given the increasing number of gold buying businesses corning into the City, and the current lack of enforcement and zoning regulations, staff recommends the City Council direct that language be included in the draft Land Use Code to include gold buying and secondhand businesses. BOARD f COMMISSION RECOMMENDATION: N/A ATTACHMENTS: iff Report .....achment #1 (Council Agenda Statement from April 5, 2011) Attachment #2 (Memo from Legal Counsel) Staff Report On April 5, 2011, the City Council discussed a report on pawnshops and businesses engaged in secondhand dealing and/or the purchase and selling of gold and other precious metals. This report (Attachment 1) was in response to a request by Councilmember Natividad who is concerned about an increasing number of new pawn and gold buying businesses operating in the City as well as gold buying businesses that appear to be operating out of vehicles and without the proper licenses. The National City Police Department ("NCPD") also expressed concerns related to criminal activity, sale of stolen items, and secondhand dealer reporting requirements as required by the Califomia Department of Justice ("DOJ"). The City Council requested staff to bring back additional information to consider options to strengthen existing code and zoning regulations pertaining to the number of pawn, secondhand and gold buying businesses operating in the City. Licensed Businesses in National City There are currently nine (9) pawn, gold buying, and secondhand businesses licensed to operate in National City. Please note that "Quality for Less" appears to no longer be in business. NO CUP We Lend More, Inc. (Pawnshop) m 133 E. 8 Street Predates CUP requirement 1985-2 CUP Simon & Simon Jewelry & Loan (Pawnshop) 139 E. 8th Street Denied by Planning Commission on 4/1/85. Approved by City Council on 5/14/85 2008-08 CUP Express Financial Services (Pawnshop) 1050 Highland Avenue Approved by Planning Commissbn on 5/19/08. Approved by City Council at Public Hearing on 7/1/08 2009-05 CUP Monte de Piedad (Pawnshop) 604 Highland Avenue Approved by Planning Commission on 5l18/09. City Council filed on 6/2/09 2009-16- CUP Cash for Gold (Gold Buying) 3030 PlazaBonitaCommission Road #2075 Approved by Planning on 9121/09. City Council filed on 10/6/09 2009-17 CUP Quality 4 Less (Secondhand Store) NO LONGER IN BUSINESS (Active business license but not renewed yet this year (due date 02/28/11) 3126 E. Plaza Blvd. Approved by Planning Commission on 9/2 filed1/09City Council led on 10/6/09 2010 16 CUP Gold Buying at Uncle Buck's Check Cashing (Gold Buying) 1539 Plaza Blvd. Approved by Planning Commission on 7/19/10. City Council filed on 8/3/10 2010 20 CUP Business Not Yet Operating or Named (Pawnshop with Gold Buying) 560 Highland Ave Approved by Planning Commission on 7/19/10. City Council filed on 8/3/10 2011-05 CUP Monte de Piedad (Pawnshop with Gold ( P Buying) 2720 E. Plaza Blvd Approved by Planning Commission on 3/21/11. City Council filed on 4/19/11 Since the original two pawnshop businesses were approved in the 1980's, National City has seen a 200% increase in pawn, gold buying and secondhand businesses. These uses are in part a function of the current economy and free market. The market will support a certain number of outlets depending on the population in need of the service. The changing economy has forced businesses to expand their range of services in order to be more profitable, which may account for the increasing number of businesses offering multiple services, including gold buying. In order for a business to offer an additional service, that particular use must be allowed in the underlying zone, which mayor may not require issuance of a Conditional Use Permit ("CUP"). Other than those businesses that go through the proper licensing requirements, it is difficult to know the actual number of unlicensed gold buying businesses and dealers operating in the City without staff conducting a field survey, since many of the businesses and dealers operate out of cars or hold shows in hotel rooms. One of the principal methods that a City may utilize to regulate pawnbrokers and secondhand and precious metal dealers Is through land use controls. Examples of land use controls that may be utilized include the placement of numerical limits on businesses of the same type, imposition of distance requirements between businesses of the same type, and enactment of CUP requirements. The attached memorandum from legal counsel (Attachment 2) provides additional detail on a city's authority to regulate pawnbrokers and secondhand and precious metal dealers. National City does not have a moratorium on the number of pawn businesses allowed to operate in our jurisdiction. As part of its authority to regulate land use, the City may impose a moratorium on a specified land use, prohibiting the establishment of any new land use of the type specified while the moratorium is in effect. An ordinance adopted as an urgency ordinance requires that it be necessary for the immediate preservation of the public health, safety and welfare within the meaning of the Govemment Code to take effect immediately. Over the years, National City has enacted several moratorium ordinances, including a moratorium on payday lenders, a business, like pawnshops and other secondhand dealers, that is already regulated by State law. It is the opinion of legal counsel that pawnbrokers and secondhand and other precious metal dealers could likewise be the subject of a moratorium ordinance. The attached memorandum from legal counsel (Attachment 2) provides additional detail on the enactment of interim (moratorium) ordinances. It is unconstitutional to regulate a business through identifying words that describe the type of business it is, e.g., business name would contain pawnshop or gold buying to identify the type of business. The United States Supreme Court has ruled that a city can only regulate time, place or manner. (Metromedia v. City of San Diego (1982) 453 U.S. 490.) State and Local Regulations Both pawn brokers and gold and precious metal buying are regulated by the State, generally through the California Business and Professions Code. Precious metal buying businesses and pawnshops must register with the State DOJ as a secondhand dealer. State law does not allow cities to adopt identification, holding, or reporting requirements if they are already set forth by the California Business and Professions Code. Pawnshops must also obtain a pawnbroker's license from the State DOJ, which is received after the NCPD reviews the application. Pawnshops are highly regulated and are required to do the following: 1. Must document every transaction; 2. Must report all purchases to NCPD on a daily basis; 3. Must hold purchased items for a minimum of 30 days; 4. Must review and validate identification of the person conducting the pawn transaction; 5. Must send NCPD a copy of.the transaction slip, generally with an original thumbprint; 6. Must electronically add the information to a database which forwards the information to the State. NCPD utilizes the Leads Online database to electronically track the information entered by the pawnshops. On a weekly basis, Leads Online electronically notifies the NCPD. Investigations Division whether any of the registered pawnshops are behind in submitting electronic copies of the transactions: • Simon & Simon Jewelry & Loan • Express Financial Services • Monte de Piedad • Cash for Gold Uncle Bucks does not have the volume they deem necessary to cover the cost of the database so they only enter pawn transactions manually at this time; however, they intend to join the electronic database in the future. Quarterly, the NCPD Investigations Division submits the summary to the Records Division to ensure there is not a trend in late submittals. Since implementing the audit review system in the third quarter of 2010, there have been no instances of the hard copy submittals laggingbehind the electronic submittals. The late electronic submittals exist when data entry lags behind the actual physical submittal of the transaction slips to NCPD. Since 2010, the pawnshops listed above have been in total compliance. Annually, the State sends NCPD a list of currently licensed pawn dealers and those coming up for renewal tocheck for compliance. NCPD investigators visit those retailers who have not renewed their pawn license to ensure they are not operating as a pawn dealer. While conducting these reviews over the last four years, NCPD has found only one secondhand dealer (no pawnshops) who was out of compliance and ensured they renewed both their State and City licenses. In the course of investigating burglaries and fraud cases, NCPD investigators regularly visit pawn shops locatedin the City. Leads Online has substantially increased NCPD's visits to pawnshops due to easy access with a usable system. Investigators use the database on a weekly basis to follow-up on leads and enter suspected and stolen items into the Leads Online database which contains a national (and some businesses located in Mexico) detailed comprehensive database of pawnshops. Before Leads Online, NCPD relied on ARJIS, a countywide criminal justice enterprise network which has limited details and doesn't include the entire pawn transaction information. In addition to running a particular name or a particular item, NGPD receives alerts on the following situations: • Every time a particular person of interest pawns an item anywhere in the United States; • Every time an item matching an item stolen in National City and submitted to ARJIS is pawned anywhere in the United States; • Every time a particular style of item of interest is pawned (for example a Cannon ES 50D digital Camera); • Individuals from National City, who may or may not be on any law enforcement watch list, but pawn an inordinate amount: of items. One exampleinvolved an individual who was not on a watch list but pawned 78 wedding rings over a matter of weeks. NCPD also meets semi-annually with the San Diego Regional Pawn Association. Simon and Simon, Monte de Piedad and Express Pawn personnel are always involved and attend the meetings. NCPD and Code Enforcement are not aware of any current code or other violations with any of the pawn and/or gold buying businesses licensed in National City. Conditions for Approval Gold buying businesses and pawnshops are not locally regulated by City ordinance, other than being required to obtain a business license. In fact, cities and counties are preluded from adopting ordinances regulating the holding, reporting or identificationrequirements for transactions involving coins, monetized bullion, or commercial grade ingots of gold, silver, or other precious metals. (Bus. & Prof §21637(a)) The State preempts the regulation in this area. The concern has been that gold buyers have been discovered at times to work out of cars or shows in hotel rooms and will melt items immediately and pay the person cash on the spot. Melting the gold andmetals make it more difficult for law enforcement to track stolen property. These buyers differ from legitimate businesses such as. the Cash for Gold business located in Westfield Plaza Bonita. Enforcement for these non -legitimate "businesses" may be achieved through stricter zoning regulations and additional police monitoring. To assist the City with outreach to the business community, the National City Chamber of Commerce has offered to coordinate an informational orientation for pawnshops and businesses engaged in secondhand dealing. and/or the purchase and selling of gold and precious metals. National City relies primarily on State regulations to enforce and regulate pawnshops, secondhand, and gold and precious metals buying businesses. Conditional Use Permits / Conditions of Approval can be an appropriate method for strengthening the reporting of secondhand property sales, installation and maintenance of security cameras, retention of video tapes for at least 60 days, and photographing of sellers, and other such regulations. Additionally, at the recommendation of the Chief of Police, the Planning Commission may consider revocation of the CUP if the operator is found to be in violation of any State or local law. There are currently no regulatory or zoning requirements for pawnshops in National City. However, Chapter 3, Section 18.30.320 of the draft National City Land Use Code contains language that strengthens the City's ability to regulate pawnshops: 1. No pawnshops shall be located within 2,000 feet of another such business. 2. Pawnshops shall be no closer than 250 feet from residential zones. 3. No pawnshop shall be located east of Interstate 805. 4. A conditional use permit is required. 5. A pawnshop which provides payday lending is not exempt from the regulations of payday lenders. Should the City Council approve the Land Use Code in its final form, approval conditions and distance requirements for pawnshops will be strengthened. However, it is important to note that the draft Land Use Code in its current form. does not address or regulate secondhand or gold buying businesses. Without such regulations, the secondhand dealers and gold buyers (with the exception of "Cash for Gotd" at Plaza Bonita who voluntarily meets pawn standards) will remain, for the most part, unregulated. Staff Recommendation Given the increasing number of gold buying businesses coming into the City, and the current lack of enforcement and zoning regulations, staff recommends the City Council direct that language be included in the draft Land Use Code to include gold buying and secondhand businesses. DATE: September 1, 2011 TO: George Eiser, Legal Counsel FROM: Maryam Babaki, Development Services Director SUBJECT: Clarification on City Council moratorium We are looking for some clarification on the issue of whether or not a thrift store is considered a second hand store, with regard to the moratorium on pawn/gold buying and secondhand stores. We are having a few inquiries in Planning related to this issue, particularly after recently having approved the thrift store at 241 National City Blvd (they submitted prior to the moratorium). Initially, there seems to be a question as to whether or not a thrift store operator would need to obtain a secondhand dealers license. According to the Business & Professions Code, a "secondhand dealer," means and includes any person, co -partnership, firm, or corporation whose business includes buying, selling, trading, taking in pawn, accepting for sale on consignment, accepting for auctioning, or auctioning secondhand tangible personal property. "Tangible personal property" includes, but is not limited to, all secondhand tangible personal property which bears a serial number or personalized initials or inscription or which, at the time it is acquired by the secondhand dealer, bears evidence of having had a serial number or personalized initials or inscription. "Tangible personal property" also includes, but is not limited to, the following: (1) All tangible personal property, new or used, including motor vehicles, received in pledge as security for a loan by a pawnbroker. (2) All tangible personal property that bears a serial number or personalized initials or inscription which is purchased by a secondhand dealer or a pawnbroker or which, at the time of such purchase, bears evidence of having had a serial number or personalized initials or inscription. (3) All personal property commonly sold by secondhand dealers which statistically is found through crime reports to the Attorney General to constitute a significant class of stolen goods. A list of such personal property shall be supplied by the Attorney General to all local law enforcement agencies. Such list shall be reviewed periodically by the Attorney General to insure that it addresses current problems with stolen goods. Therefore, clothing, for example, would not appear to be covered. We would therefore like some clarification as to whether it is truly the intent of Council to prohibit these (thrift) stores as well as the others such as pawn, gold buying, etc stores. RYAM BAB Development Services Director ORDINANCE NO. 2011 — 2366 AN INTERIM ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ADOPTED PURSUANT TO GOVERNMENT CODE SECTION 65858 AS AN URGENCY MEASURE TO TAKE EFFECT IMMEDIATELY, EXTENDING FOR 10 MONTHS AND 15 DAYS A MORATORIUM PROHIBITING NEW PAWNBROKER, SECONDHAND AND PRECIOUS METAL DEALING AND ESTABLISHMENTS IN NATIONAL CITY WHEREAS, the City of National City desires to promote and encourage an atmosphere of healthy and diversified businesses in harmony with the interests of the public as determined by the land uses allowed within the City; and WHEREAS, the City has recently adopted a new General Plan, a component of which allows for land usage that includes pawnbrokers, secondhand and precious metal dealers and establishments within the City; and WHEREAS, since the original pawnshop establishments were approved in the 1980's, the City has seen a 200% increase in such establishments. Various existing businesses have also expanded to include dealings in secondhand goods in recent years. Moreover, due to the increasing value of gold and other precious metals, the market has encountered a proliferation of precious metal buying establishments. Recently, unlicensed and unpermitted precious metal and other secondhand dealer establishments and vendors have erupted in record numbers; and WHEREAS, the National City Police Department has been concerned with the increase in crime related to the existence of such establishments, which includes the sale and purchase of stolen goods, and the added burden of being tasked with tracking the reporting requirements for such establishments pursuant to the regulations of the California Department of Justice, particularly in light of the decrease in law enforcement resources in the current economy; and WHEREAS, there is concern by the City Council that such establishments may have become an excessive burden and may be overly saturated in the City at this time; and WHEREAS, the City Council finds it necessary and appropriate to study and. consider the current environment and the effects of existing and new pawnbrokers, secondhand and precious metal establishments, for example, to gather information concerning the status of such establishments and their effect upon other communities; and WHEREAS, the City Council finds that existing land use controls may not adequately address the potential adverse effects of newly proposed pawnbrokers, secondhand and precious metal establishments in the community; and WHEREAS, the City Council finds that without adequate land use controls there would be a current and immediate threat to the public health, safety and welfare were the City to permit new pawnbrokers, secondhand and precious metal dealing and establishments, and that the issuance of building permits, certificates of occupancy, and other entitlements for use for such establishments would result in a threat to the public health, safety a.nd welfare; and - 15 - WHEREAS, at their regular public meeting held on August 2, 2011, the City Council adopted, as an urgency interim ordinance, Ordinance No. 2011- 2364 enacting a moratorium for a period of 45 days on the locating of, development, or approval of new pawnshops, secondhand dealers and precious metal dealing and establishments in the City; and WHEREAS, at their regular meeting of September 6, 2011, the City Council adopted Resolution No. 2011- , "Approving and Authorizing a Written Report Pertaining to a Moratorium Ordinance Prohibiting the Locating of, Development or Approval of New Pawnshops, Secondhand Dealer's and Precious Metal Dealing and Establishments in the City"; and WHEREAS, on September 6, 2011, the City Council held a public hearing, at which oral and documentary evidence was heard, to consider adopting an urgency ordinance to extend for 10 months and 15 days the 45 day moratorium established by Ordinance No. 2011- 2364; and WHEREAS, the City Council finds it essential to protect the health, safety, and welfare of the citizens of the City of National City to extend for an additional period of 10 months and 15 days the moratorium established by Ordinance No. 2011- 2364 prohibiting the locating of, development, or approval of new pawnshops, secondhand dealers and precious dealing and establishments in the City; and WHEREAS, the City Council intends to adopt, after appropriate study, zoning measures that would apply throughout the City prohibiting or regulating new pawnshops, secondhand dealers and precious metal dealing and establishments as soon as practicable. NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of National City as follows: Section 1. For a period of 10 months and 15 days from the effective date of this Ordinance, no new building permit, certificate of occupancy nor entitlement for use shall be issued for and no new construction shall take place relating to pawnbrokers, secondhand and precious metal dealing and establishments, and no new building permit, .certificate of occupancy, nor entitlement for use shall be issued for and no new construction shall take place relating to the location, development, or approval of any new establishment. Section 2. This Ordinance is adopted as an urgency ordinance necessary for the immediate preservation of the public health, safety and welfare within themeaning of the Government Code, and shall take. effect immediately. Section 3. If any portion of this Ordinance is found to be invalid, it is the intention of the City Council that the remaining valid provisions of the Ordinance be severed from the invalid provisions and remain in full force and effect. -- Signature Page to Follow --- Ordinance No. 2011-2366 Pawnbroker Moratorium Extension - 16 - PASSED and ADOPTED this 6th day of September, 2011. ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia G. Silva City Attorney Ron Morrison, Mayor Ordinance No. 2011 — 2364 Pawnbroker Moratorium Ordinance - 17 - CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: June 19, 2012 AGENDA ITEM NO. 28 M TITLE: Directive from City Council (Code Reviewing Body) for staff to review the City's Conflict of Interest Code and return with the completed code review, including any updates if needed, prior to October 1, 2012, per Government Code Section 87306.5. PREPARED BY: Claudia Gacitua Silva PHONE: Ext. 4222 EXPLANATION: Please see attached report. DEPARTMENT: y it y Attorney APPROVED BY: FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Provide directive to staff and file. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: )ort Directive from City Council (Code Reviewing Body) for staff to review the City's Conflict of Interest Code and return with the completed code review, including any updates if needed, prior to October 1, 2012, per Government Code Section 87306.5. Public agencies are required to review the Conflict of Interest Codes every even numbered year. The City Council, as the City's code -reviewing body is required to inform staff of this and to direct staff to review the City's code, per Government Code section 87306.5. This agenda item serves as the notice and directive to staff. Upon this directive from the City Council to staff, the code review will be completed prior to the October 1, 2012 deadline and the Biennial Notice will be filed with the City Clerk reflecting the results of the review. If the review necessitates changes to the code, within 90 days of filing the Biennial Notice, the amendment must be completed and submitted to the City Council for approval. Staff anticipates amendments will be needed to update the positions and titles identified in the Conflict of Interest Code. The City Attorney will work with the Director of Human Resources to draft those changes. Upon review of the Code, further changes may be needed. Recommendation Inform staff of the required review and direct staff to review the Conflict of Interest Code, as required by the Government Code. COMMUNITY DEVELOPMENT COMMISSION HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY AGENDA STATEMENT STING DATE: June 19, 2012 AGENDA ITEM NO. 29 ITEM TITLE: Resolution of the Community Development Commission Housing Authority of the City of National City adopting the Morgan Tower and Kimball Tower Budgets for Fiscal Year 2012-2013. PREPARED BY: Alfredo Ybarr PHONE: 619 336-4279 EXPLANATION: DEPARTMENT: IIousing and Grants APPROVED BY:, This is a request to approve the Morgan Tower and Kimball Tower Budgets for Fiscal Year 2012-13. The Community Development Commission Housing Authority of the City of National City operates housing programs that benefit very low, low and moderate -income households in the City of National City. All costs of operating these programs are revenue offset. There is no cost to the City General Fund. FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: Finance APPROVED: .1 MIS The funding source is Morgan Tower and Kimball Tower rental revenues and Section 8 rental subsidies from the U.S. Department of Housing and Urban Development. There is no cost to the City General Fund. ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Approve resolution. BOARD / COMMISSION RECOMMENDATION: 'ACHMENTS: I. (Background 2. Morgan Budget 3. Kimball Budget RESOLUTION NO. 2012 — RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY ACTING IN ITS CAPACITY AS THE HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY ADOPTING THE MORGAN TOWER AND KIMBALL TOWER BUDGETS FOR FISCAL YEAR 2012-2013 WHEREAS, the Community Development Commission — Housing Authority of the City of City of National City ("CDC -HA") operates the Kimball and Morgan Towers; and WHEREAS, Falkenberg, Gilliam and Associates has been the property management company for said Towers since 1995; and WHEREAS, an operating budget for each building is prepared by the management company, and is reviewed and approved by the CDC -HA Board; and WHEREAS, the Kimball and Morgan Towers' operations do not have a direct financial impact on CDC -HA operations, and should be presented and approved independently of the CDC-HA's annual budget; and WHEREAS, an approximate 2.22% rent increase for the Kimball Tower is recommended to cover general operating costs including utilities, insurance, and administrative expenses; and WHEREAS, the budgets for the Kimball and Morgan Towers for the fiscal year ending 2012-2013 have been prepared and presented for approval. NOW, THEREFORE, BE IT RESOLVED, that the Community Development Commission - Housing Authority of the City of City of National City hereby approves the Kimball and Morgan Towers budgets for the fiscal year 2012-2013. PASSED and ADOPTED this 19th day of June, 2012. Ron Morrison, Chairman ATTEST: Leslie Deese, Secretary APPROVED AS TO FORM: Claudia Gacitua Silva General Counsel Attachment 1 Background Falkenberg, Gilliam and Associates, Inc. (FGA) has been the property management company for the Morgan and Kimball Towers since 1995. Each year, an operating budget for each building is prepared by the management company and is reviewed and approved by the Community Development Commission (CDC). On June 5, 2012, all CDC housing functions and assets were transferred to the Community Development Commission Housing Authority of the City of National City (CDC -HA). As a result, the fiscal year 2012-13 Morgan Tower and Kimball Towers will be considered for approval by the CDC -HA. Kimball Tower Kimball Tower is a 151 unit complex located at 1317 D Avenue owned free and clear by the Community Development Commission. Of the 151 total units, two (2) are reserved for property management staff and 149 are rented to qualified households. Of the 149 rental units, 141 units receive rental subsidies from the U.S. Department of Housing and Urban Development (HUD) through the City of National City's Section 8 program. Eight units are market (unsubsidized) rate and do not receive HUD rental subsidies. For the fiscal year ending June 30, 2013, the projected annual income is $1,080,129 and the total cost -of operations -total $993,-596 Aittrough this presents an income of $86,533, the property management company is required by the CDC -HA to place $84,000 in the replacement reserve account ($7,000 per month). Replacement reserves are funds that are restricted for the replacement of appliances, carpeting, or other unbudgeted building maintenance charges. As of April 30, 2012, the balance of the replacement reserve fund is $1,203,059. After funding the reserve account with the additional $84,000, the net income of the Kimball Tower is estimated to be $2,533. Attached to the operating budget is a FY 2013 capital improvement budget for Kimball Tower that includes: • Replacement of Kimball Tower boilers with a projected estimate of $205,000. • Up -grade Kimball Tower hot water supply piping with a projected estimate of $35,000. • Modernize Kimball Tower elevators with a projected estimate of $225,000. All capital improvements will be paid from the Kimball Tower replacement reserve account. Due to overall increases in projected expenditures, FGA is recommending an increase of $13 (2.22%) per month/per unit from $585 to $598. Households receiving a Section 8 subsidy will not feel the impact of this rental increase, since the proposed rental increase will be covered by the rent subsidy. The eight market rate 1 units will receive an increase to their rent payment, unless the rent increase causes their housing costs to exceed 30% of the household's monthly income. In this case, the City's Section 8 program staff may evaluate the household's eligibility to receive Section 8 rental assistance. Highlights of Kimball Tower Budget are: • Rent increase (GL#5120) of thirteen dollars (2.22%) per month from $585 to $598. Federal rent subsidies will pick up rent increase for those families being subsidized. • Capital Improvement Budget, totaling $465,000, to replace boilers, hot water supply lines, and elevators. Morgan Tower Morgan Tower is a 152-unit complex located at 1415 D Avenue. Of the 152- units, one unit is reserved for property management staff and 151 are rented to qualified households. Of the 151 rental units, 150 receive Section 231 rental assistance from HUD. One unit is market (unsubsidized) rate and does not receive a rental subsidy. For the fiscal year ending June 30, 2013, the projected annual income is $1,287,574 and total cost of operations total $1,200,320 which includes loan principal payments of $233,124. After a HUD required deposit of $85,524 into a replacement reserve fund, the net income of Morgan Tower is estimated to be $1,730. No rent increase is proposed for Morgan Tower for FY 2012-2013. TM -building has a mortgage balance of approximately $2,058,000 with a mortgage maturity date of August 1, 2019. As of April 30, 2012, the balance of the replacement reserve fund is $369,330. Attached to the operating budget is a FY 2013 capital improvement budget for Morgan Tower that includes: • Replacement of the Morgan Tower roof with a projected estimate of $1 z0,000. • Replacement of the Morgan Tower roof -top ventilation units with a projected estimate of $75,000. All capital improvements ($225,000) will be paid from the Morgan Tower replacement reserve account. Notable items of the Morgan Tower budget are: • No rent increased proposed for FY 2012-1013. • Capital Improvement Budget, totaling $225,000, includes the removal and replacement of roof and ventilation units to be paid from replacement reserves. Staff recommends adopting the Morgan Tower and Kimball Tower budgets for the FY 2012-2013. 2 MORGAN TOWERS 2012 Budget Narrative Attachment 2 SUMMARY Morgan Towers is entitled to annual rent increases based on HUD's automatic Annual Adjustment Factors (AAF). This year's AAF's were 0% for San Diego Area, and therefore the building is not allowed to increase rents for the 2012 budget year. We will submit this budget for approval for the 2012 budget year. ACCT. DESCRIPTION 5120 Rental Revenue 5220 Vacancy Factor 5410 Financial Revenue -Project 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 Office Expenses 6320 Management Fee 6330 Manager's Salaries 6340 Legal Expenses 6350 Auditing Expenses 6351 Bookkeeping Fees / Accounting Services 6390 Misc. Administrative Expenses EXPLANATION The proposed rents are as follows: Unit Type 4 of Units Current Rents Proposed Increase Proposed Rents One -Bedroom 151 $687 $0 $687 One -Bedroom 1 Staff Budgeted at 1% of rents. Budgeted per audit. 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 for laundry and vending machine income. Laundry facilities are leased. Budgeted per current for the following training: • Annual occupancy seminar at $1,800, which includes professional training, food, lodging and mileage for office staff. • 2 annual occupancy -related classes at $200 for office staff. • __AnnuaLmaintenanee seminar_ aL$1,000_focmaintenance staff. Budgeted per audit plus $500 for classified advertising of rental units. Budgeted per audit 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. Budgeted per audit plus 5% for telephone and Internet, office equipment and maintenance, printing and copying expenses, office supplies, postage, etc. Budgeted at current rate of 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 $1,803 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 $2,635 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 for project computer software updates at $803, project computer maintenance at $1,890 and web -based occupancy software at $1,733. Also added allowable bookkeeping fees of $2 PUPM for centralized services. Budgeted per current for Resident Council at $100 per month, for a service coordinator at $1,000 per month and her monthly internet usage at $79 per month. Also includes an allowable 10% fee (of service coordinator costs) at $1,200 for quality assurance services. Prepared by Fallcenberg/Gilliaan & Associates, Inc. ■ Managing Agents 1560 West Colorado Boulevard, P.O. Box 7070, Pasadena, CA 91109-7070 • (323) 258-3512 2 Morgan Towers ACCT. DESCRIPTION 6450 Electricity 6451 Water 6452 Gas 6453 Sewer 2012 Budget Narrative Page 2 EXPLANATION Budgeted per 12-month total of $40,339 plus 5%. Budgeted per audit plus 5%. Budgeted per audit plus 5%. Budgeted per audit plus 5%. 6510 Payroll Budgeted per current expense plus 5% for Roberto Estanciero, Superintendent, working 32 hours a week earning $2,103 per month. Note that the Superintendent's salary is split between Morgan and Kimball `Powers. Also budgeted for Philip Flores, Assistant Superintendent, working 37 hours a week earning $3,074 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. Audit was high due to due to additional temp help, which no longer applies. 6515 Supplies 6520 Contracts 6525 Trash Removal 6530 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 6820 Interest on Mortgage Payable 6850 Mortgage Insurance Premium Reserve for Replacement Deposits Principal Payments Required Budgeted per current plus 5% for cleaning and plumbing supplies, electrical and ;naintenance supplies, appliance parts, paint, and hardware and tools, etc. Budgeted per audit (less $32,260 for capital needs items such as flooring and cabinets/countertops) 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 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 audit plus 5%. Budgeted per current plus 5% for four employees at $758.83 each per month for health insurance, five employees at $5.90 each per month for life insurance, and five employees at $15.05 each per month for dental insurance. In addition, budgeted for pension cost which is 5% of each employee's base payroll. Budgeted per current plus 5% for elevator inspection fees at $850 and generator permit fee at $360. Budgeted per amortization schedule. Budgeted per amortization schedule. Budgeted per current monthly deposit amount of $3,127. Budgeted per amortization schedule. Rev. June 4, 2012 Prepared by Fallkenberg/Gillian & Associates, Inc. • Managing Agents 1560 West Colorado Boulevard, P.O. Box 7070, Pasadena, CA 91109-7070 • (323) 258-3512 Budget Worksheet Income and Expense Projections U.S. Department of Housing and Urban Development Office of Housing Federal Housing Commissioner OMB Approval No. 2502-0324 (exp_ 12/31/2014) Iblic reporting burden For this collection of information is estimated 10 average 1.5 hours per response, including the time for reviewing instructions, searching existing data sources, thering 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 -rn, 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 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) of the HCD Amendments of 1978, necessitated that the Department design procedures to give consideration for tenant comments. The inrormalion gathered Is not of a confidential nature. The information is required in order to obtain benefits. Project Number 129-38013 Name of Project Description of Account Acct. No. Audit (FYE 6/3012011) PUPM 151/12 _ ` Current FY (no. of mos. 9 j ... PUPM 151/9 Budget from 10/1/12-9/30/13 PUPM 151/12 Rental Income 5100 Rent Revenue- Gross Potential 5120 501,104 276.55 359,293 264.38 512,480 282.83 Tenant Assistance Payments 5121 716,107 395.20 568,209 418.11 732,364 404.17 Rent Revenue - Stores & Commercial 5140 - - - Garage & Parking Spaces 5170 _ - Flexible Subsidy Revenue 5180 - - - Miscellaneous Rent Revenue 519 E Excess Rent 5191 _ Rent Revenue/Insurance 5192 _ - - Special Claims Revenue 5193 - - - Retained Excess Income 5194 - - - Total Rent Revenue Potential at100% Occupancy 5100T 1,217,211 671.75 927,502 682.49 1,244,844 687.00 Vacancies 5200 Apartments 5220 4,946 2.73 933 0.69 12,448 6.87 Stores and Commercial 5240 - - Rental Concessions 5250 1,047 0.58 68 0.05 - Garage & Parking Spaces 5270 - _ - Miscellaneous 5290 - - Total Vacancies 5200T 5,993 3.31 1,001 0.74 12,448 6.87 Net Rental Revenue (Rent Revenue less Vacancies) 5152N 1,211,218 668.44 926,501 681.75 1,232,396 680.13 1 ame .0 Nursing mimes/Assisted Living/Board & Care/ Other Elderly Care/ Coop/ Other Revenues 5300 r- Financial Revenue 5400 Financial Revenue - Project Operations 5410 29 0.02 12 0.01 29 0.02 Revenue from Investments - Res. Rec. 5430 702 0.39 - - Revenue from Investments - Repl. Res 5440 77 0.04 Revenue from Investments - Misccl!aneous 5490 - _ - Total Financial Revenue 5400T 808 0.45 12 0.01 29 0.02 Other Revenue 5900 Laundry and Vending Revenue 5910 7,222 3.99 5,106 3.76 7,222 3.99 Tenant Charges 5920 - - - Interest Reduction Payments Revenue 5945 - _ Gifts (nonprofits) 5970 - - - Miscellaneous Revenue 5990 100 0.06 2,258 1.66 - Total Other Revenue 5900T 7,322 4.04 7,364 5.42 7,222 3.99 Total Revenue 5000T 1,219,348 672.93 933,877 687.18 1,239,647 684.13 Admin. Expenses 6200/ 6300 Conventions and Meetings 6203 1,510 0.83 2,448 1.80 3,000 1.66 Management Consultants 6204 Advertising and Marketing 6210 1,081 0.60 - 1,581 0.87 Other Renting Expense 6250 1,378 0.76 329 0.24 1,878 1.04 Office Salaries 6310 15,202 8.39 6,045 4.45 9,188 5.07 Office Expenses 6311 • 10,785 5.95 7,171 5.28 11,324 6.25 Office or Model Apartment Rent 6312 - - - - Management Fee 6320 57,215 31.58 45,481 33.47 61,981 34.21 Manager or Superintendent Salaries 6330 58,532 32.30 43,604 32.09 64,706 35.71 Administrative Rent Free Unit 6331 Legal Expenses - Project 6340 1,080 0.60 - - 1,580 0.87 Audit Expenses 6350 9,725 5.37 6,500 4.78 10,225 5.64 Bookkeeping Fees/Accounting Services 6351 3,340 1.84 2,325 1.71 8,074 4.46 Miscellaneous Administrative Expenses 6390 13,200 7.28 10,453 7.69 15,348 8.47 Total Administrative Expenses 6263 T 173,048 95.50 124,356 91.51 188,885 104.24 Project Number 129-38013 Name of Project MORGAN TOWERS Description of Account Acct No. Audit (FYE 6/30/2011) PUPM 151/12 Current FY (no. of mos. 9 ) PUPM 151/9 Budget from PUPM 10/1/12-9/30/13 151/12 Previous editions are obsolete page 1 of 2 ref. Handbook 4350.1 form HUD-92547-A (8/2000) Utilities FuelOil/Coal 6420 6400 Electricity 6450 39,820 21.98 30,163 22.19 42,355 23.38 Water 6451 39,849 21.99 26,064 19.18 41,841 23.09 Gas 6452 37,270 20.57 26,296 19.35 39,134 21.60 Sewer 6453 45,600 25.17 45,600 33.55 47,880 26.42 Total Utilities Expense 6400 T 162,539 89.70 128,123 94.28 171,211 94.49 Operating & Payroll 6510 136,017 75.06 88,047 64.79 123,348 68.07 Maint. Supplies 6515 49,074 27.08 21,360 15.72 51,528 28.44 Expenses Contracts 6500 6520 143,950 79.44 69,863 51.41 117,274 64.72 Operating and Maintenance Rent Free Unit 6521 - - - Garbage and Trash Removal 6525 12,662 6.99 9,320 6.86 13,295 7.34 Security Payroll/Contract 6530 28,235 15.58 27,520 20.25 29,647 16.36 Security Rent Free Unit 6531 - - Heating/Cooling Repairs and Maintenance 6546 25,624 14 14 22,671 16.68 26,905 14.85 Snow Removal 6548 - - - Vehicle & Maint. Equip. Oper. and Repair 6570 - - - Misc. Operating & Maintenance Expenses 6590 - - - Total Operating & Maintenance Expenses 6500 T 395,562 218.30 238,781 175.70 361,997 199.78 Taxes & Real Estate Taxes 6710 - - Insurance Payroll Taxes (Project's share) 6711 18,281 10.09 11,767 8.66 15,506 8.56 6700 Property and Liability Insurance (Hazard) 6720 32,764 18.08 24,689 18.17 34,402 18.99 Fidelity Bond Insurance 6721 - - - Workmen's Compensation 6722 14,819 8.18 12,351 9.09 15,560 8.59 Health Insurance & Other Employee Benefits 6723 28,440 15.70 23,708 17.45 39,565 21-83 Misc. Taxes, Licen., Permits, & Insurance 6790 2,000 1.10 1,210 0.89 1,271 0.70 Total Taxes & Insurance 6700T 96,304 53.15 73,725 54.25 106,304 58.67 Financial Interest on Mortgage Payable 6820 155,279 85.69 107,508 79.11 126,932 70.05 Expenses Interest on Notes Payable (Long -Term)' 6830 6800 Interest on Notes Payable (Short -Term)' 6840 Mortgage Insurance Premium/Service Charge 6850 11,855 6.54 7,961 5.86 9,471 5.23 Miscellaneous Financial Expenses 6890 Total Financial Expenses 6800 T 167,134 92.24 115,469 84.97 136,403 75.28 Expenses Nursing Homes/Assisted Living/Board & 6900 Care/Other Eld. Care/ Coop/ Other 6900 Total Cost of Operations 6000T 994,587 548.89 680,454 500.70 964,800 532.45 Reserve for Replacements Dep. Required 37,524 20.71 28,143 20.71 37,524 20.71 Principal Payments Required 204,777 113.01 162,534 119.60 233,124 128.66 Debt Service for other approved loans Debt Service Reserve (if required) General Operating Reserve (Coops) Total Cash Requirements 1,236,888 682.61 871,131 641.01 1,235,448 681.81 Less Total Revenue 1,219,348 672.93 933,877 687.18 1,239,647 684.13 Net Cash Surplus (Deficiency) (17,540) (9.68) 62,746 46.17 4,199 2.32 Rev. 6/4/2012 I 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 prosecute 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) (Signature) Date (mm/dd/yyyy) ikons are obsolete 'HUD Approved Secondary Financing page 2 of 2 0nfy for Budget Projections. ref. Handbook 4350.1 form HUD-92547-A (8/2000) CAPITAL IMPROVEMENT BUDGET MORGAN TOWER Replace roofing: Estimate: S150,0OO Paid by replacement reserves Replace roof -top ventilation units: Estimate: $75 OOO. Paid by replacement reserves KIMBALL TOWERS 2012 Budget Narrative SUMMARY The 2012 Budget for Kimball Towers proposes a rent increase due to increases in utility, administration and insurance costs. Other expenses that [he building must pay for have also increased. Last year's rents increase was effective September I, 2011. We are proposing this rent adjustment request to be effective September 1, 2012. Currently residents pay 30% of income up to a maximum of $585. ACC"I'. DESCRIPTION 5120 Rental Revenue Attachment 3 5220 Vacancy Factor 5410 Financial Revenue -Project Operations 5440 Revenue from investments - Replacements Reserves 5910 Laundry and Vending 5990 Misc. Revenue 6203 Conventions and Meetings 6204 6210 6310 Management Consultants-_ Advertising/Marketing Office Salaries 6311 Office Expenses 6320 Management Fee 6330 Manager's Salaries 6331 6340 6350 6351 Admin. Rent -Free Units Legal Expenses Auditing Expenses Bookkeeping Fees / Accounting Services EXPLANATION The proposed rents are as follows: Unit Type tt of Units Current Rent Proposed Increase Total Rent One -Bedroom 151 Budgeted at 1% of rents. Budgeted per audit. $585 1 $13 $598 Budgeted at 10. The amount remains in the reserve for replacement account and may not be used for operations. Budgeted per audit for laundry and water vending income. Budgeted per audit for key income and other miscellaneous revenue. Budgeted per current for the following training: • Annual occupancy seminar at $2,700, which includes professional training, food, lodging and mileage for office staff. • 2 annual occupancy -related classes at $300 for office staff. • Annual maintenance seminar at $1,000 for maintenance staff. Budgeted at$20,000- for -an asset management fee. Budgeted at $500 for classified advertising of rental units. Budgeted per current plus 5% for assistance in processing rents at $628 per month plus $1,500 for additional work related to front-line assistance. Also budgeted for office assistant, working 40 hours per week at $2,947 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 at current fee of 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 $1,803 per month. Note that the manager's salary is split between Morgan and Kimball "Powers. Also budgeted for Flora Gouleva, Assistant Manager, working 32 hours per week, earning $2,496 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 audit plus $500 for project related legal expenses. Budgeted per audit plus $500 for annual audit, electronic submission and filing fees. Budgeted for project computer software updates at $803, project computer maintenance at $945 and web-bascd occupancy software at $1,365. Also added allowable bookkeeping fees of $2 PUPM for centralized services. Prepared by Falkenberg/Gilliatsr & Associates, Inc. ■ Managing Agents 1560 West Colorado Boulevard, P.O. Box 7070, Pasadena, CA 91 109-7070 ■ (323) 258-3512 3 Kimball Towers ACCT. DESCRIPTION 6390 Misc. Administrative Expenses 64.50 Electricity 6451 Water 6452 Gas 6453 Sewer 6510 Payroll 6515 6520 6525 6530 Supplies Conn acts Trash Removal 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 2012 Budget Narrative Page 2 EXPLANATION 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. Budgeted per 12-month total of$44,756 plus 5%_ Budgeted per 12-month total ofS35,149 plus 5%. Budgeted per audit plus 5%. Budgeted per audit plus 5%. Budgeted per current expense plus 5% for Roberto Estanciero , Superintendent, working 40 hours a week earning $1,R03 per mouth. 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 $3, I20 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 plus 5% for cleaning supplies, plumbing supplies, electrical and maintenance supplies, appliance parts, paint, and hardware and tools, etc. Budgeted per audit 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 fine alarm inspections, annual fire alarm monitoring, fire/sprinkler alarm repairs smoke detector-pm-ehases-and _ - installation, and fire extinguisher service. Budgeted per audit plus 5% for heating and cooling repairs. Current is high due to repair of boiler at $7,681 and circulating/start pumps at $3,930. Budgeted per audit plus 5% of Social Security, Medicare, and SUI/ETT employee taxes. Budgeted per cunTent premium of $32,400pIus 5% for property and liability insurance. Audit is low due to insurance reimbursements of .$10,910 for property damages. Rudgeted per audit plus S% for worker's cornpensetion insurance. Budgeted per cunent expense plus 5% for three employees at monthly cost of $758.83 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 current plus 5% for elevator permit and inspection tees at $850, annual emissions fee at $319, and Hazrnat materials fee at 5 314- Budgeted per monthly deposit of $7,000. Pay 3, 20/2 Prepared by Faticenberg/Cdltiarsa & Associates, Inc. ■ Managing Agents 1560 West Colorado Boulevard, P.O. Box 7070, Pasadena, CA 91109-7070 ■ (323) 258-3512 Budget Worksheet Income and Expense Projections U.S. Department of Housing and Urban Development Office of Housing Federal Housing Commissioner OMB Approval No 2502-0324 (exp. 12131/2014} Public reporting burden for this collection of information is estimated to average 1.5 hours per response, including the time for reviewing instructions, searching existing data sources, galbering 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 is collected in accordance with Title II of the National housing Act which requires 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) of the BCD Amendments of 1978, necessitated 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. Project Number Name of Project KIMBALL TOWE Description of Account Acct. No. Audit (EYE 6/30/20111 PUPM 151/12 Current FY PUPM (no. otmos. 9) 151/9 Budget from 9/1/12-8/31/13 PUPM 151/12 Rental Rent Revenue - Gross Potential 5120 516,346 284 96 376,741 277.22 567,039 312.94 Income Tenant Assistance Payments 5121 470,359 259 58 412,150j 303.27 516,537 285.06 5100 Rent Revenue - Stores & Commercial 5140 - _ Garage & Parking Spaces 5170 _ _ J Flexible Subsidy Revenue 5180 - _ - Miscellaneous Rent Revenue 5190 _ Excess Rent 519, - _ - Rent Revenue/Insurance 5192 _ - Special Claims Revenue 5193- Retained Excess Income 5194 _ - Total Rent Revenue Potential et 100%Occupancy 5100T 986,705 544.54 788,891 580.49 1,083,576 598.00 Vacancies Apartments 5220 _ 4,560 2.52 469 0.35 10,836 5.98 5200 Stores and Commercial 5240 Rental Concessions 5250- Garage & Parking Spaces 5270- Miscellaneous 5290 Total Vacancies 5200T 4,560 2.52 469 0.35 10,836 5.98 Net Rental Revenue (Rent Revenue less Vacancies) 5152N 982,145 542.02 788,422 580.15 1,072,740 592.02 1 Incorrte- Nursing Homes/Assisted Living/Board & Care/ Other 5300 Elderly Care/ Coop/ Other Revenues 5300 Financial Financial Revenue - Project Operations 5410 31 0.02 15 0.01 31 0.02 • Revenue Revenue from Investments - Res_ Rec. 5430 - - 5400 Revenue born Investments - Repl. Res 5440 2,565 1.42 - _ Revenue from Investments - Miscellaneous 5490 - Total Financial Revenue 5400T 2,596 1.43 15 0.01 31 0.02 Other Laundry and Vending Revenue 5910 7,038 3.88 4,995 3.58 7,038 3.88 Revenue Tenant Charges 5920 _ 5900 Interest Reduction Payments Revenue 5945 I - - Gifts (nonprofits) 5970 - Miscellaneous Revenue 5990 320 0.18 506 0.37 320 0.18 Total Other Revenue 5900T 7,358 4.06 5,501 4.05 7,358 4.06 Total Revenue 5000T 992,099 547.52 793,938 584.21 1,080,129 596.10 Admin. Conventions and Meetings 6203 4,185 2.31 3,238 2.38 4,000 2.21 Expenses Management Consultants 6204 - - 20,000 11.04 32001 5300 Advertising and Marketing 6210 - _ _ _ Other Renting Expense 6250 52 0.03 - - 500 0.28 Office Salaries 6310 47,793 26.38 32,470 23.89 49,035 27.06 Office Expenses 6311 19,337 10.67 15,820 11.64 20,304 11,21 Office or Model Apartment Rent 6312 _ - Management Fee 6320 70,343 38.82 57,767 42.51 80,983 44.69 it Manager or Superintendent Salaries 6330 48.681 26.87 I 41,458 30.51 .59,163 • 32.65 Administrative Rent Free Unit 6331 ] 13,600 7.51 10,160 7.48 14,352 7.92 Legal Expenses - Project 6340 1,080 0.60 I - - 1,580 0.87 j Audit Expenses 6350 , 3,000 1.66 I - - 3,500 1.93 Bookkeeping Fees/Accounting Services 6351 4,190 2.31 1,975 1.45 6,737 3.72 i, Miscellaneous Administrative Expenses 6390 13,445 7.42 9,900 7.28 14,400 7.95 I Total Administrative Expenses 6263 T 225,706 124.56 172,788 127.14 274,554 151.521 Prnvious editions are obsolete page 1 of 2 id ref. Handbook 4350.1 tor) HUD-92547-A (0/2000) Project Number Name of Project T 6 F E 69 KIMBALL TO Description of Account nsurance Acct. No. Audit PUPM (FYE 6/30/2011) 151/12 Current FY (no. of rnos. 9) PUPM 151/9 BudgetfromPUPM 9/1l12-8/31113 151112 _ _n Utilities Fuel Oil/Coal 6400 6420 ' ---- Electricity 6450 44,255 24.42 33,578 24.71 46,994 25.93 Water 6451 26,893 14.84 23,978 17.64 36,906 20.37 Gas 6452 53,441 29.49 37,259 27 42 56,113 30.97 Sewer 6453 45,300 25.00 45,300 33.33 47,565 26-25 Total Utilities Expense 6400 T 169,889 93.76 140,115 103.10 _ 187,578 103.52 operating & payroll Naint. 6510 103,853 57.31 81,256 59.79 108,838 60.07-1 Supplies =xpenses 6515 47,791 26.37 25,481 1875 50,181 27.69 i500 Contracts 6520 186,842 103.11 98,008. 72.1.2 196,184 108.27 Operating and Maintenance Rent Free Unit 6521 Garbage and Trash Removal 6525 13,584 7.50 9,525 7.01 14,263 7.87 Security Payroll/Contract 6530 30,825 17.01 22,978 16.91 32,366 17-86 Security Rent Free Unit 6531 Heating/Cooling Repairs and Maintenance 6546 19,017 10-50 26,129 19.23 19,9681 11.02 Snow Removal 6548 - - Vehicle & Maint. Equip. Oper. and Repay 6570 - -_-- --- Mist. Operating & Maintenance Expenses 6590 - - - -Total Operating & Maintenance Expenses 6500 T 401,912 221.81 263,377 193.80 421,800 232.78 axes & Real Estate Taxes 6710 - Payroll Taxes (Project's share) 700 6711 18,213 10.05 13,509 9.94 19,124 10 55 Property and Liability Insurance (Hazard) 6720 21,339 11.78 24,300 17.88 34,020 18.77 Fidelity Bond Insurance 8721 - Workmen's Compensation 6722 15,467 8.54 14,304 10.53 16,240 8.96 Health Insurance & Other Employee Benefits 6723 24,456 13.50 17,781 13.08 38,723 21.37 Misc. Taxes, Licen., Permits, & Insurance 6700 633 0.35 850 0.63 1,557 0.86 Total Taxes & Insurance 6700T 80,108 44.21 , 70,744 52.06 109,664 60.52 nanciat Interest on Mortgage Payable cpenses 6820 - _ - - Interest on Notes Payable (Long -Term) " 683000 Interest on Notes Payable (Short -Term)- 6840 Mortgage Insurance Premium/Service Charge 6850 _ - Miscellaneous Financial Expenses 6890 Total Financial Expenses 6800 T _ _ - ----'_- :penses Nursing Homes/Assisted Living/Board & 00 Care/Other Eld. Care/ Coop/ other 6900 Total Cost of Operations 6000T 877,615 484.33 647,024 476.10 993,596 548.34 4 Reserve for Replacements Dep. Required 84,000 46.36 63,000 46.36 84,000 46.36 - Principal Payments Requited - _- - - - _ - - - D- ebt Service for other approved loans -- - Debt Service Reserve (if required) General Operating Reserve (Coops) Total Cash Requirements 961,615 530.69 710,024 522.46 1,077,596 594.70 Less Total Revenue 992,099 547.52 793,938 584.21 1,080,129 596.10 Net Cash Surplus (Deficiency) 30,484 16.82 83,914 61.75 2,533 1.40 hereby certify That all the information slated herein, as well as any information provided in the accompaniment herewith, is hue and accurate. Warning: HUD will prosecute false daims and statements Conviction may result in criminal and/or civil penalties. (18 V.S.C. 1001, 1010, 1012t 31 U.S.C. 3729, 3802) (Siature) i � Date (mmltldfyyyy) 5/3/20 1 2 Prey ions are obsolete 'HUD Approved Secondary Financing page 2 of 2 Only tor Budget Projections. ref Handbook 43504 form HUD-92547-A (8/2000) If CAPITAL IMPROVEMENT BUDGET KIMBALI_. TOWER • Replace boilers: Estimate: $205,000•Paid by replacement reserves. • Up -grade hot water supply piping: Estimate: $35,000%Paid by replacement reserves. • Modernize elevators: Estimate $225,000/Paid by replacement reserves. 2 COMMUNITY DEVELOPMENT COMMISSION - HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY AGENDA STATEMENT TING DATE: June 19, 2012 AGENDA ITEM NO. 3 ITEM TITLE: Resolution of the Community Development Commission of the City of National City acting in its capacity as the Housing Authority of the City of National City approving and accepting the transfer of the housing functions, assets and obligations of and from the Successor Agency to the Community Development Commission as the National City Redevelopment Agency PREPARED BY: Claudia Gacitua ilva (Ext. 4222) Alfredo Ybarra(" (Ext. 4279) EXPLANATION: APPROVED BY: DEPARTMENT: City Attorney Ho sing and Grants APPROVED BY: 44 I I�� This resolution allows for the acceptance of the transfer of the housing func • . , assets and obligations from the Successor Agency to the Community Development Commission acting in its capacity as the Housing Authority. The staff report accompanying the Successor Agency agenda item on the May 15, 2012 Successor Agency containing the details of the transfer is included for reference. FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: 'N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Adopt resolution. BOARD / COMMISSION RECOMMENDATION: N/A ACHMENTS: Staff report Staff report on Successor Agency transfer to CDC -HA Proposed resolution Staff Report Introduction On June 28, 2011, the Governor signed Assembly Bill No. ABx1 26, which legislatively eliminated redevelopment agencies. The subsequent California Supreme Court decision, in California Redevelopment Association v. Matosantos, affirmed the validity of ABx1 26 and made the dissolution of redevelopment agencies effective February 1, 2012. As of February 1, 2012, successor agencies were designated to wind down and carry out the business and fiscal affairs of the former redevelopment agencies. In the City of National City, the Community Development Commission of the City of National City was created in 1975, which operated both the Redevelopment Agency and Housing Authority functions. While the Redevelopment Agency no longer exists and the Community Development Commission no longer has authority to carry out the Redevelopment Agency functions as of February 1, 2012, the Housing Authority continues to exist and the Community Development Commission continues to have authority to carry out Housing Authority functions. Pursuant to ABx1 26, the City Council elected for the City to serve as the "Successor Agency" to the dissolved Redevelopment Agency. In addition, the City Council elected for the Housing Authority to serve as the "Successor Housing Entity" of the dissolved Redevelopment Agency, meaning that the Housing Authority is designated as the entity responsible for performing the housing functions previously performed by the Redevelopment Agency (and the Community Development Commission acting in its capacity as the Redevelopment Agency), and as the entity to receive the transfer of, without limitation, all of the housing assets, rights, powers, duties, obligations, liabilities and functions previously performed by the Redevelopment Agency (and the Community Development Commission acting in its capacity as the Redevelopment Agency). Upon the dissolution of the Redevelopment Agency on February 1, 2012, all assets, properties, contracts, leases, books and records, buildings and equipment of the dissolved Redevelopment Agency (and presumably the Community Development Commission acting in its capacity as the Redevelopment Agency) were transferred by operation of law to the control of the Successor Agency and all authority, rights, powers, duties, and obligations previously vested in the Redevelopment Agency (and presumably the Community Development Commission acting in its capacity as the Redevelopment Agency) were vested in the Successor Agency, for administration pursuant to Part 1.85 of ABx1 26. ABx1 26 requires the Successor Agency to effectuate the transfer of the housing functions and assets of the Successor Agency to the Housing Authority as the Successor Housing Entity under ABx1 26. Therefore, the action before you formalizes the transfer of the assets and functions from the Successor Agency to the Community Development Commission acting in its capacity as the Housing Authority. Background Creation of the Community Development Commission In 1967, the City Council established the Redevelopment Agency of the City of National City (the "Agency") by Ordinance No. 1164. Years later, the City Council established both the Community Development Commission of the City of National City (the "CDC") and the Housing Authority of the City of National City (the "Authority") by Ordinance No. 1484, dated October 14, 1975. The CDC was vested with all of the powers, duties and responsibilities of both the Agency and the Authority, for the purpose of enabling the CDC to operate and govern the Agency and the Authority under a single board and as a single operating entity. The CDC operated as both Agency and Authority until February 1, 2012. The January 10, 2012 Actions in Anticipationof the Elimination of Redevelopment on February 1, 2012 When the Redevelopment Agency, originally established in 1967, was eliminated as of February 1, 2012, the CDC continued to operate as the Housing Authority entity. The CDC still has the Authority functions to operate. On January 10, 2012, prior to and in anticipation of the dissolution of the Agency, the City of National City elected to be the Successor Agency to the Agency (the "Successor Agency"). The Successor Agency is a legal entity that exists separate and independent from the City of National City. Also, on January 10, 2012, the City Council designated the Authority as the entity responsible for performing the housing functions previously performed by the Agency and the CDC acting in its capacity as the Agency, and designating the Authority as the entity to receive the transfer of, without limitation, all of the housing assets, rights, powers, duties, obligations, liabilities and functions previously performed by the Agency and the CDC acting in its capacity as the Agency, upon the dissolution of the Agency under AB 26. The Board of Directors of the Authority, on January 10, 2012, accepted the designation as the entity to perform the housing functions previously performed by the Agency and the CDC acting in its capacity as the Agency. In addition, the Authority accepted the transfer of all the housing assets, rights, powers, duties, obligations, liabilities, and functions previously performed by the Agency and the CDC acting in its capacity as the Agency, upon the dissolution of the Agency per ABx1 26. Thereafter, on January 24, 2012, the CDC ratified and confirmed the City Council of the City of National City's 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 and the CDC acting in its capacity as the Agency, upon the dissolution of the Agency under ABx1 26, while reserving its rights, authority and powers vested in the CDC. Discussion All Assets, Properties, Contracts, Leases, etc. of the Agency Were Transferred to the Successor Agency as of February 1, 2012, Pursuant to ABx1 26. On February 1, 2012, all assets, properties, contracts, leases, books and records, buildings, and equipment of the Agency were transferred by operation of law to the control of the Successor Agency, and all authority, rights, powers, duties, and obligations previously vested in the Agency were vested in the Successor Agency, for administration pursuant to Part 1.85 of ABx1 26. While the CDC does remain in existence performing the functions and operations of the Authority, ABx1 26 does not directly address or contemplate how the assets in the name of the CDC would be retained in part (for the Authority) and transferred in part (as the Agency). Instead, Health and Safety Code section 34177(g) of ABx1 26 requires the Successor Agency to effectuate the transfer of the housing functions and assets of the Successor Agency to the Authority. The Successor Agency Now Needs to Take Action to Allow the Authority and the CDC Acting as the Authority to Complete Housing Projects and Carry Out Housing Functions In order to allow the Authority and the CDC acting in its capacity as the Authority to appropriately complete the housing projects and carry out the housing functions previously performed by the Agency and the CDC acting in its capacity as the Agency, the Successor Agency needs to effectuate the transfer of the Real Property, the Other Assets and the Obligations, all as described below, of and from the Successor Agency to the CDC acting in its capacity as the Authority at this time. The attached lists detail the Real Property, Other Assets and Obligations that are part of this transfer. The Real Property consists of the real property located in the City of National City that was acquired with funds from the Low and Moderate Income Housing Fund of the Agency and the CDC acting in its capacity as the Agency and associated with the housing functions previously performed by the Agency and the CDC acting in its capacity as the Agency, as described in the Schedule of Real Property (Attachment No. 1) (collectively, the "Real Property"). Please note that other real property assets currently held in the name of the CDC without distinction between the Agency or the Authority that have not been specifically identified as real property acquired with Agency funds or acquired for Agency purposes are not included on the Schedule of Real Property because we presume that said assets were acquired by the CDC acting in its capacity as the Housing Authority, particularly in Tight of the specific funding programs involved with those assets such as Section 8 and HUD housing programs that do not require the involvement of the Agency. The Other Assets referred to above consist of the leases, promissory notes, agreements and other rights to receive payment of funds and/or other consideration associated with the housing functions previously performed by the Agency and the CDC acting in its capacity as the Agency, including but not limited to the leases, promissory notes and agreements described in the Schedule of Other Assets (Attachment No. 2), all cash accounts, records, reports, files, furniture, fixtures, equipment, and all other tangible and intangible personal property associated with the housing functions previously performed by the Agency and the CDC acting in its capacity as the Agency (collectively, the "Other Assets"). The "Obligations" referred to above consist of the Successor Agency's rights and obligations under any and all agreements associated with the housing functions previously performed by the Agency and the CDC acting in its capacity as the Agency, including but not limited to the agreements described in the Schedule of Obligations (Attachment No. 3) (collectively, the "Obligations"). Recommendation In order to allow the Authority and the CDC acting in the capacity as the Authority to carry out the housing projects and functions, staff recommends the Successor Agency approve and authorize the transfer to the CDC acting in its capacity as the Authority of all of the Successor Agency's right, title and interest, now held or at any time hereafter acquired, in and to the Real Property, the Other Assets, and the Obligations for use by the CDC acting in its capacity as the Authority to carry out the housing functions previously performed by the Agency and the CDC acting in its capacity as the Agency. In addition, staff recommends that the Executive Director, or her designee, of the Successor Agency be: 1) authorized and directed to take all reasonable and necessary actions and sign on behalf of the Successor Agency all reasonable and necessary documents, including without limitation assignment and assumption agreements, first approved in writing by the Successor Agency General Counsel to implement and carry out the transfer of the Real Property, Other Assets, and Obligations from the Successor Agency to the CDC acting in its capacity as the Authority; and, 2) authorized and directed to take all reasonable and necessary actions to establish and implement appropriate procedures for the Successor Agency's payment of the costs of the Authority and the CDC acting in its capacity as the Authority of carrying out the Obligations, including administrative costs in amounts that are not disproportionate to the costs of carrying out the Obligations. ATTACHMENT NO. 1 SCHEDULE OF REAL PROPERTY 1. 11028 A AVE1 -[APN #556 553 08 001 REAL PROPERTY IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA 2. JSHERYL LANE- NO NUMBER] -fAPN #557 430 37 001 REAL PROPERTY IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA 3. J405 W. 18TH STREET] -fAPN #559 085 08 001 REAL PROPERTY IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA ATTACHMENT NO. 2 SCHEDULE OF OTHER ASSETS RESIDUAL RECEIPTS PROMISSORY NOTES Residual Receipts Promissory Note secured by Deed of Trust to the Community Development Commission of the City of National City -CDC Acquisition and Development loan dated as of 12/18/2001 from Plaza Manor Preservation, L.P. in the principal amount of $260,000. Residual Receipts Promissory Note secured by Deed of Trust to the Community Development Commission of the City of National City -CDC Acquisition and Development loan dated as of 02/19/1999 from Copper Hills Apartments Limited Partnership in the principal amount of $1,915,544. Residual Receipts Promissory Note secured by Deed of Trust to the Community Development Commission of the City of National City -CDC Acquisition and Development loan dated as of 06/01/1999 from Copper Hills Apartments Limited Partnership in the principal amount of $4,454,037. Residual Receipts Promissory Note secured by Deed of Trust to the Community Development Commission of the City of National City -CDC Acquisition and Development loan dated as of 08/28/2008 from Casa Familiar, Inc. in the principal amount of $669,653. Residual Receipts Promissory Note secured by Deed of Trust to the Community Development Commission of the City of National City -CDC Acquisition and Development loan dated as of 11/01/2005 from Plaza City Apartments, LP in the principal amount of $3,722,000. PROMISSORY NOTES Promissory Note to the Community Development Commission of the City of National City from Richard Azhocar in the principal amount of $30,000.00. Promissory Note to the Community Development Commission of the City of National City from Salvador Barajas in the principal amount of $2,340.00. Promissory Note to the Community Development Commission of the City of National City from Adriana Barcena in the principal amount of $7,440.00. Promissory Note to the Community Development Commission of the City of National City from Timothy Blake in the principal amount of $5,196.00. Promissory Note to the Community Development Commission of the City of National City from Mark Brown in the principal amount of $19,400.00. Promissory Note to the Community Development Commission of the City of National City from Daniel Ceballos in the principal amount of $30,500.00. Promissory Note to the Community Development Commission of the City of National City from Leonardo Descaller in theprincipal amount of $26,500.00. Promissory Note to the Community Development Commission of the City of National City from Jose Espinoza in the principal amount of $28,000.00. Promissory Note to the Community Development Commission of the City of National City from Jose Gutierrez in the principal amount of $1,889.00. Promissory Note to the Community Development Commission of the City of National City from Miguel Hernandez in the principal amount of $25,000.00. Promissory Note to the Community Development Commission of the City of National City from Thomas Keough in the principal amount of $2,770.00. Promissory Note to the Community Development Commission of the City of National City from SalvadorLeonin theprincipal amount of $12,960.00. Promissory Note to the Community Development Commission of the City of National City from Dora Liera in the principal amount of $25,000.00. Promissory Note to the Community Development Commission of the City of National City from Barbara Mellor in the principal amount of $18,926.00. Promissory Note to the Community Development Commission of the City of National City from Danielle Michael is in the principal amount of $19.900.00. Promissory Note to the Community Development Commission of the City of National City from Marco Najera in the principal amount of $21,000.00. Promissory Note to the Community Development Commission of the City of National City from Victor Ramos in the principal amount of $15,000.00. Promissory Note to the Community Development Commission of the City of National City from Eddie Rodriguez in the principal amount of $1,618.00. Promissory Note to the Community Development Commission of the City of National City from Jesus Romero in the principal amount of $18,050.00. Promissory Note to the Community Development Commission of the City of National City from Alvaro Sanchez in the principal amount of $18,000.00. Promissory Note to the Community Development Commission of the City of National City from Carlos Solis in the principal amount of $15,000.00. Promissory Note to the Community Development Commission of the City of National City from Antonio Vargas in the principal amount of $25,000.00. Promissory Note to the Community Development Commission of the City of National City from Albert Wertz in the principal amount of $18,200.00. ATTACHMENT NO. 3 SCHEDULE OF OBLIGATIONS AFFORDABILITY COVENANTS Agreement Containing Covenants between the Community Development Commission of the City of National and Plaza Manor Preservation, L.P. dated as of 06/19/2002. Agreement Containing Covenants between the Community Development Commission of the City of National and Copper Hills Apartment Limited Partnership dated as of 12/07/1998. Agreement Containing Covenants between the Community Development Commission of the City of National and Casa Familiar, Inc. dated as of 11/09/2009. ENVIRONMENTAL INDEMNITY AGREEMENTS Environmental Indemnity by Casa Familiar, Inc. in favor of the Community Development Commission of the City of National City dated as of 11/09/2009. RESOLUTION NO. 2012 — RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY ACTING IN ITS CAPACITY AS THE HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY APPROVING AND ACCEPTING THE TRANSFER OF THE HOUSING FUNCTIONS, ASSETS AND OBLIGATIONS OF AND FROM THE SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION AS THE NATIONAL CITY REDEVELOPMENT AGENCY WHEREAS, the City Council of the City of National City established the Redevelopment Agency of the City of National City (the "Agency") by Ordinance No. 1164, on April 11, 1967; and WHEREAS, the City Council of the City of National City established the Housing Authority of the City of National City (the "Authority") by Ordinance No. 1484, on October 14, 1975; and WHEREAS, the City Council of the City of National City established the Community Development Commission of the City of National City (the "CDC") by Ordinance No. 1484, on October 14, 1975, and vested the CDC with all of the powers, duties and responsibilities of both the Agency and the Authority, among other matters, for the purpose of enabling the CDC to operate and govern the Agency and the Authority under a single board and as a single operating entity; and WHEREAS, pursuant to Assembly Bill No. X1 26 (2011-2012 1st Ex. Sess.) signed by the California Governor on June 28, 2011 ("AB 26"), as modified by the California Supreme Court on December 29, 2011 by its decision in California Redevelopment Association v. Matosantos, all California redevelopment agencies, including the Agency, were dissolved on February 1, 2012, and successor agencies were designated and vested with the responsibility of winding down the business and fiscal affairs of the former redevelopment agencies; and WHEREAS, pursuant to AB 26, the City Council of the City of National City adopted Resolution No. 2012-15 on January 10, 2012, electing to be the Successor Agency to the Agency (the "Successor Agency"), which is a legal entity that exists separate and independent from the City of National City; and WHEREAS, pursuant to AB 26, the City Council of the City of National City adopted Resolution No. 2012-16 on January 10, 2012, designating the Authority as the entity responsible for performing the housing functions previously performed by the Agency and the CDC acting in its capacity as the Agency, and designating the Authority as the entity to receive the transfer of, without limitation, all of the housing assets, rights, powers, duties, obligations, liabilities and functions previously performed by the Agency and the CDC acting in its capacity as the Agency, upon the dissolution of the Agency under AB 26; and WHEREAS, in accordance with AB 26, the Board of Directors of the Authority adopted Resolution No. 2012-01 on January 10, 2012, accepting the designation as the entity that will perform the housing functions previously performed by the Agency and the CDC acting in its capacity as the Agency, and accepting the transfer of, without limitation, all of the housing assets, rights, powers, duties, obligations, liabilities and functions previously performed by the Agency and the CDC acting in its capacity as the Agency, upon the dissolution of the Agency under AB 26; and Resolution No. 2012 — June 19, 2012 Page Two WHEREAS, the CDC adopted Resolution No. 2012-30 on January 24, 2012, ratifying and confirming the City Council of the City of National City's 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 and the CDC acting in its capacity as the Agency, upon the dissolution of the Agency under AB 26, while reserving its rights, authority, and powers duly vested in the CDC; and WHEREAS, on February 1, 2012, all assets, properties, contracts, leases, books and records, buildings and equipment of the Agency were transferred by operation of law to the control of the Successor Agency and all authority, rights, powers, duties, and obligations previously vested in the Agency were vested in the Successor Agency, for administration pursuant to Part 1.85 of AB 26; and WHEREAS, Section 34177(g) of AB 26 requires the Successor Agency to effectuate the transfer of the housing functions and assets of the Successor Agency to the Authority; and WHEREAS, in order to allow the Authority and the CDC acting in its capacity as the Authority to appropriately complete the housing projects and carry out the housing functions previously performed by the Agency and the CDC acting in its capacity as the Agency, the CDC acting in its capacity as the Authority hereby finds it necessary and appropriate to accept the transfer of the Real Property, the Other Assets and the Obligations, all as described below, of and from the Successor Agency to the CDC acting in its capacity as the Authority at this time; and WHEREAS, pursuant to Section 15301 of the State CEQA Guidelines, the transfer of the Real Property, Other Assets, and Obligations is exempt from environmental review under CEQA because the transfer will result in a continuation of an existing facility involving no expansion of use and is therefore exempt from environmental review, and any future development of the Real Property and the Other Assets will require separate environmental review; and WHEREAS, the transfer of the Real Property, Other Assets, and Obligations of the Successor Agency to the CDC acting in its capacity as the Authority will accomplish the public purposes of allowing the Authority and the CDC acting in its capacity as the Authority to appropriately complete the housing projects and carry out the housing functions previously performed by the Agency and the CDC acting in its capacity as the Agency; 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. The Board of Directors of the CDC acting in its capacity as the Authority has received and heard all oral and written objections to matters pertaining to this transaction, and all such oral and written objections are hereby overruled. Resolution No. 2012 — June 19, 2012 Page Three 2. The Board of Directors of the CDC acting in its capacity as the Authority hereby finds and determines that the foregoing recitals are true and correct. 3. The Board of Directors of the CDC acting in its capacity as the Authority hereby approves and accepts the transfer of all of the Successor Agency's right, title and interest, now held or at any time hereafter acquired, in and to the Real Property and the Other Assets for use by the CDC acting in its capacity as the Authority to carry out the housing functions previously performed by the Agency and the CDC acting in its capacity as the Agency: (a) The real property which is the subject of this Resolution consists of the real property located in the City of National City, County of San Diego, State of California associated with the housing functions previously performed by the Agency and the CDC acting in its capacity as the Agency, including but not limited to the real property described in the Schedule of Real Property (Attachment No. 1) (collectively, the "Real Property"); and (b) The other assets which are the subject of this Resolution consist of the leases, promissory notes, agreements and other rights to receive payment of funds and/or other consideration associated with the housing functions previously performed by the Agency and the CDC acting in its capacity as the Agency, including but not limited to the leases, promissory notes and agreements described in the Schedule of Other Assets (Attachment No. 2), all cash accounts, records, reports, files, furniture, fixtures, equipment and all other tangible and intangible personal property associated with the housing functions previously performed by the Agency and the CDC acting in its capacity as the Agency (collectively, the "Other Assets"). 4. The Board of Directors of the CDC acting in its capacity as the Authority hereby approves of and accepts an assignment by the Successor Agency to the CDC acting in its capacity as the Authority, of the Successor Agency's rights and obligations under any and all agreements associated with the housing functions previously performed by the Agency and the CDC acting in its capacity as the Agency, including but not limited to the agreements described in the Schedule of Obligations (Attachment No. 3) (collectively, the "Obligations"). Provided however, that the Successor Agency shall not be released from any of its monetary obligations under any of the Obligations and the Successor Agency and its successors and assigns, including voluntary successors, involuntary successors and any person or entity deemed to be a successor by operation of law shall remain liable for all payments due and owing under the Obligations and all costs arising from or associated with the implementation of the Obligations, including the administrative costs of the Authority and the CDC acting in its capacity as the Authority in amounts that are not disproportionate to the costs of carrying out the Obligations. Resolution No. 2012 — June 19, 2012 Page Four 5. The Executive Director, or his/her designee, of the CDC acting in its capacity as the Authority is hereby authorized and directed to take all reasonable and necessary actions and sign on behalf of the CDC acting in its capacity as the Authority all reasonable and necessary documents, including without limitation assignment and assumption agreements, first approved in writing by the CDC General Counsel to implement and carry out the transfer of the Real Property, Other Assets, and Obligations from the Successor Agency to the CDC acting in its capacity as the Authority. 6. The Secretary and/or the Executive Director, or their designees, of the CDC acting in its capacity as the Authority are hereby authorized and directed to execute the Certificates of Acceptance of the deeds for the transfer of ownership of the Real Property from the Successor Agency to the CDC acting in its capacity as the Authority upon their preparation and subject to prior written approval of the CDC General Counsel. The Executive Director, or his/her designee, of the CDC acting in its capacity as the Authority, is hereby authorized and directed to take all reasonable and necessary actions to establish and implement appropriate procedures to obtain the Successor Agency's payment of the costs of the Authority and the CDC acting in its capacity as the Authority of carrying out the Obligations, including administrative costs in amounts that are not disproportionate to the costs of carrying out the Obligations. 8. This Resolution shall take effect immediately upon its adoption. PASSED and ADOPTED this 19th day of June, 2012. Ron Morrison, Chairman ATTEST: Leslie Deese, Secretary APPROVED AS TO FORM: Claudia Gacitua Silva General Counsel ITEM #31 6/1g/12 NOTICE INVITING RESPONSE TO STATEMENT OF INTEREST AND QUALIFICIATIONS « CALIFORNIA -. �a cis Ilajg SOIQ 12-13 NATIONAL CITY BAYFRONT MARINA DISTRICT VISION PLAN DEVELOPMENT OPPORTUNITY The San Diego Unified Port District and the City of National City jointly seek submissions of qualifications from real estate development firms interested in developing available acres in the National City Bayfront Marina District. Parties interested in obtaining a copy of this SOIQ may do so by downloading the solicitation from the District website, http://vendors.planetbids.com/SDUPD/bidsearch4.cfm. Questions regarding this SOIQ should be directed to the District's Customer Service Center at (619) 686-6200. 1/22 REQUEST FOR STATEMENT OF INTEREST AND QUALIFICATIONS (SOIQ) SOIQ 12-13 NATIONAL CITY BAYFRONT MARINA DISTRICT VISION PLAN DEVELOPMENT OPPORTUNITY +». CALIFORNIA ••+ PO RT GENERAL SERVICES AND PROCUREMENT SAN DIEGO UNIFIED PORT DISTRICT Procurement Services Section 1400 Tidelands Avenue National City, California 91950 IF YOU DID NOT DOWNLOAD, OR DIRECTLY RECEIVE THIS DOCUMENT FROM THE PORT OF SAN DIEGO WEBSITE AT WWW.PORTOFSANDIEGO.ORG, YOU ARE NOT LISTED AS AN OFFICIAL DOCUMENT HOLDER FOR THIS SOLICITATION AND WILL NOT BE NOTIFIED BY THE PORT OF ADDENDA ISSUED. YOU MUST ACKNOWLEDGE ANY ADDENDA ISSUED IN YOUR SUBMITTAL OR RISK BEING CONSIDERED NON RESPONSIVE. PLEASE BE SURE TO VISIT THE WEBSITE ABOVE TO REGISTER AS A DOCUMENT HOLDER FOR THIS SOLICITATION. ALL INQUIRIES REGARDING THIS SOIQ SHALL BE DIRECTED TO: Matt Earle, Contract Administrator Phone: (619) 686-6336 mearle@portofsandiego.org Key SOIQ Dates Issued: June 18, 2012 Submit SOIQ by: August 21, 2012 Submit SOIQ Processing Fee by: August 28, 2012 Projected Board Approval: By the end of 2012 2/22 REQUEST FOR STATEMENT OF INTEREST AND QUALIFICATIONS (SOIQ) SOIQ 12-13 National City Bayfront Marina District Vision Plan Development Opportunity TABLE OF CONTENTS 1. Introduction Page 1 II. SOIQ Services Page 1 III. Instructions to Developers Page 4 IV. SOIQ Format and Content Page 7 V. Developer's Minimum Qualifications Page 9 VI. Evaluation and Selection Page 9 Vil. Protests Page 10 Attachment A Attachment B Attachment C Attachment D Attachment E Attachment F Attachment G Attachment H ATTACHMENTS Green Port Policy Port Lessee Questionnaire National City Vision Plan- Project Design Consultants San Diego Unified Port District- Staff Report San Diego Unified Port District- Resolution San Diego Unified Port District — Meeting Minutes City of National City- Staff Report City of National City- City Council Meeting Minutes 3/22 1. INTRODUCTION A. District Background The San Diego Unified Port District (commonly referred to as the "District") is a public benefit corporation established in 1962 by an act of the California State legislature and ratified by the voters of the five member cities of the District. The enabling legislation and subsequent amendments conveyed certain tide and submerged lands within San Diego Bay and the oceanfront within the City of Imperial Beach to a District administration to further the development of commerce, navigation, fisheries and recreation on behalf of the state of California, which owns these lands. The lands are conveyed to the District as a trustee of the state. The District's five member cities are Chula Vista, Coronado, Imperial Beach, National City and San Diego. The District's jurisdiction covers waterfront property within these cities and approximately 2,500 acres of land and 3,400 acres of water. Additional information about the District can be found by visiting its web site at http://www.portofsandiego.orq B. City Background The City of National City ("City") is a municipal corporation that was incorporated on September 17, 1887 and is the second oldest city in the County of San Diego. National City is located 5 miles south of downtown San Diego, on San Diego Bay in southern San Diego County, and 10 miles north of Baja California, Mexico. The City is bordered by the City of San Diego to the north and east, the City of Chula Vista to the south, unincorporated areas of San Diego County to the south and southeast, and San Diego Bay to the west. The City encompasses 9.2 square miles with a land area of 7.3 square miles and a population of 58,580 (2010 Census). Additional information about the City of National City can be found by visiting its web site at http://www.ci.national-city.ca.us/ 11. SOIQ SERVICES: A. Project Background In cooperation, the District and the City procured third party consultants to develop a joint vision plan (Attachment C) to further enhance the Marina District area of the National City bayfront. The study area totals approximately 108 acres. The study analyzed the development and Page 1 of 21 4/22 redevelopment potential of the Marina District and identified opportunities to compliment and draw from the successes of the recent developments, while protecting adjacent maritime industrial uses. Over the years, there has been significant cooperation between the City of National City and the San Diego Unified Port District in terms of planning, implementing, and funding a variety of projects within the study area including Pepper Park, Pier 32 Marina, the Marina Gateway development, improvements along Marina Way and Bay Manna Drive, and a new aquatic center. To compliment these efforts, there is a desire to re -designate portions of the study area from an industrial use to a commercial use. Through Public outreach and participation (including Stakeholder interviews and Public workshops), and input both from the District and the City, certain areas in the vision plan have been identified for potential redevelopment. B. Project Location The study area for the vision plan is generally bounded by Paradise Marsh, Marina Way, and Interstate 5 on the east; 22nd Street, 23`d Street, and Bay Marina Drive on the north; Tidelands Avenue on the west; and the Sweetwater River Flood Control Channel on the south. This area totals approximately 108 acres. The San Diego Unified Port District Board of Commissioners approved the re -development of 20 acres (Attachment D & E). The City Council of the City of National City directed staff to work with the Port District to seek qualified developers for the implementation of the Vision Plan. (Attachment F & G). C. Guiding Site Development Regulations Changes in current land -use may require amendments to existing regulatory documents such as the Port Master Plan, National City Local Coastal Program, Harbor District Specific Area Plan, etc. to implement. These subsequent implementation actions will require environmental review pursuant to CEQA. Dependent on the scope of the proposed project, mitigation measures may be required to ensure no net loss of maritime industrial land. The implementation of the preferred land use altemative (or any part thereof) may require a combination of any of the following or similar actions and/or compliance, as well as other discretionary actions not specifically listed below. Page 2 of 21 5/22 1. Port Act & Port Master Plan a. The allowable uses of Port Tidelands are governed by the Port Act of 1962. (http://www.portofsandiego.orq/public- documents/doc view/721-port-act.html). This legislation specifies general allowable uses of Tidelands under the Public Trust Doctrine. The California State Lands Commission provides oversight of the District's compliance with the Port Act. b. The District has a Tong -range, comprehensive Port Master Plan for all of Tidelands, as required by the California Coastal Act and the Port Act (http://www.portofsandiego.orq/component/docman/doc download/ 1112-port-master-plan.html ) 2. The California Coastal Act a. District Tidelands are further regulated by Chapter 3 and Chapter 8 of the California Coastal Act (http://www.coastal.ca.qov/ccatc.html). 3. California Environmental Quality Act a. The proposed Project will undergo environmental review by District Staff. 4. City Of National City a. Portions of the Vision Plan Study Area are governed by the National City General Plan, Harbor District Specific Area Plan, Land Use Code (Zoning), and Local Coastal Program. National City is responsible for issuing building permits for the project area, and also provides police and fire service for this area under contract to the District. Developers should expect to negotiate any special conditions or development impact fees directly with the City of National City. 5. Roads and Utilities a. Bay Marina Drive provides access to nearby Interstate 5. Bay Marina Drive is accessed by Marina Way, which borders the proposed development area(s). Page 3 of 21 6/22 6. Public Outreach a. The District and the City are committed to an open dialogue with community stakeholders regarding development on Port properties. The selected Developers of the Project will be expected to conduct an extensive public outreach program to obtain stakeholder support for the project. The Developers should expect to prepare and implement an outreach program to address the following groups; • National City Chamber of Commerce • National City community groups • Local Environmental Groups • Environmental Health Coalition • The Working Waterfront - The San Diego Port Tenants Association III. INSTRUCTIONS TO DEVELOPERS A. Examination of SOIQ Documents 1. By submitting an SOIQ, the Developer represents that it has thoroughly examined and become familiar with the work required under this SOIQ, and that it is capable of performing quality work to achieve the District's and City's objectives. B. Electronic Submission of SOIQ 1. All Developers are required to submit their proposals electronically via the electronic eBid system where this SOIQ was downloaded. The electronic system will close the submission submittal period at the exact date and time set forth in this SOIQ or as changed by addenda. An electronic copy of the firm's proposal must be attached to the electronic system. The maximum size of an electronically submitted SOIQ is limited to 50MB. Developers are responsible for submitting and having their submittal accepted before the closing time set forth in this SOIQ or as changed by addenda. NOTE: Pushing the submit button on the electronic system may not be instantaneous; it may take time for the Developer's documents to upload and transmit before the proposal is accepted. It is the Developer's sole responsibility to ensure their document(s) are uploaded, transmitted, and arrive in time electronically. The District will have no responsibility for proposals that do not arrive in a timely manner, no matter what the reason. Page 4of21 7/22 C. Required Documents 1. The submittal shall contain the following items in order and placed at the front of the submitted proposal: a. Response Cover Letter (including Developers Registration and Authorized Signature information). 2. The District will conduct a preliminary review of the submittals to determine if the above items and copies are included as required in the SOIQ. If a submittal does not include all items fully completed, the submittal may be considered non responsive. D. Response Cover Letter: 1. The Developer shall submit a response cover letter that summarizes why the Developer believes they should be selected by the District for development of a Project for the District. 2. The District has implemented an Enterprise Wide software program that has a Developer registration component. All Developers are encouraged to register and any Developers doing business with the District are required to register. To register with the District as a Developer, please visit our website, www.portofsandiego.orq/vendors. For questions and/or comments, please contact the District's Purchasing Department at 619-686- 6392. Developers are to indicate compliance in their Response Cover Letter. 3. The Developer shall provide in the Response Cover Letter the name of the authorized representative who has the authority to enter into a binding agreement and authorize changes to the scope, terms, and conditions of the agreement if selected. The information should include: Name and Title, Name of Firm, Address, City, State, Zip, Telephone number, Fax number, and E-Mail address. E. Withdrawal of SOIQ 1. A Developer may withdraw their SOIQ before the expiration of the time for submission of SOIQ by deleting the uploaded SOIQ from the electronic eBid system where the SOIQ was downloaded. Page 5 of 21 8/22 F. Rights of District 1. This SOIQ does not commit the District to enter into an Agreement, nor does it obligate the District to pay for any costs incurred in preparation and submission of SOIQ or in anticipation of an Agreement. District may investigate the qualifications of any Developer under consideration, require confirmation of information furnished by the Developer, and require additional evidence or qualifications to perform the Services described in this SOIQ. 2. District reserves the right to: a. Reject any or all SOIQ. b. Issue subsequent Requests for SOIQ. c. Postpone opening for its own convenience. d. Remedy technical errors in the Request for SOIQ process. e. Waive informalities and irregularities in SOIQ. G. Additional Requirements 1. SOIQ Processing Fee a. To be considered for participation in this SOIQ, Developers must submit their qualifications (including qualifications of their development team), together with a SOIQ processing fee of $250 in the form of a cashier's check. Cashier's checks should be submitted to Matt Earle, Contracts Supervisor, Port of San Diego, General Services and Procurement Department 1400 Tidelands Ave., National City 91950. SOIQ Processing Fee Payments should be made out to the San Diego Unified Port District. b. The SOIQ Processing Fee is due no later than 5:00 PM one week (7 days) after the due date for the SOIQ. 2. SOIQ Schedule a. District and City staff will analyze the qualifications submittals and present a short list of qualified developers at the next available meeting of the Board of Port Commissioners. Those developers may be asked to make a short presentation. At that time staff will recommend that the Board select one or more developers to proceed with project proposals. When the Board selects the developer(s), it may authorize entering into an Exclusive Negotiating Agreement (ENA) with the selected developer for a period of approximately 90 days. At that time Page 6 of 21 9/22 the selected developer will be required to submit an additional $ 1,000 ENA processing fee. During the ENA, the terms of the Option to Lease Agreement and Lease(s) would be negotiated. The selected developer's purchase price to be paid to the District for the Option will be determined by the Board, in an amount up to an additional $50,000. The Board reserves the right to replace the selected developer if, in the Board's sole discretion, circumstances warrant it. b. During the term of the Option to Lease, the selected developer would finalize construction plans, obtain all required development permits, obtain project financing, negotiate construction contracts, and, if applicable, enter into a management agreement, as conditions precedent to the exercise of the Option. c. The requirements and selection process are described in the following pages. To receive consideration by the District, a developer must have completed at least one project in the last five years that is similar in size, value, and/or scope to development of the project. All pertinent information and material submitted by each developer will be analyzed and, where appropriate, independently verified by the District. Inaccurate, incomplete, or unresponsive statements by a developer may lead to the submittal being determined to be non -responsive. d. Please note that the information stated is only an overview of the process leading to selection of a developer and the qualifications requirements that are known to the District at this time. As additional information becomes available, changes' to' the "requirements may occur in the sole and absolute discretion of the District. You will be kept apprised of all material changes to the requirements. IV. SOIQ FORMAT AND CONTENT A. Format 1. Developers shall include the required items stated in Section III Instructions to Developers, Submission of SOIQ. 2. SOIQ shall be typed and be: 1) as brief as possible, and 2) not include any unnecessary promotional material. Page 7 of 21 10/22 3. For ease of handling, it is requested that standard 8 -1/2 x 11" paper be used with the simplest possible method of fastening (except that paper clips shall not be used), considering the size of the SOIQ. 4. The nature and form of response are at the discretion of those responding, but shall include the information listed below. Content 1. a. Description of Past Similar Projects. The SOIQ should contain general descriptions of similar previous projects which the Developer would propose for this location including: land use zoning, type of operation, rough order of magnitude cost, revenue, other benefit to the community, and financing. Developer should describe their land -use expertise, and how previous projects and developer specific experience can enhance and add value to the proposed re- development site(s). b. Description of Proposed Conceptual Project. The SOIQ should contain a brief conceptual description of proposed project for the sites identified by the Developer, which should include: • Business Plan • Estimated pre -entitlement costs • Estimated construction costs • Pro -forma 2. Profile of Firm/Team. This section shall include a brief description of the firm's size as well as the local organizational structure including ownership percentage breakdown. Include a discussion on the firm's financial stability, capacity and resources. Additionally, this section shall include a listing of any regulatory violation, lawsuit or litigation and the result of that action resulting from (a) any public project undertaken by the Developer or by its subcontractors where litigation is still pending or has occurred within the last five years or (b) any type of project where claims or settlements were paid by the Developer or its insurers within the last five years. 3 Qualifications of the Firm/Team. This section shall include a brief description of the Developer's qualifications, resumes, and previous notable local developments. Description of pertinent project experience shall include a summary of the work performed, the total project cost, the percentage of work the firm was responsible for, the period over which the work was completed, and the name, title, and phone number of clients to be contacted for references. Give a brief statement of the firm's adherence to the schedule and budget for each project. Page 8 of 21 11/22 V. DEVELOPER'S MINIMUM QUALIFICATIONS A. The Developer shall have sufficient demonstrative experience in and comprehensive knowledge of the development of complex, public/private partnership real estate projects for District and/or other Public Entities as described in the Scope of Services. VI. EVALUATION AND SELECTION A. Evaluation Criteria / Matrix: The following criteria and matrix shall be used to evaluate SOIQ: 1. EXPERIENCE OF PROPOSED TEAM MEMBERS: Experience of project team with similar scope of services. Years firm has been performed similar types of projects. Level of education, training, licensing. 2. APPROACH TO THE SOIQ: Demonstrated understanding of the District and National City's needs and solicitation requirements. Approach is well organized and presented in a clear, concise and logical manner. Availability and proposed use of technology. Milestone and deliverables are well defined. Quality control and thoroughness is well defined. 3. CAPABILITY TO PERFORM: Ability to complete work within required time. Availability and continuity of team during the course of the project. Does the proposed team have the resources to complete the project. COST AND PRICE: Does the proposed team have the financial capability to execute the development of the project. Was financial supporting documentation provided to review the proposed team commitment to the District and National City's project. FIRM/TEAM'S RELEVANT EXPERIENCE: Experience in performing similar scope of services for organization of similar size to the District. Experience with public agencies. Years of experience with the type of project. 6. PROJECT CONFORMITY WITH PORT ACT AND PORT MASTER PLAN; Does the Project conform with land use requirements for maritime industrial land use and allowable land use under the Port Act Page 9 of 21 12/22 7. GREEN PORT GOAL ATTAINMENT Does the Project provide a meaningful benefit to the local and regional environment, and the Project provide a net reduction in non-renewable energy use for the District. EVALUATION CRITERIA WEIGHT A FirmScoBe Scrm ore I Total LTotal"FirmSco I Total EXPERIENCE OF PROPOSED TEAM MEMBERS 5 APPROACH TO THE SOIQ 5 CAPABILITY TO PERFORM 8 COST AND PRICE 5 FIRM/TEAM'S RELEVANT EXPERIENCE 10 CONFORMITY WITH PORT MASTER PLAN 10 GREEN PORT GOAL ATTAINMENT 7 TOTALS Evaluation Procedure 1. A Review Board, generally made up of District staff, City staff, and third party experts, will review the SOIQ submitted, establish a list of finalists based on pre -established review criteria, and may interview the finalist firms. The names of the Review Board members are not revealed prior to the interviews. The individual or composite rating and evaluation forms prepared by Review Board members will not be revealed. C. Award 1. When the Review Board has completed its work, the Review Board will recommend the Developer(s) to the Board who may then select the Developer(s) to conduct presentations and/or enter into an ENA for the development of Options to lease. VII. PROTESTS 1. Prior to the dosing date for submittal of SOIQ, Developer may submit to District protests regarding the procurement process, or alleged improprieties in specifications or alleged restrictive specifications. Any such protests shall be filed no later than 10 working days prior to the scheduled closing date. If necessary, the closing date of the solicitation may be Page 10 of 21 13/22 extended pending a resolution of the protest. Protests dealing with alleged improprieties in the procurement or the procurement process that can only be apparent after the closing date for receipt of SOIQ shall be filed within 5 working days of issuance of the Notice of Recommended Award. Protests shall contain a statement of the grounds for protests and supporting documentation. Protestor will be notified of District's final decision prior to issuance of Award. 2. A Developer may discuss the Procurement Documents with District. Such discussions, however, do not relieve Developers from the responsibility of submitting written protests as required. 3. Developers requests and protests shall be addressed to: San Diego Unified Port District, Attn: Ralph Oliver, Procurement Manager, P.O. Box 120488, San Diego, CA 92112-0488. Page 11 of 21 14/22 ATTACHMENT A San Diego Unified Port District GREEN PORT POLICY SUBJECT: GREEN PORTENVIRONMENTAL SUSTAINABILITY POLICY PURPOSE: To establish a policy for the integration of overarching environmental sustainability principles and initiatives to guide business decisions, development and operations within the San Diego Unified Port District's jurisdiction. POLICY STATEMENT: The Board of Port Commissioners (BPC) is dedicated to protecting and improving the environmental conditions of San Diego Bay and the tidelands. Additionally, the BPC is committed to conducting District operations and managing resources in an environmentally sensitive and responsible manner. To that end, the BPC has created this Green PortEnvironmental Sustainability Policy, which is focused on incorporating a balance of environmental, social and economic concerns into operations on San Diego Bay and the tidelands. For the purposes of this Policy, environmental sustainability is defined as the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs. It is commonly measured in terms of environmental stewardship, social responsibility and economic prosperity. The following mission and objectives have been developed to guide business decisions in adherence to the Green PortEnvironmental Sustainability Policy. MISSION: Provide leadership by minimizing environmental impacts from operations on tidelands and ensure a thriving community where people and the environment prosper. OBJECTIVES: To effectively administer the Green PortEnvironmental Sustainability Policy, the District will strive to: • Minimize, to the extent practicable, environmental impacts directly attributable to operations on San Diego Bay and the tidelands. • Strengthen the District's financial position by maximizing the long-term benefits of energy and resource conservation. • Prevent pollution and improve personal, community, and environmental health. • When possible, exceed applicable environmental laws, regulations and other industry standards. • Ensure a balance of environmental, social and economic concerns are considered during planning, development and operational decisions. • Define and establish performance -driven environmental sustainability objectives, targets and programs. • Monitor key environmental indicators and consistently improve performance. • Foster socially and environmentally responsible behavior through communications with employees, tenants, stakeholders and the community. • Collaborate with tenants to develop an integrated, measurable, Bay -wide environmental sustainability effort. RESOLUTION NUMBER AND DATE: 2008-183, dated September 2, 2008 (Supersedes BPC Policy 736, Resolution 2007-213, dated December 11, 2007) Page 12 of 21 15/22 ATTACHMENT B San Diego Unified Port District PORT LESSEE QUESTIONNAIRE This attachment is available for download from the same location as this SOIQ Page 13 of 21 16/22 ATTACHMENT C San Diego Unified Port District NATIONAL CITY VISION PLAN - PROJECT DESIGN CONSULTANTS This attachment is available for download from the same location as this SOIQ Page 14 of 21 17/22 ATTACHMENT D San Diego Unified Port District SAN DIEGO UNIFIED PORT DISTRICT - STAFF REPORT This attachment is available for download from the same location as this SOIQ Page 15 of 21 18/22 ATTACHMENT E San Diego Unified Port District SAN DIEGO UNIFIED PORT DISTRICT — RESOLUTION This attachment is available for download from the same location as this SOIQ Page 16 of 21 19/22 ATTACHMENT F San Diego Unified Port District SAN DIEGO UNIFIED PORT DISTRICT- BOARD OF PORT COMMISSIONERS MEETING MINUTES This attachment is available for download from the same location as this SOIQ Page 17 of 21 20/22 ATTACHMENT G San Diego Unified Port District CITY OF NATIONAL CITY — STAFF REPORT This attachment is available for download from the same location as this SOIQ Page 18 of 21 21/22 ATTACHMENT H San Diego Unified Port District CITY OF NATIONAL CITY - CITY COUNCIL MEETING MINUTES This attachment is available for download from the same location as this SOIQ Page 19 of 21 22/22 ITEM #32 6/19/12 VERBAL UPDATE ON AMORTIZATION SCHEDULE AND DIRECTION FOR PUBLIC PARTICIPATION (REDEVELOPMENT) ITEM #33 6/19/12 CLOSED SESSION REPORT (CITY ATTORNEY)