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HomeMy WebLinkAbout2012 10-30 CC HA ADJ AGENDA PKTAgenda of An Adjourned 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 — October 30, 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 concerns in this community. Your participation in local government will assure a responsible and efficient City of National City. We invite you to bring to the attention of the City Manager/Executive Director any matter that you desire the City Council 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 interpretacibn en espano/ se proporciona durante sesiones del Consejo Municipal Los audibfonos estbn 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 PRESENTATIONS 10/30/12 - Page 2 1. SANDAG Regional Plan and Public Involvement Programs (Elisa Arias, SANDAG) 2. Citywide Safe Routes to School Education & Encouragement Initiative (Engineering/Rady Children's Hospital) CONSENT CALENDAR Consent Calendar: Consent calendar items involve matters, which are of a routine or noncontroversial nature. All consent calendar items are adopted by approval of a single motion by the City Council. Prior to such approval, any item may be removed from the consent portion of the agenda and separately considered, upon request of a Councilmember, a staff member, or a member of the public. 3. Approval of the Minutes of the Regular Meeting of the City Council and Community Development Commission - Housing Authority of the City of National City of October 16, 2012. (City Clerk) 4. Approval of a motion to waive reading of the text of the Ordinances considered at this meeting and provides that such Ordinances shall be introduced and/or adopted after a reading of the title only. (City Clerk) 5. Resolution of the City Council of the City of National City authorizing the Mayor to execute and submit Program Supplement Agreement No. 008-N to the State of California Department of Transportation to encumber $900,000 in Federal Highway Safety Improvement Program (HSIP) funding for construction of safety enhancements on E. 8th Street, between "K" Avenue and Palm Avenue. (Development Services/Engineering) 6. Resolution of the City Council of the City of National City authorizing the installation of red curb "No Parking" along the west side of the 2200 and 2300 blocks of Euclid Avenue to improve visibility at driveways and provide clearance from parked vehicles (referenced from TSC Item No. 2012-24). (Development Services/Engineering) National City City Council /Community Development Commission/Housing Authority 10/30/12 - Page 3 CONSENT CALENDAR (Cont.) 7. Resolution of the City Council of the City of National City authorizing the Mayor to execute an Amendment to the Community Development Block Grant Subrecipient Agreement between the City of National City and the Sweetwater Union High School District for the Sweetwater High School Joint -Use Multi - Purpose Field and Athletic Facility Improvement Project requiring the expenditure of all grant funds by March 31, 2013 and extending the date of completion for said Project to June 30, 2014. (Housing and Grants) 8. Resolution of the City Council of the City of National City authorizing the Mayor to execute an Agreement between the City of National City and the Sweetwater Union High School District for the Joint -Use of a Multi -Purpose Field and Athletic Facility located at Sweetwater Union High School in the City of National City. (Housing and Grants) 9. Resolution of the City Council of the City of National City approving the terms and conditions of the San Diego Habitat for Humanity Acquisition -Rehabilitation for Homeownership Program and authorizing the Mayor to execute a HOME Community Housing Development Organization Funding Agreement between the City of National City and San Diego Habitat for Humanity Community Housing Corporation, Inc. for the construction and/or rehabilitation of single- family residential housing in the City of National City. (Housing and Grants) 10. Resolution of the City Council of the City of National City authorizing staff to waive the formal bid process and authorize the Mayor to sign a 5-year Agreement between the City of National City and San Diego Sports Medicine and Family Health Center for Wellness Program Services. (Fire) 11 Resolution of the City Council of the City of National City authorizing the Mayor to execute a Second Amendment to the Lease Agreement between the City of National City and American Digital Outdoor, L.P. to allow for a possible north face to previously approved signage on a parcel of land at the end of the 30th Street cul-de-sac. (City Manager) National City City Council /Community Development Commission/Housing Authority 10/30/12 - Page 4 CONSENT CALENDAR (Cont.) 12. Resolution of the City Council of the City of National City authorizing the Mayor to execute a Third Amendment to the Agreement for Legal Defense Services by Best Best & Krieger, LLP, for the Community Youth Athletic Center legal challenge defense to increase the not to exceed amount by $45,000 for a total amoung of $409.000. (City Attorney) 13. WARRANT REGISTER #14 Warrant Register #14 for the period of 09/26/12 through 10/02/12 in the amount of $2,312,841.74. (Finance/Administrative Services) ORDINANCE FOR ADOPTION 14. An Ordinance of the City Council of the City amending Title 18 (Zoning) of the National City Municipal Code by amending Section 18.30.320 pertaining to pawn shops and businesses engaged in secondhand dealing and/or the purchase and selling of gold and other precious metals. (Applicant: City Initiated) (Case File #2012-18 A) (Planning) NEW BUSINESS 15. Request to initiate a Street Vacation to vacate a portion of an alley between 11th and 12th Streets, east of National City Blvd. as part of the Revolution 2 project. (Applicant: The Focus Group) (Case File No. 2012-16 SC) (Planning) 16. Presentation by GB Capital Holdings, LLC and their submittal to the Port District issued Statement of Interest and Qualifications (SOIQ) for implementation of the Marina District Vision Plan. Request for direction and consider endorsement of the submittal. (Planning) COMMUNITY DEVELOPMENT COMMISSION — HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY NO ITEMS National City City Council /Community Development Commission/Housing Authority 10/30/12 - Page 5 STAFF REPORTS 17. Verbal report on an opportunity to partner with Olivewood Gardens to apply for a grant offered by the San Diego Foundation to transform `Butterfly Park" into a community gathering place. (Community Services) 18. Verbal update on Automated External Defibrillator (AED) installations. (Fire) 19. Verbal update on 4th and Highland (Fire) 20. Verbal report on paperless agenda. (Administrative Services) 21. Closed Session Report. (City Attorney) MAYOR AND CITY COUNCIL ADJOURNMENT Regular City Council/Community Development/Housing Authority of the City of National City Meeting — Tuesday — November 20, 2012 — 6:00 p.m. - Council Chambers — National City, California. (PLEASE SEE ATTACHED MODIFIED CITY COUNCIL MEETING SCHEDULE) COPIES OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY MEETING AGENDAS AND MINUTES MAY BE OBTAINED THROUGH OUR WEBSITE AT www.natlonalcitvca.aov OFFICE OF THE CITY CLERK 1243 National City Blvd. National City, California 91950 Michael R. Dalla, CMC - City Clerk 619-336-4228 phone / 619-336-4229 fax September 24, 2012 TO: The Mayor and Members of the City Council FROM: Michael Dalla, City Clerk SUBJECT: City Council Meeting Schedule — October 2012 through January 2013 The upcoming November Municipal Election and the City Council approved work furlough and holidays will result in a modified meeting schedule for the period of October 2012 through January 2013. It is recommended that the City Council approve the following meeting schedule in order to permit proper planning and advance notice to the public. • October 16 Regular Meeting • October 30 Adjourned Regular Meeting • November 06 Election Day (no meeting) • November 20 Regular Meeting • December 04 Regular Meeting • December 18 Regular Meeting • January 01 Holiday (no meeting) • January 15 Regular Meeting ITEM #1 10/30/12 SANDAG REGIONAL PLAN AND PUBLIC INVOLVEMENT PROGRAMS (ELISA ARIAS, SANDAG) ITEM #2 10/30/12 CITYWIDE SAFE ROUTES TO SCHOOL EDUCATION & ENCOURAGEMENT INITIATIVE (ENGINEERING/RADY CHILDREN'S HOSPITAL) ITEM #3 10/30/12 APPROVAL OF THE MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION - HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY OF OCTOBER 16, 2012 (CITY CLERK) City of National City Office of the City Clerk 1243 National City Boulevard, National City, CA 91950-4397 Michael R. Dalla, CMC - City Clerk (619). 336-4228 Fax: (619) 336-4229 To: Honorable Mayor and Council From: Michael R. Dalla, City Clerk Subject: Ordinance Introduction and Adoption ITEM #4 10/30/12 It is recommended that the City Council approve the following motion as part of the Consent Calendar: "That the City Council waive reading of the text of all Ordinances considered at this meeting and provide that such Ordinances shall be introduced and/or adopted after a reading of only the title." Recycled Paper CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT IAEETING DATE: October 30, 2012 AGENDA ITEM NO. 5 ITEM TITLE: Resolution of the City Council of the City of National City authorizing the Mayor to execute and submit Program Supplement Agreement No. 008-N to the State of California Department of Transportation to encumber $900,000 in Federal Highway Safety Improvement Program (HSIP) Funding for construction of safety enhancements on E. 8th Street between "K" Avenue and Palm Avenue PREPARED BY: Stephen Manganiello, City Engineer PHONE: 619-336-4382 APPROVED BY: Engineering EXPLANATION: Execution of the Program Supplement Agreement is required for use of Federal HSIP grant funds for construction of the project. DEPARTMENT: Development Services / FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: 296-409-500-598-6165: $900,000 (Federal HSIP Grant — 8th Street) ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Adopt the Resolution. BOARD / COMMISSION RECOMMENDATION: N/A 4TTACHMENTS: 1. Resolution 2. Program Supplement Agreement RESOLUTION NO. 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE AND SUBMIT PROGRAM SUPPLEMENT AGREEMENT NO. 008-N TO THE STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION TO ENCUMBER $900,000 IN FEDERAL HIGHWAY SAFETY IMPROVEMENT PROGRAM FUNDING FOR CONSTRUCTION OF SAFETY ENHANCEMENTS ON E. 8TH STREET BETWEEN "K" AVENUE AND PALM AVENUE WHEREAS, on June 18, 2008, Caltrans awarded a $900,000 Federal Highway Safety Improvement Program Grant (the "Grant") for construction of safety enhancements on East 8th Street between "K" Avenue and Palm Avenue (the "Project"); and WHEREAS, to satisfy the Grant requirements, a Program Supplement Agreement must be executed and submitted by the Mayor. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute and submit Program Supplement Agreement No. 008-N to the State of California Department of Transportation to encumber $900,000 in Federal Highway Safety Improvement Program Grant funding for construction of safety enhancements on East 8th Street between "K" Avenue and Palm Avenue. Said Program Supplement Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 30th day of October, 2012. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney STATE OF CALIFORNIA . BUSINESS,TRANSPORTATION AND HOUSING AGENCY RECEIVED OCT 1 5 am EDMUND G. BROWN Jr. Govemor DEPARTMENT OF TRANSPORTATION Division of Local Assistance 1120 N STREET P.O. BOX 942874, MS# 1 Sacramento, CA 94274-0001 TTY 711 (916) 654-3151 Fax (916) 653-7621 October 9, 2012 Ms. Leslie Deese City Manager City of National City 1243 National City Boulevard National City, CA 91950 Attn: Mr. Stephen Manganiello Dear Ms. Deese: Enclosed are two originals of the Program Supplement Agreement No. Agreement No. 11-5066R. Please note that federal funding will be lost if you proceed with future the "Authorization to Proceed" with that phase. File : 11-SD-0-NATC HSIPL-5066(016) E. 8th St. Between K Ave. and Palm Ave. and at the Intersection of E 8th st. and L Ave. 008-N to Administering Agency -State phase(s) of the project prior to getting Please review the covenants and sign both copies of this Agreement and return both to this office, Office of Project Implementation - MS1 within 60 days from the date of this letter. If the signed Agreements are not received back in this office within 60 days, funds will be disencumbered and/or deobligated. Alterations should not be made to the agreement language or funding. Attach your local agency's certified authorizing resolution that clearly identifies the project and the official authorized to execute the agreement. A fully executed copy of the agreement will be returned to you upon ratification by Caltrans. No invoices for reimbursement can be processed until the agreement is fully executed. A copy of the State approved finance letter containing the fund encumbrance and reversion date information will be mailed to you with your copy of the executed agreement. Your prompt action is requested. If you have questions, please contact your District Local Assistance Engineer. Sincerely, BARRY LEAMING, Chief / Office of Project Implementation - South Division of Local Assistance Enclosure c: DLA AE Project Files (11) DLAE - Erwin Gojuangco " PROGRAM SUPPLEMENT NO. N008 to ADMINISTERING AGENCY -STATE AGREEMENT FOR FEDERAL -AID PROJECTS NO 11-5066 Adv Project ID 1100020439 Date: Location: Project Number: E.A. Number: Locode: September 19, 2012 11-SD-0-NATC HSIPL-5066(016) 11-956548 5066 This Program Supplement hereby adopts and incorporates the Administering Agency -State Agreement for Federal Aid which was entered into between the Administering Agency and the State on 05/02/07 and is subject to all the terms and conditions thereof. This Program Supplement is executed in accordance with Article I of the aforementioned Master Agreement under authority of Resolution No. approved by the Administering Agency on (See copy attached). The Administering Agency further stipulates that as a condition to the payment by the State of any funds derived from sources noted below obligated to this PROJECT, the Administering Agency accepts and will comply with the special covenants or remarks set forth on the following pages. PROJECT LOCATION: E. 8th St. Between K Ave. and Palm Ave. and at the Intersection of E 8th st. and L Ave. TYPE OF WORK: Construct Medians, turn lanes, roadway widening, traffic signals and LENGTH: 0.0(MILES) beacons, and sidewalks Estimated Cost Federal Funds Matching Funds $1,230,000.00 LS3E $900,000.00 LOCAL $330,000.0 OTHER $1 CITY OF NATIONAL CITY By Title Date Attest STATE OF CALIFORNIA Department of Transportation By Chief, Office of Project Implementation Division of Local Assistance Date I hereby certify upon my personal knowledge that budgeted funds are available for this encumbrance: �^�' Ia�'11Z Accounting Officer • Q, ; 0 1 Date $900.000.00 Chapter Statutes Item Year Program BC Category Fund Source AMOUNT Program Supplement 11-5066-N008- ISTEA Page 1 of 3 STATE OF CALIFORNIA. DEPARTMENT OF TRANSPORTATION PROGRAM SUPPLMENT AND CERTIFICATION FORM PSCF (REV. 01/2010) Pape _ of _ TO: STATE CONTROLLER'S OFFICE Clalns Audits 3301 "C" Street, Rm 404 Sacramento, CA 95616 DATE PREPARED: 10/1/2012 PROJECT NUMBER: 1100020439 REQUISITION NUMBER / CONTRACT NUMBER: RQS-2660-111300000093 FROM: Department of Transportation SUBJECT: Encumbrance Document VENDOR / LOCAL AGENCY: CITY OF NATIONAL CITY CONTRACT AMOUNT: $900,000.00 PROCUREMENT TYPE: Local Assistance CHAPTER 33 STATUTES 2011 ITEM 2660-102-0890 YEAR 2011-2012 PEC/PECT 2030010550 TASK /SUBTASK 26200420 AMOUNT 900,000.00 ADA Notit For Individuals with sensory disabilities, this document is available in alternate formats. For information, call (915) 654-6410 of TDD (916) -3880 or write Records and Forms Management, 1120 N. Street, MS-89, Sacramento, CA 95814. 11-51)-0-NATC HSIPL-5066(016) 09/19/2012 SPECIAL COVENANTS OR REMARKS 1. The ADMINISTERING AGENCY will advertise, award and administer this project in accordance with the current published Local Assistance Procedures Manual. 2. ADMINISTERING AGENCY agrees that it will only proceed with work authorized for specific phase(s) with an "Authorization to Proceed" and will not proceed with future phase(s) of this project prior to receiving an "Authorization to Proceed" from the STATE for that phase(s) unless no further State or Federal funds are needed for those future phase(s). 3. ADMINISTERING AGENCY agrees, as a minimum, to submit invoices at least once every six months commencing after the funds are encumbered for each phase by the execution of this Project Program Supplement Agreement, or by STATE's approval of an applicable Finance Letter. STATE reserves the right to suspend future authorizations/obligations for Federal aid projects, or encumberances for State funded projects, as well as to suspend invoice payments for any on -going or future project by ADMINISTERING AGENCY if PROJECT costs have not been invoiced by ADMINISTERING AGENCY for a six-month period. If no costs have been invoiced for a six-month period, ADMINISTERING AGENCY agrees to submit for each phase a written explanation of the absence of PROJECT activity along with target billing date and target billing amount. ADMINISTERING AGENCY agrees to submit the final report documents that collectively constitute a "Report of Expenditures" within one hundred eighty (180) days of PROJECT completion. Failure of ADMINISTERING AGENCY to submit a "Final Report of Expenditures" within 180 days of PROJECT completion will result in STATE imposing sanctions upon ADMINISTERING AGENCY in accordance with the current Local Assistance Procedures Manual. 4. The Administering Agency shall not discriminate on the basis of race, religion, age, disability, color, national origin, or sex in the award and performance of any Federal - assisted contract or in the administration of its DBE Program Implementation Agreement. The Administering Agency shall take all necessary and reasonable steps under 49 CFR Part 26 to ensure nondiscrimination in the award and administration of Federal -assisted contracts. The Administering Agency's DBE Implementation Agreement is incorporated by reference in this Agreement. Implementation of the DBE Implementation Agreement, including but not limited to timely reporting of DBE commitments and utilization, is a legal obligation and failure to carry out its terms shall be treated as a violation of this Agreement. Upon notification to the Administering Agency of its failure to carry out its DBE Implementation Agreement, the State may impose sanctions as provided for under 49 CFR Part 26 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq.). 5. As a condition for receiving federal -aid highway funds for the PROJECT, the Program Supplement 11-5066-N008- ISTEA Page 2 of 3 11 S D-O-NATC HSIPL-5066(016) SPECIAL COVENANTS OR REMARKS 09/19/2012 Administering Agency certifies that NO members of the elected board, council, or other key decision makers are on the Federal Government Excluded Parties List System (EPLS). 6. Any State and Federal funds that may have been encumbered for this project are available for disbursement for limited periods of time. For each fund encumbrance the limited period is from the start of the fiscal year that the specific fund was appropriated within the State Budget Act to the applicable fund Reversion Date shown on the State approved project finance letter. Per Government Code Section 16304, all project funds not liquidated within these periods will revert unless an executed Cooperative Work Agreement extending these dates is requested by the ADMINISTERING AGENCY and approved by the California Department of Finance. ADMINISTERING AGENCY should ensure that invoices are submitted to the District Local Assistance Engineer at least 75 days prior to the applicable fund Reversion Date to avoid the lapse of applicable funds. Pursuant to a directive from the State Controller's Office and the Department of Finance; in order for payment to be made, the last date the District Local Assistance Engineer can forward an invoice for payment to the Department's Local Programs Accounting Office for reimbursable work for funds that are going to revert at the end of a particular fiscal year is May 15th of the particular fiscal year. Notwithstanding the unliquidated sums of project specific State and Federal funding remaining and available to fund project work, any invoice for reimbursement involving applicable funds that is not received by the Department's Local Programs Accounting Office at least 45 days prior to the applicable fixed fund Reversion Date will not be paid. These unexpended funds will be irrevocably reverted by the Department's Division of Accounting on the applicable fund Reversion Date. 7. Award information shall be submitted by the ADMINISTERING AGENCY to the District Local Assistance Engineer within 60 days of project contract award and prior to the submittal of the ADMINISTERING AGENCY'S first invoice for the construction contract. Failure to do so will cause a delay in the State processing invoices for the construction phase. Please refer to Section 15.7 "Award Package" of the Local Assistance Procedures Manual. Program Supplement 11-5066-N008- ISTEA Page 3 of 3 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: October 30, 2012 AGENDA ITEM NO. 6 ITEM TITLE: Resolution of the City Council of the City of National City authorizing the installation of red curb "No Parking" along the west side of the 2200 and 2300 blocks of Euclid Avenue to improve visibility at driveways and provide clearance from parked vehicles (referenced from TSC Item No. 2012-24) PREPARED BY: Stephen Manganiello, City Engineer DEPARTMENT: Development Services / PHONE: 619-336-4382 APPROVED BY: Engineering EXPLANATION: See attached. FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Adopt the Resolution BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: 1. Explanation 2. Resolution Explanation At the City Council meeting of October 2, 2012, the City Council considered a request for installation of red curb "No Parking" at the driveway to 2320 Euclid Avenue to provide clearance from parked vehicles. This was the Traffic Safety Committee's recommendation from the meeting held on September 12, 2012. City staff's recommendation was to install red curb "No Parking" at all of the driveways along the west side of the 2200 block of Euclid Avenue to improve visibility for drivers exiting the driveways. After discussion from residents, Councilmembers and staff, Council directed staff to assess the extent of red curb that could be provided at all of the driveways along the west side of the 2200 and 2300 blocks of Euclid Avenue, without the Toss of parking. Concerns were raised from Councilmembers regarding consistency of red curb installation at these driveways. Based on comments from residents, City Council also directed staff to identify any visibility issues related to overgrown shrubs or trees. At the City Council meeting of October 16, 2012, staff presented a revised exhibit with measurements for existing and proposed red curb, and remaining on -street parking (see attached exhibit). The minimum required length for an on -street parallel parking space is.20 feet. As illustrated in the exhibit, this proposal would not result in the Toss of any on -street parking spaces. All parking spaces will be delineated with striping. Based on the follow-up site visit, staff did not notice any shrubs or trees blocking visibility. Staff will however, continue to monitor conditions related to safety and visibility and coordinate with property owners to ensure shrubs and trees are properly maintained. Any overgrown vegetation in the public right of way will be trimmed by City Public Works. Following staff's presentation and discussion, Council directed staff to return on October 30, 2012 with a resolution reflecting the proposed improvements. Said Resolution is attached. If approved, City Public Works will install the red curb and parking space striping. Proposed Improvements 10["t1 LEGEND ICM (, Red Curb "No Parking" (measurements Include Y for driveway wings) Available Parking - spaces will be delineated with striping ONSTREET PARKING CALCULATIONS Existing Spaces = 15 Proposed Spaces a 15 Net Loss e 0 RESOLUTION NO. 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE INSTALLATION OF RED CURB "NO PARKING" ALONG THE WEST SIDE OF THE 2200 AND 2300 BLOCKS OF EUCLID AVENUE TO IMPROVE VISIBILITY FOR DRIVERS AT EXISTING DRIVEWAYS, AND PROVIDE CLEARANCE FROM PARKED VEHICLES WHEREAS, a resident and member of the Homeowners Association at 2320 Euclid Avenue requested red curb "No Parking" at the driveway to the housing complex to improve visibility for drivers exiting the driveway when vehicles park on the west side of Euclid Avenue; and WHEREAS, upon inspection, staff observed similar conditions at each of the private driveways to the north, ending at East 22nd Street, and recommends the installation of red curb "No Parking" along the west side of the 2200 block of Euclid Avenue to improve visibility for drivers exiting private driveways; and WHEREAS, at its meeting on September 12, 2012, the Traffic Safety Committee approved staff's recommendation; and WHEREAS, after discussions between residents, councilmembers, and City staff at the October 2, 2012 City Council meeting, the City Council directed staff to assess the extent of red curb that could be provided at all of the driveways along the west side of the 2200 and 2300 blocks of Euclid Avenue without the loss of parking; and WHEREAS, at the October 16, 2012 City Council meeting, staff present a revised exhibit with measurements for existing and proposed red curb, and the remaining on -street parking, and proposed a plan to install red curb "No Parking" along the west side of the 2200 and 2300 blocks of Euclid Avenue without the loss of parking. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the installation of red curb "No Parking" along the west side of the 2200 and 2300 blocks of Euclid Avenue to improve visibility for drivers exiting driveways, and provide clearance from parked vehicles, consistent with the exhibit presented by staff at the October 16, 2012 City Council meeting. PASSED and ADOPTED this 30th day of October, 2012. Ron Morrison, Mayor ATTEST: APPROVED AS TO FORM: Michael R. Dalla, City Clerk Claudia Gacitua Silva City Attorney CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: October 30, 20121 AGENDA ITEM NO.7 ITEM TITLE: Resolution of the City Council of the City of National City authorizing the Mayor to execute an amendment to the Community Development Block Grant Subrecipient Agreement between the City of National City and the Sweetwater Union High School District for the Sweetwater High School Joint -Use Multi -Purpose Field and Athletic Facility Improvement Project requiring the expenditure of all grant funds by March 31, 2013 and extending the date of completion for said Project to June 30, 2014 PREPARED BY: Carlos Aguirre; - - DEPARTMENT: Housing and Grants PHONE: 619-336-43911 APPROVED-h EXPLANATION: In May of 2010 the City of National City granted $200,000 to the Sweetwater Union High School District ("District") to renovate the football field at Sweetwater Union High School. The centerpiece of the facility would be a synthetic turf multi -sport field. Since 2010, the District has applied for several other funding sources to leverage City and District funds including a $200,000 grant from the San Diego Chargers and $700,000 from the Community Sports Development Council. The remaining gap to build the $2.2 million facility has been committed from District Proposition 0 bond funds. The grant agreement term lapsed on June 30, 2012 and additional time is needed to complete the project. The contract amendment requires that the CDBG funds committed be fully expended by March 31, 2013 to insure the timely expenditure of the grant funds but the District would have until June 30, 2014 to complete the project. Construction of the facility is planned to begin in the second quarter of 2013 and the CDBG funds awarded will be used to cover eligible project -related costs. The District's CDBG grant application pledged that the facility would be accessible to the community of National City. The City and School District have developed a joint -use agreement that would facilitate public access to the facility. FINANCIAL STATEMENT: ACCOUNT NO. APPROVED: APPROVED: Finance MIS Upon adoption of the resolution, a total of $200,000 of CDBG entitlement funds will be budgeted for the project under account no. 301-409-000-650-9155 in FY2013 ENVIRONMENTAL REVIEW: The project has been determined to be exempt from NEPA review.] ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: ;Adopt the resolution. BOARD / COMMISSION RECOMMENDATION: Not applicable to this report. ATTACHMENTS: Attachment No. 1 Commitment Letter and Board Actions of Sweetwater Union High School District Attachment No. 2 First Amendment to the CDBG Subrecipient Agreement RESOLUTION NO. 2012- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE AN AMENDMENT TO THE COMMUNITY DEVELOPMENT BLOCK GRANT ("CDBG") SUBRECIPIENT AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND THE SWEETWATER UNION HIGH SCHOOL DISTRICT FOR THE SWEETWATER HIGH SCHOOL JOINT -USE MULTI -PURPOSE FIELD AND ATHLETIC FACILITY IMPROVEMENT PROJECT REQUIRING THE EXPENDITURE OF ALL GRANT FUNDS BY MARCH 31, 2013, AND EXTENDING THE DATE OF COMPLETION FOR SAID PROJECT TO JUNE 30, 2014 WHEREAS, on July 1, 2010, the City of National City entered into a CDBG Subrecipient Agreement ("Agreement") with the Sweetwater Union High School District in the amount of $200,000 to redevelop the multi -sport athletic field at Sweetwater High School as a joint -use project ("Project") with the City of National City for the benefit of both students and the National City community; and WHEREAS, the Agreement term ended on June 30, 2012, and the project has not been completed due to ongoing efforts by the District to apply, secure, and leverage other grant sources for the Project; and WHEREAS, to complete the said construction Project, the Sweetwater Union High School District required an extension of the term of the Subrecipient Agreement through June 30, 2014; and WHEREAS, to insure the timely expenditure of CDBG funds committed to the project, the City is requiring that up to $200,000 of CDBG funds be expended on said Project by March 31, 2013, on any eligible project -related cost. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute an Amendment to the CDBG Subrecipient Agreement with the Sweetwater Union High School District requiring the expenditure of all grant funds by March 31,2013, and extending the term of the Agreement to June 30, 2014 for the completion of the Project. Said Amendment to Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 30th day of October, 2012. Ron Morrison, Mayor ATTEST: APPROVED AS TO FORM: Michael R. Dalla, City Clerk Claudia Gacitua Silva City Attorney Attachment No. 1 SWEET WATER UNION HIGH SCHOOL DISTRICT PLANNING AND CONSTRUCTION 1130 fifth Avenue • Chula Vista, CA 91911-2896 (619) 691-5553 • FAX (619) 420-0339 pa u I.wo o dssweelwate rschools. org PAUL D. WOODS DIRECTOR OF PLANNING & CONSTRUCTION June 26, 2012 Carlos Aguirre Community Development Specialist 11 City of National City - Housing and Grants 1243 National City Blvd. National City, CA 91950 Re: Sweetwater High School Artificial Track and Field Mr. Aguirre: This letter is to confirm that on November 14, 2011, the Board of Trustees for the Sweetwater Union High School District authorized the Sweetwater Union High Artificial Track and Field Project. The Board acknowledged funding from the City of National City ($200,000), the San Diego Chargers ($200,000), and an agreement with The Community Sports Development Council that will provide a value of approximately $700,000. The Board committed to funding the remainder of the $2.2 million budget from Proposition 0 funds. Si Paul D. Woods Director of Planning & Construction. PDW/ac Maximizing student achievement for 7th —12ffi grade students and adult learners throughout South San Diego County "The Sweetwater Union High School District does not discrintinaie with regard to sex, sexual orientation, gender, ethnic group identification, race, ancestry, national origin, religion, color, mental disability, or physical disability, age, marital or parental status or any other unlawful consideration." SUHSD Board Policy 12224 BoardDocs® Pro Page 1 of 1 Attachment No. 1 Agenda Item Meeting Category Subject Type Fiscal Impact SWEEIWAATER UNION HIGH SCHOOL DISTRICT Details Nov 14, 2011 - Regular Board Meeting - 6:00 p.m. M. Planning and Facilities Discussion Items 8. Authorize staff to procure consultants necessary for the planning, design, and construction of the SUH Artificial Track and Field Project and authorize consulting contracts to be ratified. (F/I: $1,100,000, Prop O.) Action (Consent) Yes Issue: Authorize the SUH Artificial Track and Field Project. Superintendent's Recommendation: Authorize staff to procure consultants necessary for the planning, design, and construction of the Sweetwater Union High School Artificial Track and Field Project and authorize consulting contracts to be ratified, notwithstanding Administrative Regulation 3600. Analysis: Three donations have been secured for installing an artificial track and field at Gail Devers Stadium at Sweetwater Union High School. The district has received a $200,000 commitment from the City of National City, a $200,000 NFL commitment from the San Diego Chargers, and a commitment for 70 percent of the synthetic turf field (approximately $700,000) from the Community Sports Development Council. The project would include grading, drainage, irrigation, new artificial track, new synthetic turf football field, and any accessibility upgrades required by the Division of State Architect. Recommended budget: $0.2 million City of National City $0.2 million San Diego Chargers $0.7 million The Community Sports Development Council (estimate) $0.9 million Prop 0 $0.2 million 10% Contingency from Prop 0 $2.2 million Total Budget Fiscal Impact: Expenditure of up to $1,100,000.00, to be paid from the Proposition 0 Fund. 56. Item M-8 - 11 14 11.MP3 (1.283 KB) 58. Item M-8 - 11 14 11.MP3 (507 KB) 60, Item M-8 - 11 14 11.MP3 (608 KB) 57. Item M-8 - 11 14 11.MP3 (830 KB) 59. Item M-8 - 11 14 11.MP3 (1.136 KB1 61. Item M-8 - 11 14 11.MP3 (122 KB) http://boarddocs.suhsd.k12.ca.us/Board.nsf/Public 4/30/2012 Attachment No. 1 SWEETWATER OFFICE OF THE BOARD OF TRUSTEES UNION HIGH SCHOOL DISTRICT 1130 FIFTH AVENUE CHULA VISTA, CALIFORNIA 91911 (619) 565-4405 FAX: (619) 407-4980 ITEM #M-8. BOARD EXCERPT Authorize staff to procure consultants necessary for the planning, design, and construction of the Sweetwater Union High School Artificial Track and Field Project and authorize consulting contracts to be ratified, notwithstanding Administrative Regulation 3600. Kathleen Cheers and Stewart Payne spoke in opposition to this item. Moved by McCann, seconded by Lopez, with a vote of four yes, one absent (Quinones). STATE OF CALIFORNIA ) SS COUNTY OF SAN DIEGO ) I, John McCann, President of the Board of Trustees of the Sweetwater Union High School District of San Diego County, California do hereby certify that the foregoing is a full, true, and correct copy of a motion passed by the Governing Board of the Sweetwater Union High School District at a regular meeting of said boa+,>^d held on the 14th day of November, 2011. John McCann President, Board of Trustees Attachment No. 2 FIRST AMENDMENT TO COMMUNITY DEVELOPMENT BLOCK GRANT ("CDBG") SUBRECIPIENT AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND SWEETWATER UNION HIGH SCHOOL DISTRICT This First Amendment to the Agreement is entered into this 30th day of October, 2012, by and between the City of National City, a municipal corporation ("the CITY"), and the SWEETWATER UNION HIGH SCHOOL DISTRICT ("the DISTRICT"). RECITALS A. The CITY and DISTRICT entered into a Community Development Block Grant ("CDBG") Subrecipient Agreement on July 1, 2010, ("the Agreement") wherein funding will provide for eligible project -related pre -construction and construction costs on the Sweetwater High School Joint -Use Multi -Purpose Field and Athletic Facility Improvement Project. B. The parties desire to amend the Agreement to extend the term of the Agreement from June 30, 2012, to June 30, 2014. C. The CITY desires to amend the Agreement to require that up to $200,000 (TWO HUNDRED THOUSAND AND 0/100 DOLLARS) be expended on the project -related costs no later than March 31, 2013 in order to meet CDBG grant program timeliness requirements. All claims for said funds must be submitted to the CITY with paid invoices and acceptable documentation showing proof of capital outlay (transfer of funds) on project -related costs by April 15, 2013 in order to be eligible for reimbursement. NOW, THEREFORE, the parties hereto agree that the Agreement entered into on July 1, 2010, shall be amended by requiring the expenditure of granted funds by March 31, 2013 and extending the term of the Agreement to June 30, 2014. The parties further agree that with the foregoing exception, each and every term and provision of the Agreement dated July 1, 2010, shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written. --- Signature Page to Follow -- Attachment No. 2 CITY OF NATIONAL CITY SWEETWATER UNION HIGH SCHOOL DISTRICT By: By: Ron Morrison Dr. Edward Brand Its: Mayor Its: Superintendant By: Thomas Calhoun Its: Chief Facilities Officer APPROVED AS TO FORM: Claudia G. Silva City Attorney CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: October 30, 2012 AGENDA ITEM NO. ITEM TITLE: Resolution of the City Council of the City of National City authorizing the Mayor to execute an agreement between the City of National City and the Sweetwater Union High School District for the Joint -Use of a Multi -Purpose Field and Athletic Facility located at Sweetwater Union High School in the City of National City PREPARED BY: Carlos Aguirre; . DEPARTMENT: Housing._ Grants PHONE: (619)i336-4391 �` APPROVED -T 1 )L. EXPLANATION: In May of 2010 the City of National City granted $200,000 to the Sweetwater Union High School District ("District") to renovate the football field at Sweetwater Union High School. The centerpiece of the facility would be a synthetic turf multi -sport field. Since 2010, the District has applied for several other funding sources to leverage City and District funds including a $200,000 grant from the San Diego Chargers and $700,000 from the Community Sports Development Council. The remaining gap to build the $2.2 million facility has been committed from District Proposition 0 bond funds. The District's CDBG grant application pledged that the facility would be accessible to the community of National City. The City and District have developed a joint -use agreement that would facilitate City and public access and outline the roles and responsibilities of the District and City of National City. Per the agreement, the facility would be exclusively managed by the District but the City would be entitled with up to 150 hours of use annually with no facility use fee or charge for a term of ten years. The agreement would also provide for access to individual users when not in use by the District or reserved for other community events. The District would also prioritize activities for National City youth when scheduling facijty reservations.', FINANCIAL STATEMENT: APPROVED: () Finance ACCOUNT NO. ! APPROVED: MIS There is no fiscal impact to the City of National City by executing the Joint -Use Agreement. ENVIRONMENTAL REVIEW: rThe project has been determined to be exempt from NEPA review. j ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt the resolution. BOARD / COMMISSION RECOMMENDATION: Not applicable to this report. ATTACHMENTS: lAttachment No. 1 Joint -Use Agreement with Exhibits RESOLUTION 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND SWEETWATER UNION HIGH SCHOOL DISTRICT FOR THE JOINT -USE FIELD AND ATHLETIC FACILITY LOCATED AT SWEETWATER UNION HIGH SCHOOL IN THE CITY OF NATIONAL CITY WHEREAS, the City of National City awarded Two -Hundred Thousand Dollars ($200,000) of federal Community Development Block Grant ("CDBG") entitlement funds from the U.S. Department of Housing and Urban Development to the Sweetwater Union High School District ("District") to renovate and further develop a District -owned multi -purpose field and athletic facility located at Sweetwater Union High School (the "Facility"); and WHEREAS, the development of the Facility has been determined to meet the funding eligibility requirement under the CDBG National Objective of serving low- and moderate income persons as an area benefit activity as described under Title 24 of the Code of Federal Regulations Part 570.208(a)(1)(i); and WHEREAS, the CDBG Program requires that public facility improvements funded create a suitable living environment and provide accessibility and availability to low- and moderate- income persons of National City; and WHEREAS, Chapter 5, Division 1, of Title 1 Government Code of the State of California (Section 6500 et. seq.) authorizes the governing bodies to enter into agreements with each other to promote the health and general welfare of the community and collaborate to enhance the recreational opportunities afforded to the children in the community; and WHEREAS, the City has determined that an agreement for use of the Facility by the City, and possible third parties and individual users (referred to herein as "Joint -Use"), will further insure accessibility and availability to the community, particularly to low- and moderate - income residents of National City. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of National City authorizes the Mayor to execute a Joint -Use Agreement between the City of National City and the Sweetwater Union High School District for the Joint -Use of a Multi -Purpose Field and Athletic Facility located at Sweetwater Union High School in the City of National City. PASSED and ADOPTED this 30th day of October, 2012. Ron Morrison, Mayor ATTEST: APPROVED AS TO FORM: Michael R. Dalla, City Clerk Claudia Gacitua Silva City Attorney Attachment No. 1 AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND THE SWEETWATER UNION HIGH SCHOOL DISTRICT FOR THE JOINT USE OF A MULTI -PURPOSE FIELD AND ATHLETIC FACILITY LOCATED AT SWEETWATER UNION HIGH SCHOOL IN NATIONAL CITY, CALIFORNIA Recitals WHEREAS, the City of National City ("City") awarded Two -Hundred Thousand Dollars ($200,000) of federal Community Development Block Grant ("CDBG") entitlement funds from the U.S. Department of Housing and Urban Development to the Sweetwater Union High School District ("District") to renovate and further develop a District -owned multi -purpose field and athletic facility located at Sweetwater Union High School ("Facility"); WHEREAS, the development of the Facility has been determined to meet the funding eligibility requirement under the CDBG National Objective of serving low- and moderate income persons as an Area benefit activity as described under Title 24 of the Code of Federal Regulations Part 570.208(a)(1)(i); and WHEREAS, the CDBG Program requires that public facility improvements funded create a suitable living environment and provide accessibility and availability to low- and moderate - income persons of National City; and WHEREAS, Chapter 5, Division 1, of Title 1 Government Code of the State of California (Section 6500 et. seq.) authorizes the governing bodies to enter into agreements with each other to promote the health and general welfare of the community and collaborate to enhance the recreational opportunities afforded to the children in the community; and WHEREAS, the City has determined that an agreement for use of the Facility by City, possible third parties and individual users will further insure accessibility and availability to the community, particularly to low- and moderate -income residents of National City (referred to herein as "Joint -Use"); and NOW, THEREFORE, the District and the City agree to cooperate with each other as follows: 1. Term of Joint -Use This Agreement will continue for a period of ten (10) years from the Effective Date. 2. Effective Date This Agreement shall be effective 30 days after the filing of a notice of completion with the County of San Diego. Page 1 of 9 Attachment No.1 3. Facilities covered The term "Facility" will be used for purposes of this Agreement to mean the designated fields and amenities specified under Exhibit "A". 4. Permitted Uses of the Facility a. District Use The District shall be entitled to the exclusive use of the Facility for public school and school -related educational and recreational activities, including summer school, and, at such other times as the Facility is being used by the District or its agents. If the District reserves only a portion of the Facility for District Activities, and the remaining portion of the Facility remains available for use, the City or third party users shall have the right to use the remaining non -reserved portion of the Joint Facilities for the purposes set forth in this Agreement, provided that the use of the Facility will not conflict or unreasonably interfere with District's Activities at the Facility. b. Public Access Hours The periods of use of the Facility by the City, third parties, and individuals during daylight hours shall be referred to as Public Access Hours. During unreserved daylight hours, the City, third parties authorized by the District, and individual users will be entitled access to and use of Facility. The District shall enforce all District rules, regulations, and policies provided by the District for community recreational activities at the Facility. In planning programs and scheduling activities on school grounds, the security, academic, athletic, and recreational needs and opportunities of school -aged children will be the highest priority and be adequately protected. i. City Use The City will have priority over third party and individual users to use the Facility. The City is entitled to exclusively use the Facility for up to 150 hours annually with no facility use fee or charge as further explained under Section 9(d) and 9(e) of this Agreement. ii. Third -Party Use All third -party use of the Facility shall be subject to all District rules, regulations, and policies. Third parties will have no specific rights or benefits under this agreement. There is no guarantee of usage by any third party. District will create and maintain an annual calendar for the tracking of the Facility's use hereinafter referred to as the "Master Calendar." District shall, however, make good faith efforts to allow third party usage of the Facility as prioritized below and available on the Master Calendar. Fees may be charged to third party users by the District for community recreational and educational purposes for the benefit of City residents and the public at large. The City's obligations under this Agreement shall also apply to third parties using the Facility. The District shall be responsible for ensuring third parties comply with all obligations under this Agreement when using the Facility. The City and the District agree that in providing Page 2 of 9 Attachment No.1 access to the Facility for use other than by the District or the City, the following priorities for use shall be established: Priorities of Use (in the event multiple applications are received for the same date and time): Priority 1 District Events Priority 2 City Events Priority 3 Third Party Use Sub -Priority 1 Sub -Priority 2 Sub -Priority 3 Activities for National City youth National City adult programs or activities Other youth and adult programs or activities iii. Individual Use Hours National City residents shall be entitled to the use of the Facility during daylight hours on weekdays, weekends and school holidays as long as their use does not interfere with use by the District, its agents, the City or third -party users that have reserved the Facility for programmed activities. The Public Access Hours available for individual use during unreserved daylight hours are hereinafter referred to as "Individual Use Hours." The District will post signage near facility entrances stating the rules for individual use and manage access to the facility. The bleacher stands will not be available for individual use. The District is not responsible for having restrooms or on -site parking available during Individual User Hours. 5. Compliance with Law All use of District property shall be in accordance with state and local law. In the case of a conflict between the terms of this Agreement and the requirements of state law, the state law shall govern. Any actions taken by the District or the City that are required by state law, but are inconsistent with the terms of this Agreement shall not be construed to be a breach or default of this Agreement. The District is responsible for the construction, design, and legal compliance of the Facility. All new construction and/or modifications of public facilities financed all or in part by CDBG funds shall comply with all applicable minimum requirements as delineated in the Uniform Federal Accessibility Standards (UFAS) as enforced by the Division of State Architect (DSA). 6. Communication a. Designation of Employees as Authorized Representatives The District and the City shall respectively designate an employee with whom the other party, or any authorized agent of the party, may confer regarding the terms of this Agreement. Page 3 of 9 Attachment No.l The designated Authorized Representative for the District is: Chief Facilities Executive Sweetwater Union High School District 1130 Fifth Ave Chula Vista, CA 91911 The designated Authorized Representative for Scheduling is: Assistant Principal (ASB) Sweetwater Union High School 2900 Highland Ave National City, CA 91950 The designated Authorized Representative for the City is: Parks Superintendent Public Works Department City of National City 2100 Hoover Avenue National City, CA 91950 The Authorized Representatives of the District and the City can meet from time to time, and at least once annually, to recommend rules and regulations for the District and the City to adopt to implement this Agreement, to monitor and evaluate the joint -use Facility and Agreement, and to confer to discuss interim problems during the term of the Agreement. if upon change of the designated authorized representatives each party will provide notice at least 30 days in advance by mail. 7. Scheduling the Property a. Master Calendar The District shall manage the Master Calendar for joint use of the Facility to allocate property use to the District, the City and third parties. The City designated staff will review and evaluate the status and condition of jointly used facility and Master Calendar on an annual basis and more frequently if necessary. b. Scheduling of District Property The District shall be responsible for scheduling third -party use of District property using the priorities established in section 4(b) ii. With the exception of application and facility use fee waivers as described in section 9(d) in this agreement for City Events, the use of District facilities shall be in accordance with the most recent regular procedures of the District for granting permits for the use of school facilities, as set forth in the District policy for Joint -Use Facility, governing the Facility, attached hereto as Exhibit "B". To the extent of this Agreement conflict with the Policy for Joint Use Facility terms, the terms of this Agreement control. Page 4 of 9 Attachment No.1 8. Tracking Use of Facility The District shall track use of the Facility under this Agreement and shall keep on file the Master Calendar for the previous five years. 9. Fees and Charges a. Fees The District may charge fees to third -party users of the Facility to cover any administrative and maintenance costs which the District may incur. Any fees and costs shall be assessed according to District policy. b. Documentation of Fees The District shall maintain records of fees collected under this Agreement. c. Reasonability of Fees Reasonable fees may be charged for the use of the Facility, but charges such as excessive membership fees, which will have the effect of precluding low- and moderate -income persons from using the facilities, are not permitted. d. Application and Fee Waiver for City Event Hours The City is entitled to exclusively use the Facility for up to 150 hours annually with no facility use fee or charge hereinafter referred as "City Event Hours," and any events held during the City Event Hours will be hereinafter referred to as "City Events." The City is responsible for submitting a facilities use request annually and providing insurance as required by District policy. City Events must be reserved on the Master Calendar at least 30 days in advanced and will be subject to availability. Acknowledging a City Event on the calendar constitutes a full reservation. City events listed on the calendar will not require an application or permit for the Facility other than the annual application. District events take precedent over City Events. However, if the District approves a City Event date it cannot cancel the reservation of the City Event to accommodate for a District event not previously approved and noted on the Master Calendar. e. Promotion of City Event Hours The District will provide the City with promotional consideration of City Events by allowing information to be posted on the main campus marquee and assisting with the distribution of fliers and information to students, parents, and faculty. 10. Improvements The City shall not have the authority to request alterations, additions, or improvements to the Facility. 11. Supplies The City shall furnish and supply all expendable materials necessary to carry out City Events while using the Facility. Page 5 of 9 Attachment No.1 12. Maintenance, Custodial Services, and Toilet Facilities a. Maintenance The District shall be responsible for the regular maintenance, repair, and upkeep of the Facility. b. !Custodial The District shall make its trash receptacles available during City and third party use of the Facility. The District shall encourage community users to dispose of trash in the trash receptacles during use of the Facility. City and Third -Party Users will be responsible for removal of trash from the facility after their events. c. Restroom Facilities The District shall maintain access to restroom facilities during all Public Access Hours. The District may, at its discretion, close access to restroom facilities and require the placement temporary, portable, restrooms at the Facility during City and third party use. It shall be the responsibility of the registered user to maintain these temporary facilities. 13. Parking The District is not required to provide off-street parking during Individual Use Hours. The District's permit for use will specify access to off-street parking for City and third party events . 14. Restitution and Repair The District shall be wholly responsible to repair, remediate, or fund the replacement or remediation of any and all damage or vandalism to the Facility that occurs during Public Access Hours. The District will reserve the right restrict Individual Use Hours for a 12 month period anytime within the teen of the agreement after the City accepts evidence provided by the School District that damage in excess of $10,000 was caused by individuals using the Facility during Individual Use Hours. If damage caused by individual users exceeds $200,000, and the City consents that the damage was caused by individual users during Individual Use Hours, the District reserves the right to restrict Individual Use Hours for the remainder of the Term. 15. Liability and Indemnification a. The City shall defend, indemnify, and hold the District, its officers, employees and agents, harmless from and against any and all liability, loss, expense, attorneys' fees, or claims for injury or damages, arising out of the performance of this Agreement, but only in proportion to and to the extent such liability, loss, expense, attorneys' fees, or claims for injury are caused by or result from the negligent or intentional acts or omissions of the City, its officers, agents, or employees. b. The District shall defend, indemnify, and hold the City, its officers, employees and agents, harmless from and against any and all liability, loss, expense, attorneys' fees, or claims for injury or damages, arising out of the performance of this Agreement, but only Page 6 of 9 Attachment No.1 in proportion to and to the extent such liability, loss, expense, attorneys' fees, or claims for injury are caused by or result from the negligent or intentional acts or omissions of the District, its officers, agents, or employees. 16. Insurance The District agrees to provide the following insurance to the City in connection with this Agreement on an annual basis for the length of the Term for Joint -Use: a. Commercial general liability insurance, with minimum limits of $3,000,000 per occurrence/$6,000,000 aggregate, covering all bodily injury and property damage arising out of its operations under this Agreement. b. Workers' compensation insurance in an amount sufficient to meet statutory requirements covering all of District's employees and employers' liability insurance with limits of at least $1,000,000 per accident. In addition, the policy shall be endorsed with a waiver of subrogation in favor of the City. Said endorsement shall be provided prior to commencement of work under this Agreement. c. The aforesaid policies shall constitute primary insurance as to the City, its officers and employees, 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. d. Said policies, except for the professional liability and workers' compensation policies, shall name the City and its elected officials, officers, agents and employees as additional insureds, and separate additional insured endorsements shall be provided. e. If required insurance coverage is provided on a "claims made" rather than `occurrence" form, the District shall maintain such insurance coverage for three years after expiration of the term (and any extensions) of this Agreement. In addition, the "retro" date must be on or before the date of this Agreement. f. Any aggregate insurance limits must apply solely to this Agreement. g. Insurance shall be written with only California admitted companies which hold a current policy holder's alphabetic and financial size category rating of not less than A VIII according to the current Best's Key Rating Guide, or a company equal financial stability that is approved by the National City 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. h. 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 National City Risk Manager. If the District does not keep all of such insurance policies in full force and effect at all times during the terms of this Agreement, the City may elect to treat the failure to maintain the requisite insurance as a breach of this Agreement and terminate the Agreement as provided herein. i. A11 deductibles and self -insured retentions in excess of $10,000 must be disclosed to and approved by the City. 17. Termination This Agreement may not be terminated, except by written instrument executed and approved in the same manner as this Agreement. Page 7 of 9 Attachment No.1 18. Entire Agreement This Agreement constitutes the entire understanding between the parties with respect to the subject matter and supersedes any prior negotiations, representations, agreements, and understandings. 19. Amendments This Agreement may not be modified, nor may compliance with any of its terms be waived, except by written instrument executed and approved in the same manner as this Agreement. 20. Exhibits The Exhibits attached hereto are hereby incorporated herein by this reference for all purposes. Exhibit "A"- Facility Area Exhibit "B"- District's Use of School Facilities Policy AR 1330(a) Exhibit "C"- District's Artificial Turf Policy AR 1330.1 (a) Exhibit "D"- District's Facility Use Fee Schedule Exhibit "E"- District's Application and Permit for Use of School Facilities and Grounds Exhibit "F"- District's Statement of Information and Hold Harmless Statement Page 8 of 9 Attachment No.1 IN WITNESS WHEREOF, the Parties have executed this contract as of the date this contract is approved by their respective entities. City of National City Sweetwater Union High School District Ron Morrison Its: Mayor APPROVED AS TO FORM Claudia G. Silva City Attorney ATTEST Michael Dalla City Clerk Dr. Edward M. Brand Its: Superintendant Thomas Calhoun Its: Chief Facilities Executive Page 9 of 9 Attachment No. 1 Exhibits Exhibit A: Facility Area Attachment No. 1 Exhibits Exhibit B Community Relations USE OF SCHOOL FACILITIES Definitions AR 1330(a) For purposes of clarity, the following is a brief description of terms for school facilities: School Facilities, hereinafter called Facilities: Includes classrooms, auditoriums, cafeterias, gymnasiums, fields. Multi Purpose Buildings, hereinafter called "MPB's": Includes facilities at schools which have been added/upgraded upon modernization. Performing Arts Centers, hereinafter called "Center(s) ": Includes a full theatre stage, with stage lighting, dressing rooms and green room. Specific guidelines are available for sites with Artificial Turf. Please see AR 1330, Artificial Turf. Application for Use of Facilities Any persons applying for the use of any school facility or grounds on behalf of any society, group, or organization shall present written authorization from the group or organization to make the application. For use of facilities the Form Number 6900, "Application and Permit for Use of School Facilities and Grounds," must be completed, signed, and returned to the school site being requested. A Certificate of Insurance and payment of the fee shall be submitted with the application. For use of an MPB or the Center(s), a "Performing Arts Center, Facilities Use Agreement" Form Number 6901 shall be submitted with a Certificate of Insurance and the fee. For district users only, the "Facility Use Application - District Event", Form Number 6902 shall be submitted. District users will not be required to provide proof of insurance for district -related, sponsored events. Applicants must allow a minimum of two weeks for the district to process and approve applications. Persons or organizations applying for the use of school facilities or grounds shall sign the Statement of Information indicating that the organization upholds the state and federal constitutions and does not intend to use school premises to commit unlawful acts. Civic Center Use Subject to district policies and regulations, school facilities and grounds may be made available to citizens and community groups as a civic center for the following purposes: (Education Code 32282, 38131) Attachment No. 1 Exhibits Exhibit B AR 1330(b) USE OF SCHOOL FACILITIES (continued) 1. Public, literary, scientific, recreational, educational, or public agency meetings 2. The discussion of matters of general or public interest 3. The conduct of religious services for temporary periods, on a one-time or renewable basis, by any church or religious organization that has no suitable meeting place for the conduct of the services, provided the governing board charges the church/religious organization using the school facilities/grounds a fee, at least equal to the district's direct costs 4. Child care programs to provide supervision and activities for children of preschool and elementary school age (cf. 5148 - Child Care and Development) (cf. 5148.2 - Before/After School Programs) (cf. 6300 - Preschool/Early Childhood Education) 5. The administration of examinations for the selection of personnel or the instruction of precinct Board members by public agencies 6. Supervised recreational activities including, but not limited to, sports league activities that are arranged for and supervised by entities, including religious organizations or churches, and in which youths may participate regardless of religious belief or denomination 7. A community youth center (cf. 1020 - Youth Services) 8. Mass care and welfare shelters during disasters or other emergencies affecting the public health and welfare. The board shall grant the use of school building, grounds, and equipment to public agencies, including the American Red Cross, and Registrar of Voters, and shall cooperate in furnishing and maintaining such services as it deems necessary to meet community needs. (cf 0450 - Comprehensive Safety Plan) (cf. 3516 - Emergencies and Disaster Preparedness Plan) 9. A ceremony, patriotic celebration, or related educational assembly conducted by a veterans' organization Attachment No. 1 Exhibits Exhibit B AR 1330(c) USE OF SCHOOL FACILITIES (continued) A veterans' organization means the American Legion, Veterans of Foreign Wars, Disabled American Veterans, United Spanish War Veterans, Grand Army of the Republic, or other duly recognized organization of honorably discharged soldiers, sailors, or marines of the United States, or any of their territories. (Military and Veterans Code 1800) 10. Other purposes deemed appropriate by the Board of Trustees The district may grant the use of school facilities on those days on which the public school is closed, provided school personnel are available to grant access and secure the facility upon completion of the event. (Education Code 37220) (cf 6115 - Ceremonies and Observances) Restrictions School facilities or grounds shall not be used for any of the following activities: 1. Any use by an individual or group for the commission of any crime or any act prohibited by law 2. Any use which is inconsistent with the use of the school facility for school purposes or which interferes with the regular conduct of school or school work 3. Any use which involves the possession, consumption, or sale of alcoholic beverages or any restricted substances, including tobacco use, on school property. Smoking is prohibited on all district properties (cf. 3513.3 - Tobacco -Free Schools) 4. Any use of facilities, MPB's, Center(s), or grounds, for professional carnivals 5. The use of any "rebounding devices," including, but not limited to, Astro Jumps, and attractions with jumping areas and trampolines. 6. Any use of facilities for car washes must strictly adhere to applicable City and County guidelines, and board approved Resolution No. 3526, "Enforcement of a Storm Water Management Plan, Pursuant to the Small Municipal Separate Storm Sewer System Permit Program, July 23, 2006," which ensures the district is in compliance with the Clean Water Act. 7. See AR 1330.1 for additional restrictions on artificial turf field use. Attachment No. 1 Exhibits Exhibit B AR 1330(d) USE OF SCHOOL FACILITIES (continued) 8. Dogs/animals of any kind are prohibited, with the exception of guide, signal or service dogs as defined in the California Civil Code. 9. Only Sweetwater Union High School District employees are to have possession of keys, gaining access to school property. The district may exclude certain school facilities from non -school use for safety or security reasons. Terms of Agreement Once an event is scheduled, the applicant has signed the agreement, and the district has approved the agreement, neither party can modify the agreement without written consent by the other party. The applicant must agree to specific conditions in its use of the district's facilities. Some of these terms apply to all facilities and some terms are limited to specific types of facilities. A district employee must be on duty whenever a building facility is in use, and will be in charge of the facility. A district employee must unlock and lock gates for field use. Any juvenile organization or group seeking use of school premises must have a responsible adult sponsor to sign the application, and said sponsor must be present at all times. If no district employee is available to supervise use of the building facility or open gates on a weekend or holiday, or other day when the school is closed, the district reserves the right to deny use of facility. Applicants must agree to abide by guidelines that the district provides in connection with the use of various types of facilities. Sites may not approve Facility Use Agreements for more than one year. Specific agreements with teams and multi -year agreements shall be approved by the Assistant Superintendent. Cafeterias Applicants requesting use of cafeteria kitchen must have district food service personnel to supervise the activity. The applicant shall responsible for all food service fees. Attachment No. 1 Exhibits Exhibit B AR 1330(e) USE OF SCHOOL FACILITIES (continued) MPB(s) and the Center(s) To protect the safety of patrons and equipment, the district may require applicants to provide certain personnel, including but not limited to, light and sound technicians, backstage crew, house manager, ushers, ticket takers and security, subject to the following requirements: a. The district will determine the number and types of personnel necessary for each event. b. Applicants cannot use their own personnel for an event unless they obtain written permission from the district. Such personnel will be under the general jurisdiction of the responsible district employee. c. Violation of any house rules or regulations may result in the immediate termination of any Facility Use Agreement and may deny the applicant or group further use of the facility. The Center(s) The manager of the Center(s), or his/her designee, shall be on duty whenever the Center(s) is/are used. If at any time the uses of the premises are illegal, unsafe or may cause damage to any district equipment, the applicant shall either cease or desist from continuing such objectionable activity, or surrender the premises forthwith to district designee upon demand. The Performing Arts Center Facility Use Agreement contains further terms and conditions with which applicants must also agree to comply. Scheduling Events at the Center(s) Once a year, the manager of the Center(s) will conduct a master plan scheduling meeting in order to schedule the dates and times for all major building usage by district users, city events, and community events. Fees and Costs Applicants shall provide full payment for all service fees and costs associated with presentation of event at time of application, and pay all royalties payable to writers, directors and choreographers. If a Security Deposit is charged, it shall be in the form of a check, separate from facility use fees. Attachment No. 1 Exhibits Exhibit B AR 1330(f) USE OF SCHOOL FACILITIES (continued) The type of facility and purpose of use will determine the fees that the district will impose. Specifically, use of facilities will fall into one of three categories based on the following terms: Free Use Activities, Direct Cost Activities, and Fair Rental Activities. Any event(s) which require custodian/cafeteria coverage on a district holiday will be charged at 2 '/2 times the stated fee per hour, with a minimum of two hours. For entities outside the community served by the Sweetwater District, direct costs shall be negotiated through the planning department for individual events. The district reserves the right to increase fees at any time, based on the utility rate changes within San Diego County. 1. Free Use Activities The Waiver of Use (Rental) and/or Custodial/Cafeteria (Personnel) Service Fees, Form No. 6903, shall be completed by the group/requestor, and signed by the site, and must be approved by the superintendent or his designee, when waiving fees. See the planning website for Form No. 6903. a. Activities/Groups in this Category: i. Parent -Teacher -Student associations, and school/community advisory councils, school involved functions b. Use Rental Fees: None c. Custodial Fees: None, unless groups prefer to use facilities at a time when custodians must work outside the regular work schedule. If services are required outside of the regularly scheduled work day, the district may charge a fee equal to the direct cost for those services. Custodial fees charged are deposited into the sites ASB Fund. 2. Direct Cost Activities a. Activities/Groups in this Category: i. Activities that promote youth and school interests or that are organized for the benefit of youths, ie: Girl Scouts, Boy Scouts, Camp Fire, Inc., regardless of religious denomination or affiliation. Attachment No. 1 Exhibits Exhibit B AR 1330(g) USE OF SCHOOL FACILITIES (continued) ii. Formal groups that promote any/all youth athletics, including but not limited to: youth soccer, baseball, football teams, YMCA, YWCA, and City/County recreation depa,tuients. iii. Activities other than those specified for "free use" or "fair rental value" shall be charged fees at a rate consistent with the direct cost incurred by the district, such as: religious services, charitable fund raising activities (benefiting public), charitable fund raising activities (benefiting district's schools), or for benefit of non-profit, non-sectarian, non -partisan charitable organizations that are properly chartered by or licensed by state or federal law. iv. School sites may accept additional materials over and above the regular fee schedule, to assist in the maintenance and enhancement of athletic fields/facilities, ie: seed, sod, fertilizer. v. Other activities by non-profit entities that do not meet the definition of "Free Use Activities." vi. Activities by public agencies, unless the district has entered into a joint powers agreement with local public agencies. b. Use Rental Fees: The district will charge for its direct costs in accordance with the Schedule of Fees. c. Custodial Fees: Negotiated by school site ASB Advisor up to the amount in the Facility Use Fee Schedule. Any custodial fees charged are deposited into the sites ASB Fund. 3. Fair Rental Value Activities a. Activities/Groups in this Category: i. Fund-raising, entertainment or meetings/activities for which admission will be charged or contributions will be solicited for non -charitable purposes, or not expended for the welfare of the students of the district. ii. Anytime an admission fee is charged or contributions are solicited for profit making instructional/educational programs. Attachment No. 1 Exhibits Exhibit B AR 1330(h) USE OF SCHOOL FACILITIES (continued) b. Use Rental Fees: The district will charge for the Fair Rental Value of the facility in accordance with the Schedule of Fees. Fair Rental Value includes directs costs, plus the amortized costs of the facilities or grounds used for the duration of the activity. c. Custodial Fees: Negotiated by school site ASB Advisor up to the amount in the Facility Use Fee Schedule. Any custodial fees charged are deposited into the sites ASB Fund. 4. Waiver of Fees The district, at its sole discretion, may elect to waive user fees where there is a compelling benefit to the district and/or community. Any waiver of fees must be approved by the superintendent or his designee. A $500 refundable security deposit is required of all groups requesting a waiver, and retained if the facility is left in an unclean/damaged condition. The Security Deposit shall be in the form of a check, separate from facility use fees and will be placed in the ASB Fund. Facility Use Fees will be placed on the Monthly Principals Report, where custodial fees are deducted. Examples of activities that may be considered for such a waiver would be: a. Fund raising event for the benefit of a district or community charity Note: Generally, non-profit sports leagues shall not be considered for such waivers, ie: AYSO, Pop Warner, youth football leagues. Any youth organization that consists of 85% students residing within district boundaries will be eligible for 75% discount of stated fees, along with a $500 refundable security deposit. District will require verification of resident students with a Team Roster. b. Political events Insurance, Damage and Liability District users will not be required to provide proof of insurance, for district -related, sponsored events. Groups, organizations, or persons using school facilities or grounds shall be liable for any property damages caused by the activity. The Board may charge the amount necessary to repair the damages and may deny the group further use of school facilities or grounds. Any group or organization using school facilities or grounds shall be liable for any injuries resulting from its negligence during the use of district facilities or grounds. Prior to approval Attachment No. 1 Exhibits Exhibit B AR 1330(i) USE OF SCHOOL FACILITIES (continued) of the Facility Use Application, the group shall bear the cost of insuring against this risk and defending itself against claims arising from this risk. (Education Code 38134) The certificate of insurance must include the insurance company's policy endorsement of comprehensive general liability (broad form) insurance, occurrence basis (combined single limit, personal injury, bodily injury, and property damage), with following minimum requirements: 1. One million dollars ($1,000,000) for each occurrence for "contact sports" activities involving: Badminton, Baseball, Basketball, Cheerleading, Field Hockey, all forms of Football, Golf, Gymnastics, Handball, Lacrosse, all forms of Martial Arts, Racquetball, Roller Hockey, Rugby, Soccer, Swimming, Tennis, Track, Volleyball, Water Polo, Weight Lifting and Wrestling These "contact sports" are subject to change and/or additions atany time, with the discretion of the Director of Planning and Construction. 2. Fireworks - One million dollars ($1,000,000). 3. One million dollars ($1,000,000) for "non -contact" sporting events: meetings, seminars, workshops, religious services, and live performances. The Certificate of Insurance must name the district as an "additional insured" and be signed by an authorized officer of the insurance company. Persons or organizations applying for the use of school facilities or grounds shall sign the Hold Harmless Statement indicating waiver to any claims against the district. Damages Not Covered The following shall apply when damage occurring to school property is not covered under the provisions of the certificate of insurance and the policy endorsement: 1. Applicant, individually and/or jointly with the organization group and/or club, agrees to be responsible for all liabilities and claims arising out of the groups own negligence and that the applicant's liability for injuries and property damage, shall be primary before any coverage of the district. 2. Applicant shall be invoiced for an amount necessary to repay the damage. Attachment No. 1 Exhibits Exhibit B AR 1330(j) USE OF SCHOOL FACILITIES (continued) 3. Applicant's failure to pay said damages shall constitute sufficient cause for the district to take whatever action the district considers appropriate against the applicant. 4. Such action may include, but is not limited to, immediate cancellation of the application and disapproval of future applications to use school facilities and grounds. Field Conditions Fields will be inspected by a designated person at each school site, preferably an Athletic Director or ASB Advisor, on a monthly basis, in order to monitor a fields' improvement or deterioration. Each field will be assigned a condition, as defined below, in order to set up field assignments for students, as well as outside groups requesting facility use. Should a field fall into the "fair" category, it may be closed to outside group(s) for one to three months in order to rest and recover. During this time period, it is the responsibility of the gardener to re -seed, fertilize and aerate the fields. Funding for renovating fields shall be provided for by Maintenance, by completing a Maintenance Work Order. Excellent Approximately 0-5010 Turf Damage • No patchy areas. Turf looks healthy. • Can sustain current allocations of play with little to no signs of wear. • Staff will continue to monitor monthly. • If conditions change, field will be downgraded to Good. Good • Overall turf area looks healthy. • Signs of wear but can sustain current allocation. • Few to minor wear spots around the goal areas and outfields. • Need to move goals and re -stripe fields, or rotate playing areas. • Evaluate monthly, • If conditions persist, downgrade to Fair. Fair Approximately 6-15% Turf Damage Approximately 16-32% Turf Damage • lurf is showing significant signs of wear. Some turf areas are now dirt. • 30-day notice to discontinue all play. • Usage is limited to 12 and under, for outside requests. • Will be closed to renovation as needed to restore. Poor Approximately 33-100% Turf Damage • Will be closed for renovation. Closure could be no longer than the growing season. Attachment No. 1 Exhibits Exhibit B AR 1330(k) USE OF SCHOOL FACILITIES (continued) Portable Restrooms Portable restrooms may be placed on the outskirts of a field, with school site approval. School personnel have authority on exact placement. The restroom must be staked or chained to the fence, to prevent tippage. It is the responsibility of the outside user(s) to maintain the restrooms in a clean condition, and must be serviced at a minimum of once per week, for health and safety of students and the public at. large. Failure to maintain the restrooms may jeopardize the continuance of the team(s) using school facilities for future athletic events. Youth Sports Council The district works closely with the Youth Sports Council (YSC), a division of the City of Chula Vista, Parks and Recreation Department, to ensure fair allocation of district owned fields. Teams wishing to use district fields within the City of Chula Vista must receive a field assignment from the YSC, before applying to the district under this process. The Director of the YSC will periodically inquire about availability of athletic fields for various middle and high schools through the planning department and assign teams accordingly. It is the responsibility of the team captains to contact the school, whose field(s) they wish to use, to obtain the Application and submit it to the school. School sites may accept additional materials over and above the regular fee schedule, to assist in the maintenance and enhancement of athletic fields/facilities, ie: seed, sod, fertilizer. Team captains must bring the use permit at the time of each scheduled use. The document will be controlling, and the determining factor, should a question arise over the right to use a particular field. Regulation SWEETWATER UNION HIGH SCHOOL DISTRICT approved: November 17, 2008 Chula Vista, California revised: January 25, 2010 Attachment No. 1 Exhibits Exhibit C Community Relations ARTIFICIAL TURF Definitions AR 1330.1(a) Artificial turf is a synthetic replacement for natural turf football fields. They are an expensive asset (track and field cost in 2008 is approximately 2 million dollars) that needs to be maintained by the sites diligently to obtain maximum performance, wear -ability, and to maintain warranties. Please refer to AR 1330 for specific information regarding Facility Use requirements. This AR intends to address allowed events and specific maintenance procedures only. Approved Activities These activities are subject to change and/or additions at any time, with the discretion of the Director of Planning and Construction. Baseball/Softball Physical Education Field Hockey Physical Exercises Football Rugby LaCrosse Soccer Maintenance/service vehicles: equipped with pneumatic rubber turf tires Events (see Event Section) Approved Rotated Activities Certain activities are allowed, however must be rotated to dfferent turf areas periodically: Discus Shot Put Prohibitions The following objects shall be kept off of the turf: Carnivals Leaves Cigarettes Paper Colored Beverages Sharp Objects Debris GlassTractor Pulls, Monster Trucks, Dirt Bikes Fireworks Vehicles (except as noted) Gum Windblown debris Heavy vehicles: flat bed trucks, tractor trailers, and large forklifts Attachment No. 1 Exhibits Exhibit C AR 1330.1(b) ARTIFICIAL TURF (continued) Under no circumstances should spikes, anchors, supporting columns, etc. be placed directly on field surface, nor should they be embedded or driven into the artificial turf. Acceptable Foot Wear The standard molded plastic cleat, no longer than 2 inches is the preferred artificial turf. The use of jagged metal cleats or the new "V" cleat is not reco It is preferred that cleated shoes be cleaned prior to accessing the field. It that a "cleat brush" be installed at designated access points to the field, to dirt/mud. athletic shoe for mmended. is recommended clean off excess Vehicles on Artificial Turf Every attempt should be made to minimize vehicle usage on artificial turf surfaces. District Users: A layer of 3/4" thick plywood must be placed over a vinyl tarp covering the field, and especially at all entrance/exit points to the field. Only vehicles equipped with pneumatic rubber tires should be allowed to circulate directly on field surfaces. Turning should be done in a wide radius, and only when the vehicle is in motion. All vehicles should circulate at slow speeds at all times. Abrupt and sudden braking should be avoided. Sudden acceleration and spinning of wheels must be avoided at all times. All vehicles should be inspected for possible leakage of oil or hydraulic fluids prior to accessing the fields, as this will damage the artificial turf. Wheels and tires should be free from mud/dirt. In order to avoid rutting of the infill and underlying base, vehicles on outdoor saturated fields is not recommended. Non -District Personnel are prohibited from using ANY VEHICLES on artificial turf surfaces. Note: Emergency vehicles CAN be safely driven on artificial turf, provided they adhere to the above criteria. Insurance As with any use of school facilities, a Certificate of Insurance is required by all non -district personnel, in the amount of $1 million, and include the insurance company's policy endorsement of comprehensive general liability (broad form) insurance, occurrence basis (combined single limit, personal injury, bodily injury, and property damage). The Certificate Attachment No. 1 Exhibits Exhibit C AR 1330.1(c) ARTIFICIAL TURF (continued) of insurance must name the District as an "additional insured" and be signed by an authorized officer of the insurance company. Fees A refundable Security Deposit of $500 may be required from users of artificial turf fields. Please see the planning website for Schedule of Fees. The Security Deposit shall be in the form of a check, separate from facility use fees. Events Light Events, Applied Loads of Less than 40 lbs. psi Described as: Graduation ceremonies, small concerts/plays, without any heavy stage settings PROTECT against possible punctures from sharp objects; chairs and tables; food and beverages PREPARATION: Reinforced vinyl tarps covered with one layer of plywood or light -weight interlocking rigid tiles Medium Events, Applied Loads Between 40 to 60 lbs. psi Described as: Light vehicle traffic; pick-up trucks, cars, small tractors, small fork lifts PROTECT against possible punctures from sharp objects, chairs and tables PREPARATION: Reinforced vinyl tarps covered with one layer of plywood or light -weight interlocking rigid tiles Heavy Duty Events, Applied Loads of More Than 60 lbs. psi Described as: Events, concerts with heavy stage loads, heavy concentrated loads such as crane outriggers, support column bases, etc., must be supported on multiple layers of plywood, over a heavy- duty reinforced vinyl tarp PROTECT against excessive weight and possible punctures PREPARATION: Heavy duty reinforced vinyl tarps covered with 2 layers of '/a" thick plywood, installed at a staggered pattern. Plywood Notes Care should be taken when removing plywood to avoid damaging the artificial turf. Plywood and vinyl tarps should be cleaned of all debris prior to placement/removal from the field, to reduce the risk of having wood splinters on the field. Attachment No. 1 Exhibits Exhibit C AR 1330.1(d) ARTIFICIAL TURF (continued) Maintenance and Care of Artificial Turf Grooming Every 4-6 weeks, groom the fields, using the tine portion of the Groomer. In addition, drag the rake portion of the RT Groomer in 2 right-angled directions, at a maximum of 4 mph. The spiked wheels will penetrate into the infill to loosen it. Use a small lawn tractor/similar vehicle with pneumatic turf tires. Maintaining the Infill Please see the Maintenance Guidelines brochure, for specific instructions for any areas which may show excessive wear. Painted Lines and Markings Sites are responsible for painting within manufacturer's guidelines to maintain the warranty. Non -district personnel are prohibited from placing markings on artificial turf. Grass and Weeds Use a pre -approved biodegradable weed killer, ie; Round -Up, as it will not discolor the turf. Using a 3-prong tool, carefully remove any weeds/moss. Stains Oil: Use Field Turf Scrub Detergent Bodily Fluids/Blood/Vomit: Use Field Turf Scrub Cleaner and Conditioner is safe to use, and is environmentally friendly. Under no circumstances, should any oxidizing agents, such as bleaching agents, be used on artificial turf. This will invalidate the warranty. Gum/Tar/Adhesive Material Removal Use Field Turf Gum Remover, as it is a biodegradable product. See the Maintenance Guidelines brochure for detailed instructions on the removal process. Schools and Warranty Periods See Planning office for warranties at each school. Regulation SWEETWATER UNION HIGH SCHOOL DISTRICT approved: February 23, 2009 Chula Vista, California FAIR RENTAL VALUE: WAIVER OF FEES: 75% DISCOUNT residency. Attachment No. 1 Exhibits GENERAL FACILITIES (Cafeteria's, Auditorium's, Gymnasium's, Fields) FACILITY USE FEE SCHEDULE Exhibit D FACILITY/AREA DIRECT COSTS Per Hour FAIR RENTAL VALUE Per Hour COMMENTS ..-• ...".., ‘c nr. min.) FACILITY USE ADAPTIVE Building 25. 35. AUDITORIUM/MUSIC-DRAMA BLDG, WITHOUT STAGE & 30. 45. DRESSING ROOMS AUDITORIUM/MUSIC-DRAMA BLDNG-STAGE ONLY 35. 50. AUDITORIUM/MUSIC-DRAMA BLDNG, WITH STAGE & DRESSING ROOM *FOR 45. 60. AIR CONDITIONING ADD: 45. 55. CAFETERIA W/O KITCHEN 15. 25. Add $10. per hr-restrooms CAFETERIA, WITH KITCHEN (ADD'L. FEE REQ'D FOR CAFETERIA WORKER) 25. 35. CARPET CLEANING ALLOWANCE 50. 75. CLASSROOM *FOR 15. 20. Add $10. per hr-restrooms AIR CONDITIONING ADD: 30.* 35.* ATHLETIC FIELDS & COURTS FIELD ONLY 20. 30. Plus field lining costs FIELD W. SHOWER, LOCKER RM 45. 55. Plus field lining costs CONCESSION (ARRANGED WITH SCHOOL SITE) GYMNASIUM, WITH/WITHOUT BLEACHERS 40. 50. GYMNASIUM, WITH SCOREBOARD & BLEACHERS 50. 60. GYMNASIUM WITH BLEACHERS SCOREBOARD, SHOWER & LOCKER ROOMS 70. 80. FOR AIR CONDITIONING ADD: 50. 70. STADIUM ONLY -GRASS FIELDS- 50. 75. Plus field lining costs STADIUM W. LIGHTS 100. 125. Plus field lining costs ART. TURF FIELDS 100. 125. Plus field lining costs ART. TURF SECURITY DEP. ART. 500. 500. TURF W. LIGHTS 150. 175. ART. TURF W. LIGHTS, SHOWER & LOCKER ROOMS 175. '200. TURF W. LIGHTS, SHOWER, LOCKER ROOM, PA, TIME CLOCK & SCOREBD 225. 250. TENNIS COURTS W/O LIGHTS (PER COURT) 15. 20. Add $5 per hr for lights SWIMMING POOL @ MAR VISTA HIGH SCHOOL 35. 45. RESTROOM(S) Men + Women 15. 20. PARKING LOT 25. 35. *Air Canditinnir, fen,.e , __ _ ***ALL CUSTODIAL FEES ARE CHARGED AT A MINIMUM OF 2 HOURS*** DIRECT COST: Any religious group, charitable fund raising activities, community groups, public agencies, (YMCA, Girl/Boy Scouts, City Recreation) Entertainment/fund raising or meetings where admission is charged, or contributions will be solicited. Any waiver requires $500. Refundable Security the superintendent or his designee. applies to GRASS FIELDS ONLY. Team Roster must be -school hours/days* Deposit & approval by attached, with 85% Form No. 6904 Rev. 11/14/11 Attachment No. 1 Exhibits MULTI PURPOSE BUILDINGS BONITA VISTA HIGH, CHULA VISTA MIDDLE, EASTLAKE MIDDLE, OLYMPIAN HIGH, OTAY RANCH HIGH, RANCHO DEL REY MIDDLE, SWEETWATER HIGH FACILITY USE FEE SCHEDULE The following charges also include basic stage lighting, PA system, microphones, CD/cassette players, podium (if available), white cyclorama (if available), eight -foot tables, chairs, and upright Exhibit D piano: LOCATION DIRECT COSTS DIRECT COSTS WEEKLY COSTS FAIR RENTAL FAIR RENTAL WEEKLY RATE Six consec. days times 8 hours Six consec. days times 8 hours VALUE VALUE Minimum charge (3 hours) Add'1. charge Per hour or portion, over 3 hours Minimum charge (3 hours) Add'1. charge per hr/port--on over 3 hours MULTI -PURPOSE $178. $60. $2,615. $298. $100. $4,482. BUILDING "GREEN" ROOM $34. $12. $540. $46. $16. $720. PAVILION $34. $12. $540. $46. $16. $720. PAVILION $75 $25. $1,000. $100. $50. $1,800. LIGEITING RESTROOM(S) $32. $10. $49. $17. >DDITIONAL l;•uulrrit;iN1 CVM ELM OLH ORH RDR SUH H.S. #14 BVH No Yes Yes No Yes Yes Yes Additional Microphones $10 per day or $40 per week No No Yes No Ycs Yes Yes Wireless Microphones $15 per day or $60 per week Yes Yes Yes Yes Yes Yes No Piano $50 per day No No No No No No No Acoustic Shell S50 per day or $200 per week No Yes No Yes No Yes No Choral Risers $30 per day or $120 per week No No No No No No Yes Orchestra Risers $10 setup per unit Yes No No Yes Yes No Ycs Separate Dressing Rooms (Boys/Girls) Included No No Yes Yes Yes No No Choir Room Lg. Classroom Fee No No No Yes Yes No Yes Black Box included 190 450 400-700 936 934 700 265+ 300-500 Maximum Seating for Multi Purpose Bldg. None 300 700 1,430 700 700 265 Maximum Seating for Pavilion Area None Yes No Hospitality Room (frig/sinklwindow to Pavilion t' * *Air Conditioning fees are assessed on non -school days/ zme Carpet cleaning allowance, when food/beverages are present: Direct Cost: $50. Fair Rental: $75. DIRECT COST: Any religious services, charitable fund raising activities, community groups, public agencies. FAIR RENTAL VALUE: Entertainment/fund raising or meetings where admission is charged or contributions will be solicited. WAIVER OF FEES: Any waiver requires $500. Refundable Security Deposit, and approval by Superintendent or his designee. FACILITY USE FEES & ADDITIONAL EQUIPMENT FEES MONTHLY PRINCIPAL REPORT CUSTODIAL FEES are deposited into ASB Fund. DISCOUNTS ARE NOT APPLICABLE ON MULTI PURPOSE BUILDINGS. Form No. 6904 Rev. 11/14/11 Attachment No. 1 Exhibits Exhibit D PERFORMING ARTS CENTERS CHULA VISTA HIGH, EASTLAKE HIGH and SAN YSIDRO HIGH FACILITY USE FEE SCHEDULE The following charges include basic stage light hang, PA system, three microphones, floor or ceiling monitors, CD and cassette players, podium (if available), cyclorama (if available), three eight -foot tables and ten armless ha' r irs. LOCATION DIRECT COSTS Minimum Charge (three hours) DIRECT COSTS Add'1. Charge Per hour cr portion thereof over three hours WEEKLY COSTS FAIR RENTAL FAIR RENTAL WEEKLY RATE Six consecutive days times eight hours Six consecutive days time eight hours VALUE VALUE Minimum Charge (three hours) Add'1. charge per hour or portion thereof over three hours AUDITORIUM/ STAGE/ DRESSING ROOM $300. $75. $3,150. $400. $120. $5,400. RESTROOM(S) $32_ $10. $99. $17. ADDITIONAL EQUI CVH ELH SYH Yes Yes Yes Additional Microphones $10 per day or $40 week Yes Yes Yes Wireless Microphones per $15 per day or $60 week No Yes Ycs Piano per $90 per day No Yes Yes Acoustic Shell $50 per day or $200 per week No Yes Yes Choral Risers $30 per day or $120 per week No Yes Yes Orchestra Risers $10 set up per unit No Yes Yes Open Orchestra Pit Yes Yes Yes Separate Dressing Rooms (Boys/Girls) included Yes Yes Yes Choir Room Lg. Classroom Fee Yes No Yes Mariachi Room Yes Ycs Yes Band Room Lg. Classroom Fee No Yes Yes Black Box Included Yes Yes Yes Control Room Included 695 436 400 Maximum Seating for Performing Arts Center 600 No No Maximum Seating for Pavilion Area Yes No No Hospitality Room (frig, sink, window to Pavilion Air Condition' f ing ees are assessed on non -school days/times* Carpet cleaning allowance, when food/beverages are present: Direct Cost: $50. Fair Rental: $75. DIRECT COST: Any religious services, charitable community groups, public agencies. FAIR RENTAL VALUE: Entertainment/fund raising or is charged or contributions will be solicited. WAIVER OF FEES: Any waiver requires $500. Refundable Security and approval by Superintendent or his designee. FACILITY USE FEES & ADDITIONAL EQUIPMENT FEES MONTHLY PRINCIPAL REPORT CUSTODIAL FEES are deposited into ASB Fund. DISCOUNTS ARE NOT APPLICABLE ON PERFORMING ARTS CENTERS. Form No. 6904 Rev. 11/14/11 fund raising activities, meetings where admission Deposit, Exhibit D SWEEiWATER UNION HIGH SCHOOL DISTRICT Attachment No. 1 Exhibits 1130 Fifth Avenue • Chula Vista, CA 91911-2896 (619) 691-5553 • FAX (619) 420-0339 CAFETERIA/CUSTODIAL/THEATRE TECHNICIAN PERSONNEL FEES Cafeteria Custodial Theatre Service Service Technician Regular Time (under 40 hr work week) $26. $29. $24. Overtime (over 40 hr work week) $39. $44. $36. District Holiday $65. $72. $60. _, -_ .._ --.4,4 ..,+ 9 hnnr minimnm for services. NOTE: Union bylaws require per Regular Time: The district will charge for direct costs that it incurs for supplies, utilities, janitorial services of other district employees, and salaries paid when the activity does not require district employees to work outside of their regularly scheduled work day, or causes the employment of additional personnel for the activity authorized. Applicants shall be required to pay the following amounts per hour, per employee for the duration of the activity, with a minimum of 2 hours. Overtime: When the activity requires district employees to work outside of their regularly scheduled work day, overtime charges will apply. An employee who is required to work on a day on which that employee is not normally scheduled, will receive pay for a minimum of two hours, regardless of hours actually worked. Applicants shall be required to pay the following amounts per hour, per employee for the duration of the activity, with a minimum of 2 hours. District Holidays: For any event(s) which requires custodian/cafeteria coverage on a district holiday, the charge will be paid at 2 times the stated salaries, per hour, with a minimum of 2 hours. NOTE: These fees are based on the 2007/2008 Salary Schedule, plus a ten percent allowance for annual salary adjustments, for the term of this regulation. WAIVER OF FEES: Any waiver requires $500 Refundable Security Deposit, and approval by Superintendent or his designee. Form No. 6904 Rev. 11/14/11 Attachment No. 1 Exhibits GENERAL FACILITIES (Cafeteria's, Auditorium's Gymnasium's, Fields) FACILITY USE FEE SCHEDULE Exhibit D FACILITY/AREA DIRECT FAIR RENTAL COMMENTS COSTS VALUE Per Hour (2 Hr. Min.) Per Hour (2 Hr. Min.) FACILITY USE ADAPTIVE Building 25. 35. AUDITORIUM/MUSIC-DRAMA BLDG, WITHOUT STAGE & 30. 45. DRESSING ROOMS AUDITORIUM/MUSIC-DRAMA BLDNG-STAGE ONLY 35. 50. AUDITORIUM/MUSIC-DRAMA BLDNG, WITH STAGE & DRESSING ROOM 45. 60. *FOR AIR CONDITIONING ADD: 45. 55. CAFETERIA W/O KITCHEN 15. 25. Add $10. per hr-restrooms CAFETERIA, WITH KITCHEN (ADD'L. FEE REQ'D FOR CAFETERIA WORKER) 25. 35. CARPET CLEANING ALLOWANCE 50. 75. CLASSROOM *FOR 15. 20. Add $10. per hr-restrooms AIR CONDITIONING ADD: 30.* 35.* ATHLETIC FIELDS & COURTS FIELD ONLY 20. 30. Plus field lining costs FIELD W. SHOWER, LOCKER RM 45. 55. Plus field lining costs CONCESSION (ARRANGED WITH SCHOOL SITE) GYMNASIUM, WITH/WITHOUT BLEACHERS 40. 50. GYMNASIUM, WITH SCOREBOARD & BLEACHERS 50. 60. GYMNASIUM WITH BLEACHERS SCOREBOARD, SHOWER & LOCKER ROOMS 70. 80. FOR AIR CONDITIONING ADD: 50. 70. STADIUM ONLY -GRASS FIELDS- 50. 75. Plus field lining costs STADIUM W. LIGHTS 100. 125. Plus field lining costs ART. TURF FIELDS 100. 125. Plus field lining costs ART. TURF SECURITY DEP. 500. 500. ART. TURF W. LIGHTS 150. 175. ART. TURF W. LIGHTS, SHOWER & LOCKER ROOMS 175. 200. TURF W. LIGHTS, SHOWER, LOCKER ROOM, PA, TIME CLOCK & SCOREBD 225. 250. TENNIS COURTS W/O LIGHTS (PER COURT) 15. 20. Add $5 per hr for lights SWIMMING POOL @ MAR VISTA HIGH SCHOOL 35. 45. RESTROOM(S) Men + Women 15. 20. PARKING LOT 25. 35. *Air Candi1-ionin f g ees are aaac�sed on non -school ours ill's* ***ALL CUSTODIAL FEES ARE CHARGED AT A MINIMUM OF 2 HOURS*** DIRECT COST: Any religious group, charitable fund raising activities, community groups, public agencies, (YMCA, Girl/Boy Scouts, City Recreation) FAIR RENTAL VALUE: Entertainment/fund raising or meetings where admission is charged, or contributions will be solicited. WAIVER OF FEES: Any waiver requires $500. Refundable Security Deposit & approval by the superintendent or his designee. 75% DISCOUNT applies to GRASS FIELDS ONLY. Team Roster must be attached, with 85% residency. Form No. 6904 Rev. 11/14/11 Attachment No. 1 Exhibits MULTI PURPOSE BUILDINGS BONITA.VISTA HIGH, CHULA VISTA MIDDLE, EASTLAKE MIDDLE, OLYMPIAN HIGH, OTAY RANCH HIGH, RANCHO DEL REY MIDDLE, SWEETWATER HIGH The following microphones, cyclorama (if FACILITY USE FEE SCHEDULE Exhibit D charges also include basic stage lighting, PA system, CD/cassette players, podium (if available), white available), eight -foot tables, chairs, and upright piano: LOCATION DIRECT COSTS DIRECT COSTS WEEKLY COSTS FAIR RENTAL FAIR RENTAL WEEKLY RATE Minimum charge (3 hours) Add'1. charge Per hour or portion, over 3 hours Six consec. days times 8 hours VALUE VALUE Six consec. days times 8 hours Minimum charge (3 hours) Add'l. charge per hr/portion over 3 hours MULTI -PURPOSE BUILDING $178. $60. $2,615. $298. $100. $4,482. "GREEN" ROOM $ $34 $12. $540. $46. $16. $720. PAVILION -$34. $12. $540. $46. $16. $720. PAVILION LIGHTING $75. $25. $1,000. $100. $50. $1,800. RESTROOM(S) $32. $10. $49. $17. illlll'1'1UNAL BVH CVM r.�CirrlEIN ELM OLH L ORH RDR SUR H.S. #14 No Yes Yes No Yes Yes Yes Additional Microphones $10 per day or $40 per week No No Yes No Yes Yes Yes Wireless Microphones $15 per day or $60 per week Yes Yes Ycs Yes Yes Yes No Piano $50 per day No No No No No No No Acoustic Shell $50 per day or $200 per week No Yes No Yes No Yes No Choral Risers $30 per day or $120 per week No No No No No No Yes Orchestra Risers $10 setup per unit Yes No No Yes Yes No Ycs Separate Dressing Rooms (Boys/Girls) Included No No Yes Yes Ycs No No Choir Room Lg. Classroom Fee No No No Yes Yes No Yes Black Box Included 190 450 400-700 936 934 700 265+ 300-500 Maximum Seating for Multi Purpose Bldg. None 300 700 1,430 700 700 265 Maximum Seating for Pavilion Area None Yes No Hospitality Room (frig/sink/window to Pavilion �. *Air Conditioning fees are assessed on non -school days/time Carpet cleaning allowance, when food/beverages are present: Direct Cost: $50. Fair Rental: $75. DIRECT COST: Any religious services, charitable fund raising activities, community groups, public agencies. FAIR RENTAL VALUE: Entertainment/fund raising is charged or contributions will be solicited. WAIVER OF FEES: Any waiver requires $500. Refundable Security Deposit, and approval by Superintendent or his designee. FACILITY USE FEES & ADDITIONAL EQUIPMENT FEES -, MONTHLY PRINCIPAL REPORT CUSTODIAL FEES are deposited into ASB Fund. or meetings where DISCOUNTS ARE NOT APPLICABLE ON MULTI PURPOSE BUILDINGS. admission Form No. 6904 Rev. 11/14/11 Attachment No. 1 Exhibits Exhibit D PERFORMING ARTS CENTERS CHULA VISTA HIGH, EASTLAKE HIGH and SAN YSIDRO HIGH FACILITY USE FEE SCHEDULE The following charges include basic stage light hang, PA system, three microphones, floor or ceiling monitors, CD and cassette players, podium (if available), cyclorama (if available), three eight -foot tables, and ten armless chairs LOCATION DIRECT COSTS Minimum Charge (three hours) DIRECT COSTS Add' 1. Charge Per hour or portion thereof over three hours WEEKLY COSTS FAIR RENTAL FAIR RENTAL WEEKLY RATE Six consecutive days times eight hours Six consecutive days time eight hours VALUE VALUE Minimum Charge (three hours) Add' 1. charge per hour or portion thereof over three hours AUDITORIUM/ STAGE/ DRESSING ROOM $300. $75. $3,150. $400. $120. $5,400. RESTROOM(S) $32. $10. $49, $17. ADDITIONAL EQUIP CVH ELH SYH Yes Yes Yes Additional Microphones $10 per day or $40 per week Yes Yes Yes Wireless Microphones S15 per day or $60 per week No Yes Ycs Piano $90 per day No Yes Yes Acoustic Shell $50 per day or $200 per week No Yes Yes Choral Risers $30 per day or $120 per week No Yes Yes Orchestra Risers $10 set up per unit No Yes Yes Open Orchestra Pit Yes Yes Yes Separate Dressing Rooms (Boys/Girls) Included Ycs Yes Yes Choir Room Lg. Classroom Fee Yes No Ycs Mariachi Room Yes Yes Yes Band Room Lg. Classroom Fee No Yes Yes Black Box included Yes Yes Ycs Control Room Included 695 436 400 Maximum Seating for Performing Arts Center 600 No No Maximum Seating for Pavilion Area Yes Lir 0.....e,A44•: No No c_— Hospitality Room (frig, sink, window to Pavilion .-.•••.+�a.ivuiaay ices are assesses on non -school days/times* Carpet cleaning allowance, when food/beverages are present: Direct Cost: $50. Fair Rental: $75. DIRECT COST: Any religious services, charitable fund raising activities, community groups, public agencies. FAIR RENTAL VALUE: Entertainment/fund raising or meetings where admission is charged or contributions will be solicited. WAIVER OF FEES: Any waiver requires $500. Refundable Security Deposit, and approval by Superintendent or his designee. FACILITY USE FEES & ADDITIONAL EQUIPMENT FEES MONTHLY PRINCIPAL REPORT CUSTODIAL FEES are deposited into ASB Fund. DISCOUNTS ARE NOT APPLICABLE ON PERFORMING ARTS CENTERS. Form No. 6904 Rev. 11/14/11 Exhibit D SWEETWATER UNION HIGH SCHOOL DISTRICT Attachment No. 1 Exhibits 1130 Fifth Avenue • Chula Vista, CA 91911-2896 (619) 691-5553 • FAX (619) 420.0339 CAFETERIA/CUSTODIAL/THEATRE TECHNICIAN PERSONNEL FEES Cafeteria Custodial Theatre Service Service Technician Regular Time (under 40 hr work week) $26. $29. $24. Overtime (over 40 hr work week) $39. $44. $36. District Holiday $65. $72. $60. , __ ,__ __:A .,,- , ' 1,,,,,, m;n;mnm fnr services. NOTE: Union bylaws require pers Regular Time: The district will charge for direct costs that it incurs for supplies, utilities, janitorial services of other district employees, and salaries paid when the activity does not require district employees to work outside of their regularly scheduled work day, or causes the employment of additional personnel for the activity authorized. Applicants shall be required to pay the following amounts per hour, per employee for the duration of the activity, with a minimum of 2 hours. Overtime: When the activity requires district employees to work outside of their regularly scheduled work day, overtime charges will apply. An employee who is required to work on a day on which that employee is not normally scheduled, will receive pay for a minimum of two hours, regardless of hours actually worked. Applicants shall be required to pay the following amounts per hour, per employee for the duration of the activity, with a minimum of 2 hours. District Holidays: For any event(s) which requires custodian/cafeteria coverage on a district holiday, the charge will be paid at 2 times the stated salaries, per hour, with a minimum of 2 hours. NOTE: These fees are based on the 2007/2008 Salary Schedule, plus a ten percent allowance for annual salary adjustments, for the term of this regulation. WAIVER OF FEES: Any waiver requires $500 Refundable Security Deposit, and approval by Superintendent or his designee. Form No. 6904 Rev. 11/14/11 SWEE7WATER UNION HIGH SCHOOL DISTRICT Attachment No. 1 Exhibits 1130 Fifth Avenue • Chula Vista, CA 91911-2896 (619) 691-5553 • FAX (619) 420-0339 FACILITY CAPACITY GYMNASIUMS Exhibit D Bonita Vista High 1,400 Castle Park High 1,353 Chula Vista High 1,513 Eastlake High 2,316 Hilltop High 1,450 Mar Vista High 2,217 Old Gym: 1,345 Montgomery High 2,000 Olympian High 1,890 Otay Ranch High 1,890 Palomar High No Gym San Ysidro High 1,890 Southwest High 2,000 Sweetwater High 2,217 FACILITY CAPACITY CHULA VISTA COMMUNITY CENTER AT CHULA VISTA HIGH SCHOOL Dance Room 86 Game/Meeting Room 86 Gymnasium 400 Form No. 6904 Rev. 11/14/11 SWEEiWATER UNION HIGH SCHOOL DISTRICT Attachment No. 1 Exhibits 1130 Fifth Avenue • Chula Vista, CA 91911-2896 (619) 691-5553 • FAX (619) 420-0339 FACILITY CAPACITY GYMNASIUMS Exhibit D Bonita Vista High 1,400 Castle Park High 1,353 Chula Vista High 1,513 Eastlake High 2,316 Hilltop High 1,450 Mar Vista High 2,217 Old Gym: 1,345 Montgomery High 2,000 Olympian High 1,890 Otay Ranch High 1,890 Palomar High No Gym San Ysidro High 1,890 Southwest High 2,000 Sweetwater High 2,217 FACILITY CAPACITY CHULA VISTA COMMUNITY CENTER AT CHULA VISTA HIGH SCHOOL Dance Room 86 Game/Meeting Room Gymnasium 86 400 Form No. 6904 Rev. 11/14/11 ti SWEETWATER HIGH Eits SWEETWATER UNION HIGH SCHOOL DISTRICT ADMINISTRATION CENTER 1130 Fifth Avenue Chula Vista, California 91911-2896 (619) 691-5553 Exhibit E BP 1330( AR 1330(, , APPLICATION AND PERMIT FOR USE OF SCHOOL FACILITIES AND GROUNDS ANY PERSON APPLYING FOR THE USE OF SCHOOL PROPERTY ON BEHALF OF ANY SOCIETY, GROUP, OR ORGANIZATION SHALL BE A MEMBER OF THE APPLICANT GROUND AND, UNLESS HE OR SITE IS AN OFFICER OF THE GROUP, MUST PRESENT WRITTEN AUTHORIZATION FROM THE APPLICANT GROUP TO MAKE THE APPLICATION. THIS STATEMENT OF INFORMATION MAY CONTINUE IN EFFECT FOR THE PERIOD OF ONE YEAR FROM THE DATE OF TIIE WRITTEN AUTHORIZATION. APPLICATIONS FOR USE OF SCHOOL FACILITIES BY EMPLOYEE ORGANIZATIONS ARE SUBJECT TO TILE CONDITIONS AND TERMS STATED IN NEGOTIATED COLLECTIVE BARGAINING AGREEMENTS AND RIGHTS GRANTED ACCORDING TO GOVERNMENT CODE SECTION 3543.1 (b) RIGHT OF EMPLOYEE ORGANIZATIONS TO USE INSTITUTIONAL FACILITIES. I, authorized officer of (NAME OF APPLICANT) hereby apply for permission to use (NAME OF SCHOOL FACILITY) TYPE OF FACILITY CLASSROOM AUDITORIUM PRACTICE FIELD LOCKER ROOM (CIRCLE ONE:) CAFETERIA w/o KITCHEN OUTDOOR COURTS BASEBALL FIELD PARKING LOT CAFETERIA/KITCHEN FOOTBALL STADIUM GYMNASIUM OTHER ARTIFICIAL TURF FIELDS NUMBER OF EACH TYPE NEEDED: DATE(S) NEEDED FROM , acting on my behalf, or acting as the duly qualified and TO DAY(S) OF WEEK BEGINNING SET-UP TIME NEEDED. (AM/PM) EVENT START TIME: (AM/PM) EVENT END TIME: (AM/PM) END CLEAN UP TIME: (AM/PM) (CIRCLE MORNING, BEFORE SCHOOL AFTERNOON, AFTER SCI100I. WEEKEND ONE:1 MORNING, DURING SCHOOL EVENING, DURING CUSTODIAL SHIFT HOLIDAYS AFTERNOON, DURING SCHOOL EVENING, AFTER CUSTODIAL SHIFT SCHOOL. VACATION NATURE OR TYPE OF USE NAME OF SPEAKER Number of persons expected to attend Admission Charge: Yes No: Admission fee: $ Participation Charge: Yes No: Participation Fee: $ TERMS: ALL FEES FOR USE OF SCHOOL FACILITIES AND GROUNDS ARE DUE UPON SUBMISSION OF THIS APPLICATION AND ARE PAYABLE TO THE SWEETWATER UNION HIGH SCHOOL DISTRICT. USE (RENTAL) FEE: $ CUSTODIAL/CAFETERIA (PERSONNEL) SERVICE FEE: $ I, THE UNDERSIGNED APPLICANT, HEREBY ACKNOWLEDGE RECEIPT OF THIS APPLICATION AND INCORPORATED CONDITIONS AND RULES GOVERNING THE USE OF SCHOOL FACILITIES AND GROUNDS, AND AGREE TO COMPLY WITH ALL PROVISIONS AS SET FORTH IN THE APPLICATION AND INCORPORATED CONDITIONS AND RULES GOVERNING TIIE USE OF SCHOOL FACILITIES AND GROUNDS. APPLICANT FURTHER ACKNOWLEDGES THAT ANY VIOLATION OF SAID APPLICATION AND CONDITIONS AND RULES SI-IALL CONSTITUTE SUFFICIENT CAUSE FOR THE DISTRICT TO TAKE WHATEVER ACTION THE DISTRICT CONSIDERS APPROPRIATE AGAINST THE APPLICANT. SUCH ACTION MAY INCLUDE, BUT IS NOT LIMITED TO, IMMEDIATE CANCELLATION OF THE APPLICATION AND DISAPPROVAL OF FUTURE APPLICATIONS TO USE SCHOOL. FACILITIES AND GROUNDS. DO NOT CONSIDER THIS REQUEST CONFIRMED UNTIL YOU RECEIVE A SIGNED, APPROVED COPY (SIGNATURE OF APPLICANT) (OFFICIAL TITLE) (DATE) (ADDRESS) (TELEPHONE NUMBER) Form No. 6900 Rev. 1/25/10 Distribution: WHITE — District Planning/Facilities PINK — Retained by School Site Page 1 of 4 CANARY — Mailed to Applicant, After Approval GOLDENROD — Applicant, Upon Submission Attachment No. 1 Exhibits Exhibit E STATEMENT OF INFORMATION THE UNDERSIGNED STATES THAT. TO THE BEST OF HIS/HER KNOWLEDGE, THE SCHOOL PROPERTY FOR USE OF WHICH APPLICATION IS HEREBY MADE WILL NOT BE USED FOR THE COMMISSION OF ANY ACT INTENDED TO FURTHER ANY PROGRAM OR MOVEMENT, THE PURPOSE OF WHICH IS TO ACCOMPLISH THE OVERTHROW OF THE GOVERNMENT OF THE UNITED STATES BY FORCE, VIOLENCE, OR OTHER UNLAWFUL MEANS. THAT THE ORGANIZATION ON WHOSE BEHALF HE/SHE IS MAKING APPLICATION FOR USE OF SCHOOL PROPERTY, DOES NOT, TO THE BEST OF HIS/HER KNOWLEDGE, ADVOCATE THE OVERTHROW OF THE GOVERNMENT OF THE UNITED STATES OR OF THE STATE OF CALIFORNIA BY FORCE, VIOLENCE, OR OTHER UNLAWFUL MEANS, AND THAT, TO THE BEST OF HIS/HER KNOWLEDGE, IT IS NOT A COMMUNIST ACTION ORGANIZATION OR COMMUNIST FRONT ORGANIZATION, REQUIRED BY LAW TO BE REGISTERED WITH THE ATTORNEY GENERAL OF THE UNITED STATES. THIS STATEMENT IS MADE UNDER THE PENALTIES OF PERJURY. APPLICANT (SIGNATURE) DATE HOLD HARMLESS STATEMENT I/WE AGREE TO WAIVE ALL CLAIMS AGAINST THE SWEETWATER UNION HIGH SCHOOL DISTRICT, ITS REPRESENTATIVES, OFFICERS, AGENTS, AND EMPLOYEES FROM ANY AND ALL LIABILITIES, CLAIMS, OBLIGATIONS, JUDGEMENTS, SUITS, COSTS, DAMAGES, EXPENSES, ATTORNEYS' FEES, INCURRED OR PAID, ARISING OUT OF, OR IN CONNECTION WITH, EXCEPT WHERE PERSONAL INJURY, BODILY INJURY, DEATH, AND/OR ANY OTHER PROPERTY DAMAGES OF WHATSOEVER NATURE OR KIND, RESULT FROM THE DISTRICT'S NEGLIGENT OR INTENTIONAL ACTS APPLICANT , WHO HEREBY CERTIFIES THAT HE/SHE IS THE DULY QUALIFIED (SIGNATURE) AND AUTHORIZED OFFICER OF DATE (ORGANIZATION, GROUP, SOCIETY) SCHOOL SITE USE ONLY APPROVAL AS INDICATED: CHARGES: (CIRCLE THOSE A. FEE EXEMPT B. DIRECT COST C. FAIR RENTAL VALUE Initials THAT APPLY) D. CUSTODIAL E. CAFETERIA F. WAIVER -SIGNED BY SUPERINTENDENT Insurance Insurance Verified & Attached Expiration Date Initials Company/Policy # Is the activity sponsored by the ASB? Yes No Initials of ASB Dean/Advisor MASTER CALENDAR ENTRY: DATE: INITIALS: GARDENER: ASB DEAN/ADVISOR: OTHER: DEPARTMENT CHAIRPERSON: ASS'T PRINCIPAL: HEAD CUSTODIAN: USE OF ABOVE FACILITIES FOR DESCRIBED ACTIVITY APPROVED BY: (SIGNATURE OF SCHOOL OFFICIAL) (TITLE) DISTRICT USE ONLY SPECIAL INSTRUCTION TO RESPONSIBLE INDIVIDUAL: (DIRECTOR OF PLANNING) **YOU MAY BE ASKED TO PRESENT THIS APPROVED APPLICATION, AT THE EVENT** Form No. 6900 Rev. 1/25/10 Page 3 of 4 FINAL APPROVAL Attachment No. 1 Exhibits Exhibit E THE USE OF SCHOOL FACILITIES AND GROUNDS Following are the conditions and rules that apply to use of any school facilities and grounds by individuals, groups, clubs and organizations herein referred to as the "applicant," and the Sweetwater Union High School District herein referred to as the "district". The complete conditions and rules (BP 1330 and AR 1330) are available on the district website at www.suhsd.k12.ca.us, Board Meeting Documents, Policies. Most forms may be downloaded at district website, Administration, and Planning and Construction. The Application and Permit for Use of School Facilities and Grounds, Form No. 6900 is available at all school sites. A. Any individual requesting use of school premises shall be denied for any of the following: 1. Activities that are immoral, offensive, or harmful to school facilities and grounds. 2. Activities that are not consistent with school facility and ground use or interfere with the regular conduct of school purposes or school work. 3. Commercial advertising. 4. Activities which involve the possession, consumption and/or sale of alcoholic beverages or any restricted substance. This section does not prohibit the use of sacramental wine by a church or religious organizations as part of a religious ceremony. Smoking is prohibited on all district properties. 5. Fund-raising activities except as permitted by board policy or special action of the board. 6. Professional camivals or use of rebounding devices. 7. Activities that do not comply with the laws and statutes of the State of California, Education Code Sections 10900-10914.5, U.S Code Section 7905, Business and Professions Code Section 25608, Civic Center Act 38130-38138, city and county firs regulations/ordinances, negotiated collective bargaining agreements, this board policy with related regulations, and all other policies of the district. B. Any juvenile organization or group seeking use of school premises must have a responsible adult sponsor to sign the Application, and the adult must be present at all times. C. Employee organizations requesting use of facilities for meetings, either before or following employees' duty day, are subject to the approval of the site principal and or his/her designee. D. All facilities usage must be listed on the application. E. Applications will be issued for specific rooms and for specific hours. It shall be the responsibility of the applicant to see that the unauthorized portions of the building are not used and that the premises are vacated as scheduled. F. The district shall have the right to require the applicant to provide adequate supervision and/or security police, when such supervision is deemed necessary, to ensure protection of district property. G. A district employee shall be on duty whenever a facility is being used. Such employee shall be in charge of the facility. H. Applicants requesting use of cafeteria kitchen must have district cafeteria personnel to supervise the activity. The applicant shall be responsible for all cafeteria (personnel) service fees. I. If facility use is for Artificial Turf field use, please review AR 3517.1 for additional restrictions. Form No. 6900 Rev. 1/25/10 Page 2 of 4 BP 1330(a) Attachment No. 1 Exhibits Exhibit E J. The use of any material or device which constitutes a hazard is expressly prohibited. K. Decorations shall be erected and taken down in a manner not destructive to district property. L. Applicants requesting use of school premises which include a stage shall not be permitted to move or change any furniture or equipment, including lights, curtains, ceiling pieces, or cycloramas except under the direction and supervision of the district employee in charge. M. Applications shall be filed at the requested school site at least two weeks in advance of the first date of the activity described on the application. N. All applicants shall sign the Statement of Information and Hold Harmless statement integrated as part of the application. O. Prior to the approval of the Application and Permit for Use of School Facilities and Grounds, the applicant shall submit to the site principal or his/her designee, a certificate of insurance along with the insurance company's policy endorsement of comprehensive general liability (broad form) insurance, occurrence basis (combined single limit, personal injury, bodily injury and property damage). Both documents shall name the Sweetwater Union High School District as an additional insured and signed by an authorized officer of the insurance company. Further, the carrier's policy coverage shall contain the following provisions: primary coverage before the district's policy; any aggregate limits shall apply separately to each insured; carrier agrees not to call on the district for any contribution in the settlement of a claim; and shall not require any contribution whatsoever by the district. P. The amount required in the Certificate of Insurance and the policy endorsement are stipulated in AR 1330(a). Q. The following shall apply when damage occurring to school property is not covered under the provision of the Certificate of Insurance and the policy endorsement: 1. Applicant, individually and/or jointly with the organization, group and/or club, agrees to be responsible for all liabilities and claims arising out of the groups own negligence and that the applicant's liability for injuries and property damage, shall be primary before any coverage of the district. 2. Applicant shall be invoiced for an amount necessary to repay the damages. 3. Applicant's failure to pay said damages shall constitute sufficient cause for the district to take whatever action the district considers appropriate against the applicant. 4. Such action may include, but is not limited to, immediate cancellation of the application and disapproval of future applications to use school facilities and grounds. R. A district employee shall open the building/field only upon presentation of the approved Application and Permit to Use School Facilities and Grounds. S. Any application issued is subject to the condition that the district expressly reserves the right to unilaterally change or revoke the application in part or entirely without notice should the school facilities and grounds for which an application has been issue be needed for a� school purpose whatsoever. T. Individuals using district facilities may bring guide, signal or service dogs as need, however, the district assumes no liability for the safety of animals voluntarily brought to district facilities. BP 6163.2 Form No. 6900 Rev. 1 /25/10 Page 4 of 4 Attachment No. 1 Exhibit F STATEMENT OF INFORMATION BP 1330(a) AR. 1330(a) THE UNDERSIGNED STATES THAT, TO THE BEST OF HIS/HER KNOWLEDGE, THE SCHOOL PROPERTY FOR USE OF WHIC.. APPLICATION IS HEREBY MADE WILL NOT BE USED FOR THE COMMISSION OF ANY ACT INTENDED TO FURTHER ANY PROGRAM OR MOVEMENT, THE PURPOSE OF WHICH IS TO ACCOMPLISH THE OVERTHROW OF THE GOVERNMENT OF THE UNITED STATES BY FORCE, VIOLENCE, OR OTHER UNLAWFUL MEANS. THAT THE ORGANIZATION ON WHOSE BEHALF HE/SHE IS MAKING APPLICATION FOR USE OF SCHOOL PROPERTY, DOES NOT, TO THE BEST OF HIS/HER KNOWLEDGE, ADVOCATE THE OVERTHROW OF THE GOVERNMENT OF THE UNITED STATES OR OF THE STATE OF CALIFORNIA BY FORCE, VIOLENCE, OR OTHER UNLAWFUL MEANS, AND THAT, TO THE BEST OF HIS/HER KNOWLEDGE, IT IS NOT A COMMUNIST ACTION ORGANIZATION OR COMMUNIST FRONT ORGANIZATION, REQUIRED BY LAW TO BE REGISTERED WITH THE ATTORNEY GENERAL OF THE UNITED STATES. THIS STATEMENT IS MADE UNDER THE PENALTIES OF PERJURY. APPLICANT X (SIGNATURE OF APPLICANT) DATE JEIOLD HARMLESS STATEMENT EWE AGREE TO WAIVE ALL CLAIMS AGAINST THE SWEETWATER UNION HIGH SCHOOL DISTRICT, ITS REPRESENTATIVES, OFFICERS, AGENTS, AND EMPLOYEES FROM ANY AND ALL LIABILITIES, CLAIMS, OBLIGATIONS, JUDGEMENTS, SUITS, COSTS, DAMAGES, EXPENSES, ATTORNEYS' FEES, INCURRED OR PAID, ARISING OUT OF, OR IN CONNECTION WITH, EXCEPT WHERE PERSONAL INJURY, BODILY INJURY, DEATH, AND/OR ANY OTHER PROPERTY DAMAGES OF WHATSOEVER NATURE OR KIND, RESULT FROM THE DISTRICT'S NEGLIGENT OR INTENTIONAL ACTS APPLICANT j , WHO HEREBY CER I IFIES THAT HE/SHE IS THE DULY QUALIFIED (SIGNATURE OF APPLICANT) AND AUTHORIZED OFFICER OF DATE (NAME OF TEAM/ORGANIZATION 7ROUP) SCHOOL SITE USE ONLY APPROVAL AS INDICATED: CHARGES: (CIRCLE THOSE A. FEE EXEMPT B. DIRECT COST C. FAIR RENTAL VALUE Initials THAT APPLY) D. CUSTODIAL E. CAFETERIA F. WAIVER -SIGNED BY SUPERINTENDENT Insurance Insurance Verified & =ad Expiration Date Initials Company/Policy # Is the activity sponsored by the ASB? Yes No Initials of ASB Dean/Advisor MASTER. CALENDAR ENTRY: DATE: INITIALS: GARDENER: ASB DEAN/ADVISOR: OTHER: DEPARTMENT CHAIRPERSON: ASS'T PRINCIPAL: HEAD CUSTODIAN: USE OF ABOVE FACILITIES FOR DESCRIBEDDCTIVITY APPROVED BY: X (SIGNATURE OF SCHOOL OFFICIAL) (TITLE) DISTRICT USE QNLY SPECIAL INSTRUCTION TO RESPONSIBLE INDIVIDUAL: FINAL APPROVAL X (DIRECTOR OF PLANNING) **YOU MAY BE ASKED TO PRESENT THIS APPROVED APPLICATION, AT THE EVENT** Form No. 6900 Rev. 8)29/I 1 Page 2 of 2 Attachment No. 1 Exhibit F BP 1330(a) AR 1330(a) J. The use of any material or device which constitutes a hazard is expressly prohibited. K. Decorations shall be erected and taken down in a manner not destructive to district property. L. Applicants requesting use of school premises which include a stage shall not be permitted to move or change any furniture or equipment, including lights, curtains, ceiling pieces, or cycloramas except under the direction and supervision of the district employee in charge. M. Applications shall be filed at the requested school site at least two weeks in advance of the first date of the activity described on the application. Payment in full is due at time of application. N. All applicants shall sign the Statement of Information and Hold Harmless statement integrated as part of the application. O. Prior to the approval of the Application and Permit for Use of School Facilities and Grounds, the applicant shall submit to the site principal or his/her designee, a certificate of insurance along with the insurance company's policy endorsement of comprehensive general liability (broad form) insurance, occurrence basis (combined single limit, personal injury, bodily injury and property damage). Both documents shall name the Sweetwater Union High School District as an additional insured and signed by an authorized officer of the insurance company. Further, the carrier's policy coverage shall contain the following provisions: primary coverage before the district's policy; any aggregate limits shall apply separately to each insured; carrier agrees not to call on the district for any contribution in the settlement of a claim; and shall not require any contribution whatsoever by the district. P. The amount required in the Certificate of Insurance and the policy endorsement are stipulated in AR 1330(h). District must be named as "additional insured" and include: Sweetwater Union High School District, Attn: Planning Dept/Facility Use, 1130 Fifth Ave, Chula Vista, CA 91911 Q. The following shall apply when damage occurring to school property is not covered under the provision of the Certificate of Insurance and the policy endorsement: 1. Applicant, individually and/or jointly with the organization, group and/or club, agrees to. be responsible for all liabilities and claims arising out of the groups own negligence and that the applicant's liability for injuries and property damage, shall be primary before any coverage of the district. 2. Applicant shall be invoiced for an amount necessary to repay the damages. 3. Applicant's failure to pay said damages shall constitute sufficient cause for the district to take whatever action the district considers appropriate against the applicant. 4. Such action may include, but is not limited to, immediate cancellation of the application and disapproval of future applications to use school facilities and grounds. R. A district employee shall open the building/field only upon presentation of the approved Application and Permit to Use School Facilities and Grounds. S. Any application issued is subject to the condition that the district expressly reserves the right to unilaterally change or revoke the application in part or entirely without notice should the school facilities and grounds for which an application has been issue be needed for a_,,,y school purpose whatsoever. T. Individuals using district facilities may bring guide, signal or service dogs as need, however, the district assumes no liability for the safety of animals voluntarily brought to district facilities. AR 1330(d) Form No. 6900 Rev. 8/29/1 I Page 2 of 2 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: October 30, 2012 AGENDA ITEM NO. ITEM TITLE: Resolution of the City Council of the City of National City approving the terms and conditions of the San Diego Habitat for Humanity Acquisition -Rehabilitation for Homeownership Program and authorizing the Mayor to execute a HOME Community Housing Development Organization Funding Agreement between the City of National City and San Diego Habitat for Humanity Community Housing Corporation, Inc. for the construction and/or rehabilitation of single-family residential housing in the City of National City PREPARED BY: ICarlos Aguirre' DEPARTMENT: Housing and Grants PHONE: (619) 336-4391. APPROVED BY_ EXPLANATION: The purpose for the City of National City's investment of $650,000 in HUD HOME Investment Partnership funds with San Diego Habitat for Humanity Community Housing Corporation, Inc. (SD-HFH) is to assist SD-HFH to purchase, rehabilitate and re -sell, as a goal, a minimum of six (6) single family homes within the city limits of the City of National City to first-time homebuyers earning 80% or less of the HUD determined Median Area Income by June 30, 2014. This investment partnership will turn vacant (foreclosed on or otherwise) single-family homes into lead-free/asbestos-free rehabilitated, quality affordable homeownership opportunities. To achieve these ends the City, through its certified Housing Inspectors, will provide a lead -based paint assessment and inspect each potential home purchase for existing health and safety and building code violations (un-permitted additions, garage conversions, electrical/plumbing upgrades, etc.) and SD-HFH will provide an asbestos assessment and then incorporate all that information into its overall rehabilitation plan for the house. FINANCIAL STATEMENT: APPROVED: Finance ACCOUNT NO. APPROVED: MIS City Council allocated $650,000 in HOME funds to Habitat for Humanity in FY2013. Upon execution of the an agreement, said funds will be budgeted in account 505-409-462-650-9023 ENVIRONMENTAL REVIEW: Individual housing units constructed or rehabilitated under the CHDO Funding Agreement will be subject to NEPA review. ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt the resolution. BOARD / COMMISSION RECOMMENDATION: Not applicable to this report. ATTACHMENTS: Attachment No. 1 HOME CHDO Funding Agreement RESOLUTION NO. 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING THE TERMS AND CONDITIONS OF THE SAN DIEGO HABITAT FOR HUMANITY ACQUISITION -REHABILITATION FOR HOMEOWNERSHIP PROGRAM, AND AUTHORIZING THE MAYOR TO EXECUTE A HOME COMMUNITY HOUSING DEVELOPMENT ORGANIZATION ("CHDO") FUNDING AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND SAN DIEGO HABITAT FOR HUMANITY COMMUNITY HOUSING CORPORATION, INC. FOR THE CONSTRUCTION AND/ OR REHABILITATION OF SINGLE-FAMILY RESIDENTIAL HOUSING IN THE CITY OF NATIONAL CITY WHEREAS, the City of National City is a recipient of funds from the United States Department of Housing and Urban Development ("HUD"), pursuant to Title II of the National Affordable Housing Act of 1990 (42 U.S.C. 12701 et seq.) as amended; and WHEREAS, the City desires to plan for the new construction or rehabilitation of existing housing to create affordable residential developments for the benefit of low- and moderate- households, including certain pre -development activities as allowed under HOME regulations; and WHEREAS, San Diego Habitat for Humanity Community Housing Corporation, Inc. ("SD-HFH"), has demonstrated development experience in National City and is qualified to develop or rehabilitate and subsequently sell affordable single-family residential housing and perform the other services as specified in HOME Community Housing Development Organization ("CHDO") Funding Agreement ("Agreement"); and WHEREAS, SD-HFH has been certified by the City as an eligible CHDO pursuant to the definition of such organizations contained in 24 CFR 92.2; and WHEREAS, both parties to this Agreement, SD-HFH and the City, agree that they are subject to the federal restrictions and qualifications listed in Title 24 of the Code of Federal Regulations, Part 92 ("24 CFR 92"); and WHEREAS, the CITY allocated $650,000 of federal HOME funds on May 2, 2012, that may be used for the construction and/or substantial rehabilitation of as yet not identified six single-family (6) HOME assisted housing units ("Assisted Units") for Eligible Households earning 80% of the Area Median Income for San Diego County or less; and WHEREAS, in an effort to establish a continuous source of housing development funding capacity for SD-HFH, the City has elected to permit SD-HFH to retain all net proceeds from the sale of the rehabilitated units ("CHDO Proceeds"). As a further condition of the Agreement, SD-HFH must use and restrict any and all CHDO Proceeds for the production of additional units until six (6) Assisted Units are completed and sold and the balance of CHDO Proceeds remaining after the completion of six units is committed to developing affordable housing in National City. Upon cycling the balance once, any other CHDO Proceeds will be unrestricted and not subject to HOME requirements; and WHEREAS, the CITY has also elected for SD-HFH to income qualify households, originate and process second mortgages for each qualifying household and prepare loan documents including but not limited to a HOME regulatory agreement, deed of trust, and promissory note to be executed with the City as the Beneficiary of each mortgage. Resolution No. 2012 — Page Two NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby approves the terms and conditions of the San Diego Habitat for Humanity Acquisition -Rehabilitation for Homeownership Program as specified in the HOME CHDO Funding Agreement. BE IT FURTHER RESOLVED that the City Council of the City of National City authorizes the Mayor to execute a HOME Community Housing Development Organization Funding Agreement between the City of National City and San Diego Habitat for Humanity, Inc., for the construction and/or rehabilitation of single family residential housing in the City of National City. BE IT FURTHER RESOLVED that the City Council of the City of National City authorizes the City Manager of the City of National City to execute in the name of the City of National City any loan document or agreement required for the full implementation of the activities specified under said Agreement. PASSED and ADOPTED this 30th day of October, 2012. ATTEST: Michael R. Dalia, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney Ron Morrison, Mayor Attachment No. 1 HOME CHDO FUNDING AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND SAN DIEGO HABITAT FOR HUMANITY COMMUNITY HOUSING CORPORATION, INC. FOR CONSTRUCTION AND/OR REHABILITATION OF SINGLE FAMILY RESIDENTIAL HOUSING IN THE CITY OF NATIONAL CITY This Agreement is entered into this 30th day of October, 2012, by and between the City of National City ("CITY") and San Diego Habitat for Humanity Community Housing Corporation, Inc, a California non-profit public benefit corporation ("SD-HFH"). RECITALS A. WHEREAS, City of National City ("CITY") is a recipient of funds from the United States Department of Housing and Urban Development (hereinafter "HUD"), pursuant to Title II of the National Affordable Housing Act of 1990 (42 U.S.0 12701 et seq.) as amended (hereinafter "ACT"); and B. WHEREAS, CITY desires to plan for the new construction or rehabilitation of existing housing to create affordable residential developments for the benefit of low- and moderate- households, including certain pre -development activities as allowed under HOME regulations; and C. WHEREAS, SD-HFH has demonstrated development experience in National City and is qualified to develop or rehabilitate and subsequently sell affordable single-family residential housing and perform the other services as specified in this Agreement; and D. WHEREAS, SD-HFH has been certified by CITY as an eligible Community Housing Development Organization (hereinafter "CHDO") pursuant to the definition of such organizations contained in 24 CFR 92.2; and E. WHEREAS, both parties to this Agreement, SD-HFH and CITY, agree that they are subject to the federal restrictions and qualifications listed in Title 24 of the Code of Federal Regulations, Part 92 ("24 CFR 92"); and F. WHEREAS, CITY allocated $650,000 of federal HOME funds on May 2, 2012 that may be used for the construction and/or substantial rehabilitation of as yet not identified six single-family (6) HOME assisted housing units ("Assisted Units") for Eligible Households earning 80% of the Area Median Income for San Diego County or less; and G. WHEREAS, in an effort to establish a continuous source of housing development funding capacity for SD-HFH, CITY has elected to permit SDHFH to retain all net proceeds from the sale of the rehabilitated units ("CHDO Proceeds"). As a further HOME CHDO Funding Agreement Page 1 of 21 Attachment No. 1 condition of this Agreement, SD-HFH must use and restrict any and all CHDO Proceeds for the production of additional units until six (6) Assisted Units are completed and sold and the balance of CHDO Proceeds remaining after the completion of six units is committed to developing affordable housing in National City. Upon cycling the balance once, any other CHDO Proceeds will be unrestricted and not subject to HOME requirements; and H. WHEREAS, CITY has also elected for SD-HFH to income qualify households, originate and process second mortgages for each qualifying household and prepare loan documents including but not limited to a HOME regulatory agreement, deed of trust, and promissory note to be by executed with the CITY as Beneficiary of each mortgage. NOW, THEREFORE, in consideration of the mutual benefit to be derived therefrom, CITY and SD-HFH agree to the following: 1. SD-HFH shall furnish all of the services as described in this Agreement and all attachments incorporated by this reference. 2. CITY shall advance payment or reimburse eligible costs expended by SD-HFH in the amount and pursuant to the conditions contained in this Agreement and all subsequent/supplementary documents. 3. SD-HFH shall be responsible for the professional quality, technical accuracy, timely completion and coordination of all reports and other services furnished by SD-HFH under this Agreement, except that SD-HFH shall not be responsible for the accuracy of information supplied by CITY. 4. Work to be Performed A. SD-HFH agrees to fully perform the Work and develop the Project as described in the Work Plan, attached hereto as Exhibit A and incorporated herein by reference (the "Work"). CITY reserves the right to review and approve in advance all Work to be performed by SD-HFH in relation to this Agreement. Any changes to the Work Plan described in Exhibit A proposed by SD-HFH must be approved in advance by the CITY, in writing, which approval shall not be unreasonably withheld, delayed or conditioned. B. After rehabilitation has been completed on each unit, the HOME Assisted Units will be sold to an Eligible Household at the agreed upon sales price supported by a certified appraisal at the time of sale. CITY will be the Beneficiary of a silent loan in second lien position equal to the difference between the sales price, less any down payment, and the amount of the first mortgage for which the Eligible Household has been provided a bona fide lender approval. SD-HFH will be responsible for complying with the loan guidelines and requirements under Exhibit I. SD-HFH will prepare, process, and deliver to escrow a fully executed HOME Regulatory HOME CHDO Funding Agreement Page 2 of 21 Attachment No. 1 Agreement, Deed of Trust, and Promissory under Exhibit I for each assisted unit sold to an Eligible Household. 5. Use of Funds The CITY agrees to provide to SD-HFH $650,000 for work as specified in this Agreement. In no instance shall the CITY be liable for any costs for the Work in excess of this amount, nor for any unauthorized or ineligible costs. The CITY will administer this allocation in accordance with the provisions of the HOME Final Rule, 24 CFR Part 92 and the Consolidated and Further Continuing Appropriations Act of 2012, P.L. 112- 55. 6. Conditions SD-HFH agrees to comply with all conditions of this Agreement. SD-HFH's failure to comply with these conditions may result in cancellation of this Agreement as expressly provided for in this Agreement. 7. Method of Disbursement A. SD-HFH agrees that it shall expend the funds for eligible costs within the time limits specified by 24 CFR 92.502(c)(2) and this Agreement. B. Project set-up and disbursement requirements for HOME Projects will be in conformance with 24 CFR 95.502(b) and 24 CFR 92.502(c). C. Project completion requirements for HOME projects will be in conformance with 24 CFR 92.502(d). Upon submittal of the final project drawdown request to CITY, SD- HFH must provide to CITY a project completion report in a form and content to be prescribed by CITY. In the event that the project completion report is not received by CITY, CITY may suspend all project drawdowns not yet paid until the project completion report is received and accepted. D. In the event CITY determines funds were used for ineligible expenses, further payments shall be withheld until the findings are resolved to the satisfaction of the CITY. 8. Commencement and Term This Agreement is effective upon execution by all parties. SD-HFH agrees that Work will not commence, nor will any HOME related costs be incurred or obligated before CITY executes this Agreement, SD-HFH completes all required environmental clearances, and SD-HFH complies with the applicable conditions of this Agreement. SD-HFH agrees that the Work will be completed by the date(s) specified in the Project Timeline, Exhibit B, unless a written request for an extension is approved in advance of this date and in writing by CITY; extensions will automatically be granted for circumstances outside the control of SD-HFH, but in no case will extensions be permitted that will cause the project not to be completed by June 30, 2014. Failure to complete the Work on time without a written extension from CITY constitutes a material default of this Agreement by SD- HFH. 9. Termination HOME CHDO Funding Agreement Page 3 of 21 Attachment No. 1 A. CITY may terminate this Agreement for cause by giving fourteen (14) days written notice to SD-HFH following the time allotted to cure violations per the provisions of section 10 (B) of this Agreement. Cause shall consist of any violation of the requirements of HOME or of any terms and/or conditions of this Agreement or upon violation of any local, state or federal law or regulation, or upon the request of HUD. Unless otherwise approved by the CITY, upon termination of this Agreement, SD- HFH must complete all Work in progress and terminate any other activities that were to be paid for with HOME funds. Any unexpended funds received by SD-HFH must be returned to the CITY within fourteen (14) days of the Notice of Termination. A rate of interest of six percent (6%) may be added to all funds due but not paid within fourteen (14) days of the Notice of Termination. In the event of such termination, CITY may proceed with the Work in any manner reasonably deemed proper by CITY. The actual costs reasonably and actually incurred by CITY to perform the remaining Work shall be deducted from any sum due SD-HFH under this Agreement, and the balance, if any, will be paid by SD-HFH upon demand. B. In the event that CITY notifies SD-HFH of its intention to terminate this Agreement pursuant to 10 (A) above, CITY will allow SD-HFH a time period of 30 days, to be specified in the notice of termination, for SD-HFH to cure or commence to cure the violation to CITY's satisfaction provided that if the violation is as such that it cannot be fully cured within said 30-day period, SD-HFH shall have such additional time as may be reasonably necessary to cure such violation so long as SD-HFH proceeds promptly after receipt of CITY's notification and proceeds diligently at all times to complete said cure. C. This Agreement is valid and enforceable only if sufficient funds are made available to CITY by HUD for the purposes of this program. It is mutually agreed that if Congress does not appropriate sufficient funds for the HOME Program, this Agreement will be amended to reflect any reductions in funds. In addition, this Agreement is subject to any additional restrictions, limitations, or conditions enacted by the Congress, promulgated in federal regulations or any federal statute or federal regulation which may affect the provisions, terms, or funding of this Agreement in any manner. The CITY has the option to terminate this Agreement under the fourteen (14) day cancellation clause or to amend the Agreement to reflect any reduction of funds. 10. Contractors and Subcontractors A. SD-HFH may not enter into any agreement, written or oral, with any contractor which has been deemed to be not eligible to receive HOME funds. A construction contractor or subcontractor is not eligible to receive HOME funds if the construction contractor is not properly licensed and in good standing with the State of California, Contractors State License Board, is listed on the Federal Consolidated List of Debarred, Suspended, and Ineligible Contractors, or is deemed an ineligible contractor by CITY. HOME CHDO Funding Agreement Page 4 of 21 Attachment No. 1 B. CITY reserves the right to review and disapprove any contracts or agreements executed by SD-HFH related to the Work over $25,000. Approval will be assumed unless disapproval has been made within a one week period. C. The agreement between SD-HFH and any construction contractor shall require the construction contractor and its subcontractors, if any, to: 1. Perform the Work in accordance with federal, state, and local housing and building codes as applicable. 2.. Comply with applicable Labor Standards described in Paragraph 20 of this Agreement. In addition to these requirements, all contractors and subcontractors must comply with the applicable provisions of the California Labor Code; 3. Comply with the applicable Equal Opportunity Requirements described in Paragraph 21 of this agreement; 4. SD-HFH 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 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 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 SD-HFH under this Agreement 5. Maintain, if so required by law, unemployment insurance, disability insurance and liability insurance in an amount to be determined by CITY (maximum requirements in Paragraph 11 of this Agreement) which is reasonable to compensate any person, firm, or corporation who may be injured or damaged by the contractor or any subcontractor in performing the Work or any part of it. 11. Insurance SD-HFH, 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. ❑ 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 HOME CHDO Funding Agreement Page 5 of 21 Attachment No. 1 include owned, non -owned, and hired vehicles ("any auto"). The policy shall name 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 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. The general aggregate limit must apply solely to this "project" or "location". D. Workers' Compensation Insurance in an amount sufficient to meet statutory requirements covering all of SD-HFH'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 CITY. Said endorsement shall be provided prior to commencement of work under this Agreement. If SD-HFH has no employees subject to the California Workers' Compensation and Labor laws, SD-HFH shall execute a Declaration to that effect. Said Declaration shall be provided to SD-HFH by CITY. E. The aforesaid policies shall constitute primary insurance as to CITY, its officers, employees, and volunteers, so that any other policies held by CITY shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior written notice to CITY of cancellation or material change. F. If required insurance coverage is provided on a "claims made" rather than "occurrence" form, SHDFH shall maintain such insurance coverage for three years after expiration of the term (and any extensions) of this Agreement. In addition, the "retro" date must be on or before the date of this Agreement. G. 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 VII1 according to the current Best's Key Rating Guide, or a company equal financial stability that is approved by 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. H. 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 CITY's Risk Manager. If does not keep all of such insurance policies in full force and effect at all times during the terms of this Agreement, 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. HOME CHDO Funding Agreement Page 6 of 21 Attachment No. 1 I. All deductibles and self -insured retentions in excess of $10,000 must be disclosed to and approved by CITY. 13. Inspections A. CITY may inspect any Work performed hereunder to ensure that the Work is being and has been performed in accordance with the applicable federal, state and/or total requirements, the construction contract, and this Agreement. SD-HFH agrees to require that all Work found by such inspections not to conform to the applicable requirements be corrected, and to withhold payment to the construction contractor or subcontractor until it is so corrected. B. CITY reserves the right to inspect the property at any reasonable time during normal business hours during the period of construction and throughout the period of affordability. 14. Records A. SD-HFH must maintain the following general program records for inspection by CITY, and must upon request provide to CITY copies of: 1. Records of the efforts to maximize participation by the private sector, including nonprofit corporations and for -profit corporations in all phases of the HOME program (financing, development, construction, and management) as required by 24 CFR Section 92.200; 2. Records which demonstrate that 100 percent (100%) of the homeownership assisted units are occupied by households that qualify as low-income families, as required by 24 CFR Sections 92.217 and CITY's first time homebuyer program as may be used for this project; and 3. Any other records necessary to determine that expenditures were made in accordance with this agreement. B. SD-HFH must maintain and provide copies to the CITY of the project -specific records listed below for inspection by the CITY: 1. Records which demonstrate that the combination of governmental assistance to the project is not any more than is necessary to provide affordable housing as specified in 24 CFR Section 92.250(b); 2. Records which demonstrate that the project meets the property standards specified in 24 CFR Section 92.251 and the CITY's first time homebuyer program as may be used for this project; and 3. Records which demonstrate that the homeownership requirements of 24 CFR Section HOME CHDO Funding Agreement Page 7 of 21 Attachment No. 1 92.254 for the applicable period of affordability. Records must be maintained for each family assisted. C. SD-HFH must maintain the following federal overlay records for inspection by CITY: 1. Records which demonstrate compliance with the Equal Opportunity and Fair Housing requirements outlined in Paragraph 22 of this Agreement, including: a. Data on the extent to which each racial and ethnic group and single head of household (by gender of head of household) have applied for, participated in, or benefited from, any program or activity funded in whole or in part with HOME funds as required by 24 CFR Section 92. 508( a)(7)(i)(A); b. Documentation of actions required by 24 CFR Section 92.508(a)(7)(i)(S) undertaken to meet the requirements of 24 CFR Part 135 which implements Section 3 of the Housing Development Act of 1968 (economic opportunities for low -and very low-income persons), as amended (12 U.S.C. 1701u); c. Documentation and data on the steps taken to implement outreach programs to minority -owned and female -owned businesses, as required by 24 CFR Section 92.508(a)(7)(ii), including data indicating the racial/ethnic or gender character of each business entity receiving a contract or subcontract of $25,000 or more paid, or to be paid, with HOME funds, the amount of the contract or subcontract, and documentation of SD-HFH's affirmative steps to assure that minority business and women's business enterprises have an equal opportunity to obtain or compete for contracts and subcontracts as sources of supplies, equipment, construction, and services; and d. Documentation of the actions SD-HFH has taken to affirmatively further fair housing as required by 24 CFR Section 92.508(a)(7)(i). 2. Records indicating compliance with the affirmative marketing procedures and requirements of 24 CFR Section 92.351; 3. Records which demonstrate compliance with environmental review requirements outlined in 24 CFR Section 92.352 and 24 CFR Part 58; 4. Records which demonstrate compliance with the requirements for minimizing displacement of persons, when utilizing HOME funds, as described in 24 CFR Section 92.353 and Paragraph 23(1) of this Agreement. At a minimum, these shall include project occupancy lists identifying the name and address' of all persons occupying or moving into the real property on (a) the date the Application for funding was submitted to the City if SD-HFH has site control, the date the City approves the applicable site, and the name and address of all persons who have the right to return to the project upon completion of rehabilitation; HOME CHDO Funding Agreement Page 8 of 21 Attachment No. 1 5. Records which demonstrate compliance with Labor Standards, as stated in Paragraph 21 of this Agreement and 24 CFR Section 92.354, including contract provisions and payroll records; 6. Records concerning lead -based paint in accordance with Paragraph 23(8) of this Agreement and 24 CFR Section 92.355; 7. If applicable, records which support any requests for waivers of the conflict of interest prohibition as stated in 24 CFR Section 92.356; 8. Records of certifications of contractor qualifications as they relate to the licensing and debarment and suspension requirement as stated in 24 CFR 92.350; and 9. Records which demonstrate compliance with flood insurance requirements discussed in Paragraph 23(A) of this Agreement and 24 CFR Section 92.508 (a)(7)(1 ii). D. SD-HFH must maintain the following financial records for inspection by the CITY in conformance with separate instructions: 1. Records of all account transactions, including deposits, disbursements, and balances; 2. Records supporting requests for disbursements of HOME funds and other information required under 24 CFR Section 92.502; 3. Records of written agreements and monitoring required by 24 CFR Section 92.504; 4. Financial and related records as specified in 24 CFR Section 92.508; and 5. Records of all audits and resolution of audit findings. E. If so directed by CITY upon termination of this Agreement, SD-HFH agrees to deliver all records, accounts, documentation and all other materials relevant to the Work to CITY. 15. Outreach and Marketing Marketing and outreach efforts will include the use of informational mailings, providing information at City facilities, community organizations, places of worship, employment centers, and fair housing groups, and providing periodic information sessions on the program. Outreach will include notification of program availability. Marketing brochures and pamphlets will at a minimum include the following information: 1. basic eligibility criteria, i.e. income restriction, owner occupancy, etc. 2. the statement "the program is provided without regards to race, color, religion, sex, national origin, handicap, or familial status." 3. include the use of the Equal Housing Opportunity logotype 4. program description HOME CHDO Funding Agreement Page 9 of 21 Attachment No. 1 5. loan terms During the period of the Work, the CITY may place on the property signs stating that the HOME Program is providing financing. If SD-HFH places any signs, it must indicate in typeface and size commensurate with its funding that the CITY and HUD are a source of financing through the HOME Program. Failure to do so is a material default of this Agreement. 16. Reporting Requirements Commencing with the effective date of this Agreement and continuing through the acceptance of the project completion report, no later than thirty (30) days after the end of each calendar quarter SD-HFH must submit a performance report to CITY on letterhead of the SD-HFH and describing the progress during the previous quarter and outlining anticipated upcoming key steps. 17. Audit Retention and Inspection of Records A. All records, accounts, documentation and other materials deemed relevant to the Work by CITY must be accessible at any reasonable time during normal business hours to the authorized representatives of CITY or federal government, on reasonable prior notice for the purpose of examination or audit. B. An expenditure which is not authorized by this Agreement or which cannot be adequately documented must be disallowed, and funds must be reimbursed within thirty (30) days of the discovery to the CITY by SD-HFH, unless CITY approves in writing an alternative repayment plan. C. The determination by CITY of the allowability of any expenditure will be final. D. Pursuant to 24 CFR Part 44 and OMS Circular A-133, SD-HFH must perform an annual audit at the close of each fiscal year in which this Agreement is in effect. The audit should be performed following generally accepted government auditing standards (GAGAS). The audit reports shall be made up of at least the following three parts: 1. The financial statements and a schedule of federal awards and the auditor's report on the statements and the schedule; 2. A written report of the independent auditor's understanding of the internal control structure and the assessment of control risk; and 3. The auditor's report on compliance. F. The audit must be performed by a qualified independent auditor. SD-HFH shall notify CITY of the auditor's name and address immediately after the selection has been made. F. SD-HFH must submit one copy of all required audit reports to CITY within seven HOME CHDO Funding Agreement Page 10 of 21 Attachment No. 1 months from the close of the required audit period addressed to: City of National City Housing and Grants Attn.: Jim Ridley 1243 National City Blvd. National City, CA 92139 G. SD-HFH is responsible for the completion of audits and all costs of preparing audits. H. If there are audit findings, SD-HFH must submit a detailed response for each audit finding to CITY. The CITY will review the response and, if in agreement, the audit process will end and CITY will notify SD-HFH in writing. If CITY is not in agreement, SD-HFH will be contacted in writing and told what corrective actions must be taken. This action could include the repayment of disallowed costs or other remediation. I. SD-HFH must retain all books and records relevant to this Agreement for a minimum of five (5) years after the expiration of the Agreement and any and all amendments hereto, or for three years after the conclusion or resolution of any and all audits or litigation relevant to this Agreement, whichever is later. The CITY and HUD and/or their representatives must have unrestricted access to all locations, books and records for the purpose of monitoring, auditing or otherwise examining said locations, books and records, with or without prior notice. 18. Compliance with State Law and Regulations SD-HFH agrees to comply with all state laws and regulations that pertain to the sale of real estate, construction, health and safety, hazardous substances, labor, fair employment practices, equal opportunity and all other matters applicable to SD-HFH, its subrecipients, contractors, or subcontractors, or the Work. 19. Compliance with Federal Laws and Regulations SD-HFH agrees to comply with all federal laws and regulations applicable to HOME and to the Work, and with the required federal provisions set forth in this Agreement. 20. Environmental Requirements This Agreement is subject to the provisions of the National Environmental Policy Act (NEPA) as contained in 24 CFR Part 58. As this project is refined and proceeds, and prior to the acquisition of any property for development or rehabilitation, SD-HFH shall cooperate with the CITY in the preparation and completion of all appropriate environmental documents, to include the research and, compilation of documentation, maintaining environmental files, performing site reviews, and publishing of legal notices. The CITY shall be responsible for review and approval of the environmental documents and process and making the determination whether the information HOME CHDO Funding Agreement Page 11 of 21 Attachment No. 1 is in compliance with NEPA environmental requirements. The approval of the project set-up report and release of program funds by HUD is expressly conditioned upon performance of the NEPA review work performed by SD-HFH and the CITY in a manner which is deemed satisfactory and acceptable by HUD. 21. Labor Standards All new construction or rehabilitation projects with 12 or more units assisted with HOME funds shall comply with HUD requirements pertaining to such contracts and the applicable requirements of the regulations of the Department of Labor under 29 CFR Parts 3 and 5, governing the payment of wages and the ratio of apprentices and trainees to journey persons, provided that if wage rates higher than those required under such regulations are imposed by State or local law, nothing hereunder is intended. to relieve SD-HFH or any contractor/subcontractor of their obligation, if any, to require payment of the higher rates. This project will be a self-help project with all applicable restrictions. When applicable, SD- HFH shall cause or require to be inserted in full, in all such contracts in excess of $2,000 and subject to such regulations, provisions meeting the requirements of 29 CFR Section 5.5. 22. Equal Opportunity Requirements A. The Civil Rights, State, and Age Discrimination Acts Assurances: During the performance of this Agreement SD-HFH assures that no otherwise qualified person shall be excluded from participation or employment, denied program benefits, or be subjected to discrimination based on race, color, national origin, sex, age, handicap, religion, or religious preference, under any program or activity funded by this Agreement, as required by Title VI of the Civil Rights Act of 1964, the Fair Housing Act (42 U.S.C. 3601-20) and all implementing regulations, and the Age Discrimination Act of 1975, and all implementing regulations. B. Rehabilitation Act of 1973 and the "504 Coordinator": SD-HFH further agrees to implement the Rehabilitation Act of 1973, as amended, and its regulations, 24 CFR Part 8, including but not limited to, ensuring that no otherwise qualified individual shall, solely by reason of his or her handicap, be excluded from participation (including employment), denied program benefits, or subjected to discrimination under any program or activity receiving federal funds. SOHFH shall designate a specific person charged with local enforcement of this Act, as the "504 Coordinator," if SD-HFH has fifteen (15) or more permanent full -or part time employees. Notices may be sent to: Section 504 Coordinator San Diego Habitat for Humanity Community Housing Corporation, Inc. 10222 San Diego Mission Road San Diego, California 92108 HOME CHDO Funding Agreement Page 12 of 21 Attachment No. 1 E. Training, Employment, and Contracting Opportunities for Business and Lower Income Persons Assurance of Compliance: 1. The Work to be performed under this Agreement is on a project or projects assisted under a program providing direct federal financial assistance from HUD and are subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u. Section 3 requires that to the greatest extent feasible, opportunities for training and employment be given to lower income residents of the project area and contracts for Work in connection with the project be awarded to business concerns which are located in, or owned in substantial part by persons residing in the area of the project. 2. The parties to this Agreement will comply with the provisions of said Section 3 and the regulations issued pursuant thereto by the Secretary of HUD set forth in 24 CFR Part 135, and all applicable rules and orders of the State issued thereunder prior to the execution of this Agreement. The parties to this Agreement certify and agree that they are under no contractual or other disability which would prevent them from complying with these requirements. 3. SD-HFH will send to each labor organization or representative of workers with which it has a collective bargaining agreement or other contract or understanding, if any, a notice informing the said labor organization or worker's representative of SD-HFH's commitments under the Section 3 clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training. 4. SD-HFH will include these Section 3 clauses in every contract and subcontract for Work in connection with the project over $25,000 and will. at the direction of the CITY, take appropriate action pursuant to the contract upon a finding that SD-HFH or any contractor or subcontractor is in violation of regulations issued by the Secretary of HUD, 24 CFR Part 135, and will not let any contract unless SD-HFH or contractor or subcontractor has first provided it with a preliminary statement of ability to comply with the requirements of these regulations. 5. Compliance with the provisions of Section 3, the regulations set forth in 24 CFR Part 135, and all applicable rules and orders of the CITY issued thereunder prior to the execution of the Agreement shall be a condition of the federal financial assistance provided to the project, binding upon SD-HFH, its successors, and assigns. Failure to fulfill these requirements shall subject SD-HFH, its contractors and subcontractors, its successors, and assigns to those sanctions specified by the Agreement through which federal assistance is provided, and to such sanctions as are specified by 24 CFR Part 135. D. State Nondiscrimination Clause: 1. During the performance of this Agreement, SD-HFH and its subcontractors shall not unlawfully discriminate, harass, or allow harassment against any employee or HOME CHDO Funding Agreement Page 13 of 21 Attachment No. 1 applicant for employment because of sex, race, color, ancestry, religious creed, national origin, physical disability (including HIV and AIDS), medical condition (cancer), age, or marital status. SD-HFH and subcontractors must ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. SD-HFH and Subcontractors must comply with the provisions of the Fair Employment and Housing Act (Government Code, Section 12900 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 Employment and Housing Commission implementing Government 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 Agreement by reference and made a part hereof as if set forth in full. SD-HFH 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. 2. SD-HFH must include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform Work under the Agreement. 3. Americans with Disabilities Act (ADA) of 1990 By signing this Agreement, SD-HFH assures CITY that it complies with the Americans with Disabilities Act (ADA) of 1990 (42 U.S.C. 12101 et seq.), which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. E. Assurance of Compliance with Requirements Placed on Construction Contracts of $10,000 or more: SD-HFH hereby agrees to place in every contract and subcontract for construction exceeding $10,000 a copy of Executive Order 11246, including the "Standard Equal Employment Opportunity Construction Contract Specifications." SD-HFH furthermore agrees to insert the appropriate goals and timetables issued by the U.S. Department of Labor in such contracts and subcontracts as required by Executive Order 11246. 23. Other Required Federal Provisions A. Flood Disaster Protection: This Agreement is subject to the requirements of the Flood Disaster Protection Act of 1973 (P. L. 93-234). No portion of the assistance provided under this Agreement is approved for acquisition, rehabilitation, or construction purposes as defined under Section 3(a) of said Act, for use in an area identified by the Secretary as having special flood hazards which is located in a community not then in compliance with the requirements for participation in the National Flood Insurance Program pursuant to Section 201(d) of said Act. The use of any assistance provided under this Agreement for such acquisition, rehabilitation,- or construction in such identified areas in communities then participating in the National Flood Insurance Program shall be subject to the HOME CHDO Funding Agreement Page 14 of 21 Attachment No. 1 mandatory purchase of flood insurance requirements of Section 102(a) of said Act. Any contract or agreement for the sale, lease, or other transfer of land acquired, cleared or improved with assistance provided under this Agreement shall contain, if such land is located in an area identified by the Secretary as having special flood hazards and in which the sale of flood insurance has been made available under the National Flood Insurance Act of 1968, as amended, 42 U.S.C. 4001 et seq., provisions obligating the transferee and its successors or assigns to obtain and maintain, during the ownership of such land, such flood insurance as required with respect to financial assistance for acquisition or construction purposes under Section 102(s) of the Flood Disaster Protection Act of 1973. Such provisions shall be required notwithstanding the fact that the construction on such land is not itself funded with assistance provided under this Agreement. B. Lead -Based Paint Hazards: Assistance provided under this Agreement is subject to 24 CFR Part 92 as well as subject to the HUD Lead -Based Paint regulations, 24 CFR Part 35. Funding commitments made by the CITY or SD-HFH shall be made subject to these provisions for HOME -assisted housing constructed prior to 1978. SD-HFH shall be responsible for notification, testing, abatement activities and project clearance. C. Compliance with Air and Water Acts: This Agreement is subject to the requirements of the Clean Air Act, as amended, 42 USC 1857 et seq., the Federal Water Pollution Control Act, as amended, 33 USC 1251 et seq., and the regulations of the Environmental Protection Agency (hereinafter "EPA") with respect thereto, at 40 CFR Part 15, as amended from time to time. SD-HFH shall insert or cause to be inserted in full in all contracts and subcontracts with respect to any nonexempt transaction under this Agreement, the following requirements: 1. A stipulation by the contractor or subcontractor that any facility to be utilized in the performance of any nonexempt contract or subcontract is not included on the List of Violating Facilities issued by the EPA pursuant to 40 CFR Section 15.20; 2. A stipulation that the contractor comply with all the requirements of Section 114 of the Clean Air Act, as amended (42 USC 1857c-8), and Section 308 of the Federal Water Pollution Control Act, as amended (33 USC 1318), and all regulations and guidelines issued thereunder relating to inspection, monitoring, entry, reports, and information; 3. A stipulation that as a condition for the award of the contract, prompt notice will be given of any notification received from the Director, Office of Federal Activities, EPA, indicating that a facility utilized or to be utilized for the contract is under consideration to be listed on the EPA List of Violating Facilities; and HOME CHDO Funding Agreement Page 15 of 21 Attachment No. 1 4. A stipulation that all contractors will include or cause to be included the criteria and requirements in paragraphs (a) through (c) of this section in every nonexempt subcontract and that the contractor will take such action as the government may direct as a means of enforcing such provisions. In no event shall any assistance provided under this Agreement be utilized with respect to a facility which has given rise to a conviction under Section 113(c)(1) of the Clean Air Act or Section 309(c) of the Federal Water Pollution Control Act. D. Obligations of SD-HFH with Respect to Certain Third Party Relationships: SD-HFH shall remain fully obligated under the provisions of the Agreement notwithstanding its designation of any third party or parties for the undertaking of all or any part of the program for which assistance is being provided under this Agreement. SD-HFH shall comply with all lawful requirements of the National Environmental Policy Act of 1969 (NEPA) necessary to ensure that the program is carried out in accordance with the environmental responsibilities under 24 CFR Section 92.352. E. Interest of Certain Federal Officials: No member of or delegate to the Congress of the United States and no resident commissioner, shall be admitted to any share or part of this Agreement or to any benefit to arise from the same. F. Interest of Members, Officers, or Employees of CITY, Members of Local Governing Body, or other Public Officials: No member, officer, or employee of the CITY and/or SD-HFH, or their designees or agents, no member of the governing body of the locality in which the program is situated, and no other public official of such locality or localities who exercise any functions or responsibilities with respect to the program during his/her tenure or for one year thereafter, may have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for Work to be performed in connection with the program assisted under the Agreement SD-HFH shall incorporate, or cause to be incorporated, in all such contracts or subcontracts a provision prohibiting such interest pursuant to the purposes of this section. Fulfillment of sweat equity obligations as defined in Section 8201 of the HOME regulations will not be considered a violation of this prohibition. G. Certification Regarding Lobbying SD-HFH will require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. HOME CHDO Funding Agreement Page 16 of 21 Attachment No. 1 This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and no more than $100,000 for such failure. "The undersigned certifies, to the best of his or her knowledge and belief, that: 1. No federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement; and 2. If any funds other than federally appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress-, or an employee of a Member of Congress in connection with this federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form- LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions." H. Prohibition Against Payments of Bonus or commission: The assistance provided under this Agreement shall not be used in the payment of any bonus or commission for the purpose of obtaining State or CITY approval of ,the application for such assistance, or State or CITY approval of the applications for additional assistance, or any other approval or concurrence of the State required under this Agreement, Title II of the Cranston -Gonzalez National Affordable Housing Act of 1990, or state regulations with respect thereto; provided, however, that reasonable fees for bona fide technical, consultant, managerial or other such services, other than actual solicitation, are not hereby prohibited if otherwise eligible as program costs. I. Federal Relocation, Displacement and Acquisition: If applicable, prior to project set-up, SD-HFH shall provide the CITY with a project specific relocation plan and a certification that it will comply or has complied with the federal relocation, displacement and acquisition rules governing the HOME program, which are contained in the Uniform Relocation Act, 49 CFR Part 24, and applicable program regulations. 24 CFR Section 92.353 requires that tenants who are displaced from housing units demolished or converted as a result of HOME funded activities be provided with relocation assistance. J. Drug -Free Workplace: HOME CHDO Funding Agreement Page 17 of 21 Attachment No. 1 By signing this Agreement, SD-HFH hereby certifies under penalty of perjury under the laws of the State of California that SD-HFH 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: 1. Publish a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the workplace and specifying the actions that will be taken against employees for violation of such prohibition; 2. Establish an ongoing drug -free awareness program to inform employees about: a. the dangers of drug abuse in the workplace; b. the policy of maintaining a drug -free workplace; c. any available drug counseling, rehabilitation, and employee assistance programs; and d. the penalties that may be imposed upon employees for drug abuse violations occurring in the workplace; 3. Make it a requirement that each employee to be engaged in the performance of the HOME award be given a copy of the statement required by paragraph (1); 4. Notify the employee in the statement required by paragraph (1) that, as a condition of employment under the HOME award, the employee will: a. abide by the terms of the statement; and b. notify the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five calendar days after such conviction; 5. Notify the City in writing, within five (5) calendar days after receiving notice under paragraph (4 )(b) from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to the loan officer or other designee on whose project the convicted employee was working, unless the CITY has designated a central point for the receipt of such notices. Notice shall include the identification number(s) of each affected project; 6. Take one of the following actions, within thirty (30) calendar days of receiving notice under paragraph (4)(b), with respect to any employee who is so convicted: HOME CHDO Funding Agreement Page 18 of 21 Attachment No. 1 a. Take appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or b. Require such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; 7. Make a good faith effort to continue to maintain a drug -free workplace through implementation of this section. Failure to comply with these requirements may result in suspension of payments under the Agreement or termination of the Agreement or both and SD-HFH may be ineligible for award of any future CITY contracts if CITY reasonably determines that any of the following has occurred: SD-HFH 1) had knowingly made a false certification, or 2) knowingly violated the certification by intentionally failing to carry out the requirements as noted above. 24. City Coordinator The coordinator of this Agreement for the CITY is Jim Ridley, Community Development Specialist or his/her designee. Unless otherwise informed, any notice, report, or other communication required by this Agreement shall be mailed by first class mail to the City HOME Coordinator at the following address; City of National City Housing and Grants Attn.: Jim Ridley 1243 National City Blvd. National City, CA 91950 25. Waivers No waiver of any breach of this Agreement will be held to be a waiver of any other prior or subsequent breach. The failure of the CITY to enforce at any time the provisions of this Agreement or to require at any time performance by SD-HFH of these provisions shall in no way be construed to be a waiver of such provisions nor to affect the validity of this Agreement or the right of the CITY to enforce these provisions. 26. Litigation A. If any provision of this Agreement, or underlying obligation, is held invalid by a court of competent jurisdiction, such invalidity, will not affect any other provision of this Agreement and the remainder of this Agreement shall remain in full force and effect Therefore, the provisions of this Agreement are deemed severable. HOME CHDO Funding Agreement Page 19 of 21 Attachment No. 1 B. SD-HFH must notify the CITY immediately of any claim or action undertaken by or against it which affects or may affect this Agreement or the CITY, and shall take such action with respect to the claim or action as is consistent with the terms of this Agreement. 27. NLRB Certification SD-HFH warrants by execution of this Agreement and does swear under penalty of perjury that no more than one final unappealable finding of contempt of court by a Federal Court has been issued against SD-HFH within the immediately preceding two - year period because of SD-HFH's failure to comply with an order of a Federal Court which orders SD-HFH to comply with an order of the National Labor Relations Board. 29. Miscellaneous A. Time is of the essence in this Agreement. B. If any date or time period provided for in the Agreement is or ends on a Saturday, Sunday, or federal, state, or legal holiday, then such date shall automatically be extended until 5:00 pm Standard Pacific Time of the next day which is not a Saturday, Sunday, or federal, state, or legal holiday. B. SD-HFH agrees to indemnify, defend and save harmless the City, its officers, agents and employees from any and all liability or claim of liability or claims and losses, including attorney fees accruing or resulting to any and all contractors, subcontractors, suppliers, laborers and any other person, firm or corporation furnishing or supplying work services, materials or supplies in connection with the performance of this Agreement, and from any and all liability or claim of liability or claims and losses, including attorney fees, accruing or resulting to any person, firm or corporation who may be injured or damaged by the negligent, reckless, or intentional acts, errors or omissions of SD-HFH in the performance of this Agreement. C. Without the written consent of the City, this agreement is not assignable by SD-HFH either in whole or in part D. No alteration or variation of the terms of this Agreement shall be valid unless made in writing and signed by the parties hereto, and no oral understanding or agreement not incorporated herein, shall be binding on any of the parties hereto. E. SD-HFH, and the agents and employees of SD-HFH, in the performance of this Agreement, will act in an independent capacity and not as officers or employees or agents of the City. F. This Agreement will be construed in accordance with, and governed by, the laws of the State of California. All disputes requiring the commencement of any judicial proceeding under this Agreement will have the place of venue as the South County Regional Judicial District of the County of San Diego, State of California. HOME CHDO Funding Agreement Page 20 of 21 Attachment No. 1 G. If any term, provision, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the rest of the Agreement will remain in full force and effect and shall in no way be affected, impaired or invalidated. H. The Exhibits attached hereto are hereby incorporated herein by this reference for all purposes. Exhibits A. Purchase -Rehabilitation -Resale Workplan B. Production Timeline and Development Calendar C. Purchase -Rehabilitation -Resale Budget Worksheet D. CHDO Proceeds Agreement E. Unsecured Environmental Indemnity F. Construction Requirements G. Housing Quality Standards H. Specifications and Technical Standards I. First -Time Homebuyer Assistance Program Manual IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first herein set forth. CITY OF NATIONAL CITY SAN DIEGO HABITAT FOR HUMANITY COMMUNITY HOUSING CORPORATION, INC. By: By: Ron Morrison, Mayor Lori Holt Pfeiler Its: Mayor Its: Executive Director By: Randy C. Frisch Its: Board of Directors Chairman APPROVED AS TO FORM: Claudia G. Silva City Attorney HOME CHDO Funding Agreement Page 21 of 21 Attachment No. 1 EXHIBIT A PURCHASE AND REHABILITATION WORK PLAN The purpose for the City of National City's investment of $650,000 in HUD HOME Investment Partnership funds with Habitat for Humanity -San Diego (HFH-SD) is to assist HFH-SD to purchase, rehabilitate and re -sell, as a goal, a minimum of six (6) single family homes within the city limits of the City of National City to first-time homebuyers earning 80% or Tess of the HUD determined Median Area Income by June 30, 2014. This investment partnership will turn vacant (foreclosed on or otherwise) single-family homes into lead-free/asbestos-free rehabilitated, quality affordable homeownership opportunities. To achieve these ends the City, through its certified Housing Inspectors, will provide a lead -based paint assessment and inspect each potential home purchase for existing health and safety and building code violations (un-permitted additions, garage conversions, electrical/plumbing upgrades, etc.) and HFH-San Diego will provide an asbestos assessment and then incorporate all that information into its overall rehabilitation plan for the house. This will ensure that the future buyer(s) will have a home free of problems for the long term and intervene in many of the unscrupulous practices that assisted lower income buyers to purchase inadequate housing during the last housing market boom/bust. Specific tasks related to achieving a completed purchase/rehabilitation/re-sale project are as follows: • It must be acknowledged that in order for the City to distribute the $650,000 in HOME funds pledged to the project in a timely manner to avoid the risk of paying back or returning funds to HUD the program must start out with the purchase of two homes within an approximately 30 day time frame of each other. • HFH- SD will access any and all means available to it to identify potential houses to buy. The projected cumulative budget to purchase/rehabilitate/resell a single property is $230,000 with the difference between the affordable first loan and the appraised value being rolled over into second loan at the time of re -sale. The flexibility will allow multiple permutations of purchase versus rehabilitation expenditures such as purchasing properties in good condition needing only upgrades to purchasing homes with potential for resale which need major rehabilitation work. The latter scenario provides the overall best Attachment No. 1 return to the City, from a community development perspective, by removing problem properties from the housing stock and returning them to viability. • For project expediency, once a house has been selected HFH-SD should contact the City and arrange for an inspection and record review as soon as possible to best facilitate determining the scope of work to be pursued. Seller permission is required if such inspection occurs before escrow has been entered into and/or escrow instructions must indicate that such an inspection will occur. The City at this time will also facilitate submission of the HOME Program required historic structures review and perform the rest of the required HUD environmental documentation. • HFH-SD will, during this time (or immediately after the close of escrow), provide a rehabilitation Scope of Work for the City's review and approval incorporating the City's Health & Safety report into the overall rehabilitation plan. The Scope of Work will include a budget with a 10% contingency. The rehabilitation budget can include the cost of an after -rehabilitation market appraisal to establish the final sales price. • Prior to the close of escrow for the initial purchase, the City will deposit the required funds to facilitate the transaction. • When the Scope of Work has been finalized the City, immediately after the close of escrow, will deposit the rehabilitation budget amount plus the flat rate of $30,000 per unit Developer's Fee into a Dixieline Fund Control account to fund the rehabilitation activities on the house. Any unused construction funds will be left in the Fund Control until such time as they can be rolled over into the Fund Control for the next house. Up to $20,000 of the flat rate Developer's Fee can be extracted during the rehabilitation process with the remaining $10,000 to be paid when the sale to the new owner has been completed. • HFH-SD must establish a separate bank account to deposit sales proceeds from each house it sells. Co -mingling of funds is unacceptable. A copy of the bank statement should be provided to the City each month. • HFH-SD can use prior sales proceeds to enter into the next home purchase and the City will continue to fund the rehabilitation and project management costs as detailed above until the entire $650,000 in HOME funds have been distributed. HAZARDOUS MATERIALS NOTIFICATION Asbestos • Materials containing asbestos (ACM) that are to be removed as a condition of contract shall be removed and disposed of in a proper and safe manner by a Attachment No. 1 certified asbestos abatement contractor or in accordance with locally - approved disposal standards. • See California Code of Regulations, Title 8, Section 1529 for laws and regulation detailing asbestos removal and disposal. • See California Asbestos Consultants and Certified Site Technicians • Database from the California Department of Occupational Safety • and Health to make sure the testing consultants and demolition • technicians are certified by the State of California. • See www.sdasbestos.orq for San Diego County asbestos information • and resource site. • No asbestos containing materials shall be used for repair, replacement or • new installation. • Assessment of the need to test for asbestos will be made by the City inspector prior to issuing the bidding specifications. Lead -Based Paint • Every unit constructed before 1978 which is or may become occupied by children under the age of seven must be tested for the presence of lead (exceeding Federal Standards) in paint. Testing and assessment services will be provided by the City Lead Inspector/Assessor at no cost. • Lead based paint must be abated in accordance with federal regulations. The HUD regulation requires that lead -based paint must be abated (completely removed or encapsulated in such a way that it is rendered harmless for a minimum of 20 years.) • Lead waste can be very hazardous to human health and must be disposed of in accordance with applicable laws and regulations. This Guidance is intended to help property owners and contractors understand how to correctly dispose of lead waste when performing lead abatement activities or renovation work that disturbs old paint. Please Note: When the painted surfaces of pre-1979 structures are scraped, sanded, or demolished, You must assume that the paint debris created by this work is hazardous waste. If a certified laboratory confirms otherwise, documentation is required. Separate the paint debris and any other lead - contaminated waste from the rest of your trash and follow the disposal procedures detailed below. Lead -contaminated waste that must be properly disposed of includes rags that were used to wipe away lead -contaminated dust and vacuum cleaner bags that contain lead paint chips. These are common examples of lead waste that must be disposed of correctly. Attachment No. 1 EXHIBIT B PRODUCTION TIMELINE AND DEVELOPMENT CALENDAR Project Timeline Assumptions: • Assume close to parallel purchase of two homes to start program once agreement is fully executed • Assume 120 day construction schedule once construction funds are in place for each project • Assume buyer solicitation starts at close of escrow of first two houses purchased for rehabilitation and resale Estimated Individual Project Development Timeline: • 30 days to find house(s) after agreement is fully executed • HFH enters 30 day escrow • City sends historic properties to SHPO to get 30 day clearance and completes HUD environmental review • Preliminary inspection by City for Health & Safety/Lead- based paint within 20 days of closing (or sooner if there is seller permission in place)- SD-HFH checks for asbestos at earliest opportunity • Rehabilitation Plan and Budget to City within 20 days of receiving City inspection report • City reviews Plan/Budget and agreement is reached within 20 days of receiving proposed Plan/Budget • Once purchase escrow has closed City deposits funds in Dixieline Fund Control within 20 days of Plan/Budget agreement (rehab + project costs) or within five days of closing if agreement is reached during the escrow term • Construction term is approximately 120 days from the deposit of construction funds • Sale to new owner is approximately 165 days from start of construction • HFH establishes "escrow" account to keep 1st mortgage proceeds from home sales to establish fund account for future purchases. Estimated Long Term Calendar • 1st house completion -April 15, 2013 • 2nd house completion- July 15, 2013 • 3rd house completion- October 15, 2013 • 4th house completion- February 15, 2014 • 5th house completion- May 15, 2014 • 6th house completion- to be determined Attachment No. 1 EXHIBIT C HFH PURCHASE/REHAB/RE-SALE BUDGET PROJECTION $ 650,000.00 BEGINNING PROJECT BALANCE $ (380,000.00) $ (80,000.00) $ (60,000.00) PURCHASE OF HOUSE #1 & HOUSE #2 Rehab cost/2nd loan HFH project payment $ 190,000.00 $ (190,000.00) $ (40,000.00) $ (30,000.00) from House #1 PURCHASE OF HOUSE #3 rehab cost/2nd loan HFH project payment $ 190,000.00 $ (190,000.00) $ (40,000.00) $ (30,000.00) from house #2 PURCHASE OF HOUSE #4 rehab cost/2nd loan HFH project payment $ 190,000.00 $ (190,000.00) $ (40,000.00) $ (30,000.00) from house #3 PURCHASE OF HOUSE #5 rehab cost/2nd loan HFH project payment $ 190,000.00 CHDO Proceeds from house #4 $ 190,000.00 CHDO Proceeds from house #5 $ 380,000.00 HFH CHDO PROCEEDS BALANCE AFTER HOUSE #5 $ (190,000.00) $ (40,000.00) $ (30,000.00) PURCHASE OF HOUSE #6 rehab cost/second loan HFH project payment $ 190,000.00 CHDO Proceeds from House #6 Attachment No. 1 $ 310,000.00 RESTRICTED HFH CHDO PROCEEDS BALANCE AFTER HOUSE #6 TO BE USED FOR ADDITIONAL AFFORDABLE HOUSING DEVELOPMENT IN NATIONAL CITY. NOTE: ONCE THESE FUNDS HAVE BEEN CYCLED THROUGH HOUSING DEVELOPMENT ACTIVITIES THEY BECOME UNRESTRICTED CHDO PROCEEDS NOT SUBJECT TO HOME REQUIREMENTS. $ 180,000.00 TOTAL PROJECT DEVELOPMENT PAYMENTS TO HFH AFTER THE PURCHASE/REHAB/RESALE OF SIX SINGLE FAMILY HOMES Attachment No. 1 Exhibit D CHDO Proceeds Agreement This Agreement between the City of National City and San Diego Habitat for Humanity ("the CHDO") for the use, allocation, accounting, and monitoring of proceeds realized by the CHDO in the performance of the CHDO's contractual obligations to the Jurisdiction. 1. Definitions a. Project i. A project is any single address. b. Proceeds: i. Proceeds result from the sale of a single family property financed by the Jurisdiction through the HOME program. 1. Proceeds include both HOME funds and any other funds from any source which are realized by the sale of property assisted in any form or fashion with HOME funds. ii. The total HOME funds provided by the Jurisdiction to the CHDO for any specific project under this contract, less the actual expenses for the project, the buyer's down payment, the buyer's contribution, the project fee to the developer and any non -HOME or non-CDBG mortgages are defined as CHDO Proceeds, or Proceeds. c. Allowable Use: i. An eligible activity defined by either the HOME program regulations or this agreement that directly supports the creation of affordable housing in CITY shall be collectively known as an "allowable use." Allowable uses are further defined and limited by this agreement. d. Governing Law and Regulation i. Final HOME Rule: 24 CFR Parts 91 and 92 ii. CPD Notice 97-9 2. Allowable Uses of Proceeds a. Any eligible use of HOME funds, as defined in 24 CFR Parts 91 and 92 of the Final HOME Rule shall be an allowable use under this contract, so long as the allowable use results in or supports the creation of new units of affordable single family housing for purchase by HOME qualified buyers. 3. Prohibited Uses of Proceeds a. Proceeds may not be used to fund, finance or pay for a loan counseling, debt counseling or homebuyer counseling programs or efforts as long as the Jurisdiction provides funding to any other organization or entity to provide these services. Attachment No. 1 b. Proceeds may not be used to fund any operating reserves of the CHDO. c. Proceeds may not be utilized to make repairs, reconstruct, or rebuild any unit previously financed with HOME funds without the express written permission of the Jurisdiction. 4. Accounting a. The CHDO shall retain proceeds in a separate bank account and shall provide an accounting of the use of proceeds to the Jurisdiction on a quarterly basis. i. The accounting shall designate the project and show the flow of funds into and out of the project account until all funds in the account are expended in accordance with this agreement. b. To facilitate proper accounting for the proceeds, the CHDO shall utilize the spreadsheet designated by the Jurisdiction and included here by reference. c. The auditor of the CHDO shall, at each annual audit, review the CHDO proceeds account of the CHDO and shall include in the annual audit specific language stating whether or not th CHDO has complied with the terms of this agreement. 5. Allocation and Use of Proceeds a. Under the CHDO's contract with the Jurisdiction, the Jurisdiction provides the CHDO with a development subsidy to assist in the development of single family housing within the Jurisdiction. b. The development subsidy is expended by the CHDO to build the home. c. Proceeds are realized upon the sale of the completed home to a qualified buyer per the definition provided above. i. Proceeds are realized on the date of the close of the property with the homebuyer. d. To facilitate the quick rollover and expenditure of proceeds, the CHDO will invest proceeds in the next available project as soon as the proceeds are realized, and before a request for additional funds for development activity from the Jurisdiction. 6. Draw Requests a. Requests to the Jurisdiction for disbursement of funds for land acquisition, site development and/or construction financing on any subsequent project under this contract, shall include the following: i. The full amount of the requested disbursement. 1. The amount drawn from proceeds a. Including the project name or names the amount is drawn from. Attachment No. 1 2. The net amount of the requested disbursement. 7. Monitoring and Compliance a. Each year, on or before the 31' of March, the CHDO shall deliver an audit by a certified public accountant to the Jurisdiction. i. The audit shall contain the provision noted under accounting. b. The Jurisdiction may request at any time, without prior notice, any file, financial record, or document related to any project that received any HOME funds or Proceeds. i. The CHDO agrees to comply with any request within five business days of the request. c. The Jurisdiction will monitor the CHDO's use of Proceeds based on a risk assessment. Typically, the Jurisdiction will notify the CHDO thirty days in advance of the monitoring. d. Failure by the CHDO to deliver the audit, to submit the required quarterly report, segregate the Proceeds in a separate account, or to properly account for the Proceeds to the standard provided shall by this agreement, shall be a breach of contract under the terms of this Agreement. i. The Jurisdiction, may, at the Jurisdiction's sole discretion, end all payments under the contract until the terms of this Agreement are met. Attachment No. 1 EXHIBIT E UNSECURED ENVIRONMENTAL INDEMNITY AGREEMENT THIS UNSECURED ENVIRONMENTAL INDEMNITY AGREEMENT ("Indemnity") is dated as of this day of , 20XX, by San Diego Habitat for Humanity, Inc., a California nonprofit corporation ("Indemnitor"), to and for the benefit of the City of National City ("CITY"), its successors and assigns and, to the extent not otherwise referenced, the Indemnified Parties (as hereinafter defined). RECITALS A. CITY has agreed to make a grant ("Grant") to Indemnitor as described in that certain CHDO Funding Agreement between CITY and Indemnitor, dated as of , 20XX ("Agreement"). B. It is a condition of CITY's making the Grant that this Indemnity be executed and delivered by Indemnitor. CITY is making the Grant in reliance upon this Indemnity. C. This Indemnity is unsecured. D. This Indemnity Agreement provides blanket indemnity for all properties purchased with Grant funds as described in the Agreement referenced above. AGREEMENT NOW, THEREFORE, in consideration of the foregoing and of CITY granting the Funds, and other valuable consideration, the receipt of which is hereby acknowledged, Indemnitor agrees as follows: 1. Indemnity. (a) Subject to Sections 2, 3 and 4 below, Indemnitor hereby agrees to defend, protect, indemnify and hold harmless CITY, CITY's affiliates, directors, officers, shareholders, agents and employees, and CITY's participants, successors and assigns specified in Section 4 hereof (hereinafter, collectively, the "Indemnified Parties"), from and against, and shall reimburse the Indemnified Parties for, any and all actual out-of-pocket costs (including, without limitation, attorneys' fees, expenses and court costs), expenses or losses arising from any claim, liability, damage, injunctive relief, injury to person; property or natural resources, fine, penalty, action or cause of action (collectively, "Costs and Liabilities"), incurred by or asserted against any Indemnified Party and arising directly or indirectly, in whole or in part, out of the release, discharge, deposit or presence, or alleged or suspected release, discharge, deposit or presence, of any Hazardous Materials at, on, within, under, about or from the Property, or in or adjacent to any part of the Property, or in the soil, groundwater or soil vapor on or under the Property, or elsewhere in 1 Attachment No. 1 connection with the transportation of Hazardous Materials to or from the Property in violation of any Hazardous Materials Laws, whether or not known to Indemnitor or Indemnified Parties, whether foreseeable or unforeseeable, regardless of the source of such release, discharge, deposit or presence or, except as expressly provided to the contrary in Sections 2 and 4 hereof, regardless of when such release, discharge, deposit or presence occurred or is discovered. Without limiting the generality of the foregoing indemnity, such Costs and Liabilities shall include, without limitation, all actual out- of-pocket costs incurred by Indemnified Parties in connection with (i) determining whether the Property is in compliance with this Indemnity and with all applicable Hazardous Materials Laws or the amount of money required to remediate any environmental contamination, and causing the Property to be or become in compliance, with all applicable Hazardous Materials Laws, (ii) any removal or remediation of any kind and disposal of any Hazardous Materials present at, on, under or within the Property or released from the Property to the extent required by applicable Hazardous Materials Laws in effect at the time of such removal, remediation or disposal, and (iii) repair of any damage to the Property or any other property caused by any removal, remediation or disposal. (b) Upon demand by any Indemnified Party, Indemnitor shall defend any investigation, action or proceeding in connection with any claim or liability, or alleged claim or liability, that would, if determined adversely to such Indemnified Party, be covered by the foregoing indemnification provisions, such defense to be at Indemnitor's sole cost and expense and by counsel reasonably approved by such Indemnified Party, which counsel may, without limiting the rights of an Indemnified Party pursuant to the next succeeding sentence of this Section 1(b), also represent Indemnitor in such investigation, action or proceeding. If any Indemnified Party determines reasonably and in good faith that its defense by Indemnitor is being conducted in a manner which is prejudicial to its interests, such Indemnified Party may elect to conduct its own defense through counsel of its own choosing and at the expense of Indemnitor. (c) As used herein, the term "Hazardous Materials" means and includes any flammable, explosive, or radioactive materials or hazardous, toxic or dangerous wastes, substances or related materials or any other chemicals, materials or substances, exposure to which is prohibited, limited or regulated by any federal, state, county, regional or local authority or which, even if not so regulated, may or could pose a hazard to the health and safety of the occupants of the Property or of property adjacent to the Property, including, but not limited to, asbestos, PCBs, petroleum products and byproducts, substances defined or listed as "hazardous substances" or "toxic substances" or similarly identified in, pursuant to, or for purposes of, the California Solid Waste Management, Resource Recovery and Recycling Act (California Government Code §66700 et seq.), the Comprehensive Environmental Response, Compensation, and Liability Act, as amended (42 U.S.C. §9601, et seg.), the Hazardous Materials Transportation Act (49 U.S.C. §1801, et seq.), the Resource Conservation and Recovery Act (42 U.S.C. §6901, et seg.), Section 25117 or Section 25316 of the California Health & Safety Code; and any so-called "Superfund" or "Superlien" law, or any other federal, state or local statute, law, ordinance, code, rule, regulation, order or decree regulating, relating to or imposing liability or standards of conduct concerning any hazardous, toxic or dangerous waste, substance or material; or any substances or mixture regulated under the Toxic Substance Control Act of 1976, as now or hereafter amended (15 U.S.C. §2601 et sec,.); and any "toxic pollutant" under the Clean Water Act, as now or hereafter amended (33 U.S.C. § 1251 et seq.); and any hazardous air pollutant under the Clean Air Act, as now or hereafter amended (42 U.S.C. §7901 et seq.). Notwithstanding the above, the term "Hazardous Materials" shall not include small amounts of 2 Attachment No. 1 chemicals, cleaning agents and the like commonly employed in routine household uses in a manner typical of occupants in other similar residential properties provided they are used in compliance with applicable laws. The term "Hazardous Materials Laws" means any federal, state or local law, code, statute, ordinance, rule, regulation, rule of common law or guideline relating to Hazardous Materials now or hereafter enacted or promulgated (collectively, and including, without limitation, any such laws which require notice of the use, presence, storage, generation, disposal or release of any Hazardous Materials to be provided to any party). 2. Time Limits on Claims. Notwithstanding the foregoing provisions: (a) No claim shall be made hereunder by any Indemnified Party unless and until the following event shall have occurred: vesting of title to the Property in CITY or any Indemnified Party through judicial or non judicial foreclosure or acceptance of a deed in lieu thereof. (b) Indemnitor shall not have any obligation under this Indemnity to an Indemnified Party with respect to any Costs and Liabilities that, prior to the first to occur of the events described in Section 2(a) above: (i) were actually known to CITY; (ii) were liquidated in amount, or were otherwise readily determinable in amount without undue delay; and (iii) would have been lawfully and properly includable as part of any breach of the Grant Agreement (c) If any Indemnified Party or any affiliate of any Indemnified Party has acquired ownership of the Property through foreclosure or deed in lieu of foreclosure, the obligations of Indemnitor hereunder shall apply, without limitation, to all Costs and Liabilities that arise out of or are attributable to, whether directly or indirectly, ownership of the Property or any part thereof by any Indemnified Party or any such affiliate, or to the position of such Indemnified Party or such affiliate as an owner in the chain of title to the Property or any part thereof. (d) If the requirements of the Grant Agreement has been completed in full the obligations of Indemnitor hereunder shall continue to apply, without limitation, to all Costs and Liabilities that arise out of or are attributable to, whether directly or indirectly, any claim or allegation against an Indemnified Party relating to any act or omission of such Indemnified Party in respect of the Loan or the Property, or in connection with any exercise of such Indemnified Party's rights under the Grant Agreement. 3. Acts of Indemnified Parties. (a) Notwithstanding anything to the contrary herein, Indemnitor shall not be liable hereunder to an Indemnified Party to the extent of that portion of any Costs and Liabilities which Indemnitor establishes is attributable to an affirmative act of such Indemnified Party, its agent or any successor in interest of an Indemnified Party at the Property which causes (i) the release, discharge, deposit or presence, or alleged or suspected release, discharge, deposit or presence of a Hazardous Material at the Property, or (ii) material aggravation of a then existing Hazardous Material condition or occurrence at the Property, if and only if, in either such case referred to in (i) or (ii) above, such act was in violation of any Hazardous Materials Laws or was carried out without reasonable care under the circumstances. 3 Attachment No. 1 (b) In addition, Indemnitor shall not be liable hereunder for that portion of any Costs and Liabilities which Indemnitor establishes is attributable to the introduction and initial release, discharge or deposit, or alleged or suspected introduction, initial release, discharge or deposit of a Hazardous Material at the Property by any party, other than Indemnitor or an affiliate of Indemnitor, at any time after Indemnitor's ownership interest in the Property terminates. Notwithstanding the foregoing, but subject to Sections 2 and 3(a) above and Section 4 below, the liability of Indemnitor hereunder shall otherwise remain in full force and effect after CITY or such affiliate of CITY so acquires title to the Property, including without limitation with respect to any Hazardous Materials which are discovered at the Property after the date CITY or such affiliate of CITY acquires title but which were actually introduced to the Property prior to the date of such acquisition. 4. Indemnified Parties. This Indemnity and Indemnitor's obligations hereunder shall inure to the benefit of and be enforceable only by (a) CITY, CITY's directors, officers, shareholders, agents and employees, (b) any person or entities to which any CITY participates, assigns or sells all or any portion of its interest in the Loan, or which otherwise succeeds to the interest of CITY under the Agreement, whether by purchase or otherwise, and (c) any affiliate of CITY which acquires title to the Property at a foreclosure sale or by deed in lieu of foreclosure. 5. Unsecured Obligations. The obligations of Indemnitor hereunder are unsecured. This Indemnity is not intended to be, nor shall it be, secured by the Deed of Trust or any other instrument or agreement executed by Indemnitor or any other entity or person in favor of CITY or any Indem- nified Party relating to the Grant. The obligations of Indemnitor under this Indemnity are independent of any indemnification or other obligations of Indemnitor under the Grant Agreement with respect to any Hazardous Materials. The rights and remedies of the Indemnified Parties under this Indemnity shall be in addition to any other rights and remedies of such Indemnified Parties under the Agreement. In no event shall any provision of this Indemnity be deemed to be waiver of or to be in lieu of any right or claim, including without limitation any right of contribution or other right of recovery, that any person entitled to enforce this Indemnity might otherwise have against Indemnitor under any Hazardous Materials Laws. Any sums payable hereunder shall not be deemed to be based upon any diminution in or other impairment of the value of any collateral held by CITY to enforce the Grant requirements. 6. Interest on Unpaid Amounts. Any amount claimed hereunder by an Indemnified Party not paid by Indemnitor within thirty (30) days after written demand made by such Indemnified Party and accompanied by a reasonable summary of the amounts claimed, shall bear interest at the rate of ten percent (10%) per annum or the highest interest rate permitted by law, whichever is less. 7. Limitations on Liability. The liability of Indemnitor under this Indemnity shall in no way be limited or impaired by (a) any amendment or modification of the provisions of any of the Loan Documents; (b) except as set forth in Sections 2, 3 and 4, any participation in or sale or assignment of the Loan Documents or any sale or transfer of all or part of the Property; (c) the release of Indemnitor or any person or entity from performance or observance of any of the agreements, covenants, terms, or conditions contained in any of the Loan Documents by operation of law; and, in any such case, whether with or without notice to Indemnitor and with or without consideration. Except as provided in Sections 2, 3 and 4, Indemnitor's obligations hereunder shall in no way be impaired, reduced or released by reason of (i) an Indemnified Party's omission or delay in exercising 4 Attachment No. 1 any right described herein or (ii) any act or omission of an Indemnified Party in connection with any notice, demand, warning, or claim regarding violations of codes, laws or ordinances governing the Property. 8. Recourse Obligations. Notwithstanding anything to the contrary in the Loan Documents, Indemnitor shall be personally liable on a recourse basis for the obligations of Indemnitor set forth herein. 9. Successors and Assigns. This Indemnity shall be continuing, irrevocable and binding upon each of the persons and entities comprising Indemnitor and their respective heirs, successors, and assigns. 10. Inconsistencies. In the event of any inconsistencies or conflicts between the terms of this Indemnity and the terms of the Grant Agreement (including any exculpatory language contained therein), the terms of this Indemnity shall control. 11. Separate Causes of Action. A separate right of action hereunder shall arise each time an Indemnified Party acquires knowledge of any matter described herein. Separate and successive actions may be brought hereunder to enforce any of the provisions hereof at any time and from time to time. No action hereunder shall preclude any subsequent action. 12. Severability. If any provision of this Indemnity shall be determined to be unenforceable in any circumstances by a court of competent jurisdiction, then the balance of this Indemnity never- theless shall be enforceable, and the subject provision shall be enforceable in all other circumstan- ces. 13. Attorneys' Fees. In any action or proceeding brought by the Indemnified Parties to enforce any rights under this Indemnity, the prevailing party shall be entitled to all reasonable attorneys' fees and all costs, expenses and disbursements in connection with such action. 14. Notices. Any notice, demand, request or other communication which any party hereto may be required or may desire to give hereunder shall be in writing and will be effectively served upon personal delivery or, if mailed, no later than 48 hours after deposit in first class or certified United States mail, postage prepaid, sent to: To CITY: To Developer: City of National City 1243 National City Boulevard National City, CA 91950-4397 San Diego Habitat for Humanity, Inc. 10222 San Diego Mission Road San Diego, CA 92108 which addresses may be changed by written notice. 5 Attachment No. 1 15. Governing Law. This Indemnity shall be governed by and construed in accordance with the laws of the State of California. 16. Counterparts. This Indemnity may be executed in any number of counterparts and, as so executed, the counterparts shall constitute one and the same agreement. The parties agree that each such counterpart is an original and shall be binding upon all the parties, even though all of the parties are not signatories to the same counterpart. 17. Exhibits and Recitals Incorporated. All exhibits referred to in this Indemnity, if any, are hereby incorporated in this Indemnity by this reference, regardless of whether or not the exhibits are actually attached to this Indemnity. The Recitals to this Indemnity are hereby incorporated in this Indemnity by this reference. 18. Signature Authority. All individuals signing this Indemnity for a party which is a corporation, limited liability company, partnership or other legal entity, or signing under a power of attorney, or as a trustee, guardian, conservator, or in any other legal capacity, covenant to the CITY that they have the necessary capacity and authority to act for, sign and bind the respective entity or principal on whose behalf they are signing. 6 Attachment No. 1 EXHIBIT F CONSTRUCTION REQUIREMENTS San Diego Habitat for Humanity's receipt of HOME funds for purposes of paying construction related costs in connection with the Project is conditioned upon the SD-HFH adherence to certain construction requirements imposed by the City in connection with the Project, including, without limitation, the requirements set forth in this EXHIBIT F. 1. Submittals and Review Procedure; Construction Monitoring (a) Submittal requirements shall include the following: (i) SD-HFH shall submit to the City a Project team -staffing plan ("Staffing Plan") for review and approval by the City. The Staffing Plan shall show all component functions and reporting relationships. (ii) SD-HFH shall submit to the City a Scope of Work with a corresponding line item budget as support for any request for funds. SD-HFH shall make sure they are familiar with the City of National City building permit requirements and apply for any and all permits as required. (iii) SD-HFH shall provide to the City a copy of the approved building permit and any construction drawings required to receive said permit. (b) The City will provide construction monitoring oversight of the Project. SD- HFH shall maintain at the job site adequate records and shall permit site access to the City at all reasonable times to accommodate the monitoring activities. The monitoring program may include, but is not limited to, the following: attendance at job site meetings; review of job correspondence; site inspections; pay request reviews and approvals; 2. Loan Disbursement and Requisitions. Requests to the City for construction progress payments ("Progress Payments") by the SD-HFH under the terms of this Agreement are to be made on the basis of percentage of work completed to the date of each such request. Dixieline Fund control will be contracted to distribute funds, obtain invoices, and require execution of appropriate lien releases from all contractors and material suppliers pursuant to California mechanics lien law. Requests will be made per Dixieline's adopted fund control format. If a site visit is required by the City, the City agrees to perform the Site Visit within two working days of receipt of the request. The Attachment No. 1 City shall have up to four business days to approve the request from the original date of the request. Time is of the essence in the processing of requests. 3. Insurance (a) The purpose of this Section is to establish insurance requirements. (b) SD-HFH shall require that any contractor working on a project shall procure and maintain at Contractor's expense the following insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work by such Contractor, its agents, representatives, or employees that the contractors shall otherwise meet the insurance requirements set forth below: (i) Comprehensive General Liability: $500,000 combined single limit for each occurrence ($1,000,000 General Aggregate) for bodily injury, personal injury and property damage, and products and completed operations coverage for all subcontractors. (ii) Automobile Liability: $1,000,000 combined single limit per accident for bodily injury and property damage covering owned, non -owned and hired vehicles. (iii) Workers Compensation as required by the Labor Code of the State of California and Employers Liability limits of $1,000,000 per accident. (iv) SD-HFH shall furnish the City upon request, copies of certificates of insurance maintained by it (and all subcontractors and sub - subcontractors) with original endorsements affecting coverage as required above. 4. Construction Budget Changes. The line item construction budget may be subject to change from time to time based on possible change orders and/or changes in the scope of work. Provided there is adequate contingency remaining in the construction budget to cover such change, the Borrower may approve any changes in the line item construction budget up to the greater of $2,500 or 10% of the original line item amount without the approval of the City. The City shall have the right to approve any changes above the aforementioned limits. The Borrower agrees to provide the City with an updated construction budget within 10 days of any such change. Attachment No. 1 EXHIBIT G HOUSING QUALITY STANDARDS These housing rehabilitation/construction standards are intended as a guide for housing assisted with United States Department of Housing and Urban Development (HUD) HOME Investment Partnership Program (HOME) funds and/or any other public funding sources. All HOME and other publicly assisted housing must, upon completion, be affordable, decent, safe, and sanitary. As such, assisted housing must meet or exceed these standards and all local codes, zoning and ordinances. With the exception of locally adopted variations, all habitable structures assisted with HOME must meet these standards. New construction shall comply in full with all applicable codes and regulations. The City of National City reserves the right to insist on repair of any item which, in accordance with this standard: 1. renders a property unsafe and/or unsanitary; 2. constitutes a major building system in danger of failure; 3. fails to meet applicable codes. SUBSTANDARD CONDITIONS When substandard conditions are encountered in a unit to be rehabilitated with HOME Program funds, all substandard items must be addressed. Any building or portion thereof which is determined to be an unsafe building in accordance with the Building Code or Housing Quality Standards, or any building or portion thereof including any dwelling unit in which there exists any conditions that endangers life, limb, health, property, safety, or welfare of the public or occupants thereof shall be deemed to be substandard. • Structural Hazards. Buildings or portions thereof shall be deemed substandard when they are or contain structural hazards. Structural hazards shall include, but not be limited to, the following: • Deteriorated or inadequate foundations • Defective or deteriorated flooring or floor supports Attachment No. 1 • Flooring or floor supports of insufficient size to safely carry imposed loads • Members of walls, partitions or other vertical supports that split, lean, list, or buckle due to defective material or deterioration • Members of walls, partitions, or other vertical supports that are of insufficient size to carry imposed loads with safety • Members of ceilings, roofs, and supports or other horizontal members which sag, split or buckle due to defective material or deterioration • Members of ceilings, roofs, and supports or other horizontal members that are of insufficient size to carry the imposed loads with safety • Condition of stairs, railings and porches that are hazardous or not sound • Potential for collapse of the chimney or the chimney is not capable of safely carrying smoke, fumes and gasses from the unit to the outside • Hazardous Electrical Wiring. Electrical wiring which was installed in violation of code requirements in effect at the time of installation or electrical wiring not installed in accordance with generally accepted construction practices in areas where no codes were in effect or which has not been maintained in good condition or which is not being used in a safe manner shall be considered substandard. • Hazardous Plumbing. Plumbing which was installed in violation of code requirements in effect at the time of installation or plumbing not installed in accordance with generally accepted construction practices in areas where no codes were in effect or which has not been maintained in good condition or which is not free of cross -connections or siphoning between fixtures shall be considered substandard. • Hazardous Mechanical Equipment. Mechanical equipment which was installed in violation of code requirements in effect at the time of installation or mechanical equipment not installed in accordance with generally accepted construction practices in areas where no codes were in effect or which has not been maintained in good and safe condition or which is not being used in a safe manner shall be considered substandard. • Faulty Weather Protection. Buildings or portions thereof shall be considered substandard when they have faulty weather protection. This is defined as conditions that would allow significant amounts of water or air to enter the unit which would result in damage such as the following: • Deteriorated, crumbling or loose plaster or stucco • Deteriorated or ineffective waterproofing of exterior walls, roof, foundation or floors, including broken windows or doors Attachment No. 1 • Broken, split, rotted or buckled exterior wall coverings or roof coverings • Visible internal water damage that indicates roofing failure • Faulty Materials of Construction. The use of construction materials which are not specifically allowed or approved by the Building Code, or the use of approved materials which have not been adequately maintained in a good and safe condition, shall cause a building to be substandard. • Hazardous or Unsanitary Premises. The accumulation of weeds, vegetation, junk, dead organic matter, debris, garbage, offal, rat harborages, stagnant water, combustible materials and similar materials or conditions on a premises shall constitute fire, health or safety hazards and shall be abated. • Improper Occupancy. All buildings or portions thereof occupied for living, sleeping, cooking or dining purposes which were not designed or intended to be used for such occupancies shall be deemed substandard. Structures with additions or modifications must comply with applicable building codes. Substandard workmanship, unsafe items, or hazardous situations are not acceptable. If repair of these items is not cost effective, the addition or modification must be demolished. The requirements outlined in this document do not preempt local or state codes or ordinances, nor do they alter or affect a contractor's obligation to comply with local or state law or requirements. AD new work must conform to local codes. Any work performed shall not cause existing buildings to become unsafe. Existing buildings legally constructed in the past shall be considered acceptable today unless they do not conform to specific local retroactive requirements as detailed in the locally enforced building codes. RESIDENTIAL HOUSING STANDARDS Structural Requirements • General. Residential structures may be of any type of construction that is permitted by the Building Code. Roofs, floors, walls, foundations, and all other structural components of the building shall be capable of resisting any and all forces and Toads to which they may be subjected. All structural elements shall be proportioned and joined in accordance with the stress limitations and design criteria as specified in the appropriate sections of the Building Code. Buildings of every permitted type of construction shall comply with the applicable requirements of the Building Code. Attachment No. 1 • Shelter. Every building shall be weather protected as to provide shelter for the occupants against the elements and to exclude dampness. The roof covering shall be capable of accommodating required Toads as specified in the Building Code. The roof shall provide a barrier against the weather to protect the supporting elements and the structure beneath. Roof covering materials shall be approved and installed in a manner consistent with the manufacturer's requirements and in accordance with the Building Code. • Protection of Materials. All wood shall be protected against termite damage and decay as provided for in the Building Code. • Foundations. The foundation and its' structural elements shall be capable of accommodating all superimposed live, dead, lateral, and all other loads in accordance with accepted foundation design practices. Lots shall be provided with adequate drainage and shall be graded as to drain surface water away from foundation walls. Finish grade shall be below floor grade as per the Building Code minimum requirements. Space and Occupancy Requirements • Location on Property. Newly constructed buildings shall be located with respect to property lines and to other buildings on the same property as required by the Building Code. • Light. Habitable rooms within a dwelling unit shall be provided with natural Tight by means of exterior glazed openings (i.e. windows, skylights) with a minimum opening area of 10 square feet. Habitable rooms include those for living, sleeping, cooking and eating. Bathrooms, closets, halls, storage or utility space are not considered habitable rooms. • Ventilation. Habitable rooms within a dwelling unit shall be provided with natural ventilation by means of operable exterior openings (i.e. windows, doors) with a minimum opening area of 5 square feet. Bathrooms, laundry rooms, and similar rooms shall be provided with natural ventilation by means of operable exterior openings with a minimum opening area of 1'/ square feet. In lieu of required exterior openings for natural ventilation, a mechanical ventilation system may be installed providing the number of air changes to meet code for the room being ventilated. Sanitation Requirements • Plumbing Systems. An acceptable plumbing system consists of three separate parts: an adequate potable water supply system; a safe, adequate drainage system; and ample fixtures and equipment. All installations shall be consistent with the Building Code. • Septic Systems. A septic tank with the field located away from the house is acceptable in rural areas. Documentation or certification is to be obtained Attachment No. 1 from the local health department or authorized local agency indicating that it is an approved sanitary system. • Bathrooms. Each unit must have a bathroom. The bathroom must be in a separate room with a flush toilet in operating condition. The unit must have a shower or a tub with hot and cold water in operating condition. These facilities must be connected to an approved disposal system. The facilities may be scattered within the unit (such as a toilet in one enclosure and washbasin in another area. The washbasin or sink must have a gas trap (drain trap). Floors of bathrooms shall be resistant to damage from water or dampness. • Kitchens. Each dwelling unit shall be provided with a kitchen which is defined as being a separate room or area of a larger room which is used primarily for preparation of meals and storage of food. A bedroom with a refrigerator in it cannot be defined as a kitchen. Defined by facilities contained, a kitchen or kitchen area must have a separate kitchen sink for preparing food and washing dishes, with piped hot and cold water which drains into an approved system, a stove for cooking food, a refrigerator for storing food and facilities for the sanitary disposal of food and refuse. The sink shall be of a nonabsorbent material. All appliances must be free of hazardous conditions including a damaged or broken stove, sink or refrigerator that endangers users. There must be no evidence of gas or water leakage that presents the danger of fire or electrical shock. The stove and refrigerator must be free of potential hazards due to improper hookup. • Fixtures. All plumbing fixtures shall be connected to a sanitary sewer or to an approved private sewage disposal system. All plumbing fixtures shall be connected to an approved system of water supply and be provided with hot and cold running water, except water closets may be provided with cold water only. All plumbing fixtures shall be of an approved nonabsorbent material. All sanitary facilities shall be installed and maintained in a safe and sanitary condition and in accordance with applicable requirements of the Building Code. Mechanical System(s) Requirements • Heating. Dwelling units shall be provided with heating facilities capable of maintaining a room temperature of 70° F. (21.1°C.) at a point 3 feet above the floor directly or indirectly in all rooms used for living. Such facilities shall be installed and maintained in a safe condition and in accordance with all applicable laws and requirements of the Building Code. Un-vented fuel - burning heaters are not permitted. Wood, wood pellet or similar heating devices must be installed according to the manufacturer's directions and according to applicable requirements of the Building Code. All heating devices and wood burning heaters shall be of an approved type. • Evaporative Cooling Systems. Evaporative cooling systems shall be installed according to the manufacturer's guidelines. Evaporative cooling systems Attachment No. 1 shall be installed so as to minimize the probability of damage from an external source. Every evaporative cooler shall be accessible for inspection, service and replacement without removing permanent construction. • Electrical Equipment. All dwelling units shall be connected to electrical power. Every habitable room shall contain at least one electrical convenience outlet and at least one electric light fixture. Every water closet compartment, bathroom, and laundry room shall contain at least one GFCI type electrical convenience outlet and one electric light fixture. Every kitchen shall have at least two GFCI type electrical convenience outlets and one electric Tight fixture. • Water Heaters. Gas water heaters may not be in bedrooms or other living areas unless safety dividers or shields are installed. Water heaters are to be properly installed and maintained with adequate venting, relief valves and discharge lines conforming to current Uniform Plumbing Codes. • Ventilation. Ventilation for rooms and areas and for fuel burning appliances shall be provided as required in the Building Code. Ventilation systems shall be maintained in good operational order. Safety Requirements • Attached Garages. Garages attached to dwelling units shall be completely separated from the residence and its' attic area by means in accordance with the Building Code. Openings from a private garage directly into a room used for sleeping purposes shall not be permitted. Other openings between a garage and residence shall be equipped with a properly fire rated self closing door as prescribed by the Building Code. Garage and carport floor surfaces shall be of approved noncombustible material. That area of floor used for parking vehicles shall be sloped to facilitate the movement of liquids toward the main vehicle entry doorway. • Exits. Dwelling units shall have access directly to the outside or to a public corridor. All buildings or portions thereof shall be provided with exits that meet the local Building Code, Fire Code or considered adequate by the appropriate local officials. Sleeping rooms shall have at least one operable window or exterior door approved for emergency egress, escape, or rescue. The unit must be operable from the inside to a full clear opening without the use of separate tools. • Smoke Detectors. Each unit must have at least one hardwired (with battery backup) smoke detector in proper operating condition on each level of the dwelling unit, including basements but excluding crawl spaces and unfinished attics. Smoke detectors are to be installed inside of each separate sleeping area or bedroom, in the corridor giving access to each separate sleeping area, and where there is a ceiling elevation change of two feet or more. Detectors must be installed in accordance with and meet the requirements of Attachment No. 1 National Fire Protection Association Standard (NFPA) 74. If the unit is occupied by any hearing -impaired person, smoke detectors must have an alarm system designed for hearing impaired persons as specified by NFPA. Attachment No. 1 EXHIBIT H HOUSING REHABILITATION PROGRAM SPECIFICATIONS AND TECHNICAL STANDARDS The specifications on the following pages are incorporated by reference into every rehabilitation contract entered into through the City of National City Residential Rehabilitation Program (NCRRP). The standard specifications are grouped by trade and include general and specific requirements for various rehabilitation tasks. All demolition, additions, alterations, modifications, repairs, or improvements to property(s) and/or structure(s) performed shall fully comply with the following regulations. The table below provides information on the regulatory components that are referred to collectively herein as "local building code". These various components, taken singularly or in total, provide the regulatory framework for the standards below and have precedence over the standards. KNOW THE CODES!!! City of National City Municipal Code Title 14 (Water and Sewer) City of National City Municipal Code Title 15 (Building and Construction) City of National City Municipal Code Title 18, Chapter 18.50 (Fences, Walls, Hedges) City of National City Municipal Code Title 18, Chapter 18.54 (Landscaping) City of National City Municipal Code Title 9, Chapter 9.12 (Fire Hazard Abatement) City of National City Municipal Code Title 9, Chapter 9.16 (Garbage) California Health and Safety Code Division 13- Housing Part 2.5 2010 California Building Code 2010 California Plumbing Code 2010 California Electrical Code 2010 California Mechanical Code Attachment No. 1 2010 California Fire Code 1997 Uniform Housing Code 2010 California Energy Code 2010 Green Building Standards. • California Code of Regulations, Title 8, Section 1529 (Asbestos Regulations) Residential Lead -Based Paint Hazard Reduction Act of 1992 (Public Law 102-550) as amended through April 21, 2005. HUD Lead Safe Housing Rule HUD Title X, Sections 1012, 1013, 1018 EPA Lead Renovation, Repair and Painting Program- June 23, 2008 California Civil Code 1941.1& California Health & Safety Code 17920.10, 17961, 17980, 10525 to 105257 (Lead Safe Housing and Lead Hazards) Fair Housing for HOME Program Participants- released 2005 Fair Housing Act Design Manual- amended 1998 NOTES: Substitutions: It is not desired of the Owner to exclude any product of quality equal to those specified herein or in the Invitation to Bid. Trade names are generally used only to establish the level of quality desired, but before any substitutes are made, the approval of the Owner and NCRRP Staff must be obtained. Measurements: All measurements and sizes stated or implied in the Invitation to Bid are approximate only, and shall be verified by the contractor on -site. Applicability: In the event of a conflict between these Standard Specifications and the Invitation to Bid, the latter shall govern. Not all tasks for which bids might be solicited can be specified in this Manual. Tasks for which methods and materials are not specified will be performed as indicated in the Invitation to Bid and in accordance with the best practices of the trade. SITE WORK DEMOLITION AND DEBRIS General Instructions: Demolition work shall conform to the requirements of all applicable codes, ordinances and utility company regulations. Existing shrubs and trees to remain shall be protected until demolition is complete and the site is cleared. Areas of grass killed by demolition or by storage of debris and other materials shall be raked clean, leveled, and re -seeded, unless Attachment No. 1 otherwise noted in the work list. All debris must be removed prior to final inspection and all areas be left in a neat condition. GRADING Yards: Yards scheduled to be graded will be filled and/or raked smooth to finish grade that ensures proper drainage of the lot. Backfill material shall be clean and free from debris, with no wood scraps. It will be placed according to acceptable practices. Where applicable, the top 4 inches shall be top soil suitable for plant growth. Rough grading shall establish a sub -grade parallel to and approximately 4 inches below the proposed finished grade. Finished grading shall ensure that surface and ground water does not collect either under slabs or at the outside face of basement and foundation walls. All surfaces adjacent to foundation or basement walls shall slope a minimum of 2% (1/4" inch per foot) to ensure adequate surface runoff. In no case shall surface waters be diverted into adjacent private property. Crawl Spaces: No wood surface shall be closer than 6 inches to any soil. If a moisture problem is evident in the crawl space, grading shall be done to take surface water to best outfall. When a furnace is installed in a crawl space, grading shall be done according to clearances defined in Chapter Seven of the 2007 California Mechanical Code. Grading shall be done to take water away from furnace location. All scrap wood and concrete forming materials shall be removed from crawl spaces. Site Drainage: All local ordinances regulating the disposal of storm water, including type of piping, shall be followed. Crushed Rock Surfaces: Remove any large rocks or foreign material. Where substantial depressions exist, remove existing materials, fill with dense, well drained soil and grade to obtain a uniform surface. Top with crushed rock in sufficient amount to achieve a total depth of 4 inches. Crushed rock surfaces shall not be installed on grade in excess of 7% (7/8" per foot). The surface shall be crushed rock no less than 4 inches in depth. Borders shall be provided at all perimeter edges to retain rock. LANDSCAPE Shrubs: When shrubs are to be removed, they shall be removed complete with roots. Any depressions shall be filled with topsoil and the entire area raked smooth and clean. New Planting: Type and size of new shrubs shall be as indicated in the work list. Trees: When trees are scheduled to be removed, they shall be cut to a point as close to the finish grade as possible. The NCHPP/owner may elect to have the stump(s) ground to ground level. All debris shall be removed and the entire area shall be raked and/or broom swept clean. Attachment No. 1 CONCRETE GENERAL INSTRUCTIONS When patching concrete, apply a bonding agent prior to application of flush patching material. New concrete shall not be placed on extremely wet or frozen ground, and no concrete shall be placed when temperature is less than 40 degrees F. or greater than 90 degrees F., unless it is properly protected and controlled in accordance with recommendations of the American Concrete and the Portland Cement Association. The type of footing, foundation or slab system used shall be determined by load bearing capacity of the soil. Soils of low bearing capacity necessitate provisions for greater Toad distribution. On fill material, footings shall extend to undisturbed soil unless the fill has been sufficiently compacted to insure against excessive differential or overall movement of the structure. PAVING Sidewalks: Sub -grade shall be well drained and uniformly graded 3-1/2 inches below finish grade. New concrete shall be at least 3-1/2 inches thick (@2,500 psi minimum). Finish surface of new sidewalks shall be approximately parallel with that of adjacent soil; sidewalks shall be constructed so as not to impede drainage of surface water away from the house and off the property. Contraction (control) joints shall be placed 4 to 5 feet apart, but never more than 2-1/2 times in feet the thickness of the slab in inches. Depth of joint shall be 1/4 to 1/5 the thickness of the slab. Width of new concrete sections shall be as indicated in the work list but will never be less than 36 inches wide. Wearing surfaces shall be floated with a wood float and receive a light broom finish. Concrete shall be properly sealed with a curing agent meeting ASTM standard 309 or kept moist for a period of three (3) days to ensure proper curing. FLATWORK Deck Slabs and Patios: New deck slabs and patios shall be a minimum of 3-1/2 inches thick (@ 2,500 psi minimum). Slab shall be reinforced as needed for each installation. Provide flashing between the slab and wood construction. Slope the deck slab to drain away from the foundation wall. Wearing surfaces shall be troweled and have non-skid texture. Control joints shall be provided for all flatwork in accordance with industry standards. Floor Slabs at or Below grade: Base for slab shall be well -compacted 4 inch sand -gravel sub - grade. New slab shall be a minimum of 4 inches thick (@ 2,500 psi minimum). When available, slope concrete to floor drains. Surfaces shall be troweled smooth. FOOTINGS Pier Blocks: New pier blocks shall be pre -cast or poured units. Block shall extend a minimum 4 inches above finished floor elevation or 6 inches above earth. They shall have the same or larger top dimensions as the wood posts. Bottom dimension will be a minimum of 12 inches square. Pier blocks shall have steel anchoring pins or recessed pockets. Attachment No. 1 Post and Pier Footings (@2,500 psi minimum): Footings supporting wood piers shall extend from a point at least 12 inches below grade to a point 6 inches above grade. They shall have the same or larger top dimension as the piers. Bottom dimensions will vary with the footing design. Pier blocks shall have steel anchoring pins or recessed post pockets. Footings supporting masonry piers shall extend at least 12 inches below grade and have the same top dimensions as the piers or a minimum of 12 inches by 12 inches. Footings supporting a second floor load must meet requirement FOR STRUCTURAL CALCULATIONS DETAILING SOIL CONDITION, LOAD CALCULATIONS, EARTHQUAKE STANDARDS, and ETC. AS PER CURRENT BUILDING CODE REQUIREMENTS. Footings for wood posts shall extend from a point at least 12 inches below finished floor elevations to a point at least 4 inches above; footing shall have the same top dimension as the post. When necessary to remove a section of existing floor slab, cut out a 12 inch by 12 inch section using a masonry saw or chisel. Dovetail edges so that the opening at the bottom of the slab is larger than the opening at the top. Remove enough earth to pour new concrete. Footing shall sit on a 4 inch sand gravel base. Provide steel anchoring pin or galvanized brackets. Finish concrete to match adjacent surfaces. WALLS Retaining Walls: New walls shall be gravity or cantilever type. They shall be structurally sound and durable. Design walls to resist the lateral pressure exerted by the earth behind the wall, including that material above the top of the wall. Retaining walls shall extend at least 12 inches below grade and have a 6 inch wide layer of gravel, crushed rock or sand between the earth and the wall, extending the full height of the wall. Provide reinforcement as needed and construction joints at 30 foot intervals. Place weep holes 10 feet on center and at the lowest point possible above grade. All weep holes shall be screened. All retaining walls constructed adjacent to the public way shall have the design approved by the local planning/public works department prior to commencement of work. Foundation Walls: New walls shall be no less than 6 inches wide for wood frame and 8 inches for masonry or masonry veneer and shall extend below finish grade as required for the particular installation. Footing dimensions shall be determined by the thickness of the wall. Provide reinforcement where needed. Concrete shall be poured continuously and vibrated to remove air pockets. Where continuous pouring is not possible, provide construction joints with reinforcement for transfer of stress. All wall openings shall be properly reinforced. Any existing walls, intersecting walls, porch or entrance slabs, or areaways shall be anchored to the new wall. One half (1/2) inch diameter anchor bolts shall be set no more than 8 inches into the concrete at 8 foot intervals, or 6 foot intervals in earthquake design areas. The top of the foundation wall shall be carefully finished and leveled for the sill plate. For foundation walls on basement houses or where conditions warrant, the exterior face of the wall shall have at least one coat of bituminous damp proofing material from footing to finish grade. New 4 inch drain piping shall be placed at the perimeter of the footing, if required by ground conditions, and connected to a storm sewer system or natural outlet. Backfill material shall be an appropriate Attachment No. 1 sand gravel mixture for proper soil drainage, and the top 3 inches be topsoil suitable for plant growth. Replace sod or install new sod. STEPS Poured Steps: New steps shall be as wide as the sidewalk and at least 6 inches to each side of the entry door. The treads shall be a minimum of 9 inches, the risers a maximum of 7 1/2 inches and a minimum of 4 inches. Rise and run shall have a variance of no more than 3/8 inch throughout flight. Provide 1/8 inch pitch for drainage. Wearing surfaces shall be troweled and have a non-skid texture. Porch and steps will be poured a minimum of 2 inches below grade. MISCELLANEOUS FORM WORK Sump Pump Wells: New wells shall have at least 8 cubic feet capacity. Wells in crawl spaces shall have 4 inches of gravel in the bottom. The crawl area shall be trenched to the well and gravel installed where specified. Discharge from a well in a crawl space shall be to a code approved outlet. A sump well in a basement discharging to the sanitary sewer shall be vented as required by Section 409 of the Uniform Plumbing Code. MIX DESIGN Footings, foundations, etc., shall be 2,500 psi minimum. Outside slabs, porches, stairs, driveways, sidewalks and patios shall be 2,500 psi or 5.5 sack minimum with 5% ± 1.5% air entrainment. Concrete pours should not exceed 3" - 4" slump. Calcium chloride is not to be used as a curing accelerator. MASONRY GENERAL INSTRUCTIONS Existing masonry units may be reused if undamaged and cleaned. New masonry units shall be true to size without cracks, chips, or other defects. New masonry units shall match existing as closely as possible. Repair and replace as specified in work write up. Where fresh masonry joins existing, the exposed surface of the set masonry shall be clean and lightly wetted so as to obtain the best possible bond with the new work. Lay masonry units plumb, square and properly anchor by keying units or utilizing manufactured ties. Lay all courses with a full mortar bed and tool all exposed joins. All grouted cells shall be vibrated twice. The color of mortar shall match existing as closely as possible. Where applicable, back parge masonry below grade. Mortar shall be protected from freezing until it has set. Thoroughly clean all exposed new masonry and all repair areas. All new and repaired masonry installed below grade shall be sealed. REPOINTING — TUCKPOINTING Rake out all old mortar to a depth equal to the width of the joint or 1/2 inch, whichever is greater. All deteriorated and loose mortar shall be removed, regardless of depth. Re -mortaring shall be Attachment No. 1 done as specified under general instructions above. Trowel all mortar joints to a hard, smooth, water tight surface, matching the shape of the original joint. Remove all excess mortar and thoroughly clean all repaired areas. PARGING: Parging is applying a smooth coat of mortar on a foundation wall. The end result shall be a uniform smooth finish completely covering all exposed surfaces. Parging shall also include raking out old mortar to depth 1/2 inch. Deteriorated and loose mortar shall be removed regardless of depth. CHIMNEY REPAIRS When a chimney is to be repaired, this shall include re -pointing, replacing damaged or missing masonry and installing a new cap or flue extension • New chimney cap shall be at least 4 inches thick at the outside edge and shall slope away from the flue. • New flue extension shall be 5/8 inch fire clay. Joints shall be close fitting and left smooth on the inside. The top of the flue lining shall be at least 4 inches above the top of the chimney. CHIMNEY RELINE Chimney relines, stainless steel or inflatable form fire clay, shall be done in accordance with all applicable building and fire codes. WALLS Retaining Walls: New walls shall be structurally sound and durable. Walls shall be designed to resist the lateral pressure exerted by the earth behind the wall, including the material above the top of the wall. Masonry walls shall be constructed in accordance with the recommendations of the National Concrete Masonry Association. They shall have a 6 inch wide layer of gravel, crushed rock or sand between the earth and the wall, extending the full height of the wall. Block shall be set in full mortar beds with joints tooled smooth, except where the exposed surface is to be parged. Reinforce block laterally and vertically where needed and fill cavities containing reinforcement with mortar. Place weep holes 10 feet on center, and at the lowest point possible above grade. All weep holes shall be screened. The top course shall contain a bond beam or be capped to provide a finished surface. All retaining walls constructed adjacent to the public way shall have the design approved by the local planning/public works department prior to commencement of work. Block Foundation Walls: New walls shall be a minimum of 8 inches thick and shall have poured in place concrete footings not less than 6 inches thick that extend below finish grade as require by the particular installation. Block face shells shall provide a 1-1/2 inch wide mortar bed. The first course shall be set in a full mortar bed. Joints shall not exceed 3/4 inch and shall be tooled smooth, except those on an exterior face being parged. The joints between wall and footing shall be tight and have a cove of elastic caulking compound on the exterior side. Stack bond shall be laterally reinforced every second course. Provide other reinforcement where needed, Attachment No. 1 or specified. Location of control joints shall be determined by the height of the wall. The top course shall be filled or capped with at least 4 inches of solid masonry or wire mesh reinforced concrete, unless the sill plate board rests on both inner and outer face shells. Anchor bolts shall be placed no more than 6 feet on center and extend through sill and cap and two filled courses. Walls shall be bonded, keyed, or anchored to existing and intersecting walls. Porch and entrance slabs and areaways shall be anchored to the wall. All openings in the wall shall be covered with at least one coat of Portland Cement parging no less than 3/8 inch thick. Walls shall have at least one coat of bituminous damp proofing material from the footing to finish grade. New 4 inch drain piping shall be placed at the perimeter of the footing if required by ground conditions, and connected to a storm sewer or natural outlet. Backfill material shall be an appropriate sand gravel mixture for proper soil drainage. The top 3 inches shall be topsoil suitable for plant growth. Replace sod or install new sod unless otherwise specified. MISCELLANEOUS METAL WORK Ornamental Metal Handrails, Railing and Columns: New handrails, railings and columns shall be installed complete with all posts, rails, pickets, base plates, rail supports, etc. Posts shall be 1 inch square heavy gauge steel tubing. Metal shall be wrought iron. Railings shall be single - welded construction, railings welded t posts. Railings shall be securely anchored to porches, steps, retaining walls, etc., and when installed on new concrete, posts shall be embedded in concrete. Railing heights shall be as determined by code. Ornamental metal shall be factory primed or factory finished. Pickets shall be a minimum of 1/2 inch square tubing or solid bar. Scrolls shall be a minimum of 1/8 inch by 1/2 inch flat bar. Prefabricated chimneys & Vents: All prefabricated chimneys, vents, and vent connectors installed for use with any fuel burning appliance shall be installed in accordance with the manufacturer's specifications. CARPENTRY GENERAL INSTRUCTIONS Carpentry: All rough and finish carpentry shall be accomplished in such a manner as to provide true, straight, square, plumb, level and rigid assemblies. Framing Lumber: All softwood framing lumber shall be #2 or better fir except for non -bearing partitions. Good quality hemlock (hem/fir) may be used for non -bearing partitions. Framing lumber for girders, beams posts, columns and other structural members shall be of a species and grade which will provide sufficient strength and rigidity to support the design load without exceeding the allowable stresses consistent with good engineering practices, and shall conform to Chapter 25 of the Uniform Building Code. All framing lumber shall be identified by the grade mark of a recognized grading association. The moisture content of the lumber shall not exceed 19% at the time of installation. New lumber in contact with masonry shall be Attachment No. 1 pressure treated. All framing members shall be accurately fitted and securely connected to each other in accordance with Table 25-D, Chapter 25 of the Uniform Building Code. Board Lumber: The grade of board lumber shall be suitable for its intended use. In general, loose knots or knot holes shall not exceed 1/3 of the width of the piece. Splits are unacceptable. Boards with defects may be used if the defects are sawed out. Lumber shall bear the label of a recognized grading association. Moisture content shall not be above 19% at the time of installation. Plywood: Plywood shall bear the label of a recognized grading association as to grade and type. Type and grade shall be suitable for its intended use as designed and shall be installed in accordance with Chapter 25 of the Uniform Building Code. Finish Lumber: All finish lumber shall be dressed free of tool marks and other objectionable defects. Lumber for exterior trim and millwork shall be kiln -dried or otherwise seasoned; moisture content shall not be above 19%. All wood for interior wood trim shall be thoroughly kiln -dried to withstand dry artificial heat; it shall not be installed until all plaster is thoroughly dried out. Exterior wood trim and millwork shall be at least #2 or "D" cedar, except that casing for doors and windows may be of clear pine or fir. New wood for interior trim shall match existing as closely as possible in shape, size, and species. If not available, select pine or fir may be used to manufacture trim of the same style and shape. ROUGH CARPENTRY Wood Porches: When a new porch is scheduled to be built complete, it shall include piers, footings, beams, joists, 5/4 x 4 tight knot cedar decking, or other decking material as specified, railings if specified, 3 foot wide steps and a roof if specified. The size of the porch shall be as indicated on the worklist. Treads shall be treated (outdoor wood) unless otherwise specified. Non-skid strips shall be installed when specified. Rise and run shall be according to Chapter 33 of the Uniform Building Code. Wood Steps: When new steps are scheduled to be installed with rise and run the same as existing, they shall include new stair jacks, treads and risers. Treads and risers shall all be even but exceed requirements of Chapter 33 of the Uniform Building Code to maintain limited headroom to a non -living or storage area. FINISH CARPENTRY Instructions for Wood Trim and Millwork: Exterior wood trim which cannot be repaired by re - nailing shall be replaced. Existing interior trim which is broken, splintered, cracked, chipped, warped or otherwise defective shall be replaced with new material. When drywall is being installed over existing wall finish and cannot be butted up to existing trim, room shall be re - trimmed (including door and window casings). All trim within a room shall be similar. Insofar as practical, new trim and millwork shall be delivered ready to be put in place. Moldings shall be clean cut and sharp. Single lengths of wood shall be used whenever practical. Splicing or piecing of finish work shall be done with mitered joints over a solid backing. Finger jointed Attachment No. 1 material is unacceptable for natural finish wood trim. Tooled materials shall be planed or sanded smooth. The woodwork shall be installed level and plumb, be scribed neatly to the walls and be secured firmly in place. Exposed nails used in fabrication and installation shall be finishing nails, set 1/8 inch deep. The scribing, mitering and jointing shall be secured to prevent separation. External corners shall be mitered. Protect finish woodwork until time of painting. Cabinet Hardware: Hardware to be replaced shall include various knobs, catches, drawer slides, drawer rollers, etc., necessary when building a cabinet. When scheduled to be installed, all of the above found to be worn, defective or missing shall be replaced. New hardware shall be brass or aluminum finish. All miscellaneous hardware within a room shall be similar in style and finish. Mixing painted with unpainted hardware is unacceptable. Repairing Kitchen Cabinets: All damaged or missing doors, drawers and shelving shall be repaired or replaced as indicated in the worklist. Doors shall be properly aligned and shall operate freely. Drawer guides or slides shall be repaired or replaced as scheduled so that drawers slide or roll easily. Kitchen and Bath Cabinets: Contractor shall verify in the field all cabinets and countertop dimensions listed in the Invitation to Bid or shown on the drawings. Cabinet style and finish shall be indicated in the contractor's bid as per specifications and/or related cost allowances. Should new cabinets adjoin existing acceptable cabinets, the new cabinets shall match existing cabinets as closely as possible. Both wall and base cabinet assemblies shall be custom built on the job or consist of individual units joined into continuous section, and with the exception of drawer cabinets, all units shall be fully enclosed with backs, bottoms and panels, including tops for wall cabinets. Face framed, when used, shall be of necessary thickness to provide rigid construction. Corner and lineal bracing shall be provided where needed to insure rigidity and proper jointing of components. Adjustable shelves shall be supported on ends and every 18 inches front and back. All shelves shall be solid wood, edge banded plywood or fiber board type material. Cabinets shall have all wood frames with face frames constructed of solid hardwood. Drawer and door fronts may be constructed of plywood or fiberboard type material faced with birch, oak, or similar hardwoods. Drawer and door front shall match cabinet fronts. Cabinet backs and sides may be particle board with a plastic or wood veneer covering. Base cabinets that are designed to rest directly on the floor shall provide a toe space at least 2 inches deep and 3 inches high. All exposed construction joints shall be fitted in a workmanlike manner, nails shall be set and holes shall be filled. Swinging doors shall have a device sufficient to hold doors closed. The device may be spring catch, magnetic catch, self -closing hinges or equivalent. Doors shall be properly aligned and operate freely. Drawers shall have drawer guides with nylon glides and shall slide easily. Cabinet finish shall be clean and free from scratches and other defects. All wood surfaces, inside and out, shall be finished and sealed. Cabinet units shall be installed level, plumb and true to line. They shall be fastened to suitable grounds as per manufacturer's instructions. New upper cabinets shall be attached with wood screws; nailing cabinets is not acceptable. Use closers, filler strips and finish moldings when needed for sanitary and appearance purposes. Upper cabinets shall be set 16-18 inches above Attachment No. 1 the countertop and 24 inches at sink. At the range there shall a 30 inch clearance to the bottom of the upper cabinet and 24 inches to the bottom of the range hood. Cabinets at the refrigerator shall be set to clear existing refrigerator. Countertops: Top materials shall be high pressure plastic laminate, at least 1/16 inch thick, securely bonded to the base material. Countertops made on site shall use void free exterior grade plywood or high density particle board for base material. Provide 1-1/2 inch front edges and, unless specified otherwise, 4 inch back splash and end splashes. Color and pattern shall be chosen by the owner. Should new countertop adjoin existing, the new material shall match existing as closely as possible. If a new sink is not scheduled to be installed, re -installing the existing sink shall be part of the countertop installation. Metal Bathroom Accessories: All bath accessories shall be chrome plated unless otherwise specified. All locations shall be checked with owner prior to installation. Bath accessories specified for handicapped must comply with any and all California and Federal requirements (Fair Housing, ADA, etc.) THERMAL AND MOISTURE PROTECTION Insulation: Insulation work shall comply with specifications on the Invitation to Bid and current California Title 24 Energy Efficiency Standards. A certificate of insulation shall be posted on site and a copy sent to the NCRRP. SIDING General Instructions: Remove all damaged sections before repairing existing siding. Sheathing and framing behind siding must be solid. New siding shall match existing as closely as possible. Apply siding with corrosion resistant nails long enough to penetrate into studs, blocking and wood sheathing. Head lap and coursing shall be required to prevent entrance of moisture into walls. Stagger joints in adjacent pieces of horizontal siding. Replace all trim incidental to this repair and caulk all joints, paying particular attention to where siding abuts trim or other material. Porch Skirting: New skirting shall be as specified in the Invitation to Bid. When new skirting is scheduled to be installed, existing skirting is to be removed completely. Install sufficient framing or backing for new skirting. All wood shall be at least 6 inches above grade. Vinyl Siding: Prior to starting work, the contractor shall examine the exterior of the house, including the fascia and soffited areas, to determine if any additional repairs need to be completed that will affect the proper installation of the siding. If any unforeseen repairs are needed, the contractor will contact NCRRP Staff and request a change order. New vinyl siding shall also include, unless otherwise specified, the following: window and door wraps, fascia and soffited wraps, belly bands, porch trim and all exposed beams, posts and/or columns. Attachment No. 1 New vinyl siding shall have a lifetime manufacturer's warranty. Use aluminum or galvanized steel nails with 5/16 inch to 3/16 inch diameter head and avoid face nailing where possible. All nails should penetrate solid lumber a minimum of 3/4 inch excluding point. When going over 1/2 inch plywood sheathing, use screw shank nails with full penetration of the sheathing. The contractor shall provide manufacturer's warranty information to the homeowner upon completion of the work. ROOFING AND SHEATHING General Instructions: Prior to starting work, the contractor shall examine the roof to determine that all repairs affecting roofing have been completed as scheduled. When new metal chimney, vent stack, roof vent, etc. are scheduled to be installed, the contractor shall cooperate with other contractors in installing flashing and counter flashing. This contractor shall also install new flashing in place of all damaged, deteriorated or missing flashing incidental to the repair or new installation. New flashing shall be installed in all valleys. The contractor shall seal all roof openings and exposed roof edges, chimneys, porch roofs, dormers, skylights and vents, with plastic asphalt cement as needed to insure water tight joints. Roofing shall be applied in accordance with the recommendations of the manufacturer. Once it has been started, the roof application shall not be delayed, except when absolutely necessary due to inclement weather. Each layer of roofing felt shall have been surfaced or glazed by the end of the working day. Should inclement weather arise it is the responsibility of the contractor to provide adequate protection of the structure and is contents. When a new roof is installed, roof vents shall be installed to provide adequate ventilation in all attic areas as per current building codes. New roofing installation shall conform to the requirements for the Underwriter's Laboratories, Inc. Class C label or better; a copy of the guaranteed fire classification shall be provided to the owner. New roofing material shall have a minimum 25 year manufacturer's guarantee. When existing roofing is brittle, badly cupped, or rotted, new material shall not be placed over existing. Final determination will be made by NCRRP staff. The quality of materials and workmanship for repairs shall meet the same standards as new installation. The contractor shall make repairs or replacements needed to roofing, flashing, drip edges, cant strips, gravel stops, etc. to provide a water proof installation. When removing damaged sections of existing roofing, replace asphalt saturated felt. Color, size and texture and type of new roofing material shall match existing as closely as possible. Asphalt or Fiberglass Roofing: For repair, since new shingles shall match existing in type, repair procedure may vary from that for re -roofing with new seal downs. Therefore, install new shingles as per manufacturer's recommendation to provide a watertight Class C label roof. For new installations, when going over existing roofing, exposed edges shall be cut back to the edge of the eaves and new metal drip edge installed. New roof shingles shall provide at least double coverage at all points, including both eaves and rake edges. All new roof installations shall have metal drip edges. If the gable end has no overhang, additional wood trim piece shall Attachment No. 1 be installed so roofing projects at least 1-1/2 inches beyond the face of the siding. Metal drip edge shall not be installed over new roofing material. New roof underlay shall be one layer #15 asphalt saturated felt and shall be double thickness from the eaves to a point not less than 24 inches beyond the inside face of the exterior wall. Seal double underlay lap to a point 24 inches beyond the inside face of the exterior wall with a continuous layer of plastic asphalt cement. Roof valleys shall be flashed with corrosion resistant sheet metal. New shingles shall be seal down asphalt or fiberglass 3-tab, with a 25 year manufacturer's warranty. Minimum exposure shall be 5 inches; minimum head -lap shall be 2 inches. Exposure shall be not less than that required for U.L. Class C label. The starter course of shingles and rake shingles shall project over eaves and rake edges approximately 1 inch. Nails or staples shall be corrosion resistant roofing nails or staples and shall be long enough to penetrate sheathing or roof boards. Color of roofing shall be owner's choice of standard readily available products. Torch down Roofing Material: Torch down roofing material shall not be installed over existing roofing. Remove existing roofing to wood deck or sheathing. Repair sheathing as needed or specified. Install metal starter edge on all edges. Install torch down roofing as per manufacturer's specifications. Supply the owner with a copy of manufacturer's warranty. Apply a full coat of reflective top coat if specified. Built -Up Roofing: For repair, remove existing gravel and broom clean roof area. Cut and repair all blisters with hot asphalt. Reinforce low spots. Apply one ply of 40# asphalt -saturated felt. Minimum end lap shall be 4 inches; minimum side lap shall be 8 inches. Cover felt with two mop coatings of asphalt. Average mopping coats shall be 25# asphalt. Replace gravel stops at exposed edges of built-up roofing where needed. All stops shall be properly secured and lapped sections shall be sealed with plastic roofing cement. Mop all edges thoroughly. Where roof drains occur in built-up roofing, the roofing for a distance of approximately 18 inches in all directions from the drain shall be pitched towards the drain. Pitch shall be uniform. Contractor shall repair roof drains to working order. For new installations, remove old roofing down to sheathing. Nail base sheet according to manufacturer's specifications. Base sheet to be 40# felt or equivalent nailed to decking. Then embed 3 layers of 15# felt, mopping between layers with 25# asphalt. Flood coat surface with 30# asphalt and embed gravel or crushed rock. Gravel or crushed rock shall be included with all new roof installations. Asphalt Roll Roofing: New roofing shall be mineral surface asphalt roll roofing, with a minimum weight of 90# per square. Coverage and underlay shall be the same as for asphalt shingle roofing described above. End -lap shall be 19 inches minimum for a 3 foot wide roll. Starter strip and edges of roofing shall project over eaves or rake edge approximately 1 inch. Nails shall be corrosion -resistant roofing nails and shall be long enough to penetrate sheathing or roof boards. Roll roofing used for low slope applications shall be selvage type or other product specified by the manufacturer for low slope installations. Color of roofing shall be owner's choice. Attachment No. 1 Metal Roofing: New metal roofing shall be installed in accordance with the manufacturer's recommendations. Maximum eaves overhang shall be 2 inches and roofing shall lap away from prevailing winds. Full length sheets are to be used when possible. Alt roofing materials shall carry a minimum 20 year manufacturer's warranty. For new installations with a 4:12 pitch or greater, end lap of roofing panels shall be a minimum of 6 inches; for roofs pitched under 4:12, end lap of the roofing panels shall be a minimum of 12 inches. All metal roofing installations shall include ridge vents and/or gable vents unless otherwise specified. All new metal roof installations shall include valley flashing, gable and eaves trim, foam ridge and eaves closure, plumbing vent flashing and eaves and sidewall flashing. Roofing panels shall be fastened to the base with metal screws with rubber washers; nailing is not acceptable. Color of roofing shall be owner's choice of available colors, however, galvanized and aluminum roofing will not be allowed. Caulking: All loose, cracked, rotted and broken caulking shall be removed. Apply new caulking at all roof openings and exposed roof edges. New caulking shall be plastic asphalt cement. Clean immediately all brick, concrete or woodwork soiled during caulking. Roof Flashing: When roofing or roof flashing is installed, new flashing shall be galvanized sheet metal, .024 inch thick. Piping passing through the roof shall be flashed with one piece metal flashing and cover or two piece flange and sleeve flashing. Nails shalt be corrosion -resistant nails and be long enough to penetrate sheathing. All openings through the roof shall be flashed regardless of whether they were flashed previously. Roof Sheathing: The repair of portions of existing sheathing shall result in the sheathing for that entire area being on the same plane, so that when new roofing material is applied, the finish surface is even. The quality of materials and workmanship shall meet the same standards as new installation described below. New sheathing shall be exterior grade 1/2 inch plywood, 3/8 inch exterior grade plywood may be used over skip sheathing unless specified otherwise. Plywood sheets shall be installed in a staggered pattern. If sheet edges do not meet on skip sheathing, H-clips shall be used between each rafter run. Nails or staples shall be galvanized. Nailing Instructions: For new roof installations over sheathing and felt only, stapling of shingles is acceptable. Staples must be 16 gauge. zinc coated with a minimum crown of 15/16 inch, and a minimum length sufficient to penetrate 3/4 inch into the sheathing. Staples must be driven parallel to shingles length by pneumatic stapler, assuring that the crown bears tightly and flush against the shingle without cutting the shingle surface. When re -roofing over existing roofing, nailing of shingles is the only acceptable means of anchoring the new roof, unless another method is designated by the manufacturer. Use 4-6 nails per shingle for composition or fiberglass shingles. Nails shall be galvanized, 11 or 12 Attachment No. 1 gauge with a head diameter of 3/8 inch. Nails shall be sufficient length to penetrate at least 3/4 inch in sheathing. GUTTERS AND DOWNSPOUTS Galvanized metal Gutters and Downspouts: Galvanized metal shall have corrosion preventative coating on the inside surfaces. Gutters and downspouts may be baked enamel finish. Minimum thickness of metal shall be 26 gauge. Only seamless gutters shall be installed. No joints will be allowed except at corners and where downspouts attach. New gutters shall be 5 inch OG ("K style) or half round type. Gutters shall be attached with aprons and hangers or combination hangers every 24 inches on center. No exposed strap hangers shall be used. Metal gutter installed over fascia boards on a house with no roof overhang shall be attached to spacer blocks 24 inches on center on wood framing to get gutter at least 3-1/2 inches away from siding and shall be properly flashed. Gutters shall be installed with proper pitch to downspouts so that no water overflow can get back into framing members. New downspouts shall be 2 inch by 3 inch corrugated rectangular or 3 inch corrugated round. Downspouts shall be attached to gutters and be securely fastened with strap or cast hangers at top and bottom. Provide at least one additional hanger for every 6 feet of downspout. Downspouts shall be provided with extension pieces (elbows) located not more than 6 inches above the splash block and pointed in the direction of flow. Splash blocks shall be installed with all new gutter installations unless otherwise specified. Aluminum Gutters and Downspouts: New gutters shall be 5 inch OG ("K type"). Aluminum shall be baked enamel finish with corrosion preventative coating on inside surfaced. Minimum thickness of gutters shall be 0.027 inch; minimum thickness of downspouts shall be 0.019 inch. Only seamless gutters shall be used. No joints will be allowed except at corners and where downspouts attach. Installation shall be the same as for galvanized gutters and downspouts. Cleaning and Tightening Gutters and downspouts: When cleaning and tightening of gutter and downspouts is scheduled, all joints shall be made watertight. All gutters and downspouts shall be securely connected and firmly supported and fastened. Splash Blocks: New splash blocks shall be either fiberglass or cast concrete and be installed in such a manner as to direct water away from the building. DOORS AND WINDOWS GENERAL INSTRUCTIONS Whenever a window assembly, sash or doors are being replaced, frames, headers and sills shall be repaired to provide a true, straight, square, plumb, level and rigid enclosure for the new installation. Flashing shall be replaced as needed. All openings between wood, masonry, and metal shall be caulked. Should the openings be deeper than 1/4 inch, they shall be first packed with a backing (flexible polyurethane, polyethylene, polyvinyl chloride, cured polysulfide, sponge rubber, neoprene or butyl rod) manufactured for this purpose to within 1/4 inch of the face Attachment No. 1 surface and then caulked. All new sash or doors shall fit tightly in their frames and shall operate smoothly and easily. Contractor shall repair ail trim supplementary to the operation of the sash or doors. When windows are to be glazed, new glass shall be dual pane insulating glass, unless otherwise specified. When storm doors are to be re -glazed, sheet plastic ("Plexiglas") may be used in place of tempered safety glass. All hardware within a room shall be similar in style and finish. New finish hardware shall be furnished with the necessary screws, bolts, or other fastenings of a suitable size and type to anchor the hardware in position for heavy use and long life. These fastenings shall harmonize with the hardware as to material and finish. The finish hardware shall be securely fitted on properly prepared surfaces in conformity with the hardware manufacturer's instructions and templates. Carpentry cuts for the finish hardware shall be carefully and accurately made. Screws shall be turned to a firm grip but not to the point of distorting the hardware and in no case shall the screws be hammered into place. New doorknobs shall be positioned at the height of the existing doorknobs in each building and the other hardware shall be uniformly positioned. EXTERIOR DOORS Special Instructions: All exterior doors, except service doors for unheated garages and other outbuildings, shall be fully weather-stripped. Hinges for an exterior door swinging out shall have a setscrew in the barrel to prevent the removal of the pin when the door is closed. Hinges shall be galvanized under plating to prevent rusting. All doors between a carport or garage and the house shall be solid core fire rated, or equivalent, and have self -closing hardware. Hardware and Stops for Exterior Doors: New entrance lockset shall be polished brass or brushed aluminum finish. Cylindrical lock shall key outside with turn or push button on the inside; lock shall have dead pin. Contractor shall furnish 2 keys with new hardware. Double cylinder deadbolts are not allowed. New escutcheon plates shall be installed to cover unsightly marks when replacing existing hardware. Floor, base or hinge door stops shall be installed for all exterior doors. Weather-stripping: Package shall include new weather-strip and door sweep installed to stop all air infiltration around entire perimeter of door. New weather-stripping shall be cushion bronze, interlocking aluminum, or compression -type vinyl. It shall be installed continuous around door casing to prevent infiltration of dust, water, and wind. Attachment No. 1 Thresholds and Jambs: New threshold shall be metal, water return type, with integral weather- stripping and shall fit watertight with door. Caulk at exterior edge. New jambs and stops shall be clear fir, pine, or mahogany. Thresholds shall be fully supported. Wood Exterior doors: Type of new door shall be mahogany, solid core. Door shall be installed with new entrance lockset hardware, deadbolt lock, self -closing hardware where required and weather-strip package. Door shall be hung with three brass or brushed aluminum finish 4-inch butt hinges. When door is to be painted, it may be paint grade. All exterior wood doors shall be sealed upon installation. This shall include sealing the interior, exterior and all edges of the door. Finish shall be of owner's choice. Pre -Hung Wood Exterior doors: New pre -hung door package shall include solid core wood door, jamb, casing, stops, trim, weather-stripping, threshold, all hardware and deadbolt lock. Opening shall be trimmed. Unless specified differently, door will be mahogany. Follow instruction for wood exterior doors. Thresholds shall be fully supported. Pre -Hung Steel or Fiberglass Exterior Door Package: New pre -hung door package shall include steel -clad or fiberglass door with wood or polyurethane core, wood jamb, casing, stops, trim, weather-stripping and aluminum threshold, all hardware, and deadbolt lock. Opening shall be trimmed. Door shall be hung with three brass or brushed aluminum finished 4-inch butt hinges. Thresholds shall be fully supported. INTERIOR DOORS Hardware, Jambs and Stops for Interior Doors: New passage set hardware shall be polished brass or brushed aluminum finish. Doors to bathrooms or toilet rooms shall have privacy lock, push button or turn button on the inside. Escutcheon plates shall be installed to cover unsightly marks when replacing existing hardware. New jambs and stops shall be clear fir or mahogany. Finger jointed material is unacceptable. Moisture content shall not be above 19%. Wood Interior doors: Type of new door shall be as scheduled. Replacement panel doors shall match existing as closely as possible. Louvered doors shall be ventilating type. Door shall be installed with new passage set hardware and shall be hung with two brass or brushed aluminum finish 3 1/2 inch butt hinges. When door is to be natural finish, it shall be stain grade wood or it may be pre -finished. When door is to be painted, it may by paint grade. Finish shall be of owner's choice. WOOD PRE -HUNG INTERIOR DOORS: New pre -hung door package shall include wood door, jamb, casing, stops, trim and all hardware. Type of door shall be as scheduled. Opening shall be trimmed. Finger jointed material is unacceptable. See also descriptions above. Finish shall be of owner's choice. Attachment No. 1 BI-FOLD, SLIDING AND MISCELLANEOUS DOOR HARDWARE: When scheduled to be repaired or replaced, finger pulls, knobs, push plates, door tracks, door stops, etc., found to be worn, defective or missing shall be installed new. New hardware shall be polished brass or brushed aluminum finish. All hardware within a room shall be similar in style and finish. Mixing painted with unpainted hardware is unacceptable. WOOD BI-FOLD DOORS: Type of new doors shall be as scheduled. Door shall be installed with new hardware. When two pairs of doors are being installed, a door aligner shall be provided where the center panels meet. Package shall include wood bi-fold doors, jambs, casing, stops, trim and all hardware. Finish shall be of owner's choice. WINDOWS SPECIAL INSTRUCTIONS: A new window assembly shall include sash, jamb, casing, mullions, frame, sill, stool, apron and all trim as appropriate to the particular type. Finger jointed material is unacceptable when wood is to be natural finish. Window assemblies shall be installed with all operating hardware and all sashes shall fit tightly in frames. All opening windows shall have screens. All sashes shall be weather-stripped. All sashes shall operate smoothly and easily. Replacement sash shall match existing as closely as possible. Install new sash as per manufacturer's recommendations, complete with new operating hardware. Operable sash shall have some means of being secured. Sash shall fit tightly in frame to prevent infiltration of dust, water and wind. New sash shall operate smoothly and easily. New windows shall meet all requirements regarding light and ventilation and emergency exit according to Sections 1204 and 1205 of the Uniform Building Code. CHECKING, FITTING AND FREEING WINDOWS: A sash that is painted shut shall be freed and the sash and its operating hardware shall be readjusted for smooth and easy operation. Sash locks that are not scheduled to be replaced shall be repaired and realigned as needed to firmly secure windows. When existing weights or counter -balances for double -hung windows are found to be inoperative and cannot be easily repaired, new "quickie" or "jiffy" type spring window controls shall be installed. Spring shall be fastened securely. HARDWARE: All window hardware within a room shall be uniform in style and finish. New hardware shall not be painted. Locking window hardware shall be cast metal type; stamped metal type shall not be used. When locking hardware is scheduled to be replaced, finger lifts and pulls shall also be replaced. New hardware shall be polished brass or brushed aluminum finish. STOPS, STOOLS AND APRONS: New wood trim shall be clear fir, hemlock, or mahogany. Finger jointed material is unacceptable when wood is to be natural finish. Attachment No. 1 ALUMINUM WINDOW SASH: New sash shall be anodized aluminum. Sections shall be extruded aluminum alloy 6063-T5. Minimum nominal wall thickness shall be 0.062 inch. Construction shall be in accordance with Architectural Aluminum Manufacturers Association (AAMA) specifications. All operating sashes shall be fully weather-stripped. All sashes shall be able to be easily removed from the inside for maintenance and re -glazing. After installation, aluminum shall be thoroughly cleaned with plain water or a petroleum product such as white gasoline, kerosene or distillate. No abrasive cleaning agents shall be used. ALUMINUM WINDOW: New window frame shall be anodized aluminum. Sections shall be extruded aluminum alloy 6063-T5. Minimum nominal wall thickness shall be 0.062 inch. Construction of frame shall be in accordance with AAMA specifications and shall form neat weather -tight connections. All operating sashes shall be fully weather-stripped. Weep holes shall be provided at the factory. All sashes shall be able to be easily removed from the inside for maintenance and re -glazing. When appropriate to the installation, new aluminum assemblies shall have an anodized aluminum exterior "surround" designed to form an integral union with the existing frame and be joined in a manner as to prevent any water or air infiltration. Surround shall be the same construction as aluminum section described above. Surround shall be sized to cover all exposed exterior wood trim and shall fit neatly into openings. All opening windows shall have screens. After installation, aluminum shall be thoroughly cleaned as listed above. ALUMINUM REPLACEMENT WINDOWS: Replacement windows shall be anodized aluminum and shall meet requirements as above except the minimum nominal wall thickness shall be 0.050 inch. Sections shall be extruded aluminum alloy 6063-T5. WOOD WINDOW SASH: One -over -one type: New sash shall have spring or tension counter- balances. "Quickie" or "jiffy" spring window controls are acceptable only when the existing operating mechanism is unusable in the new installation. Window lifts and locking hardware shall be polished brass or brushed aluminum finish. VINYL REPLACEMENT WINDOWS AND VINYL STORM WINDOWS: New replacement windows and storm windows shall be constructed of PVC vinyl. All meeting rails shall be interlocking and weather -tight. Unit for double -hung storm window shall consist of self -storing insect screen and two storms. Sash and screens shall be easily removed from the inside for maintenance and re -glazing or repair. Storm doors and screens for all other types of windows shall be compatible with their operation so that they can be removed with a minimum of effort. Replacement inserts shall fit tightly in existing tracks. All operating windows shall have insect screens; wherever possible, self -storing units shall be installed. Glass shall be Grade B or better. Replacement screening shall match existing. New screening shall be anodized aluminum or fiberglass screen cloth. Weep holes in the sill shall be provided at the factory. Frame shall fit weather -tight in existing masonry or wood frame. Caulk at frame with sealant, if needed. The bead shall be at least 3/8 inch across surface. Attachment No. 1 FINISHES PLASTER PLASTERING: When patching plaster, all broken or damaged plaster shall be cut out to straight lines with clean, sharp edges. New lath and reinforcing strips shall be installed if needed. Use plaster bond material for proper adhesion of new plaster to existing. The areas to be patched shall be filled with base material and then given a finish coat of the same material as adjoining plaster. Patched areas shall match the adjacent work in finish and texture and be free of bulges. Jointing shall be flush and smooth so that the joints between the existing and the new plaster are undetectable. Cracks shall be V-jointed and bonded with fiberglass tape and joint compound, in the same manner as a drywall joint. Prior to application of new plaster, all bulging, loose or otherwise defective plaster shall be removed. New expanded metal lath, plaster stops, grounds, corner and casing beads and corner reinforcement shall be installed as needed. Support and fasten lathe to provide true lines and surfaces for new plaster. Use flat reinforcing strips where existing and new plaster surfaces butt together. Install reinforcing at all points where surfaces change or where cracking is likely to occur. All metal shall be galvanized or coated with rust inhibiting paint. New applications shall be three coat wet plaster over metal lath, two coat wet plaster over gypsum "rock lath" or two coat veneer plaster system. Apply plaster with minimum thickness as established by industry standards for the type of bases being used. EXTERIOR STUCCO PLASTER: Remove all damaged stucco. Repair metal lath or wire fabric. Over wood frame construction, apply new three coat finish and over masonry surfaces apply new two coat finish. Scratch coat shall be uniformly roughed to provide a sound base for brown or top coats. Top coats shall match existing in texture and finish. Do not apply stucco plaster when the temperature is above 90 degrees F. or below 40 degrees F., or when the temperature is not expected to remain above 40 degrees F. until initial set. Stucco plaster shall be kept damp until initial set. DRYWALL: Drywall installed over framing members shall be 1/2 inch on walls and 5/8 inch on ceilings, except that for installations requiring a one hour fire rating it shall be 5/8 inch Type X. Drywall installed over existing surfaces shall be no less than 3/8 inch on walls and 1/2 inch on ceilings. New drywall shall be tapered gypsum wallboard. When going over existing surfaces, first remove all damaged material and fur walls or ceilings so that the finished product is properly aligned. Edges and ends of wallboard shall occur on framing members, except those edges and ends that are perpendicular to the framing members. To minimize end joints, use wallboard of maximum lengths. Wallboard shall be first applied to ceilings, then to walls. When both sides of partitions are to receive wallboard, stagger joints on opposite sides. Protect all vertical exterior corners with corrosion resistant metal corner bead. When butting up to existing trim, cut drywall carefully and use casing beads for all exposed edges. Where surfaces are to be painted or wallpapered, joints shall be taped and both joints and nail depressions shall have three coats of joint cement applied as per manufacturer's recommendations. All edges shall be feathered. Attachment No. 1 Finish surfaces shall be sanded smooth and left straight and well aligned. Texture spray finish is not to be used on ceilings unless specified otherwise. When used, texture spray shall be medium texture, hard finish only --no course, polystyrene or other soft finish will be allowed. Before application, prime ceilings with a vinyl primer or equivalent. Any existing surfaces to receive texture spray must also be properly prepared for complete adhesion and non -burn through. Application shall be as per manufacturer's recommendations. No finishing or drywall shall be done unless inside temperature is at least 55 degrees F. This temperature shall be maintained during and up to completion of finishing, including drying. Moisture resistant drywall or concrete wallboard shall be used in areas subject to moisture and in bathrooms. CERAMIC WALL AND FLOOR TILE AND CERAMIC TILE COUNTERTOPS: When repairing existing tile, first remove all cracked, loose, chipped or otherwise defective tile. Then repair setting bed or wallboard to provide a level surface for installation of new tile. When repairing floor tile, wash adjacent areas with a solution to remove all oil film present. New tile being installed next to existing tile shall match existing as closely as possible in size, color, texture and glaze. When replacement tile does not match existing, replace complete rows or areas. Carry rows and areas into corners. New tile shall be installed in the following manner. Base surface shall be smooth and plumb or level. Prior to application of adhesive, surface to receive tile shall be sealed with a water resistant sealer compatible with the adhesive to be used. Sealer shall provide a firm and durable bond to the base material. Tile adhesive may be used as the sealer when designed for this purpose, but must be applied in a separate coat. Apply adhesive to entire surface to be tiled with a notched spreader blade. New wall tile shall be standard grade, glazed ceramic tile. New floor tile shall be glazed ceramic mosaic or ceramic tile as indicated in work list. Color of tile shall be owner's choice. All tile installations shall be properly trimmed using caps, bases, etc. Tile shall be set by "floating method". Allow at least 24 hours for evaporation of volatiles from adhesive prior to grouting. Joints shall be thoroughly saturated and washed out with clean water before grouting. All tile joints shall be filled with pointing grout. Joints between tub and tile and joints between tile and any dissimilar material shall also be grouted and caulked with a silicone sealant. Force grout into joints taking care that no open joints are left. Joints shall then be sponged and tooled. New tile and any surrounding surfaces soiled during the repair work shall be cleaned immediately. All exposed tile edges shall be bull -nose tile. (See Material Allowances, Appendix A) TUB/SHOWER SURROUND Type of materials shall be as specified. All tub wraps shall be a minimum of 6 feet above finished floor unless specified otherwise. All tub wraps shall include flush mount soap and grab accessories. All tub wrap installation to include new water resistant drywall or concrete wallboard unless otherwise specified. The owner's choice of color and design will be from standard available products. Attachment No. 1 HARDWOOD FLOORING: When repairing or replacing hardwood flooring, all defective hardwood flooring shall be taken up from the sub -floor, using care not to rip or break the tongues from the flooring strips of pieces that are intended for reuse. Flooring shall be shimmed where necessary and be properly secured at points of bearing. The entire floor, both existing and repaired, shall then be inspected for protruding nails, and nails found to have popped out shall be countersunk. Replacement flooring shall match existing as closely as possible. ASPHALT TILE, VINYL COMPOSITION TILE (VCT) AND SHEET VINYL: Replacement tile shall match existing in type, size, pattern and texture. New tiles shall be residential grade. Asphalt tile shall be 1/8 inch thick; VAT shall be 1/16 inch thick. Tiles shall be 9 inch by 9 inch or 12 inch by 12 inch. Colors and patterns shall be homogeneous throughout the full thickness of tiles. Color and pattern shall be owner's choice. Self-adhesive tiles will not be allowed. New sheet vinyl shall have a wearing surface no less than 0.010 (10 Mils). Color shall be owner's choice. It shall be installed full size with a minimum of seams. Seams will not be allowed in doorways or other high traffic areas. When installed in areas of high moisture, bathrooms and utility rooms, it shall be seamless. All floor coverings shall meet or exceed FHA requirements and must be labeled as such. All sheet vinyl floor covering shall be installed according to manufacturer's recommendations. All surfaces to receive resilient flooring shall be clean, dry and level. All cracks, depressions and voids shall be filled or repaired. Concrete floors shall not vary from a level surface more than 1/8 inch in 10 feet in any direction. Where leveling is required, leveling latex for concrete shall be used. Prime concrete slabs on grade or below grade with a cut back before applying adhesive. For all installations, use the adhesive recommended by the resilient flooring manufacturer and apply as per instructions. All flooring shall extend under the base shoe molding. Resilient flooring shall be laid with tight joints at all points of contact. Tile stops shall be installed at all exposed edges and changes of material, and stair treads shall have edges as described below. New rubber or vinyl cove base shall be considered a part of a new floor covering unless the owner wishes to reuse existing wood base. New underlayment shall be underlayment grade plywood, or suitable materials approved by sheet vinyl manufacturer, developed for use under resilient flooring. Masonite or tempered hardboard will not be allowed. Underlayment shall be 3/8 inch except that 1/4 inch underlayment may be used over plywood sub -flooring or T&G boards not more that 3 inches wide. 1/4 inch underlayment shall be securely screwed every 3 inches on center at the perimeter and every 6 inches on center at intermediate supports; 3/8 inch underlayment shall be securely screwed every 6 inches on center at the perimeter and every 8 inches on center at intermediate supports. Nailing or pneumatic stapling will not be allowed for underlayment installation. In all cases floors receiving new underlayment shall be smooth and free from any uneven joints, bulges and depressions. When resilient flooring is to be installed directly over sub -flooring, the sub -flooring shall be combination sub-floor/under-layment plywood (void free). Types and grades shall be the same as for plywood underlayment. Thickness shall be determined by span and spacing of floor joints. Attachment No. 1 CARPET OR TILE STOP: New divider edge shall be aluminum, approximately 1 inch wide. It shall be attached with countersunk aluminum screws. STAIR EDGING: New stair tread nosing shall be aluminum or rubber or vinyl. Nosing shall be installed on each tread and landing. Installation shall be per manufacturer's recommendations. COVE BASE: New base shall be minimum 2-1/2 inch rubber or vinyl cove base unless matching existing base of a different height or otherwise specified. Use preformed inside and outside corner pieces and an adhesive recommended by the manufacturer. Base shall be neatly installed and be firmly cemented to walls and floor. Joints where bathroom floors meet walls shall be watertight. All corner pieces shall be neatly cut and tight fitting; wrap around corners will not be allowed. Use adhesive recommended by the manufacturer on all cove base. Color shall match new or be compatible with existing resilient flooring. Pre -finished wood base will be allowed and specified for certain applications. CARPETING AND CUSHIONING: New carpeting and cushioning shall, as a minimum, conform to those specifications contained in HUD UM-44C. Type, color and pattern of carpeting shall be owner's choice. Bonded urethane cushion shall conform to HUD UM-47. Carpet shall be installed according to the best standards of the trade. The contractor shall provide a certificate to the owner stating the carpet installed is FHA approved or meets the minimum standards required for FHA approval. When carpet is installed in a specific room, all closets shall be considered as part of the room. See Material Allowance Attachment for cost details. APPLIANCES EXHAUST FANS AND DUCTED RANGE HOODS: Ventilation equipment shall bear the label of approval of a nationally recognized testing agency, and a Home Ventilation Institute or manufacturer's label showing capacity. Duct work shall be ridged metal and designed for the shortest practical run to the exterior. Installation of duct work shall comply with current mechanical code requirements . Discharge openings through roofs and walls shall be protected against entrance of rain, snow and wind. Exhaust fan units shall be installed complete with louvers and back draft dampers which will automatically close to prevent a reverse flow of air when the fan is not in operation. Duct ends shall be sealed and mechanically fastened. When replacing an existing fan, existing ductwork and related accessories may be reused if they are in good condition and appear to have a remaining life equal to that of the fan. Existing ductwork shall be inspected for obstructions and continuity. Ductless range hoods shall not be installed. When a bathroom fan is installed, it shall be installed complete with switch (of specified type), ductwork and all accessories unless specified otherwise. Fan motor shall be moisture proof and UL listed. Fan shall be wall switched; switch may be separate from light switch. Fan shall be rated for insulation cover. Size of fan will be specified in the Invitation to Bid. Grille shall be anodized aluminum or plastic. Undercut door if necessary for air movement. When a kitchen exhaust fan is to be installed new, it shall be installed complete with switch, ductwork and all accessories. Fan motor shall be UL listed. Fan shall be wall switched; switch Attachment No. 1 shall be separate from light switch. Fan shall provide a minimum of 15 air changes per hour. Grille shall be anodized aluminum or plastic. Range hood shall be installed complete with ductwork and all accessories. Unit shall include recessed light and removable, washable grease filter. Color shall be owner's choice. All venting and ducting practices and materials must meet NCRRP Specifications and 2007 California HVAC Code Standards and 2008 California Title 24 standards at a minimum. PLUMBING GENERAL INSTRUCTIONS All materials, piping, fittings, fixtures, etc., shall conform to the latest ANSI (American National Standards Institute), ASTM (American Society for Testing and Materials), CS (Commercial Standards) and FS (Federal Specifications) standards. All equipment and materials used shall be new and clearly marked to permit identification of manufacturer, model and type. Installation and materials of fixtures specified for the handicapped must comply with the provisions of the Fair Housing Act, Fair Housing for HOME Program Participants, Fair Housing Act Design Manual and all other federal, state and local requirements. The contractor shall furnish all instruments, gauges and equipment required for testing and shall perform those tests required by the related authorities. Equipment, materials or work found to be defective during testing shall be replaced by new work and be retested until proven satisfactory. All replacement sewer, water or gas systems shall be installed complete and, if necessary, final connections shall be made to the sewer main, gas meter, or water meter. All equipment and items installed under this section shall operate safely, without leakage, undue noise, vibration, corrosion or water hammer. All fixtures shall be securely supported so that no strain is placed on the connected piping. All work, fixtures and materials, shall be protected at all times. All service and supply lines installed in a location where freezing may occur shall be insulated with closed cell foam insulation, or wrapped with fiberglass batt insulation without vapor barrier. If pipe insulation is to be done by the insulation contractor, notice will be given in the Invitation to Bid. All excavation and backfill necessary for the installation of new underground piping shall be part of the work of this section. The trenches shall be backfilled evenly and be thoroughly compacted using acceptable fill materials. In no case shall the excavation for the trenches undermine or disturb the building foundation. When a rough -in for new equipment requires connections to the existing plumbing system, the contractor shall obtain necessary data on locations, sizes, connections, fittings, and arrangements needed to ensure proper installation of that equipment. Attachment No. 1 All drilling, cutting, and patching necessary for a proper installation of work under this section shall be done by the contractor. All patching shall be of the same materials, workmanship and finish as the original work and shall accurately match all surrounding work. Fixtures and equipment furnished by others which require plumbing connections to waste, water, vent or gas piping shall be connected by the contractor. All work shall be done without damage to structural members. Sleeves shall be provided where required and upon completion of rough -in work, sleeves shall be made sound and fire tight. Penetration of stud and masonry walls, floors, and ceilings shall be fire stopped. All joints and connections in the plumbing and drainage systems shall be gas and water tight for the pressures required by the test of the system, with the exception of those portions of piping which are installed for the purpose of leading ground or seepage water to the underground storm drains. The contractor shall be required to wet test all plumbing systems at the expected working pressure of the system after repair and/or replacements have been made. Existing plumbing systems, or portions thereof, including building sewers (side sewers), to remain in use shall operate free of fouling and clogging, and shall not have cross -connections which may cause contamination of the water supply by back -siphoning. Gas lines shall be blown clean with compressed air, and all valves and filters shall be checked. All remaining plumbing fixtures and piping not in use shall be disconnected and removed by the contractor. All escutcheon plates shall be installed tight, caulked if necessary. The entire new and existing installation shall be left in a neat, clean, and usable condition. WATER, SEWER, FUEL AND VENT PIPING GENERAL INSTRUCTIONS: New piping at the exterior of a building shall be at least 18 inches below grade. Piping shall run parallel to the building construction and be neat and workmanlike. Piping shall be concealed in walls, below the floor, above the ceiling or in furred spaces. Piping shall be properly supported and be pitched to drain. Water and gas piping shall be run level without pockets and as straight as possible. New hot and cold water supply lines shall be at least 6 inches apart where parallel. Expansion and contraction shall be provided for by swing joints. New soil, waste, vent and drainage piping shall be run at a uniform grade of at least 1/4 inch per foot (2% grade). Lines under slabs shall have as short a run as possible and the run shall be as straight as possible. Copper lines shall be wrapped with plastic tape where they come in contact with any metal other than brass or lead. All connections between copper or brass and steel piping shall be made with dielectric couplings. All metallic piping shall be bonded together. Screwed pipe joints shall have threads cut the full thickness with new, clean Attachment No. 1 dies. The joints shall be carefully reamed and pipe joint compound shall be applied smoothly to the male threads and to the threads left exposed after fabrication. REPLUMBING HOUSE TO CODE: This is an instruction to the contractor and means that all water distribution piping, soil, waste and vent piping shall be installed new. Only the installation or repair of individual plumbing fixtures shall be listed in the work specifications. WATER SERVICE: New water service shall be of sufficient size to permit a continuous and ample flow of water to all fixtures at all times. Frictional losses due to piping, meter, valves, fittings and faucets shall be considered when piping size is being determined. The water service pipe shall be installed in such a manner and shall possess the necessary strength and durability to prevent leakage under all likely adverse conditions, such as corrosion or strains due to temperature changes, settlement, vibrations and superimposed loads. The contractor shall be responsible for providing the meter and all necessary piping to complete the installation and to coordinate installation of the meter with the Water Department. GATE VALVES: The water piping on the discharges side of the water meter shall have a full way gate valve with bleeder screw. Gate valves shall be readily accessible, whether located in the basement, crawl space or within the living space itself. WATER SUPPLY (DISTRIBUTION) PIPING: New distribution service lines shall be hard temper type M copper tubing or galvanized steel. New branch service lines shall be no less than 1/2 inch. Rodent proof penetrations shall be made through floors. HOSE BIBBS: Hose bibs shall be located according to work specifications to provide an outside source of water. Hose bibs shall be frost proof type or have separate accessible stop and waste valve or readily accessible inside shut off. BUILDING SEWER (SIDE SEWER): All sanitary plumbing outlets shall be connected to combined or sanitary sewer systems when they are available. A new building sewer shall be constructed of case iron, vitrified clay, concrete or plastic. The sewer shall be constructed with watertight joints, be on a grade not less than 1/8 inch per foot, be laid on a firm bed, and be at a depth not less than 18 inches below grade. No tees of 90 degree ells shall be used. Cleanouts shall be installed as required by Uniform Plumbing Code. All abandoned septic tanks shall have sewage pumped and be filled with gravel or sand. SEPTIC SYSTEM INSTALLATION: New septic systems shall be installed in compliance with approved design and inspected and approval by a county health official. SOIL AND WASTE PIPING (INCLUDES DRAINS AND STACKS): Soil and waste piping and fitting shall be extra heavy or service weight cast iron, galvanized steel pipe, copper pipe or hard temper type K,L,M, or DWV copper tubing, or plastic approved under City and/or County codes. Soil stacks shall rest solidly at the base on masonry piers or heavy iron posts and be supported at intervals of no more 10 feet by stout wall hangers or brackets or on beams at each floor. No new soil or waste pipe shall be installed or permitted outside a building or be in any place where it may be subjected to freezing temperatures, unless adequate provisions is made to protect it from frost. Attachment No. 1 FLOOR DRAINS: No floor drains shall be installed in any location or manner which will interfere with proper functioning. The drain shall connect to the sanitary drainage system with an approved trap having a minimum 3 inch depth of seal. Drain shall have a backwater valve if the drain is below the elevation of the curb or property line. See also description for piping. SUMP PUMPS: New sump pumps shall be submersible type. When connected to the sanitary system discharge line piping shall have an accessible backwater valve and gate valve. The connection from the discharge line to any horizontal sanitary drainage piping shall be made from top through a wye branch fitting. All installations shall be done in accordance with Section 409 of the Uniform Plumbing Code. ROUTING DRAINS AND BUILDING OR SIDE SEWER: Drains scheduled to be routed shall be cleaned with a power driven rotary clean -out apparatus similar to the roto-rooter device. Cleaning area drains shall include either replacing or re -caulking the drainage strainers. Building sewers and side sewers scheduled to be routed shall be cleaned all the way to the main sewer connection(s). Drains, when routed, shall be free of all miscellaneous debris so as to allow the free and unobstructed flow of liquids and solids. VENT PIPING: New vent piping shall be schedule 40 galvanized steel pipe with standard black cast iron screwed fittings, DWV copper tubing or plastic approved under code. Vent piping shall extent at least 6 inches above finish roof surfaces. Re -vent piping shall be at least 1/2 of the diameter of the drain to which it is connected or be a minimum of 1-1/4 inch in diameter. Re - vent shall tie into soil stack or waste stack at a point at least 6 inches above the last fixture connected to the stack. No new vent piping shall be installed on the exterior of the building. All new vents shall be concealed in the wall. New piping passing through the roof shall be flashed with a not lighter than 26 gauge galvanized metal flashing assembly or plastic flashing. Flashing shall be set in waterproof mastic compound and be caulked around the vent. Flat roof flashing shall be the commercial type with a horizontal leg equal all around the base. FUEL PIPING: New fuel piping shall be black pipe. Pipe shall not be bent and offsets shalt be made with fittings. Installation shall comply with all requirements of the applicable codes noted above. PLUMBING FIXTURES GENERAL INSTRUCTIONS: New plumbing fixtures shall be standard builder's models unless otherwise specified. Unless otherwise indicated, color of new fixtures shall match existing or be white. Fixtures shall be installed complete and ready to use. Appropriate grounds and supports shall be provided for each fixture and equipment item. Arrangements shall be made with other trades for the installation of built in items, blocking or necessary supports. Coordinate installation of plumbing fixtures with floor contractor. Attachment No. 1 All new exposed trim, fittings and pipe in finished spaces shall be chrome plated brass or be covered with chrome plated brass sleeves. WATER HEATER: Package shall include a new glass lined, quick recovery water heater, size as specified. Heater shall be equipped with a shut off valve on the incoming waterline, a pressure/temperature relief valve, (150 # and 210 degree rating) with a discharge tube to the outside of the dwelling or to 24 to 6 inches of a garage or basement floor having drainage. Heater shall be installed with wiring, or fuel piping, draft diverter and vent, as appropriate to type. Heater shall have a 5 year warranty on the tank, and shall be U.L. listed or American Gas Association certified. When new water heaters are to be relocated, they shall be installed to provide the shortest run possible from the new water heater to all fixtures. Flue pipe for gas water heaters shall be at least 28 gauge galvanized sheet metal. It shall have a minimum slope of 1/2 inch per foot with no horizontal lengths of pipe exceeding 75 % of the height of the chimney or vent. Flue or vent connections shall have a diameter not less than the vent outlet on the heater. The flue pipe shall extend beyond the fire clay lining, but no flue pipe shall be vented into a chimney which is used for a fireplace or has a wood stove or wood furnace connected. Flue pipe can be vented into Class B vent. KITCHEN SINK: Package shall include new porcelain enameled or heavy duty stainless steel countertop sink, swing faucet with spray attachment and hose, removable cup strainers, fixture stops and supplies, and waste with trap. Sink shall have ledge unless space restrictions require otherwise. Entire unit shall be connected to service and waste lines. It shall be the responsibility of the plumbing contractor to cut the hole for the sink. LAVATORY: Wall mounted package shall include new porcelain enameled steel or cast iron lavatory, faucets with trip waste, fixture stops and supplies, trap, and wall hanger and legs. VANITY: Package shall include new vanity base, countertop with back splash, porcelain enameled steel lavatory, center set faucets with trip waste, fixture stops and supplies, and trap. Lavatory may be one piece basin or countertop. Quality of vanity sink base and countertop shall equal that of new kitchen cabinets and countertops. New vanity base to be a minimum 24 inch width unless specified otherwise. TOILET: Package shall include new vitreous china bowl (siphon jet action type) with close coupled tank and cover, plastic seat, new flange and wax ring, bolts and caps, fixture stop and supply, float -less valve and trip lever. Plastic tanks are not acceptable. When installing or re- installing a toilet they shall be caulked around their base with silicone caulk. BATHTUBS: Package shall include new porcelain enameled steel bathtub, pop-up waste and overflow with trap, concealed shower divider with trim and fittings. Tub will be recess type 5 feet by 30 inches, unless otherwise specified. SHOWER STALL: Package shall include new fiberglass base, size as specified, with trap, vent and concealed faucet and shower leg with all trim and fittings. Shower stall wrap shall either be plastic laminate, or three piece rigid molded fiberglass unit over new water resistant drywall or Attachment No. 1 concrete wallboard. (Type of wrap will be specified in work list) Free standing shower stall and shower stalls designed for corner installation will not be allowed unless specified. ELECTRICAL GENERAL INSTRUCTIONS All materials and equipment used shall conform to the latest UL and ANSI and FS standards, as well as to all other applicable standards. All materials and equipment used shall be clearly marked to permit identification of manufacturer, model and type. The contractor shall furnish all instruments, gauges and equipment required for testing and shall perform those tests required by the related authorities. Equipment, materials or work found to be defective during testing shall be replaced by new work and be retested until proven satisfactory. All new materials shall be in good condition. Each type of material shall be of the same quality throughout the project. All finished parts of the equipment and equipment for the work of this section shall be protected against damage from whatever cause during the progress of the work and until final completion. All electrical materials and equipment in storage and during construction shall be covered in such a manner that no finished surfaces will be damaged or marred. All wiring, fixtures, switches, receptacles, etc., shall be installed with all accessories. Fixtures, equipment and materials furnished by others which require electrical wiring, connection, or related electrical work shall be connected by the electrical contractor. The contractor shall in no case install permanent electrical equipment that may be damaged by the rough in for heating, ventilation, or plumbing equipment. The contractor shall do all drilling, cutting and patching required for the installation of the work under this section. All patching shall be of the same materials, workmanship and finish as the original work and shall match all surrounding work, painting excluded. All electrical equipment and exposed wiring not in use shall be disconnected and removed. The contractor shall keep all parts of the building and site free from accumulation of rubbish and waste materials caused by work under this section and shall remove such accumulation from the site. All parts of the electrical apparatus and equipment shall be thoroughly cleaned of cement, plaster and other foreign materials and be left smooth and clean. When a new service is installed it shall be the electrical contractors' responsibility to insure that all obstructions to the service drop are removed. The electrical contractor is responsible for disconnect and reconnect fees from the utility. Attachment No. 1 WIRING: All conductors shall be plainly marked or tagged as follows: 1) Underwriter's Laboratories, Inc. label; 2) Size, kind and insulation of the wire 3) Name of the manufacturing company and the trade name of the wire; Month and year when manufactured (date shall not exceed 8 months prior to the date of delivery to the site, except for feeders). Hot water heater circuit shall be #10 copper AWG., 30 amp circuit. Range circuit shall be #6 copper AWG, 50 amp circuit. Branch circuit wiring for 20 amp circuits shall be #12 copper AWG and all other branch circuit wiring shall be no smaller than #14 copper AWG. Unless otherwise required by code, all new wiring shall be sheathed cable. New 15 and 20 amp circuits shall be 2 wire with ground. Outlet boxes shall be the pressed steel knockout type or be cast iron with drills, tapped and plugged holes and be hot dipped galvanized. Outlet boxes may also be approved non-metallic type. All boxes shall be of the proper size for the number of wires or conduits passing through or terminating in the box. Approved factory made knockout seals shall be used in all boxes where knockouts are not intact. All outlet boxes shall be accurately placed and securely fastened to the structure independently of the conductor. The plastic rings shall be set flush with the surface of the ceiling or wall. The hangers for the light outlets shall have adjustable studs. Surface mounted boxes and "Wire Mold" are acceptable only if areas for new circuits are not accessible in any manner without doing severe damage to walls and ceilings. When work is completed, the wiring and connections shall be tested for continuity, short circuit, proper grounding and GFCI function. REWIRE HOUSE TO CODE: New electrical service and all branch circuit wiring, fixtures, switches, receptacles, cover plates, etc., shall be installed new according to the National Electric Code. Only minimums will be required, and only special additional work such as wiring to detached garages, additional fixtures, special devices, etc., shall be listed in the Invitation to Bid. GARAGE CIRCUIT: New circuit to the garage shall be an independent branch circuit of 20 amp capacity. Circuit shall include new conductor, a keyless (switched) fixture for each parking space and at least one GFCI protected receptacle. Service shall be installed complete with all wiring and accessories. FURNACE CIRCUIT: New circuit shall be an independent branch circuit of 15 amp capacity. Contractor shall wire the circuit from the junction box located near the heating unit. LAUNDRY CIRCUIT: New circuit shall be an independent branch circuit of 20 amp capacity. Receptacle for the washing machine shall be a 20 amp, 120 volt, duplex grounding type, mounted on the wall behind or adjacent to the laundry area. When installed new, the wall receptacle shall not be higher than 48 inches above the floor. Attachment No. 1 SMALL APPLIANCE CIRCUITS: New circuits shall be 20 amp capacity with two duplex grounding type outlets. When two new circuits are to be installed, a minimum of four grounded receptacles shall be provided and wired to these circuits. When these circuits also serve a pantry, dinette, breakfast room and dining area, the receptacles for these areas shall be equally divided between the extended circuits. All new kitchen circuits/outlets shall be GFCI protected in accordance with the National Electric Code. SPLITTING CIRCUITS: Splitting circuits shall include providing dedicated circuits for the following: 1 small appliances (kitchen), 2 washing machine, 3 freezer, 4 furnace, 5 dishwasher, 6 microwave oven. DRYER CIRCUIT: New circuit shall be a dedicated branch circuit of 30 amp capacity (#10 AWG). Receptacle shall not be higher than 48 inches from the floor. REPLACING WIRING: When existing wiring is to be replaced, all exposed wiring (wiring not concealed behind finished surfaces) shall be removed back to the panel box. Then new sheathed cable shall be installed for all branch circuit wiring in the basement, attic and crawl space. Installation shall be complete, including all wiring and accessories. ELECTRICAL SERVICE Size of new service shall be as indicated in the Invitation to Bid. Service package shall include new service entrance and meter base, new panel box and ground, and new service mast or service knob with support. Service shall be underground where required. Contact the utility company prior to installing service equipment to verify location of new service drop. All existing panels and sub -panels shall be taken out of service. Contractor is responsible for disconnect and reconnect fees. Panel installed with new service shall be main breaker panel with room for at least 20 circuits (main breaker and panel shall be consistent with the size of the service entrance). Panel box shall be flush or surface mounted as required. Panel shall be installed in a convenient and protected location. Service equipment shall not be located in stairwells, bathrooms, clothes closets, attics, above plumbing fixtures or above laundry and kitchen appliances. Sufficient clearance and accessibility shall be provided when installed in basement near laundry trays, oil tanks or other permanent obstructions. Prior approval will be required if panel is to be located on the exterior of the building; this panel shall be weatherproof type. After installation, each lighting panel shall be tested with mains disconnected from the feeder, the branch connected, and wall switches closed and the fixtures permanently connected but without lamps. Each individual power circuit shall be tested at the panel with the power equipment connected for proper operation. All circuits in the panel shall be clearly identified. Attachment No. 1 FIXTURES AND WIRING DEVICES: When an item is installed, a new fixture, switch or receptacle shall be installed complete with all wiring accessories. When an item is to be replaced, the existing device shall be removed and a new fixture, switch or receptacle shall be installed and connected to existing wiring. When an item is to be relocated, it shall be removed completely, (or when the existing outlet box and wiring cannot be removed, a blank cover plate shall be installed) and a new fixture, switch or receptacle shall be installed complete in the specified location. An item to be removed shall be removed completely, or when existing wiring or box cannot be removes a blank cover plate shall be installed. CONVENIENCE RECEPTACLES: Outlets to be relocated, installed new or replaced shall be complete with new cover plates. When all switches and receptacles in a room are new they shall be off white or ivory. New convenience receptacles shall be flush duplex grounded type, and shall be grounded. Surface mounted boxes and "Wire Mold" are acceptable only if areas for the new circuit are not accessible in any other manner without doing severe damage to walls or ceilings. Replacement receptacles for the kitchen (except refrigerator) and bathroom shall be GFCI protected duplex outlets; all others shall be flush duplex type. New receptacles shall not be located in a baseboard or floor. SWITCHES: When relocating or installing new switches they shall be installed complete with new cover plate. New switches shall be toggle type switches and either single pole, 3-way or 4- way as specified. LIGHTING FIXTURES: Each lighting fixture shall be furnished with a lamp bulb or bulbs of appropriate type and wattage. New lighting fixtures shall bear either a UL or ETL label. Unless otherwise specified lighting fixtures shall be as follows: New exterior fixtures shall be wet location type; style shall be owner' choice. New keyless and pull chain fixtures shall be porcelain. All pull chain fixtures shall have a single convenience outlet. Ceiling or wall mount fixtures for the living room, dining room, bathroom, hall, kitchen and bathroom shall be owner's choice, unless otherwise specified. Fixtures in basement, second floor and attic stairways shall be located directly over the stairway section at the head or foot of the stairs. Any fixture specifically called for on the Invitation to Bid shall not be included in the retail allowance per fixture, but shall be provided by the contractor as part of the contract. ELECTRIC BASEBOARD UNITS: Existing sections of baseboard shall be cleaned and tested for proper operation. New baseboard shall be able to maintain a temperature of 70 degrees F. at a point three feet above the floor in all habitable rooms when the outside temperature is -10 degrees F., without overloading or scorching walls. New heaters shall be medium density type, limited to 250 watts per foot of baseboard. Where possible, install on outside walls and under windows. Each room or air circulation area shall have only one thermostat. Bathroom heaters can be manual switch operation. Thermostats shall be baseboard mounted unless otherwise specified. Attachment No. 1 In bathrooms, baseboard heaters shall not be within reach of the bathtub. Wall or ceiling type heaters are acceptable substitutes. HEATING, VENTILATING, AIR CONDITIONING GENERAL INSTRUCTIONS: (Note: Please review NCRRP Specifications and the California Title 24 2008 Residential Compliance Manual for California Energy Efficiency Standards and consult with NCRRP Staff concerning required Energy Efficiency Ratings (EER) for program - installed heating systems and installation methods.) All materials, equipment, piping, fittings, fixtures, etc., shall conform to the latest ANSI, ASTM, ASME and FS standards. All equipment used shall be new and clearly marked to permit identification of manufacturer, model and type. The contractor shall furnish all instruments, gauges and equipment required for testing and shall perform those tests required by the related authorities. Equipment, materials or work found to be defective during testing shall be replaced by new work and be retested until proven satisfactory. Except as modified herein, the construction and installation of all equipment, accessories and appurtenances shall comply with the published standards, requirements and recommendations of the National Fire protection Association and National Board of Fire Underwriters. All equipment and items installed under this section shall operate safely and without leakage, undue wear, noise vibration or corrosion. All drilling, patching and cutting necessary for the proper installation of work under this section shall be done by the contractor. All patching shall be of the same materials, quality of workmanship and finished as the original work and shall accurately match all surrounding work (painting excluded). Equipment and materials furnished by others which require connection to the heating system, shall be connected by the contractor. All piping, ductwork and equipment shall be installed without critical damage to structural members. The contractor shall provide sleeving as required and upon completion of rough in work, sleeves shall be made sound and fire tight. Metal chimneys shall not be installed as exposed piping in habitable areas, closets, or stairways. They shall be enclosed with fireproof material to provide a minimum of 2 inch air space and meet local code requirements. The contractor shall install chrome plated escutcheons where exposed piping passes through floors, walls and ceilings. All heating and ventilation equipment and fuel storage tanks not required to remain shall be removed by the contractor. Attachment No. 1 The entire new and existing installation shall be left neat, clean and in usable condition. HEATING EQUIPMENT AND REPAIRS FORCED AIR SYSTEMS: New installations shall be complete and shall include new furnace, ductwork and registers. Provide hot air supplies and cold air returns throughout the house. Duct insulation shall meet current CTED specifications. HEATING UNITS: New heating units shall be installed complete with new disconnect switch, electrical circuit, flue pipe and all controls, wiring, accessories, thermostat, and valves. Thoroughly clean the, oil tank, fittings, and lines. Chimney cleaning shall be performed by a licensed chimney sweep when applicable Note that the electrical contractor will wire a separate circuit (if one does not already exist) from the panel box to a junction box located near the heating unit. It is the heating contractor's responsibility to coordinate installation of the circuit unless otherwise specified. New units shall have ratings sufficient to ensure proper heating of all habitable rooms within the living unit they intend to serve. Such determinations shall be made in accordance with the best practices of the National Warm Air Heating and Air Conditioning Association, the "Guide" of the American Society of Heating. This shall include heat loss calculations if required by local authorities. Furnace shall be able to maintain a room temperature of 70 degrees at a point three feet above the floor in all habitable rooms, when outside temperature is 0 degrees F. Heating system shall be designed, installed, balanced and adjusted to provide for the distribution of heat to all habitable rooms and other spaces in accordance with the calculated heat loss of the spaces to be heated. No heating unit shall be more than 15% oversized for its particular installation. New units must have an efficiency rating of 81% or greater. All work performed in the installation of heating equipment shall be in accordance with the manufacturer's recommendations. Mechanical equipment shall be so installed and located that inspection, routine maintenance and/or repair is possible without removing item of permanent construction. Listed furnaces shall be installed in accordance with their listings. Unlisted warm air furnaces shall be installed with a minimum clearance of 6 inches between the top bonnet plenum (or between the top of an extended plenum or duct within 3 feet of such furnace) and combustible material. All approved gas or oil burners shall bear the manufacturer's identification marks, the burner trade name and the model number or size installed. HEATING UNIT CONTROLS: When heating unit controls are to be replaced or repaired, the contractor shall examine all controls for that particular unit, including the thermostat, and repair and replace those controls found to be defective. Operating and limit or safety devices shall be AGA approved or UL listed. If specified install a programmable thermostat. CLEANING AND ADJUSTING HEATING SYSTEMS: After servicing, the mechanical contractor shall leave a certificate on the furnace indicating his/her name, the work or repairs completed, and the date. Attachment No. 1 When heating units are cleaned and adjusted, the contractor shall thoroughly clean and adjust the system for proper operation. When necessary or specified replace thermostat. On forced air systems, this shall include cleaning the blower motor and fan assembly, installing new air filters and replacing blower motor drive belts and testing of combustion regulators. On oil fired systems, this shall include cleaning the oil tank (removing condensation and sediment), fittings and lines and replacing fuel filters and testing of combustion regulators. On all fossil fuel heating appliances, the heat exchangers, vent connectors and vents shall be inspected for damage or deterioration. Vent connectors and vents shall be cleaned. Ductwork shall be cleaned only when specified on the Invitation to Bid. When specified, clean and vacuum at all accessible openings. Special attention shall be paid to duct runs with floor registers. DUCTWORK AND REGISTERS: Sheet metal shall be not lighter than 28 gauge galvanized sheet metal. The sheet metal work shall be accurately formed, be fitted snugly, have exposed edges folded at least 1/2 inch and leave no sharp corners exposed. Fiberglass duct which is UL listed and meets NFPA standards is also acceptable. New flex duct is allowed if it has at least R-8 rated insulation and meets UL, NFPA and ASTM standards. All ductwork shall be properly supported with hangers or floor rest channels. Special care shall be taken in supporting flex duct to avoid any sagging or kinks. No new duct work shall be installed in finished rooms, including closets. Balance dampers shall be installed and/or ductwork shall be sized to control the flow of air to all supply registers. Dampers shall be labeled, indicating the rooms served and the system shall be balanced. New supply outlets may be installed in floors and walls. When installed in the floor, outlets shall be no closer than 6 inches to any wall. Supply outlets installed in outside walls shall be located in front of windows. Basements need not have a separate supply outlet unless specified. All supply registers shall be equipped with shut off dampers. Return air inlets shall be located in walls or floors, as is appropriate to their size and function. Supply and return ducts in unheated space shall be insulated to a minimum R-19. Insulation level and installation shall comply with current State of California or utility company specifications. These specifications shall be included in the Invitation to Bid. Where ducts are used for cooling, insulation shall be covered with a sealed joint vapor barrier. All forced air heating ducts shall be sealed according to CA Title 24 current duct sealing procedures using acceptable materials. PAINTING GENERAL INSTRUCTIONS: The quality of paints and related materials shall equal or exceed those first grade and related materials manufactured by: Olympic Stain Glidden Dunn Edwards "or equal" Benjamin Moore Frazee's Sherwin Edwards Attachment No. 1 All paints, primers, solvents, glues, mastics, etc. must qualify as low-VOC unless unavailable in the market place for the specific work specified. Paint shall be understood to include not only paints but also primers, enamels, sealers, stains and other coatings, plus all paint accessory materials. The addition of thinners, quick drying additives, or other adulterants of any kind shall not be permitted, except as specifically recommended by the manufacturer. The use of splatter -dash technique for appearance purposes on interior surfaces shall be limited to "orange peel "or other fine -medium texture only. Texture shall not be applied to any trim, woodwork or metalwork. Any atypical paint applications and color schemes shall be paid for by the owner. Certain finish coats are formulated to serve as primers and may be so used when applied in accordance with manufacturer's recommendations. Paint shall not be applied until surfaces are thoroughly dry, excepting certain masonry paints formulated for application to wet surfaces. Contractor shall assume responsibility for such conditions and shall make good any work executed prematurely. Any work which is damaged by the contractor or his/her employees, or for any reason is unacceptable, shall be repaired or redone to match surrounding areas. All touch up painting shall match surrounding areas. No exterior painting shall be done unless the temperature is between 50 degrees F. and 100 degrees F. and is expected to remain above freezing (32 degrees F.) for at least 24 hours. Items or surfaces for which colors or finishes are not selected shall be painted or finished to match the adjacent background or adjacent finish colors or stains. Such items shall include, but not limited to, roof vents (color of roof), covers, housings, brackets, piping, duct work, drain pipes, conduit, access panels, unfinished or prime coated hardware, grills, registers, louvers, cabinets, electrical panels and similar items. New and previously unpainted hardware accessories and electrical equipment are not to be painted. Switches and their cover plates shall not be painted. Painter shall remove these items as necessary, reinstalling them when his/her work is completed. Square foot coverage per gallon shall be as recommended by the manufacturer. Paint shall have easy brushing properties. Paint shall be kept well stirred during painting and be screened free from skim, lumps and foreign matter. No paint, nor the residue thereof, shall be used after it is caked or hardened. Paint shall be worked into all corners, voids and joints. All surfaces other than those of metal items shall receive two coats of paint and all coats shall be thoroughly dry prior to application of next. Initial primer coat may be counted as one coat of the two required coats of paint, provided adequate hiding has been obtained. Tinted primer coats are acceptable. Additional coats may be required if the finish does not provide acceptable coverage or hiding. Finished work shall be uniform, free of runs and sags, smooth, free from brush marks and of Attachment No. 1 uniform color. Where paint adjoins other materials or where different colors meet, the edges of the paint shall be sharp and clean. Upon completion, the entire area shall be cleaned and left in a neat condition, including removal of all overspray. All paint shall carry a minimum manufacturer's durability warranty of 10 years, and the contractor will fully guarantee the job for one year. At least 1/2 gallon of each color used shall be left with the owner, with label attached. Colors of all paint are the owners' choice, subject to the Secretary of the Interior's guidelines in the case of historic buildings. EXTERIOR PAINTING GENERAL INSTRUCTIONS: All surfaces to be painted shall have all loose, blistered, scaling, alligatored and crazed coatings removed and shall be thoroughly cleansed to receive new paint. Paint may be applied by any of the following: brush, roller, air compressor, or airless sprayer, unless otherwise specified in the Invitation to Bid. When exterior paint is applied to correct a lead base paint problem, it shall be the contractor's responsibility to insure that the old paint that has been removed from the exterior of the house is removed from the premises according to state and local laws and guidelines. PREPARATION: Secure loose material and reset nails as needed. Caulk at all joints where caulking has deteriorated and/or is missing. Remove all miscellaneous nails, hooks, screws, tacks, etc. Remaining holes, those no larger than a dime, shall be properly filled depending on the surrounding surface material. All patches shall be sanded smooth. All windows, doors and other openings shall be re -caulked. All dried out or otherwise deteriorated glazing compound shall be replaced. If any area to be painted shows signs of mildew, those areas shall be cleaned, sanded and sealed before painting. Exterior preparation work must be inspected by NCRRP Staff prior to application of primer. After notification by the contractor, preparation work will be inspected in a timely manner. WOOD TRIM, MILLWORK AND SIDING: Sandpaper new millwork prior to application of primer or stain. Reset all loose nails and putty all nail holes and minor cracks in wood with putty after spot priming these areas with exterior oil base primer. Scuff sand all trim to remove gloss and provide tooth for adhesion of new paint. Prime coat all knots and resinous wood with a prepared knot sealer or aluminum paint (which is not considered a primer coat). Apply one coat of exterior oil base primer to all new and bare wood surfaces. Then apply two coats of exterior, non -chalking, oil base or latex paint to all wood surfaces. Doors and sash and their trim shall be gloss finish. Wherever encountered, do not paint natural finish ceiling surfaces unless specified in the Invitation to Bid. First prepare these surfaces to be refinished. Then apply at least two coats of spar varnish or polyurethane varnish formulated for exterior use. Likewise, do not paint natural finish wood shingles, shakes, or rough sawn siding unless painting of this siding is specified. Instead, apply two coats of oil or pigmented oil stain. When necessary, stain new sections of siding to match existing. Attachment No. 1 WOOD DOORS: Wood doors are to be natural finished unless otherwise specified. Prepare door for new finish. All door edges are to be eased. Edges, including the top and bottom, shall receive the same finish as the faces. Natural finish for new doors shall be one coat of stain (owner's choice of color) and at least two coats of clear sealer formulated for exterior use. Paint for new doors and existing doors shall be one coat of exterior oil base primer and one coat of exterior oil base paint. WOOD STEPS AND DECKS: Caulk all joints between wood surfaces and walls. Reset all loose nails. Apply at least two coats of oil base exterior floor or deck enamel in accordance with manufacturer's recommendations. CONCRETE AND MASONRY SURFACES: Whether specifically scheduled or not, if exterior foundation walls are badly stained or splattered with paint during painting, they shall be painted to be in harmony with the siding. Apply at least two coats of resin -emulsion paint, solvent rubber paint or floor and deck enamel to horizontal surfaces. If oil base paint is used, neutralize surface before painting. Walls shall receive at least two coats of polyvinyl acetate emulsion paint. Surfaces which have been waterproofed shall be treated as per manufacturer's instructions prior to painting. GUTTERS AND DOWNSPOUTS: Gutters and downspouts shall match trim color on house if being repainted. INTERIOR PAINT GENERAL INSTRUCTIONS: All surfaces to be painted shall have all loose, blistered, scaling, and alligator coating removed and shall be thoroughly cleansed to receive new paint. When painting wallpapered surfaces the wall paper must be tight and edges or joints feathered where necessary. Secure loose material and reset nails. Remove all miscellaneous nails, hooks, screws, and tacks from walls and wood work. Patch all holes with spackle or oil base putty depending on the surface material. All patches shall be smoothly done and all rough edges sanded smooth. Seal all un-removable grease spots or stains with sealers and/or primers designed for that purpose. Kill stain or seal all varnished wood surfaces before painting so that desired coverage is obtained. If any area to be painted shows signs of mildew, those areas shall be cleaned, sanded and sealed before painting is done. Painting by room shall include walls, ceiling, doors, windows (including those surfaces exposed by opening), trim, cabinet work, miscellaneous shelving, shall be painted and/or refinished as specified. A closet is considered a part of the room in which it is located, as well as closet rods and shelves and bracing and drawers. Natural finished items are not to be painted unless specified. Interior of cabinets will not be included unless specified. DRYWALL OR PLASTER WALLS AND CEILINGS: Hairline cracks and scraper dents shall be spackled and sanded. Open cracks shall be raked out and damaged plaster shall be removed. Apply new plaster in coats thin enough to prevent shrinkage. All repair work, when completed, shall match existing surfaces, present a neat appearance and be free of hairline cracks and Attachment No. 1 bulges. All surfaces shall be washed or sanded prior to painting. Previously painted surfaces shall receive at least two coats of interior latex or oil base paint. New plaster or drywall shall receive a first coat of interior primer and at least two additional coats of paint. Paint for kitchens, bathrooms and utility rooms shall be semi -gloss enamel. Surfaces shall be painted with a roller and/or brush except that certain types of texture finish ceilings cannot be satisfactorily painted with roller or brush. These surfaces only may be spray painted. WOOD WINDOWS AND DOORS: All door edges shall be eased. If new wood is open grain type, fill or seal surface to prevent grain rising. Apply one coat of suitable oil base primer to all new and bare wood surfaces. Then apply at least two coats of interior semi -gloss enamel (oil base or latex) to all surfaces. Edges - top sides and bottom shall be painted the same as the door faces. Color shall match adjacent wall surfaces. Painting shall be done with brush only. For natural finish, all door edges shall be eased. Apply one coat of penetrating sealer to all trimmed door edges. All interior doors, if not pre -finished, shall receive at least two coats of spar varnish or polyurethane varnish. Edges - top, bottom and sides shall be finished the same as door faces. Varnish shall be applied with brush only. WOOD TRIM, MILLWORK, PANELING, CABINET WORK AND SHELVING: It is not intended that cabinet work and other wood surfaces scheduled for refinishing or painting be completely stripped down to bare wood. Rather, it is intended that scratches and other surface blemishes be treated so as to make them unnoticeable. Gloss shall be removed from all enamel surfaces to be painted. Stain or prime and finish as necessary. If interior of cabinets are to be refinished, it will be scheduled separately. For painting, sandpaper new millwork prior to application of primer. Reset loose nails. All nail holes shall be filled and sanded prior to painting. If new wood is open grain type, fill or seal surfaces to prevent grain rising. Apply one coat of a suitable primer to all new and bare wood surfaces. Then apply at least two coats of interior semi -gloss enamel (oil base) to all surfaces. Color shall match adjacent wall surfaces, unless scheduled otherwise. Painting shall be with brush only. For natural finish, sandpaper new millwork prior to application of finish. All wood to be refinished shall be first prepared as necessary to receive new finishes. Loose nails shall be reset and all holes shall be filled with linseed oil putty. If new wood is open grain type, surfaces shall be filled or sealed to prevent grain rising. New or bare wood shall be stained to match existing as closely as possible. All natural finish wood shall receive at least two coats of varnish, shellac, lacquer or polyurethane coating as appropriate to its intended use. Application shall be with brush only. LEAD BASED PAINT ABATEMENT If a painting instruction is noted in the Invitation to Bid as a "Lead based abatement project "the following procedures must be followed. EXTERIOR: All loose, blistered, scaling, and alligator paint coatings shall be removed by hand scraping with appropriate containment based on the EPA Lead Renovation, Repair and Painting Attachment No. 1 Program effective April 22, 2010. Machine sanding and the use of propane torches are not allowed. All paint film that has been removed from the house must be captured on drop cloths, removed from the premises, and disposed of in accordance with local and state regulations. INTERIOR: Interior lead based paint can be abated either by removal and repainting or by covering with fiberglass cloth, sheetrock, or non -strippable wallpaper. In areas of paint removal, disposal shall be the same as exterior described above. NOTICE: Contractors participating in the NCRRP are ultimately responsible for full compliance with Federal, State and Local regulations regarding lead based paint abatement, disposal and worker protection. Attachment No. 1 Exhibit I: First -Time Homebuyer Assistance Program Manual SAN DIEGO HABITAT FOR HUMANITY FIRST-TIME HOMEBUYER ASSISTANCE PROGRAM MANUAL City of National City Housing and Grants 1243 National City Blvd. National City, CA 91910 (619) 336-4391 (619) 336-4286 Fax EFFECTIVE: October 17, 2012 (Subject to change) EQUAL HOUSING OPPORTUNITY Attachment No. 1 Exhibit I: First -Time Homebuyer Assistance Program Manual TABLE OF CONTENTS Effective October 17, 2012 PURPOSE OF THE PROGRAM MANUAL GENERAL DEFINITIONS SECTION I -BORROWER ELIGIBILITY REQUIRMENTS A. ELIGIBLE BORROWER B. INCOME CRITERIA C. HOUSEHOLD ELIGIBILITY REQUIREMENTS D. ELIGIBLE PROPERTIES E. MAXIMUM PURCHASE PRICE F. LOAN PROCEDURES AND TERMS APPENDIX A- INCOME APPENDIX B- SHARED EQUITY EXAMPLE APPENDIX C- HOME REGULATORY AGREEMENT APPENDIX D- DEED OF TRUST APPENDIX E- PROMISSORY NOTE 2 Attachment No. 1 Exhibit I: First -Time Homebuyer Assistance Program Manual PURPOSE OF THE PROGRAM MANUAL The purpose of this Program Manual is to describe the program and delineate the role of the City, San Diego Habitat for Humanity Community Housing Corporation ("SD-HFH"), the applicant/borrower and the lenders. This document contains a description of the City of National City First -Time Homebuyer Program requirements. Loan documents are attached in the Appendix. GENERAL DEFINITIONS AFFIDAVIT: A deposition filed in connection with the program made under oath and subject to penalties of perjury. APPLICANT: Any person who applies for City loan assistance. ASSETS: Cash or a non -cash item that can be converted to cash. Assets exclude necessary personal property. CITY: The City of National City. COMMITMENT: A document, which is originated and issued by the SD-HFH, based on review and approval of the application package and lender's certification that the requirements necessary for issuance of a City loan have been met. San Diego Habitat for Humanity Community Housing Corporation, Inc. ("SD-HFH"): City selected HOME CHDO subrecipient that will process, underwrite, close, and package, and service the loan. ELIGIBLE BORROWER: Any person meeting the criteria as set forth in this manual. ELIGIBLE DWELLING: Real property located within the City of National City. This may include a residential unit to be built, a new unit, or an existing. The unit must be designed as a residence for one household and must meet property standards and criteria as set forth in this manual. EQUITY: The dollar amount that constitutes the difference between the sales price of the Property and the sum of the following amounts; 1) principal on the First Note and Deed of Trust; 2) principal on the Second Note and Deed of Trust to the City of National City; 3) all costs of sale, including costs of brokers' commissions, escrow fees, title costs and fees, recording costs, etc.; 4) current year taxes, including all real estate taxes calculated to the date of sale; 5) borrower's down payment not including the loan from the City to Borrower; 6) costs of any capital improvements to the Property, provided such improvements were approved by the City prior to construction and provided that such improvements have been documented to the satisfaction of the City. EQUITY SHARE: The equity share starts at 50%/50% between the Borrower and the City. The amount of the Borrower's share in the Equity of the Property shall increase by five percent (5%) per year, measured on the anniversary date of the Deed of Trust. Correspondingly, the City's share in the equity of the Property shall decrease by five percent (5%) per year. In the event that no Equity exists at the time of transfer or sale, the City loan (HOME funds) will still be due and payable. In the event that a negative Equity situation exists, and the full amount of the City loan is not available to be recaptured, the amount of the loan required to be repaid to 3 Attachment No. 1 Exhibit I: First -Time Homebuyer Assistance Program Manual the City will be set forth in the HOME agreement between the Borrower and the City. A Shared Equity example is attached as Appendix B. EXISTING HOME (RESALE HOME): A dwelling unit that has been previously occupied. HOME FUNDS/HOME INVESTMENT: Funds received pursuant to the HOME Investment Partnership program under the Department of Housing and Urban Development (HUD), codified at 42.U.S.C. Section 12701, et seq., 24 CFR Part 92, to provide funds for affordable housing HOMEOWNER INVESTMENT: Homeowner's down payment and any capital improvement investment made by the owner since purchase INCOME: The gross amount of all taxable income for all mortgagors and adult household members that is anticipated to be received during the coming twelve (12) months. All income derived from any source, including income from wages (gross pay,) overtime, pensions, veteran's compensation, bonuses, public assistance, alimony, net rental income, dividends and interest, etc. must be included. Non-taxable income must be listed, but bracketed, in order to exclude this income from the annual family income calculation; verification of non-taxable status may be required. ISSUER: The City of National City. LENDER: A financial institution, whether broker, retail, or wholesale, licensed to provide mortgage loans in the State of California. The institution must meet all the requirements established by the City in order to participate as a lender in the City program LOAN: An extension of credit provided to an Eligible Borrower to finance the purchase of an Eligible Dwelling LOW-INCOME: A household with income at or below 80% of the Area Median Income as established by the U.S. Department of Housing and Urban Development. Every 12-18 months, the U.S. Department of Housing and Urban Development updates these figures NEW HOME: A dwelling unit that is proposed to be constructed, is currently under construction, or exists but has not been previously occupied. NET PROCEEDS: Sales price minus loan repayment and closing costs. OWNERSHIP: Any of the following interests in residential property: fee simple interest; joint tenancy; tenancy in common; interest of a tenant -shareholder in a cooperative; life estate; interest held in trust for the Applicant that would constitute a present ownership interest if held by the Applicant. PRINCIPAL RESIDENCE: Residence must be occupied as the primary home of the buyer and be defined as one of the following types of residences: 1) single-family house; 2) condominium unit; 3) town home unit PROHIBITED MORTGAGE: Subordinate mortgages and any liens superior to the City First - Time Homebuyer loan, other than the new first Trust Deed. PROPERTY VALUE: Value of the eligible property as determined by a certified appraisal 4 Attachment No. 1 Exhibit I: First -Time Homebuyer Assistance Program Manual PURCHASE PRICE: Cost of acquiring the residence, excluding usual and reasonable settlement or finance costs, and the value of services performed by mortgagor in completing the acquisition. RELATED PERSON: Any party(ies) who may have a beneficial interest in the sale or financing of the subject property, other than a qualified lender SINGLE-FAMILY RESIDENCE: Housing unit intended and used for occupancy by one household 5 Attachment No. 1 Exhibit I: First -Time Homebuyer Assistance Program Manual BORROWER ELIGIBILITY REQUIREMENTS Both federal and state law sets borrower eligibility requirements. Income guidelines are modified based on federal directives every twelve to eighteen months. The City will notify the Lenders when those changes take place, including the effective date of each change. A. ELIGIBLE BORROWERS 1. Oualified applicants must be first-time homebuvers. The Applicant may not have held an ownership interest in his/her Principal Residence within the past thee years. This timeframe includes those 36 months before the date the mortgage is executed. In the case of a married couple, both parties must meet this requirement. The buyer, spouse and any other parties who will be listed on title must meet this requirement. The Lender must verify this through his/her examination of the Applicant's federal tax returns for the preceding three years. The Applicant(s) cannot have claimed a deduction for mortgage interest or taxes on real property claimed as a Principal Residence. 2. To demonstrate compliance with this requirement, Applicants must complete and sign the First-time Homebuyer Application and Affidavit and provide copies of their last three (3) years signed federal tax returns (or acceptable alternative exhibits). a) The Applicant(s) can provide the signed 1040A 1040EZ or 1040 federal income tax forms for the preceding years, including all schedules. These forms shall be submitted to the Lender and forwarded to the City with the completed loan application. The tax returns must be signed and dated in blue ink by the Applicants. b) If the Applicant(s) has/have filed the short form, 1040A or 1040EZ for the last three (3) years, completes and signs the required affidavits, but is unable to produce copies of the signed returns, the City will accept a completed copy of IRS Letter Form 1722 in lieu of actual returns. The Applicant may request this letter, free of charge, from the local IRS Office. The Letter 1722 must include the signature of a representative of the IRS. Letter Form 1722 should include the following information: i. Name and social security number ii. Type of return filed Marital status iv. Tax shown on return v. Adjusted gross income vi. Taxable income vii. Self-employment tax viii. Number of exemptions c) In the event the Applicant(s) was not obligated to file federal income tax returns for any of the preceding three (3) years, it will be necessary for the Lender to obtain a completed and signed Income Tax Affidavit from the Applicant, which is required in place of the above. This document is to be forwarded to the City with the application package. d) If either copies of the required tax returns or the 1722 Form cannot be obtained, the Lender may be able to help the Applicant establish first-time homebuyer status with copies of utility bills and a signed and notarized statement from the Applicants landlords for the previous three years. e) When the Commitment is issued during the period between January 1 and February 15 and the Applicant has not yet filed his/her/their Federal Income Tax Return for the preceding year, the City may rely on an affidavit. The affidavit must affirm that the Applicant is not entitled to claim deductions for taxes or interest on a principal residence for the preceding year. After February 15, a tax return will be required. 3. Upon close of escrow, the buyer must occupy the home as their Principal Residence. 6 Attachment No. 1 Exhibit I: First -Time Homebuyer Assistance Program Manual 4. Applicant(s) need not be a U.S. citizen. Legal resident aliens are eligible to apply but must show proof of status. 5. City of National City employees are eligible to participate. B. INCOME CRITERIA 1. Income must be at or below 80% of the currently published San Diego County median income, adjusted for household size. Income limits have been established by the U.S. Department of Housing and Urban Development and are adjusted annually. In accordance with this requirement, applicants may not obtain "stated income" loans. The true income must be a qualifying factor in loan approval. Household Size Annual Income 1 person $ 45,000 2 people $ 51,400 3 people S 57,850 4 people s 64,250 5 people s 69,400 6 people s 74,550 7 people $ 79,700 8 people $ 84,850 ective December 2011 2. Gross income is calculated by taking the Applicant's anticipated adjusted gross monthly income, at the time of application, and multiplying it by twelve. Adjusted gross income includes the gross amount of all taxable income, before payroll deductions of: wages, salaries, commissions, fees, tips and bonuses, alimony, public assistance, etc. The adjusted gross income also includes the income earned on assets, such as dividends earned on stock and interest earned on savings and checking. The adjusted gross income qualification is pursuant to the 24 CFR 92.203(b)(3) for reporting under the IRS Form 1040 series for individual federal annual income tax purposes. Gross income includes the combined taxable adjusted gross income of all mortgagors and all other adult members of the household. a. Self -Employed or Seasonal Employees: The formula that the Lender uses to determine the anticipated gross monthly income of self-employed and/or seasonal workers is acceptable provided that all income as described in this manual is included in the calculation. b. Co-Borrower/Co-MortaaQor: If a co -borrower or co -mortgagor will be on both the title and the deed of trust, his/her income must be included in determining eligibility for the program. The IRS regulation states "income to be taken into account in determining gross income is income of the mortgagor(s) and any other person who is expected to both live in the residence being financed and to be secondarily liable on the mortgage." c. Spouses: Married couples are treated as co -applicants, whether: 1) they are separated; 2) either spouse is applying for the loan; or 3) either spouse plans to be named on title. d. Comoutin4Income i. Program Computation vs. Mortgage Underwriter's Computation: The City loan figure represents ANTICIPATED income, while the Lender's figure represents income AVERAGED over the last few years and the City program requires that every source of taxable and non-taxable income be listed on the Income Computation Worksheet, however, non-taxable income should be bracketed and not added into the maximum annual family income calculation. 7 Attachment No. 1 Exhibit I: First -Time Homebuyer Assistance Program Manual ii. Income Parameters: See Appendix A of this manual for examples of sources of income, which must be considered in computing buyer income. iii. Military Pay: See Appendix A of this manual for Military Pay explanations. iv. Self -Employed: Year-to-date profit and loss statement and three prior year's tax returns are required. v. Other Income: Sources of income other than wages must be documented by third party verifications. In cases where the third party fails to respond, acceptable alternative sources of documentation can be determined on a case -by -case basis and should follow standard FNMA income verification guidelines. vi. Documentation: In cases where the Applicant is employed, acceptable sources of documentation used to verify income include a recent pay stub with year-to-date earnings and an employer Verification of Earnings statement (VOE). If the application is taking place during the first four months of the year, a year-to-date total may be insufficient. The Lender must supplement the pay stub information with the prior year W-2 statement and/or tax returns. On some pay stubs, the year-to-date earnings include pay from the last part of the prior year. If this is determined to be the case, request that the employer submit a signed statement of verification of exact year-to-date income. Miscalculation can result in the determination of excess income and disqualification of the buyer. vii. Income Verification: The Lender bears the burden of proving that the Buyer's income is within the program guidelines. The computation should be clear, complete, and documented by third party verifications, to the greatest extent possible. viii. No Income: Adult members, 18 years and older, of the household who have no income must complete and sign the Declaration of No Income form. C. HOUSEHOLD ELIGIBILITY REQUIREMENTS 1. Households shall have sufficient income and credit -worthiness to qualify for primary financing from a participating lender. 2. Maximum liquid assets after down payment and closing cost contribution may not exceed $25,000. D. ELIGIBLE PROPERTIES Properties acquired and rehabilitated by SD-HFH that have met local code inspection standards and complied with lead -based paint regulations as prescribed by the City. The program may also be used on new construction projects SD-HFH. E. MAXIMUM PURCHASE PRICE The maximum purchase price cannot exceed 95 percent (95%) of the median purchase price for the area, as determined by the U.S. Department of Housing and Urban Development (1 unit-$394,250, effective 12/2011). F. LOAN PROCEDURES AND TERMS 1. The loan amount shall be the difference between the sales price, less any down payment, and the amount of the first mortgage for which the Eligible Household has been provided a bona fide lender approval. 2. The maximum CLTV (combined loan to value) of the City and the new 1st Trust Deed loans shall not exceed the maximum approved CLTV required by the 1st mortgage lender. 3. Non -occupant co -borrowers shall not be allowed. 8 Attachment No. 1 Exhibit I: First -Time Homebuyer Assistance Program Manual 4. Total housing ratio (PITI) cannot exceed 36% of Applicant(s) gross monthly income. The City may make exceptions if less than twenty percent payment shock is involved. 5. Total debt -to -income ratio may not exceed 45% or 41% if obtaining an FHA loan. 6. No prepayment penalty allowed. 7. Maximum fees to the Applicant of 1.25% origination, discount points for below par pricing only, and $350 processing are acceptable for the purchase transaction. No other Broker or Admin type fees allowed. Other third party fees that are reasonable and customary are allowable. 8. The terms of the City's second trust deed are designed to encourage long-term residency in the program -assisted home. No interest is charged on the loan (except in the case of default). Instead, the program is based on an equity share. The amount of equity due to the City is based upon the number of years after the date of execution of the City's loan. It begins at 50% of the equity and decreases by 5% each year. After 10 full years of owner occupancy, there is no equity share. Only the principal remains due and payable. See shared equity example in Appendix B. 9. The loan shall become due and payable at the time of the property's transfer of title, refinance (except as earlier defined), rental or sale. 10. The loan shall also become due and payable when the acceleration clause is triggered. The acceleration clause will be in effect when the property is no longer the principal place of residency of the eligible homebuyer, or upon discovery of willful misrepresentation or fraud in connection with the program: Rental of the property is prohibited and will cause the loan to be accelerated. 11. Second and subsequent mortgages to the new First Trust Deed, except for this City Loan, are not permitted. 12. The loan is not assumable. 13.A Promissory Note and Deed of Trust will secure the loan. 14. The City Loan can be used with conventional, FHA, VA, and other loans issued be a qualified lender, except adjustable rate mortgages with less than five years fixed, negative amortization and stated income mortgages. 15. Lenders will process the underlying mortgages (first loan) using standard procedures, with adjustments to those procedures to conform to the City loan guidelines. 9 Attachment No. 1 Exhibit I: First -Time Homebuyer Assistance Program Manual APPENDIX A INCOME GROSS ANNUAL INCOME Gross annual income is defined as the anticipated annualized gross taxable income of a mortgagor (or mortgagors) and adult members of the household. Annualized income is the sum of monthly gross taxable income multiplied by twelve (12). Gross monthly income includes all taxable sources of income derived from: gross pay, overtime compensation, part- time employment earning, bonuses, dividends, interest, royalties, pensions, Veterans Administration (VA) compensation, net rental income, alimony, public assistance payments, sick pay, social security benefits, unemployment compensation, income received from trusts, income received from business activities or investments, and any other source of taxable income not listed above. Information regarding income must be current within the most recent 30-day period preceding loan closing. Income not included by the Lender, but listed above, must be added to the Lender's income total on the "Income Computation Worksheet" income eligibility calculation for the City loan program. Income of the mortgagor (or mortgagors) and any other adult who is expected to live in the residence being financed must also be included in the household income calculation. All non-taxable income must be listed and bracketed on the "Income Computation Worksheet", but not counted when calculating the annual gross family income. In summary, income of all mortgagors (on both title and deed of trust) shall be included in the gross income calculation for the program. Additionally, the income of any adult who will live in the residence should be included. For married couples, income includes the income of both spouses, whether or not on title. MILITARY PAY For purposes of computing the buyer's gross monthly income, the monthly income is the "total entitlement" shown on the applicant's most recent monthly Leave and Earnings Statement and includes all regular pay, special pay and allowances. Non -taxed income, such as a housing allowance is not counted as income, but must be listed and bracketed. Certain categories of pay, which may be received only sporadically, may need to be considered on a case -by -case basis. 10 Attachment No. 1 Exhibit I: First -Time Homebuyer Assistance Program Manual APPENDIX B SHARED EQUITY EXAMPLE NOTE: The following example assumes an initial (a) Gross Sales Price of $150,000 (b), Net Sales Price of $135,000 ($150,000 minus 10% seller fees), (c) 1st mortgage balance of $100,000 and City 2nd of $25,000 (d), Total Equity of $10,000 (b-c), and a City loan of $25,000.00 at a 0% interest rate, with an APR of 0%. The table is for the purpose of illustration only. Actual sales price and net sales price will vary. The principal amount of the loan remains due. # Months After Date Of Agreement Gross Sales Price (a) Net Sales Price (b) (a-10% fee) Mortgage Balances ( c) (1st $100k & 2nd $25K) Total Equity ( d ) ( b-c) Buyer's Equity Share Increases 5% Per year City of Chula Vista's Equity Decreases 5% per year 0-12 $150,000 $135,000 $125,000 $10,000 $5,000 (50%) $5,000 (50%) 13-24 $155,000 $139,500 $125,000 $14,500 $7,975 (55%) $6,525 45%) 25-36 $155,000 $139,500 $125,000 $14,500 $8,700 (60%) $5,800 (40%) 37-48 $160,000 $140,000 $125,000 $15,000 $9,750 (65%) $5,250 (35%) 49-60 $160,000 $140,000 $125,000 $15,000 $10,500 (70%) $4,500 (30%) 61-72 $165,000 $148,500 $125,000 $23,500 $17,625 (75%) $5,875 (250/) 73-84 $165,000 $148,500 $125,000 $23,500 $18,800 (800/0) $4,700 20 % 85-96 $170,000 $153,000 $125,000 $28,000 $23,800 (85%) $4,200 (25%) 97-108 $170,000 $153,000 $125,000 $28,000 $25,200 (90%) $2,800 (10%) 109-120 $175,000 $157,500 $125,000 $32,500 $30,875 (95%) $1,625 (5%) Thereafter $175,000 $157,500 $125,000 $32,500 $32,500 (100%) $0 (0%) In this examp e, the finance charge could vary between $1,625 and $6,525. Your amount will differ, depend ng upon gross sales price, net sales price, the amount of equity, and the number of months after the date of agreement that the sales occurs. If the Property is sold in the first year of the term of the Note secured by this Deed of Trust, Borrower shall receive fifty percent (50%) of the Equity in the Property and the City shall receive fifty percent (50%) of the Equity. "Equity" is defined as the dollar amount that constitutes the difference between the sales price of the Property and the sum of the following amounts: 1. Principal on the First Note and the Deed Trust; and 2. Principal on this Second Note and Deed of Trust to the City of National City; and 3. All costs of sales, including cost of brokers' commissions, escrow fees, title costs and fees, recording cost, etc.; and 4. Current year taxes, including all real estate taxes calculated to the date of sale; and 5. Borrower's down payment not including the loan from the City to Borrower; and 6. All principal paid down on the First Note and Deed of Trust; and 7. Costs of any improvements to the Property provided such improvements were approved by the City prior to construction and provided that such improvements have been documented to the satisfaction of the City. 11 Attachment No. 1 Exhibit I: First -Time Homebuyer Assistance Program Manual The amount of the Borrower's share in the equity of the Property shall increase by five percent (5%) per year, measured on the anniversary date of this Deed of Trust. Correspondingly, the City's share in the equity of the Property shall decrease by five percent (5%) per annum. For the sake of example, if the Property is sold more than (5) but less than six (6) years after the date of this Deed of Trust, the City would have a twenty-five percent (25%) share in the Equity and the Borrower would have a seventy five percent (75%) share in the Equity of the Property. In the event that no Equity exists at the time of transfer or sale, the balance of the Note will be due and payable. In the event that a negative Equity situation exists, i.e., the proceeds from the sale of the Property are less than the balance of the Note, all net proceeds from the transfer or sale shall be paid to the City, as beneficiary in full satisfaction of the Note. When the HOME recapture requirement is triggered by a sale (voluntary or involuntary) of the housing unit, and there are no net proceeds or the net proceeds are insufficient to repay the home investment due, the participating jurisdiction can only recapture the net proceeds, if any. The net proceeds are the sales price minus superior Loan repayment (other than HOME funds) and any closing costs. 12 Attachment No. 1 Exhibit I: First -Time Homebuyer Assistance Program Manual APPENDIX C HOME REGULATORY AGREEMENT FREE RECORDING REQUESTED PURSUANT TO GOVERNMENT CODE SECTION 27383 WHEN RECORDED PLEASE MAIL TO: Office of the City Clerk City of National City 1243 National City Boulevard National City, CA 91950-4397 APN: XXX-XXX-XX (SPACE ABOVE FOR RECORDER'S USE ONLY) FTHB #XXXX HOMEOWNER'S REGULATORY AGREEMENT FOR HOME PROGRAM PARTICIPATION THIS REGULATORY AGREEMENT ("Regulatory Agreement" or "Agreement") is entered into as of this 18th day of January, 2011 between the City of National City ("City"), and a Qualifying Household, on behalf of itself and Borrower's Name ("Owner"). PREFACE WHEREAS, the City of National City receives a formula HOME Investment Partnerships ("HOME") Program allocation from the Federal Department of Housing and Urban Development to carry out eligible activities in accordance with program requirements; and WHEREAS, the Owner is interested in participating in City 's HOME -funded First -Time Homebuyer Program, and will comply with all program regulations and requirements; and WHEREAS, concurrently with the recordation of this Regulatory Agreement the City is funding a loan ("Loan") secured by a deed of trust ("Deed of Trust") to aid Owner, who is a first-time homebuyer, in acquiring the Property described below. The Trust Deed and Loan by the City was conditioned in part upon the recordation of a document setting forth certain restrictions upon the use and sale of the Property; and WHEREAS, Owner will use the proceeds of such Loan for the acquisition of the real property with the street address of 1111 A Avenue, National City, California, 91950 more particularly described in Exhibit A attached and incorporated by this reference ('Property"); and WHEREAS, as further consideration for the Loan and to further the interests of the City, the Owner has agreed to enter into and record this Agreement. The covenants in this Agreement are intended to run with the land and be binding on the Owner for the full term of this Agreement. NOW, THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS; 13 Attachment No. 1 Exhibit I: First -Time Homebuyer Assistance Program Manual The Owner shall receive HOME Investment Partnership funds for investment in real property owned by the Owner, as evidenced by legal title or a valid contract of sale. Acting in this capacity, the Owner will comply with all aspects of HOME regulations 24 CFR §92.504 including the following: A. DEFINITIONS The following terms have the meanings and content set forth in this Section A where used in this Agreement or attached exhibits. 1. "AREA MEDIAN INCOME" means the median income for the San Diego County Primary Metropolitan Statistical Area (PMSA), with adjustments for household size, as adjusted from time to time by the U.S. Dept. of Housing and Urban Development (HUD). 2. "CITY" is of the City of National City, California, a public body corporate and politic. 3. "DEED OF TRUST" means any deed of trust, assignment of rents, and security agreement placed on the Property or any part thereof as security for any Loan and other obligations with Owner as trustor and City as beneficiary, as well as any amendments to, modification of, and restatements of said deed (s) of trust. 4. "EFFECTIVE PERIOD" means the period commencing on the date of this agreement and ending on the repayment of the Loan from the City, including the repayment of any required Equity as defined in Section E of the Agreement. 5. "EIGHTY PERCENT OF AREA MEDIAN INCOME" means annual income, which does not exceed eighty percent (80%) of the Area Median Income. 6. "HUD" means the United States Department of Housing and Urban Development. 7. "HOME FUNDS/HOME INVESTMENT": funds received pursuant to the HOME Investment Partnership Program under the Department of Housing and Urban Development (HUD), codified at 42 U.S.C. Section 12701, et seq., 24 CFR Part 92, to provide funds for affordable housing. 8. "HOMEOWNER INVESTMENT": homeowner's down payment and any capital improvement investment made by the owner since purchase. 9. "HOUSE" means the residential dwelling unit that is located on the Property. 10. "LOAN" is any Loan of funds provided by the City to any Owner for the purchase of the Property. 11. "LOAN DOCUMENTS" are collectively the Deed of Trust, Note, Note Rider, this Regulatory Agreement and any loan agreement, deed of trust, or promissory note entered into between City and Owner with respect to any of the Property, as they may be amended, modified or restated from time to time, along with all exhibits and attachments to these documents. 12. "NOTE" means the promissory note and note rider executed by Owner in favor of City evidencing any part of a Loan, which is secured by a Deed of Trust, as well as any amendments to, modifications or, or restatements of said promissory note. The Note will be on file with the City. 13. "OWNER" or "OWNERS" is the Qualifying Household that is the purchaser of the Property. 14. "PROPERTY" means the real property located at:1111 A Avenue, National City, California, 91950 and described in the attached Exhibit A, which is hereby incorporated into this Agreement by this reference, and any buildings or improvements now or hereafter situated on said real property. 15. "QUALIFYING HOUSEHOLD" means a household whose income is Eighty Percent of Area Median Income, as determined periodically by HUD, with adjustments in accordance with 24 CFR 92.252, and who is otherwise eligible to purchase the Property. 14 # Months After Date of Agreement Buyer's Equity Share (Increases 5% per year) City Equity Share (Decreases 5% per year) 0-12 (50%) (50%) 13-24 (55%) (45%) 25-36 (60%) (40%) 37-48 (65%) (35%) 49-60 (70%) (30%) 61-72 (75%) (25%) 73-84 (80%) (20%) 85-96 (85%) (15%) 97-108 (90%) (10%) 109-120 (95%) (5%) Thereafter (100%) (0%) Attachment No. 1 Exhibit I: First -Time Homebuyer Assistance Program Manual 16. "QUALIFYING SALES PRICE" means a sales price that does not exceed 95 percent (95%) of the median purchase price for the area, as determined by the U.S. Department of Housing and Urban Development. B. TERM OF AGREEMENT The term of this Agreement shall remain in full force and effect during the Effective Period regardless of any expiration of the term of any Loan, any payment or prepayment of any Loan, any assignment of a Note, any reconveyance of a Deed of Trust, or any sale, assignment, transfer, or conveyance of the Property, unless terminated earlier by the City in writing or extended by the mutual consent of the parties. However, failure to record this Agreement by the City shall not relieve Owner of any of the obligations specified herein. The covenants in this Agreement will run with the land for the benefit of the City and its heirs, assigns and successors and be binding on Owner and Owner's heirs, assigns and successors for the full term of this Agreement. C. USE OF FUNDS The Loan will be used to acquire the Property by the Owner who is a member of a Qualifying Household. D. AFFORDABILITY 1. The House will qualify as affordable housing and will have: (a) an initial purchase price that is a Qualifying Sales Price; and (b) an estimated appraised value at acquisition that does not exceed Qualifying Sales Price. 2. The House must be the principal residence of the Owner at all times during the Effective Period. 3. The deferred Loan for the HOME -assisted House is $ 40,000.00. E. RECAPTURE OF HOME FUNDS Pursuant to 24 CFR 92.254(a) (ii), the City requires that HOME funds be recaptured if the housing does not continue to be the principal residence of the family. If there is a "transfer," the principal amount of the Note, together with a share of the "Equity" (if any), as hereafter defined, shall be immediately due and payable to the City. A "transfer" means (i) all or any part of the Property or any interest in the Property that is sold, conveyed or transferred; (ii) Owner is not a natural person and a beneficial interest in Owner is sold, conveyed or transferred; (iii) all or any part of the Property is refinanced, except as otherwise allowed by law; (iv) Owner does not occupy the Property as his, her, or their, primary residence; (v) the leasing of all or any part of the Property; (vi) any material breach of the Note, Deed of Trust or this Agreement; or (vii) the filing of bankruptcy by the Owner. The Equity in the Property shall be calculated and shared between the Owner and City on the following basis: If, for examp term of the Note secured by this Deed of Trust, Owner shall receive fifty percent (50%)�of the Equity in the 15 Attachment No. 1 Exhibit I: First -Time Homebuyer Assistance Program Manual Property and the City shall receive fifty percent (50%) of the Equity. "Equity" is defined as the dollar amount that constitutes the difference between the sales price of the Property (or in the event of a sale of the Property for an amount other than its fair market value or where there is no price established for the Property (i.e., rental or refinancing the Property, Borrower's failure to occupy the Property, material breach of the Note, Deed of Trust or this Agreement; or the filing of bankruptcy by the Borrower, the fair market value of the Property determined by an appraiser chosen by the Beneficiary in its sole discretion) and the sum of the following amounts: (a) principal on the First Note and the Deed of Trust, along with any interest and fees due thereon; and (b) principal on the Note and Deed of Trust, along with any interest and fees due thereon; and (c) all costs of sale, including costs of brokers' commissions, escrow fees, title costs and fees, recording costs, etc.; and (d) current year taxes, including all pro-rata real estate taxes calculated to the date of sale; and (e) borrower's down payment not including the Loan from the City to the Owner; and (f) all principal paid down on the First Note and Deed of Trust; and (g) costs of any improvements to the Property, provided such improvements were approved by the City prior to construction and provided that such improvements have been documented to the satisfaction of the City. The amount of the Owner's share in the Equity of the Property shall increase by five percent (5%) per year, measured on the anniversary of the date of the Deed of Trust is recorded against the Property. Correspondingly, the City's share in the equity of the Property shall decrease by five percent (5%) per annum. For the sake of example, if the Property is sold more than five (5) but less than six (6) years after the date of the Deed of Trust is recorded against the Property, the City would have a twenty five percent (25%) share in the Equity and the Owner would have a seventy five percent (75%) share in the Equity of the Property. In the event that no Equity exists at the time of transfer or sale, the balance of the Note (item E.1.b above) will be due and payable as provided herein. In the event that a negative Equity situation exists, i.e., the proceeds from the sale of the Property are less than the balance of the Note, all net proceeds from the transfer or sale shall be paid to the City, as beneficiary in full satisfaction of the Note. When the HOME recapture requirement is triggered by a sale (voluntary or involuntary) of the housing unit, and there are no net proceeds or the net proceeds are insufficient to repay the home investment due, the participating jurisdiction can only recapture the net proceeds, if any. The net proceeds are the sales price minus superior Loan repayment (other than HOME funds) and any closing costs. F. PROPERTY MAINTENANCE AND SECURITY During the Effective Period, Owner shall at his or her own expense maintain the Property in good condition, in good repair, and in decent, safe, sanitary and habitable living conditions for the benefit of that Owner's household. Owner shall maintain the Property in conformance with all applicable state, federal and local laws, ordinances, codes and regulations. In the event that Owner fails to maintain the Property in accordance with these standards and after at least thirty (30) business days prior notice to Owner, the City or the City's contractor or agent may, but shall be under no obligation to, enter upon the Property, make such repairs or replacements as are deemed necessary in the City's discretion, and provide for payment thereof. Any amount advanced by the City to make such repairs, together with interest thereon from the date of such advance at the rate of seven percent (7%) per annum (unless payment of such an interest rate would be contrary to applicable law, in which event such sums shall bear interest at the highest rate then allowable by applicable law), shall become an additional obligation of the Owner to the City and shall be secured by any Deed of Trust, if not previously reconveyed. 16 Attachment No. 1 Exhibit I: First -Time Homebuyer Assistance Program Manual G. REPAYMENTS HOME Funds that are loaned to the Owner are to be remitted (principal and interest, as warranted) to the City to be retained and used as program income to originate additional Loans to First -Time Homebuyers. H. PROPERTY REQUIREMENTS Compliance with the following requirements is required as follows: 1. Maximum per -unit subsidy amount. The amount of HOME funds that a participating jurisdiction may invest on a per -unit basis in affordable housing will not exceed the per -unit dollar limits established by HUD. 2. Property Standards. Housing that is assisted with HOME funds, at a minimum, must meet Section 8 Housing Quality Standards. 3. Property Cost Limits. The value of acquisition and development of the housing unit, located in the City of National City must not exceed 95 percent (95%) of the median price for the area, as determined by the U.S. Department of Housing and Urban Development. 4. Occupancy Requirements. The HOME Program requires that occupancy standards must be maintained for the Effective Period for each of the assisted Houses as follows: (a) The prospective purchaser must be low income; that is, the purchaser must have an annual (gross) income that does not exceed Eighty Percent (80%) of Area Median Income, which will be determined at either the time the household initially occupies the property or at the time the HOME funds are invested; whichever is later. (b) Each Owner must occupy the property as a principal residence. Only Loan default and subsequent foreclosure negates the principal residence limitation. 5. Ownership Interest. The purchaser must have fee simple title•upon sale of a HOME -assisted unit or cooperative ownership interest upon sale of a HOME -assisted unit. 6. Refinance. The City will subordinate to the following refinance situations only, subject to City approval and additional documentation is required: (a) FHA streamline refinance, with a reduction in total PITI and no cash out. (b) VA rate reduction refinance, with a reduction in total PITI and no cash out. (c) Conventional rate and term refinance, with a reduction in total PITI and no cash out. I. REVERSION OF ASSETS Owner must transfer to the City any HOME funds remaining in the Property after the time of expiration of the Effective Period when there is a change to title on the Property or any sale, rental, refinance, conveyance or transfer of Property. Any funds received as a result of this reversion of assets shall be used for additional HOME -eligible activities. J. DEFAULTS AND REMEDIES In the event of any breach or violation of any agreement or obligation under this Agreement, the City may proceed with any or all of the remedies as described in paragraph 18 of the Deed of Trust. K. NON -LIABILITY OF OFFICIALS, EMPLOYEES AND AGENTS No officer, official, director, employee, agent or representative of the City shall be personally liable to Owner for any obligation created under the terms of this Agreement except in the case of actual fraud or willful misconduct by such person. L. INDEMNITY 17 Attachment No. 1 Exhibit I: First -Time Homebuyer Assistance Program Manual Notwithstanding the insurance coverage required herein, Owner shall indemnify and hold City and its officers, officials, directors, employees, agents and authorized representatives (each, an "Indemnified Party," and collectively, "Indemnified Parties"), free and harmless against any losses, damages, liabilities, claims, demands, judgments, actions, court costs, and legal or other expenses (including attomey's fees) which any Indemnified Party may incur as a direct or indirect consequence of (1) Owner's failure to perform any obligations as and when required by this Agreement; (2) any failure of any of Owner's representations or warranties to be true and complete; or (3) any act or omission by Owner or any contractor, subcontractor, management agent, or supplier with respect the Property, except where such losses are caused by the sole negligence or willful misconduct of Indemnified Parties. Owner shall pay immediately upon the City's demand any amounts owing under this indemnity. The duty of the Owner to indemnify includes the duty to defend Indemnified Parties in any court action, administrative action, or other proceeding brought by any third party arising from the Property. Owner's duty to indemnify Indemnified Parties shall survive the term of this Agreement. M. SUBORDINATION This Agreement shall be subordinated in priority only to the liens and encumbrances approved in writing by the City in its sole and absolute discretion. N. GENERAL PROVISIONS 1. Governing Law. This Agreement shall be interpreted under and be governed by the laws of the State of California, except for those provisions relating to choice of law and those provisions preempted by federal law. 2. This Agreement Controls. In the event that any provisions of this Agreement and any Loan Documents conflict, the terms of this Agreement shall control. 3. Time. Time is of the essence in this Agreement. 4. Consents and Approvals. For those provisions of this agreement which are expressly subject to consent or approval of the City, said consent or approval shall not be unreasonably withheld. Any approval must be in writing and executed by an authorized representative of the City. 5. Notices, Demands and Communications. Formal notices, demands and communications between Owner and the City shall be sufficiently given and shall not be deemed given unless dispatched by mailing it first class mail or by certified mail, return receipt requested, to the principal offices of Owner and City as follows: Housing and Grants City of National City 1243 National City Boulevard National City, CA 91950-4397 New Owner: Borrower Address: 1111 A Ave National City, CA 91950 Any such written communications by mail shall be conclusively deemed to have been received by the addressee five days after the deposit thereof in the United States Mail, postage prepaid and properly addressed as noted above. 6. Severability. Every provision of this Agreement is intended to be severable. If any provision of this Agreement shall be held invalid, illegal, or unenforceable by a court of competent jurisdiction, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired. 7. Attorney's Fees. In the event of any litigation over the performance of this Agreement, the prevailing party shall be entitled to attorney's fees and costs incurred during the course of litigation. 18 Attachment No. 1 Exhibit I: First -Time Homebuyer Assistance Program Manual IN WITNESS HEREOF, the City and the Owner have executed this Agreement as of the date first hereinafter set forth. City of National City By: Owner: By: Leslie Deese, City Manager Buyer 19 Attachment No. 1 Exhibit I: First -Time Homebuyer Assistance Program Manual "Exhibit A" Legal Description (must be attached prior to recordation) The land referred to herein is situated in the State of CALIFORNIA, County of SAN DIEGO, and described as follows: 20 Attachment No. 1 Exhibit 1: First -Time Homebuyer Assistance Program Manual APPENDIX D DEED OF TRUST FREE RECORDING REQUESTED PURSUANT TO GOVERNMENT CODE SECTION 27383 WHEN RECORDED PLEASE MAIL TO: Office of the City Clerk City of National City 1243 National City Boulevard National City, CA 91950-4397 APN: XXX-XXX-XX (SPACE ABOVE FOR RECORDER'S USE ONLY) FTHB #XXXX HOMEOWNER'S REGULATORY AGREEMENT FOR HOME PROGRAM PARTICIPATION THIS REGULATORY AGREEMENT ("Regulatory Agreement" or "Agreement") is entered into as of this 18th day of January, 2011 between the City of National City ("City"), and a Qualifying Household, on behalf of itself and Borrower Name ("Owner"). PREFACE WHEREAS, the City of National City receives a formula HOME Investment Partnerships ("HOME") Program allocation from the Federal Department of Housing and Urban Development to carry out eligible activities in accordance with program requirements; and WHEREAS, the Owner is interested in participating in City 's HOME -funded First -Time Homebuyer Program, and will comply with all program regulations and requirements; and WHEREAS, concurrently with the recordation of this Regulatory Agreement the City is funding a loan ("Loan") secured by a deed of trust ("Deed of Trust") to aid Owner, who is a first-time homebuyer, in acquiring the Property described below. The Trust Deed and Loan by the City was conditioned in part upon the recordation of a document setting forth certain restrictions upon the use and sale of the Property; and WHEREAS, Owner will use the proceeds of such Loan for the acquisition of the real property with the street address of 1111 A Avenue, National City, California, 91950 more particularly described in Exhibit A attached and incorporated by this reference ("Property"); and WHEREAS, as further consideration for the Loan and to further the interests of the City, the Owner has agreed to enter into and record this Agreement. The covenants in this Agreement are intended to run with the land and be binding on the Owner for the full term of this Agreement. NOW, THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS; The Owner shall receive HOME Investment Partnership funds for investment in real property owned by the Owner, as evidenced by legal title or a valid contract of sale. Acting in this capacity, the Owner will comply with all aspects of HOME regulations 24 CFR §92.504 including the following: 21 Attachment No. 1 Exhibit I: First -Time Homebuyer Assistance Program Manual D. DEFINITIONS The following terms have the meanings and content set forth in this Section A where used in this Agreement or attached exhibits. 17. "AREA MEDIAN INCOME" means the median income for the San Diego County Primary Metropolitan Statistical Area (PMSA), with adjustments for household size, as adjusted from time to time by the U.S. Dept. of Housing and Urban Development (HUD). 18. "CITY" is of the City of National City, California, a public body corporate and politic. 19. "DEED OF TRUST" means any deed of trust, assignment of rents, and security agreement placed on the Property or any part thereof as security for any Loan and other obligations with Owner as trustor and City as beneficiary, as well as any amendments to, modification of, and restatements of said deed (s) of trust. 20. "EFFECTIVE PERIOD" means the period commencing on the date of this agreement and ending on the repayment of the Loan from the City, including the repayment of any required Equity as defined in Section E of the Agreement. 21. "EIGHTY PERCENT OF AREA MEDIAN INCOME" means annual income, which does not exceed eighty percent (80%) of the Area Median Income. 22. "HUD" means the United States Department of Housing and Urban Development. 23. "HOME FUNDS/HOME INVESTMENT": funds received pursuant to the HOME Investment Partnership Program under the Department of Housing and Urban Development (HUD), codified at 42 U.S.C. Section 12701, et seq., 24 CFR Part 92, to provide funds for affordable housing. 24. "HOMEOWNER INVESTMENT": homeowner's down payment and any capital improvement investment made by the owner since purchase. 25. "HOUSE" means the residential dwelling unit that is located on the Property. 26. "LOAN" is any Loan of funds provided by the City to any Owner for the purchase of the Property. 27. "LOAN DOCUMENTS" are collectively the Deed of Trust, Note, Note Rider, this Regulatory Agreement and any loan agreement, deed of trust, or promissory note entered into between City and Owner with respect to any of the Property, as they may be amended, modified or restated from time to time, along with all exhibits and attachments to these documents. 28. "NOTE" means the promissory note and note rider executed by Owner in favor of City evidencing any part of a Loan, which is secured by a Deed of Trust, as well as any amendments to, modifications or, or restatements of said promissory note. The Note will be on file with the City. 29. "OWNER" or "OWNERS" is the Qualifying Household that is the purchaser of the Property. 30. "PROPERTY" means the real property located at: 2825 J Street, National City , California, 91950 and described in the attached Exhibit A, which is hereby incorporated into this Agreement by this reference, and any buildings or improvements now or hereafter situated on said real property. 31. "QUALIFYING HOUSEHOLD" means a household whose income is Eighty Percent of Area Median Income, as determined periodically by HUD, with adjustments in accordance with 24 CFR 92.252, and who is otherwise eligible to purchase the Property. 32. "QUALIFYING SALES PRICE" means a sales price that does not exceed 95 percent (95%) of the median purchase price for the area, as determined by the U.S. Department of Housing and Urban Development. 22 # Months After Date of Agreement Buyer's Equity Share (Increases 5% per year) City Equity Share (Decreases 5% per year) 0-12 (50%) (50%) 13-24 (55%) (45%) 25-36 (60%) (40%) 37-48 (65%) (35%) 49-60 (70%) (30%) 61-72 (75%) (25%) 73-84 (80%) (20%) 85-96 (85%) (15%) 97-108 (90%) (10%) 109-120 (95%) (5%) Thereafter (100%) (0%) Attachment No. 1 Exhibit I: First -Time Homebuyer Assistance Program Manual E. TERM OF AGREEMENT The term of this Agreement shall remain in full force and effect during the Effective Period regardless of any expiration of the term of any Loan, any payment or prepayment of any Loan, any assignment of a Note, any reconveyance of a Deed of Trust, or any sale, assignment, transfer, or conveyance of the Property, unless terminated earlier by the City in writing or extended by the mutual consent of the parties. However, failure to record this Agreement by the City shall not relieve Owner of any of the obligations specified herein. The covenants in this Agreement will run with the land for the benefit of the City and its heirs, assigns and successors and be binding on Owner and Owner's heirs, assigns and successors for the full term of this Agreement. F. USE OF FUNDS The Loan will be used to acquire the Property by the Owner who is a member of a Qualifying Household. F. AFFORDABILITY 4. The House will qualify as affordable housing and will have: (a) an initial purchase price that is a Qualifying Sales Price; and (b) an estimated appraised value at acquisition that does not exceed Qualifying Sales Price. 5. The House must be the principal residence of the Owner at all times during the Effective Period. 6. The deferred Loan for the HOME -assisted House is $ 40,000.00. G. RECAPTURE OF HOME FUNDS Pursuant to 24 CFR 92.254(a) (ii), the City requires that HOME funds be recaptured if the housing does not continue to be the principal residence of the family. If there is a "transfer," the principal amount of the Note, together with a share of the "Equity" (if any), as hereafter defined, shall be immediately due and payable to the City. A "transfer" means (i) all or any part of the Property or any interest in the Property that is sold, conveyed or transferred; (ii) Owner is not a natural person and a beneficial interest in Owner is sold, conveyed or transferred; (iii) all or any part of the Property is refinanced, except as otherwise allowed by law; (iv) Owner does not occupy the Property as his, her, or their, primary residence; (v) the leasing of all or any part of the Property; (vi) any material breach of the Note, Deed of Trust or this Agreement; or (vii) the filing of bankruptcy by the Owner. The Equity in the Property shall be calculated and shared between the Owner and City on the following basis: If, for examp term of the Note secured by this Deed of Trust, Owner shall receive fiftypercent of hquit the Property and the City shall receive fiftypercent (50%)of the Equity. qity is (50%)defined the Equity in the ar amount that constitutes the difference between the sales price of the Property(orin thevent of aesale lof the Property for an amount other than its fair market value or where there is no price established for the 23 Attachment No. 1 Exhibit I: First -Time Homebuyer Assistance Program Manual Property (i.e., rental or refinancing the Property, Borrower's failure to occupy the Property, material breach of the Note, Deed of Trust or this Agreement; or the filing of bankruptcy by the Borrower, the fair market value of the Property determined by an appraiser chosen by the Beneficiary in its sole discretion) and the sum of the following amounts: (h) principal on the First Note and the Deed of Trust, along with any interest and fees due thereon; and principal on the Note and Deed of Trust, along with any interest and fees due thereon; and (j) all costs of sale, including costs of brokers' commissions, escrow fees, title costs and fees, recording costs, etc.; and (k) current year taxes, including all pro-rata real estate taxes calculated to the date of sale; and (I) borrower's down payment not including the Loan from the City to the Owner; and (m) all principal paid down on the First Note and Deed of Trust; and (n) costs of any improvements to the Property, provided such improvements were approved by the City prior to construction and provided that such improvements have been documented to the satisfaction of the City. The amount of the Owner's share in the Equity of the Property shall increase by five percent (5%) per year, measured on the anniversary of the date of the Deed of Trust is recorded against the Property. Correspondingly, the City's share in the equity of the Property shall decrease by five percent (5%) per annum. For the sake of example, if the Property is sold more than five (5) but less than six (6) years after the date of the Deed of Trust is recorded against the Property, the City would have a twenty five percent (25%) share in the Equity and the Owner would have a seventy five percent (75%) share in the Equity of the Property. In the event that no Equity exists at the time of transfer or sale, the balance of the Note (item E.1.b above) will be due and payable as provided herein. In the event that a negative Equity situation exists, i.e., the proceeds from the sale of the Property are less than the balance of the Note, all net proceeds from the transfer or sale shall be paid to the City, as beneficiary in full satisfaction of the Note. When the HOME recapture requirement is triggered by a sale (voluntary or involuntary) of the housing unit, and there are no net proceeds or the net proceeds are insufficient to repay the home investment due, the participating jurisdiction can only recapture the net proceeds, if any. The net proceeds are the sales price minus superior Loan repayment (other than HOME funds) and any closing costs. F. PROPERTY MAINTENANCE AND SECURITY During the Effective Period, Owner shall at his or her own expense maintain the Property in good condition, in good repair, and in decent, safe, sanitary and habitable living conditions for the benefit of that Owner's household. Owner shall maintain the Property in conformance with all applicable state, federal and local laws, ordinances, codes and regulations. In the event that Owner fails to maintain the Property in accordance with these standards and after at least thirty (30) business days prior notice to Owner, the City or the City's contractor or agent may, but shall be under no obligation to, enter upon the Property, make such repairs or replacements as are deemed necessary in the City's discretion, and provide for payment thereof. Any amount advanced by the City to make such repairs, together with interest thereon from the date of such advance at the rate of seven percent (7%) per annum (unless payment of such an interest rate would be contrary to applicable law, in which event such sums shall bear interest at the highest rate then allowable by applicable law), shall become an additional obligation of the Owner to the City and shall be secured by any Deed of Trust, if not previously reconveyed. (i) 24 Attachment No. 1 Exhibit I: First -Time Homebuyer Assistance Program Manual G. REPAYMENTS HOME Funds that are loaned to the Owner are to be remitted (principal and interest, as warranted) to the City to be retained and used as program income to originate additional Loans to First -Time Homebuyers. H. PROPERTY REQUIREMENTS Compliance with the following requirements is required as follows: 1. Maximum per -unit subsidy amount. The amount of HOME funds that a participating jurisdiction may invest on a per -unit basis in affordable housing will not exceed the per -unit dollar limits established by HUD. 2. Property Standards. Housing that is assisted with HOME funds, at a minimum, must meet Section 8 Housing Quality Standards. 3. Property Cost Limits. The value of acquisition and development of the housing unit, located in the City of National City must not exceed 95 percent (95%) of the median price for the area, as determined by the U.S. Department of Housing and Urban Development. 4. Occupancy Requirements. The HOME Program requires that occupancy standards must be maintained for the Effective Period for each of the assisted Houses as follows: (c) The prospective purchaser must be low income; that is, the purchaser must have an annual (gross) income that does not exceed Eighty Percent (80%) of Area Median Income, which will be determined at either the time the household initially occupies the property or at the time the HOME funds are invested; whichever is later. (d) Each Owner must occupy the property as a principal residence. Only Loan default and subsequent foreclosure negates the principal residence limitation. 5. Ownership Interest. The purchaser must have fee simple title upon sale of a HOME -assisted unit or cooperative ownership interest upon sale of a HOME -assisted unit. 6. Refinance. The City will subordinate to the following refinance situations only, subject to City approval and additional documentation is required: (d) FHA streamline refinance, with a reduction in total PITI and no cash out. (e) VA rate reduction refinance, with a reduction in total PITI and no cash out. (f)Conventional rate and term refinance, with a reduction in total PITI and no cash out. I. REVERSION OF ASSETS Owner must transfer to the City any HOME funds remaining in the Property after the time of expiration of the Effective Period when there is a change to title on the Property or any sale, rental, refinance, conveyance or transfer of Property. Any funds received as a result of this reversion of assets shall be used for additional HOME -eligible activities. J. DEFAULTS AND REMEDIES In the event of any breach or violation of any agreement or obligation under this Agreement, the City may proceed with any or all of the remedies as described in paragraph 18 of the Deed of Trust. K. NON -LIABILITY OF OFFICIALS, EMPLOYEES AND AGENTS No officer, official, director, employee, agent or representative of the City shall be personally liable to Owner for any obligation created under the terms of this Agreement except in the case of actual fraud or willful misconduct by such person. L. INDEMNITY Notwithstanding the insurance coverage required herein, Owner shall indemnify and hold City and its officers, officials, directors, employees, agents and authorized representatives (each, an "Indemnified Party," and collectively, "Indemnified Parties"), free and harmless against any losses, damages, liabilities, claims, 25 Attachment No. 1 Exhibit I: First -Time Homebuyer Assistance Program Manual demands, judgments, actions, court costs, and legal or other expenses (including attomey's fees) which any Indemnified Party may incur as a direct or indirect consequence of (1) Owner's failure to perform any obligations as and when required by this Agreement; (2) any failure of any of Owner's representations or warranties to be true and complete; or (3) any act or omission by Owner or any contractor, subcontractor, management agent, or supplier with respect the Property, except where such losses are caused by the sole negligence or willful misconduct of Indemnified Parties. Owner shall pay immediately upon the City's demand any amounts owing under this indemnity. The duty of the Owner to indemnify includes the duty to defend Indemnified Parties in any court action, administrative action, or other proceeding brought by any third party arising from the Property. Owner's duty to indemnify Indemnified Parties shall survive the term of this Agreement. M. SUBORDINATION This Agreement shall be subordinated in priority only to the liens and encumbrances approved in writing by the City in its sole and absolute discretion. N. GENERAL PROVISIONS 8. Governing Law. This Agreement shall be interpreted under and be governed by the laws of the State of California, except for those provisions relating to choice of law and those provisions preempted by federal law. 9. This Agreement Controls. In the event that any provisions of this Agreement and any Loan Documents conflict, the terms of this Agreement shall control. 10. Time. Time is of the essence in this Agreement. 11. Consents and Approvals. For those provisions of this agreement which are expressly subject to consent or approval of the City, said consent or approval shall not be unreasonably withheld. Any approval must be in writing and executed by an authorized representative of the City. 12. Notices, Demands and Communications. Formal notices, demands and communications between Owner and the City shall be sufficiently given and shall not be deemed given unless dispatched by mailing it first class mail or by certified mail, return receipt requested, to the principal offices of Owner and City as follows: City of National City Housing and Grants 1243 National City Boulevard National City, CA 91950-4397 New Owner: Borrower Name Address: 1111 A Avenue National City, CA 91950 Any such written communications by mail shall be conclusively deemed to have been received by the addressee five days after the deposit thereof in the United States Mail, postage prepaid and properly addressed as noted above. 13. Severability. Every provision of this Agreement is intended to be severable. If any provision of this Agreement shall be held invalid, illegal, or unenforceable by a court of competent jurisdiction, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired. 14. Attorney's Fees. In the event of any litigation over the performance of this Agreement, the prevailing party shall be entitled to attomey's fees and costs incurred during the course of litigation. IN WITNESS HEREOF, the City and the Owner have executed this Agreement as of the date first hereinafter set forth. City of National City 26 By: Attachment No. 1 Exhibit I: First -Time Homebuyer Assistance Program Manual Owner: By: Leslie Deese, City Manager Borrower XXXXX 27 Attachment No. 1 Exhibit I: First -Time Homebuyer Assistance Program Manual "Exhibit A" Legal Description (must be attached prior to recordation) The land referred to herein is situated in the State of CALIFORNIA, County of SAN DIEGO, and described as follows: 28 Attachment No. 1 Exhibit I: First -Time Hornebuyer Assistance Program Manual APPENDIX E PROMISSORY NOTE APN: XXX-XXX-XX-XX FTHB # XXXX-XXXX NOTICE: THIS NOTE MAY REQUIRE PAYMENT OF PRINCIPAL AND INTEREST UPON THE SALE OR TRANSFER OF THE PROPERTY OR UPON A PREPAYMENT. FURTHER, THIS NOTE IS A SHARED APPRECIATION NOTE AS DEFINED IN SECTION 1917, ET SEQ. OF THE CALIFORNIA CIVIL CODE. $ 00,000.00 Amount PROMISSORY NOTE SECURED BY DEED OF TRUST ,2009 Date 000 XXXX, National City, California 91950 (Property Address) 1. Borrower's Promise to Pay. For value received, the undersigned, XXXXX XXXXX ("Borrower"), promises to pay to the City of National City ("City"), or order, the sum of XXXXX Thousand Dollars and 00/Cents ($00,000.00) with interest accruing thereon as hereinafter provided, and payable as set forth below. It is understood that the City may transfer this Note. The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note will be called the "Note Holder". 2. No Interest. This Note will bear no interest unless the Borrower defaults under the terms of this Note, the Deed of Trust securing it and/or the Homeowner's Regulatory Agreement for Home Program Participation ("Home Agreement") affecting the Property. In the event of default, interest from the Date of this Note shall be calculated at the greater of the following amounts: a) The rate equal to the interest rate of the senior trust deed or, in the event of no senior trust deed; or b) ten percent (10%) per annum. 3. Payments and Term. The term of this Note extends until the earlier of default by Borrower under the terms of this Note, the Deed of Trust or the Home Agreement, or the day Borrower sells, rents, refinances, transfers or changes the title of the property ("Property") described in the Deed of Trust. Sale, rental, refinance, conveyance, transfer or change in title of the property prior to the tenth (10th) anniversary date of the Deed of Trust will trigger the shared equity in addition to the principal, as described in the accompanying Deed of Trust. A "transfer" means (i) all or any part of the Property or any interest in the Property is sold, conveyed or transferred; (ii) Borrower is not a natural person and a beneficial interest in Borrower is sold, conveyed or transferred; (iii) all or any part of the Property is refinanced, except as otherwise allowed by law; (iv) Borrower does not occupy the Property as his, her, or their, primary residence; (v) the leasing of all or any part of the Property; (vi) any material breach of this Note (including, without limitation, the Note Rider), the Home Agreement or the Deed of Trust; or (vii) the filing of bankruptcy by the Borrower. No delay or omission on the part of the City shall operate as a waiver of such right of repayment or of any other right under this Note. Upon a 29 Attachment No. 1 Exhibit I: First -Time Homebuyer Assistance Program Manual Transfer, the principal amount of this Note, together with a share of the Equity (if any) as set forth in the Note Rider attached hereto, shall be immediately due and payable to the City. The City shall not exercise this right of acceleration if prohibited by federal law as of the date of the Deed of Trust or if the City has executed a separate written waiver of this option. The following shall not constitute a Transfer: (a) A transfer of the Property from a deceased Borrower to the surviving spouse of the Borrower if the surviving spouse is also named as a Borrower; (b) A transfer of the Property by a Borrower to his/her spouse pursuant to which the spouse becomes a co-owner of the Property; (c) A transfer of the Property resulting from a decree of dissolution of the marriage or legal separation or from a property settlement agreement incidental to such a decree which requires the Borrower to continue to make payments on the Note and by which a spouse who is already a Borrower becomes the sole owner of the Property; (d) A transfer of the Property to a Borrower to an inter-vivos trust in which the Borrower is the sole beneficiary; (e) A transfer by means of encumbering the Property with a lien that is a junior lien to the lien securing the loan to Borrower evidenced by the Deed of Trust. All payments made under this Note shall be paid in lawful money of the United States to the City of National City at 1243 National City Boulevard, National City, CA 91950. 4. Prepayment. Borrower has the right to prepay the principal without incurring any penalty, apart from any interest that may be due under default provisions above. In the event that Borrower chooses to prepay the Note, Borrower must notify Note Holder in writing. All payments received on account of this Note shall be first applied to accrued interest, if any, and the remainder shall be applied to the reduction of principal. PAYMENT OF THE NOTE SHALL NOT AFFECT THE OBLIGATION TO SHARE EQUITY WITH THE City AS PROVIDED IN THE NOTE RIDER ATTACHED HERETO. 5. Relinquishment of Equity. Provided that Borrower is not in default under the terms of this Note, the Deed of Trust or the Home Agreement and Borrower has continually occupied the Property as Borrower's principal residence, the City's interest in the equity of the property shall be relinquished by City ten (10) years from the date of the execution of the Note. Nothing contained in this paragraph 5 shall be construed as a promise by City to forgive or relinquish the right to seek repayment of the principal of the Note. 6. Default Under Deed of Trust or Home Agreement. Notwithstanding any other provisions of the Note, if default occurs in any of the covenants or agreements contained in the Deed of Trust or the Home Agreement, the principal amount of this Note, together with a share of the Equity (if any) or default interest as set forth in Section 2, above (whichever is greater), shall be immediately become due and payable in full at the option of City. 7. Attorneys' Fees. Should suit be commenced to collect on this Note, or any portion thereof, such sum as the court may deem reasonable shall be added hereto as attorneys' fees. 8. Time. Time is of the essence herein. 9. Amendments. This Note may not be modified or amended except by an instrument in writing expressing such intention and signed by an authorized representative of City and Borrower. 30 Attachment No. 1 Exhibit I: First -Time Homebuyer Assistance Program Manual 10. Severability. If any term or provision hereof is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the validity and binding effect of the remainder of this Note upon the parties. 11. Borrower's Waivers. Borrower waives any rights to require City to perform certain acts. Those acts are: (a) To demand payment of amounts due (known as "presentment"). (b) To give notice that amounts due have not been paid (known as "notice of dishonor"). (c) To obtain an official certification of non-payment (known as "protest"). 12. Giving of Notices. Any notice that must be given to Borrower under this Note will be given by delivering it or by mailing it first class mail or by certified mail, return receipt requested, addressed to Borrower at the address set forth above. A notice that must be given to City under this Note will be given by mailing it certified mail, return receipt request, to City at the address stated in Section 3 above. Any party may change its address by a notice given to the other party in the manner set forth in this Section. 13. Joint and Several Responsibility. If more than one person executes this Note, each is fully and personally obligated to pay the full amount owed and to keep all promises in this Note. NOTICE TO BORROWER Date: Do not sign this Note if it contains blank spaces. All spaces should be completed before you sign. Borrower XXXXX Borrower XXXXX 31 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT IEETING DATE: October 30, 2012 AGENDA ITEM NO. 10 ITEM TITLE: Resolution of the City Council of the City of National City Authorizing Staff to waive the formal bid process and authorize the Mayor to sign a 5 year Agreement between the City of National City and San Diego Sports Medicine and Family Health Center for Wellness Program Services. (Fire) PREPARED BY: Walter Amedee DEPARTMENT: Fi PHONE: 619-336-4556 APPROVED'; BY: EXPLANATION: Over the last six years, the National City Fire Department (NCFD) has contracted with the San Diego Sports Medicine and Family Health Center (SDSMFHC) for wellness program services. An extension to the original Agreement was signed on March 16, 2010, but has recently expired. As a result, the NCFD would now like to sign a new 5 year Agreement. As allowed by Purchasing Ordinance 2.60.110 - Formal bidding procedure —Generally Based: Formal competitive bidding may be waived by the city council, or the city manager within the limits of contracting authority, where it has been determined that: (1) competitive bidding is or would be impractical or impossible. In the last three years, formal bid process attempts by the City of San Diego did not yield any other qualified service providers, because SDSMFHC is uniquely qualified. There are no other providers of this type of service, and there is no adequate other substitute for what the NCFD needs; and because there are no other sources of this service, there would be no competitive advantage to bidding. Staff believes it is in the City's best interest to take advantage of this opportunity and would ask the City Council to waive the formal bid process. At the Council meeting on June 19, 2012, the City Council budgeted $45,000 for the NCFD to continue to participate in the Wellness Program. In order to participate in the Wellness Program, the NCFD needs to have an Agreement in place in order to participate. Staff recommends the City Council waive the formal bid process and authorize the Mayor to sign a 5 year Agreement with the SDSMFHC. FINANCIAL STATEMENT: APPROVED: Finance ACCOUNT NO. 130-412-125-299-0000 APPROVED: MIS Minor impact; the City Council budgeted $45,000 for the NCFD to continue to participate in the SDSMFHC Wellness Program. ENVIRONMENTAL REVIEW: ORDINANCE: INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Staff 'recommends the City Council waive the formal bid process and authorize the Mayor to sign a 5 year Agreement with the San Diego Sports Medicine and Family Health Center. BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: 1. San Diego Sports Medicine and Family Health Center Agreement 2. Resolution RESOLUTION NO. 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY WAIVING THE FORMAL BID PROCESS AND AUTHORIZING THE MAYOR TO EXECUTE A FIVE-YEAR AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND SAN DIEGO SPORTS MEDICINE AND FAMILY HEALTH CENTER FOR WELLNESS PROGRAM SERVICES TO THE NATIONAL CITY FIRE DEPARTMENT WHEREAS, on March 16, 2010, the City Council adopted Resolution No. 2010- 38, approving an Agreement with San Diego Sports Medicine and Family Health Center, making San Diego Sports Medicine and Family Health Center the health provider agency of the National City Fire Department's Wellness Program; and WHEREAS, on April 5, 2011, the City Council adopted Resolution 2011-77, approving the First Amendment to the Agreement to extend the original 2010 Agreement for a term of one year through April 15, 2012; and WHEREAS, with the expiration of the 2010 Agreement, NCFD desires to enter into an agreement for wellness program services; and WHEREAS, in the last three years, formal bid process attempts by another neighboring city (to wit: the City of San Diego) did not yield any other qualified service providers because San Diego Sports Medicine and Family Health Center is uniquely qualified; and WHEREAS, because there are no other known providers of this service and there is no adequate substitute, no further purpose would be served, nor would there be a competitive advantage, to bidding. As authorized by National City Municipal Code section 2.60.220(B), it is requested that the City Council declare that special circumstances exist, and that it is in the City's best interest to enter into an Agreement with San Diego Sports Medicine and Family Health Center for wellness program services. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby waives the formal bid process and authorizes the Mayor to execute a Five - Year Agreement between the City of National City and San Diego Sports Medicine and Family Health Center for Wellness Program for wellness program services. Said Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 30th day of October, 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 SAN DIEGO SPORTS MEDICINE AND FAMILY HEALTH CENTER FOR WELLNESS PROGRAM SERVICES THIS AGREEMENT is made, entered into, and effective as of the latest date set forth on the signature page hereto, by and between the City of National City on behalf of the National City Fire Department (NCFD), with its principal place of business located at 1243 National City Boulevard, National City, CA, 91950 and San Diego Sports Medicine & Family Health Center (SDSMFHC), a Medical Corporation, with its principal place of business located at 6699 Alvarado Road, Suite 101, San Diego, CA 92120. RECITALS WHEREAS, the NCFD will participate in the San Diego Firefighters Regional Wellness Program (SDFFRWP) which is in compliance with the International Association of Fire Fighters (IAFF) and the International Association of Fire Chiefs (IAFC) Health and Wellness Initiative guidelines; and WHEREAS, the NCFD has determined SDSMFHC has the expertise, experience, qualifications and personnel necessary to provide Wellness Program services required by the NCFD and described in the IAFF/IAFC Fire Service Joint Labor Management Wellness -Fitness Initiative (IAFF, 1999, ISBN# 0-942920-36-8) (http://www.iaff.org/safe/wellness2.html). The program described in IAFF/IAFC Fire Service Joint Labor Management Wellness -Fitness Initiative (IAFF, 1999, ISBN# 0-942920-36-8) shall henceforth be described as the "Wellness Program" or "NCFD's Wellness Program"; and WHEREAS, the City of National City and SDSMFHC desires to enter into a contractual relationship which makes SDSMFHC the health provider agency of the NCFD's Wellness Program; NOW THEREFORE, in consideration of the mutual covenants and conditions set forth herein and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: Section 1. Compensation. 1.1 The City of National City and SDSMFHC agree to pay and bill respectively in accordance with the rates, fees and restrictions set forth in Item 1.2, 4.1,4.2.9, 4.3, and 4.4 of this agreement. 1.2. SDSMFHC shall provide an invoice for services rendered during a calendar month to the NCFD by the 10th day of the next month. The City of National City will pay the invoice within 30 days after receiving the invoice. Invoices are subject to approval by the City prior to payment. Services will be itemized, and presented in the following categories: 2012 Agreement 1 City of National City and Wellness Program Services SD Sports Medicine & Family Health Center 1.2.1. Clinical services 1.2.2. Consultation services 1.2.3. Lecture and workshop services Section 2. Term. 2.1. Term. The term of this Agreement shall be for a period of five (5) years from the effective date hereof. 2.2. Options to Renew. The City of National City shall have the option to renew this agreement for three (3) one (1) year options, each for a period of one (1) year after the expiration of the original term, or the preceding one-year option term. Each option term shall be renewed on the same terms as this Agreement, except that the rates in section 4.1, 4.29, 4.3 and 4.4 may be increased or decreased by mutual written agreement of the parties. Any rate changes shall be made at the time of exercise of the option, to take effect at the beginning of the new one year period unless otherwise agreed to in writing by the parties. 2.3. Exercise of Option to Renew. The City of National City shall give notice in writing of its intention to renew at least sixty (60) days prior to the expiration of the Agreement, or of the prior option term. If notice is provided by the NCFD to SDSMFHC, such notice shall be sent by mail addressed to: Katie Rusk, Project Manager San Diego Sports Medicine & Family Health Center 6699 Alvarado Road, Suite 101 San Diego, CA 92120 Section 3. NCFD Obligations. 3.1 Administration. The Chief of the NCFD or designated representative shall administer this Agreement on behalf of the NCFD and represent the NCFD in all matters pertaining to the Agreement. Section 4. SDSMFHC Obligations. 4.1. Wellness Program Services. SDSMFHC agrees to provide services rendered at the location identified in Item 4.2 below, to NCFD employees participating in the Wellness Program (hereinafter "NCFD Employees"), at the fees for service identified in Item 4.3. SDSMFHC agrees to perform and/or coordinate all services identified in the Fire Service Joint Management Wellness -Fitness Initiative. The five components are Medical, Fitness, Injury Prevention and Rehabilitation, Behavioral Health and Data Collection. SDSMFHC agrees to provide the following services and/or collection of information in addition to those services set forth in Appendix A: a. Prior to Medical Evaluation. SDSMFHC agrees to provide all the necessary forms, reports, and documentation for the requested information listed below: 2012 Agreement 2 Wellness Program Services City of National City and SD Sports Medicine & Family Health Center • Introductory letter describing the Firefighter Initiative. • Health history/Lifestyle questionnaire. • Health risk assessment. • Exercise risk assessment. • Participant information. • HIPAA information and acknowledgment. • Nutrition and diet analysis. • Arbitration agreement. • Explanation of testing procedures. • Instructions for participation. • Laboratory requisition (participant will have labs drawn at least one week prior to evaluation) . • Respiratory fit clearance form. • Directions to facilities. SDSMFHC will coordinate and provide staff to have blood drawn for lab analysis at designated fire stations at least one week prior to the participants' Wellness evaluation. The cost of this mobile service is included in the package price for the Medical Fitness Evaluations listed in section 4.3. b. Medical Evaluation. Each participant will receive the following evaluations and follow up at the SDFFRWP Wellness Center: • Vitals: height, weight, blood pressure, pulse, temperature and respirations. • Complete hands-on physical examination by a Physician or Physicians Assistant (PA). • Blood profile including a CBC, chemistry panel and lipid panel. • TSH screening (cardiovascular risk screening) is optional and at an additional cost in accordance with the fee schedule. • Chest x-ray. • Pulmonary Function Test, including lung volume and flow rate. • 12 lead EKG. • Lifestyle Questionnaire and Nutritional Risk Assessment. • Hearing and Vision screening. • Cancer screening, as appropriate, at an additional cost, including PSA, Hemocult, Pap Smear, Mammogram, CA-125. • DOT/DMV physical form. c. Fitness Evaluation: • Maximal/Sub-Maximal (age determined) Exercise Test monitored by a 12 lead EKG. • Body Composition. • Abdominal Endurance Crunch Test. • Push-up Evaluation of Upper Body Strength and Endurance. 2012 Agreement 3 City of National City and Wellness Program Services SD Sports Medicine & Family Health Center • Grip Strength utilizing a hand dynamometer. • Leg Strength using the Jackson Strength Evaluation System. • Arm Strength using the Jackson Strength Evaluation System. • Functional Movement Screening. • Flexibility evaluation. • In addition to the requested evaluations, assessment of low back muscular endurance at initial fitness evaluation using the Biering- Sorensen. • Test will be performed at no additional cost. d. Schedule for Medical and Fitness Evaluations. For each individual participating in the program: • 45-60 minutes with Physician: physical exam, review labs and other test results. • 45-60 minutes with Exercise Physiologist: treadmill test, exercise consult, nutrition consult. • 45 minutes with Strength and Conditioning Personnel: strength, flexibility, body composition. • 45 minutes with Medical Assistant: vitals, vision, blood draw, hearing, pulmonary function, chest x-ray, review history and immunizations. e. Follow-up Consultation with Physician at time of initial appointment. • Follow-up on findings from annual examinations will be reviewed by the physician at time of evaluation. • Abnormal findings on the annual physical will be addressed with specific recommendations to control or remedy the abnormality, and with recommendations for follow up or referral. • Referrals will be made as appropriate for non -service connected issues, using the participants Primary Care Provider. f. Personalized feedback from Exercise Physiologist and Athletic Trainer/Peer Fitness Trainer: • Individual's level of fitness. • Level of improvement since past assessments. • Realistic evaluation of the individual's physical capacity to safely perform assigned jobs. • Suggested exercise program. • Comprehensive wellness/fitness program recommendations. • Firefighter Physical Performance Standard Score. • Physical Fitness Age Assessment. 2012 Agreement 4 Wellness Program Services City of National City and SD Sports Medicine & Family Health Center g. Personalized written Health and Wellness Report. Each firefighter will receive an individual packet of the medical and fitness evaluation that outlines his/her results. The report will outline recommendations for each individual to improve and maintain fitness, as well as recommend treatment or follow up for any medical condition. Educational material regarding various health topics will be included in the packet. h. Reporting and Recommendations. SDSMFHC agrees to incorporate the current criteria used in Respiratory Fitness Clearance and Department of Motor Vehicles medical evaluations with regard to findings and risks. It is not the intention of the Wellness Program to re -define the existing fitness -for -duty criteria. Strict confidentiality and maintenance of records will be adhered to throughout any reporting and/or referral procedures. i. Data Collection. SDSMFHC will provide scientific and technical support related to data collection and analysis. Data shall be collected an stored on the electronic database designed by SDSMFHC specifically for the Services to be performed under this agreement. Data Collection services shall include the following: 1) Storage of past, current and future data on a secure server. Data shall be backed up weekly and kept at a remote location. 2) Analysis of data for errors, omissions and outliers. Statistical analysis shall be performed to summarize the demographic medical fitness outcomes on each individual as well as the group as a whole. 3) Development of an annual report which shall be presented to Senior NCFD Staff which identifies health trends and concerns. 4) Development of new strategies for data collection and reporting. 5) Evaluating and analyzing data for individual and group disease management. 6) Integrating data with other fire departments in a confidential manner in compliance with all federal and state law. j. Education Program. SDSMFHC will provide educational hours over the year for Wellness participants. The Education component will be multifaceted in its delivery. The intent of the Education Component is to address those areas of interest and concern for the health and fitness of the National City Firefighters. The Education Component shall include the following: 1) Nutrition station as part of the annual physical; 2) Biannual newsletter; 3) Stations visits which will include, but not be limited to educational sessions on exercise, fitness, nutrition and health related topics. 4) Individual counseling for high risk individuals and those with specific nutrition and exercise needs; 5) Development of educational material for Personal Profile and group education projects (i.e. Fiber challenge, Big Burn Challenge, Body Blast workout, Health Fire Fighter recipes; 2012 Agreement 5 City of National City and Wellness Program Services SD Sports Medicine & Family Health Center 6) Providing resources and Consultant staff on health and fitness related issues (i.e. return to work issues, training issues, Cross Fit, medical advice regarding injury treatment and more) 7) Providing a Registered Dietician to help those individuals with high risk nutritional/health related problems. 8) Providing an Athletic Trainer to help those individuals with specific injury related problems identified by Physician. The Education Program consists of initial education, as well as recurrent education. Fees for the initial portion of the Educational Program are included in the set fee for Medical and Fitness Exams for Wellness Participants. k. Hazardous Materials Technician Physical. Some of the firefighters in the NCFD may be designated as Hazardous Materials Technicians. Their special requirements for a physical will include the following: ]) All of the components and procedures of the Respiratory Fit 2) Blood testing consisting of CBC, chemistry panel and heavy 3) (arsenic, mercury and lead) and archiving of the results on entrance into the Hazardous Materials Program. 4) Cholinesterase on a yearly basis. 5) Any additional blood testing required for specific or known Evaluation metals exposure 6) EKG 7) Treadmill 1. Immunizations. SDFFRWP agrees to offer NCFD, at NCFD discretion, employees on -duty influenza immunization and PPD (Tuberculosis) testing at strategic locations throughout the NCFD, as identified by the NCFD and agreed upon with the Wellness Officer, and charged according to the fee schedule in 4.3. These services are mobilized and can accommodate 30 participants at one time. Each participant will complete a consent form describing risk and benefits of vaccines and PPD placement. Each participant will receive the immunization and/or PPD. A licensed individual will be present to administer or supervise administration of the immunization or PPD. The PPD will be read within 48 to 72 hours by a certified individual. Scheduling will be determined by the NCFD and agreed upon with the Wellness Officer. m. Other Immunizations. All immunization records and history of immunizations (that Participants provide) will be kept in patients chart. Review of immunizations will be made at the time of Wellness physical or respiratory fit exam. Necessary immunizations including Hepatitis B will be given at that time and charged according to the fee schedule in 4.3. Additional immunizations as part of a series will be administered on an individual basis at the Wellness Center, scheduled by the Wellness Officer. All immunizations will be preauthorized by the City of National City. 2012 Agreement 6 Wellness Program Services City of National City and SD Sports Medicine & Family Health Center 4.2. SDFFRWP Wellness Program Facilities. 4.2.1. Wellness Program Locations. SDFFRWP agrees to provide Wellness Program services to NCFD Employees at the following location: SAN DIEGO FIREFIGHTERS REGIONAL WELLNESS CENTER (Hosted by San Diego Sports Medicine and Family Health Center) 6699 Alvarado Road, Suite 101, San Diego, CA 92120 4.2.2. Staffing and Hours of Operation. SDSMFHC shall maintain a medical facility staffed by licensed physicians and technicians during business hours. In agreement with the City of National City, SDSMFHC shall commit to the days and hours of operation to comply with the goals of the Wellness Program and the Wellness Initiative. 4.2.3. Priority Appointments. SDSMFHC shall maintain a licensed physician or physician assistant available to examine and treat NCFD Employees that have arrived for their appointment. 4.2.4. Medical Specialists. SDSMFHC shall have "on call" medical specialists to examine patients either at the facilities listed above or at the specialist's office, for medical emergencies and follow-up care. 4.2.5. Medical Consultants. SDSMFHC shall maintain a list of medical specialty consultants for referral to NCFD Employees. 4.2.6. Other Medical Services. SDSMFHC shall provide radiological facilities on -site at the Wellness Center to facilitate comprehensive examinations. 4.2.7. Weekend and Evenings. The Wellness Center will not operate on weekends or evenings. 4.2.8. Cancelled/Delayed Appointments. The NCFD is engaged in "All -Risk" emergency services, 24-hours a day. Due to unforeseen emergencies (fires, major incidents, disasters, etc.), it may be possible that an emergency crew and/or support personnel are otherwise engaged in emergency operations and unable to keep their appointment at the Wellness Center. All efforts will be made to provide personnel that are ready for their Wellness Center evaluation. The days of operation and the number of personnel to receive the services will be determined based on an annual schedule and the need of NCFD and will be in consultation with the Wellness Officer. 4.2.9. Vacancy Fee. Despite the best efforts of the NCFD and/or appointed personnel assisting in scheduling Wellness activities, there may be occurrence that scheduled NCFD employees are NOT present for evaluation. The City of National City will pay a vacancy fee of $100 for any occurrence after two occurrences in any calendar month applicable only to days of operation. 4.3. Pricing of Services. The following prices have been established at the initiation of this agreement, and as referred in items 4.1, 4.3. The fees for all services excluding labs and 2012 Agreement 7 City of National City and Wellness Program Services SD Sports Medicine & Family Health Center vaccinations shall be increased at a rate of 5% of the cost from the prior fiscal year. Influenza Vaccinations, PPD testing and Labs will be priced based on the current market value. CLINICAL SERVICES COST Medical Fitness Evaluation Pre -Employment Physical -Public Safety** Administration $1209.00 per participant $435.00 per participant Included Facilities and Maintenance Included DMV exam and paperwork only $100.00 per participant Respiratory Fit Exam only $125.00 per participant Hazardous Materials Technician Physical $660.00 per participant Influenza Vaccinations $20.00 per participant* PPD testing Immunizations as Requested Hepatitis A Vaccine Hepatitis B Vaccine Hepatitis B Titer Tetanus/Adacel LABS $18.00 per participant* $95.00 per participant* $70.00 per participant* $70.00 per participant* $65.00 per participant* COST General Labs (No MedFit Eval) Hearing (No MedFit Eval) PSA Hemocult Pap Smear Mammogram Chest Xray (No MedFit Eval) Cholinesterase Resting EKG (No MedFit Eval) Treadmill (No MedFit Eval) Heavy Metals Testing $40 per participant $40 per participant $40 per participant $20 per participant $75 per participant $175 per participant $60 per participant $60 per participant $50 per participant $225 per participant $180 per participant CONSULTATION SERVICES COST Physician Consultation Physical Therapy Consultation Physical Therapy Services $300.00 per hour $100.00 per hour $75.00 per hour 2012 Agreement Wellness Program Services 8 City of National City and SD Sports Medicine & Family Health Center LECTURE & WORKSHOP SERVICES COST Back Workshop $600.00 per lecture Nutritional and health related lectures $200.00 per lecture to $500.00 per lecture * Fees may be adjusted during the term of this agreement based on changes in current market price and availability of the vaccines. The adjusted fee will be determined by the average price of the vaccine or PPD through other local providers, plus 10% for administration. The decision to provide these services rests with the NCFD. ** Positions agreement. See attached Appendix A - Pre Employment Physicals -Group 1 Public Safety 4.3.1. Pre -Paid Fees for Services. Any pre -paid fees for service will be reimbursed back tO the City of National City within 10 days of dissolution of this 4.4. Safety/Preventive Services. 4.4.1. SDSMFHC agrees to make available consulting/training in the area of safety/prevention services at the following rates: a. Physician time billed at $300 an hour. b. Non -physician time billed at $100 an hour. 4.5. Prescriptions. It is not the intention of this Agreement or the City of National City that medications shall be dispensed during the scope of the Wellness Program. If the consulting physician identifies a need to prescribe a medication, he/she can provide a prescription at no additional cost, until the employee can follow-up with his/her own physician, or make a referral to the employee's own physician. The City of National City shall not reimburse either the employee or SDSMFHC for prescription or non-prescription medications. 4.6. Vision and Audiometric Examinations. SDSMFHC agrees to provide vision and audiometric examinations to NCFD Employees as referenced by guidelines published by the California Department of Motor Vehicles (DMV). 4.7. Respiratory Examinations. SDSMFHC agrees to provide respiratory examinations to NCFD Employees as referenced by guidelines published by the Occupational Safety and Health Administration (OSHA). 4.8. Performance Standards. It is the intent of SDSMFHC and the City of National City to provide quality medical care and other Wellness services for NCFD Employees. To maintain and improve the quality, access, availability, and cost-effectiveness of the services provided under this Agreement, SDSMFHC and the City of National City each agree to use their best efforts to develop means and standards for measuring the performance of NCFD under the Agreement, including, but not limited to the following: 2012 Agreement 9 City of National City and Wellness Program Services SD Sports Medicine & Family Health Center 4.8.1. Measurement of Key Performance Indicators, including Workers' Compensation savings, vital signs, cholesterol levels, and subjective surveys of participant's satisfaction. 4.8.2. Comparison of these indicators with other fire Departments as available through the International Association of Fire Fighters (IAFF) Wellness Initiative database. 4.8.3. Comparison of these indicators with other fire Departments as available through the San Diego County Fire Chief's Association (to be determined). 4.8.4. Other factors to be established by SDSMFHC and the City of National City. 4.9. SDSMFHC Representative. SDSMFHC shall designate Richard Parker, D.O, FAOASM, to represent SDSMFHC in all matters pertaining to this Agreement. Section 5. Administrative Services. 5.1. Periodic Meetings. Subject to any state and federal privacy laws, SDSMFHC agrees to meet with the NCFD's staff as scheduled to confidentially discuss program issues, utilization of medical specialties, utilization of physical therapy, trends and any topic of interest pertaining to the Wellness Program. 5.2. Work -Related Injuries: Initial Medical Reporting. While it is not the intent of the Wellness Program to diagnose or otherwise treat any suspected work -related injuries, in the course of a Wellness/Fitness evaluation a suspected work -related injury or illness may be discovered. SDSMFHC shall refer all NCFD employees, with a suspected work -related injury or illness, to the NCFD for coordination of medical care, unless a life threatening medical emergency exists that requires medical treatment. SDSMFHC will direct the employee to follow all NCFD procedures for reporting a work related injury or illness. Following any emergency medical treatment, SDSMFHC shall report the treatment to the NCFD for the purposes of follow-up medical treatment. In the case of emergency medical treatment, SDSMFHC shall provide the NCFD with a Doctors First Report of Work Injury or Illness (form 5020) within two days of initial treatment and all billing. SDSMFHC is not authorized to determine causation of any suspected work related injury or illness. 5.3. Work -Related Injuries: Medical Reports and Billings. SDSMFHC shall use those reports, billings and associated forms in a format approved by the NCFD for any and all work related injuries reported. 5.4. Maintenance of Medical Reports. SDSMFHC shall accurately maintain, store and retrieve employee medical files during the period of this Agreement in accordance with all applicable laws and regulations. 5.5. Confidentiality. SDSMFHC shall ensure security of the medical records for all Wellness Program participants and shall ensure compliance with all State and Federal Privacy Laws. At no time shall SDSMFHC release confidential medical records to the City of National City without written authorization from the employee. 2012 Agreement Wellness Program Services 10 City of National City and SD Sports Medicine & Family Health Center 5.6. Testimony. SDSMFHC shall, upon reasonable notice, submit to depositions and testify at court if requested by the City of National City at the contracted physician consulting rate in 4.3. 5.7. Return -to -Work Consulting. SDSMFHC shall provide consulting services by working with NCFD staff on returning injured NCFD employees, when appropriate, to modified duty at the contracted physician consulting rate in 4.3. 5.8. Special Treatment Consulting. SDSMFHC shall provide recommendations to Wellness Participants regarding surgical options, special medical treatments, or other special medical procedures identified during the Wellness exam as requiring such treatment or services at the contracted physician consulting rate in 4.3. 5.9. Authorization for Patient Referral. SDSMFHC shall insure that the employee is instructed that any referral made to a specialist or hospital will NOT be reimbursed by the Wellness Program unless authorized by both the Medical Director and the Project Manager. Section 6. Indemnification and Hold Harmless. 6.1. SDSMFHC agrees to defend, indemnify, protect and hold the City of National City 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 NCFD's employees, agents or officers, which arise from or are connected with or are caused or claimed to be caused by the sole negligence or sole willful misconduct of SDSMFHC and its employees in performing the work or services or supplying the materials or equipment under this Agreement, and all expenses, of investigating and defending against same; provided, however, that SDSMFHC's duty to defend, indemnify and hold harmless shall not include any claims or liability arising from the sole negligence or sole willful misconduct of the City of National City, its agents, officers or employees. This shall not prejudice the right of the City of National City to appear in such suit, participate in the defense, and take such actions as may be necessary to protect the interests of the City of National City. If the City of National City chooses, at its own election, to obtain independent legal counsel in defense of any claim against the City of National City, related to the performance by SDSMFHC under this Agreement, then the City agrees to pay the reasonable value of attorney's fees and costs for such independent legal counsel, however, the SDSMFHC shall not be obligated to pay attorney's fees at an hourly rate greater than the hourly rate charged by its defense attorneys in the same matter. SDSMFHC's obligations under this section shall be reduced dollar for dollar by any amounts the City of National City is awarded in such action for attorney's fees and costs. 6.2. The City of National City agrees to defend, indemnify, protect and hold SDSMFHC 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 SDSMFHC employees, agents or officers, which arise from or are connected with or are caused or claimed to be caused by the sole negligence or sole willful misconduct of the City of National City and its agents, officers or employees in performing the work or services or supplying the materials or equipment under this Agreement, and all expenses, of investigating and defending against same; provided, however, that the City of National City's duty to defend, indemnify and hold harmless shall not include any claims or liability arising from the sole 2012 Agreement 1 1 City of National City and Wellness Program Services SD Sports Medicine & Family Health Center negligence or sole willful misconduct of SDSMFHC its employees, agents and officers. This shall not prejudice the right of SDSMFHC to appear in such suit, participate in the defense, and take such actions as may be necessary to protect the interests of the SDSMFHC. If SDSMFHC chooses, at its own election, to obtain independent legal counsel in defense of any claim against the SDSMFHC, related to the performance of the City of National City under this Agreement, then the City of National City agrees to pay the reasonable value of attorney's fees and costs for such independent legal counsel, however, the City of National City shall not be obligated to pay attorney's fees at an hourly rate greater than the hourly rate charged by its defense attorneys in the same matter. The City of National City's obligations under this section shall be reduced dollar for dollar by any amounts SDSMFHC is awarded in such action for attorney's fees and costs. Section 7. Termination. This Agreement shall renew annually as set forth in Item 2. This Agreement may be terminated for any reason by either party giving ninety (90) days written notice to the other party's designated representative, provided that the Indemnification and Duty to Defend provisions in Item 6 shall survive such termination, for a period of one year. Notice under this provision shall be communicated in writing in person or by certified mail, return receipt requested as follows: If to SDSMFHC: Richard Parker, D.O., FAOASM San Diego Sports Medicine & Family Health Center 6699 Alvarado Road, Suite 101 San Diego, CA 92120 If to City of National City: National City Fire Department 1243 National City Boulevard National City, CA 91950 Section 8. Equal Opportunity. SDSMFHC shall comply with the City of National City's Equal Opportunity Program. Section 9. Drug -Free Workplace. Upon execution of this Agreement and all subsequent extensions, SDSMFHC agrees to comply with any requirements set forth in City of National City policy regarding drug -free workplace. Section 10. Americans with Disabilities Act Statement. SDSMFHC shall be responsible for complying with the 1990 Americans with Disabilities Act (ADA). (For specific services and public accommodations, SDSMFHC may contact the Office of the Americans with Disabilities Act, Civil Rights Division, U.S. District of Justice, P.O. Box 66118, Washington, D.C. 20035- 6118; phone number (202) 514-0301.) Section 11. Integration. This Agreement, and all rights and obligations created by this Agreement, shall be in full force and effect whether or not any parties to the Agreement have been succeeded by another entity, and all rights and obligations created by this Agreement shall be vested and binding on any party's successor in interest. 2012 Agreement Wellness Program Services 12 City of National City and SD Sports Medicine & Family Health Center Section 12. Compliance with Controlling Law. SDSMFHC shall comply with all laws, ordinance, regulations, and policies of the federal, state, and local governments applicable to this Agreement. In addition, SDSMFHC shall comply within a reasonable time after receiving written notice by NCFD with all directives issued by the NCFD or its authorized representatives under authority of any laws, statutes, ordinance, rules, or regulations. The laws of the State of California shall govern and control the terms and conditions of this Agreement. Section 13. Jurisdiction and Venue. The venue for any suit or proceeding concerning the Agreement, the interpretation or application of any of its terms, or any related disputes shall be in the County of San Diego, State of California. Section 14. No Waiver. No failure of either the City of National City or SDSMFHC to insist upon the strict performance by the other of any covenant, term or condition of the Agreement, nor any failure to exercise any right or remedy consequent upon a breach of any covenant, term, or condition of the Agreement, shall constitute a waiver of any such breach or of such covenant, term or condition. No waiver of any breach shall affect or alter this Agreement, and each and every covenant, condition, and term hereof shall continue in full force and effect to any existing or subsequent breach. Section 15. Severability. The unenforceability, invalidity, or illegality of any provision of this Agreement shall not render any other provision of this Agreement unenforceable, invalid, or illegal. Section 16. Drafting Ambiguities. The Parties agree that they are aware they have the right to be advised by counsel with respect to the negotiations, terms and conditions of this Agreement, and the decision whether or not to seek advice of counsel with respect to this Agreement is a decision which is the sole responsibility of each Party. This Agreement shall not be construed in favor of or against either Party by reason of the extent to which each Party participated in the drafting of this Agreement. Section 17. Signatures —Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Agreement shall not be effective until the execution and delivery between each of the parties of at least one set of counterparts. The parties authorize each other to detach and combine original signature pages and consolidate them into a single identical original. Any one of such completely executed counterparts shall be sufficient proof of this Agreement. IN WITNESS WHEREOF, this Agreement is executed by the City of National City, acting by and through its Mayor and by SDSMFHC, acting by and through its Wellness Director. --- Signature Page to Follow --- 2012 Agreement 13 City of National City and Wellness Program Services SD Sports Medicine & Family Health Center CITY OF NATIONAL CITY Dated: By: Ron Morrison Mayor APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney SAN DIEGO SPORTS MEDICINE AND FAMILY HEALTH CENTER Dated: / . i;1, By: Dated: /a/ighZ. Richard Parker, D.O., F.A.O.A.S.M. Wellness Director By: Lee Ralph, M. Chief Financial Officer 2012 Agreement Wellness Program Services 14 City of National City and SD Sports Medicine & Family Health Center CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT IEETING DATE: October 30, 2012 AGENDA ITEM NO. 11 ITEM TITLE: Resolution of the City Council of the City of National City authorizing the Mayor to execute a Second Amendment to the Lease Agreement between the City of National City and American Digital Outdoor, L.P., to allow for a possible north face to previously approved signage on a parcel of land at the end of the 30th Street cul-de-sac. PREPARED BY: Leslie Deese, City Manager /Claudia Silva, City AttorneyDEPARTMENT: City Manager/C ty PHONE: 619 -336-4240 619-336-4222 APPROVED B EXPLANATION: See attached Staff Report torney FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Adopt Resolution BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: Staff Report Resolution STAFF REPORT The purpose of this staff report is to request the City Council approve a resolution to execute a second amendment to the lease agreement between the City of National City and American Outdoor to allow for a possible north face to previously approved signage on a parcel of land at the end of the 30th Street cul-de-sac. Representatives from American Outdoor recently approached City staff with a proposal to allow for an additional LED digital display face on the north side of the sign structure. The base rent paid to the City will remain the same as described in the original agreement (attached) and 33% of the gross revenue (after ad agency commissions, if applicable) will be paid to the City for any revenue generated on the north face. Both the City and American Outdoor understand that the additional north face may have limited or no commercial. If that is the case, the display may be used for public service announcements or by the City to advertise itself or community events. Utility costs to illuminate the north face will be born by American Outdoor. If American Outdoor erects the double-faced message center, the City and American Outdoor shall re -open the lease after 12 months of operation to discuss the appropriate amount of an increase to the Monthly Rent as set forth in Section 3 and Schedule 1 of the Lease for a double-faced message center as the Monthly Rent currently contemplated a single -faced message center. If it is determined that the north face isn't visible, it will be removed by American Outdoor. RESOLUTION NO. 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE THE SECOND AMENDMENT TO THE LEASE AGREEMENT BETWEEN THE CITY AND AMERICAN DIGITAL OUTDOOR, LP, TO ALLOW FOR A POSSIBLE NORTH FACE TO THE PREVIOUSLY APPROVED SIGNAGE ON A PARCEL OF LAND AT THE END OF THE 30TH STREET CUL-DE-SAC WHEREAS, on April 3, 2012, the City Council adopted Resolution No. 2012-83 approving a Lease Agreement with American Digital Outdoor, LP ("AO"), for the lease of a vacant parcel of land identified as assessor's parcel number 562 220 41 00, located between the 30th Street cul-de-sac and Interstate 5; and WHEREAS, the Lease sets forth terms and conditions whereby AO will install, operate and maintain a single -faced digital billboard; and WHEREAS, the parties entered into an Amendment to the Lease in June 2012, to extend the time to obtain Caltrans and City permits; and WHEREAS, the single -faced digital display will be southerly facing and visible to those driving northbound on Interstate 5; and WHEREAS, AO did not originally anticipate that a north facing display would be visible to those driving southbound on Interstate 5, however, it now appears a north facing display may be visible to southbound drivers; and WHEREAS, the parties desire to allow for a possible north face to the previously approved signage, which may provide opportunities for a more visible gateway and greater revenue generation. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that the Mayor is hereby authorized to execute the Second Amendment to the Lease Agreement between the City of National City and American Digital Outdoor, LLP, to allow for a possible north face to the previously approved signage on a parcel of land at the end of the 30th Street cul-de-sac. Said Second Amendment to the Lease Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 30th day of October, 2012. Ron Morrison, Mayor ATTEST: APPROVED AS TO FORM: Michael R. Dalla, City Clerk Claudia Gacitua Silva City Attorney SECOND AMENDMENT TO THE LEASE AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND AMERICAN DIGITAL OUTDOOR, L.P. This Second Amendment to the Lease Agreement is entered into this 30th day of October 2012, by and between the City of National City, a municipal corporation ("CITY"), and American Digital Outdoor, L.P. ("AO"). RECITALS A. The CITY and AO entered into a Lease Agreement on April 3, 2012 ("the Lease"), for the lease of a vacant parcel of land identified as assessor's parcel number 562 220 41 00 located between the 30th Street cul-de-sac and Interstate 5. B. The Lease provides sets forth terms and conditions whereby AO will install, operate and maintain a single faced digital billboard. C. The parties entered into an Amendment to the Lease in June 2012 to extend the time to obtain Caltrans and City permits. D. The single faced digital display will be southerly facing and visible to those driving northbound on Interstate 5. E. AO did not originally anticipate a north facing display would be visible to those driving southbound on Interstate 5, however, it now appears a north facing display may be visible to southbound drivers. F. The parties now desire to allow for a north facing digital display to be built as part of the originally contemplated structure, which may provide opportunities for a more visible gateway and greater revenue generation. NOW, THEREFORE, the parties hereto agree to amend the Lease as follows: 1. AO may build a double-faced Message Center in a "v" concept as more particularly described in Exhibit A, whereas a single -faced Message Center was originally set forth in the Lease; 2. The definition of Message Center is amended to allow a double -sided or single - sided digital (LED) display area, whereas the definition prior to this Amendment allows for only single -side digital (LED) display; 3. If AO erects a double-faced message center, both faces are and remain subject to all requirements of the Lease; 4. If AO erects a double-faced message center but determines that the north face will not be visible to southbound traffic, then AO shall remove the north facing portion of the message center in its entirety so that no portion of the north facing message center remains visible; 5. If AO erects the double-faced message center, then the north face shall be subject to, and the revenue it generates part of, the calculation for the Business Revenue Share set forth in Section 3 and in Schedule 1 of the Lease; 6. In addition to the Business Revenue Share, if AO erects the double-faced message center, the parties shall re -open the lease after 12 months of operation to discuss the appropriate amount of an increase to the Monthly Rent set forth in Section 3 and Schedule 1 of the Lease, for a double-faced message center as the Monthly Rent currently contemplated a single -faced message center; and, 7. Each and every term of the Lease, shall remain in full force and effect, except for the amendment contained herein. IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment to the Agreement on the date and year first above written above. CITY OF NATIONAL CITY AMERICAN DIGITAL OUTDOOR, L.P. By: By: Ron Morrison, Mayor Tom LeClair, Managing Partner APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney Second Amendment to Agreement October 30, 2012 2 City of National City and American Digital Outdoor, LP Pa uP��to Srr6 TOP ult-0 N VIGiN1i1' MAP 17TroP4,5Fp ➢141TAL ?'L A-Z / f'x 4/B CEAJT“ A2ouP 'V " 57/APE , 8a' o.A. at, -5' APB t S62 - ZZo -If-I o0 NATIONAL CITY GA 'Or W. 30 sf.„f- A p,c1CANT: AME61eA61 V16171.7- o✓rOcel' I?e2 e. {116 dLAPJ r 364 P14.6N,X,A2 SSaI� CONTACT 764 L6 CC/1iti p„eNE: (3-02.) 49Y CIS-- we. NET E MAi�' TeM®AAFx¢W v 0 YB� /1 - visPL1Y FKE ti Amy SIDe Wee) ....1011. Ire /It tee- t4/3 .w 1 w 13 21/£IR0 d21-20-PC MST r__K+ .eaw3. 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[ i 1 !i1} 1}� :;jtar% s �=r}� t Rji [ir r7i: � rid i }i}a+ !rsr its d 1 1 1 hi r riitiir, r + . i :• a 1 1 91 f ii i t lj $ rf ;Hi .1 1 !i 1141 91 ji 11; pp 7i9t Oa•oo-o-o m 2® 0 0 � a art®v q m o' $�R i$iAiAYA6ii� 55�i;Vs€`i5r°ii �' S 14 h d aOW Int tame Y ICT 1.04 g1 R- c q3�3 i dR di I! i s 4.1 �n y gk . Ra ;bias 5i a g �:ig 6 �sA�l g� a 9 ; ;ia+Caf�q..i It 3 9 ^E q + i 1 3 AMERICAN OUTDOOR SIGN NATIONAL CITY, CA e6 ©r�: rrIC ao so .111. T'00 1. E.I i9iiNgill VRG d 9� 9aG�3i1� i §i 11A= �i a fi ` R _iH�i.ca ail Lo,...wOV4 p{p 1mse earn, Ile AMENDMENT TO LEASE AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND AMERICAN DIGITAL OUTDOOR, L.P. APN 562 220 41 00 The City of National City (the "City"), a California Municipal Corporation, and American Digital Outdoor, L.P. ("AOA"), a California Corporation, hereby amend the Lease made and entered the 3rd day of April, 2012 as follows: Recitals A. Effective as of April 3, 2012 the City and AOA entered into a Lease for a vacant parcel of land identified as Assessor's Parcel Number 562 220 41 00 (the "Parcel"), located between the 30th Street cul-de-sac and Interstate 5. B. The Lease sets forth terms and conditions whereby AOA will install, operate and maintain a digital billboard on the Parcel. C. Pursuant to the terms of the Lease AOA is obligated to obtain Caltrans and City Permits by a date certain. D. Despite best efforts AOA has not yet been able to obtain the Caltrans or City Permits. E. The Lease also requires AOA to prepay rent to the City one day after securing the Caltrans and City Permits, but no later than June 30, 2012. F. The parties wish to amend the Lease to allow AOA additional time to obtain the required Caltrans and City Permits. G. In the interim AOA will deposit the rental prepayment as a sign of good faith. H. The parties wish to select an escrow agent to accept and hold AOA's rental prepayment in escrow, subject to the terms of the Lease. I. The parties intend this document to memorialize their agreement and understanding. AGREEMENT NOW, THEREFORE, in consideration of the recitals and promises contained herein, and other good and valuable consideration the receipt of which is hereby acknowledged, the parties agree as follows: 1. Creation of Escrow Account. The parties hereby amend the Lease by adopting and inserting a new sections 3(d), 3(e) and 3(f) as follows: 7 3(d) Escrow Account for Rental Prepayment. The City and AOA agree to create anc" establish an Escrow Account in the event that AOA is not able to secure the issuance of the City Permits and/or Caltrans Permits on or before June 30, 2012. The City and AOA select The Bank of New York Mellon Trust Company ("Mellon Trust") as escrow agent, and by signing below Mellon Trust accepts appointment of escrow agent pursuant to the escrow instructions set forth below. 3(e) Escrow Instructions. In the event that the City Permits and Caltrans Permits have not been issued, on or before June 30, 2012 AOA shall deliver to Mellon Trust as escrow agent the rental prepayment described in section 3(c), above. Mellon Trust shall hold the rent prepayment in escrow in a non -interest bearing account until the occurrence of the earlier of the following events: One day after AOA is issued both the City Permits and the Caltrans Permits, Mellon Trust shall release to the City the rental fee payment held in escrow, subject to all of the terms and conditions of the Lease. In the event that AOA is not able to secure issuance of the City Permits and Caltrans Permits on or before December 31, 2012, then AOA may exercise its right to terminate the Lease pursuant to section 6(b)(4), below, and upon the effective date of termination, Mellon Trust shall return to AOA the rental prepayment held in escrow. 2. Reaffirmation of Lease; Controlling Document. The City and AOA reaffirm the continuing validity and enforceability of all other terms and conditions of the Lease and incorporate same by reference as if set forth fully below. In the event of any conflict between the Lease and this Amendment, the terms and conditions of this Amendment shall control. IN WITNESS WHEREOF, the parties have executed this Amendment to the Lease effective as of the day of June 2012. CITY F NATIONAL CITY AME I IGITAL OUTDOOR, LP �r on Morrison, ' ayor Tom LeClair Managing Member ROVED AS TO FORM: C s is Gaci t Silva C'ty Attome THE BANK OF NEW YORK MELLON TRUST COMPANY hereby accepts appointment of and agrees to act as escrow agent pursuant to the terms of the Lease and this Amendment. 2 THE BANK OF NEW YORK MELLON TRUST COMPANY By Its Date LEASE AGREEMENT BY AND BETWEEN THE CITY OF NATIONAL CITY AND AMERICAN DIGITAL OUTDOOR, L.P. APN 562 220 41 00 This Lease is made and entered into this 314 day of April, 2012, by and between the City of National City (the "City"), a California municipal corporation, and American Digital Outdoor, L.P. ("AOA"), a California Corporation. Recitals A. The City owns a parcel of land, identified as Assessor's Parcel Number 562 220 41 00 [the "Parcel"], which is located adjacent to Interstate 5, a local freeway, and is further described by legal description in Exhibit "A" to this Lease. B. The location of the Parcel makes it suitable for the operation of a digital billboard which could generate additional revenue for municipal purposes. C. The City desires to lease the Parcel to an outdoor -advertising company that will install, operate and maintain a digital billboard on it. D. The City issued a Request for Qualifications and AOA responded to the City's request for qualifications for a signage program. E. AOA was found to be qualified based on extensive experience in successfully installing, operating, and maintaining digital billboards throughout the United States F. AOA desires to lease the Parcel from the City for the purpose of installing, operating, and maintaining digital billboards, and it has the requisite resources and expertise to do so successfully. G. AOA is also willing and able to comply with the conditions set forth in the National City Municipal Code currently in affect and as may be in effect by future amendment. AGREEMENT NOW, THEREFORE, with these recitals in mind, the parties agree as follows: Definitions. This section defines the terms "Business Day", "Caltrans", "Caltrans Permits", "City Permits", "Commencement Date", "Digital Billboard", "Effective Date", "Hazardous Substances", "include", "Lease Year", Message Center", "Operational", "Premises", "Sign Structure", and "Term". Other terms are defined elsewhere in this Lease. 1U (k) (1) Lease Agreement (a) "Business Day" means any day the City's main offices located at 1243 National City Boulevard, National City, California, are open to the public. (b) "Caltrans" means the California Department of Transportation. (c) "Caltrans Permits" means all permits and approvals that AOA must obtain from Caltrans to install, operate and maintain the Digital Billboard in accordance with this Lease. (d) "City Permits" means all building permits, zoning amendments, and other permits, entitlements and agreements that the City, acting in its governmental capacity, must issue or approve for AOA to install, operate and maintain the Digital Billboard in accordance with this Lease. Neither this definition nor this lease obligate the City to issue or approve any discretionary permit, or to approve any legislative act. The City retains all discretion in any and all approvals and/or legislative decisions that may be needed for AOA to operate a Digital Billboard. (e) "Commencement Date" means the first day of the first month all of the following have occurred: the City has approved the Plans (defined in Section 5(a)), and AOA has received all necessary governmental permits and approvals for the Digital Billboard, including the Caltrans Permits and the City Permits, and the sign structure and message center have been installed, is operational, and ready to accept commercial advertising. (f) "Digital Billboard" means the single -sided outdoor -advertising sign that AOA will install and operate on the Premises in accordance with the criteria set forth in Exhibit "B" to this Lease. The Digital Billboard consists of a Message Center and a Sign Structure. (g) 0►) (i) "Effective Date" means the date as of which both the City and AOA have signed this Lease, as indicated by the dates in the signature blocks below. "Hazardous Substances" means any material or substance identified in Exhibit "C" to this Lease. "Include" and its variants are not restrictive. For example, "includes" means "includes, but not limited to," and "including" means "including, but not limited to." (j) "Lease Year" means one of the consecutive 12-month periods during the Term. The first Lease Year begins when the Initial Term begins. "Message Center" means the portion of the Digital Billboard that consists of a single -sided digital (LED) display area used for general commercial advertising, with the display area measuring 14 feet high and 48 feet wide. The Message Center is more particularly described in Exhibit "B". "Operational" means the Digital Billboard is capable, legally and functionally, of displaying advertising on the Message Center. 2 City of National City and American Digital Outdoor, LP (m) "Premises" or "Parcel" means the City -owned real property referenced herein as Assessor's Parcel Number 562 220 41 00, and further described and depicted in Exhibit "A". (n) "Sign Structure" means the portion of the Digital Billboard other than the Message Center, and it includes all ancillary equipment and utilities installed on the Premises. The Sign Structure is more particularly described in Exhibit "B". "Term" means the entire time this Lease is in effect. As specified in Section 2, it consists of the Initial Term, the Extended Tenn, and any period of holding over. (0) 1. Lease of Premises. The City hereby leases the Premises to AOA, and AOA hereby leases the Premises from the City, on the terms and conditions set forth in this Lease. 2. Term of Lease. (a) Initial Term. The "Initial Term" of this Lease commences on the 1st (first) day of the 1s` (first) month when electricity is delivered to the Premises and ends 15 years after the date the Initial Tenn commences. Extended Term. At the end of the Initial Term, AOA will have the right to extend this Lease for an additional five (5) years upon mutually acceptable terms and conditions, which shall be no less than those that applied during the Initial Term. To exercise its right to the Extended Term, AOA must not be in default of this Lease, must give the City a written notice of extension no earlier than 180 days and not later than 90 days before the Initial Term ends, and must have negotiated a mutually acceptable monthly rent with the City. The Extended Term begins when the Initial Tenn ends, and it ends five years after that date. (c) Expiration of Lease and Holding Over. This Lease expires automatically at the end of the initial Tenn, unless extended in accordance with Section 2(b). If this Lease is extended, then it expires automatically at the end of the Extended Term. Any holding over after expiration will not constitute a renewal of this Lease, but will be on a month -to -month tenancy on the same terms and conditions that applied at expiration. 3. Consideration. As consideration for the rights and benefits it enjoys under this Lease, including the use and occupancy of the Premises during the Tenn, AOA shall do all of the following: (b) (a) Lease Agreement Rent. Each month during the Initial Term, AOA shall pay the City the "Monthly Rent" set forth in Schedule 1. (1) Monthly Rent is due and payable on the first day of each calendar month at the address set forth for the City in Section 11(a). Any installment of Monthly Rent that is not paid within 20 days after it is due and payable will increase by 5%. (2) AOA shall maintain and make available at its Phoenix office, for the 3 City of National City and American Digital Outdoor, LP (b) City's review and audit all contracts, leases, invoices and other records that are relevant to the accurate determination of Monthly Rent in accordance with Schedule 1. After the Monthly Rent for a five-year period has been determined in accordance with Schedule 1, AOA shall retain the related records for at least three (3) years. Business Revenue Share. In addition to the Monthly Rent payment, AOA shall pay a business revenue share. AOA shall make this payment on the last day of the twelfth month following the Initial Term, on an annual basis in arrears, one-third (1/3) of the Annual Net Revenue that exceeds the annual rent, as set forth in Schedule 1. For example, if July 1, 2012 is the commencement of the Initial Term, then the business revenue share would be payable on July 31, 2013 and would cover the time period of July 1, 2012 through June 30, 2013. (c) Prepayment of Monthly Rent for Months 1 (One) through 60 (Sixty). AOA shall prepay the first 60 months of rent on the first day following the day the building permit from the City and the CalTrans Permit have been issued, but no later than June 30, 2012. AOA prepayment of rent shall be discounted for present day value, for a total discounted amount due of $450,000. 4. Use of Premises. (a) (b) Lease Agreement Condition of Premises. The City makes no representations or warranties of any kind, express or implied, written or oral, about any of the following: the physical condition of the Premises; the suitability of the Premises for AOA's anticipated use; any limitations on AOA's use of the Premises, including limitations arising from zoning laws, environmental laws, or other laws, regulations, or governmental requirements; the costs of conducting AOA's business on the Premises; or the condition of the soils or ground waters of the Premises. By taking possession of the Premises, AOA accepts the Premises "as is" and acknowledges that the Premises are satisfactory for AOA's purposes. AOA has ascertained the condition of the Premises through its own independent investigation and has relied solely on that independent investigation when entering into this Lease. Permitted Uses. Except as otherwise provided in Section 5(k), AOA has the exclusive right to display outdoor advertising on the Premises. The City shall not authorize any other off -site outdoor advertising on the Premises. AOA's exclusive right to conduct outdoor advertising on the Premises includes the following: (1) Installing, operating, maintaining, repairing, improving, repositioning (with the City's consent), and removing the Digital Billboard on or from the Premises when this Lease terminates. (2) All rights of ingress and egress over the Premises that AOA needs to access the Digital Billboard, including the right to extend utility service to the Digital Billboard. 4 City of National City and American Digital Outdoor, LP (c) Prohibited Uses. (1) Hazardous Substances. AOA shall not use, handle, store, transport, generate, release, or dispose of any Hazardous Substances on, under or about the Premises, except as follows: AOA may use Hazardous Substances that AOA needs to install, operate, maintain, repair, improve, reposition, or remove the Digital Billboard in accordance with this Lease if the City has consented in writing before the Hazardous Substances are brought on the Premises. Within 10 days after receiving the City's written request, AOA shall disclose in writing all Hazardous Substances then being used on the Premises, the purpose and duration of the use, and the manner of storage and disposal. (2) Unlawful Activities. AOA shall not use or permit the Premises to be used in any way that violates this Lease or any valid and applicable statute, ordinance, regulation, rule, or order of any federal, state or local governmental entity (including the City). AOA shall not maintain or commit, or permit the maintenance or commission of, any public or private nuisance as defined by any law applicable to the Premises on or after the Effective Date. AOA hereby waives any rights to compensation it may have if a court finds that the Digital Billboard constitutes a public or private nuisance under any valid and applicable federal, state or Local law, and for that reason orders AOA to remove or modify the Digital Billboard or to limit the operation of the Message Center. Encumbrances. AOA shall not encumber the Premises or any part of the Premises or the Digital Billboard or any part of the Digital Billboard for any purpose without the City's prior written consent, which the City may withhold for any reason. AOA shall keep the Premises and the Digital Billboard free of all liens and other encumbrances other than those, if any, to which the City consents. (3) (d) Unobstructed Use. (1) The City shall not allow any landscaping or other structure to be planted or developed on the Premises, or on immediately adjoining property owned and controlled by the City, that would impair the visibility of the Digital Billboard from northbound Interstate 5. AOA shall be responsible for addressing any existing vegetation or obstruction currently located on the Premises. City makes no warranties or representations regarding the existing visibility of the potential Digital Billboard from northbound Interstate 5. (2) If AOA notifies the City in writing that an obstruction exists, and if the City authorized or actively caused the obstruction, then the City chall remove or remedy the obstruction at its own cost within 15 days after receiving the notice. Lease Agreement 5 City of National City and American Digital Outdoor, LP /i (3) (5) If AOA notifies the City in writing that an obstruction exists, and if the City did not authorize or actively cause the obstruction, then the City may remove or remedy the obstruction at its own cost within 15 days after receiving the notice, at its sole discretion. If the City does not remove or remedy the obstruction within the 15 days, then, at no cost to the City, and after coordinating with the appropriate department(s) of the City, AOA may remove the obstruction described in the notice. (4) AOA's exercise of its rights under this Section 4(d) are in addition to any other remedies it may have under this Lease. There may be easements for ingress and egress by other public agencies or utilities. These easements shall not be considered obstructions. AOA enters into this Lease subject to and in acceptance of those easements. 5. Installation and Operation of Digital Billboard AOA shall install and operate the Digital Billboard on the Premises in accordance with this Section 5 and consistent with Section 4, all at no cost to the City. (a) Plans and Specifications. At no cost to the City, AOA shall prepare complete plans and specifications for the Digital Billboard, working closely with the City to develop plans and specifications that are mutually acceptable (the "Plans"). AOA shall submit the Plans to the City for final approval, which the City shall not withhold unreasonably. (b) Caltrans Permits. As soon as practicable after the Effective Date, AOA shall apply to Caltrans for all Caltrans Permits, and the City shall cooperate with AOA in that effort, all at no cost to the City. At its discretion, AOA may designate the City as the permittee under the Caltrans Permits, but that designation will confer no legal rights on City to use, encumber or transfer the Caltrans Permits, except as may be necessary for the parties to benefit from the Digital Billboard during the Term. Upon termination of this Lease, the City shall relinquish any interest it may have in the Caltrans Permits and execute any documents needed to confirm that AOA is the sole owner of the Caltrans Permits. AOA shall perform all obligations under the Caltrans Permits at no cost to the City whether AOA or the City is designated as the pern ittee. (c) City Permits. The City shall diligently process AOA's applications for all City Permits. This Lease does not commit the City in advance to approve the City Permits; and this lease does not constrain the City's discretion, acting as a government, with respect to the City Permits specifically or to the Digital Billboard generally. The City retains all discretion m any and all approvals and/or legislative decisions which may be related to the operation of digital billboards, and nothing in this Lease shall be construed to constrain the City's discretion in this regard in any way. (d) Installation. AOA shall begin installing the Digital Billboard as soon as practicable after the Effective Date, and shall diligently pursue installation to Lease Agreement 6 City of National City and American Digital Outdoor, LP IS completion without unnecessary interruption so that the Digital Billboard is Operational before the 180th day after the Effective Date. AOA will be excused, however, for any delays in beginning or completing installation that are caused by a Force Majeure Event, as defined in Section 11(e)(1). AOA shall use reasonable diligence to avoid such delays and to resume work as promptly as possible after such a delay. (e) Ownership. AOA will own the Digital Billboard during the Term. (l) (g) Security Fences. Before beginning installation of the Digital Billboard, AOA shall enclose, with a temporary security fence, the portion of the Premises AOA needs to install, operate, maintain and repair the Digital Billboard. AOA shall maintain the temporary security fence until AOA replaces it with a permanent security fence that circumscribes an area coextensive with the area the temporary fence circumscribed. AOA shall install the permanent security fence around the Digital Billboard at the beginning of the Operations Phase, and maintain that fence until the end of the Term. AOA shall install and maintain the temporary and permanent fences at no cost to the City, and shall consult with the City on each fence's location and design. Any such fencing shall not impair any existing easements over the Premises for ingress and egress by other public agencies, utilities, or entities. Maintenance. At no cost to the City, AOA shall maintain the Premises and shall maintain, repair, and improve the Digital Billboard in accordance with the highest standards of the outdoor -advertising industry. AOA's maintenance obligation under this Section 5(g) includes the obligation to remove promptly any graffiti from the Premises and the Digital Billboard. AOA's obligation to improve the Digital Billboard under this Section 5(g) includes the obligation to replace the entire Message Center after ten years if the Message Center falls below prevailing industry standards at that time. The City is not obligated to maintain the Premises or to maintain or repair the Digital Billboard. If, however; AOA does not maintain the Premises, then the City may notify AOA in accordance with Section 11(a) that the City will perform the maintenance described in the notice if AOA does not do so within 10 Business Days. If AOA does not perform the needed maintenance within 10 Business Days after the notice is given, then the City may perform the maintenance described in the notice, and AOA shall reimburse the City's costs. (h) Insured Damage or Destruction. This Lease will continue in full effect if the Digital Billboard is damaged or destroyed in whole or part by any cause covered by the fire -and -casualty insurance AOA is required to maintain under Section 10(a)(3), subject to the following: (1) AOA shall repair or replace the Digital Billboard at no cost to the City using the insurance proceeds AOA receives or is entitled to receive under the fire -and -casualty policy. AOA shall promptly apply for, and diligently pursue the issuance of, any permits or approvals it needs to repair or replace the Digital Billboard. Within 30 days after obtaining the necessary permits and approvals, AOA shall begin work to repair or replace the Lease Agreement 7 City of National City and American Digital Outdoor, LP I6 (i) Digital Billboard. AOA shall complete the work within 180 days after the work begins and shall pay any costs that exceed the available insurance proceeds. (2) AOA may elect not to repair or replace the Digital Billboard if: (A) the cost to repair or replace it exceeds 50% of its fair -market value immediately before it is damaged or destroyed; and the damage or destruction occurs: (3) (B) during the last two years of the Initial Tenn (if AOA opts not to extend this Lease under Section 2(b)); or (ii) during the last two years of the Extended Term (if AOA opts to extend this Lease under Section 3(b)). If AOA elects, under Section 5(h)(2), not to repair or replace the Digital Billboard, then AOA shall— (i) (A) notify the City in writing of its election; (B) use the insurance proceeds AOA receives for the damage or destruction to remove the Digital Billboard and restore the Premises in accordance with Section 5(1); and (C) pay to the City half of the insurance proceeds that remain after AOA has performed under Section 5(h)(3)(B), and this Lease will terminate when those proceeds are so paid. Uninsured Damage or Destruction. This Lease will continue in full effect if the Digital Billboard is damaged or destroyed in whole or part by any cause not covered by the fire -and -casualty insurance AOA is required to maintain under Section l0(a)(3) if the cost to repair the damage is less than or equal to twelve times the Monthly Rent in effect when the damage occurs. AOA shall repair the damage at no cost to the City as soon as is reasonably practicable. (j) Utilities. At no cost to the City, AOA shall provide and pay for all utility connections, utility equipment, and utility service required to install, operate, maintain, repair, improve, or reposition the Digital Billboard throughout the Term. AOA shall coordinate with the City and San Diego Gas and Electric ("SDG&E") for utility tie-ins and electrical power sources that AOA may need to operate the Digital Billboard. (k) Lease Agreement Advertising Rights. During the Term, AOA will have the exclusive right to enter into agreements for advertising on the Digital Billboard, subject to the following: (1) Operation of the Message Center. In operating the Message Center, AOA shall conform to all valid and applicable laws and regulations, including 8 City of National City and American Digital Outdoor, LP ti laws and regulations pertaining to outdoor advertising. AOA shall not display any message that in the judgment of the City Manager or the City Manager's designee: (A) is false, misleading, or deceptive; (B) promotes the sale or use of tobacco products, or medical marijuana, whether directly or indirectly; (C) depicts violence or anti -social behavior or relates to illegal activity; (D) contains "obscene matter", as that term is defined in California Penal Code section 311 at the time of the Effective Date, or promotes adult entertainment (E) promotes or opposes a candidate for public office, or promotes or opposes a ballot measure; (F) holds a person or group of persons up to public ridicule, derision or embarrassment, or defames a person or group of persons; or (G) contains language that is obscene, vulgar, profane, or scatological, or that presents a clear -and -present danger of causing riot, disorder or other imminent threat to public safety, peace or order. advertises automobile dealerships or auto malls located outside the City of National City. (I) advertises shopping malls located outside the City of National City. promotes the sale or use of alcohol for more than 25% of the advertising time on the Digital Billboard or without a specific warning encouraging consumers to drink responsibly. (2) Amber Alerts and Public -Service Messages. AOA shall make the Message Center available to Caltrans for the purpose of displaying "Amber Alert" messages in accordance with the Amber Alert Guidelines set forth in Exhibit "D" to this Lease. In addition, AOA shall make the Message Center available to Caltrans, to the City, and to other government agencies, on a space -available basis and without cost, for the purpose of displaying public-service messages (e.g., reports of commute times, drunk -driving -awareness messages, reports of serious accidents, emergency -disaster communications). Alternatively, AOA may include such public-service messages in the body of commercial advertising. As used in this Section 5(k)(2) and in Section 5(k)(3), "space -available basis" means any time when AOA has not sold out the display time on the Message Board. (H) (J) Lease Agreement 9 City of National City and American Digital Outdoor, LP Lease Agreement (m) (3) City Messages. At the request of the City Manager or the City Manager's designee, AOA shall make the Message Center available to the City, on a space -available basis, for the purpose of displaying the City's own commercial or noncommercial messages. The City's messages must meet AOA's graphics -arts standards so that the messages are "camera ready", at no cost to AOA. AOA shall duplicate (e.g., digitalize), install and display each City message for at least 20 consecutive days at no cost to the City. (4) City Sign. On each side of the Sign Structure, AOA shall install, operate, maintain, and repair a City sign that faces the same direction as a display area on the Message Center. The size and design of the City sign shall substantially comply with the criteria set forth in Exhibit "B". (1) Removal of Digital Billboard Within 60 days after the Term ends, whether the Term expires as scheduled or is terminated early for any reason, AOA shall remove the Digital Billboard from the Premises and shall restore the Premises to their pre -lease condition, all at no cost to the City. Compliance with Laws; Waiver of Compensation. During the Term and while removing the Digital Billboard after the Term, in accordance with Section 5(1), AOA shall do the following at no cost to the City: comply with all valid and applicable statutes, ordinances, regulations, rules, and orders that concern the Premises or the Digital Billboard and are enacted or issued by any federal, state or local governmental entity with jurisdiction over the Premises or the Improvements (including the City) whether enacted or issued before, on or after the Effective Date. (n) Other potential sites. During the first eighteen months after the Effective Date, should the City make available a City -owned property for ion of a digital billboard, AOA shall have the first opportunity to possibleteinto negotiations with the City to negotiate a possible agreement for the site. City shall retain all discretion during any such negotiations and is not under obligation to agree on terms. 6. Early Termination. (a) City's Termination Rights. Without prejudice to its other remedies at law or in equity, the City may terminate this Lease, at any time and in its sole discretion, effective 30 days after the City gives AOA written notice of termination, if any of the following circumstances occurs: (1) AOA breaches its obligation to pay Monthly Rent when due and does not cure the breach within 30 days after the City serves AOA with a written notice of breach. (2) AOA breaches its obligation to perform in accordance with any material provision of this Lease other than the obligation to pay Monthly Rent and (A) does not cure the breach within 30 Business Days after the City serves 10 City of National City and American Digital Outdoor, LP (b) it with a written notice of breach; or, (B) if the breach cannot reasonably be cured within 30 Business Days, does not begin work on a cure within 30 Business Days after the City serves it with a written notice of breach and diligently pursue the cure to completion within 90 days after work begins. The express designation in this Lease of a provision as "material" does not imply that other provisions are not material. (3) The Digital Billboard is not Operational by the 180th day after the Effective Date. AOA 's Termination Rights. Without prejudice to its other remedies at law or in equity, including the right to seek just compensation under the laws of eminent domain as described in Section 8, AOA may terminate this Lease, at any time and in its sole discretion, effective 30 days after AOA gives the City written notice of termination, if any of the following circumstances occurs: (1) The view of the Message Center's display area from the portion of Interstate 5 adjacent to the Premises is materially obstructed, and AOA did not cause the obstruction. This Section 6(b)(1) does not apply to obstructions covered by Section 4(d). (2) AOA cannot safely use the Premises to install, operate, maintain, repair, or improve the Digital Billboard because of a non -remediable condition, and AOA did not cause the condition. There is a material diversion of traffic from, or a material reduction or change in the directional flow of traffic on, the portion of Interstate 5 adjacent to the Premises, and the diversion or disruption continues uninterrupted for at least 24 consecutive months. (4) Through no fault of its own, AOA cannot obtain or maintain the governmental permits required to install, operate, maintain, repair, or improve the Digital Billboard, including the Caltrans Permits and the City Permits. (3) (5) Use of the Message Center for its intended purpose is prevented or limited by law, or AOA is required by any court or other governmental entity, for reasons other than eminent domain, to remove the Digital Billboard from the Premises. (6) The Digital Billboard is damaged by a casualty for which AOA is not required under this Lease to carry insurance, and the cost to repair the damage exceeds twelve times the Monthly Rent in effect when the damage occurs. (c) AOA's Right to Renegotiation. If any of the circumstances identified in Section 6(b) occurs, then, at its discretion and in lieu of termination, AOA may request that the City negotiate on reducing the Monthly Rent to an amount that reasonably reflect the diminished value of the Digital Billboard to AOA, and on receiving the Lease Agreement 11 City of National City and American Digital Outdoor, LP request the City shall negotiate in good faith with AOA. The City is not required, however, to agree on a reduction. (d) City's and AOA's Additional Termination Rights. Without prejudice to their other remedies at law or in equity, either party may terminate this lease if the other party (or, for AOA, its parent company)— (1) has an order for relief entered with respect to it, commences a voluntary case, or has an involuntary case filed against it under any applicable bankruptcy, insolvency, or other similar law then in effect, and the order or case is not stayed, withdrawn, or settled within 60 days after it is entered, commenced, or filed (11 U.S.C. § 365(e)(2XA), as amended, or any successor statute); or (2) files for reorganization, becomes insolvent, or has a receiver or other officer with similar powers appointed for its affairs in any court with jurisdiction, whether or not with its consent (unless dismissed, bonded or discharged within 60 days after appointment). 7. Taxes. AOA is responsible for and shall pay or otherwise discharge, without abatement or deduction, all taxes levied on, or related to, AOA's outdoor -advertising activities on the Premises. AOA recognizes and understands that this Lease may create a possessory interest subject to property taxation and that AOA may be subject to the payment of property taxes levied on such interest. AOA further agrees to pay any and all property taxes, if any, assessed during the term of this Lease pursuant to Sections 107 and 107.1 of the Revenue and Taxation Code against AOA's possessory interest in the lease premises. This obligation includes payment of any — (a) sales or similar tax on AOA's sale of advertising space on the Digital Billboard; (b) possessory interest tax related to this Lease or to AOA's possession or use of the Premises; and (c) real property tax allocated to the Digital Billboard and personal property tax levied on AOA's personal property on the Premises. 8. Eminent Domain. (a) Definitions. The following definitions apply to this Section 8: Lease Agreement (1) "Condemning Entity" means any entity that by law may exercise the power of eminent domain to acquire possession of, and title to, any of the following: the Digital Billboard, the entire Premises, or an Essential Part of the Premises. (2) "Essential Part of the Premises" means any portion of the Premises that is reasonably necessary for installing, operating, maintaining, repairing, or improving the Digital Billboard in accordance with this Lease. 12 City of National City and American Digital Outdoor, LP (b) Termination Events. This lease will terminate if a Condemning Entity acquires the Digital Billboard, the entire Premises, or an Essential Part of the Premises— (c) (1) (2) by using the power of eminent domain; or through negotiations under the threat of using the power of eminent domain. Termination Date; Rent Refund. Termination under this Section 8 will occur on the date the Condemning Entity obtains possession of, or title to, the Digital Billboard, the entire Premises, or the Essential Part of the Premises, whichever occurs first. Within 15 Business Days after the termination date, the City shall refund to AOA any pre -paid Monthly Rent for the unexpired portion of the Term; and (d) Compensation. If termination occurs under this Section 8, then AOA and the City may each independently seek to recover from the Condemning Entity all compensation and other remedies provided by law for the interests taken from them. But the City may not seek or recover compensation for AOA's lost interests, and AOA may not seek or recover compensation for the City's lost interests. 9. lndenmification. (a) Definitions. The following definitions apply to this Section 9: (1) "Person" is to be interpreted broadly and includes AOA and AOA's directors, officers, employees, contractors, and agents; and, includes the City and the City's elected officials, officers, employees, contractors, and agents. (b) (2) "Liabilities" means all liabilities, claims, demands, damages, and costs (including reasonable attorneys' fees and litigation costs through final resolution on appeal) that arise directly or indirectly from AOA's possession or use of the Premises. (3) "Occurrence" means (A) the death of, or injury to, any Person; and (B) damage to, or destruction of, any real property, personal property (including intellectual property), or the environment (broadly interpreted to include the air, soil, soil vapor, surface water, groundwater, flora, and fauna on or about the Premises). (4) "Secured Area" means the portion of the Premises enclosed by the permanent security fence that AOA erects around the Digital Billboard in accordance with Section 5(f). General Indemnity. AOA shall indemnify, defend (with attorneys reasonably acceptable to the City), protect, and hold the City and the City's property (including the Premises) harmless from and against all Liabilities that arise Lease Agreement 13 g City of National City and American Digital Outdoor, LP directly or indirectly from AOA's possession or use of the Premises. AOA is obligated under this Section 9(b) even if the City or the City's elected officials, officers, employees, contractors, or agents reviewed, accepted, or approved the work, materials, or activities from which the Liabilities arise. But AOA is not obligated under this Section 9(b) to the extent the Liabilities are caused by the sole active negligence or willful misconduct of the City or the City's elected officials, officers, employees, contractors, or agents. AOA's obligation under this Section 9(b) includes Liabilities arising from any of the following: (1) Any Occurrence on the Premises or outside the Secured Area, but only to the extent caused by AOA's acts or omissions. (2) Any Occurrence inside the Secured Area. (3) Any Occurrence that is in any way connected with any of AOA's personal property on the Premises. (5) (4) Any Occurrence caused or allegedly caused by (A) any condition of the Premises created by AOA or by any Person on the Premises with AOA's permission; or (B) some act or omission on the Premises by AOA or by any Person on the Premises with AOA's permission. Any Occurrence caused by, or related in any way to, work or activities performed on the Premises or materials furnished to the Premises at the request of AOA or any person or entity acting for AOA, or with AOA's permission. (6) Any Occurrence that is caused by, or related in any way to, a verbal or nonverbal display on the Message Center. AOA's failure to perform any provision of this Lease, to comply with any requirement of law applicable to AOA, or to fulfill any requirement imposed by any governmental entity (including the City when acting as a government) on AOA or on AOA's use of the Premises. (c) Hazardous Substances. AOA shall indemnify, defend (with attorneys reasonably acceptable to the City), protect, and hold harmless the City, the City's elected officials, officers, employees, and agents, and the City's property (including the Premises) from and against all Liabilities that arise directly or indirectly from either of the following: (1) The possession, use, generation, transportation, release, threatened release, handling, storage, or disposal by AOA or AOA's contractors of any Hazardous Substance on or under the Premises during the Term or during AOA's removal of the Digital Billboard in accordance with Section 5(1). (2) The possession, use, generation, transportation, release, threatened release, handling, storage, or disposal by anyone other than the City or the City's (7) Lease Agreement 14 City of National City and American Digital Outdoor, LP elected officials, officers, employees, contractors, or agents of any Hazardous Substance on or under the Secured Area during the Term or during AOA's removal of the Digital Billboard in accordance with Section 5(1). AOA is not obligated under this Section 9(c)(2) for any Hazardous Substance that existed on or under the Premises on or before the Effective Date unless AOA's intentional, negligent or willful misconduct causes or exacerbates a release of the Hazardous Substance. (d) Legal Challenges, AOA shall indemnify, defend (with attorneys reasonably acceptable to the City), protect, and hold harmless the City and the City's elected officials, officers, and employees in any litigation brought to challenge the validity of this Lease, the validity of the City Permits or the Caltrans Permits, or the validity of the City ordinances that authorize the installation and operation of the Digital Billboard on the Premises. AOA's obligation to indemnify under this Section 9(d) includes liability for attorneys' fees awarded to a party who successfully challenges the validity of this Lease, of the City Permits or the Caltrans Permits, or of any authorizing ordinance. (e) Survival. AOA's obligations under this Section 9 will survive this Lease. 10. Insurance. (a) Types of Policies. During the Tenn and during AOA's removal of the Digital Billboard in accordance with Section 5(1), at no cost to the City, AOA shall procure and maintain the following insurance policies covering AOA's possession and use of the Premises: (1) A policy of comprehensive general -liability insurance providing coverage at least as broad as that provided by ISO Form CG 0001. This policy must (A) be issued on an occurrence basis; (B) include coverage for premises, operations, products and completed operations, advertising injury, and contractual liability; (C) have a combined single limit of at least $2,000,000 for each occurrence; and (D) include a fire legal -liability limit of $50,000 for each occurrence. (2) A policy of automobile liability insurance providing coverage at least as broad as that provided by ISO Form CA 0001. This policy must (A) have a combined single limit of at least $1,000,000 for each occurrence; and (B) cover owned, non -owned, and hired vehicles. (3) A policy of fire and casualty insurance that insures the Digital Billboard for its full replacement value against damage or destruction by fire or by any of the perils commonly covered under the standard extended coverage endorsement to fire insurance policies issued on real property in San Diego County. In addition, during installation of the Digital Billboard, the policy must include coverage for course of construction, vandalism and malicious mischief, and must insure the Digital Billboard and all materials delivered to the Premises for their full insurable value. All insurance Lease Agreement 15 City of National City and American Digital Outdoor, LP proceeds that become payable under this policy while this Lease is in effect will be paid to AOA in trust and applied by AOA to the cost of repairing and restoring the Digital Billboard as required by, and except as otherwise provided in, Section 5(h). (4) A policy of workers compensation insurance with limits at least equal to those required by California law, and including employer liability insurance with a limit of at least $1,000,000. This policy must include a waiver of subrogation against the City. As an alternative to this policy, and subject to approval by the City's Risk Management Department, AOA may provide the City with a copy of AOA's Certificate of Consent to Self Insure from the California Department of Industrial Relations and a certificate showing AOA's excess -insurance limits and self -insured retentions. (b) Insurer Qualifications. Each policy must be issued by an insurer the California Department of Insurance has authorized to transact business in California in the relevant line of insurance, and the insurer must have a rating of at least "A" by A.M. Best Company or a rating the City's Risk Management Department determines to be substantially equivalent. (c) Certificates of Insurance and Endorsements. Within 10 days after the Effective Date, and afterward upon request, AOA shall provide the City with certificates of insurance, signed by authorized representatives of the insurers, and with original endorsements, confirming that AOA has procured and is maintaining the insurance policies required by this Section 10. AOA shall also provide the City a copy of all endorsements. (d) Notice. Each of the policies must obligate the insurer to give the City at least 30 days' advance written notice before the policy is cancelled or materially changed. (e) Other Requirements. The general liability and automobile liability policies must each — Lease Agreement (1) (3) name the City and the City's elected officials, officers, employees, and agents as additional insureds; (2) provide that AOA's insurance coverage is primary insurance with respect to the City and the City's elected officials, officers, employees, and agents to the extent they are additional insureds; provide that AOA's insurance applies separately to each insured against whom a claim is made or a suit brought, except with respect to the applicable policy limits; and (4) provide that the City's insurance and self-insurance are in excess of AOA's insurance and will not contribute with it. 16 City of National City and American Digital outdoor, LP i (f) Quinquennial Review. The City may revise these insurance requirements every five years if the City reasonably determines that revision is needed to conform the policy terms, conditions and limits with then -current insurance industry standards for structures and real property comparable to the Digital Billboard and the Premises. A revision will take effect 30 days after the City gives AOA notice in accordance with Section 11(a). (g) No Limit on Indemnification. Nothing in this Section 11 limits AOA's obligations under Section 9. 11. Miscellaneous. (a) Notices. Any notice or other communication under this Lease must be in writing and will be considered properly given and effective only when mailed or delivered in the manner provided by this Section 11(a) to the persons identified below. A mailed notice or other communication will be effective or will be considered to have been given on the third day after it is deposited in the United States Mail (certified mail and return receipt requested), addressed as set forth below, with postage prepaid. A notice or other communication sent in any other manner will be effective or will be considered properly given when actually delivered. A party may change its address for these purposes by giving written notice of the change to the other party in the manner provided in this Section 11(a). If to the City: If to AOA: City Manager City of National City 1243 National City Boulevard National City, CA 91950-4301 American Outdoor Advertising 1702 East Highland Avenue, Suite 304 Phoenix, AZ 58016-4666 (b) Assignments and Subleases. A party may not assign or otherwise transfer this Lease or any interest in it, and this Lease is not assignable by operation of law, without the other party's prior written consent, which the other party shall not withhold, delay or condition unreasonably. An assignment or transfer of this Lease does not occur, for purposes of this Section 11(b), if AOA merges with another company, reorganizes its stock, or undergoes a similar corporate restructuring, or if AOA sells any of its assets or stock. AOA may not sublease the Premises or any part of the Premises, or the Digital Billboard or any part of the Digital Billboard, without the City's prior written consent, which the City may withhold or condition in its sole discretion. An assignment, transfer or sublease made contrary to this Section 11(b) is void. (c) Successors and Assigns. This Lease binds and inures to the benefit of the successors and assigns of the parties. This Section 11(c) does not constitute the City's consent to any assignment of this Lease or any interest in the Lease, or to Lease Agreement 17 City of National City and American Digital Outdoor, LP any sublease of the Premises or any part of the Premises, or to any sublease of the Digital Billboard or any part of the Digital Billboard. (d) The City's Right to Enter and Inspect the Premises. The City and the City's elected officials, officers, employees, and agents may enter upon and inspect the Premises at any time to determine AOA's compliance with this Lease. (e) Force Majeure. (1) "Force Majeure Event" means a cause of delay that is not the fault of the party who is required to perform under this Lease and is beyond that party's reasonable control, including the elements (including floods, earthquakes, windstorms, and unusually severe weather), fire, energy shortages or rationing, riots, acts of terrorism, war or war -defense conditions, acts of any public enemy, epidemics, the actions or inactions of any governmental entity (excluding the City) or that entity's agents, litigation, labor shortages (including shortages caused by strikes or walkouts), and materials shortages. (2) Except as otherwise expressly provided in this Lease, if the performance of any act required by this Lease to be performed by either the City or AOA is prevented or delayed because of a Force Majeure Event, then the time for performance will be extended for a period equivalent to the period of delay, and performance of the act during the period of delay will be excused. (f) (g) (h) Lease Agreement (3) This Section 11(e) does not excuse (A) AOA's obligation to pay Monthly Rent when due and payable; or (B) either party's obligation to perform an act when performance is rendered difficult or impossible solely because of that party's financial condition. Waiver of Breach. A party's failure to insist on strict performance of this Lease or to exercise any right or remedy upon the other party's breach of this Lease will not constitute a waiver of the performance, right or remedy. A party's waiver of the other party's breach of any provision in this Lease will not constitute a continuing waiver or a waiver of any subsequent breach of the same or any other provision. A waiver is binding only if set forth in writing and signed by the waiving party. Relationship of the Parties. This Lease does not create any relationship or association between the City and AOA other than that of landlord and tenant. For example, and without limiting the previous sentence, this Lease does not create between the City and AOA the relationship of principal and agent, nor does it create a partnership or joint venture. Attorney's Fees. The party prevailing in any litigation concerning this Lease, the Premises, or any improvements to the Premises (including the Digital Billboard) 18 City of National City and American Digital Outdoor, LP .27 i (p) will be entitled to an award by the court of reasonable attorneys' fees and litigation costs through final resolution on appeal in addition to any other relief that may be granted in the litigation, If the City is the prevailing party, then this Section 1 1 (h) will apply whether the City is represented in the litigation by the Office of the City Attorney or by outside counsel. Severability. If a court with jurisdiction holds any nonmaterial provision of this Lease to be invalid, void or unenforceable, then the remaining provisions will remain in full force. Counterparts . The parties may execute this Lease in counterparts, each of which will be considered an original, but all of which will constitute the same lease. Memorandum of Lease. Either the City or AOA may record this Lease or a memorandum thereof with the San Diego County Clerk/Recorder. Further Assurances. Each party shall execute all additional documents or instruments, and take all necessary action that either party reasonably considers necessary to carry out the proper purposes of this Lease. Time of Essence. Time is of the essence of this Lease. Interpretation. This Lease is to be interpreted and applied in accordance with California law without regard to conflict of laws principles, except that the rule of interpretation in California Civil Code section 1654 will not apply. Schedules 1 and 2, and Exhibits A, B, C, D, E, and F are part of this Lease. (o) Construction. The parties acknowledge and agree that (i) each party is of equal bargaining strength, (ii) each party has actively participated in the drafting, preparation and negotiation of this Agreement, (iii) each such party has consulted with or has had the opportunity to consult with its own, independent counsel and such other professional advisors as such party has deemed appropriate, relative to any and all matters contemplated under this Agreement, (iv) each party and such parry's counsel and advisors have reviewed this Agreement, (v) each party has agreed to enter into this Agreement following such review and the rendering of such advice, and (vi) any rule or construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement, or any portions hereof, or any amendments hereto. Integration and Modification. This Lease sets forth the parties' entire understanding regarding the matters addressed. It supersedes all prior or contemporaneous agreements, representations and negotiations (written, oral, express, or implied) and may be modified only by another written agreement signed by both parties. Lease Agreement 19 City of National City and American Digital Outdoor, LP Schedule 1 The following definitions apply in this Schedule 1: "Gross Revenue" means all revenue AOA actually derives from the Digital Billboard, including revenue from the display of messages and revenue from non -advertising uses of the Digital Billboard, such as any rental AOA receives from a telecommunications company that uses the Digital Billboard as a cell site or cell tower. This reference to a cell site tower does not confer any right to such use, but is stated by way of example only. "Annual Net Revenue" means the difference between the Gross Revenue that AOA actually receives in a lease year and any commissions or fees that AOA actually pays to a bona fide independent advertising agency (i.e., an agency not owned or co -owned or controlled or otherwise affiliated with AOA) in connection with messages displayed on the Digital Billboard. The amount of such a commission or fee may not exceed 16% of the revenue to which it relates. AOA shall pay Monthly Rent (as described in Section 3.a.) as follows: a. Monthly Rent for months 1 through 60: The Annual Rent total shall be $102,000 (One Hundred Two Thousand Dollars) per year, paid monthly in the amount of $8,500 (Eight Thousand Five Hundred Dollars). $8,500 is the Base Rent. b. The first 60 (Sixty) months shall be paid in advance, as set forth in Section 3. AOA shall pay Business Revenue Sharing (as referenced in Section 3), in addition to Monthly Rent, as follows: AOA shall pay one-third (1/3) of that portion of the Annual Net Revenue that exceeds $102,000 per year. This 1/3 shall be calculated on an annual basis in arrears. By way of example, if Annual Net Revenue is $120,000 in a year, then the Business Revenue Sharing would be calculated as follows: $120,000 (Annual Net Revenue "ANR") - $102,000 (Annual Rent "AR") = $18,000 which is then divided by 3 for a Business Revenue Sharing ("BRS") payable in the amount of $6,000. The formula would then be as follows: (ANR-AR) =3=BRS ROS 15781 1 A.P. NO. 559-200-38 �.99' T.P.O.B 6 f. 133 7N O 4% COrn -n 2 � C0 • ,DQ L�0 / .4,'/y 2. y, A.P. NO. 559-200-34 SI _, r D=115'38'42 --R� IZ �C S8' 2gA 4, /' r 2 \ �I p S41'23'25"w(R140 S41'23'25`W 11.58' d' 1 A.P. NO. 1562-220-33 >>4 GRAPHIC SCALE 0 10 20 as 6IIMINNeimpd (1NFT). 1 inch = 20 ft. 24 VICINITY MA N.o SCALE: T.P.O.B. 'AC) LEGAL DESCRIPTION PORTIONS OF LOTS 33 & 34 AND A PORTION OF 29TH STREET IN BAHIA VISTA, IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CAUFORNIA, ACCORDING TO THE MAP THEREOF NO. 1815, FILED IN OFFICE OF THE COUNTY' RECORDER OF SAN DIEGO COUNTY, DECEMBER 19, 1924 BASIS OF BEARINGS THE BASIS OF BEARING FOR THIS PLAT IS THE EASTERLY RIGHT OF WAY UNE OF THE SAN DIEGO AND ARIZONA EASTERN RAILROAD ACCORDING TO RECORD OF SURVEY NO. 15781 I.E. N17'43'34"W LEGEND INDICATES AREA TO BE VACATED BY THE CITY OF NATIONAL CIT1r` AREA = 2.533.63 SQ. FT ± INDICATES TRUE POINT OF BEGINNING THIS PLAT WAS PREPARED BY ME OR UNDER MY DIRECTION. PRELIMINARY STEVEN A. BUSS PLS 5652 DATE ENGINEERING DEPARTMENT MT OF N4ZoN=L MY IM0 Exhibit A SO NEW OF I i !.; lot ; 1.111111111 11 i� II 4001i1� milli ill 1 i@ e re a mill 1�di! iila 1 I1i4 fiii 1 i1Y 111!II i 004;1110Y111l1mllii iIi;Oit�,i1 1 °I # !ill 111{111111111ill 1111111Iii1!l111F1! 1111'1hi.ilifi11 6 A 6 Exhibit B / (List of Hazardous Substances) Exhibit C 30 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: October 30, 2012 AGENDA ITEM NO. .2 ITEM TITLE: Resolution of the City Council of the City of National City authorizing the Mayor to execute a Third Amendment to the Agreement for Legal Services by Best Best & Krieger, LLP, for the Community Youth Athletic Center legal challenge defense to increase the not to exceed amount by $45,000 for a total amount of $409,000 PREPARED BY: Claudia Gacitua Silva PHONE: Ext. 4222 EXPLANATION: Please see attached staff report. DEPARTMENT: APPROVED BY: FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: Funds are budgeted in Account 711-409-000-209-0000. ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Adopt proposed resolution. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: Staff report Third Amendment to the Agreement with BB&K for Legal Services Proposed resolution STAFF REPORT This matter is a result of the Community Youth Athletic Center ("CYAC") legal challenge to the 2007 Redevelopment Plan Amendment. In addition to the Plan Amendment challenge, the CYAC made other claims, including violations of the Public Records Act and due process. This lawsuit has been working its way through the legal system since the Fall of 2007. Currently, the case is on appeal from Judge Denton's decision. Judge Denton invalidated the 2007 Redevelopment Plan Amendment, found that the Public Records Act was not complied with when draft notes and consultant's documents were not provided, and found the CYAC was not provided due process because they did not have sufficient time to object to the plan amendment. CYAC has cross -appealed on all the claims in which the Court held against them. The Court's award of attorney's fees totaling approximately two -million dollars ($2,000,000) has been also appealed to the 4th District Court of Appeals. Bruce Beach and Rebecca Andrews of Best Best & Krieger, LLP (`BB&K") have been our outside counsel in this case. Given the nature and length of the case, additional funds in the amount of $45,000 are needed for the on -going appeal. The City Council has previously approved the following: 1. Original Agreement for Legal Services in the amount of $160,000 (November 12, 2010). 2. First Amendment to the Agreement in the amount of $134,000 (October 18, 2011). 3. Second Amendment to the Agreement in the amount of $70,000 (May 15, 2012). This Third Amendment to the Agreement in the amount of $45,000 is necessary for the ongoing appeal process, which will bring the total not -to -exceed amount to $409,000. The appeal process is anticipated to be completed and decision rendered within the next 12 months. Because all redevelopment agencies were dissolved by the State, this Third Amendment is between the Successor Agency to the Community Development Commission as the National City Redevelopment Agency and BB&K. The Third Amendment will also require the approval of the Oversight Board to the Successor Agency prior to being effective. RESOLUTION NO. 2012 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE A THIRD AMENDMENT TO THE AGREEMENT FOR LEGAL SERVICES BY BEST BEST & KRIEGER, LLP, FOR THE CYAC LEGAL CHALLENGE DEFENSE TO INCREASE THE NOT TO EXCEED AMOUNT BY $45,000 FOR A TOTAL AMOUNT OF $409,000 WHEREAS, on November 23, 2010, the City Council adopted Resolution No. 2010-254 approving an Agreement between the City of National City, the CDC, and Best Best & Krieger, LLP ("BB&K"), to provide legal defense services regarding the Community Youth Athletic Center ("CYAC") litigation in the not to exceed amount of $160,000; and WHEREAS, on October 18, 2011, the City Council adopted Resolution No. 2011-229 approving the First Amendment to the Agreement that increased the not to exceed amount by $134,000, bringing the total not to exceed amount to $294,000; and WHEREAS, on May 15, 2012, the City Council adopted Resolution No. 2012-105 authorizing the Second Amendment to the Agreement in the amount of $70,000 for the on -going appeal process, for a total not -to -exceed amount of $364,000; and WHEREAS, a Third Amendment to the Agreement in the amount of $45,000 is necessary for the on -going appeal process, which will bring the total not -to -exceed amount to $409,000; and WHEREAS, the Third Amendment must also be approved by the Oversight Board to the Successor Agency prior to being effective. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute the Third Amendment to the Agreement with Best Best & Krieger, LLP ("BB&K"), to increase the not to exceed amount by $45,000, for a total not to exceed amount of $409,000, to cover charges for continuing legal defense services regarding the Community Youth Athletic Center ("CYAC") litigation. Said third Amendment to the Agreement is on file in the office of the City Clerk. --- Signature Page to Follow --- Resolution No. 2012 — Page Two PASSED and ADOPTED this 30th day of October, 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 IEETING DATE: October 30th, 2012 AGENDA ITEM NO. 13 ITEM TITLE: Warrant Register #14 for the period of 09/26/12 through 10/02/12 in the amount of $2,312,841.74. (Finance) PREPARED BY: K. Apalategui DEPARTMENT: Fina PHONE: 1619-336-4331 APPROVED BY: EXPLANATION: Per Government Section Code 37208, attached are the warrants issued for the period of 09/26/12 through 10/02/12 The Finance Department has implemented a policy explanation of all warrants above $50,000.00 Vendor Check Amount Health Net Inc 304156 59,013.12 Kaiser Foundation 304166 163,981.93 Public Emp Ret System 304200 264,743.36 FINANCIAL STATEMENT: ACCOUNT NO. N/AN ENVIRONMENTAL REVIEW: ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Explanation Health Insurance R1192A October 2012 Ins Active 104220-0002 October 2012 Retirement Ins Servicej9/4/12 - 9/17/12 Finance MIS STAFF RECOMMENDATION: Ratification of warrants in the amount of $2,312,841.74 BOARD / COMMISSION RECOMMENDATION: N/A1 ATTACHMENTS: Warrant Register #14 PAYEE COUNTY OF SAN DIEGO NATIONAL CONSTRUCTION RENTAL NBS TIERRA WEST ADVISORS INC ABCANA INDUSTRIES ACCOUNTEMPS ACCOUNTEMPS ACE UNIFORMS & ACCESSORIES INC ACEDO ACRO INSTRUMENT CO AEP CALIFORNIA LLC AFLAC AIRGAS WEST ALLEN ANDERSON ATKINS NORTH AMERICA INC AUSTIN DOORS ARD 'K IOP BOEGLER BOOT WORLD BOYD BRANDERS.COM, INC BRENNTAG PACIFIC INC BROWNELLS, INC CAPE C E WILSON CORPORATION CALIFORNIA ELECTRIC SUPPLY CALIFORNIA ELECTRIC SUPPLY CALIFORNIA LAW ENFORCEMENT CALIFORNIA REDEVELOPMENT CALPERS CINTAS DOCUMENT MANAGEMENT CITY OF CHULA VISTA CITY OF GARDENA CITY OF GARDENA CONDON CORPUZ CPP PRINTING DANESHFAR DAPPER TIRE COMPANY ATA TICKET INC 'kOCHERS Dr ..;ERCHIO DILLARD DISCOUNT SPECIALTY CHEMICALS D-MAX ENGINEERING DREDGE nRFW FORD WARRANT REGISTER #14 10/2/2012 DESCRIPTION DEPARTMENT/ENVIRONMENTAL HEALTH 1640 E PLAZA FENCING (PALM PLAZA) LANDSCAPE MAINTENANCE/MILEOFCARS COORDINATE DATA COLLECTION HYDROCHLORIC ACID, DRY CHLORINE, SVCS THROUGH 9/14/12 SVCS THROUGH 09/07/12 ITEM #126145, S912 SAFETY VESTS, RETIREE HEALTH BENEFITS-OCT 2012 REPAIR & CALIBRATION / FIRE POLICE VEHICLE EQUIPMENT ACCT BDM36 - OCT 2012 MOP 45714 WEARING APPAREL RETIREE HEALTH BENEFITS-OCT 2012 RETIREE HEALTH BENEFITS-OCT 2012 PROVIDE SEWER BILL/TAX ROLL LABOR, REPAIRS RETIREE HEALTH BENEFITS-OCT 2012 RETIREE HEALTH BENEFITS-OCT 2012 RETIREE HEALTH BENEFITS-OCT 2012 RETIREE HEALTH BENEFITS-OCT 2012 MOP 64096 WEARING APPAREL RETIREE HEALTH BENEFITS-OCT 2012 PARK PICNIC BLANKETS - 125TH BULK CHLORINE STOCK #184-000-307WB FIRE/LTD OCT 2012 DEPOSIT #1551-HOUSE MOVING TRANSPORT MOP 45698 ELECTRICAL MATERIAL USPU41-M2100-112C-EVSTAINLESS STEEL PD/LTD OCT 2012 REGISTRATION/ POST-REDEV WORKSHOP MILITARY SERVICE CREDIT / GOFFIGAN MONTHLY SHREDDING / POLICE ANIMAL SHELTER COSTS / POLICE REGISTRATION -CRIME SCENE INVESTIGATIONS REGISTRATION -CRIME SCENE INVESTIGATIONS RETIREE HEALTH BENEFITS-OCT 2012 RETIREE HEALTH BENEFITS-OCT 2012 TIPS FOR TEENS BOOKLET / POLICE RETIREE HEALTH BENEFITS-OCT 2012 MOP 72654 TIRES TICKET APPEALS, ON-LINE ACCESS / NSD RETIREE HEALTH BENEFITS-OCT 2012 RETIREE HEALTH BENEFITS-OCT 2012 REIMB- CERT TRAILER HAND SANITIZER, 2 OZ DEPOSIT #1708 - ADDISON PARK RETIREE HEALTH BENEFITS-OCT 2012 MOP 49078 AUTO PARTS 1/3 CHK NO DATE AMOUNT 304095 10/2/12 2,407.80 304096 10/2/12 285.04 304097 10/2/12 1,329.86 304098 10/2/12 715.00 304099 10/2/12 370.49 304100 10/2/12 1,152.00 304101 10/2/12 576.00 304102 10/2/12 399.41 304103 10/2/12 160.00 304104 10/2/12 70.00 304105 10/2/12 14, 627.66 304106 10/2/12 990.38 304107 10/2/12 123.79 304108 10/2/12 125.00 304109 10/2/12 110.00 304110 10/2/12 5,872.00 304111 10/2/12 715.00 304112 10/2/12 70.00 304113 10/2/12 140.00 304114 10/2/12 110.00 304115 10/2/12 260.00 304116 10/2/12 106.66 304117 10/2/12 145.00 304118 10/2/12 729.64 304119 10/2/12 1,077.85 304120 10/2/12 190.50 304121 10/2/12 592.00 304122 10/2/12 500.00 304123 10/2/12 1,420.27 304124 10/2/12 4,237.27 304125 10/2/12 1,984.50 304126 10/2/12 199.00 304127 10/2/12 3,050.71 304128 10/2/12 72.95 304129 10/2/12 27,097.00 304130 10/2/12 80.00 304131 10/2/12 40.00 304132 10/2/12 280.00 304133 10/2/12 140.00 304134 10/2/12 1,058.69 304135 10/2/12 250.00 304136 10/2/12 1,730.52 304137 10/2/12 3,733.75 304138 10/2/12 110.00 304139 10/2/12 70.00 304140 10/2/12 114.59 304141 10/2/12 314.14 304142 10/2/12 1,454.25 304143 10/2/12 250.00 304144 10/2/12 458.55 PAYEE EISER III ENNIS PAINT SAN DIEGO FABINSKI FERGUSON ENTERPRISES INC GELSKEY GIBBS JR HANSON AGGREGATES PACIFIC HANSON HEALTH NET HEALTH NET HEALTH NET • HEALTH NET INC HODGES HONEYWELL INTERNATIONAL INC HYDRO SCAPE PRODUCTS INC JAMES SERVATIUS JERAULDS CAR CARE CENTER JOSSE JUDD ELECTRIC JUNIEL KAISER FOUNDATION HEALTH PLANS KAISER FOUNDATION HEALTH PLANS KAISER FOUNDATION HEALTH PLANS KIMBLE KIMLEY HORN AND ASSOC INC LANDA LASER SAVER INC LEXIS NEXIS LIMFUECO LORIMAR GROUP INC MALDONADO MATERIAL SALES INC. MATIENZO MC CABE MEDINA METRO FIRE & SAFETY MEYERS/NAVE LAW CORP MORRISON MUNISERVICES LLC MURRAY MYERS N C CHAMBER OF COMMERCE NOSAL WILLIAM A NOTEWARE OCHOA PAUU JR PEASE JR PERRY FORD PETERS WARRANT REGISTER #14 10/2/2012 DESCRIPTION RETIREE HEALTH BENEFITS-OCT 2012 MOP 74690 PAINT RETIREE HEALTH BENEFITS-OCT2012 PVC SCHEDULE 80 PE PIPE 8 X 20 FT RETIREE HEALTH BENEFITS-OCT 2012 RETIREE HEALTH BENEFITS-OCT 2012 3/8" MINUS DG COMPOSITE RETIREE HEALTH BENEFITS-OCT 2012 FULL NETWORK 57135A - OCT 2012 OCT 2012 - R1192F, 57135F, 57135J INS N5992A - OCT 2012 INS R1192A - OCT 2012 RETIREE HEALTH BENEFITS-OCT 2012 HVAC MAINTENANCE MOP 45720 PIPES, VALVES, FITTINGS RETIREE HEALTH BENEFITS-OCT 2012 RETIREE HEALTH BENEFITS-OCT 2012 FRONT BRAKE PAD SET C6444 125 PLAN REIMBURSEMENT ELECTRICAL REPAIRS RETIREE HEALTH BENEFITS-OCT 2012 INS ACTIVE OCT 2012 104220-0002 INS HD HSA ACTIVE OCT 2012 GRP#104220-00 RET INS SEPT 2012 GRP #104220-01, 104220 RETIREE HEALTH BENEFITS-OCT 2012 DEPOSIT #1724 BAYSHORE BIKEWAY PROJECT RETIREE HEALTH BENEFITS-OCT 2012 MOP 45725 MATERIALS & SUPPLIES ONLINE LEGAL RESEARCH RETIREE HEALTH BENEFITS-OCT 2012 NOISE CANCELLING REMOTE SPEAKER RETIREE HEALTH BENEFITS-OCT 2012 PS EXPANDED 1/2 X #18 (32') 10-258 RETIREE HEALTH BENEFITS-OCT 2012 RETIREE HEALTH BENEFITS-OCT 2012 RETIREE HEALTH BENEFITS-OCT 2012 VALVE STEMS BUSINESS AMORTIZATION HEARING TABLE COVERS/STATE OF THE CITY 2012 SUTA/DIST. TAX - CA QTR ENDING 03/31/12 RETIREE HEALTH BENEFITS-OCT 2012 RETIREE HEALTH BENEFITS-OCT 2012 MEMBERSHIP - CM NATIVIDAD RETIREE SETTLEMENT-OCT 2012 RETIREE HEALTH BENEFITS-OCT 2012 RETIREE HEALTH BENEFITS-OCT 2012 RETIREE HEALTH BENEFITS-OCT 2012 RETIREE HEALTH BENEFITS-OCT 2012 MOP 45703 AUTO PARTS RETIREE HEALTH BENEFITS-OCT 2012 CHK NO DATE 304145 10/2/12 304146 10/2/12 304147 10/2/12 304148 10/2/12 304149 10/2/12 304150 10/2/12 304151 10/2/12 304152 10/2/12 304153 10/2/12 304154 10/2/12 304155 10/2/12 304156 10/2/12 304157 10/2/12 304158 10/2/12 304159 10/2/12 304160 10/2/12 304161 10/2/12 304162 10/2/12 304163 10/2/12 304164 10/2/12 304165 10/2/12 304166 10/2/12 304167 10/2/12 304168 10/2/12 304169 10/2/12 304170 10/2/12 304171 10/2/12 304172 10/2/12 304173 10/2/12 304174 10/2/12 304175 10/2/12 304176 10/2/12 304177 10/2/12 304178 10/2/12 304179 10/2/12 304180 10/2/12 304181 10/2/12 304182 10/2/12 304183 10/2/12 304184 10/2/12 304185 10/2/12 304186 10/2/12 304187 10/2/12 304188 10/2/12 304189 10/2/12 304190 10/2/12 304191 10/2/12 304192 10/2/12 304193 10/2/12 304194 10/2/12 2/3 AMOUNT 250.00 59.12 220.00 752.18 115.00 120.00 479.56 135.00 5,377.98 4,509.69 525.07 59,013.12 200.00 30,434.00 290.13 140.00 340.00 6C 77 89. 50.00 163,981.93 3,654.54 385.72 300.00 3,625.00 155.00 28.17 427.38 160.00 510.26 130.00 162.71 100.00 280.00 105.00 376.56 1,430.00 1,904.17 10.94 150.00 140.00 150. 1,17 125.00 340.00 140.00 148.02 290.00 PAYEE POST POTTER PRO BUILD PROFORCE LAW ENFORCEMENT PRUDENTIAL OVERALL SUPPLY PUBLIC EMP RETIREMENT SYSTEM QUALITY MECHANICAL PROFESIONAL RAY RELIANCE STANDARD ROARK ROE RUIZ S & S WELDING S D COUNTY SHERIFF'S DEPT SAFRAN MORPHOTRUST SAN DIEGO COUNTY AUDITOR SAN DIEGO DAILY TRANSCRIPT SAN DIEGO HYDRAULICS I DIEGO TROLLEY INC SHEPHARD SHOEMAKER SHORT SOUTH COAST EMERGENCY STAPLES ADVANTAGE STRASEN SUN BADGE COMPANY INC THE LINCOLN NATIONAL LIFE INS THIRD DEGREE COMMUNICATIONS THIRD DEGREE COMMUNICATIONS THOMSON WEST TRIVIZ URIAS VCA EMERGENCY ANIMAL HOSPITAL WAXIE SANITARY SUPPLY WILKINS ZIETLOW ZOLL MEDICAL CORP IECTION 8 HAPS PAYMENTS c .• YROLL Pay period Start Date 20 9/4/2012 WARRANT REGISTER #14 10/2/2012 DESCRIPTION RETIREE HEALTH BENEFITS-OCT 2012 RETIREE HEALTH BENEFITS-OCT 2012 MOP 45707 MATERIALS & SUPPLIES SALES TAX MOP 45742. LAUNDRY SERVICES / NSD SERVICE PERIOD 09/4/12-09/17/12 CIVIC CENTER DATA CENTER REDUNDANT AC RETIREE HEALTH BENEFITS-OCT 2012 VOLUNTARY LIFE INS - OCT 2012 RETIREE HEALTH BENEFITS-OCT 2012 RETIREE HEALTH BENEFITS-OCT 2012 RETIREE HEALTH BENEFITS-OCT 2012 40 3/4 X 25 1/2 X 2 1/2 TRAFFIC GRATE SHERIFF'S RANGE USE / POLICE INVESTIGATIVE SVCS - AUG 2012 PARKING CITATION REVENUE/AUG 2012 ADV-STREET RESURFACING SPECIFICATION HYDRAULIC MOTOR 500300A3122AAAAA TROLLEY FLAGGING SERVICES / NSD FACILITIES GAS & ELECTRIC SUBSISTENCE -MULTIDISCIPLINARY INTERVIEW 125 PLAN REIMBURSEMENT RETIREE HEALTH BENEFITS-OCT 2012 SENSOR & CRADLE ASSEMBLY TPM PIE-1632969 MOP 45704. OFFICE SUPPLIES / FINANCE RETIREE HEALTH BENEFITS-OCT 2012 REBANNER SUNTONE BADGE / POLICE LIFE & AD&D, STD, LTD INS-OCT 2012 REGISTRATION: MULTIDISCIPLINARY INTERVIEW REGISTRATION: MULTIDISCIPLINARY INTERVIEW ONLINE LEGAL RESEARCH RETIREE HEALTH BENEFITS-OCT 2012 RETIREE HEALTH BENEFITS-OCT 2012 STRAY ANIMAL VET CARE / POLICE 22025 SERIES 2000 BROWN TOWELS SUBSISTENCE: MULTIDISCIPLINARY INTERVIEW RETIREE HEALTH BENEFITS-OCT 2012 LIFEBAND 3 PACK / FIRE Start Date 9/26/2012 End Date 9/17/2012 End Date 10/2/2012 Check Date 9/26/2012 CHK NO DATE AMOUNT 304195 10/2/12 280.00 304196 10/2/12 150.00 304197 10/2/12 764.27 304198 10/2/12 594.44 304199 10/2/12 517.09 304200 10/2/12 264,743.36 304201 10/2/12 26,450.79 304202 10/2/12 190.00 304203 10/2/12 2,464.13 304204 10/2/12 135.00 304205 10/2/12 120.00 304206 10/2/12 310.00 304207 10/2/12 315.38 304208 10/2/12 200.00 304209 10/2/12 54.00 304210 10/2/12 15,205.63 304211 10/2/12 744.20 304212 10/2/12 574.74 304213 10/2/12 16.20 304214 10/2/12 29,045.91 304215 10/2/12 378.00 304216 10/2/12 336.00 304217 10/2/12 300.00 304218 10/2/12 196.02 304219 10/2/12 841.66 304220 10/2/12 135.00 304221 10/2/12 65.55 304222 10/2/12 8,787.43 304223 10/2/12 345.00 304224 10/2/12 345.00 304225 10/2/12 2,640.91 304226 10/2/12 135.00 304227 10/2/12 125.00 304228 10/2/1 2 267.00 304229 10/2/12 578.68 304230 10/2/12 378.00 304231 10/2/12 150.00 304232 10/2/12 3,486.80 AIP Total 730,212.58 718,293.30 864,335.86 GRAND TOTAL $ 2.3 Certification IN ACCORDANCE WITH SECTION 37202, 37208, 372059 OF THE GOVERNMENT CODE, WE HEREBY CERTIFY TO THE ACCURACY OF THE DEMANDS LISTED ABOVE AND TO THE AVAILABILITY OF FUNDS FOR THE PAYMENT THEREOF AND FURTHER THAT THE ABOVE CLAIMS AND DEMANDS HAVE BEEN AUDITED AS REQUIRED BY LAW. TINA N RRDIN, FINANCE LESLIE DEESE, CITY MANAGER FINANCE COMMITTEE RONALD J. MORRISON, MAYOR -CHAIRMAN ALEJANDRA SOTELO-SOLIS, VICE -MAYOR ROSALIE ZARATE, MEMBER LUIS NATIVIDAD, MEMBER MONA RIOS, MEMBER I HEREBY CERTIFY THAT THE FOREGOING CLAIMS AND DEMANDS WERE APPROVED AND THE CITY TREASURER IS AUTHORIZED TO ISSUE SAID WARRANTS IN PAYMENT THEREOF BY THE CITY COUNCIL ON THE 30th OF OCTOBER, 2012. AYES NAYS ABSENT CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT EETING DATE: October 30, 2012 AGENDA ITEM NO. 114 ITEM TITLE: An Ordinance of the City Council of the City of National City Amending Title 18 (Zoning) of the National City Municipal Code by amending Section 18.30.320 pertaining to pawn shops and businesses engaged in secondhand dealing and/or the purchase and selling of gold and other precious metals. (Applicant City -Initiated) (Case File 2012-18 A) PREPARED BY: (Martin R der, AICP DEPARTMENT: jpi PHONE: 1619-336-4313 APPROVED BY: EXPLANATION: The City Council held a public hearing on proposed changes to amend Chapter 18.30.320 of the Municipal Code on October 16, 2012 and voted to approve the proposed amendments.The Ordinance was introduced at the same meeting. Final adoption of the attached ordinance is needed to complete the Code Amendment process., FINANCIAL STATEMENT: ACCOUNT NO. ENVIRONMENTAL REVIEW: Not a project under CEQA (no physical change) ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Approve the Ordinance BOARD / COMMISSION RECOMMENDATION: NIA ATTACHMENTS: Ordinance ORDINANCE NO. 2012 — 2377 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AMENDING TITLE 18 (ZONING) OF THE NATIONAL CITY MUNICIPAL CODE BY AMENDING CHAPTER 18.30.320 PERTAINING TO PAWN SHOPS AND BUSINESSES ENGAGED IN SECONDHAND DEALING AND/OR THE PURCHASE AND SELLING OF GOLD AND OTHER PRECIOUS METALS, AND AMENDING THE GLOSSARY FOR TITLE 18 BY AMENDING SECTION 18.50.010 WHEREAS, pursuant to the terms and provisions of the Government Code of the State of California, proceedings were duly initiated for the amendment of the National City Municipal Code; and WHEREAS, pursuant to legal notice, hearings were held by the Planning Commission and the City Council of National City, and all persons interested were given the opportunity to appear and be heard before said Planning Commission and City Council; and WHEREAS, the Planning Commission has regularly and duly certified its report to the City Council and has recommended such amendment. NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of National City as follows: Section 1. All protests, if any, against said amendment to the Municipal Code and each of them are hereby denied and overruled. Section 2. Section 18.30.320 of the Municipal Code is hereby amended to read as follows: 18.30.320 Pawnshops and businesses engaged in secondhand dealing and/or the purchase and selling of gold and other precious metals. A. Restrictions. 1. No pawnshops 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. This shall not apply to shopping centers of fifty thousand square feet or more. 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 pawnshop 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. This shall not apply to shopping centers of fifty thousand square feet or more. 4. A conditional use permit is required. 5. A pawnshop or businesses engaged in secondhand dealing and/or the purchase and selling of gold and other precious metals that provides payday lending is not exempt from the regulations of payday lenders. 6. No more than six pawnshops shall be allowed within National City. 7. Secondhand dealers (as defined in the Glossary) shall only be permitted as accessory to a legitimate retail business that sells as new the item(s) in question as its primary business function. a. Total gross receipts of precious metals purchased or taken for credit shall not exceed 50% of total retail sales of precious metals. 8. All pawnbrokers and secondhand dealers shall require, at minimum, a secondhand dealer license and shall abide by state -mandated reporting requirements for secondhand tangible personal property as required in the Business and Professions Code. a. These requirements shall also be required of retail businesses that offer trade-ins or credit for secondhand tangible personal property. Section 3. Section 18.50.010 of the Municipal Code is hereby amended by adding the following definitions: Secondhand Dealer. 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, as defined in this Glossary. Secondhand tangible personal property. "Secondhand tangible personal property" includes, but is not limited to, all secondhand tangible personal property that 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, as defined by the California Business & Professions Code. In addition, secondhand tangible personal property also includes precious metals such as gold, silver, platinum, and jewelry. PASSED AND ADOPTED this 3th day of October, 2012. ATTEST: Michael R. Darla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney Ron Morrison, Mayor 2 Ordinance No. 2012-2377 Amending Sections 18.30.320 & 18.50.010 Pawnbroker, secondhand & precious metal dealing establishments CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT 1EETING DATE: October 30, 2012 AGENDA ITEM NO. 15 ITEM TITLE: A Request to Initiate a Street Vacation to vacate a portion of an alley between 111h and 12th Streets east of National City Blvd. as part of the Revolution 2 project (Applicant: The Focus Group.) (Case File No. 2012-16 SC). e DEPARTMENT: Planning PREPARED BY: Martin Reeder, AICP; PHONE: 619-336-4313 APPROVED BY: EXPLANATION: 'The proposed alley vacation is in conjunction with the potential redevelopment of the former Revolution property originally entitled with the Centro project. Proposed plans show a 4-story mixed -use project of 152 residential units and 3,000 square feet of street level retail. Plans also show partial vacation of the 260-foot alley between 11th and 12th Streets, and between National City Blvd. and A Avenue. . The area of the alley to be vacated is approximately 160 feet long and 20 feet wide. The southerly 100 feet of the alley is currently utilized by Enterprise Rent-A-Car, which occupies the lot at the southwest corner of National City Blvd. and East 12th Street. This section of alley would remain as public right-of-way for the use of Enterprise and public use. The remaining properties serviced by the alley are part of the proposed mixed -use project. The City's Street Vacation Procedures adopted in January 2006 require that the City Council initiate a request to vacate any public streets. A complete report will be presented to the Council at the scheduled hearing along with a recommendation by the Planning Commission. FINANCIAL STATEMENT: ACCOUNT NO. ENVIRONMENTAL REVIEW: ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Staff recommends the Council initiate a Street Vacation to vacate the portion of alley between 11th and 12th Streets east of National City Blvd. BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: 1. Overhead photo 2. Parcel Map 3. Applicant's Plans 555 11 Attachment 2 i ��v iil/ N 57275523 m� 5022 w /2S 44.5o 0I45 45 ec 701II,Ofl QO �° § ram. 9N= 10 nO ;► 103_ : 'ah so.50 AI 452.241. .. sD.. 80 %ELEVENTH — 0 56 325055 M2''S11E SEE DETAIL "A" -co TWELVETH h a 14 : 414156 1 N 0.82 AC M CONDO (PEND) CENTRO DOC11-0202839 s .41 /25 M1864 ST M585 CLSD '; RC) ,51 //5 BLK 2 mg, , 10 0.54 AC too M158071M585 /5o N8 /25 POR LO 3'26 I/4SEC 1544 4 /25 /25' M 1664 80 + ST CLSD 13 0 /26 _/ 25 29 20 2?.6. 44 5 BLK 1 18 17(i-2) — 3 i6 6 07 8 115 13% 9 12 19 10 20 , 1 11 ! 54 b/ go SAN DIEGO COUNTY ASSESSORS MAP BOOK 556 PAGE 55 DETAIL "A" NO SCALE THIS MAP WAS PREPARED FOR ASSESSMENT PURPOSES ONLY. NO LIABILITY IS ASSUMED FOR THE ACCURACY OF THE DATA SHOWN. ASSESSORS PARCELS MAY NOT COMPLY WITH LOCAL SUBDIVISION OR BUILDING ORDINANCES. MAP 15807-CENTF IN THE MAP 1589—ATWA MAP 585—F A MAP 166—RANC MAP 13—S D RANC ROS 9415, 1349 :=1,717L2' a. amir,;:ni r.. ---- v ✓.mn.ne.Q Attachment 3 / titt 8 NATIONAL CITY BOULEVARD .. � v I 1 1- t b o a O ch R+ v 14 rn cn Ig. FNI7.44.26,01 00'.10' Se 01. 3.CY,/O.LLN o'Il "Oo 9NIO1OH snood -4:17'44.24'11 160.13' O � I u b 1g 30 0 1- SZ-bSS-95:S NdV N1Jt44.31"F 260.29 'A' AVENUE L0I9G dVV' ti 1 SKET a 1 Dn. KMsa zvwrnai °fWP"' was RAr acET not ALLEY VACATION ®ETWEEN IITH ah0 12Th S1,4.16) WAS OAR 10/01/12 MI Mk REVOLUTION APARTMENTS ED Yi Y0. 222 05) SNIPES-DYEA5SOCIATE5 8348 CENTER URIVE, SUITE 6, LA MESA, CA 91942-2910 (6I91887-3234, FAX (6191460-2033 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT IEETING DATE: October 30, 2012 AGENDA ITEM NO.16 ITEM TITLE: Presentation by GB Capital Holdings, LLC of their submittal to the Port District issued Statement of Interest and Qualifications (SOIQ) for implementation of the Marina District Vision Plan. Request for direction and consider endorsement of the submittal. PREPARED BY: 'Brad Raulston+?S DEPARTMENT: Planning PHONE: APPROVED BY: EXPLANATION: The Marina District Vision Plan was presented to the City Council and the Board of Port Commissioners in early 2012. The Council and Board discussed the plan and directed staff to initiate a process where private parties would demonstrate interest and qualifications to implement the plan. The SOIQ was issued by the Port District on June 18, 2012 asking that responses be submitted by August 21, 2012. The SOIQ projected Board of Port Commissioners action by the end of 2012. The document is attached to the staff report as a reference. Only one response was submitted based on the instructions provided in the SOIQ. GB Capital Holdings, LLC, the developer of Pier 32 Marina, submitted a response which outlined their interest and ability to deliver. The cover letter is attached and the full submittal is available upon request. FINANCIAL STATEMENT: ACCOUNT NO. N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: Finance APPROVED: MIS STAFF RECOMMENDATION: Staff recommends: 1. Endorse the GB Capital Holdings, LLC submittal. 2. Request the Board of Port Commissioners take action to complete to SOIQ process in 2012 based on the agreed to timeline 3. Collaborate with the Port to negotiate an Exclusive Negotiating Agreement (ENA) with GB Capital Holdings, LLC to begin development of the Marina District plan. BOARD / COMMISSION RECOMMENDATION: ATTACHMENTS: 1. Background Report 2. Cover letter from GB Holdings, LLC submittal to SOIQ 3. Statement of Interest and Qualification (SOIQ) issued June 18, 2012 4. Complete GB Holdings, LLC submittal to SOIQ (available at City Clerk's Office) ATTACHMENT 1 BACKGROUND REPORT Background In October 2010, the Port and the City agreed to jointly undertake a land use planning study for an approximately 98-acre area within the National City Marina District. The City contributed funds to cover one- third of the costs of the study. The study area is generally bounded by Bay Marina Drive to the north, Marina Way and Paradise Marsh to the east, the Sweetwater River flood control channel to the south, and Tidelands Avenue to the west. The Port has land use authority over approximately two-thirds of the defined study area; the City has authority over the remaining area. The Port and City subsequently prepared a request for proposals (RFP) for the study and issued the RFP in December 2010. Four consulting firms submitted proposals in response in January 2011. The Port and City interviewed and evaluated the firms, selected the preferred firm of Project Design Consultants (PDC), and conducted agreement negotiations with PDC. The Port and City entered into a three -party agreement with PDC in May 2011. The planning study began in March 2011 with a meeting to establish the study approach and to refine the consultant's proposed scope of work. In March, data needs were assembled, stakeholders were identified, and site visits/surveys were conducted. Between April and June, the consultant interviewed stakeholders. On May 4, the first public workshop provided the public with an overview of the study objectives and solicited input on issues, opportunities, constraints, and desirable land uses for the study area. On June 15, the second public workshop introduced conceptual land use alternatives developed by the consultant based on public and stakeholder comments, and a preference survey was conducted. On October 5, the third public workshop presented the results of the public input, which included the survey results, workshop comments, and correspondence received. The fourth public workshop was held on December 7, during which the preferred land use alternative was presented. The public workshops were well -attended by a diverse range of stakeholders including Port tenants, BNSF Railroad, the Environmental Health Coalition, outside agencies, potential developers, and representatives of adjacent jurisdictions. Study Summary One of the major principles underlying the implementation of the vision plan is that there will be no net loss of maritime industrial lands. This principle holds that for maritime industrial lands to be converted to non -maritime uses, an equivalent replacement must be designated to maritime industrial to offset the change. For example, if the National Distribution Center was to be redeveloped for commercial use, the same amount of non - maritime industrial land would need to be designated for maritime industrial use. The planning study analyzes the development potential in the study area (including a market study), recommends a preferred vision for future land use development, and addresses the means for implementation of the preferred land use alternative. The basis for the development of the preferred alternative included the following objectives: • Protect maritime uses • Enhance the working waterfront • Increase public access to the waterfront • Provide additional public amenities • Establish additional visitor -serving uses • Ensure compatibility of adjacent and transitional land uses • Solicit public and stakeholder input to assist in the design of the plan • Comply with environmental regulations and protect coastal resources • Develop a plan that is financially feasible and provides a fiscal benefit to both the Port and the City The resulting preferred land use alternative is a vision plan for the study area that generally recommends the conversion of some industrial land use to commercial land use. The preferred alternative would improve several undesirable land use conditions in the study area. Many of the existing parcels in the area are odd - Attachment 1 — Background Report Page 1 of 2 shaped, divided, incompatible with adjacent uses, or otherwise constrained for development. The preferred alternative would result in more developable land areas, improve buffering and delineation between land uses, and create a more substantial footprint for comprehensive commercial development. In addition, the print' . of no net loss of maritime industrial lands would insure the continued protection of maritime uses. The planning study/vision plan is intended to inform the Port and City of the potential for future land use development in the study area. The study recommendations are not binding and require considerable discretionary entitlements in order to implement the preferred alternatives. These are further complicated by inter -jurisdictional land use authority as well as permit and discretionary authority of various other agencies, particularly the Califomia Coastal Commission and State Lands Commission. Furthermore, development of the preferred land use alternative will ultimately be determined by market forces. Statement of Interest and Qualifications (SOIQ) The Marina District Vision Plan was presented to the City Council and the Board of Port Commissioners in early 2012. The Council and Board discussed the plan and directed staff to initiate a process where private parties would demonstrate interest and qualifications to implement the plan. The SOIQ was issued by the Port District on June 18, 2012 asking that responses be submitted by August 21, 2012. The SOIQ projected Board of Port Commissioners action by the end of 2012. The document is attached to the staff report as a reference. Only one response was submitted based on the instructions provided in the SOIQ. GB Capital Holdings, LLC, the developer of Pier 32 Marina, submitted a response which outlined their interest and ability to deliver. The cover letter is attached and the full submittal is available upon request. Staff Recommendation Staff recommends City Council endorsing GB Capital Holdings, LLC submittal and requesting the Board of PL., Commissioners to take action to complete to SOIQ process by selecting GB Capital Holdings, LLC and negotiating an Exclusive Negotiating Agreement (ENA) to begin development of the Marina District plan. The next phase of implementation will focus on obtaining entitlements necessary for new development and finalizing plans for the public improvements that are currently funded by the Port and City Capital Improvement Programs. The implementation of the plan would compliment the ongoing efforts of the Port and City to redevelop the study area to increase visitor -serving commercial uses and public access to the waterfront while defining the land use transition between commercial and industrial areas. Attachment 1 — Background Report Page 2of2 _-- CAPITA! 9 Ioii 1 tics. I.LC 4980 N. Harbor Drive Suite 200 San Diego, CA 92106 P: 619.688.9217 F: 480.247.5663 Attachment 2 August 21, 2012 San Diego Unified Port District General Services and Procurement Department C/O Matt Earl, Contracts Supervisor 1400 Tidelands Ave., National City 91950 RE: SOIQ 12-13 National City Bayfront Marina District Vision Plan Development Opportunity Dear Proposal Evaluator, GB Capital Holdings, LLC respectfully submits to the San Diego Unified Port District a Statement of Interest and Qualifications (5O1Q) for the development of the Marina District of the National City Bayfront study area. John and Beverley Grimstad are currently principals in various long-term Port leaseholds on San Diego Bay. Our background will show a strong blend of development, ownership, and operations of marinas, moorings and restaurants. We have named this project Pier 32 Gateway Village Marina & RV Resort. Enclosed you will find a thoroughly comprehensive package supported by nearly 40 years of experience in development and operations. This proposal includes the following: • Proposer's Questionnaire • Concept Development Plan • Economic Feasibility Study John and Beverley Beauchamp Grimstad are principals in GB Capital Holdings, LLC, Beauchamp Realty, Inc. as well as the real estate holdings of the Orange County based Beauchamp properties. The properties include 4 Southern California marinas (Pier 32 Marina, Point Loma Marina, Harbor Island West Marina and Dana West Marina), a recreational mooring buoy system (The San Diego Mooring Company), in addition to two waterfront restaurant locations (Jimmy's Famous American Tavern and Pier 32 Waterfront Grill). During the past 4 decades, the Beauchamp family holdings have also included hotels, shopping centers and multi -family residential properties. John and Beverley Grimstad were also co -owners in the family owned dental HMO, Western Dental. As established and respected Port Tenants, John and Beverley Grimstad understand the importance of the National City Joint Vision Plan. We hope to continue our shared vision to enhance the Marina District area of the National City Bayfront. Pier 32 Marina's adjacency to the study area ensures our utmost commitment to the successful outcome of any and all efforts to enhance the community. The Grimstads believe that this project provides the ability to further enhance public access to the water in National City while increasing the recreational waterfront opportunities for the residents of National City, and the South Bay Community. We are excited about the possibility of creating the Zink that will join the RV Resort and Pier 32 Marina creating a Gateway Village project along with the public spaces that already exist. Inherent in our operation philosophy is a strong concern for the environment. We plan to construct and operate green while balancing the environmental, social and economic concerns. The Pier 32 Gateway Village Marina & RV Resort will improve the National City Bayfront community while fostering socially and environmentally responsible behavior. Our goal is to minimize our carbon footprint wherever feasible. While evaluating our experience and ability to be the selected qualified interested party, we believe that it is important to point out that we are vested in the area and process. We have worked in conjunction with the District, and National City to create the Pier 32 Marina. We have actively participated in the Joint Vision Plan to further enhance the Marina District area, and understand the variety of views and the need to build consensus. We are aware and educated in the regulatory documents that guide the area such as the Port Master Plan, National City Local Coastal Program, Harbor District Specific Area Plan, as well as the need to conduct environmental review pursuant to CECA. We will ensure no net Toss of maritime industrial land. Our civic duty ensures that the community will continue to be engaged to work through the difficult issues that arise out of any discussion of such an important piece of property. John and Beverley Grimstad believe that local community involvement is critical to the success of this investment. Our business plan will connect the local community, the education system, the aquatic center, beach, and marina. Discounted rates may be offered on services to residents of National City to stimulate the waterfront experience. The critical question is: What separates us and makes Pier 32 Gateway Village Marina & RV Resort the clear choice? It is our intention to design, develop, construct and operate a property and business that will be a continuation of the waterfront jewel we have already provided to the community. We are confident that you will find it an exciting, creative and compelling development plan. The Port District and National City will not regret selecting our team as the successful proposer. We sincerely request that you recommend the proposal of John and Beverley Grimstad as the preferred qualified interested respondent to the Board of Port Commissioners and the City Counsel of National City. Sincerely, Authorized Representative: John A. Grimstad, Principal, GB Capital Holdings, LLC, 4980 N. Harbor Drive, Suite 200, San Diego, CA 92106, has the authority to enter into a binding agreement and authorize changes to the scope, terms, and conditions of the agreement if selected. Ph: (619) 688-9217 Fax: (480) 247-5663 E-Mail: jrimstad@gbcapitalholdings.com SOIQ 12 -13 - Proposal Letter Page 2 G8 Capital Holdings, LLC • 4980 N. Harbor Drive. Suite 200 • San Diego, CA 92106 • Ph: (619) 688.9217 • Fax: (480) 247.5663 Attache nt 3 REQUEST FOR STATEMENT OF INTEREST AND QUALIFICATIONS (SOIQ) SOIQ 12-13 NATIONAL CITY BAYFRONT MARINA DISTRICT VISION PLAN DEVELOPMENT OPPORTUNITY 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: Submit SOIQ by: Submit SOIQ Processing Fee by: Projected Board Approval: June 18, 2012 August 21, 2012 August 28, 2012 By the end of 2012 REQUEST FOR STATEMENT OF INTEREST AND QUALIFICATIONS (SOIQ) SOIQ 12-13 National City Bayfront Marina District Vision Plan Development Opportunity i TABLE OF CONTENTS I. 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 VII. Protests Page 10 ATTACHMENTS Attachment A Green Port Policy Attachment B Port Lessee Questionnaire Attachment C National City Vision Plan- Project Design Consultants Attachment D San Diego Unified Port District- Staff Report Attachment E San Diego Unified Port District- Resolution Attachment F San Diego Unified Port District — Meeting Minutes Attachment G City of National City- Staff Report Attachment H City of National City- City Council Meeting Minutes I. 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 htto://www.portofsandieoo.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-citv.ca.us/ 1I. SOIQ SERVICES: A. Proiect 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 19 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 Marina 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 alternative (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 19 1. Port Act & Port Master Plan a. The allowable uses of Port Tidelands are governed by the Port Act of 1962. (http://www.portofsandieao.ora/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 long-range, comprehensive Port Master Plan for all of Tidelands, as required by the Califomia 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 (httri://www.coastal.catov/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 19 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. 2. 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 4 of 19 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.00rtofsandieqo.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 19 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 19 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 ID 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 19 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. B. 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 19 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. 4. 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. 5. 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 19 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 EXPERIENCE OF PROPOSED TEAM MEMBERS W IGHT 1 Firm A Firm B Firm C Score1 Total±Score I_Total I Score_i_Total 5 APPROACH TO THE SOIQ CAPABILITY TO PERFORM COST AND PRICE 5 FIRM/TEAM'S RELEVANT EXPERIENCE CONFORMITY WITH PORT MASTER PLAN GREEN PORT GOAL ATTAINMENT 8 5 10 10 TOTALS 7 B. 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 closing date for submittal of SOIQ Developer may submit t 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 19 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 dosing 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 19 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 Port Environmental 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 19 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 19 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 19 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 19 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 19 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 19 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 19 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 19 ITEM #17 10/30/12 VERBAL REPORT ON AN OPPORTUNITY TO PARTNER WITH OLIVEWOOD GARDENS TO APPLY FOR A GRANT OFFERED BY THE SAN DIEGO FOUNDATION TO TRANSFORM "BUTTERFLY PARK" INTO A COMMUNITY GATHERING PLACE (COMMUNITY SERVICES) ITEM #18 10/30112 VERBAL UPDATE ON AUTOMATED EXTERNAL DEFIBRILLATOR (AED) INSTALLATIONS (FIRE) ITEM #19 10/30/12 VERBAL UPDATE ON 4TH AND HIGHLAND (FIRE) ITEM #20 10/30/12 VERBAL REPORT ON PAPERLESS AGENDA (ADMINISTRATIVE SERVICES) ITEM #21 10/30/12 CLOSED SESSION REPORT (CITY ATTORNEY)