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HomeMy WebLinkAbout2013 10-08 CC HA ADJ AGENDA PKTAgenda of an Adjourned Regular Meeting of the National City City Council/Community Development Commission — Housing Authority of the City of National City City Council Workshop Council Chambers 1243 National City Boulevard National City, California Tuesday, October 8, 2013 — 6:00 p.m. Open To The Public ROLL CALL Pledge of Allegiance to the Flag by Mayor Ron Morrison NOTE: Pursuant to state law, items requiring Council of the City of National City action must be brought back on a subsequent Council of the City of National City Agenda unless they are of a demonstrated emergency or urgent nature. Upon request, this agenda can be made available in appropriate alternative formats to persons with a disability in compliance with the Americans with Disabilities Act. Please contact the City Clerk's Office at (619) 336-4228 to request a disability -related modification or accommodation. Notification 24-hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. Spanish audio interpretation is provided during Council Meetings. Audio headphones are available in the lobby at the beginning of the meetings. Audio interpretacion en espanol se proporciona durante sesiones del Consejo Municipal. Los audiofonos eston disponibles en el pasillo al principio de la junta. Council Requests That All Cell Phones And Pagers Be Turned Off During City Council Meeting CC/CDC Agenda 10/8/13 - Page 2 1 Resolution of the City Council of the City of National City adopting the amended Chapter 100 "Administration and Policy Management" of the City Council Policy Manual which includes amending policies (101, 102, 104-111, 113-117) and deleting policies (103 and 112). (City Manager/City Attorney) 2. City Council review and discussion of proposed Policy updates to the City Council Policy Manual (Chapters 200-500). (City Manager/City Attorney) ADJOURNMENT Next Regular National City City Council/Community Development Commission - Housing Authority of the City of National City - Tuesday — October 15, 2013 - 6:00 p.m. — Council Chambers, Civic Center Regular Meeting — Successor Agency to the Community Development Commission as the National City Redevelopment Agency — Tuesday, October 15, 2013 — 6:00 p.m., Council Chambers, Civic Center. CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: October 8, 2013 AGENDA ITEM NO. ',1! ITEM TITLE: Resolution of the City Council of the City of National City adopting the amended Chapter 100 "Administration and Policy Management" of the City Council Policy Manual which includes amending policies (101,102, 104-111, 113-117 and deleting policies (103 and 112). PREPARED BY: Leslie Deese, City Manager 619-336-4240 DEPARTMENT: City ManageAttorney PHONE: Claudia, Silva, City Attorney, 619-336-4220 APPROVED BY. EXPLANATION: See attached FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Adopt Resolution BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: 1) Staff Report 2) Resolution 3) Policies (See staff report) Background: The City Council Policy Manual is comprised of 52 policy sections covering ten areas: Chapter 100 — Administration and Policy Management Chapter 200 - Financial Services Chapter 300 — Legal and Legislative Services Chapter 400 — Municipal Planning and Development Chapter 500 — Public Works Chapter 600 — Personnel Services Chapter 700 — Traffic and Public Safety Chapter 800 — Public Service Facilities Chapter 900 — Real Estate and Public Property Chapter 1000 — Risk Management The Policy Manual is a comprehensive document that has 52 policies that vary in complexity and length. Some policies are one page and as simple as calling a special meeting. Others, such as the City Council's policy on Investments, are quite lengthy and technical. In the past, the City Council has addressed various policies on an as - needed basis. On April 2, 2013 at its regular meeting, the City Council considered the item and requested a workshop be scheduled to review the proposed Chapter 100 policy revisions. The City Council met at a special workshop on June 11, 2013 to review and comment on these policies. A second workshop was scheduled for October 8 to review the final drafts of Chapter 100 as well as first drafts of Chapters 200-500. In addition, Council directed staff to bring back a draft policy establishing meetings between the Mayor and Vice Mayor. As discussed in previous staff reports, new policies will be brought forward to a future Council meeting once remaining policies chapters have been reviewed and approved by the Council. Discussion: Per Policy 101, the City Council Policy Manual should be reviewed on an annual basis, and updated as necessary. In an effort to bring the policies up to date, the entire manual is being reviewed, one chapter at a time, with proposed changes presented for Council review and approval. The information before you includes the final drafts of Chapter 100 policies, a resolution adopting said policies; and the first drafts of Chapter 200-500 policies. Subsequent chapters, and any new policies, will be brought forward to future Council meetings. To ensure the Council had sufficient time to review the proposed changes to the policies, the following documents were distributed on September 24, 2013: Chapter 100 (with yellow inserts between each policy) • A list of significant changes made at the June 13, 2013 Council workshop • A copy with changes identified (where applicable) • Final draft for Council review and approval (watermarked "Final Draft") Chapters 200-500 (with blue inserts between each policy) • A list of significant changes proposed by staff • The original/existing policy (watermarked "Original") • A draft with proposed changes identified (no watermark). Additions are underlined, deletions appear in right margin. • A final draft that incorporates proposed changes for Council review/approval (watermarked "Draft") • Note: We are still working on a couple of polices in the section (as noted in the Significant Changes memo). Due to the amount of rework and research needed on these policies, we did not want to delay Council's review of the other policies. Said policies will be brought back at a future meeting. Also attached, per Council's request, is a set of "Council Policy Review Forms" that may be used to help facilitate Council's thoughts/questions on each policy that Council may be articulating at the workshop. After Council's review and preliminary approval, supporting Resolution(s) will be brought forward to Council at a subsequent meeting for final adoption. Once all the chapters have been adopted, the Policy Manual will be posted to the City's website. RESOLUTION NO. 2013 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ADOPTING THE AMENDED CHAPTER 100 "ADMINISTRATION AND POLICY MANAGEMENT" OF THE CITY COUNCIL POLICY MANUAL, WHICH INCLUDES AMENDING POLICIES 101, 102, 104-111, 113-117 AND DELETING POLICIES 103 AND 112 WHEREAS, at the City Council meeting on June 11, 2013, the City Council publicly reviewed and approved the amended Chapter 100 "Administration and Policy Management" of the City Council Policy Manual, which included amending Policies 101, 102, 104-111, 113-117 and deleting Policies 103 AND 112. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby adopts the amended Chapter 100 "Administration and Policy Management" of the City Council Policy Manual, which includes amending Policies 101,102,104-11, and 113- 117, and deleting Policies 103 and 112. PASSED and ADOPTED this 8th day of October, 2013. Ron Morrison, Mayor ATTEST: Michael R. Della, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney Summary of Additional Changes Made at 6-11-13 Council Workshop Chapter 100 Policy #101: City Council Policy Manual • Add: "all newly elected Council members will receive a copy of the Council Policy Manual" Policy #102: City Council Meeting Times • No additional changes proposed by City Council Policy #103: Special Council Meetings • Deleted Policy #104: Conduct of City Council Meetings • Add: "This policy applies to all Boards, Commissions and Committees". Reference National City Municipal Code: Title 16 Policy #105: Off Agenda Items • No additional changes proposed by City Council Policy #106: Preparation of City Council Meeting Minutes • Add: "webcast the meetings whenever possible" Policy #107: Appointments to Boards and Commissions • No additional changes proposed by City Council Policy #108: City Manager as Chief Administrative Officer • No additional changes proposed by City Council Policy #109: Travel and Training Reimbursement • No additional changes proposed by City Council Policy #110: Display of Flags • No additional changes proposed by City Council Policy#111: Utilization of City Vehicles in Non -Safety Related Capacities • Add: "whether static or in motion" Policy #112: Document Reproduction • Deleted Policy #113: Unauthorized Disclosure of Information Revealed in Closed Sessions • No additional changes proposed by City Council Policy #114: Grant Activities Page 1 of 2 • No additional changes proposed by City Council Policy #115: Donation of Surplus City Property and Police Department Unclaimed Property • Replace "foreign or domestic" with "Sister Cities". Policy #116: Procedure for Disclosure of Ex Parte Contacts • No additional changes proposed by City Council Policy #117: Distribution and Reporting of Tickets and Passes Distributer to, at or the behest of a City Official • No additional changes proposed by City Council Page 2 of 2 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: City Council Policy Manual POLICY #101 ADOPTED: July 14, 1987 AMENDED: Background: The City Council of the City of National City is charged with the responsibility of establishing municipal policies to guide the various functions of the City" and, where necessary, to establish procedures by which functions are performed Regulatory policies established by the City Council are usually adopted by ordinance and included in the Municipal Code, which establish the local laws. Other policies, however are also established, which by their nature, do not require adoption by ordinance. These policy statements adopted by resolution of the City Council need to be consolidated in a reference document for easy access. Purpose It is the purpose of this policy to establish procedures for the preparation, distribution and maintenance of Council policies and the "City Council Policy Manual." Policy 1. To establish a"City Council Policy Manual" which shall contain all City policy statements adopted by resolution of the City Council. 2. Generally, policy statements in this "City Council Policy Manual" will include only such municipal matters for which the responsibility of decision is placed in the City Council by virtue of the Municipal Code, or specific ordinances and resolutions. 3 All policy statements of the City Council shall be prepared in writing and approved by resolution. Once approved, policy statements will be reproduced, distributed and included in the "City Council Policy Manual" accompanied by the resolution number and date of adoption. 4. Each policyadopted as part of the City Council Policy shall be adhered to by City departments as expressions of the City Council's policy. Only the City Council can waive the applicability of an adopted policy. 5. Each policy statement shall include: (a) a brief background description of the policy; (b) the purpose of the policy; (c) the policy statements; (d) other criteria or procedural sections as required; and (e) cross reference notations as to appropriate provisions in the Municipal Code, Administrative Regulations, etc. 6. The City Manager shall be responsible for the preparation, continuing maintenance, and distribution of the "City Council Policy Manual" and additions or deletions thereto. Page I of 2 TITLE: City Council Policy Manual POLICY #101 ADOPTED: July 14, 1987 AMENDED: 7. Each October, the City Council and City Manager shall review the "City Council Policy Manual" for any needed additions, deletions or changes deemed appropriate at the time. Nothing in this policy shall prevent any individual member of the Council, the City Manager, or the City Attorney from bringing to the Councils' attention any suggestions for manual revisions at other times during the year. 8. All newly elected City Council Members will receive a copy of the City Council - Policy manual, and orientation from applicable department staff. Related Policy References None Prior Policy Amendments None Page 2 of 2 {Formatted: Indent: Left: 0.25" I, -{Formatted: Bullets and Numbering CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: City Council Policy Manual POLICY #101 ADOPTED: July 14, 1987 AMENDED: Background: The City Council of the City of National City is charged with the • : responsibility of establishing municipal policies to guide the various functions of the City and, where necessary, to establish procedures by which functions are performed. Regulatory policies established by the City Council are usually adopted by ordinance and included in the Municipal Code, which establish the local laws. Other policies, however are also established, which by their nature, do not require adoption by ordinance. These policy statements adopted by resolution of the City Council need to be consolidated in a reference document for easy access. Purpose It is the purpose of this policy to establish procedures for the preparation, distribution and maintenance of Council policies and the "City Council Policy Manual." Policy 1. To establish a "City Council Policy Manual" which shall contain all City policy statements adopted by resolution of the City Council. 2. Generally, policy statements in this "City Council Policy Manual" will include only such municipal matters for which the responsibility of decision is placed in the City Council by virtue of the Municipal Code, or specific ordinances and resolutions. 3. All policy statements of the City Council shall be prepared in writing and approved by resolution. ><Once approved, policy statements will be reproduced, distributed and included in the "City Council Policy Manual" accompanied by the resolution number and date of adoption. 4. Each policy adopted as part of the City Council Policy shall be adhered to by City departments as expressions of the City Council's policy. Only the City Council can waive the applicability of an adopted policy. 5. Each policy statement shall include: (a) a brief background description of the policy; (b) the purpose of the policy; (c) the policy statements; (d) other criteria or procedural sections as required; and (e) cross reference notations as to appropriate provisions in the Municipal Code, Administrative Regulations, etc. 6. The City Manager shall be responsible for the preparation, continuing maintenance, and distribution of the "City Council Policy Manual" and additions or deletions thereto. Page 1 of 2 TITLE: City Council Policy Manual POLICY #101 ADOPTED: July 14, 1987 AMENDED: 7. Each October, the City Council and City Manager shall review the "City Council Policy Manual" for any needed additions, deletions or changes deemed appropriate at the time. Nothing in this policy shall prevent any individual member of the Council, the City Manager, or the City Attorney from bringing to the Councils' attention any suggestions for manual revisions at other times during the year. 8. All newly elected City Council Members will receive a copy of the City Council Policy manual, and orientation from applicable department staff. Related Policy References None Prior Policy Amendments None Page 2 of 2 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: City Council Meeting Times POLICY #102 ADOPTED: April 7, 1981 AMENDED: Purpose To set forth the regular meeting schedule and how meetings may be scheduled for and by the City Council. Policy A. Regular meetings. The City Council shall hold regular meetings on the first and third Tuesday of each month. The meetings shall be held in the Council Chambers of City Hall, 1243 National City Boulevard in the City of National City. The regular meeting shall begin at 6:00 p.m., or as otherwise scheduled due to the demand of business or for Closed Session. 1. Location of meetings. The City Council may hold a regular meeting, special meeting, or adjourned regular or special meeting at another location within the City, or locations outside the jurisdiction of the City, provided appropriate notice is given pursuant to and the location of the meeting is consistent with the Ralph M. Brown Act(("Brown Act"). 2. Holidays or elections. In the event that the regular meeting of the City Council falls on a legal holiday, or an election day on which a National City candidate or National City measure appears on the ballot, no meeting will be held on such day. Any regular meeting may be dispensed with by a majority vote of the City Council. B. All regular, ,special and adjourned meetings of the City Council shall be called, noticed and conducted in compliance with the Brown Act. Related Policy References National City Municipal Code, Section 2.04.010 Prior Policy Amendments July 17, 2001 Page 1 of 1 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Special Council Meetings POLICY #103 ADOPTED: January 6, 1987 AMENDED/REVISED: Purpose To establish a policy for calling and setting the time for Special Meetings of the City Council so that all Council members are, to the extent possible, given the maximum opportunity to attend and to vote on key issues that are the subject of special meetings. Policy City Council members shall be personally contacted and given a choice of three potential Special Meeting times so that a mutually satisfactory time can be arranged by the Council Secretary Related Policy References None Page 1 of 1 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Conduct of City Council Meetings POLICY #104 ADOPTED: December 13, 1983 AMENDED: Purpose To establish rules of conduct for meetings of the City Council which facilitate orderly proceedings and comply with applicable state law. Policy All meetings of the City Council will be conducted under Rosenberg's Rules of Order. In addition, such meetings will be governed by the Ralph M. Brown Act and other applicable state laws. Any question about proper procedure will be immediately referred to the City Attorney as parliamentarian. This policy applies to all Boards, Commissions and Committees. Related Policy References National City Municipal Code, Chapter 2.04 Ralph M. Brown Act Rosenberg's Rules of Order (available via the City's website) National City Municipal Code, Title 16 Prior Policy Amendments None Page 1 of 1 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Conduct of City Council Meetings POLICY #104 ADOPTED: December 13, 1983 AMENDED: Purpose To establish rules of conduct for meetings of the City Council which facilitate orderly proceedings and comply with applicable state law. Policy All meetings of the City Council will be conducted under Rosenberg's Rules of Order. In addition, such meetings will be governed by the Ralph M. Brown Act and other applicable state laws. Any question about proper procedure will he immediately referred to the City Attorney as parliamentarian. This policy applies to all Boards, Commissions and Committees. Related Policy References National City Municipal Code, Chapter 2.04 Ralph M. Brown Act Rosenberg's Rules of Order (available via the City's website) National City Municipal Code, Title 16 Prior Policy Amendments None Page 1 of 1 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Off Agenda Items and Placing Non -Agenda POLICY #105 Items on the Agenda ADOPTED: March 12, 1985 AMENDED: Purpose In order for both the City Council and City staff to be adequately prepared to discuss City business during Council meeting, items for discussion shall be placed on the agenda in accordance with established Council agenda deadlines and in compliance with the Ralph M. Brown Act. Generally, items not on the agenda cannot be discussed or considered during a Council Meeting. This policy discusses the limits upon non -agenda items and how to place those items onto the agenda. Policy A. Non -agenda items requiring immediateaction Matters requiring Council action must be placed onto a Council Agenda in a timely manner in order for Council to consider the matter. It is the policy of the City Council that in accordance with the Ralph M. Brown Act, off -agenda items requiring Council approval will not be considered by the City Council except under the following two circumstances: I. An emergency' situation exists; or, 2. The Council determines by a two-thirds vote, or by a unanimous vote if less than two-thirds of the Council is present, that: a. there is a need for immediate action, and b. the need to take action on the item arose after the posting of the agenda; If the Council finds that the need to take action arose subsequent to the agenda posting, pursuant to criteria 2 above, it shall make those findings by separate motion, including the factual reasons supporting the findings. The findings shall be reflected in the Council minutes. B. Council Comments Leading to Future Agenda Items A Councilmember may, under City Council Comments, give an informational report on any item not on the agenda, providing that no discussion or action takes place on that item. That item, however, may be requested to be placed on a future agenda for discussion or other action. Additionally, Council members may, at a regularly scheduled meeting, request items to be placed on future agendas for Council action, discussion, or consideration. The Page 1 of 2 TITLE: Off Agenda Items and Placing Non -Agenda POLICY #105 Items on the Agenda ADOPTED: March 12, 1985 AMENDED: Councilmember referring the item will provide a brief description of the subject to be printed for the agenda packet, sufficient to inform the City Council and public of the nature of the item. The scheduling, consideration, and action taken on all agenda items will be made subject to the Ralph M. Brown Act. C. Non -agenda Public Comment / Public Oral Communications Citizens shall have the right to address the City Council on any matter within the elected body's jurisdiction, subject to a 3-minute time limit. The City Council may listen to the speaker's comments, but cannot discuss or take action on, citizen communications not on the agenda. Non -agenda public comment may be referred to staff for administrative action or placement on a subsequent agenda, as deemed appropriate by staff. D. Requests to speak. All request -to -speak forms must be completed and submitted to the City Clerk prior to the beginning of the item in question. Related Policy References National City Municipal Code, Chapter 2.04 Ralph M. Brown Act Prior Policy: Amendments None Page 2 of 2 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Preparation of City Council Meeting Minutes POLICY #106 ADOPTED: June 17, 1986 AMENDED: Purpose To establish the format of the official minutes of the City Council (and all their subsidiary functions) and the disposition of video recordings of those proceedings. Policy The meeting minutes will be "action only" minutes and will include the item title, staff recommendations, Board and Commission recommendations, the Council action and the vote. Public Hearings will include a list of people speaking in favor and in opposition to the item under consideration. The record of all items of business considered by the City Council (or their other subsidiary functions) shall consist solely of a brief title identifying each item of business, the recommendation of any Board or Commission, the recommendation of staff, the motion made, and the vote taken. The record of that portion of the City Council meeting devoted to reports from the Mayor, the City Attorney, and the other staff shall consist of a brief description of the subject matter of the report and of any description, provided that the record or any part thereof shall be verbatim if so requested by a member of the City Council prior to approval of the minutes. It is the goal of the City Clerk's office to post Council meeting minutes and video recordings on the City's website, within approximately two weeks of the meeting dated to webcast the meetings whenever possible. Hard copies of the Council meeting agendas and minutes will be available in the City Clerk's office. Minutes and video recordings will be maintained on the City's website for a minimum of three years from the date of original posting. Related Policy References None Prior Policy Amendments None Page 1 of 1 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Preparation of City Council Meeting Minutes POLICY #106 ADOPTED: June 17,1986 AMENDED: Purpose To establish the format of the official minutes of the City Council (and all their subsidiary functions) and the disposition of video recordings of those proceedings. Policy The meeting minutes will be "action only" minutes and will include the item title, staff recommendations, Board and Commission recommendations, the Council action and the vote. Public Hearings will include a list of people speaking in favor and in opposition to the item under consideration. The record of all items of business considered by the City Council (or their other subsidiary functions) shall consist solely of a brief title identifying each item of business, the recommendation of any Board or Commission, the recommendation of staff, the motion made, and the vote taken. The record of that portion of the City Council meeting devoted to reports from the Mayor, the City Attorney, and the other staff shall consist of a brief description of the subject matter of the report and of any description, provided that the record or any part thereof shall 'be verbatim if so requested by a member of the City Council prior to approval of the minutes:' It is the goal of the. City Clerk's office to post Council meeting minutes and video recordings on the City's website, within approximately two weeks of the meeting date; and to webcast the meetings whenever possible. Hard copies of the Council meeting agendas and minutes will be available in the City Clerk's office. Minutes and video recordings will be maintained on the City's website for a minimum of three years from the date of original posting. Related Policy References None Prior Policy Amendments N one Page 1 of 1 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Appointments to Boards and Commissions POLICY #107 ADOPTED: June 17, 1986 AMENDED: Purpose To establish a procedure to serve as a guide in making appointments to various City Boards and Commissions. The City currently has the following boards, commissions, and committees (generally referred to as Boards and Commissions) to which this Policy would apply: Board of Library Trustees; Civil Service Commission; Community and Police Relations Commission; Park, Recreation and Senior Citizens Advisory Committee; Planning Commission; Public Art Committee; and, Traffic Safety Committee. Policy Appointment Process A. Opportunity to apply. All interested individuals shall be given an opportunity to submit applications for vacancies on City Board and Commissions. Incumbent Commissioners are not automatically re -appointed but are required to fill out an abbreviated application providedby the City Clerk, indicating their interest in continuing to serve. B. Unexpired terms. If an incumbent Commissioner was appointed to fill an unexpired term and the Commissioner has served for less than one year in that position, the Council may re -appoint the incumbent without considering other applicants. C. Vacancies. When Commissioner vacancies occur, the following procedure shall be followed: Scheduled vacancy. When a term is or has expired, a public notice of the vacancy shall be made. Interested individuals will be invited to submit applications for the vacancy on a form provided by the City Clerk. 2. Unscheduled vacancy. An unscheduled vacancy shall be filled pursuant to and consistent with Government Code section 54974, which provides generally as follows: When an unscheduled vacancy occurs, whether due to resignation, death, termination, or other causes, a special vacancy notice shall be posted in the office of the City Clerk and the National City Library, and in other places as directed by the City Council, not earlier than 20 days before or not later than 20 days after the vacancy occurs. Final appointment shall not be made by the City Council for at least 10 working days after the posting of the notice in the City Clerk's office. However, the City Council may, if it finds that an emergency exists, fill the unscheduled vacancy Page 1 of 3 TITLE: Appointments to Boards and Commissions POLICY #107 ADOPTED: June 17, 1986 AMENDED: immediately. A person appointed to fill the vacancy shall serve only on an acting basis until the final appointment is made pursuant to this section. 3. Applications will be reviewed by the entire City Council and applicants will be interviewed by the entire City Council. D. Implementation. Implementation of Council policy for appointment to Boards and Commissions requires the following: 1. Preparation of appointments list by the City Council. On or before December 31 of each year, the City Council via the City Clerk shall prepare an appointments list (known as the Local Appointments List) of all regular and ongoing hoards, commissions, and committees which are appointed by the Mayor and/or the City Council, incompliance with Government Code section 54972, which generally requires a list of all appointive terms which will expire during the next calendar year, the name of the incumbent appointee, the date of appointment, the date the term expires, and the necessary qualifications for the position; and a list of all boards, commissions, and committees whose members serve at the pleasure of the City Council, and the necessary qualifications for each position. 2. Notice. Placement of a legal/public notice in a local San Diego newspaper advertising appointive vacancies; 3. Expiration of term. A letter to be sent to all office holders as their terms expire asking if they would like to re -apply for the position; 4. Interviews. Interviews to be held for those who file applications for all committees" with current vacancies. Each applicant will have the opportunity to make a brief (approximately 5 minute) presentation of their interestsand qualifications before the City Council at a regular Council meeting. All appointments and interviews before the City Council will be scheduled as needed to fill unexpected vacancies, with every effort to be made before an individual's term expires. Interviews may take place at one meeting, with appointments made at a subsequent meeting. E. Vacancies for Council Appointed Positions. If the vacancy is for a Council - appointed position, and there is more than one applicant for a given position, the voting process will proceed as follows: 1. Once the interviews are complete, each Councilmember votes for his/her choice via a written ballot. Each Councilmember shall print and sign Pagc 2 of 3 TITLE: Appointments to Boards and Commissions POLICY #107 ADOPTED: June 17, 1986 AMENDED: his/her name on the ballot. All ballots shall be considered a public record and open to inspection by the public. 2. The ballots are passed to the City Clerk who announces the number of votes for each candidate. In the event of a tie, each Councilmember votes again until one candidate has the majority vote, and is declared to be the new Commissioner. 3. Re -appointments beyond two terms. Anyone wishing to be re -appointed to any Board or Commission, and has served two or more full terms already, must be approved by a four -fifths vote of the Council. In these instances, if all five members of the Council are not present or if one member abstains or recuses his/her vote, the four -fifths requirements would be changed to require only a simple majority. Appointing Authority Under the Government Code, the Mayor has appointment power to all Boards and Commissions, subject to ratification by the City Council, unless there is a state law which directly, or by implication, grants the appointment power to the City Council. The following is a list of City Boards and Commissions divided between the Mayor and City Council as the Appointment power exists. Mayor's Appointments: Board of Library Trustees Traffic Safety Committee Parks, Recreation and Senior Citizens Advisory Committee Sweetwater Authority Community and Police Relations Commission (CPRC) Public Art Committee City Council Appointments Planning Commission (including Committee for Housing and Community Development) Port Commission Civil Service Commission Related Policy References Government Code section 40605 Government Code section 54970, et. seq. National City Municipal Code Title 16 (pending) Prior Policy Amendments None Page 3 of 3 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: City Manager as Chief Administrative Officer POLICY #108 ADOPTED: November 22, 1982 AMENDED: Background The City of National City operates under the Council/Manager form of government, a system that combines the policy leadership of elected officials in the form of a City Council, with the managerial expertise of an appointed City Manager: The Council is thc legislative body that represents the community and is empowered to formulate citywide policy. The City Council is comprised of the 'Mayor and four councilmembers who are elected by the community at -large. The City Manager is appointed by the Council and serves as the chief administrative officer of the organization. The City Manager is responsible for administration of City affairs, day-to-day operations, implementation of Council 'policies and is the liaison between the Council and the City staff. Purpose The purpose of this policy is to clarify the City Manager's responsibilities and establish guidelines in the Council issuing, directives to City staff members. Policy In accordance with the National City Municipal Code, Section 2.01.030, except for the purpose of inquiry, the City Council shall deal with the administrative departments solely through the City Manager, and neither the City Council nor any member thereof shall give orders to any of employee of the City Manager. This policy is based on the principle that departments carry on their approved activities and do not alter approved priorities or policies on the basis of a request that has not been approved by the Council as a body. The City Manager shall act as chief administrative officer for thc various appointed department directors as well as the City Clerk's office. The City Manager's duties and responsibilities are codified in National City Municipal Code Chapter 2.01. Related Policy References National City Municipal Code, Chapter 2.01 Government Code section 34851, et. seq. Prior Policy Amendments None Page 1 of 1 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Reimbursement for Expenses Incurred in POLICY #109 The Performance of Official Duties ADOPTED: September 19, 2006 AMENDED: Purpose Government Code Sections 53232.2, 53233.3, and 53233.4, enacted pursuant to AB 1234, require the governing body of a local agency to adopt a written policy addressing reimbursement for travel and training expenses incurred in the performance of official duties. The City Council deems it desirable to adopt a uniform policy applicable to City employees, board and commission members, members of the City Council and other elected officials, governing reimbursement for such expenses. The purpose of this administrative policy is to establish 'uniform policies and procedures concerning expenses incurred by members of the City Council, board or commission members, City employees and other elected officials while traveling or attending events on City business. I. Policy A City Councilmember, elected official, board or commission member or City employee who is required to travel in the performance of their duties or to attend an authorized meeting, conference or seminar which is of direct benefit to the City shall be reimbursed for reasonable expenses incurred, including transportation, meals, lodging and other incidental expenses directly related to such official City business. Expenses specifically disallowed for reimbursement include purchase of personal use items alcoholic beverages and entertainment (including in -room movies). All requests for, city -related travel must be reviewed/approved by the Purchasing Reviie vv Committee (PRC) prior to making any travel commitments or arrangements. Estimated post information must be sent to the Finance Department/Purchasing Division. Upon approval by the PRC, travel plans may be made. PRC approval numbers must be noted on expense reports and invoices submitted for payment or reimbursement. Existing City purchasing policies and procedures must be followed when obtaining cost estimates, and making arrangements associated with travel. See Municipal Code, Chapter 2.60 regarding Purchasing polices and procedures. Page 1 of 8 TITLE: Reimbursement for Expenses Incurred in POLICY #109 The Performance of Official Duties ADOPTED: September 19, 2006 AMENDED: A. Transportation. The following modes of transportation may be allowed for the purpose of traveling on City business: 1. Air Travel. Allowance for air travel will be actual roundtrip via coach or tourist class accommodation. Receipts for air passage must be retained for submission with the Travel Expense Report. 2. Personal car. With specific approval from the department head or the City Manager, personal cars may be used for out-of-town travel. Reimbursement shall be based on actual mileage used for the official travel. Any mileage used for personal purposes or otherwise not directly related to official City business shall be deducted from total miles traveled to arrive at the net reimbursable mileage. Reimbursement shall be at the prevailing IRS standard mileage rate. When use of a personal vehicle is authorized, individuals shall adequately account for their use of the personal vehicle on a daily basis on the Travel Expense Report. Total reimbursable transportation expense through use of a personal car shall in no case exceed the allowable expense of transportation by air when one is available to such destination. 3. City -owned vehicle. Use of City -owned vehicle shall be authorized when this mode of transportation can be demonstrated as the most economical means available. For determining advisability of usage, employees shall be supplied with estimated cost of travel via a City -owned vehicle by Public Works upon request. Use of a City -owned vehicle shall not be authorized when the estimated cost exceeds the authorized cost of air travel. When use of a City -owned vehicle is authorized, individuals shall adequately account for their use of the =City -owned vehicle on a daily basis in the Travel Expense Report. Individuals shall be charged at the prevailing IRS standard mileage rate for every mile of personal use of the City -owned vehicle. The cost of personal use of a City -owned vehicle shall be deducted from the total allowable travel expenses. Individuals who experience car trouble with a City -owned vehicle while on out-of- town travel, should contact the Public Works Department as soon as possible for direction. If it is after work hours or on the weekend, contact the Police Department Dispatch at (619) 336-4411, and they will get in touch with Public Works staff. All receipts for such repairs must be pre -authorized by Public Works and retained and forwarded to Public Works for approval prior to reimbursement. In the event of an accident while using a City -owned vehicle, the traveler should refer to the `Accident Page 2 of 8 TITLE: Reimbursement for Expenses Incurred in POLICY #109 The Performance of Official Duties ADOPTED: September 19, 2006 AMENDED: Packet' in the glove box of each vehicle for detailed instructions on how to proceed, then notify Police Dispatch and Public Works immediately. B. Lodging. 1. General provisions. Reimbursement will be madefor the cost of lodging required to conduct the assigned City business. Dated receipts and meeting and travel schedules must be retained for submission with the Travel Expense Report. Lodging will be allowed for the night prior to the commencement of the meeting if the time set for the start of the meeting requires the individual to leave home prior to 6 a.m. of the day of the meeting. Lodging will be allowed for the night following the meeting if the employee could not have arrived home prior to ` 12:00 midnight following the meeting. Lodging in connection with separate, consecutive meetings or conferences shall be permitted if it is less costly than returning to the city for the nights between the meetings. In instances where an individual has the option to travel by air and the individual opted to travel by car, reimbursement for lodging shall be allowed on the same basis as if the individual traveled by air,. 2. Rate of reimbursement. Lodging reimbursement shall be based on the single room rate charged at the headquarters hotel for the conference or the hotel most proximate to the site of the meeting. If the hotel has different rates for single room accommodation; the individual shall be entitled to reimbursement for no more than the second least expensive rate. In the event the individual occupies a more expensive room accommodation (e.g. multiple occupancy), they will be reimbursed at the rate for single occupancy. The employee shall have the hotel indicate on the bill whether the room is for single or multiple occupancy and the equivalent single occupancy rate if the accommodation is other than single occupancy. If the rate for single occupancy cannot be verified from the bill or receipt, the individual shall be reimbursed at 80% of the rate indicated on the bill. C. Meals. Reimbursement for meals shall be on the basis of actual cost. All meal receipts must be retained for submission with the Travel Expense Report. Receipts must be detailed and itemized showing exactly what was ordered. Credit card receipts will not be accepted for purposes of reimbursement. To claim reimbursement, travel commencement and termination times must be accounted for. Reimbursement for breakfast is not allowed on the day of departure Page 3 of 8 TITLE: Reimbursement for Expenses Incurred in POLICY #109 The Performance of Official Duties ADOPTED: September 19, 2006 AMENDED: unless the trip starts prior to 7:00 a.m. Reimbursement for dinner is not allowed on the day of return unless the trip ends later than 8:00 p.m. D. Registration Fees. Fees charged for registration at a conference or meeting which an individual is authorized to attend are reimbursable. Receipts or other acceptable evidence of the amount of the fees, such as a copy of the conference program/invitation setting forth the fee rates, shall be retained for submission with the claim form. E. Incidental Expenses. 1. Taxi and Bus Fares. Reimbursement will be allowed for taxi, bus fare or other transportation costs when such transportation is necessary in the conduct of City business. Receipts must be provided for these expenses, regardless of cost. Such expenses shall be itemized on the Travel Expense Report. 2. Communications. Telephone and telegraph charges will be reimbursed for official calls and wires only. Unofficial calls charged to the hotel bill should be identified and deducted from the total hotel bill. 3. Parking, garage, and toll charges. Parking. garage, and toll expenses will be reimbursed when an automobile is used for transportation. Receipts must be submitted for reunbursement. 4. Tips, gratuities, and services fees. Customary tips of up to 20 percent will be permitted on reimbursable items. Tips shall be itemized on the claim form. 5. Miscellaneous. All items of expense not included in any of the other categories but which nonetheless can be clearly identified as incidental to the undertaking of City business shall also be allowed reimbursement. Receipts for these items must be submitted. Examples of such expenses are public stenographer fees, duplicating expenses and the cost of publications of value to the City being distributed at conference. F. P.O.S.T. Expenses. Expenditures in training Police Department personnel under the P.O.S.T. Program shall be authorized and reimbursed by the City in accordance with established P.O.S.T. guidelines. In case of conflict between the P.O.S.T. guidelines and this policy, the P.O.S.T. guidelines shall prevail but only in the case of expenditures properly reimbursable under the P.O.S.T. Reimbursement Program. Page 4 of 8 TITLE: Reimbursement for Expenses Incurred in POLICY #109 The Performance of Official Duties ADOPTED: September 19, 2006 AMENDED: G. Cash Advance. It is encouraged that individuals use their own money or credit cards to finance the trip and then claim reimbursement upon their return. If in the judgment of a department manager, estimated expenses for ,a contemplated out -of -city travel are too high to expect the individual to finance the trip, and be reimbursed upon their return, the department manager may authorize advance payment or a maximum of $200 to the employee. An advance in excess of $200 must have the approval of the City Manager. Approval of cash advance does not constitute approval for expenditure of the amount so advanced. All actual expenditures must be justified and approved based on limits and allowances set by this policy. II. Procedures A. Reimbursement of Business Travel Expenses. The individual shall submit a signed Travel Expense Report to the department director after completion of travel. Such report shall show the details of official business expenses incurred and should be accompanied by supporting documents required under this policy. The department director shall review the report for compliance with this policy and affix their signature to signify approval. The Travel Expense Report must be forwarded to the Finance Department within three (3) working days upon return. City Council members and members of boards and commission shall submit the Travel Expense Report to the City Manager for approval. Allowance for air travel will be actual round trip via coach or tourist class accommodation. Travel Expense Reports will be accompanied by air passage receipts when filed. C. Personal Car. Individuals shall account for use of their vehicle on a daily basis through use of a Travel Expense Report, which is to be submitted when filing a claim. D. City -owned Vehicle. Page 5 of 8 TITLE: Reimbursement for Expenses Incurred in POLICY #109 The Performance of Official Duties ADOPTED: September 19, 2006 AMENDED: Authorized personal use of a City vehicle will be accounted for on a Travel Expense Report, which will be submitted when filing for reimbursement. Individuals will be charged the prevailing IRS standard mileage rate for each mile, and shall be deducted from the total allowable travel expenses. Emergency repair receipts must be submitted to Public Works for approval prior to reimbursement. E. Lodging. Receipts indicating date and occupancy status, accompanied by meeting and travel schedules much be submitted with the Travel Expense Report when filing a claim. F. Meals All meal receipts will be submitted with the Travel Expense Report. Receipts must be detailed and itemized, showing exactly what was purchased (not just credit card receipts). G. Registration Fees. Receipts, or other acceptable evidence of the amount paid, must be submitted with the Travel Expense Report. H. Incidental Expenses. Incidental expenses (except for alcohol, entertainment, and items for personal use) shall be itemized on the Travel Expense Report, and receipts shall be provided. 1. Cash Advance. Approved requests for travel advances shall be submitted to the Finance Department at least ten (10) working days before the start of travel. Funds will be released no earlier than three (3) working days prior to the trip departure date. The Finance Department shall deduct from the total expenses claimed, any expense item found to be inconsistent with this policy, and shall furnish the employee with an itemized list of items disallowed. Any amount due the employee shall be paid within ten (10) working days from receipt by the Finance Department of the Travel Expense Report. Page 6 of 8 TITLE: Reimbursement for Expenses Incurred in POLICY #109 The Performance of Official Duties ADOPTED: September 19, 2006 AMENDED: III. Alternative Proof of Payment for Training Expenses. A. Individuals periodically request alternative proof of payment methods for reimbursable training expenses, (i.e., registration/tuition fees), advanced, when receipts or cancelled checks are not available. B. As an exception, only when receipts are impractical to obtain, the following may be used in place of receipts or cancelled checks for reimbursement purposes. 1. Course announcement specifying the amount of fees, and 2. A document issued by the training institution indicating attendance or completion of the course by the employee IV. Use of City Credit Card for Travel Purposes, City staff members occasionally attend job -related training and conferences, upon approval of the City's Purchasing Review Committee (PRC). Job related training is often required by state mandates. In order to make airline and hotel reservations, a credit card number must be provided to guarantee the reservations. Prior to use, any employee wishing to use a City -issued credit card, must read and adhere to the City's Credit Card Policy (Administrative Policy #3.14). Per Administrative Policy #3.14: Credit cards may never be used to circumvent established competitive purchasing procedures, or dollar limits established by the City's Municipal Code. City Ordinances or Purchasing Division procedures. Credit cards shall only be used to pay for "PRC" authorized travel and training expenses. Individuals may not use City credit cards for personal expenses even if the intent is to reimburse the City later. See Administrative Policy 3.14 for complete rules and details.: Summary;;;. This Policy cannot cover every issue, exception or contingency that may arise in obtaining reimbursement for travel and training expenses incurred in the performance of official duties, and in the use of City credit cards. Individuals are expected to exercise good judgment and show proper regard for economy when traveling in conjunction with official City business. Any expense for which an individual requests reimbursement should directly and manifestly relate to the conduct of City business and, in the event of an audit, should leave no doubt that Page7of8 TITLE: Reimbursement for Expenses Incurred in POLICY #109 The Performance of Official Duties ADOPTED: September 19, 2006 AMENDED: such expenditure was pre -approved by the Purchasing Review Committee, and is in fact reasonable and necessary in the conduct of City business. Accordingly, the basic standard that should always prevail is to use common sense and good judgment in the use and stewardship of City resources. This Policy shall supersede all previously -adopted policies and procedures pertaining to reimbursement for travel and training expenses and to the use of City credit cards, including Instruction Nos. 3.03, 3.04, 3.05 and 3.14 of the City Administrative Manual. This Policy satisfies the requirements of Government Code Sections 53232.2 and 53233.3. Related Policy References Government Code Sections: 53232.2, 53233.3, 53233.4 Assembly Bill 1234 City Administrative Manual Policies 3.03 3.04, 305, 3.14 Municipal Code, Chapter 2.60 Forms: Travel Expense Report: available from the Finance Department or the City's Intranet site. Credit Cardholder Use Agreement: available from the Finance Department Prior Policy Amendments September 19, 2006 Page 8 of 8 1 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Display of Flags POLICY #110 ADOPTED: July 14, 1987 AMENDED: Purpose To establish a policy regulating when the flag of the United States, the flag of the State of California and the flag of the City of National City should be flown at half-staff This policy shall also establish guidelines governing the flying of the following flags on City property: Permanent Flags United States of America State of California City of National City Ceremonial Flags Army Navy Marine Corps Air Force United States Coast Guard POW Army Retired Navy Retired Air Force Retired World War IICommemorative Korean War Veterans` Vietnam Veterans Policy The City of National City observes the following protocol with respect to the display of the flags. 1) The flags will be displayed from sunrise to sunset unless properly lit. 2) The flags will be hoisted briskly and lowered ceremoniously. 3) The flags will not be displayed on days when the weather is inclement, except when an all-weather flag is displayed. 4) When flying the flags at half-staff, the flags will be hoisted to the peak for an instant and then lowered to the half-staff position. 5) The City Manager is authorized to display at all City buildings the United States flag at half-staff in accordance with the rules set forth below and at such times as may be prescribed by the President of the United States, the Governor of the State Page 1 of 3 TITLE: Display of Flags POLICY #110 ADOPTED: July 14, 1987 AMENDED: of California, or the Mayor of the City of National City with the concurrence of the City Council. a) Thirty days from the death of a President or former President b) Ten days from the day of death of a Vice -President, Chief Justice of the United States or a Speaker of the House of Representatives. c) The day of death and on the following day for a United States Senator or Representative, the Governor of the State of California, andany elected official of the City of National City. d) On the closest working day to the date of internment for an employee of the City of National City. 6) The flags will be flown at half-staff on the following days: a) Memorial Day until noon b) Patriot Day, September 11 When flying the flags at half-staff, the flags will be hoisted to the peak for an instant and then lowered to the half-staff position. 7) At Kimball Bowl, the United States, State of California, and the City of National City flags will be flown 24 hours, 7 days a week, except in the case of inclement weather. These flags shall be lit during nighttime hours. 8) All City locations that have flags, will fly the United States and the State of California flags on the holidays listed below. In addition, the Kimball Bowl will fly ceremonial flags on certain holidays as listed below: a) Inauguration Day- as designated b) President Day- 3rd Monday in February c) Armed Forces Day- 3rd Saturday in May d) Memorial Day- the last Monday in May e) Flag Day- June 14 f) Independence Day- July 4 g) Labor Day- 1st Monday in September h) California Admission Day- September 9 i) Patriot Day- September 11 j) Veteran's Day- November 11 k) Pearl Harbor Day- December 7 1) Other days that may be proclaimed by the President of the United States, or the Governor of the State of California 9) The following departments are responsible for raising and lowering the flags at the listed locations: Page 2 of 3 TITLE: Display of Flags POLICY #110 ADOPTED: July 14, 1987 AMENDED: a) Las Palmas Park/Pool- Recreation Department b) Library -Public Works Department c) Civic Center -Public Works Department d) Police Department -Public Works Department e) Fire Department (Stations #15 and #10)- Fire Department f) Kimball Bowl -Public Works Department g) Las Palmas Snack Bar- Sports Teams using fields h) Kimball Recreation Center (south side)- Parks Division 10) The Public Works Department shall assume responsibility for the display of ceremonial flags at Kimball Bowl. Related Policy References Flag Code: California State Governor Flag Code: Office of the President of the United States Prior Policy Amendments December 2, 2008 Page 3 of 3 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Utilization of City Vehicles in Non -Safety POLICY #111 Related Capacities ADOPTED: February 9, 1988 AMENDED: Purpose To establish guidelines for the utilization of city vehicles, whether static or in motion, in non -safety related capacities including parades, funerals and other events. Policy City vehicles may be made available for parades, funerals and other special events which promote the City of National City or honor its employees or residents. Requests for such use must be approved by the City Manager with the exception of those activities directly related to department operations, routine maintenance, or road testing. The City Manager shall notify the City Council when requests are approved. Related Policy References New Administrative Policy # Prior Policy Amendments January 7, 1992 Page 1 of 1 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Utilization of City Vehicles in Non -Safety POLICY #111 Related Capacities ADOPTED: February 9, 1988 AMENDED: Purpose To establish guidelines for the utilization of city vehicles, whether static or in motion, in non -safety related capacities including parades, funerals and other events. Policy City vehicles may be made available for parades, funerals and other special events which promote the City of National City or honor its employees or residents. Requests for such use must be approved by the City Manager with the exception of those activities directly related to department operations, routine maintenance, or road testing. The City Manager shall notify the City Council when requests are, approved. Related Policy References New Administrative Policy # Prior Policy Amendments January 7,1992 Page 1 of 1 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Document Reproduction POLICY #112 ADOPTED: October 17, 1989 AMENDED: Purpose To ensure that the reproduction of public records is carried out in a liuniform manner throughout all City Departments. The City Manager shall establish an administrative cedure to ensure that appropriate public documents are available to the public. The Manager sha so establish a uniform fee schedule through an Administrative Plicy Which from time time will be adjusted for inflation and other impacting fa's,, Related Policy References City Administrative Policy #3.02 "Docum Schedule". Prior Policy Amendments None ductiort Procedures and Fee Page 1 of 1 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Unauthorized Disclosure of Information POLICY #113 Revealed in Closed Sessions ADOPTED: March 12, 1996 AMENDED: Purpose To establish a policy to prevent the unauthorized disclosure of information revealed in closed sessions of the City Council, and to provide remedies in the event of any such unauthorized disclosure. Policy No person present in a closed session shall disclose, outside of the closed session, any information revealed in such closed session, without the prior authorization of a majority of the City Council. Any violation of this policy may be enforced by one of more of the following actions, as directed by a majority of the City Council: 1. Referral to the Office of the District Attorney for prosecution for violation of Government Code Section 1098. 2. Referral to the Office of the District Attorney for prosecution for violation of Government Code Section 1222. 3. Referral to the Office` of, the District Attorney for prosecution for violation of Government Code Section'30 4. Referral of a council member who has willfully disclosed confidential information in violation Government Code section 54963 to the grand jury. 5. Obtaining an injunction to prevent further unauthorized disclosure of information revealed in a closed session. 6. In the event an unauthorized disclosure is committed by a member of the City Council, that member may be censured by a majority vote of the City Council. Prior to imposing censure, the member subject to censure must first be provided 10 calendar days' notice of the City Council's intention to impose the censure, and be given an opportunity to respond to the proposed censure. 7. In the event an unauthorized disclosure is committed by a member of the City staff, that staff member may be subject to disciplinary action. Page 1 of 5 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Unauthorized Disclosure of Information POLICY #113 Revealed in Closed Sessions ADOPTED: March 12, 1996 AMENDED: This policy shall not prohibit the making of a public report of actions taken in a closed session as required by Government Code Section 54957.1. Related Policy References City Council Policy #104 Government Codes 1098, 1222, 3060, 54957.1, 54963 City Attorney Memorandum: Original Feb. 29, 1996. Revised Jan. 7, 2013 (attached) Prior Policy Amendments None Page 2 of 5 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Unauthorized Disclosure of Information Revealed in Closed Sessions POLICY #113 ADOPTED: March 12, 1996 AMENDED: __= MEMORANDUM =__ George H. Eiser, III City Attorney City of National City February 29, 1996 Revised January 7, 2013 Claudia G. Silva City Attorney City of National City PUBLIC DISCLOSURE OF INFORMATION DISCUSSED IN CLOSED SESSION: POSSIBLE REMEDIES Prohibited by the Brown Act — Improper to Disclose • A person cannot disclose information discussed in closed session without authorization of the City Council. Government Code section 54963. Remedies under Government Code section 54963 (c) Violation of this section may be addressed by the use of such remedies as are currently available by law, including, but not limited to: (1) Injunctive relief to prevent the disclosure of confidential information prohibited by this section. (2) Disciplinary action against an employee who has willfully disclosed confidential information in violation of this section. (3) Referral of a member of a legislative body who has willfully disclosed confidential information in violation of this section to the grand jury." City May Not Enact Criminal Ordinance • California Attorney General has held that a city may not adopt an ordinance making it a misdemeanor for any person present during a closed session of the city council meeting to publicly disclose the substance of any discussion properly held during the session unless authorized by the city council. (76 Ops. Cal. Atty. Gen 289 (1993)) Page 3 of 5 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Unauthorized Disclosure of Information POLICY #113 Revealed in Closed Sessions ADOPTED: March 12, 1996 AMENDED: Additional Possible State Law Violations • Any current public officer or employee who willfully and knowingly discloses for pecuniary gain, to any other person, confidential information acquired by him or her in the course of his or her official duties, or uses any such information for the purpose of pecuniary gain, is guilty ofa misdemeanor. (Government Code§1098.) • Every willful omission to perform any duty enjoined by law upon any public officer, or person holding any public trust or employment, where no special provision is made for the punishment of such delinquency, is punishable as a misdemeanor. (Government Code § 1222; Adler v. City Council of the City of Culver City (1960) 184 Cal. App. 2d 763, 7 Cal. Rptr. 805.) • An accusation in writing against any officer of district, county, or city, including any member of the governing board of personnel commission of a school district or any humane officer, for willful or corrupt misconduct in office, may be presented by the grand jury of the county for or in which the officer accused is elected or appointed. An accusation may not be presented without the concurrence of at least 12 grand jurors. (Government Code §3060.) Injunction • An injunction may be obtained to prevent future public disclosure of information discussed in closed session. (Government Code §54960; Sacramento Newspaper Guild v. Sacramento County Board of Supervisors (1968) 263 Cal. App. 2d 41, 69 Cal. Rptr. 480.) Censure • Although there is no specific statutory or case authority for censure of a city councilmcmber, one reported decision (Braun v City of Taft (1984) 154 Cal. App. 3d 332, 201 Cal. Rptr. 654 involved the censure ofa councilmember by a city council for release of city documents claimed to be confidential. The court set aside the censure action, finding that the documents released were in fact not confidential. If censure for public release of information discussed in closed session is to be imposed, the city council should have previously adopted clear, unambiguous rules of conduct which specifically authorize censure for such conduct. The individual subject to censure must also have notice and the opportunity to be heard before the censure is imposed. Under the First Amendment, censure is not appropriate for expansion of unpopular Page 4 of 5 7. CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Unauthorized Disclosure of Information POLICY #113 Revealed in Closed Sessions ADOPTED: March 12, 1996 AMENDED: views, unless their expression substantially disrupts the council meeting. (Richard v. City of Pasadena (1995) U.S. Dist. Ct. C.D. Cal.) Page 5 of 5 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Grant Review Policy POLICY # 114 ADOPTED: February 13, 2001 AMENDED: Purpose Funds from federal, state, local and private sources are important resources that need to be included in the City's financial plan. The following policy provides a framework for City-wide coordination of grant activities among departments,and an opportunity to determine the immediate and long term financial consequences of accepting funding. This policy shall cover all departments of City government. Policy I. The City Manager's Office will act as a clearinghouse for all grant applications. Any City department intending to apply for funding from federal, state, local or private source shall obtain approval from the City Manager's Office in advance of the filing of any grant application. This shall be done by submitting the Grant Application" form, which is available in the office of the City's designated Grant Coordinator. II. The City Manager's Office will review the '`Grant Application" form to ensure that proposals are coordinated with the City's existing programs. ensure that administrative, reporting and evaluation requirements are adequately addressed by the requesting department, and evaluate the immediate and long term financial consequences of the proposal. The City Manager's Office may request additional information or presentations from requesting departments. III. After reviewing the department's request, the City Manager may, at his/her discretion, decide whether to approve the solicitation of outside funding. On a periodic basis, the City Manager, or designee, will inform the City Council of any decisions approving solicitations of outside funding. On a case -by -case basis, the City Manager may also choose to refer individual grant funding requests to City Council for consideration. IV. In the event that the grant requires matching funds from the City, and the value of those matchingfunds exceeds the CityManager's signature authority, Council approval will g � be required at the time of (or prior to) acceptance of the grant award. V. For those proposals for outside funding which are allowed to go forward, the City Manager shall additionally determine at his/her discretion whether the grant or private funding request is best authored by City Staff or by other sources including professional outside grant writers engaged by the City Manager. If the decision is made to employ Page 1 of 2 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Grant Review Policy POLICY # 114 ADOPTED: February 13, 2001 AMENDED: outside grant writers, a "Letter of Authorization" will be sent from the City Manager or designee to the outside grant writer so as to begin the grant application process. The City Manager shall approve all grant applications. VI. Upon notification by a federal, state, local government, or private funding source of a grant award or intent to fund, the City depaitment responsible for administering the grant shall request a resolution approving the acceptance and appropriation of the funds be prepared and calendared for an upcoming City Council meeting. The request for resolution shall include documentation of the intent to fund as provided by the funding source. The City Council shall formally approve the acceptance of all grant and private funds. Related Policy References "Grant Application" and Grant Process Flowchart arc available from the City's Grant Coordinator Prior Policy Amendments None Page 2 of 2 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Donation of Surplus City Property and POLICY #115 Police Dept. Unclaimed Personal Property ADOPTED: June 17, 2003 AMENDED: Purpose To establish a policy for donating surplus City property, and Police Department unclaimed personal property to local, non-profit 501(c)(3) organizations, and/or other municipal agencies. Definitions • Municipal Agencies: public/government agencies, and Sister Cities, • Local Non -Profit 501(c)(3) Organizations: As defined by the IRS: non-profit 501(c)(3) organizations `must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual. In addition, it may not be an action organization, i.e., it may not attempt to influence legislation as a substantial part of its activities and it may not participate in any campaign activity for or against political candidates." Organizations are "commonly referred to as charitable organizations". In order to be considered "local", the organization must have a physical address within the City limits, and a valid National City Business License. The organization must be able to show proof of `local' and `non-profit' 501(c)(3) status. • Surplus City Property: is defined by Municipal Code 2.42 as "supplies or equipment belonging to the City which are no longer used or which have become obsolete or worn out or which are otherwise of no further use." • Police Department Unclaimed Personal Property: is defined in Municipal Code Chapter 2.44 as "goods or chattels which are no longer possessed by their lawful owner and for which demand by right has not been asserted by such lawful owner." After a specified retention period, the Police Department may release items for distribution or disposal in accordance with Code. Page 1 of 3 tDeleted: foreign or domestic CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Donation of Surplus City Property and POLICY #115 Police Dept. Unclaimed Personal Property ADOPTED: June 17, 2003 AMENDED: • "Request for Donation" form: available from the City's Intranet or the Finance Department/Purchasing Division. This form provides documentation of the agency and donation, and includes a Release of Liability. Policy The City Council may authorize the donation of surplus City property, or Police Department unclaimed personal property, to municipal agencies or local, non-profit 501(c)(3) organizations as defined above, consistent with Municipal Code section 2.42.040 (B)(4). The City Council may, also direct the City Manager to conduct a "donation event" (see below) in the event that multiple agencies are requesting the same items. Surplus City Property: Per Municipal Code Chapter 2.42, surplus City property must first be offered to all City Depauments, before it can be disposed of in any way. Only items with a value of under S 1000, may be donated. Police Department Unclaimed Personal Property: Per Municipal Code Chapter 2.44: "If after the expiration of the applicable retention period, the city manager or his/her authorized designee determines any unclaimed property in the possession of the police department is needed for public, use, such property shall be retained by the city." Once it becomes City property, the City may dispose of it in accordance to Municipal Code. Liability Issues: To reduce liability, City forces will not be involved in the loading, distribution or delivery of donated items. The recipient must provide their own labor force, loading equipment and vehicles, and they must pick the item(s) up from wherever it is being stored. The recipient must submit a signed "Donation Request" Fonn which includes a Release of Liability. Gift of Public Funds: if the non-profit 501(c)(3) is a local organization, then assisting them will also assist the National City residents they serve, and the donation will benefit the community. Page 2 of 3 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Donation of Surplus City Property and POLICY #115 Police Dept. Unclaimed Personal Property ADOPTED: June 17, 2003 AMENDED: Procedures Municipal agencies and local, non-profit 501(c)(3) organizations may request donations by submitting the "Request for Donation" form to the Finance Department/Purchasing 11 Division. The Purchasing Division will obtain City Council approval. The Finance Department/Purchasing Division will: • notify the City Council prior to sending anything to auction, to allow them the opportunity to consider donation instead • seek Council approval for all donation requests • develop a lottery system in the event that multiple agencies request the same item • coordinate the donation process and paperwork • provide details regarding the type of property that is available, upon request • upon approval by the City Council, make the property available to the requesting agency • verify local, non-profit 501(c)(3) status via physical proof, and website registries such as: www.guidestar.com • confirm valid business license for local non-profit 501(0(3) agencies • ensure completion of a "Request for Donation" form and signatures • document the donation • ensure that City property tags, and other sensitive City information (hard drives, etc) have been removed from the property • notify the Finance Department to remove applicable items from the City's Fixed Asset Inventory. Related Policy References Municipal Code Chapter 2.42 Municipal Code Chapter 2.44 IRS Code 501(c)(3) Donation Request Forms are available from the Purchasing Division of the Finance Department Prior Policy Amendments April 20, 2004 Page 3 of 3 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Donation of Surplus City Property and Police Dept. Unclaimed Personal Property POLICY #115 ADOPTED: June 17, 2003 AMENDED: Purpose To establish a policy for donating surplus City property, d Police D rtment unclaimed personal property to local, non-profit 501(c)(3) orga' ns, and/or other municipal agencies. Definitions • Municipal Agencies: public/governmen • Local Non -Profit 501(c)(3) Or 501(c)(3) organizations "must purposes set forth in section 501(c) private shareholder or individual. organization, i.e., it m of its activities and itdm political candid es." Or organizationc. er to physical a License. 501(c er Cities. a aii fined by the IRS: non-profit Aerated exclusively for exempt ne of its earnings may inure to any dition, it may not be an action not attempt to 'fluence legislation as a substantial part of pa cipate in any campaign activity for or against zatis are "commonly referred to as charitable onsidered "local", the organization must have a ity limits, and a valid National City Business ust be able to show proof of `local' and `non-profit' anize and s Ci" .. Property: is defined by Municipal Code 2.42 as "supplies or ging to the City which are no longer used or which have become orn out or which are otherwise of no further use." • Po `''<_' Department Unclaimed Personal Property: is defined in Municipal Code Chapter 2.44 as "goods or chattels which are no longer possessed by their lawful owner and for which demand by right has not been asserted by such lawful owner." After a specified retention period, the Police Department may release items for distribution or disposal in accordance with Code. Page 1 of 3 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Donation of Surplus City Property and Police Dept. Unclaimed Personal Property POLICY #115 ADOPTED: June 17, 2003 AMENDED: • "Request for Donation" form: available from the City's lntra Department/Purchasing Division. This form provides agency and donation, and includes a Release of Liability. u Policy The City Council may authorize the donation of surplu Department unclaimed personal property, to mu iWpal age 501(c)(3) organizations as defined above, 2.42.040 (B)(4). The City Council may "donation event" (see below) in the even items. ityperty, or Police ci es or local, non-profit with Municipal Code section '`lily Manager to conduct a encies are requesting the same e Finance of the Surplus City Property: Per Municipal Code ter 2.42, surplus City property must first be offered to all City De ments, beforeitcan be disposed of in any way. Only items with a value of under $10 ay be onated. Li distrib force, load equipment and vehicles, and they must pick the item(s) up from wherever it is being stored. The recipient must submit a signed "Donation Request" Form which includes a Release of Liability. Police Department Unclahn ' ' son 1"Property: Per Municipal Code Chapter 2.44: "If after the expiratiof th :hpp i le retention period, the city manager or his/her authorized desi nee c(t rmir" s any unclaimed property in the possession of the police departmen bhc use, such property shall be retained by the city." Once it become pro y, the City may dispose of it in accordance to Municipal Code. reduce liability, City forces will not be involved in the loading, or delivery of donated items. The recipient must provide their own labor Gift of Public Funds: if the non-profit 501(c)(3) is a local organization, then assisting them will also assist the National City residents they serve, and the donation will benefit the community. Page 2 of 3 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Donation of Surplus City Property and Police Dept. Unclaimed Personal Property POLICY #115 ADOPTED: June 17, 2003 AMENDED: Procedures Municipal agencies and local, non-profit 501(c)(3) organizations m y iequeslonations by submitting the "Request for Donation" form to the Finance epatment/Pusing Division. The Purchasing Division will obtain City Council approv x The Finance Department/Purchasing Division will: • notify the City Council prior to sending anything to is ioit tt allow them the opportunity to consider donation instead ,„004 • seek Council approval for all donation requ • develop a lottery system in the event that,„ u ipli 'request the same item • coordinate the donation process and : . erwo • provide details regarding the type o p ++:erty th .is dvailable, upon request • upon approval by the City Council, man the roperty available to the requesting agency • verify local, non-profit 5 )(3) status such as: www.guidestar.com • confirm valid busine • ensure completion of • document the elation • • ensure tha City p have be notif Fi , via physical proof, and website non-profit 501(c)(3) agencies Donation" form and signatures registries erty.ags, and other sensitive City information (hard drives, etc) e property cc Department to remove applicable items from the City's Fixed Relate is References Municipal de Chapter 2.42 Municipal Code Chapter 2.44 IRS Code 501(c)(3) Donation Request Forms are available from the Purchasing Division of the Finance Department Prior Policy Amendments April 20, 2004 Page 3 of 3 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Procedure for Disclosure of Ex Parte Contacts POLICY #116 ADOPTED: February 6, 2007 AMENDED: Purpose To establish a procedure, applicable to the City Council and all City boards and commissions, for the disclosure of ex parte contacts, and to require such disclosure as a matter of City policy. Background An "ex parte" contact or communication occurs when, prior to considering a matter on a public meeting agenda, a member or members of the City Council, or one of the City's boards or commissions, receive information, oral, written, or otherwise pertaining to that matter outside the public meeting. In making certain types of decisions, typically dealing with an individual or an applicant for a permit, and applying rules or laws to a specific set of facts, the decision -making body is said to be acting in a "quasi-judicial""capacity, i.e., similarly to a court. Examples of quasi-judicial proceedings are applications for conditional use permits and variances, and personnel disciplinary matters. In quasi-judicial proceedings, due process requires that the decision -maker be impartial and without bias. A personal interest or involvement in the outcome of such a matter or with any participants, which is unrelated to the merits, requires disqualification of the decision -maker. As examples, appellate courts have found impermissible bias on the part of city councilmembers in the following cases: Mennig v. City Council of the City of Culver City, (city council became personally embroiled in controversy over police chiefs termination); Clark v. City of Hermosa Beach, (court held that a councilmember's history of personalanimosity to the applicants made him "not a disinterested, unbiased decision - maker"). Considerations of due process in quasi-judicial proceedings also require that the decision not be made based upon information received outside of the administrative hearing. This concept is often referred to as the prohibition against ex parte contacts. For example, in Safeway Stores v. City of Burlingame, the court held that opponents of a proposed parking district did not receive a fair hearing where members of a city council held conversations with affected property owners outside the hearing and made trips to the area for the express purpose of making determinations of disputed facts. Similarly, in Jeffrey v. City of Salinas, a councilman talked with property owners concerning the Page 1 of 2 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Procedure for Disclosure of Ex Parte Contacts POLICY #116 ADOPTED: February 6, 2007 AMENDED: advantages of a parking district and made a personal visit to the area. The court concluded that the councilman's vote should not be counted. Fortunately, in the event an ex parte contact occurs, disqualification of the official making the contact can be avoided and "cured" by disclosure of the contact at the time of the public hearing. (Jeffrey, v. City of Salinas). Therefore, if an ex parte contact occurs, it is of the utmost importance that the contact be disclosed.'' Policy 1. Members of the City Council and of the City's boards and commissions shall keep a written record of all ex parte contacts, as that term is explained in this Policy. 2. At the time an agenda item is called, and prior to any discussion of the item, any member of the City Council or of a board or commission who has received an ex parte contact pertaining to that item shall disclose the occurrence of that ex parte contact on the public record. 3. City staff shall endeavor to inform all persons intending to appear before the City Council or any ofthe City's boards or commissions of this Policy. 4. Under no circumstances shall a person make ex parte contacts with a majority of the members of the City Council or of the City's boards or commissions in order to develop a consensus or a collective concurrence as to an item to be considered and/or acted upon by the City Council, board or commission. Such conduct is violative of the Ralph M. Brown Act. Related Policy References None Prior Policy Amendments None Page 2 of 2 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Distribution and Reporting of Tickets and POLICY #117 Passes Distributed to, or at the behest of, a City Official ADOPTED: April 19, 2011 AMENDED: Background The City strives to provide impartial and high quality services to its residents, businesses and visitors. The receipt by City officials of gifts or other items of value can be perceived as attempts to influence City operations and the City wishes to avoid any appearance of impropriety or favoritism. Additionally, however, City official attendance at public events is necessary to achieve the goals of governance, both to promote the policies of the City and to maintain close contact with the residents and interests groups, within the City. Purpose The purpose of this Policy is to ensure that tickets and passes provided to and distributed by the City to, or at the behest oa City official are in furtherance of a governmental and/or public purpose as required under Section 18944.1 of Title 2, Division 6 of the California Code of Regulations. This policy is subject to all applicable California Fair Political Practices Commission (FPPC) regulations, as well as the Political Reform Act. Nothing in this Policy is intended to alter,amend, or otherwise affect the obligations of City officials under the Political Reform Act and its implementing regulations or the City of National City's Conflict of Interest Code. Organizations Affected The City of National City, the Community Development Commission of the City of National City. (CDC), and the Successor Agency to the Community Development Commission as the National City Redevelopment Agency (SA). All referenceswithin this Policy to "City" shall also apply to the CDC and the SA. 1.0 References a. Title 2, Division 6 of the California Code of Regulations, Sections 181000, et seq. b. California Political Reform Act (Government Code Sections 81000, et seq.) and implementing regulations. (Title 2, Division 6 of the California Code of Regulations). Page 1 of 8 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Distribution and Reporting of Tickets and POLICY #117 Passes Distributed to, or at the behest of, a City Official ADOPTED: April 19, 2011 AMENDED: c. National City Conflict of interest Code. d. Government Code Section 82048 e. California Code of Regulations Sections 18944.1 and 18701. 2.0 Policy 2.1 This Policy applies to tickets and passes that provide admission to a facility, event, show, or performance for an entertainment, amusement, recreational, or similar purpose, and are: a. gratuitously provided to the City by an outside source; or b. acquired by the City by purchase; or c. acquired by the City pursuant to the terms of a contract for use of public property; or acquired by City because the City controls the event. 2.2 This Policy shall only apply to the City's distribution of tickets/passes to, or at the behest of, a City official. This Policy does not apply to, any other item of value provided to the City or any City official, regardless of whether received gratuitously or for which consideration is provided. This includes food, beverages or gifts provided to a City official at an event that is not included in the fair market value of the ticket. 3.0 Definitions Unless otherwise expressly provided herein, words and terms used in the Policy shall have the same meaning as in the California Political Reform Act of 1974 (Government Code Sections 81000 et seq., as amended from time to time) and the related FPPC Regulations (Title 2, Division 6 of the California Code of Regulations, Sections 18100 et seq., as amended from time to time). Page 2 of 8 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Distribution and Reporting of Tickets and POLICY #117 Passes Distributed to, or at the behest of, a City Official ADOPTED: April 19, 2011 AMENDED: 3.1 "City" or "City of National City" means and includes the City of National City, the Community Development Commission of the City of National City, the Successor Agency to the Community Development Commission as the National City Redevelopment Agency (SA) and any other affiliated agency created oractivated by the National City City Council, and any commission, committee, board or department thereof 3.2 "City official" means every member, officer, employee, or consultant of the City of National City as defined in Government Code 82048 and FPPC Regulation 18701, who must file a Statement of Economic Interests. 3.3 "FPPC" means the California Fair Political Practices Commission. 3.4 "Immediate Family" means an individual's spouse and dependent children. 3.5 "Policy" means City Policy which governs the distribution, use and reporting of tickets and passes controlled by the City. 3.6 "Ticket" means any ticket or pass that grants admission privileges to a facility, event, show, or performance for an entertainment. amusement, recreations, or similar purpose. 4.0 General Provisions 4.1 No Right to Tickets: The distribution of Tickets pursuant to this Policy is a privilege extended by the City and not the right of any person to whom the privilege may from time to time be extended. 4.2 Limitation on Transfer of Tickets: Tickets distributed to a City official pursuant to this Policy shall not be transferred to any other Page 3 of 8 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Distribution and Reporting of Tickets and POLICY #117 Passes Distributed to, or at the behest of, a City Official ADOPTED: April 19, 2011 AMENDED: person, except to members of the City official's immediate family solely for their personal use. 4.3 Prohibition Against Sale of or Receiving Reimbursement for Tickets: No person who receives a Ticket pursuant to this Policy shall sell, receive reimbursement for, or receive any other consideration in exchange for the Ticket. 4.4 Implementation of Policy: The City Manager in his/her sole discretion shall have the authority to determine whether the City should accept or decline Tickets offered to the City and to distribute Tickets as he/she deems appropriate, provided such action conforms with this Policy. 4.5 Designation of Agency Head: The City Manager shall be the "Agency Head" for purposes of implementing the provisions of this Policy. The City Manager shall promptly report all Tickets distributed pursuant to this Policy to the City Clerk, who shall be responsible for posting disclosure fonn(s) provided by the FPPC on the City's website in compliance with FPPC regulations and Section 6.2 of this Policy. .6 No Earmarking of Tickets: No Ticket gratuitously provided to the City by an outside source shall be earmarked by the original source for distribution to a particular City official. 4.7 Valuation of Tickets: The City Manager shall determine the face value of all Tickets distributed by the City pursuant to this Policy. 5.0 Distribution of Tickets 5.1 The distribution of the Ticket(s) to, or at the behest of, a City official accomplishes a governmental and/or public purpose including, but not limited to, any of the following: Page 4 of 8 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Distribution and Reporting of Tickets and POLICY #117 Passes Distributed to, or at the behest of, a City Official ADOPTED: April 19, 2011 AMENDED: a. The performance of a ceremonial role or function by a City official on behalf of the City at an event. b. The official duties of the City official require his or her attendance at the event. c. Promotion of intergovernmental relations and/or cooperation with other governmental agencies, including but not limited to, attendance at an event with or by elected or appointed public officials from other jurisdictions, their staff members and their guests. d. Promotion of City resources and/or facilities available to National City residents. e. Promotion of City initiated, sponsored or supported community programs or events. f Promoting, supporting and/or showing appreciation for programs or services rendered by charitable and non-profit organizations benefiting National City residents. g. Promotion of business activity, development, and/or redevelopment within the City. h. Promotion of City tourism. Increasing public awareness of the various recreational, cultural, and educational venues and facilities available to the public within the City. Attracting and/or rewarding volunteer public service. k. Encouraging or rewarding significant academic, athletic, or public service achievements by National City students, residents or businesses. Page 5 of 8 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Distribution and Reporting of Tickets and POLICY #117 Passes Distributed to, or at the behest of, a City Official ADOPTED: April 19, 2011 AMENDED: 1. Attracting and retaining City employees. m. Recognizing or rewarding meritorious service by City employees. n. Promoting enhanced City employee performance or morale. o. Recognizing contributions made to the City by City officials who are leaving the City's service. 5.2 When a City official treats the Ticket as income consistent with applicable state and federal income tax laws, the distribution of the ticket to that official shall be disclosed in accordance with Section 6.2 of this Policy. 6.0 Disclosure Requirements_ 6.1 This policy' shall be permanently posted on the City's website in a prominent fashion. 6.2 Tickets distributed pursuant to this Policy shall be disclosed on a form provided by the FPPC (Form 802), and posted on the City's website in a prominent fashion within thirty (30) days from the date Tickets are received by, or distributed at the behest of, a City official. Form 802 shall remain on the City's website for a minimum of two (2) years from the date of posting. The original Form 802 shall be retained in the Office of the City Clerk for a four (4) year period. The disclosure from shall include the following information: a. The name of the recipient, except that if the recipient is an organization other than the City, the City may post the name, address, description of the organization and number of ticket provided to the organization in lieu of posting the names of each recipient; b. A description of the event; Page 6 of 8 • w g. CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Distribution and Reporting of Tickets and Passes Distributed to, or at the behest of, a City Official POLICY #117 ADOPTED: April 19, 2011 AMENDED: c. The date of the event; d. The face value of the Ticket; e. The number of Tickets provided to each person. f. if the Ticket was distributed at the behest of a City official, the name of the City official who made the behest; and A description of the public purpose(s) furthered by the Ticket distribution or, alternatively, that the City official is treating the Ticket as income. 6.3 Tickets distributed by the City for which the City receives reimbursement from the City official shall not be subject to the disclosure provisions of Section 6.2 7.0 Exceptions 7.1 A Ticket to a non-profit fundraising dinner is generally treated as a gift to the individual under FPPC Regulation 18946.4. This Policy would not apply because the Ticket is not for admission to an event or facility "for an entertainment, amusement, recreational or similar purpose.'' 1 he Ticket is reportable on the official's Statement of Economic Interests. 7.2;;; Where admission to a luncheon, dinner, or reception is not provided by a Ticket, but by invitation, this Policy does not apply. The value of the admission is reportable on the official's Statement of Economic Interests, unless the admission is provided by the City to the official who is attending the event as part of his/her official duties, in which case the admission is not reportable by the individual, but by the City under FPPC Regulation 18944.2. Page 7 of 8 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Distribution and Reporting of Tickets and Passes Distributed to, or at the behest of, a City Official ADOPTED: April 19, 2011 AMENDED: POLICY #117 Related Policy References See Section 1.0 above Prior Policy Amendments none Page 8 of 8 CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: October 8, 2013 AGENDA ITEM NO. j2' ITEM TITLE: City Council review and discussion of proposed Policy updates to the City Council Policy Manual (Chapters 200-500) PREPARED BY: Leslie Deese, City Manager 619-336-4240 DEPARTMENT: City Manager/City Attorney PHONE: Claudia, Silva, City Attorney, 619-336-4220 APPROVED BY: EXPLANATION: See attached FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: N/A, ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Review proposed policy revisions for Chapters 200-500. A supporting Resolution will be brought forward to Council at a subsequent Council meeting for adoption of said chapters. BOARD / COMMISSION RECOMMENDATION: N/A ATTACHMENTS: 1) Staff Report 2) Proposed Policies (See staff report) Background: The City Council Policy Manual is comprised of 52 policy sections covering ten areas: Chapter 100 — Administration and Policy Management Chapter 200 - Financial Services Chapter 300 — Legal and Legislative Services Chapter 400 — Municipal Planning and Development Chapter 500 — Public Works Chapter 600 — Personnel Services Chapter 700 — Traffic and Public Safety Chapter 800 — Public Service Facilities Chapter 900 — Real Estate and Public Property Chapter 1000 — Risk Management The Policy Manual is a comprehensive document that has 52 policies that vary in complexity and length. Some policies are one page and as simple as calling a special meeting. Others, such as the City Council's policy on Investments, are quite lengthy and technical. In the past, the City Council has addressed various policies on an as - needed basis. On April 2, 2013 at its regular meeting, the City Council considered the item and requested a workshop be scheduled to review the proposed Chapter 100 policy revisions. The City Council met at a special workshop on June 11, 2013 to review and comment on these policies. A second workshop was scheduled for October 8 to review the final drafts of Chapter 100 as well as first drafts of Chapters 200-500. In addition, Council directed staff to bring back a draft policy establishing meetings between the Mayor and Vice Mayor. As discussed in previous staff reports, new policies will be brought forward to a future Council meeting once remaining policies chapters have been reviewed and approved by the Council. Discussion: Per Policy 101, the City Council Policy Manual should be reviewed on an annual basis, and updated as necessary. In an effort to bring the policies up to date, the entire manual is being reviewed, one chapter at a time, with proposed changes presented for Council review and approval. The information before you includes the final drafts of Chapter 100 policies, a resolution adopting said policies; and the first drafts of Chapter 200-500 policies. Subsequent chapters, and any new policies, will be brought forward to future Council meetings. To ensure the Council had sufficient time to review the proposed changes to the policies, the following documents were distributed on September 24, 2013: Chapter 100 (with yellow inserts between each policy) • A list of significant changes made at the June 13, 2013 Council workshop • A copy with changes identified (where applicable) • Final draft for Council review and approval (watermarked "Final Draft") Chapters 200-500 (with blue inserts between each policy) • A list of significant changes proposed by staff • The original/existing policy (watermarked "Original") • A draft with proposed changes identified (no watermark). Additions are underlined, deletions appear in right margin. • A final draft that incorporates proposed changes for Council review/approval (watermarked "Draft") • Note: We are still working on a couple of polices in the section (as noted in the Significant Changes memo). Due to the amount of rework and research needed on these policies, we did not want to delay Council's review of the other policies. Said policies will be brought back at a future meeting. Also attached, per Council's request, is a set of "Council Policy Review Forms" that may be used to help facilitate Council's thoughts/questions on each policy that Council may be articulating at the workshop. After Council's review and preliminary approval, supporting Resolution(s) will be brought forward to Council at a subsequent meeting for final adoption. Once all the chapters have been adopted, the Policy Manual will be posted to the City's website. Summary of Recommended Changes to City Council Policy Manual Chapters 200-500 Chapter 200 Policy #201: Maintenance of Reserve Funds • Limits changed for Liability Insurance Reserve • Limits changed for Workers Compensation Reserve • Limits changed for Debt Service Reserve Policy #202: Contributions • Delete Policy: the City no longer provides "donations" to outside agencies Policy #203: Investments • Changed references of `governing body' to 'City Council' • Changed 'Monthly' reporting to 'Quarterly', and changed reporting requirements (Section XII) • Updated list of Authorized Personnel Policy #204: Donation Acceptance • Elaborated on #6 under Policy section. Donations may not be conditioned on continuing funding • Elaborated on #10 under Policy section: Monetary donations shall be submitted to the Finance Dept. Recipient departments must notify Finance Department of all donations. • Added Related Policy References Policy #205: lntrabudget Adjustment Requests (IBARS) • Clarification of proper use of 1BAR form • For accounts within the control of a Council member, the 1BAR form shall also be signed by the Mayor • Added Related Policy References Chapter 300 Chapter #301: Legislative and Judicial Platform • Added Related Policy References Chapter 400 Chapter #401: Environmental Guidelines/CEQA • Recommended changes will be distributed at later date Chapter #402: Procedures and Requirements for Development Agreements • Renumbered all sections • Eliminated reference to Development Services Director, replaced with City Manager or designee Page 1 of 2 • Added Related Policy References Chapter 500 Chapter #501: Sewer Stoppage • Delete Policy: City staff will respond in accordance with existing Sanitary Sewer Overflow Emergency Response Plan (SSOERP) which is part of Sewer System Master Plan (SSMP) Chapter #502: Professional Service Change Order • Recommended changes will be submitted at a later date Chapter #503: Underground Conversion • Delete Policy: City staff will refer to Municipal Code Chapter 13.08 (subsections 060-210), and Ordinance #1414 instead Chapter #504: Mile of Cars Banners • Policy on hold for now Chapter #505: Street Banner Program • Policy on hold for now Page 2 of 2 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Maintenance of Reserve Funds POLICY #201 ADOPTED: June 26, 1985 AMENDED: March 12, 2002 Purpose The City will establish reserves to strengthen its ability to withstand unexpected financial emergencies such as may result from national disasters, revenue shortfalls, or unanticipated expenditures of a non -recurring nature and to accumulate funds for large- scale purchases. Policy The reserve funds will be maintained in the appropriate funds at the following levels: • CONTINGENCY RESERVE 1. General Fund: The City Manager is charged with the responsibility of maintaining an accumulating General Fund Contingency Reserve at a minimum target range equal to between 25% and 50% of a single year's General Fund operating expenditures. The actual amount of the General Fund Contingency Reserve shall be determined each year by the City Manager as part of the budgeting process and shall be annually reported to the City Council as part of the CAFR. Expenditures from the General Fund Contingency Reserve require City Council approval. 2. Gas Tax Fund: an amount equal to a minimum level of five percent of the estimated revenue. 3. Sewer Service Fund: anannunt equal to a minimum level of five percent of the estimated revenue. • LIABILITY INSURANCE RESERVE: An amount equal to nine times the self - insured retention required by the City's liability insurance policy. • WORKERS COMPENSATION RESERVE: An amount equal to the incurred expenses remaining unpaid for all open Workers Compensation claims. • DEBT SERVICE RESERVE: An amount equal to one years' debt service requirement of all long-term obligations. • EQUIPMENT REPLACEMENT RESERVE: An amount equal to the accumulated depreciation of the replacement value of the motor vehicle fleet. Related Policy References None Page 1ofl CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Maintenance of Reserve Funds POLICY #201, ,ADOPTED: June 26, 1985 AMENDED: , Purpose The City will establish reserves to strengthen its ability to withstand unexpected financial emergencies such as may result from national disasters, revenue shortfalls, or unanticipated expenditures of a non -recurring nature and to accumulate funds for large- scale purchases. Policy The reserve funds will be maintained in the appropriate funds at the following levels: Contingency Reserve • General Fund: The City Manager is charged with the responsibility of maintaining an accumulating General Fund Contingency Reserve at a minimum target range equal to between 25% and 50% of a single year's General Fund operating expenditures. The actual amount of the General Fund Contingency Reserve shall be determined each year by the City Manager as part of the budgeting process and shall be annually reported to the City Council as part of the Comprehensive Annual Financial Report (CAFR). Expenditures from the General Fund Contingency Reserve require City Council approval. • Gas Tax Fund: an amount equal to a minimum level of five percent (5%) of the - estimated revenue. • Sewer Service Fund: an amount equal to a minimum level of five percent (5%) of' the estimated revenue. liability Insurance Reserve: The City Manager is charged with the responsibility_ of-, maintaining an accumulating Liability Insurance Reserve at an amount no less than 75%, to 85nio of the Confidence Level of Adequacy as established annually by the City's actuary., Workers Compensation Reserve: The City Manager is charged with the responsibility of- maintaining an accumulating Liability Insurance Reserve at an amount equal to between 75% and 85% of the Confidence Level of Adequacy as established annually by the Citv's actuary., pebt Service Reserve: An amount equal to the total required by_applicable indenture(s)4 or other agreement(s), but in no case less than one years' debt service requirement of all long-term obligations. Page 1 of 2 Deleted: ¶ Deleted: 11 ¶ { Deleted: March 12, 2002 Formatted: Font: Not Bold, Underline 'I Formatted: Bullets and Numbering f Deleted: 11 { Formatted: Indent: Left: 0.25" ( Formatted: Bullets and Numbering 1 (Formatted: Bullets and Numbering J Formatted: Font: Not Bold, Underline ( Formatted: Bullets and Numbering (—Formatted: Underline /l Deleted: equal to between l Deleted: and Deleted: An amount equal to nine times the self -insured retention required by the City's liability insurance policy l Deleted: Formatted: Font: Not Bold, Underline Formatted: Bullets and Numbering Deleted: An amount equal to the incurred expenses remaining unpaid for all open Workers Compensation claims. [Formatted: Font: Not Bold, Underline { Formatted: Bullets and Numbering .Xquipment Replacement Reserve: An amount equal to the accumulated depreciation of - the replacement value of the motor vehicle fleet. Related Policy References ,None rFormatted: Font: Not Bold, Underline IFormatted: Bullets and Numbering J Deleted: 11 ,Prior Policy Amendments f Formatted: Font: Bold, Underline March 12, 2002 Page 2 of 2 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Maintenance of Reserve Funds POLICY #201 ADOPTED: June 26, 1985 AMENDED: Purpose The City will establish reserves to strengthen its ability to withstand unexpected financial emergencies such as may result from national disasters, revenue shortfalls, or unanticipated expenditures of a non -recurring nature and to accumulate funds for large- scale purchases. Policy The reserve funds will be maintained in the appropriate funds at the following levels: Contingency Reserve • General Fund: The City Manager is charged with the responsibility of maintaining an accumulating General Fund Contingency Reserve ata minimum target range equal to between 25% and 50% of a single year's General Fund operating expenditures. The actual amount of theGeneral Fund Contingency Reserve shall be determined each year by the City Manager as part of the budgeting process and shall be annually reported to the City Council as part of the Comprehensive Annual Financial Report (CAFR). Expenditures from the General Fund Contingency Reserve require City Council approval. • pas Tax Fund: an amount equal to a minimum level of five percent (5%) of the estimated revenue.: • Sewer Service Fund:' an amount equal to a minimum level of five percent (5%) of the estimated revenue. Liability Insurance Reserve: The City Manager is charged with the responsibility of maintaining an accumulating Liability Insurance Reserve at an amount no less than 75% to 85% of the Confidence Level of Adequacy as established annually by the City's actuary. Workers Compensation Reserve: The City Manager is charged with the responsibility of maintaining an accumulating Liability Insurance Reserve at an amount equal to between 75% and 85% of the Confidence Level of Adequacy as established annually by the City's actuary. Page 1 of 2 TITLE: Maintenance of Reserve Funds POLICY #201 ADOPTED: June 26, 1985 AMENDED: Debt Service Reserve: An amount equal to the total required by applicable indenture(s) or other agreement(s), but in no case less than one years' debt service requirement of all long-term obligations. Equipment Replacement Reserve: An amount equal to the accumulated depreciation of the replacement value of the motor vehicle fleet. Related Policy References None Prior Policy Amendments March 12, 2002 Page 2 of 2 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Contributions POLICY #202 ADOPTED: July 14, 1987 AMENDED: June 23, 1992 Purpose To establish a uniform method of dealing with the numerous requests from non-profit organizations and community groups for financial assistance or contributions. Policy 1. A limit of one $250 contribution per fiscal year per organization has been established. 2. Additional contributions per fiscal year may be approved by separate Council action for certain school related subgroups or clubs which have as their purpose, support of a particular school program or function. These requests, if approved, shall also be limited to one $250 contribution per school related subgroup or club per fiscal year. The total cumulative contribution related to a specific school including all school related subgroups or clubs supporting that school's programs or functions shall not exceed $1,500 per fiscal year, including the initial contribution and all subsequent contributions. 3. No contributions will be approved for individuals not associated with a group as defined under Item 5 below: 4. All requests for contributions shall be made in writing and with the exception of requests covered under Item 6 below, all requests shall be placed upon the City Council agenda for consideration. 5. ;Requests for contributions from groups shall not be approved unless they are citizens of National City and the purpose of, or reason for assistance, serves a specific, tangible benefit to the City of National City. 6. In those cases where a request is received which does not meet the criteria established by this policy, the City Manager is authorized to so advise the requesting party by letter and to provide copy of the letter to the City Council for information. Related Policy References None Page 1 of 1 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Contributions POLICY #202 ADOPTED: July 14, 1987 AMENDED: June 23, 1992 Page 1 of 1 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Investments POLICY #203 ADOPTED: October 23, 1990 AMENDED/REVISED: January 10, 2012 I. INTRODUCTION The City of National City's investment program will conform with federal, state, and other legal requirements, including California Government Code Sections 16429.1- 16429.4, 53600-53609 and 53630-53686. The following investment policy addresses the methods, procedures and practices which must be exercised to ensure effective and judicious fiscal and investment management of the City's funds. It is the policy of the City to invest public funds in a manner that will provide a market rate of return, given its requirements for preserving principal and meeting the daily cash flow demands of the City. All investments will comply with this Investment Policy and governing laws. This Investment Policy was endorsed and adopted by the City's governing body and is effective as of the 10th day of January, 2012. This Investment Policy replaces any previous Investment Policy or Investment Procedures of the City. II. SCOPE This Investment Policy applies to all the City's financial assets and investment activities with the following exceptions: A. Proceeds of debt issuance shall be invested in accordance with the City's general investment philosophy as set forth in this policy; however, such proceeds are invested in accordance with permitted investment provisions of their specific bond indentures. Pooling of Funds: Except for cash in certain restricted and special funds, the City will consolidate cash and reserve balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles. Page 1of17 1II. GENERAL OBJECTIVES The overriding objectives of the investment program are to preserve principal, provide sufficient liquidity, and manage investment risks. 1. Safety: Safety of principal is the foremost objective of the investment program. Investments will be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk. 2. Liquidity: The investment portfolio will remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. 3. Return: The investment portfolio will be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk, constraints for safety and liquidity needs. IV. PRUDENCE, INDEMNIFICATION AND ETHICS A. Prudent Investor Standard: Management of the City's investments is governed by the Prudent Investor Standard as set forth in the California Government Code 53600.3: "...all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the City, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the City. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law." B. Indemnification: The Finance Director or City Manager designee hereinafter designated as Financial Services Officer and other authorized persons responsible for managing City funds, acting in accordance with written procedures and the Investment Policy and exercising due diligence, will be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported within 30 days and appropriate action is taken to control adverse developments. Page 2of17 C. Ethics: Officers and employees involved in the investment process will refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. V. DELEGATION OF AUTHORITY A. Authority to manage the City's investment program is derived from California Government Code Sections 53600 et seq.. The governing body is responsible for the City's cash management, including the administration of this Investment Policy. Management responsibility for the cash management of City funds is hereby delegated to the Finance Director and/or Financial Services Officer. The Finance Director and/or Financial Services Officer will be responsible for all transactions undertaken and will establish a system of procedures and controls to regulate the activities of subordinate employees. B. The City may engage the services of one or more external investment managers to assist in the management of the City s investment portfolio in a manner consistent with the City's objectives. Such external managers may be granted discretion to purchase and sell investment securities in accordance with this Investment Policy. Such managers must be registered under the Investment Advisers Act of 1940. VI. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS A list will be maintained of financial institutions and depositories authorized to provide investment services. In addition, a list will be maintained of approved security broker/dealers selected b y`conducting a process of due diligence described in the investmentprocedures Manual. These may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15C3-1 (uniform net capital rule), A. The City Finance Director and/or Financial Services Officer will determine which financial institutions are authorized to provide investment services to the City. Institutions eligible to transact investment business with the City include: 1. Primary government dealers as designated by the Federal Reserve Bank; 2. Nationally or state -chartered banks; 3. The Federal Reserve Bank; and, 4. Direct issuers of securities eligible for purchase. B. Selection of financial institutions and broker/dealers authorized to engage in transactions with the City will be at the sole discretion of the City. Page 3 of 17 C. All financial institutions which desire to become qualified bidders for investment transactions (and which are not dealing only with the investment adviser) must supply the Finance Director and/or Financial Services Officer with a statement certifying that the institution has reviewed the California Government Code Section 53600 et seq. and the City's Investment Policy. D. Selection of broker/dealers used by an external investment adviser retained by the City will be at the sole discretion of the investment adviser. E. Public deposits will be made only in qualified public depositories as established by State law. Deposits will be insured by the Federal Deposit Insurance Corporation, or, to the extent the amount exceeds the insured maximum, will be collateralized in accordance with State law. VII. DELIVERY, SAFEKEEPING AND CUSTODY, AND COMPETITIVE TRANSACTIONS A. Delivery -versus -payment: Settlement of all investment transactions will be completed using standard delivery -vs. -payment procedures. B. Third party safekeeping: To protect against potential losses by collapse of individual securities dealers, and to enhance access to securities, interest payments and maturity proceeds, all securities owned by the City will be held in safekeeping by a third party bank custodian, acting as agent for the City under the terms of a custody agreement executed by the bank and the City. C. Competitive transactions: All investment transactions will be conducted on a competitive basis which can be executed through a bidding process involving at least three separate brokers/financial institutions or through the use of a nationally recognized trading platform. VIII. AUTHORIZED AND SUITABLE INVESTMENTS All investments will be made in accordance with Sections 53600 et seq. of the Government Code of California and as described within this Investment Policy. Permitted investments under this policy will include: 1. Municipal Bonds. These include bonds of the City, the state of California, any other state, and any local Agency within the state of California. The bonds will be registered in the name of the City or held under a custodial agreement at a bank. The bonds shall be rated at the time of purchase within the 4 highest general classifications established by a rating service of nationally recognized expertise in rating bonds of states and their political subdivisions. a. No more than 5% per issuer. Page 4 of 17 2. U.S. Treasury and other government obligations for which the full faith and credit of the United States are pledged for the payment of principal and interest. There are no limits on the dollar amount or percentage that the City may invest in U.S. Treasuries. 3. Federal Agency or United States government -sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government -sponsored enterprises. There are no limits on the dollar amount or percentage that the City may invest in government -sponsored enterprises. 4. Banker's acceptances provided that: a. They are issued by institutions with short term debt obligations rated -Al- or higher, or the equivalent, by at least two nationally recognized statistical -rating organization (NRSRO); and have long-term debt obligations which are rated "A" or higher by at least two nationally recognized statistical rating organization; b. The maturity does not exceed 180 days; and, c. No more than 40% of the total portfolio may be invested in banker's acceptances and no more than 5% per issuer. 5. Federally insured time deposits (Non-negotiable certificates of deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that: a. The amount per institution is limited to the maximum covered under federal insurance. and, b. The maturity of such deposits does not exceed 5 years. Certificate of Deposit Placement Service (CDARS) a. No more than 30% of the total portfolio may be invested in a combination of certificates of deposit including CDARS. b. The maturity of CDARS deposits does not exceed 5 years. 7. Negotiable certificates of deposit (NCDs) provided that: a. They are issued by institutions which have long-term obligations which are rated "A" or higher by at least two nationally recognized statistical rating organizations; and/or have short term debt obligations rated "Al" or higher, or the equivalent, by at least two nationally recognized statistical rating organizations; Page 5 of 17 b. The maturity does not exceed 5 years; and, c. No more than 30% of the total portfolio may be invested in NCDs and no more than 5% per issuer. 8. Commercial paper provided that: a. The maturity does not exceed 270 days from the date of purchase; b. The issuer is a corporation organized and operating in the United States with assets in excess of $500 million; c. They are issued by institutions whose short term obligations are rated "Al" or higher, or the equivalent, by at least two nationally recognized statistical rating organization; and whose long-term obligations are rated "A" or higher by at least two nationally recognized statistical rating organization; and, d. No more than 25% of the portfolio is invested in commercial paper and no more than 5% per issuer. 9. State of California Local Agency Investment Fund (LAIF), provided that: a. The City may invest up to the maximum permitted amount in LAIF; and, b. LAIF's investments in instruments prohibited by or not specified in the City's policy do not exclude it from the City's list of allowable investments, provided that the fund's reports allow the Finance Director or Financial Services Officer to adequately judge the risk inherent in LAIF's portfolio. 10. Local government investment pools. a. San Diego County Investment Pool 11 Corporate medium term notes (MTNs), provided that: a. Such notes have a maximum maturity of 5 years; b. Are issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States; c. Are rated "A" category or better by at least two nationally recognized statistical rating organization; and, Page 6of17 d. Holdings of medium -term notes may not exceed 30% of the portfolio and no more than 5% per issuer. 12. Mortgage pass -through securities and asset -backed securities, provided that such securities: a. have a maximum stated final maturity of 5 years; b. be issued by an issuer having an "A" or higher rating for the issuer's debt as provided by at least two nationally recognized statistical rating organization; c. be rated in a rating category of "AA" or its equivalent or, better by at least two nationally recognized statistical rating organization. d. Purchase of securities authorized by this subdivision may not exceed 20% of the portfolio. 13. Money market mutual funds that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940: a. Provided that such funds meet either of the following criteria: 1. Attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations; or, 2. Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five; years' experience investing in the securities and obligations authorized by California Government Code Section 53601 (a through j) and with assets under management in excess of $500 million. b. Purchase of securities authorized by this subdivision may not exceed 20% of the portfolio. IX. PORTFOLIO RISK MANAGEMENT A. The following are prohibited investment vehicles and practices: 1. State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options. 2. In accordance with Government Code Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest -only strips is prohibited. Pagc 7 of 17 3. Investment in any security that could result in a zero interest accrual if held to maturity is prohibited. 4. Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited. 5. Purchasing or selling securities on margin is prohibited. 6. The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited. 7. The purchase of foreign currency denominated securities is prohibited. B. Mitigating credit risk in the portfolio Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies: 1. The diversification requirements included in Section IX are designed to mitigate credit risk in the portfolio; 2. No more than 5% of the total portfolio may be invested in securities of any single issuer, other than the US Government, its agencies and enterprises; 3. The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to improve the quality, liquidity or yield of the portfolio in response to market conditions or City's risk preferences; and, 4. If securities owned by the City are downgraded by either Moody's or S&P to a level below the quality required by this Investment Policy, it will be the City's policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio. a. If a security is downgraded, the Finance Director and/or Financial Services Officer will use discretion in determining whether to sell or hold the security based on its current maturity, the economic outlook for the issuer, and other relevant factors. b. If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported monthly to the governing board. C. Mitigating market risk in the portfolio Page8of17 Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City recognizes that, over time, longer -term portfolios have the potential to achieve higher returns. On the other hand, longer - term portfolios have higher volatility of return. The City will mitigate market risk by providing adequate liquidity for short-term cash needs, and by making longer - term investments only with funds that are not needed for current cash flow purposes. The City further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City, therefore, adopts the following strategies to control and mitigate its exposure to market risk: 1. The City will maintain a minimum of three months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements; 2. The maximum percent of callable securities (does not include "make whole call" securities as defined in the Glossary) in the portfolio will be 20%; 3. The maximum stated final maturity of individual securities in the portfolio will be five years, except as otherwise stated in this policy; and, 4. The duration of the portfolio will atall times be approximately equal to the duration (typically plus or minus 20%) of a Market Benchmark Index selected by the City based on the City's investment objectives, constraints and risk tolerances. The City's current Benchmark will be documented in the investment procedures manual. X. INVESTMENT OBJECTIVES (PERFORMANCE STANDARDS AND EVALUATION) A. Overall= objective: The investment portfolio will be designed with the overall objective of obtaining a total rate of return throughout economic cycles, commensurate with investment risk constraints and cash flow needs. B. Specific objective: The investment performance objective for the portfolio will be to earn a total rate of return over a market cycle which is approximately equal to the return on the Market Benchmark Index as described in the City's investment procedures manual. XI. PROCEDURES AND INTERNAL CONTROLS A. Procedures The Finance Director and/or Financial Services Officer will establish written investment policy procedures in a separate investment procedures manual to assist investment staff Page 9 of 17 with day-to-day operations of the investment program consistent with this policy. Such procedures will include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Finance Director and/or Financial Services Officer. B. Internal Controls The Finance Director and/or Financial Services Officer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse. The internal control structure will be designed to provide reasonable assurance that thesc objectives are met. Internal controls will be described in the City's investment procedures manual. XII. REPORTING, DISCLOSURE AND PROGRAM EVALUATION A. Monthly reports Monthly investment reports will be submitted by the Finance Director and/or Financial Services Officer to the governing board. These reports will disclose, at a minimum, the following information about the risk characteristics of the City's portfolio: 1. An asset listing showing par value, cost and accurate and complete market value of each security, type of investment, issuer, and interest rate; 2. A one -page summary report that shows: a. Average maturity of the portfolio and modified duration of the portfolio; b. Maturity distribution of the portfolio; c. Average portfolio credit quality; and, d. Time -weighted total rate of return for the portfolio for the prior one month, three months, twelve months, year to date, and since inception compared to the Benchmark Index returns for the same periods; 3. A statement of compliance with Investment Policy, including a schedule of any transactions or holdings which do not comply with this policy or with the California Government Code, including a justification for their presence in the portfolio and a timetable for resolution; and, 4. A statement that the City has adequate funds to meet its cash flow requirements for the next 6 months. B. Annual reports 1. The Investment Policy will be reviewed and adopted at least annually within 120 days of the end of the fiscal year to ensure its consistency with the overall Page 10 of 17 objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends. 2. A comprehensive annual report will be presented in conjunction with the investment policy review. This report will include comparisons of the City's return to the Benchmark Index return, suggest policies and improvements that might enhance the investment program, and will include an investment plan for the coming year. C. Periodic audit The Finance Director and/or Financial Services Officer will establish a process of periodic independent review by an external expert to assure compliance with internal controls. Page 11 of 17 Appendix 1 Authorized Personnel The following positions are authorized to transact investment business and wire funds for investment purposes on behalf of the City of National City: Chris Zapata, City Manager Leslie Deese, Assistant City Manager Tina Norrdin, Financial Services Officer Page 12 of 17 Appendix II GLOSSARY OF INVESTMENT TERMS© Agencies. Shorthand market terminology for any obligation issued by a government -sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are: FDIC. The Federal Deposit Insurance Corporation provides insurance backed by the full faith and credit of the US government to certain bank deposits and debt obligations. FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds. FHLB. The Federal Home Loan Bank provides credit and ` liquidity in the housing market. FHLB issues discount notes and bonds. FHLMC. Like FHLB, the Federal Horne Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called "FreddieMac" issues discount notes, bonds and mortgage pass -through securities. FNMA. Like FHLB and FreddieMac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as "FannieMae," issues discount notes, bonds and mortgage pass -through securities. GNMA. The Government National Mortgage Association, known as "GinnieMae," issues mortgage pass -through securities, which are guaranteed by the full faith and credit of the US Government. PEFCO. The Private Export Funding corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government. TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions; of the Tennessee, Ohio and Mississippi River valleys. TVA currently issues discount notes and bonds. Asked. The price at which a seller offers to sell a security. Average life. In mortgage -related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected. Banker's acceptance. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which "accepts" the obligation to pay the investor. Benchmark. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy. Bid. The price at which a buyer offers to buy a security. Broker. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from his own position. Callable. A callable security gives the issuer the option to call it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If Page 13 of 17 interest rates decline since an issuer issues securities, it will likely call its current securities and reissue them at a lower rate of interest. Callable securities have reinvestment risk as the investor may receive its principal hack when interest rates are lower than when the investment was initially made. Certificate of Deposit (CD). A time deposit with a specific maturity evidenced by a certificate. Large denomination CDs may be marketable. Collateral. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies. Collateralized Mortgage Obligations (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities. Commercial paper. The short-term unsecured debt of corporations. Cost yield. The annual income from an investment divided by the purchase cost. Because it does not give effect to premiums and discounts which may have beenincluded in the purchase cost, it is an incomplete measure of return. Coupon. The rate of return at which intcrest is paid on a bond.' Credit risk. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer. Current yield. The annual income from an investment divided by the current market value. Since the mathematical' calculation relies on the current market value rather than the investor's cost, current yield is unrelated to the actual return the investor will earn if the security is held to maturity. Dealer. A dealer acts as a principal in security transactions, selling securities from and buying securities for his own position. Debenture. A bond secured only by the general credit of the issuer. Delivery vs. payment (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser's agent. Derivative. Any security that has principal and/or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any security which represents a component of another security which has been separated from other components (`°Stripped" coupons and principal). A derivative is also defined as a financial instrument the value of which is totally or partially derived from the value of another instrument, interest rate or index. Discount. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as T-bills and banker's acceptances, are known as discount securities. They sell at a discount from par, and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality. Diversification. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk. Duration. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a bond to changes in interest rates. (See modified duration). Page 14 of 17 Federal funds rate. The rate of interest charged by banks for short-term loans to other banks. The Federal Reserve Bank through open -market operations establishes it. Federal Open Market Committee: A committee of the Federal Reserve Board that establishes monetary policy and executes it through temporary and permanent changes to the supply of bank reserves. Haircut: The margin or difference between the actual market value of a security and the value assessed by the lending side of a transaction (i.e. a repo). Leverage. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing. Liquidity: The speed and ease with which an asset can be converted to cash. Make Whole Call. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or "made whole." Margin: The difference between the market value of a security and the loan a broker makes using that security as collateral. Market risk. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates. Market value. The price at which a security can be traded. Marking to market. The process of posting current market values for securities in a portfolio. Maturity. The final date upon which the principal of a security becomes due and payable. Medium term notes. Unsecured, investment -grade senior debt securities of major corporations which are sold in relatively small amounts either on a continuous or an intermittent basis. MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences. Modified duration. The percent change in price for a 100 basis point change in yields. Modified duration is the best single measure of a portfolio's or security's exposure to market risk. Money market. The market in which short term debt instruments (Tbills, discount notes, commercial paper and banker's acceptances) are issued and traded. Mortgage pass -through securities. A securitized participation in the interest and principal cashflows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security. Mutual fund. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund's prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds and money market instruments, as set forth in the individual fund's prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio. Premium. The difference between the par value of a bond and the cost of the bond, when the cost is above par. Prepayment speed. A measure of how quickly principal is repaid to investors in mortgage securities. Page 15 of 17 Prepayment window. The time period over which principal repayments will be received on mortgage securities at a specified prepayment speed. Primary dealer. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S. Government securities market. Prudent person (man) rule. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as "Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing. that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes." Realized yield. The change in value of the portfolio due to interest received and interest earned and realized gains and losses. It does not give effect to changes in market value on securities, which have not been sold from the portfolio. Regional dealer. A financial intermediary that buys and sells securities for the benefit of its customers without maintaining substantial inventories of securities, and that is not a primary dealer. Repurchase agreement (RP, Repo). Short teen purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller's point of view, the same transaction is a reverse repurchase agreement. Safekeeping. A service to bank customers whereby securities are held by the bank in the customer's name. Short Term. Less than one (1) year's time. Structured note. A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices. Examples include inverse floating rate notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising, and "dual index floaters," which pay interest based on the relationship between two other interest rates - for example, the yield on the ten-year Treasury note minus the Libor rate. Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements. Total rate of return. A measure of a portfolio' performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value, it includes interest earnings, realized and unrealized gains, and losses in the portfolio. U.S. Treasury obligations. Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk, and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds. Treasury bills. All securities issued with initial maturities of one year or less are issued as discounted instruments, and are called Treasury bills. The Treasury currently issues three- and six-month Tbills at regular weekly auctions. It also issues "cash management" bills as needed to smooth out cash flows. Treasury notes. All securities issued with initial maturities of two to ten years are called Treasury notes, and pay interest semi-annually. Page 16 of 17 Treasury bonds. All securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi- annually. Value. Principal plus accrued interest. Volatility. The rate at which security prices change with changes in general economic conditions or the general level of interest rates. Yield to Maturity. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost. Page 17of17 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Investments POLICY #203 ADOPTED: October 23, 1990 AMENDED,: I. INTRODUCTION The City of National City's investment program will conform with federal, state, and other legal requirements, including California Government Code Sections 16429.1- 16429.4, 53600-53609 and 53630-53686. The following investment policy addresses the methods, procedures and practices which must be exercised to ensure effective and judicious fiscal and investment management of the City's funds. It is the policy of the City to invest public funds in a manner that will provide a market rate of return, given its requirements for preserving principal and meeting the daily cash flow demands of the City. All investments will comply with this Investment Policy and governing laws. This Investment Policy replaces any previous Investment Policy or Investment Procedures of the City. II. SCOPE This Investment Policy applies to all the City's financial assets and investment activities with the following exceptions: A. Proceeds of debt issuance shall be invested in accordance with the City's general investment philosophy as set forth in this policy; however, such proceeds are invested in accordance with permitted investment provisions of their specific bond indentures. Pooling of Funds: Except for cash in certain restricted and special funds, the City will consolidate cash and reserve balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles. III. GENERAL OBJECTIVES ,The overriding objectives of the investment program are to preserve principal, provide sufficient liquidity, and manage investment risks. Page 1 of 16 (I Deleted: ¶ I Deleted: /REVISED 1) ff Deleted:.Ianuary 111, 21112 I) Deleted: This Investment Policy was endorsed and adopted by the City's governing body and is effective as of the 10' day of January, 2012. Deleted: 11 Deleted: 11 1. Safety: Safety of principal is the foremost objective of the investment program. Investments will be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk. 2. Liquidity: The investment portfolio will remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. 3. Return: The investment portfolio will be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints for safety and liquidity needs. IV. PRUDENCE, INDEMNIFICATION AND ETHICS A. Prudent Investor Standard: Management of the City's investments is governed by the Prudent Investor Standard as set forth in the California Government Code 53600.3: "...all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the City, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the City. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law." B. Indemnification: The pirector of Finance or City Manager designee hereinafter designated as Financial Services Officer and other authorized persons responsible for managing City funds, acting in accordance with written procedures and the Investment Policy and exercising due diligence, will be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported within 30 days and appropriate action is taken to control adverse developments. C. Ethics: Officers and employees involved in the investment process will refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Page 2 of 16 Deleted: Finance V. DELEGATION OF AUTHORITY A. Authority to manage the City's investment program is derived from California Government Code Sections 53600 et seq. The City Councils responsible for the Deleted: . City's cash management, including the administration of this Investment Policy. i Deleted: governing body Management responsibility for the cash management of City funds is hereby delegated to the pirector of Finance and/or Financial Services Officer. -{ Deleted: Finance The pirector of Finance and/or Financial Services Officer will be responsible for ( Deleted: Finance all transactions undertaken and will establish a system of procedures and controls to regulate the activities of subordinate employees. B. The City may engage the services of one or more external investment managers to assist in the management of the City's investment portfolio in a manner consistent with the City's objectives. Such extemal managers may be granted discretion to purchase and sell investment securities in accordance with this Investment Policy. Such managers must be registered under the Investment Advisers Act of 1940. VI. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS A list will be maintained of financial institutions and depositories authorized to provide investment services. In addition, a list will be maintained of approved security broker/dealers selected by conducting a process of due diligence described in the investment procedures manual. These may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15C3-1 (uniform net capital rule). A. The City's pirector of Finance and/or Financial Services Officer will determine which financial institutions are authorized to provide investment services to the City. Institutions eligible to transact investment business with the City include: 1. Primary government dealers as designated by the Federal Reserve Bank; 2. Nationally or state -chartered banks; 3. The Federal Reserve Bank; and, 4. Direct issuers of securities eligible for purchase. B. Selection of financial institutions and broker/dealers authorized to engage in transactions with the City will be at the sole discretion of the City. C. All financial institutions which desire to become qualified bidders for investment transactions (and which are not dealing only with the investment adviser) must supply the Director of Finance and/or Financial Services Officer with a statement Page 3 of 16 Deleted: Finance Deleted: Finance certifying that the institution has reviewed the California Government Code Section 53600 et seq. and the City's Investment Policy. D. Selection of broker/dealers used by an external investment adviser retained by the City will be at the sole discretion of the investment adviser. E. Public deposits will be made only in qualified public depositories as established by State law. Deposits will be insured by the Federal Deposit Insurance Corporation, or, to the extent the amount exceeds the insured maximum, will be collateralized in accordance with State law. VII. DELIVERY, SAFEKEEPING AND CUSTODY, AND COMPETITIVE TRANSACTIONS A. Delivery -versus -payment: Settlement of all investment transactions will be completed using standard delivery -vs. -payment procedures. B. Third -party safekeeping: To protect against potential losses by collapse of individual securities dealers, and to enhance access to securities, interest payments and maturity proceeds, all securities owned by the City will be held in safekeeping by a third party bank custodian, acting as agent for the City under the terms of a custody agreement executed by the bank and the City. C. Competitive transactions: All investment transactions will be conducted on a competitive basis which can be executed through a bidding process involving at least three separate brokers/financial institutions or through the use of a nationally recognized trading platform. VIII. AUTHORIZED AND SUITABLE INVESTMENTS All investments will be made in accordance with Sections 53600 et seq. of the Government Code of California and as described within this Investment Policy. Permitted investments under this policy will include: 1. Municipal Bonds. These include bonds of the City, the state of California, any other state, and any local Agency within the state of California. The bonds will be registered in the name of the City or held under a custodial agreement at a bank. The bonds shall be rated at the time of purchase within the 4 highest general classifications established by a rating service of nationally recognized expertise in rating bonds of states and their political subdivisions. a. No more than 5% per issuer. 2. U.S. Treasury and other government obligations for which the full faith and credit of the United States are pledged for the payment of principal and interest. There are no limits on the dollar amount or percentage that the City may invest in U.S. Treasuries. Page 4 of 16 3. Federal Agency or United States govemment-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government -sponsored enterprises. There are no limits on the dollar amount or percentage that the City may invest in government -sponsored enterprises. 4. Banker's acceptances provided that: a. They are issued by institutions with short term debt obligations rated "A 1" or higher, or the equivalent, by at least two nationally recognized statistical -rating organization (NRSRO); and have long-term debt obligations which are rated "A" or higher by at least two nationally recognized statistical rating organization; b. The maturity does not exceed 180 days; and, c. No more than 40% of the total portfolio may be invested in banker's acceptances and no more than 5% per issuer. 5. Federally insured time deposits (Non-negotiable certificates of deposit) in state or federally chartered banks, savings and loans. or credit unions, provided that: a. The amount per institution is limited to the maximum covered under federal insurance; and, b. The maturity of such deposits does not exceed 5 years. 6. Certificate of Deposit Placement Service (CDARS) a. No more than 30% of the total portfolio may be invested in a combination of certificates of deposit including CDARS. b. The maturity of CDARS deposits does not exceed 5 years. 7. Negotiable Cgrticates of Deposit (NCDs) provided that: a. They are issued by institutions which have long-term obligations which are rated "A" or higher by at least two nationally recognized statistical rating organizations; and/or have short term debt obligations rated "Al" or higher, or the equivalent, by at least two nationally recognized statistical rating organizations; b. The maturity does not exceed 5 years; and, c. No more than 30% of the total portfolio may be invested in NCDs and no more than 5% per issuer. Page 5 of 16 fDeleted: c l Deleted: d 8. Commercial paper provided that: a. The maturity does not exceed 270 days from the date of purchase; b. The issuer is a corporation organized and operating in the United States with assets in excess of $500 million; c. They are issued by institutions whose short term obligations are rated "Al" or higher, or the equivalent, by at least two nationally recognized statistical rating organization; and whose long-term obligations are rated "A" or higher by at least two nationally recognized statistical rating organization; and, d. No more than 25% of the portfolio is invested in commercial paper and no more than 5% per issuer. 9. State of California Local Agency Investment Fund (LAIF), provided that: a. The City may invest up to the maximum permitted amount in LAIF; and, b. LAIF's investments in instruments prohibited by or not specified in the City's policy do not exclude it from the City's list of allowable investments, provided that the fund's reports allow the pirector of Finance or Financial Services Officer to adequately judge the risk inherent in LAIF's portfolio. 10. Local government investment pools. a. San Diego County Investment Pool 11. Corporate medium term notes (MTNs), provided that: a. Such notes have a maximum maturity of 5 years; b. Are issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States; c. Are rated "A" category or better by at least two nationally recognized statistical rating organization; and, d. Holdings of medium -term notes may not exceed 30% of the portfolio and no more than 5% per issuer. Page 6 of 16 Deleted: Finance 12. Mortgage pass -through securities and asset -backed securities, provided that such securities: a. have a maximum stated fmal maturity of 5 years; b. be issued by an issuer having an "A" or higher rating for the issuer's debt as provided by at least two nationally recognized statistical rating organization; c. be rated in a rating category of "AA" or its equivalent or better by at least two nationally recognized statistical rating organization. d. Purchase of securities authorized by this subdivision may not exceed 20% of the portfolio. 13. Money market mutual funds that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940, a. Provided that such funds meet either of the following criteria: 1. Attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations; or, 2. Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations authorized by California Government Code Section 53601 (a through j) and with assets under management in excess of $500 million. b. Purchase of securities authorized by this subdivision may not exceed 20% of the portfolio. IX. PORTFOLIO RISK MANAGEMENT A. The following are prohibited investment vehicles and practices: 1. State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options. 2. In accordance with Government Code Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest -only strips is prohibited. 3. Investment in any security that could result in a zero interest accrual if held to maturity is prohibited. Page 7 of 16 r Deleted: :1 �11 Formatted: Bullets and Numbering {� Formatted: Highlight 4. Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited. 5. Purchasing or selling securities on margin is prohibited. 6. The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited. 7. The purchase of foreign currency denominated securities is prohibited. B. Mitigating credit risk in the portfolio Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies: 1. The diversification requirements included in Section IX are designed to mitigate credit risk in the portfolio; 2. No more than 5% of the total portfolio may be invested in securities of any single issuer, other than the US Government, its agencies and enterprises; 3. The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to improve the quality, liquidity or yield of the portfolio in response to market conditions or City's risk preferences; and, 4. If securities owned by the City are downgraded by either Moody's or S&P to a level below the quality required by this Investment Policy, it will be the City's policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio. a. If a security is downgraded, the,, Director of Finance and/or Financial { Deleted: Finance Services Officer will use discretion in determining whether to sell or hold the security based on its current maturity, the economic outlook for the issuer, and other relevant factors. b. If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported monthly to the City Council,, C. Mitigating market risk in the portfolio Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City recognizes that, over time, longer -term portfolios have the potential to achieve higher returns. On the other hand, longer - Page 8 of 16 {Deleted: governing board term portfolios have higher volatility of return. The City will mitigate market risk by providing adequate liquidity for short-term cash needs, and by making longer - term investments only with funds that are not needed for current cash flow purposes. The City further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City, therefore, adopts the following strategies to control and mitigate its exposure to market risk: 1. The City will maintain a minimum of three months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements; 2. The maximum percent of callable securities (does not include "make whole call' securities as defined in the Glossary) in the portfolio will be 20%; 3. The maximum stated final maturity of individual securities in the portfolio will be five years, except as otherwise stated in this policy; and, 4. The duration of the portfolio will at all times be approximately equal to the duration (typically plus or minus 20%) of a Market Benchmark Index selected by the City based on the City's investment objectives, constraints and risk tolerances. The City's current Benchmark will be documented in the investment procedures manual. X. INVESTMENT OBJECTIVES (PERFORMANCE STANDARDS AND EVALUATION) A. Overall objective: The investment portfolio will be designed with the overall objective of obtaining a total rate of return throughout economic cycles, commensurate with investment risk constraints and cash flow needs. B. Specific objective: The investment performance objective for the portfolio will be to earn a total rate of return over a market cycle which is approximately equal to the return on the Market Benchmark Index as described in the City's investment procedures manual. XI. PROCEDURES AND INTERNAL CONTROLS A. Procedures The ,Director of Finance and/or Financial Services Officer will establish written investment policy procedures in a separate investment procedures manual to assist investment staff with day-to-day operations of the investment program consistent with this policy. Such procedures will include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment Page 9 of 16 Deleted: Finance transaction except as provided under the terms of this policy and the procedures established by the pirector of Finance and/or Financial Services Officer. B. Internal Controls The ,Director of Finance and/or Financial Services Officer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse. The internal control structure will be designed to provide reasonable assurance that these objectives are met. Internal controls will be described in the City's investment procedures manual. XII. REPORTING,, A. Quarterlvreports Quarterly investment reports will be submitted by the ,Director of Finance and/or , Financial Services Officer to the City Council, consistent with the requirements contained in Government Code section 53646, including but not limited to,the following information; 1. Type of investment: 2. Name of issuer and/or financial institutic ij 3. Date of purchase 4. Date of maturity 5. Current market value for all securities 6. Rate of interest 7. Purchase price of investment 8. Other data as required by the City , B. Annual reports The Investment Policy will be reviewed and adopted at least annually,to ensure itsA\, consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends. ,Related Policy References Ca. Government Code Sections: 16429.1 — 16429.4, and 53600 — 53686 Investment Advisors Act of 1940 Securities and Exchange Commission Rule #I5C3-1 Appendix I attached: "Authorized Personnel" Appendix II attached: "Glossary of Investment Terms" yrior Policy Amendments January 10, 2012 Page 10 of 16 f Deleted: Finance ,{ Deleted: Finance 1 Deleted: , DISCLOSURE AND PROGRAM EVALUATION Deleted: Monthly "Deleted: Monthly kDeleted: Finance Deleted: governing board. These reports will disclose, at a minimum, the Deleted: about the risk characteristics of the City's portfolio Deleted: An asset listing showing par value, cost and accurate and complete market value of each security, type of investment, issuer. and interest rate;ll , Deleted: A one -page summary report that shows: Formatted: Bullets and Numbering Formatted: Bullets and Numbering Deleted: 'J < y>Average maturity of the portfolio and modified duration of the portfolio;¶ < #>Maturity distribution of the portfolio;¶ <#>Average portfolio credit quality; and,ll <#>Titne-weighted total rate of return for the portfolio for the prior one month, three months, twelve months, year to date, and since inception compared to the Benchmark Index returns for the same periods;'! <#>A statement of compliance with Investment Policy, including a schedule of any transactions or holdings which do not comply with this policy or with the California Government Code, including a justification for their presence in the portfolio and a timetable for resolution; and,'i 41'11 A statement that the City has adequate funds to meet its cash flow requirements for the next 6 months. Deleted: within 120 days of the end of the fiscal year Formatted: Indent: Left: 0.5" (Formatted: Bullets and Numbering Deleted: A comprehensive annual report will be presented in conjunction with the investment policy review. This report will include comparisons of the City's return to the Benchmark Index return, suggest policies and improvements that might enhance Formatted: Font: Bold, Underline Formatted: Font: Bold, Underline Formatted: Centered Appendix I ,Authorized Personnel The following positions are authorized to transact investment business and wire funds for investment purposes on behalf of the City of National City: City Manager Director of Administrative Services ,Director of Finance ,Financial Services Officer Page 11 of 16 Deleted: Page Break 11 { Formatted: Font: 14 pt 1 Formatted: Font: 14 pt, Bold, 1 Il Underline 1 {- Deleted: Chris Zapata 1 -{ Deleted: Leslie Deese, Assistant City Manager { Formatted: Indent: First line: 0.5" J { Deleted: Tina Norrdin, { Deleted: Page Break 1 ,Appendix II Glossary of Investment Terms.© Agencies. Shorthand market terminology for any obligation issued by a government -sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are: FDIC. The Federal Deposit Insurance Corporation provides insurance backed by the full faith and credit of the US government to certain bank deposits and debt obligations. FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds. FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market. FHLB issues discount notes and bonds. FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called "FreddieMac" issues discount notes, bonds and mortgage pass -through securities. FNMA. Like FHLB and FreddieMac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as "FannieMae," issues discount notes, bonds and mortgage pass -through securities. GNMA. The Government National Mortgage Association, known as "GinnieMae," issues mortgage pass -through securities, which are guaranteed by the full faith and credit of the US Government. PEFCO. The Private Export funding corporation assists exporters. Obligations of PEFCO arc not guaranteed by the full faith and credit of the US government. TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio and Mississippi River valleys. TVA currently issues discount notes and bonds. Asked. The price at which a seller offers to sell a security. Average life. In mortgage -related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected. Banker's acceptance. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which "accepts" the obligation to pay the investor. Benchmark. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy. Bid. The price at which a buyer offers to buy a security. Broker. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from his own position. Callable. A callable security gives the issuer the option to call it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If Page 12 of 16 { Formatted: Font: 14 pt { Formatted: Font: 14 pt, Underline Deleted: LOSSARY OF INVESTMEN1'I'ERMS t Formatted: Font: 14 pt, Underline interest rates decline since an issuer issues securities, it will likely call its current securities and reissue them at a lower rate of interest. Callable securities have reinvestment risk as the investor may receive its principal back when interest rates are lower than when the investment was initially made. Certificate of Deposit (CD). A time deposit with a specific maturity evidenced by a certificate. Large denomination CDs may be marketable. Collateral. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies. Collateralized Mortgage Obligations (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities. Commercial paper. The short-term unsecured debt of corporations. Cost yield. The annual income from an investment divided by the purchase cost. Because it does not give effect to premiums and discounts which may have been included in the purchase cost, it is an incomplete measure of return. Coupon. The rate of return at which interest is paid on a bond. Credit risk. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer. Current yield. The annual income from an investment divided by the current market value. Since the mathematical calculation relies on the current market value rather than the investor's cost, current yield is unrelated to the actual return the investor will earn if the security is held to maturity. Dealer. A dealer acts as a principal in security transactions, selling securities from and buying securities for his own position. Debenture. A bond secured only by the general credit of the issuer. Delivery vs. payment (DVP). A securities industry procedure whereby payment for a security must he made at the time the security is delivered to the purchaser's agent. Derivative. Any security that has principal and/or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any security which represents a component of another security which has been separated from other components ("Stripped" coupons and principal). A derivative is also defined as a financial instrument the value of which is totally or partially derived from the value of another instrument, interest rate or index. Discount. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as T-bills and banker's acceptances, are known as discount securities. They sell at a discount from par, and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality. Diversification. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk. Duration. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a bond to changes in interest rates. (See modified duration). Page 13 of 16 Federal funds rate. The rate of interest charged by banks for short-term loans to other banks. The Federal Reserve Bank through open -market operations establishes it. Federal Open Market Committee: A committee of the Federal Reserve Board that establishes monetary policy and executes it through temporary and permanent changes to the supply of bank reserves. Haircut: The margin or difference between the actual market value of a security and the value assessed by the lending side of a transaction (i.e. a repo). Leverage. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing. Liquidity: The speed and ease with which an asset can be converted to cash. Make Whole Call. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or "made whole." Margin: The difference between the market value of a security and the loan a broker makes using that security as collateral. Market risk. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates. Market value. The price at which a security can be traded. Marking to market. The process of posting current market values for securities in a portfolio. Maturity. The final date upon which the principal of a security becomes due and payable. Medium term notes. Unsecured, investment -grade senior debt securities of major corporations which are sold in relatively small amounts either on a continuous or an intermittent basis. MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences. Modified duration. The percent change in price for a 100 basis point change in yields. Modified duration is the best single measure of a portfolio's or security's exposure to market risk. Money market. The market in which short term debt instruments (Tbills, discount notes, commercial paper and banker's acceptances) are issued and traded. Mortgage pass -through securities. A securitized participation in the interest and principal cashflows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security. Mutual fund. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund's prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds and money market instruments, as set forth in the individual fund's prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio. Premium. The difference between the par value of a bond and the cost of the bond, when the cost is above par. Prepayment speed. A measure of how quickly principal is repaid to investors in mortgage securities. Page 14 of 16 Prepayment window. The time period over which principal repayments will be received on mortgage securities at a specified prepayment speed. Primary dealer. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S. Government securities market. Prudent person (man) rule. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as `Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes." Realized yield. The change in value of the portfolio due to interest received and interest earned and realized gains and losses. It does not give effect to changes in market value on securities, which have not been sold from the portfolio. Regional dealer. A financial intermediary that buys and sells securities for the benefit of its customers without maintaining substantial inventories of securities, and that is not a primary dealer. Repurchase agreement (RP, Repo). Short term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller's point of view, the same transaction is a reverse repurchase agreement. Safekeeping. A service to bank customers whereby securities are held by the bank in the customer's name. Short Term. Less than one (1) year's time. Structured note. A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices. Examples include inverse floating rate notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising, and "dual index floaters," which pay interest based on the relationship between two other interest rates - for example, the yield on the ten-year Treasury note minus the Libor rate. Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements. Total rate of return. A measure of a portfolio' performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio. U.S. Treasury obligations. Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk, and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds. Treasury bills. All securities issued with initial maturities of one year or less are issued as discounted instruments, and are called Treasury bills. The Treasury currently issues three- and six-month Tbills at regular weekly auctions. It also issues "cash management" bills as needed to smooth out cash flows. Treasury notes. All securities issued with initial maturities of two to ten years are called Treasury notes, and pay interest semi-annually. Page 15 of 16 Treasury bonds. All securities issued with initial maturities greater than ten years are called "Treasury bonds. Like Treasury notes, they pay interest semi- annually. Value. Principal plus accrued interest. Volatility. The rate at which security prices change with changes in general economic conditions or the general level of interest rates. Yield to Maturity. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost. Page 16 of 16 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Investments POLICY #203 ADOPTED: October 23, 1990 AMENDED: I. INTRODUCTION The City of National City's investment program will conform with federal, state, and other legal requirements, including California Government Code Sections 16429.1- 16429.4, 53600-53609 and 53630-53686. The following investment policy addresses the methods, procedures and practices which must be exercised to ensure effective and judicious fiscal and investment management of the City's funds. It is the policy of the City to invest public funds in a manner that will provide a market rate of return, given its requirements for preserving principal and meeting the daily cash flow demands of the City. All investments will comply with this Investment Policy and governing laws. This Investment Policy replaces any previous Investment Policy or Investment Procedures of the City. II. SCOPE This Investment Policy applies to all the City's financial assets and investment activities with the following exceptions: A. Proceeds of debt issuance shall be invested in accordance with the City's general investment philosophy as set forth in this policy; however, such proceeds are invested in accordance with permitted investment provisions of their specific bond indentures. Pooling of Funds: Except for cash in certain restricted and special funds, the City will consolidate cash and reserve balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles. III. GENERAL OBJECTIVES The overriding objectives of the investment program are to preserve principal, provide sufficient liquidity, and manage investment risks. Page 1 of 18 TITLE: Investments POLICY #203 ADOPTED: October 23, 1990 AMENDED: 1. Safety: Safety of principal is the foremost objective of the investment program. Investments will be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk. 2. Liquidity: The investment portfolio will remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. 3. Return: The investment portfolio will be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints for safety and liquidity needs. IV. PRUDENCE, INDEMNIFICATION AND ETHICS A. Prudent Investor Standard: Management of the City's investments is governed by the Prudent Investor Standard as set forth in the California Government Code 53600.3: "...all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring; exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing., including, but not limited to, the general economic conditions and the anticipated needs of the City, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the City. Within the limitations of this section and ' considering individual investments as part of an overall strategy, investments may be acquired as authorized by law." B. Indemnification: The Director of Finance or City Manager designee hereinafter designated as Financial Services Officer and other authorized persons responsible for managing City funds, acting in accordance with written procedures and the Investment Policy and exercising due diligence, will be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported within 30 days and appropriate action is taken to control adverse developments. Page 2 of 18 TITLE: Investments POLICY #203 ADOPTED: October 23, 1990 AMENDED: C. Ethics: Officers and employees involved in the investment process will refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. V. DELEGATION OF AUTHORITY A. Authority to manage the City's investment program is derived from California Government Code Sections 53600 et seq. The City Council is responsible for the City's cash management, including the administration of this Investment Policy. Management responsibility for the cash management of City funds is hereby delegated to the Director of Finance and/or Financial Services Officer. The Director of Finance and/or Financial ServieesOfficer will be responsible for all transactions undertaken and will establish a system of procedures and controls to regulate the activities of subordinate employees. B. The City may engage the services of one or more external investment managers to assist in the management of the City's investment portfolio in a manner consistent with the City's objectives. Such external managers may be granted discretion to purchase and sell investment securities inaccordance with this Investment Policy. Such managers must he registered under the Investment Advisers Act of 1940. VI. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS A list will be maintained of financial institutions and depositories authorized to provide investment services. In addition, a list will be maintained of approved security broker/dealers selected by conducting a process of due diligence described in the investment procedures manual. These may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15C3-1 (uniform net capital rule). A. The City's Director of Finance and/or Financial Services Officer will determine which financial institutions are authorized to provide investment services to the City. Institutions eligible to transact investment business with the City include: 1. Primary government dealers as designated by the Federal Reserve Bank; 2. Nationally or state -chartered banks; Page 3 of 18 TITLE: Investments POLICY #203 ADOPTED: October 23, 1990 AMENDED: 3. The Federal Reserve Bank; and, 4. Direct issuers of securities eligible for purchase. B. Selection of financial institutions and broker/dealers authorized to engage in transactions with the City will be at the sole discretion of the City. C. All financial institutions which desire to become qualified bidders for investment transactions (and which are not dealing only with the investment adviser) must supply the Director of Finance and/or Financial Services Officer with a statement certifying that the institution has reviewed the California Government Code Section 53600 et seq. and the City's Investment Policy. D. Selection of broker/dealers used by an external investment adviser retained by the City will be at the sole discretion of the investment adviser. E. Public deposits will be made only in qualified public depositories as established by State law. Deposits will be insured by the Federal Deposit Insurance Corporation, or, to the extent the amount exceeds the insured maximum, will be collateralized in accordance with State law. VII. DELIVERY, SAFEKEEPING AND CUSTODY, AND COMPETITIVE TRANSACTIONS A. Delivery -versus --payment Settlement of all investment transactions will be completed using standard delivery -vs. -payment procedures. B. Third party safekeeping: To protect against potential losses by collapse of individual securities dealers, and to enhance access to securities, interest payments and maturity proceeds, all securities owned by the City will be held in safekeeping by a' third party bank custodian, acting as agent for the City under the terms of a custody agreement executed by the bank and the City. C. Competitive transactions: All investment transactions will be conducted on a competitive basis which can be executed through a bidding process involving at least three separate brokers/financial institutions or through the use of a nationally recognized trading platform. Page 4 of 18 TITLE: Investments POLICY #203 ADOPTED: October 23, 1990 AMENDED: VIII. AUTHORIZED AND SUITABLE INVESTMENTS All investments will be made in accordance with Sections 53600 et seq. of the Government Code of California and as described within this Investment Policy. Permitted investments under this policy will include: 1. Municipal Bonds. These include bonds of the City, the state of California, any other state, and any local Agency within the state of California. The bonds will be registered in the name of the City or held under a custodial agreement at a bank. The bonds shall be rated at the time of purchase within the 4 highest general classifications established by a rating service of nationally recognized expertise in rating bonds of states andtheir political subdivisions. a. No more than 5% per issuer. 2. U.S. Treasury and other government obligations for which the full faith and credit of the United States' are pledged for the, payment of principal and interest. There are no limits on the dollar amount or percentage that the City may invest in U.S. Treasuries. 3. Federal Agency or United States government -sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government -sponsored enterprises. There are no limits on the dollar amount r percentage that the -City may invest in government -sponsored enterprises. 4. Banker's acceptances provided that: Thev are issued by institutions with short term debt obligations rated "Al" a. ors pagher,; r the equivalent, by at least two nationally recognized statisti%lating organization (NRSRO); and have long-term debt obligations which are rated "A" or higher by at least two nationally recognized statistical rating organization; b. The maturity does not exceed 180 days; and, c. No more than 40% of the total portfolio may be invested in banker's acceptances and no more than 5% per issuer. Page 5 of 18 TITLE: Investments POLICY #203 ADOPTED: October 23, 1990 AMENDED: 5. Federally insured time deposits (Non-negotiable certificates of deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that: a. The amount per institution is limited to the maximum covered under federal insurance; and, b. The maturity of such deposits does not exceed 5 years. 6. Certificate of Deposit Placement Service (CDARS) a. No more than 30% of the total portfolio may be invested in a combination of certificates of deposit including CDARS. b. The maturity of CDARS deposits does not exceed 5 years. 7. Negotiable Certificates of Deposit (NCDs) provided that: a. They are issued by institutions which have long-term obligations which are rated "A" or higher by at least two nationally recognized statistical rating organizations; and/or have short term debt obligations rated "Al" or higher, or the equivalent, by at least two nationally recognized statistical rating organizations; b. The maturity does not exceed 5 years; and, c. No more than 30% of the total portfolio may be invested in NCDs and no more than 5% per issuer. 8. Commercial paper provided that: a. The maturity does not exceed 270 days from the date of purchase; b. The issuer is a corporation organized and operating in the United States with assets in excess of $500 million; e. They are issued by institutions whose short term obligations are rated "Al" or higher, or the equivalent, by at least two nationally recognized statistical rating organization; and whose long-term obligations are rated "A" or higher by at least two nationally recognized statistical rating organization; and, Page 6 of 18 TITLE: Investments POLICY #203 ADOPTED: October 23, 1990 AMENDED: d. No more than 25% of the portfolio is invested in commercial paper and no more than 5% per issuer. 9. State of California Local Agency Investment Fund (LAIF), provided that: a. The City may invest up to the maximum permitted amount in LAIF; and, b. LAIF's investments in instruments prohibited by or not specified in the City's policy do not exclude it from the City's list , of allowable investments, provided that the fund's reportsallow the Director of Finance or Financial Services Officer to adequately judge the risk inherent in LAIF's portfolio. 10. Local government investment pools. a. San Diego County Investment Pool 11. Corporate medium term notes (MTNs), provided that: a. Such notes have a maximum maturity of 5 years; b. Are issued ;byco porations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States; Are rated ="'A" category or better by at least two nationally recognized statistical rating organization; and, d. l oldings of medium -term notes may not exceed 30% of the portfolio and no inmore than 5% per issuer. 12. Mortgage pass -through securities and asset -backed securities, provided that such securities: a. have a maximum stated final maturity of 5 years; b. be issued by an issuer having an "A" or higher rating for the issuer's debt as provided by at least two nationally recognized statistical rating organization; Page 7 of 18 TITLE: Investments POLICY #203 ADOPTED: October 23, 1990 AMENDED: c. be rated in a rating category of "AA" or its equivalent or better by at least two nationally recognized statistical rating organization. d. Purchase of securities authorized by this subdivision may not exceed 20% of the portfolio. 13. Money market mutual funds that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940. a. Provided that such funds meet either of the following criteria: 1. Attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations; or, 2. Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not Less than five years' experience investing in the securities and obligations authorized by California Government Code Section 53601 (a through j) and with assets under management in excess of $500 million. b. Purchase of securities authorized by this subdivision may not exceed 20% of the portfolio. IX. PORTFOLIO RISK MANAGEMENT A. The following are prohibited investment vehicles and practices: 1. State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options. 2. In accordance with Government Code Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest -only strips is prohibited. 3. Investment in any security that could result in a zero interest accrual if held to maturity is prohibited. 4. Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited. Page 8 of 18 TITLE: Investments POLICY #203 ADOPTED: October 23, 1990 AMENDED: 5. Purchasing or selling securities on margin is prohibited. 6. The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited. 7. The purchase of foreign currency denominated securities is prohibited. B. Mitigating credit risk in the portfolio Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies: 1. The diversification requirements included in Section IX are designed to mitigate credit risk in the portfolio; 2. No more than 5% of the total portfolio may be invested in securities of any single issuer, other than the US Government, its agencies and enterprises; 3. The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to improve the quality, liquidity or yield of the portfolio in response to Market conditions or City's risk preferences; and, 4. If securities owned bythe City are downgraded by either Moody's or S&P to a level below the quality required by this Investment Policy, it will be the City's policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio. a. If a security is downgraded, the Director of Finance and/or Financial Services Officer will use discretion in determining whether to sell or hold the security based on its current maturity, the economic outlook for the issuer, and other relevant factors. b. If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported monthly to the City Council. Page 9of18 TITLE: Investments POLICY #203 ADOPTED: October 23, 1990 AMENDED: C. Mitigating market risk in the portfolio Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City recognizes that, over time, longer -term portfolios have the potential to achieve higher returns. On the other hand, longer - term portfolios have higher volatility of return. The City will mitigate market risk by providing adequate liquidity for short-term cash needs, and by making longer - term investments only with funds that are not needed for current cash flow purposes. The City further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns prior to maturity, and securities with embedded options, will affect the market risk ; profile of the portfolio differently in different interest rate environments. The City, therefore, adopts the following strategies to control and mitigate its exposure to market risk: 1. The City will maintain a. minimum of three months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements; 2. The maximum percent of callable securities (does not include "make whole call" securities as defined in the Glossary) in the portfolio will be 20%; 3. The maximum stated final maturity of individual securities in the portfolio will be five years, except as otherwise stated in this policy; and, 4 The duration of the portfolio will at all times be approximately equal to the duration (typically plus or minus 20%) of a Market Benchmark Index selected by the City based on the City's investment objectives, constraints and risk tolerances. The, City's current Benchmark will be documented in the investment procedures manual. X. INVESTMENT OBJECTIVES (PERFORMANCE STANDARDS AND EVALUATION) A. Overall objective: The investment portfolio will be designed with the overall objective of obtaining a total rate of return throughout economic cycles, commensurate with investment risk constraints and cash flow needs. B. Specific objective: The investment performance objective for the portfolio will be to earn a total rate of return over a market cycle which is approximately equal to the return on the Market Benchmark Index as described in the City's investment procedures manual. Page 10 of 18 TITLE: Investments POLICY #203 ADOPTED: October 23, 1990 AMENDED: XI. PROCEDURES AND INTERNAL CONTROLS A. Procedures The Director of Finance and/or Financial Services Officer will establish written investment policy procedures in a separate investment procedures manual to assist investment staff with day-to-day operations of the investment, program consistent with this policy. Such procedures will include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Director of Finance and/or Financial Services Officer. B. Internal Controls The Director of Finance and/or Financial Services Officer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse,- The internal control structure will be designed to provide reasonable assurance that these 'objectives are met. - Internal controls will be described in the City's investment procedures manual XII. REPORTING A. Quarterly reports Quarterly investment r�eports will be submitted by the Director of Finance and/or Financial Services Officer to the City Council, consistent with the requirements contained in Ciovnment Code section 53646, including but not limited to the swing inform n: 1. Type:of investment 2. Nameof,issuerand/or financial institution 3. Date of`pureh se 4. Date of maturity 5. Current market value for all securities 6. Rate of interest 7. Purchase price of investment 8. Other data as required by the City Page 11 of 18 TITLE: Investments POLICY #203 ADOPTED: October 23, 1990 AMENDED: B. Annual reports The Investment Policy will be reviewed and adopted at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends. Related Policy References Ca. Government Code Sections: 16429.1 — 16429.4, and 53600 — 53686 Investment Advisors Act of 1940 Securities and Exchange Commission Rule #15C3-1 Appendix I attached: "Authorized Personnel" Appendix II attached: "Glossary of Investment Terms'': Prior Policy Amendments January 10, 2012 Page 12 of 18 Appendix I Authorized Personnel The following positions arc authorized to transact investment business and wire funds for investment purposes on behalf of the City of National City: City Manager Director of Administrative Services Director of Finance Financial Services Officer Page 13 of 18 Appendix II Glossary of Investment Terms° Agencies. Shorthand market terminology for any obligation issued by a government -sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are: FDIC. The Federal Deposit Insurance Corporation provides insurance backed by the full faith and credit of the US government to certain bank deposits and debt obligations. FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds. FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market. FHLB issues discount notes and bonds. FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called "FreddieMac" issues discount notes, bonds and mortgage pass -through securities. FNMA. Like FHLB and FreddieMac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as "FannieMae," issues discount notes, bonds and mortgage pass -through securities. GNMA. The Government National Mortgage Association, known as "GinnieMae," issues mortgage pass -through securities, which are guaranteed by the full faith and credit of the US Government. PEFCO. The Private Export Funding corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government. TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio and Mississippi River valleys. TVA currently issues discount notes and bonds. Asked. The price at which a seller offers to sell a security. Average life. In, mortgage -related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected. Banker's acceptance. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which "accepts" the obligation to pay the investor. Benchmark. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy. Bid. The price at which a buyer offers to buy a security. Broker. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from his own position. Callable. A callable security gives the issuer the option to call it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If Page 14of18 interest rates decline since an issuer issues securities, it will likely call its current securities and reissue them at a lower rate of interest. Callable securities have reinvestment risk as the investor may receive its principal back when interest rates are lower than when the investment was initially made. Certificate of Deposit (CD). A time deposit with a specific maturity evidenced by a certificate. Large denomination CDs may be marketable. Collateral. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies. Collateralized Mortgage Obligations (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities. Commercial paper. The short-term unsecured debt of corporations. Cost yield. The annual income from an investment divided by the purchase cost. Because it does not give effect to premiums and discounts which may have been included in the purchase cost, it is an incomplete measure of return. Coupon. The rate of return at which interest is paid on a bond. Credit risk. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer. Current yield. The annual income from an investment divided by the current market value. Since the mathematical calculation relies on the current market value rather than the investor's cost, current yield is unrelated to the actual return the investor will earn if the security is held to maturity. Dealer. A dealer acts as a principal in security transactions, selling securities from and buying securities for his own position. Debenture. A bond secured only by the general credit of the issuer. Delivery vs. payment (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser's agent. Derivative. Any security thathas principal and/or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and/or represents om onent of another securitywhich has been amount, or anysecuritywhich a c -.,P separated from other components ("Stripped" coupons and principal). A derivative is also defined as a financial instrument the value of which is totally or partially derived from the value of another instrument, interest rate or index. Discount. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as T-bills and banker's acceptances;; are known as discount securities. They sell at a discount from par, and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality. Diversification. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk. Duration. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a bond to changes in interest rates. (See modified duration). Page 15of18 Federal funds rate. The rate of interest charged by banks for short-term loans to other banks. The Federal Reserve Bank through open -market operations establishes it. Federal Open Market Committee: A committee of the Federal Reserve Board that establishes monetary policy and executes it through temporary and permanent changes to the supply of bank reserves. Haircut: The margin or difference between the actual market value of a security and the value assessed by the lending side of a transaction (i.e. a repo). Leverage. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing. Liquidity: The speed and ease with which an asset can be converted to cash. Make Whole Call. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or "made whole." Margin: The difference between the market value of a security and the loan a broker makes using that security as collateral. Market risk. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates. Market value. The price at which a security can be traded. Marking to market. The process of posting current market values for securities in a portfolio. Maturity. The final date upon which the principal of a security becomes due and payable. Medium term notes. Unsecured, investment -grade senior debt securities of major corporations which are sold in relatively small amounts either on a continuous or an intermittent basis. MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences. Modified duration. The percent change in price for a 100 basis point change in yields. Modified duration is the best single measure of a portfolio's or security's exposure to market risk. Money market. The market in which short term debt instruments (Tbills, discount notes, commercial paper and banker's acceptances) are issued and traded. Mortgage pass -through securities. A securitized participation in the interest and principal cashflows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security. Mutual fund. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund's prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds and money market instruments, as set forth in the individual fund's prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio. Premium. The difference between the par value of a bond and the cost of the bond, when the cost is above par. Prepayment speed. A measure of how quickly principal is repaid to investors in mortgage securities. Page 16 of 18 Prepayment window. The time period over which principal repayments will be received on mortgage securities at a specified prepayment speed. Primary dealer. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S. Government securities market. Prudent person (man) rule. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as "Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes." Realized yield. The change in value of the portfolio due to interest received and interest earned and realized gains and losses. It does not give effet to changes in market value on securities, which have not been sold from the portfolio. Regional dealer. A financial intermediary that buys and sells securities for the benefit of its customers without maintaining substantial inventories of securities; and that is not a primary dealer. Repurchase agreement (RP, Repo). Short term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller's point of view, the same transaction is a reverse repurchase agreement. Safekeeping. A service to bank customers whereby securities are held by the bank in the customer's name. Short Term. Less than one (1) year's time. Structured note. ' A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices. Examples include inverse floating rate notes which have coupons that increase when other interest rates are falling, and which fall when other, interest rates are rising, and "dual index floaters," which pay interest based on the relationship between two other interest rates - for example, the yield on the ten-year Treasury note minus the Libor rate. Issuers of such notes Jock in a reduced cost of borrowing by purchasing interest rate swap agreements. Total rate of return. A measure of a portfolio' performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio. U.S. Treasury obligations. Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk, and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds. Treasury bills. All securities issued with initial maturities of one year or less are issued as discounted instruments, and are called Treasury bills. The Treasury currently issues three- and six-month T-bills at regular weekly auctions. It also issues "cash management" bills as needed to smooth out cash flows. Treasury notes. All securities issued with initial maturities of two to ten years are called Treasury notes, and pay interest semi-annually. Page 17of18 Treasury bonds. AU securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi-annually. Value. Principal plus accrued interest. Volatility. The rate at which security prices change with changes in general economic conditions or the general level of interest rates. Yield to Maturity. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost. Page 18 of 18 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Donation Acceptance Policy POLICY #204 ADOPTED: October 21, 2003 AMENDED: Purpose From time to time, individuals, community groups and businesses may wish to make donations to the City in either cash or in -kind contributions that enhance projects, facilities, and programs, and the need for such projects, facilities and programs often exceeds the City's ability to fund them. Accordingly, it is an acceptable and appropriate practice to accept donations, in order to enhance city programs and/or; ;facilities to provide a higher level of service to the public. The purpose of this Policy is to establish an orderly and efficient process for the acceptance of donations made to the City. It is also important to process donations in such a way so as to distinguish donations made to the City from those made to individuals, e.g. gifts or campaign contributions. Policy All donations made to the City shall be accepted and processed according to the following: 1. The donation must have a'purpose consistent with City goals and objectives. 2. The City Council may decline any donation without comment or cause. 3. The donation will not be in conflict with any provision of the law. 4. ' In kind donations will be aesthetically acceptable to the City of National City 5. The donation will not add to the workload of the City Council or staff unless it provides a net benefit to the City. 6. The donation will not bring hidden costs such as starting a program the City would be unwilling to fund when the donation was exhausted. 7. The donation must place no restriction on the City, unless agreed to by the City Council. 8. The donation shall become the property of the City. Page 1 of 4 9. All donations will receive recognition appropriate to the level and nature of the donation as determined by the City. For those of a capital nature, that may be in the form of signage, marking or naming, as determined by the City Council. Regardless of the recognition strategy selected, the intent shall be to appropriately honor the donor for their contribution to the community. The appearance of traditional commercial advertising or product endorsements that promote the donor shall be avoided. 10. All donations shall be accepted directly by the Finance Department staff. 11. Cash donations exceeding $5,000, and in -kind donations exceeding $5,000 in value, shall be accepted through a written agreement consistent with these guidelines and approved by the City Council. In -kind capital donations will be subject to normal City review, permitting, inspection and insurance requirements. 12. At the time of acceptance, all donations, regardless of value, will be acknowledged in writing in a form approved by the City Attorney. The original acknowledgement will be sent to the donor and a copy forwarded to the Finance Department. Page 2 of 4 UNCONDITIONAL DONATION OF PERSONAL PROPERTY TO THE CITY OF NATIONAL CITY (hereinafter referred to as "the Donor") hereby (Name of Donor) makes an unconditional donation, in perpetuity, of (Description of Donation) (hereinafter referred to as "the Donation") to the City of National City. The Donor understands and acknowledges that pursuant to Sections 37354 and 37355 of the California Government Code, the City is authorized to accept said donation for any public purpose that the City desires. Due to the nature of the donation work of art and the site on which it is installed, the DONOR and his/her agents, heirs, successors and assigns hereby waive any and all rights they may have under thee California Art Preservation Act, as set forth in Civil Code Section 987. The DONOR agrees that upon completion, the physical work of art which is created pursuant to this Agreement shall be transferred to and shall vest in the City of National City, and the DONOR hereby expressly waives and releases all rights of ownership to the work of art, including those under Civil Service Code Section 988. The DONOR, his/her agents, heirs, successors and assigns also agree not to attempt to defeat this waiver by cooperating with any organization which seeks to bring an action under Civil Code Section989. The Donor hereby releases the City of National Cif), and its officers, employees and volunteers, against and from any and all liability, loss, damages to property, claims, demands, suits, actions, proceedings, costs or attorney's fees, of any kind or nature, resulting from or arising out of the City's use of the Donation.; The Donor agrees to provide 'a'aminimum of`$1,000,000 combined single limit insurance for bodily injury and property damage which includes the City, its officials, agents and employees named as additional insured. A certificate of insurance must be attached to this form. The individual executing this document on behalf of the Donor represents that he/she has the legal power, right and authority to bind the Donor; that all requisite action (corporate, trust, partnership or otherwise) has been taken by the Donor in connection with authorizing the execution of this document, that this document shall be legally enforceable as to the Donor; and that the execution of this document does not conflict with or result in the breach of any contract, bond, note or Qther agreement or instrument to which the Donor is a party. Dated: DONOR By: (Authorized Representative) For Office Use Only Certificate of Insurance Approved Date Page 3 of 4 UNCONDITIONAL DONATION OF PERSONAL PROPERTY TO THE CITY OF NATIONAL CITY (hereinafter referred to as "the Donor") hereby (Name of Donor) makes an unconditional donation, in perpetuity, of (Description ofDonation) (hereinafter referred to as "the Donation") to the City of National City. The Donor understands and acknowledges that pursuant to Sections 37354 and 37355 of the California Government Code, the City is authorized to accept said donation for any public purpose that the City desires. As a condition of the granting of permission by the City of National City to the donor to conduct its activities on public property, the donor hereby agree(s) to defend, indemnify and hold harmless the City of National City its officers, employees and agents, from and against any and all claims, demands, costs, losses, liability or, for any personal injury, death or property damage, or both, or any litigation and other liability, including attorneys fees and the costs of litigation, arising out of or related to the use of public property by the donor or its agents, employees or contractors. The Donor agrees to provide a minimum of $1,000,000 combined single limit insurance for bodily injury and property damage which includes the City, its officials, agents and employees named as additional insured. A certificate of insurance must be attached to this form. The individual executing this document on behalf of the Donor represents that he/she has the legal power, right and authority to bind the Donor; that all requisite action (corporate, trust, partnership or otherwise) has been taken by the Donor in connection with authorizing the execution of this document; that this document shall be legally enforceable as to the Donor; and that the execution of this document does not conflict with or result in the breach of any contract, bond, note or other agreement or instrument to which the Donor is a party. Dated: DONOR By: (Authorized Representative) For Office Use Only Certificate of Insurance Approved Date Page 4 of 4 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Donation Acceptance Policy POLICY #204 ADOPTED: October 21, 2003 AMENDED: Purpose From time to time, individuals, community groups and businesses may wish to make donations to the City in either cash or in -kind contributions that enhance projects, facilities, and programs, and the need for such projects, facilities and programs often exceeds the City's ability to fund them. Accordingly, it is an acceptable and appropriate practice to accept donations, in order to enhance city programs and/or facilities to provide a higher level of service to the public. The purpose of this pplicy is to establish an orderly and efficient process for the acceptance of donations made to the City. It is also important to process donations in such a way so as to distinguish between donations made to the City versus,those made to individuals (ie,gifts or campaign contributionsL Policy All donations made to the City shall be accepted and processed according to the following: 1. The donation must have a purpose consistent with City goals and objectives. 2. The City Council may decline any donation without comment or cause. 3. The donation nntsot be in conflict with any provision of the law. 4. In_kind donations will be aesthetically acceptable to the City of National City,. 5. The donation will not add to the workload of the City Council or staff unless it provides a net benefit to the City. 6. The donation will not require hidden costs such as starting a program the City would be unwilling to fund when the donation was exhausted. To the extent the donation is for specific funding of a program or position, any such donation can be accepted but will not be conditioned on continuing funding for that program or position beyond the donation amount. 7. The donation must place no restriction on the City, unless agreed to by the City Council. Page 1 of 4 { Deleted: .1 Deleted: P fDeleted: from ( Deleted: , e.g. fDeleted: Deleted: wilt {Deleted: bring 8. The donation shall become the property of the City. 9. All donations will receive recognition appropriate to the level and nature of the donation as determined by the City. For those of a capital nature, that may be in the form of signage, marking or naming, as determined by the City Council. Regardless of the recognition strategy selected, the intent shall be to appropriately honor the donor for their contribution to the community. The appearance of traditional commercial advertising or product endorsements that promote the donor shall be prohibited. 10. All monetary donations shall be submitted the Finance Department staff.__A receipt shall be made available from the Finance Department, upon request. Recipient departments shall notify the Finance Department of all donations received, whether monetary or otherwise, 11. Cash donations exceeding $5,000, and in -kind donations exceeding $5,000 in value, must be submitted ,through a written agreement consistent with these guidelines and approved by the City Council. In -kind capital donations will be subject to normal City review, permitting, inspection and insurance requirements. 12. At the time of acceptance, all donations, regardless of value, will be acknowledged in writing, by the recipient department„in a format approved by the City Attorney. The original acknowledgement will be sent to the donor and a copy forwarded to the Finance Department. tDeleted: avoided 11 Deleted: accepted directly by 1 f Deleted: { Deleted: shall be accepted l Deleted: 1 Related Policy References Formatted: Font: Bold, Underline 1 Council Policy #115: Donating City Property & Police Unclaimed Property Council Policy #117: Distribution & Reporting of Tickets and Passes Two templates for "Donation Acceptance' agreements are attached to this policy Prior Policy Amendments l Formatted: Font: Bold, Underline J None { Deleted: 11 1 Page 2 of 4 UNCONDITIONAL DONATION OF PERSONAL PROPERTY (ART WORK) TO Formatted: Font: 12 pt THE CITY OF NATIONAL CITY (hereinafter referred to as "the Donor") hereby (Name of Donor) makes an unconditional donation, in perpetuity, of (Description of Donation) (hereinafter referred to as "the Donation") to the City of National City. The Donor understands and acknowledges that pursuant to Sections 37354 and 37355 of the California Government Code, the City is authorized to accept said donation for any public purpose that the City desires. Due to the nature of the donation work of art and the site on which it is installed, the DONOR and his/her agents, heirs, successors and assigns hereby waive any and all rights they may have under thee California Art Preservation Act, as set forth in Civil Code Section 987. The DONOR agrees that upon completion, the physical work of art which is created pursuant to this Agreement shall be transferred to and shall vest in the City of National City, and the DONOR hereby expressly waives and releases all rights of ownership to the work of art, including those under Civil Service Code Section 988. The DONOR, his/her agents, heirs, successors and assigns also agree not to attempt to defeat this waiver by cooperating with any organization which seeks to bring an action under Civil Code Section 989. The Donor hereby releases the City of National City and its officers, employees and volunteers, against and from any and all liability, loss, damages to property, claims, demands, suits, actions, proceedings, costs or attorney's fees, of any kind or nature, resulting from or arising out of the City's use of the Donation. r The individual executing this document on behalf of the Donor represents that he/she has the legal power, right and authority to bind the Donor; that all requisite action (corporate, trust, partnership or otherwise) has been taken by the Donor in connection with authorizing the execution of this document; that this document shall be legally enforceable as to the Donor; and that the execution of this document does not conflict with or result in the breach of any contract, bond, note or other agreement or instrument to which the Donor is a party. Dated: DONOR By: (Authorized Representative) For Office Use Only Certificate of Insurance Approved Date Page 3 of 4 f Deleted: ¶ Deleted: 'the Donor agrees to provide a minimum of $1,000,000 combined single Iimit insurance for bodily injury and property damage which includes the City, its officials, agents and employees named as additional insured_ A certificate of insurance must be attached to this fonn [Deleted: 11 ,UNCONDITIONAL DONATION OF PERSONAL PROPERTY LFormatted: Font: 12 pt TO THE CITY OF NATIONAL CITY (hereinafter referred to as the Donor") hereby (Name of Donor) makes an unconditional donation, in perpetuity, of (Description o/Donation) (hereinafter referred to as `'the Donation") to the City of National City. The Donor understands and acknowledges that pursuant to Sections 37354 and 37355 of the California Government Code. the City is authorized to accept said donation for any public purpose that the City desires. As a condition of the granting of permission by the City of National City to the donor to conduct its activities on public property, the donor hereby agree(s) to defend, indemnify and hold harmless the City of National City its officers, employees and agents, from and against any and all claims, demands, costs, losses, liability or, for any personal injury, death or property damage, or both, or any litigation and other liability, including attorneys fees and the costs of litigation, arising out of or related to the use of public property by the donor or its agents, employees or contractors. The Donor agrees to provide a minimum of $1,000,000 combined single limit insurance for bodily injury and property damage which includes the City, its officials, agents and employees named as additional insured. A certificate of insurance must he attached to this form. The individual executing this document on behalf of the Donor represents that he/she has the legal power, right and authority to bind the Donor; that all requisite action (corporate, trust, partnership or otherwise) has been taken by the Donor in connection with authorizing the execution of this document; that this document shall be legally enforceable as to the Donor; and that the execution of this document does not conflict with or result in the breach of any contract, bond, note or other agreement or instrument to which the Donor is a party. Dated: DONOR By: (Authorized Representative) For Office Use Only Certificate of Insurance Approved Date Page 4 of 4 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Donation Acceptance Policy POLICY #204 ADOPTED: October 21, 2003 AMENDED: Purpose From time to time, individuals, community groups and businesses may wish to make donations to the City in either cash or in -kind contributions that enhance projects, facilities, and programs, and the need for such projects, facilities and programs often exceeds the City's ability to fund them. Accordingly, it is an acceptable and appropriate practice to accept donations, in order to enhance city programs and/or facilities to provide a higher level of service to the public. The purpose of this policy is to establish an orderly and efficient process for the acceptance of donations made to the City. It is also important to process donations in such a way so as to distinguish between donations made to the City, versus those made to individuals (ie gifts or campaign contributions). Policy All donations made to the City shall be accepted'd processed according to the following: 1. The donation must have a purpose consistent with City goals and objectives. 2. The City Council may decline any donation without comment or cause. 3. The donation must not be in conflict with any provision of the law. 4. In -kind donations will be aesthetically acceptable to the City of National City. 5. The donation will not add to the workload of the City Council or staff unless it provides a net benefit to the City. 6. The donation will not require hidden costs such as starting a program the City would be unwilling to fund when the donation was exhausted. To the extent the donation is for specific funding of a program or position, any such donation can be accepted but will not be conditioned on continuing funding for that program or position beyond the donation amount. 7. The donation must place no restriction on the City, unless agreed to by the City Council. Page 1 of 4 TITLE: Donation Acceptance Policy POLICY #204 ADOPTED: October 21, 2003 AMENDED: 8. The donation shall become the property of the City. 9. All donations will receive recognition appropriate to the level and nature of the donation as determined by the City. For those of a capital nature, that may be in the form of signage, marking or naming, as determined by the City Council. Regardless of the recognition strategy selected, the intent shall be to appropriately honor the donor for their contribution to the community. The appearance of traditional commercial advertising or product endorsements that promote the donor shall be prohibited. 10. All monetary donations shall be submitted to the Finance Department staff. A receipt shall be made available from the Finance Department, upon request. Recipient depailinents shall notify the Finance Department of all donations received, whether monetary or otherwise. 11. Cash donations exceeding $5,000, and in -kind donations exceeding $5,000 in value, must be submitted through a written agreement consistent with these guidelines and approved by the City Council. ' In -kind capital donations will be subject to normal City review, permitting, inspection and insurance requirements. 12. At the time of acceptance, all donations, regardless of value, will be acknowledged in writing, by the recipient department, in a format approved by the City Attorney. The original acknowledgement will be sent to the donor and a copy forwarded to the Finance Department. Related Policy References Council Policy #115: Donating City Property & Police Unclaimed Property Council Policy #117: Distribution & Reporting of Tickets and Passes Two templates for "Donation Acceptance" agreements are attached to this policy Prior Policy Amendments None Page 2 of 4 f UNCONDITIONAL DONATION OF PERSONAL PROPERTY (ART WORK) TO THE CITY OF NATIONAL CITY (hereinafter referred to as "the Donor") hereby (Name of Donor) makes an unconditional donation, in perpetuity, of (Description of Donation) (hereinafter referred to as "the Donation-) to the City of National City. The Donor understands and acknowledges that pursuant to Sections 37354 and 37355 of the California Government Code, the City is authorized to accept said donation for any public purpose that the City desires. Due to the nature of the donation work of art and the site on which it is installed, the DONOR and his/her agents, heirs, successors and assigns hereby waive any and all rights they may have under thee California Art Preservation Act, as set forth in Civil Code Section 987. The DONOR agrees that upon completion, the physical work of art which is created pursuant to this Agreement shall be transferred to and shall vest in the City of National City, and the DONOR hereby expressly waives and releases all rights of ownership to the work of art, including those under Civil Service Code Section 988. The DONOR, his/her agents, heirs, successors and assigns also agree not to attempt to defeat this waiver by cooperating with any organization which seeks to bring an action under Civil Code Section 989. The Donor hereby releases the City of National City and itsofficers, employees and volunteers, against and from any and all liability, loss, damages to property, claims, demands, suits, actions, proceedings, costs or attorney's fees, of any kind or nature: resulting from or arising out of the City's use of the Donation. The individual executing this document on behalf of the Donor represents that he/she has the legal power, right and authority to bind the Donor; that all requisite action (corporate, trust, partnershipor otherwise) has been taken by the Donor in connection with authorizing the execution of this document; )at this document shall be legally enforceable as to the Donor; and that the execution of this document does not conflict with or result in the breach of any contract, Pw .. bond, note or other agreement or instrument to which the Donor is a party. Dated: DONOR By: (Authorized Representative) For Office Use Only Certificate of Insurance Approved Date Page 3 of 4 s UNCONDITIONAL DONATION OF PERSONAL PROPERTY TO THE CITY OF NATIONAL CITY (hereinafter referred to as "the Donor") hereby (Name of Donor) makes an unconditional donation, in perpetuity, of (Description of Donation) (hereinafter referred to as the Donation") to the City of National City. The Donor understands and acknowledges that pursuant to Sections 37354 and 37355 of the California Government Code, the City is authorized to accept said donation for any public purpose that the City desires. As a condition of the granting of permission by the City of National City to the donor to conduct its activities on public property, the donor hereby agree(s) to defend, indemnify and hold harmless the City of National City its officers, employees and agents, from and against any and all claims, demands, costs, losses, liability or, for any personal injury, death or property damage, or both, or any litigation and other liability, including attorneys fees and the costs of litigation, arising out of or related to the use of public property by the donor or its agents, employees or contractors. The Donor agrees to provide a minimum of ;$1,000,000 combined single limit insurance for bodily injury and property damage which includes the City, its officials, agents and employees named as additional insured. A certificate of insurance must be attached to this form. The individual executing this document on behalf of the Donor represents that he/she has the legal power, right and authority to bind the Donor; that all requisite action (corporate, trust, partnership or otherwise) has been taken by the Donor in connection with authorizing the execution of this document; that this document shall be legally enforceable as to the Donor; and that the execution of this document does not conflict with or result in the breach of any contract, bond, note or other agreement or instrument to which the Donor is a party. Dated: DONOR By: (Authorized Representative) For Office Use Only Certificate of Insurance Approved Date Page 4 of 4 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Intrabudget Adjustment Request Policy for the POLICY #205 Mayor and City Council ADOPTED: January 16, 2007 AMENDED: Purpose To establish a procedure for the transfer of funds from one account to another for accounts within the control of the Mayor or a City Councilmember. Policy The intrabudget adjustment request (IBAR) is the procedure that is utilized to transfer funds from one account to another within a department. In the event of a transfer of funds from one account to another account for accounts within the control of a Councilmember, the intrabudget adjustment request shall be signed by the Councilmember initiating the request and also by the Mayor. For accounts within the control of the Mayor, the intrabudget adjustment request shall be signed by the Mayor and also by a Councilmember. In addition, a copy of the request shall be sent by mail to all members of the City Council. The Intrabudget Adjustment Request attached to this Policy is to be used in making such requests. Page 1 of 1 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Intrabudget Adjustment Request Policy for the _POLICY #205 Mayor and City Council ADOPTED: January 16, 2007 AMENDED: Purpose To establish a procedure for the transfer of funds, from one account to another, for accounts within the control of the Mayor or a City Councilmember. Policy The 1ptrabudget A,djustment equest (IBAR) is the procedure that is used, to transfer an appropriatior,from one budgetary account to another„ For accounts within the control of,a Councilmember, the IBAN form, shall be signed by the Councilmember initiating the request. and also by the Mayor. For accounts within the control of the Mayor, the IBAR forth shall be signed by the Mayor, and also by jhe Vice-M,ayora The IBAR form is available from the Finance Department or via the Citv's Intranet page. R• elated Policy References Budget Manual P• rior Policy Amendments None Page 1 of 1 LDeleted: i [Deleted: a Deleted: r Deleted: utilized Deleted: funds Deleted: within a department Deleted: via an IBAR fonn available from: from the Finance Department or via the City's Intnmet page. Deleted: 1n the event via I ransfer of fiords from one account to another account for accounts within the control of Deleted: intrabudget adjustment I Deleted: request 1 ,( Deleted: intrabudget adjustment request 1 ','•..,( Deleted: a °,,(Deleted: m Deleted: In addition, a copy of the request shall be sent by mail to all members of the City Council Deleted: the Intrabudget Adjustment Request attached to this Policy is to be used in staking such requests1 Deleted: IBAR forms are available from the City's intranct site and via the Finance Department; CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Intrabudget Adjustment Request Policy for the POLICY #205 Mayor and City Council ADOPTED: January 16, 2007 AMENDED: Purpose To establish a procedure for the transfer of funds, from one account to another, for accounts within the control of the Mayor or a City Councilmember. Policy The Intrabudget Adjustment Request (IBAR) is the procedure that is used to transfer an appropriation from one budgetary account to another. For accounts within the control of a Councilmember, the MBAR form shall be signed by the Councilmember initiating the request, and also by the Mayor. For accounts within the control of the Mayor, the IBAR form shall be signed by the Mayor, and also by the Vice -Mayor. The IBAR form is available from the Finance Department or via the City's Intranet page. Related Policy References Budget Manual Prior Policy Amendments None Page 1 of 1 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Legislative and Judicial Platform POLICY #301 ADOPTED: February 24, 1991 AMENDED: November 18, 2008 Purpose To establish guidelines which allow staff to respond to proposed legislation and pending litigation quickly and effectively and to serve as broad statement of City policy on a variety of public issues. Policy The City Council shall adopt a legislative and judicial platform and annual legislative priorities, developed by the staff as policy parameters in order to respond to proposed legislation and pending litigation quickly. The direction provided in the legislative and judicial platform will encompass principles fundamental to the needs of the City. This platform shall be updated and revised by the Council as necessary. In addition, the Council shall adopt legislative priorities annually. These Council endorsed legislative priorities may address specific and pending regional, state, and federal policy issucs for the City of National City. Generally, the legislative priorities document shall include only those items of a direct and substantial impact on the municipal operations. The City of National City legislative platform and priorities formally establishes the City's position on pending legislative matters. With this policy guidance, the City Manager's Office and Legislative Liaison shall advocate for and against legislative matters as appropriate , without waiting for Council approval. The method of communication andlevel of engagement will be determined by the City Manager's Office based on the Council priorities, legislative climate, and urgency of the legislative proposal. The City Council will be provided with legislative updates and copies of correspondence sent on behalf of the City. Similarly, the platform and priorities allow the staff to provide input into the judicial system, such as by adding the City's name to amicus curiae briefs, by corresponding with appellate courts, or by supporting efforts of the League of California Cities' Legal Advocacy Committee, without waiting for Council approval. Written correspondence to the appellate courts or requests to participate in amicus curiae briefs will be signed by the City Attorney or designee, with a copy to the City Council. Council approval is required on those issues which do not fall within the parameters of the legislative and judicial platform or legislative priorities, unless scheduling and approval is not possible due to the emergency nature of the legislation or litigation or to the necessity of City action which prevents such scheduling in a timely manner. In such Page 1 of 2 cases, the City Manager shall determine the appropriate course of action as to legislative matters, after considering the recommendation of the Department Director and Legislative Liaison; and the City Attorney shall make such determinations on litigation issues. Timeline The Council shall periodically update the legislative and judicial platform as needed. The Council shall annually adopt legislative priorities. On or before November 15th, the City Manager shall submit legislative policy recommendations to the Council for review. On or before the final City Council Meeting in December, the City Council shall formally adopt the annual Legislative Priorities. On or before April 1st, the City Manager's office shall compile items to besubmittedfor inclusion in the state and/or federal budget. On or before June 1st, the City Council shall formally adopt the budget items for inclusion on behalf of National City. The priorities and timelines may be amended by the City Council from time to time when action on a matter appears to be of sufficient urgency that it would not be in the city's best interest to wait until the next legislative year. Related Policy References None Page 2 of 2 4 S .r CAL$FQRtdIA, .ems TI �'J ureosmoawTsO 2009 CITY OF NATIONAL CITY LEGISLATIVE AND JUDICIAL PLATFORM AND CORE PRIORITIES The National City Council urges the Legislature to: • Preserve and enhance the City's ability to deliver quality and cost-effective services to National City's residents and visitors. • Preserve and enhance the City Council's ability to serve National City residents by retaining local decision making authority and maintaining state legislative and voter commitments for revenue resources. LEGISLATIVE PLATFORM MUNICIPAL CORE LEGISLATIVE PRIORITIES The following eight core legislative priorities highlight issues that could significantly affect National City and legislative advocacy efforts which will be focused in these priority areas. I. HOME RULE I FISCAL SUSTAINABILITY Home Rule and Local Control The City believes strongly in the principles of home rule authority and local control and its ability to increase the effectiveness and efficiency of local government services. The City encourages the Legislature to respect and support home rule and opposes legislation that attempts to weaken municipal home rule authority and flexibility. Fiscal Sustainability The City supports the retention of local taxing authority, the maintenance of fiscally balanced revenue sources, and measures that would provide fiscal independence to cities. The City supports the full disbursement levels of existing revenue streams and directed funding sources including sales tax, property tax, transient occupancy tax (TOT) and vehicle in -lieu fees. The City opposes diversions and reallocations of these funds by the Legislature in a manner that would negatively affect local government. The City opposes unfunded mandates placed on local jurisdictions, and encourages the legislature to evaluate the fiscal impact such mandates will have on communities prior to considering the issue. II. INFRASTRUCTURE The City supports the retention of infrastructure funding and bonding for street projects, housing and infill infrastructure projects and parks. The city recognizes that funding for these key project areas will help to spur economic activity in National City. The City supports efforts to provide more flexibility in raising revenue for necessary infrastructure projects. The City supports federal and state economic stimulus initiatives that provide the necessary resources and funds to invest in necessary infrastructure projects to improve the transfer of goods and services throughout the region, create jobs and encourage economic development. Ill. TRANSPORTATION The City believes the movement of goods and people is vital to continued economic success and to the maintenance of a high quality of life. In order to preserve these, the City encourages the Legislature to invest in the maintenance and expansion of the State's multi -modal transportation network. The City supports regional coordination in transportation planning but opposes efforts that limit local control in the transportation decision -making process. The City supports measures to finance local and regional multi -modal transportation improvements and to enhance transportation funding equity. The City opposes proposals that would adversely affect the quality of National City and its surrounding area. Furthermore, the council supports efforts that grant cities and towns the additional ability to provide for transportation improvements. IV. PORT RELATED LEGISLATION • 2 The City and the Port of San Diego have attempted to work cooperatively to address the disparity that has long existed between the regional benefits of the Port and the unique local impacts of the Port on the City and its residents. The City is committed to pursuing public policy that would achieve the balance necessary between thc Port, the Working Waterfront and National City consistent with the following six principles agreed upon by the parties: l . Protection of Maritime Uses 2. Enhancement of the Working Waterfront 3. Environmental Compliance 4. Public and/or Visitor Serving Amenities 5. Financial Benefits to the Port and National City 6. Public Participation within National City Generally, the City is supportive of any legislative measures that are consistent with the policies and intent of one or more of the foregoing principles. Further, thc City Council supports efforts that grant Port communities the ability to fully address the economic and environmental impacts directly and indirectly attributed to the Port. National City is also supportive of public policy that provides financial incentives to Port communities for the preservation and expansion maritime activities within its jurisdiction. V. ENERGY CONSERVATION & ENVIRONMENTAL PROTECTION The City recognizes the importance of working cooperatively with other governmental and private sector entities to implement and manage efficient, cost-effective, and sound environmental programs and services that secure clean air, water and land. The City supports appropriate legislation and regulation that promotes pollution prevention, supports energy conservation efforts and encourages green development without imposing unfunded mandates. The City opposes efforts that place a severe financial burden on municipalities. VI. LAND USE PLANNING The City supports maintaining local authority in land use planning issues and supports legislative efforts that promote more orderly growth and opposes efforts that impede growth management, including the preservation of local authority to set land use policies. The City supports efforts to assist local governments in implementing sustainable development practices. The City opposes legislation that would restrict a municipality's ability to redevelop under -performing areas. VII. ECONOMIC DEVELOPMENT The City supports efforts to enhance the range of economic development mechanisms at a municipality's disposal that would strengthen the abilities of local agencies to prepare for, and implement growth, development, redevelopment, conservation and beautification projects. The City opposes any attempt to limit local control over, or ability to execute economic development projects including through the diversion of redevelopment funding. The City opposes any state or federal proposals that reduce economic investment opportunities at the local level. This includes reductions and restrictions to hiock grants and housing subsidies. VIII. AFFORDABLE HOUSING The City recognizes the importance of housing for all income levels as critical to the balanced and healthy growth of the city and its communities. The City supports affordable housing efforts as a key component to workforce recruitment and retention. This includes support for federal and state participation and financial support of programs to provide adequate housing for the elderly, disabled and low income persons throughout the community. LEGISLATIVE PLATFORM CONTINUED The following platform statements address additional legislative issues that may arise, and appear regularly at the federal and state Levels. GOVERNMENTAL PUBLIC LIABILITY POLICY The City supports efforts to reinforce public entity design and discretionary act immunity. The City supports efforts to abolish lump -sum awards for damages and to substitute installment payments projected over the plaintiffs life span, to cease at time of death. The City supports efforts to develop statutory provisions calling for the reimbursement of all public entity defense costs and expenditures incurred in the defense of frivolous and spurious claims and lawsuits. The City supports efforts to change the legal principal of "joint and several liability" to protect, ensure and otherwise provide that the City will not be a "deep pocket" liability target. The City opposes efforts to further erode governmental tort immunity. The City opposes any efforts to remove or weaken any statutory.; time limits as to the filing and serving of claims and lawsuits as well as any efforts to open public entities to liability for punitive or exemplary damages. The City opposes any efforts to expand situations in which public entities may liable to pay for litigants' attorneys' fees or other litigation expenses. EMPLOYEE RELATIONS AND BENEFITS The City supports efforts that provide the City with necessary resources and authority to establish appropriate working conditions and benefits to its employees. This includes preserving and enhancing equal employment , opportunities for all people seeking employment, and opposing efforts that remove the local decision making authority in employee issues. The City is supportive of efforts that result in improved public and private sector labor management relations and opposes efforts that impose state mandates. The City supports efforts to prevent abuses within the compensation system, which in turn results in increased costs to the municipality. PUBLIC SAFETY AND EMERGENCY SERVICES The City supports initiatives to preserve and enhance the ability of local governments to strategically plan for and respond to emergencies and efforts to ensure that the greatest level of public safety and emergency services are provided to the community without creating an unfunded mandate The City supports the retention of revenue streams for funding public safety employees, disaster preparedness, crime and fire prevention and suppression, emergency medical services and public safety training TELECOMMUNICATIONS The City supports efforts that ensure consumer access to telecommunications services in an efficient and cost effective manner while retaining local government's authority. This includes retaining local government's ability to negotiate franchise agreements, the ability to regulate the use of public rights -of -way and collect appropriate revenues in order to maximize benefits to the consumer. CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Legislative and Judicial Platform POLICY #301 ADOPTED: February 24, 1991 AMENDED:, Purpose To establish guidelines which allow staff to respond to proposed legislation and pending litigation quickly and effectively and to serve as broad statement of City policy on a variety of public issues. Policy The City Council shall adopt a legislative and judicial platform and annual legislative priorities, developed by ,staff as policy parameters in order to respond to proposed legislation and pending litigation quickly. The direction provided in the legislative and judicial platform will encompass principles fundamental to the needs of the City. This platform shall be updated and revised by the Council as necessary. In addition, the Council shall adopt legislative priorities annually. These Councilndorsed legislative priorities may address specific and pending regional, state, and federal policy issues for the City of National City. Generally, the legislative priorities document shall include only those items of a direct and substantial impact on municipal operations. The City of National City legislative platform and priorities formally establishes the City's position on pending legislative matters. With this policy guidance, the City Manager's Office „shall advocate for and against legislative matters as appropriate without waiting for Council approval. The method of communication and level of engagement will be determined by the City Manager's Office based on the Council priorities, legislative climate, and urgency of the legislative proposal. The City Council will be provided with legislative updates and copies of correspondence sent on behalf of the City. ,milarly, the platform and priorities allow the staff to provide input into the judicial system, such as by adding the City's name to amicus curiae briefs, by corresponding with appellate courts, or by supporting efforts of the League of California Cities' Legal Advocacy Committee, without waiting for Council approval. Written correspondence to the appellate courts or requests to participate in amicus curiae briefs will be signed by the City Attorney or designee. with a copy to the City Council. Council approval is required on those issues which do not fall within the parameters of the legislative and judicial platform or legislative priorities, unless scheduling and approval is not possible due to the emergency nature of the legislation or litigation or to the necessity of City action which prevents such scheduling in a timely manner In such cases, the City Manager shall determine the appropriate course of action as to legislative Page 1 of 8 Deleted: Noscmbcr 18, 2008 J { Deleted: the { Deleted: Deleted: the { Deleted: and Leg slative Liaison ir Deleted:l 11 l Deleted: S matters, after considering the recommendation of the Department Director; and the City Attorney shall make such determinations on litigation issues. Timeline The Council shall periodically update the legislative and judicial platform as needed. The Council shall annually adopt legislative priorities. On or before November 15th, the City Manager shall submit legislative policy recommendations to the Council for review. On or before the final City Council Meeting in December, the City Council shall formally adopt the annual Legislative Priorities. On or before April lat, the City Manager's office shall compile items to be submitted for inclusion in the state and/or federal budget. On or before June VI, the City Council shall formally adopt the budget items for inclusion on behalf of National City. The priorities and timelines may be amended by the City Council from time to time when action on a matter appears to be of sufficient urgency that it would not be in the city's best interest to wait until the next legislative year. Related Policy References Legislative and Judicial Platform Memo attached as part of this policy, Prior Policy Amendments November 18, 2008 Page 2 of 8 Deleted: and Legislative Liaison ( Deleted: None CALIFORNIA •+ NAT1O t 8 olipouirso 2009 CITY OF NATIONAL CITY LEGISLATIVE AND JUDICIAL PLATFORM AND CORE PRIORITIES The National City Council urges the Legislature to: • Preserve and enhance the City's ability to deliver quality and cost-effective services to National City's residents and visitors. • Preserve and enhance the City Council's ability to serve National City residents by retaining local decision making authority and maintaining state legislative and voter commitments for revenue resources. LEGISLATIVE PLATFORM MUNICIPAL CORE LEGISLATIVE PRIORITIES The following eight core legislative priorities highlight issues that could significantly affect National City and legislative advocacy efforts which will be focused in these priority areas. I. HOME RULE I FISCAL SUSTAINABILITY Home Rule and Local Control The City believes strongly in the principles of home rule authority and local control and its ability to increase the effectiveness and efficiency of local government services. The City encourages the Legislature to respect and support home rule and opposes legislation that attempts to weaken municipal home rule authority and flexibility. Fiscal Sustainabilitv The City supports the retention of local taxing authority, the maintenance of fiscally balanced revenue sources, and measures that would provide fiscal independence to cities. Page 3 of 8 The City supports the full disbursement levels of existing revenue streams and directed funding sources including sales tax, property tax, transient occupancy tax (TOT) and vehicle in -lieu fees. The City opposes diversions and reallocations of these funds by the Legislature in a manner that would negatively affect local government. The City opposes unfunded mandates placed on local jurisdictions, and encourages the legislature to evaluate the fiscal impact such mandates will have on communities prior to considering the issue. II. INFRASTRUCTURE The City supports the retention of infrastructure funding and bonding for street projects, housing and infill infrastructure projects and parks. The city recognizes that funding for these key project areas will help to spur economic activity in National City. The City supports efforts to provide more flexibility in raising revenue for necessary infrastructure projects. The City supports federal and state economic stimulus initiatives that provide the necessary resources and funds to invest in necessary infrastructure projects to improve the transfer of goods and services throughout the region, create jobs and encourage economic development. III. TRANSPORTATION The City believes the movement of goods and people is vital to continued economic success and to the maintenance of a high quality of life. In order to preserve these, the City encourages the Legislature to invest in the maintenance and expansion of the State's multi -modal transportation network. The City supports regional coordination in transportation planning but opposes efforts that limit local control in the transportation decision -making process. The City supports measures to finance local and regional multi -modal transportation improvements and to enhance transportation funding equity. The City opposes proposals that would adversely affect the quality of National City and its surrounding area. Furthermore, the council supports efforts that grant cities and towns the additional ability to provide for transportation improvements. Page 4 of 8 IV. PORT RELATED LEGISLATION The City and the Port of San Diego have attempted to work cooperatively to address the disparity that has long existed between the regional benefits of the Port and the unique local impacts of the Port on the City and its residents. The City is committed to pursuing public policy that would achieve the balance necessary between the Port, the Working Waterfront and National City consistent with the following six principles agreed upon by the parties: 1. Protection of Maritime Uses 2. Enhancement of the Working Waterfront 3. Environmental Compliance 4. Public and/or Visitor Serving Amenities 5. Financial Benefits to the Port and National City 6. Public Participation within National City Generally, the City is supportive of any legislative measures that are consistent with the policies and intent of one or more of the foregoing principles. Further, the City Council supports efforts that grant Port communities the ability to fully address the economic and environmental impacts directly and indirectly attributed to the Port. National City is also supportive of public policy that provides financial incentives to Port communities for the preservation and expansion maritime activities within its jurisdiction. V. ENERGY CONSERVATION & ENVIRONMENTAL PROTECTION The City recognizes the importance of working cooperatively with other governmental and private sector entities to implement and manage efficient, cost-effective, and sound environmental programs and services that secure clean air, water and land. The City supports appropriate legislation and regulation that promotes pollution prevention, supports energy conservation efforts and encourages green development without imposing unfunded mandates. The City opposes efforts that place a severe financial burden on municipalities. VI. LAND USE PLANNING The City supports maintaining local authority in land use planning issues and supports legislative efforts that promote more orderly growth and opposes efforts that impede growth management, including the preservation of local authority to set land use policies. The City supports efforts to assist local governments in implementing sustainable development practices. Page 5 of 8 The City opposes legislation that would restrict a municipality's ability to redevelop under -performing areas. VII. ECONOMIC DEVELOPMENT The City supports efforts to enhance the range of economic development mechanisms at a municipality's disposal that would strengthen the abilities of Local agencies to prepare for, and implement growth, development, redevelopment, conservation and beautification projects. The City opposes any attempt to limit local control over, or ability to execute economic development projects including through the diversion of redevelopment funding. The City opposes any state or federal proposals that reduce economic investment opportunities at the local level. This includes reductions and restrictions to block grants and housing subsidies. VIII. AFFORDABLE HOUSING The City recognizes the importance of housing for all income levels as critical to the balanced and healthy growth of the city and its communities. The City supports affordable housing efforts as a key component to workforce recruitment and retention. This includes support for federal and state participation and financial support of programs to provide adequate housing for the elderly, disabled and low income persons throughout the community. LEGISLATIVE PLATFORM CONTINUED The following platform statements address additional legislative issues that may arise, and appear regularly at the federal and state levels. GOVERNMENTAL PUBLIC LIABILITY POLICY The City supports efforts to reinforce public entity design and discretionary act immunity. The City supports efforts to abolish lump -sum awards for damages and to substitute installment payments projected over the plaintiffs life span, to cease at time of death. Page 6 of 8 The City supports efforts to develop statutory provisions calling for the reimbursement of all public entity defense costs and expenditures incurred in the defense of frivolous and spurious claims and lawsuits. The City supports efforts to change the legal principal of "joint and several liability" to protect, ensure and otherwise provide that the City will not be a "deep pocket" liability target. The City opposes efforts to further erode governmental tort immunity. The City opposes any efforts to remove or weaken any statutory time limits as to the filing and serving of claims and lawsuits as well as any efforts to open public entities to liability for punitive or exemplary damages. The City opposes any efforts to expand situations in which public entities may be liable to pay for litigants' attorneys' fees or other litigation expenses. EMPLOYEE RELATIONS AND BENEFITS The City supports efforts that provide the City with necessary resources and authority to establish appropriate working conditions and benefits to its employees. This includes preserving and enhancing equal employment opportunities for all people seeking employment, and opposing efforts that remove the local decision making authority in employee issues. The City is supportive of efforts that result in improved public and private sector labor management relations and opposes efforts that impose state mandates. The City supports efforts to prevent abuses within the compensation system, which in turn results in increased costs to the municipality. PUBLIC SAFETY AND EMERGENCY SERVICES The City supports initiatives to preserve and enhance the ability of local governments to strategically plan for and respond to emergencies and efforts to ensure that the greatest level of public safety and emergency services are provided to the community without creating an unfunded mandate The City supports the retention of revenue streams for funding public safety employees, disaster preparedness, crime and fire prevention and suppression, emergency medical services and public safety training Page 7 of 8 TELECOMMUNICATIONS The City supports efforts that ensure consumer access to telecommunications services in an efficient and cost effective manner while retaining local government's authority. This includes retaining local government's ability to negotiate franchise agreements, the ability to regulate the use of public rights -of -way and collect appropriate revenues in order to maximize benefits to the consumer. Page 8 of 8 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Legislative and Judicial Platform POLICY #301 ADOPTED: February 24, 1991 AMENDED: Purpose To establish guidelines which allow staff to respond to proposed legislation and pending litigation quickly and effectively and to serve as broad statement of City policy on a variety of public issues. Policy The City Council shall adopt a legislative and judicial platform and annual legislative priorities, developed by staff as policy parameters in order to respond to proposed legislation and pending litigation quickly. The direction provided in the legislative and judicial platform will encompass principles fundamental to the needs of the City. This platform shall be updated and revised by the Council as necessary. In addition, the Council shall adopt legislative priorities iannuajly, These Council endorsed legislative priorities may address specific and pending regional," state,and federal policy issues for the City of National City. Generally, the legislative priorities document shall include only those items of a direct and substantial impact on municipal operations. The City of National City legislative platform and priorities formally establishes the City's position on pending legislative matters. With this policy guidance, the City Manager's Office shall advocate for and against legislative matters as appropriate without waiting for Council approval. The method of communication and level of engagement will be determined by the City Manager's Office based on the Council priorities, legislative climate, and urgency of the legislative proposal. The City Council will be provided with legislative updates and copies of correspondence sent on behalf of the City. Similarly, the platform and priorities allow the staff to provide input into the judicial system, such as by adding the City's name to amicus curiae briefs, by corresponding with appellate courts, or-,y supporting efforts of the League of California Cities' Legal Advocacy Committee, without waiting for Council approval. Written correspondence to the appellate courts or requests to participate in amicus curiae briefs will be signed by the City Attorney or designee, with a copy to the City Council. Council approval is required on those issues which do not fall within the parameters of the legislative and judicial platform or legislative priorities, unless scheduling and approval is not possible due to the emergency nature of the legislation or litigation or to the necessity of City action which prevents such scheduling in a timely manner. In such cases, the City Manager shall determine the appropriate course of action as to legislative Page 1 of 8 TITLE: Legislative and Judicial Platform POLICY #301 ADOPTED: February 24, 1991 AMENDED: matters, after considering the recommendation of the Department Director; and the City Attorney shall make such determinations on litigation issues. Timeline The Council shall periodically update the legislative and judicial platform as needed. The Council shall annually adopt legislative priorities. On or before November 15°i, the City Manager shall submit legislative policy recommendations to the Council for review. On or before the final City Council Meeting in December, the City Councilshall formally adopt the annual Legislative Priorities. On or before April I t the City Manager's office shallcompile items to be submitted for inclusion in the state and/or federal budget. On or before June 1st, the City Council shall formally adopt the budget items for inclusion on behalf of National City. The priorities and timelines may be amended by the City Council from time to time when action on a matter appears to be of sufficient urgency that it would not be in the city's best interest to wait until the next legislative year. Related Policy References, Legislative and Judicial Plat Prior Policy Amendments November 18, 2008 attached as part of this policy Page2of8 •►- CI�LiFQ�itt ,TION1Ciry $ -may 2009 CITY OF NATIONAL CITY LEGISLATIVE AND JUDICIAL PLATFORM AND CORE PRIORITIES The National City Council urges the Legislature to: • Preserve and enhance the City's ability to deliver quality and cost-effective services to National City's residents and visitors. • Preserve and enhance the City Council's ability to serve National City residents by retaining local decision making authority and maintaining state legislative and voter commitments for revenue resources. LEGISLATIVE PLATFORM MUNICIPAL CORE LEGISLATIVE PRIORITIES The following eight core legislative priorities highlight issues that could significantly affect National City and legislative advocacy efforts which will be focused in these priority areas. 1. HOME RULE I FISCAL SUSTAINABILITY Home Rule and Local Control The City believes strongly in the principles of home rule authority and local control and its ability to increase the effectiveness and efficiency of local government services. The City encourages the Legislature to respect and support home rule and opposes legislation that attempts to weaken municipal home rule authority and flexibility. Fiscal Sustainabilty The City supports the retention of local taxing authority, the maintenance of fiscally balanced revenue sources, and measures that would provide fiscal independence to cities. Page 3 of 8 The City supports the full disbursement levels of existing revenue streams and directed funding sources including sales tax, property tax, transient occupancy tax (TOT) and vehicle in -lieu fees. The City opposes diversions and reallocations of these funds by the Legislature in a manner that would negatively affect local government. The City opposes unfunded mandates placed on local jurisdictions, and encourages the legislature to evaluate the fiscal impact such mandates will have on communities prior to considering the issue. II. INFRASTRUCTURE The City supports the retention of infrastructure funding and bonding for street projects, housing and infill infrastructure projects and parks. The city recognizes that funding for these key project areas will help to spur economic activity in National City.;, The City supports efforts to provide more flexibility in raising revenue for necessary infrastructure projects. The City supports federal and state economic stimulus initiatives that provide the necessary resources and funds to invest in necessary infrastructure projects to improve the transfer of goods and services throughout the region, create jobs and encourage economic development. III. TRANSPORTATION The City believes the movement of goods and people is vital to continued economic success and to the maintenance of a high quality of life. In order to preserve these, the City encourages the Legislature to invest in the maintenance and expansion of the State's multi modal transportation network. The City supports regional coordination in transportation planning but opposes efforts that limit local control in the transportation decision -making process. The City supports measures to finance local and regional multi -modal transportation improvements and to enhance transportation funding equity. The City opposes proposals that would adversely affect the quality of National City and its surrounding area. Furthermore, the council supports efforts that grant cities and towns the additional ability to provide for transportation improvements. Page 4 of 8 IV. PORT RELATED LEGISLATION The City and the Port of San Diego have attempted to work cooperatively to address the disparity that has long existed between the regional benefits of the Port and the unique local impacts of the Port on the City and its residents. The City is committed to pursuing public policy that would achieve the balance necessary between the Port, the Working Waterfront and National City consistent with the following six principles agreed upon by the parties: 1. Protection of Maritime Uses 2. Enhancement of the Working Waterfront 3. Environmental Compliance 4. Public and/or Visitor Serving Amenities 5. Financial Benefits to the Port and National City 6. Public Participation within National City Generally, the City is supportive of any legislative measures that are consistent with the policies and intent of one or more of the foregoing principles. Further, the City Council supports efforts that grant Port communities the ability to fully address the economic and environmental impacts directly and indirectly attributed to the Port. National City is also supportive of public policy that provides financial incentives to Port communities for the preservation and expansion maritime activities within its jurisdiction. V. ENERGY CONSERVATION & ENVIRONMENTALPROTECTION The City recognizes the importance of working cooperatively with other governmental and private sector entities to implement and, manage efficient, cost-effective, and sound environmental programs and services that secure clean air, water and land. The City supports appropriate legislation and regulation that promotes pollution prevention, supports energy conservation efforts and encourages green development without imposing unfundedmandates. The City opposes efforts that place a severe financial burden on municipalities. VI. LAND USE PLANNING The City supports maintaining local authority in land use planning issues and supports legislative efforts that promote more orderly growth and opposes efforts that impede growth management, including the preservation of local authority to set land use policies. The City supports efforts to assist local governments in implementing sustainable development practices. Page 5 of 8 The City opposes legislation that would restrict a municipality's ability to redevelop under -performing areas. VII. ECONOMIC DEVELOPMENT The City supports efforts to enhance the range of economic development mechanisms at a municipality's disposal that would strengthen the abilities of local agencies to prepare for, and implement growth, development, redevelopment, conservation and beautification projects. The City opposes any attempt to limit local control over, or ability to execute economic development projects including through the diversion of redevelopment funding. The City opposes any state or federal proposals that reduce economic investment opportunities at the local level. This includes reductions and restrictions to block grants and housing subsidies. VIII. AFFORDABLE HOUSING The City recognizes the importance of housing for all income levels as critical to the balanced and healthy growth of the city and its communities. The City supports affordable housing efforts as a key component to workforce recruitment and retention. This includes support for federal and state participation and financial support of programs to provide adequate housing for the elderly, disabled and low income persons throughout the community. LEGISLATIVE PLATFORM CONTINUED The following platform statements address additional legislative issues that may arise, and appear regularly at the federal and state levels. GOVERNMENTAL PUBLIC LIABILITY POLICY The City supports efforts to reinforce public entity design and discretionary act immunity. The City supports efforts to abolish lump -sum awards for damages and to substitute installment payments projected over the plaintiffs life span, to cease at time of death. Page 6 of 8 The City supports efforts to develop statutory provisions calling for the reimbursement of all public entity defense costs and expenditures incurred in the defense of frivolous and spurious claims and lawsuits. The City supports efforts to change the legal principal of "joint and several liability" to protect, ensure and otherwise provide that the City will not be a "deep pocket" liability target. The City opposes efforts to further erode governmental tort immunity. The City opposes any efforts to remove or weaken any statutory time limits as to the filing and serving of claims and lawsuits as well as any efforts to open public entities to liability for punitive or exemplary damages. The City opposes any efforts to expand situations in which public entities may be liable to pay for litigants' attorneys' fees or other litigation expenses. EMPLOYEE RELATIONS AND BENEFITS The City supports efforts that provide the City with necessary resources and authority to establish appropriate working conditions and benefits to its employees. This includes preserving and enhancing equal employment opportunities for all people seeking employment, and opposing efforts that remove the local decision making authority in employee issues. The City is supportive of efforts that result in improved public and private sector labor management relations and opposes efforts that impose state mandates. The City supports efforts to prevent abuses within the compensation system, which in turn results in increased costs to the municipality. PUBLIC SAFETY AND EMERGENCY SERVICES The City supports initiatives to preserve and enhance the ability of local governments to strategically plan for and respond to emergencies and efforts to ensure that the greatest level of public safety and emergency services are provided to the community without creating an unfunded mandate The City supports the retention of revenue streams for funding public safety employees, disaster preparedness, crime and fire prevention and suppression, emergency medical services and public safety training Page 7 of 8 TELECOMMUNICATIONS The City supports efforts that ensure consumer access to telecommunications services in an efficient and cost effective manner while retaining local government's authority. This includes retaining local government's ability to negotiate franchise agreements, the ability to regulate the use of public rights -of -way and collect appropriate revenues in order to maximize benefits to the consumer. Page 8 of 8 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Procedures and Requirements for Development Agreements POLICY # 402 ADOPTED: September 6, 2011 AMENDED: 1.0 Purpose To adopt regulations establishing procedures and requirements development agreements. 2.0 Policy Under a development agreement, both the City and the developer commit themselves to proceed with a development in accordance with the terms of the agreement. The city may agree to process further applications in accordance with the City's building regulations and planning and zoning ordinances, regulations, and standards in effect at the time of the agreement, and not to subject the development to ''changes in those ordinances, regulations and standards for a specified time. In return, the developer may agree to construct specific improvements, provide public facitesand services, pay development impact fees, develop according to a specified time schedule or make other commitments that the City might otherwise have no authority to require a developer to perform. A development agreement is enforceable despiteany changes to the General Plan, a specific plan, zoning, subdivision, or budding regulations. The development agreement may provide that the developer shall be subject to future changes in developei t impact fees. Any fees received or costs recovered by the City shall comply with Government Code Section 66006. f'X A development agreement is distinguishable from a "disposition and development agreement" entered into between a developer and a redevelopment agency, wherein the agency; typically participates financially in the project in some way. The commitments made by a developer under a development agreement may be different in kind and scope than the exactions imposed by a city under the Mitigation Fee Act (Government Code Section 66000, et. seq.), which authorizes a city to impose impact fees on a development project involving the issuance of a permit for construction, but not a permit to operate; such fees are collected for the purpose of defraying the cost of public facilities related to the development project. consideration of 3.0 References Government Code Section 65864-65869.5 4.0 Requirements for Applications and Agreements Page 1 of 8 4.1 Forms and Information a. Thc City Attorney shall prescribe the form for each application and notice required under this Policy for the preparation and implementation of development agreements. b. The Development Services Director may require an applicant to submit such information and supporting data as the Director considers necessary to process the application. 4.2 Fees The City Council may include in the City's Fee Schedule the fees and charges imposed for the filing and processing of each application and document required under this Policy. 4.3 Qualification as an Applicant Only a qualified applicant may file an application to enter into a development agreement with the City. A qualified applicant is a person who has a legal or equitable interest in the real property that is the subject of the agreement. "Applicant" includes an authorized agent of the person who has such an interest. Thc Development Services Director may require an applicant to submit proof of his or her interest in the real property and of the authority of the agent to act for the applicant. Before the application is processed, the City Attorney shall determine the sufficiency of the applicant's interest in the real property to enter into the agreement. 4.4 Form and Contents of Development Agreement In applying for a development agreement, a developer may submit a form of agreement prepared by the developer. Whether prepared by the City or the developer, the agreement shall specify the following: a. The duration of the agreement; b. The permitted uses of the real property; c. The density or intensity of use; d. The maximum height and size of proposed structures; e. Provisions for reservation or dedication of land for public purposes; f. The nature and timing of construction of improvements; g. The date by which construction shall commence; h. The date by which construction of the development and each phase of the development shall commence; Page 2 of 8 i. Other commitments by the developer including, but not limited to, an agreement to construct specific improvements, provide public facilities and services, pay development impact fees, or make other commitments that the City requires; j. A commitment by the City to process the developer's application in accordance with the City's building regulations and planning and zoning ordinances, regulations, and standards in effect at the time the agreement is entered into, and not to subject the development to changes in such ordinances, regulations, and standards for a specified period of time; and k. For phased developments, and developments of long duration, the City and the developer may agree that the period of time for which the development will not be subject to changes in the City's building, planning, and zoning ordinances and regulations will be for a specified time that is less than the term of the agreement. 1. Other conditions, terms, restrictions, and requirements provided they do not prevent the development of the real property for the uses and to the densityor intensity of development set forth in the agreement. 4.5 Review of Applications; Submission to Planning Commission. The Development Services Director shall review the application and shall reject it if it is inaccurate or incomplete for processing. If the Development Services Director finds the application is complete and contains the information necessary to complete the development agreement, he or she shall accept it for filing. When both the application and agreement are determined by the Development (Services Director to be complete, the Development Services Director shall submit the agreement to the Secretary of the Planning Commission, who shall' place the agreement on a Commission agenda for a public hearing to consider the agreement for approval. At the time the Development Services Director submits the agreement to the Secretary of the Planning Commission, City Attorney shall submit with the agreement a report indicating whether or not the agreement would be consistent with the General Plan and any applicable specific plan. 4.6 Hearing by City Council Afterthe development agreement is considered by the Planning Commission, the Develo ment Services Director shall cause to have it placed on a City Council agenda to have it considered or approval by the Council after public hearing. The City Attorney shall submit4ith4lie agreement a report indicating whether or not the agreement would be consistent with the General Plan and any applicable specific plan. 4.7 Concurrent Processing A development agreement may be processed concurrently with other applications for development for the same property. 4.8 Other Parties Page3 of 8 In addition to the City and the developer, any federal, state, or local government agency may be included as a party to the development agreement under the authority of the Joint exercise of Powers Act (Government Code Section 6500 et seq.) or other authority. 5.0 Notices and Hearings 5.1 Notice of Intention The City Clerk shall give notice of the intention to consider adoption of a development agreement at least ten days before the public hearings of the Planning Commission and the City Council. The notice shall be given as provided in Section 65091 of the Government Code. 5.2 Form of Notice The form of Notice of Intention to consider adoption of a development a reement shall contain: a. The time and place of the hearing; h. A general explanation of the matter to be considered, including a general description of the area affected; and c. Other information required by specific provisions of this Policy or that the Director of Development Services considers necessary or desirable. 5.3 Manner of Notice Notice of the intention to consider adoption of adevelopment agreement shall be given as provided in Government Code Section 65091. 5.4 Failure to Receive Notice The failure of any person or entity to receive notice shall not affect the authority of the City to enter into a development agreement, or affect the validity of a development agreement 5.5 Rules Governing Conduct of Public Hearings A public hearing at;which a development agreement is considered shall be conducted as nearly as possible in accordance with the procedural standards adopted under GovernmentCode Section 65804 for the conduct of zoning hearings. Each person interested in the matter shall be given an opportunity to be heard. The developer has the burden of proof at the public hearing. 6.0 Standards of Review, Findings, and Decision 6.1 Recommendation by Planning Commission After the public hearing is held by the Planning Commission, the Commission shall adopt a resolution making its recommendation to the City Council as to whether the development agreement should be approved. The resolution shall set forth the reasons for Page4of8 the Commission's recommendation, including findings setting forth the Commission's determinations regarding the following: a. Whether the development agreement is consistent with the objectives, policies, land uses, and programs specified in the General Plan and any applicable specific plan; b. Whether the development agreement is compatible with the uses and regulations for the zone in which the property is located; c. Whether the development agreement is in conformity with the public convenience, general welfare, and good land use practice; d. Whether the development agreement will not be detrimental to the health, safety, and general welfare; e. For a development agreement that is to be entered into in connection with a subdivision, as defined iii Government Code Section 66473.7, whether the agreement provides that any tentative map will comply with the provisions of that section. f Whether the development agreement offers to the City 'Substantial benefit in exchange for the vested right benefit granted to the developer 6.2 Decision by City Council a. After receipt of the recommendation of the Planning Commission, the City Council shall hold a public hearing. ' 'he Council may_- accept, disapprove, or modify the recommendation of the Planning Commission. The Council may, but is not required to, refer matters not previously considered by the Planning Commission during its hearing back to the Planning Commission fobreport and recommendation. The Planning Commission shall''Consi5Jer at a public meeting all matters referred back to it by the City Council and may, but is not required to, hold a public hearing on such matters. b. The City Council may not approve the development agreement unless it finds that the agreement is in comphaneewith the standards set forth in Section 6.1. c. The decision whether to enter into a development agreement is within the sole discretion of the City Council. 6.3 Approval of Development Agreement If the City Council approves the development agreement, it shall do so by the adoption of an ordinance. The City may enter into the agreement after the ordinance approving the agreement takes effect. 7.0 Amendment and Cancellation of Development Agreement by Mutual Consent 7.1 Initiation of Amendment or Cancellation Page5of8 A development agreement may be amended, or cancelled in whole or in part, by mutual consent of the parties to the agreement or their successors in interest. Either party may initiate such amendment or cancellation. 7.2 Procedure a. The procedure for proposing and adopting an amendment to or cancellation in whole or in part of the development agreement is the same as the procedure for entering into an agreement in the first instance, as set forth in Sections 5.0 and 6.0 of this Policy. b. If the City initiates the proposed amendment to or cancellation in whole or in part of the development agreement, it shall first give notice to the developer of its intention to initiate such proceedings at least 30 days in advance of the giving of the Notice of Intention to consider the amendment or cancellation required by Section5.0. 8.0 Recordation 8.1 Recordation of Development Agreement, Amendment or Cancellation a. Within 10 days after the City enters into the development agreement, the City Clerk shall have the agreement recorded with the County Recorder. The agreement shall run with the land and inure to the benefit of and bind successors in interest. h. If the City and the developer or the developer's successor in interest amend or cancel the agreement as provided in Government Code Section 65868, or if the City terminates or modifies the agreement as provided in Government Code Section 65865.1 for failure of the applicant to comply in good faith with the terms or conditions of the agreement, the City Clerk shall cause notice of such action to be recorded with the County Recorder within 10 days. 9.0 Periodic Review 9.1 Time for Initiation of Review The City Council shall review the development agreement at a public hearing at least every 12 months, from the date the agreement is entered into. The time period before which review may occur may be shortened either by agreement of the City and the developer or by initiation in one or more of the following ways: a. Recommendation of the Director of Development Services; or b. Action of the City Council. The failure to conduct a review in any 12 month period does not preclude a later review. 9.2 Notice of Review The City shall begin the review proceeding by giving notice that the City Council intends to undertake a review of the development agreement. 9.3 Delegation or Referral to Planning Commission Page 6 of 8 At the time the development agreement is reviewed by the City Council, the Council may: a. Review the development agreement itself; or b. Delegate the review to the Planning Commission for a determination; or c. Refer the review to the Planning Commission for a recommendation as to the action to be taken by the City Council. 9.4 Procedure The notice and hearing procedure for review of the development agreement is the same as the procedure for entering into the agreement in the first instance, as set forth in Section 5.0 of this Policy. 9.5 Public Hearing The decision -making body shall conduct a public hearing at which the developer must demonstrate good faith compliance with the terms of the agreement. The burden of proof on this issue is with the developer. At the time and place set for hearing, the developer shall be given an opportunity to be heard. 9.6 Findings a. At the conclusion of the public hearing, the decision -making body shall adopt a resolution making findings based on substantial evidence as to whether or not the developer has, for the period of time under review, complied in good faith with the terms and conditions of the development agreement, b. If the decision -making body finds and determines on the basis of substantial evidence that the developer has complied in good faith with the terns and conditions of the development agreement during the period of time under review, the review for that period is concluded. c. If the -decision -making body" finds and determines on the basis of substantial evidence that the develoas not complied in good faith with the terms and conditions of the development agreement during the period of time under review, it shall in its resolution modify=or terminate the agreement. If the agreement is modified, the decision -making body may impose those conditions to its action as .it considers necessary to protect the interests of the=City. If the decision -making body determines to modify the agreement, it shall do so only in a manner reasonably related to addressing the lack of compliance identified under Subsection (b) of this Section. d. if the review is conducted by the Planning Commission for a determination the developer or any interested person may appeal the determination under Subsections (b) and (c) of this Section to the City Council in accordance with the City's procedures for appeals to the City Council. 9.7 Decision of the City Council Final Page 7 of 8 In all proceedings under Section 9.0, the decision of the City Council shall be final. 9.8 Costs of Review The developer shall pay the City's reasonable costs for staff time expended on the annual review. 10.0 Judicial Review 10.1 Standard of Review Judicial review of the initial approval by the City of a development agreement shall be by writ of mandate under Code of Civil Procedure Section 1085. Judicial review of a City action taken pursuant to this Policy, other than the initial approval of development agreements, shall be by writ of mandamus under Code of Civil Procedure Section 1094.5. Any action or proceeding to attack, review, set aside, void, or annul any decision of the City to approve or amend a development agreement under this Policy shall be commenced within 90 days of the date of the decision. Page 8 of 8 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Procedures and Requirements for POLICY # 402 Development Agreements ADOPTED: September 6, 2011 AMENDED: purpose To adopt regulations establishing procedures and requirements for consideration of development agreements. Policy Under a development agreement, both the City and the developer commit themselves to proceed with a development in accordance with the terms of the agreement. The city may agree to process further applications in accordance with the City's building regulations and planning and zoning ordinances, regulations, and standards in effect at the time of the agreement, and not to subject the development to changes in those ordinances, regulations and standards for a specified time. In return, the developer may agree to construct specific improvements, provide public facilities and services, pay development impact fees, develop according to a specified time schedule or make other commitments that the City might otherwise have no authority to require a developer to perform. A development agreement is enforceable despite any changes to the General Plan, a specific plan, zoning, subdivision, or building regulations. The development agreement may provide that the developer shall be subject to future changes in development impact fees. Any fees received or costs recovered by the City shall comply with Government Code Section 66006. A development agreement is distinguishable from a "disposition and development agreement" entered into between a developer and a redevelopment agency, wherein the agency typically participates financially in the project in some way. The commitments made by a developer under a development agreement may be different in kind and scope than the exactions imposed by a city under the Mitigation Fee Act (Government Code Section 66000, et. seq.), which authorizes a city to impose impact fees on a development project involving the issuance of a permit for construction, but not a permit to operate; such fees are collected for the purpose of defraying the cost of public facilities related to the development project. A Requirements for Applications and Agreements A.1 , orms and Information Page 1 of 8 Deleted: 1_0 - { Deleted: 2_0 Deleted: 3,0 References¶ Government Code Section 65864- 65869.51 Deleted: 4_0 {Formatted: Indent: Left: 0.5" Deleted: 4. I a. The City Attorney shall prescribe the form for each application and - notice required under this Policy for the preparation and implementation of development agreements. b. The City Manager, or designeemay require an applicant to submit such information and supporting data as deemed necessary to process the application. A.2 Fees The City Council may include in the City's Fee Schedule the fees and charges imposed for the filing and processing of each application and document required under this Policy. A.3 •Qualification as an Applicant Only a qualified applicant may file an application to enter into a development agreement with the City. A qualified applicant is a person who has a legal or equitable interest in the real property that is the subject of the agreement. "Applicant" includes an authorized agent of the person who has such an interest. The City Manager, or designee„ may require an applicant to submit proof of his or her interest in the real property and of the authority of the agent to act for the applicant. Before the application is processed, the City Attorney shall determine the sufficiency of the applicant's interest in the real property to enter into the agreement. A.4 ,Form and Contents of Development Agreement In applying for a development agreement, a developer may submit a form of agreement prepared by the developer. Whether prepared by the City or the developer, the agreement shall specify the following: I Formatted: Indent: Left: 1" 1 (Deleted: Development Services Director l Deleted: the Director considers -- { Formatted: Indent: Left: 0.5" Deleted: 42 '{ Deleted: 4_3 Deleted: Development Services Director {eleted: 4.4 a. The duration of the agreement; • [ Formatted: Indent: Left: 1" b. The permitted uses of the real property; c. The density or intensity of use; d. The maximum height and size of proposed structures; e. Provisions for reservation or dedication of land for public purposes; f. The nature and timing of construction of improvements; g. The date by which construction shall commence; h. The date by which construction of the development and each phase of the development shall commence; Page 2 of 8 i. Other commitments by the developer including, but not limited to, an agreement to construct specific improvements, provide public facilities and services, pay development impact fees, or make other commitments that the City requires; j. A commitment by the City to process the developer's application in accordance with the City's building regulations and planning and zoning ordinances, regulations, and standards in effect at the time the agreement is entered into, and not to subject the development to changes in such ordinances, regulations, and standards for a specified period of time; and k. For phased developments, and developments of long duration, the City and the developer may agree that the period of time for which the development will not be subject to changes in the City's building, planning, and zoning ordinances and regulations will be for a specified time that is less than the term of the agreement. 1. Other conditions, terms, restrictions, and requirements provided they do not prevent the development of the real property for the uses and to the density or intensity of development set forth in the agreement. A.5 Aeview of Applications; Submission to Planning Commission. The City Manager, or designee, shall review the application and shall reject it if it is inaccurate or incomplete for processing. If City staffR finds the application is complete and contains the information necessary to complete the development agreement, he or she shall accept it for filing. When both the application and agreement are determined by the City $o be complete, the City Manager, or designee, ,shall submit the agreement to the Secretary of the Planning Commission, who shall place the agreement on a Commission agenda for a public hearing to consider the agreement for approval. At the time the City Manager or designee submits the agreement to the Secretary of the Planning Commission, City Attorney shall submit with the agreement a report indicating whether or not the agreement would be consistent with the General Plan and any applicable specific plan. A.6 J-learing by City Council After the development agreement is considered by the Planning Commission, the City Manager, or designee,rshall cause to have it placed on a City Council agenda to have it considered for approval by the Council after public hearing. The City Attorney shall submit with the agreement a report indicating whether or not the agreement would be consistent with the General Plan and any applicable specific plan. A.7 Concurrent Processing A development agreement may be processed concurrently with other applications for development for the same property. Page 3 of 8 t Formatted: Indent: Left: 0.5" Deleted: Deleted: Development Services Director Deleted: the (Deleted: Development Services Director Deleted: Development (Services Director Deleted: Development Services Director s Deleted: Development Services Director (Deleted: 4_6 Deleted: Development Services Director {Deleted: 4.7 B. A.8 „Other Parties In addition to the City and the developer, any federal, state, or local government agency may be included as a party to the development agreement under the authority of the Joint exercise of Powers Act (Government Code Section 6500 �t seq.) or other authority. Notices and Hearings Deleted: 44.5 Comment [CS1]: GC 6500 is covert — this section is addressing allowing joint powers also be a party to such agreements. { Deleted: 5_0 B.1,Notice of Intention • (Formatted: Indent: Left: 0.5" The City Clerk shall give notice of the intention to consider adoption of a Deleted: 51 development agreement at least ten days before the public hearings of the Planning Commission and the City Council. The notice shall be given as provided in Section 65091 of the Government Code. B.2 ,Form of Notice The form of Notice of Intention to consider adoption of a development agreement shall contain: { Deleted: 5_2 a. The time and place of the hearing; • LFormatted: Indent: Left: 1" b. A general explanation of the matter to be considered, including a general description of the area affected; and c. Other information required by specific provisions of this Policy or that the City Manager, or designee,,considers necessary or desirable. - - B.3 Manner ofNotice Notice of the intention to consider adoption of a development agreement shall be given as provided in Government Code Section 65091. B.4 ,Failure to Receive Notice The failure of any person or entity to receive notice shall not affect the authority of the City to enter into a development agreement, or affect the validity of a development agreement. B.5 Rules Governing Conduct of Public Hearings A public hearing at which a development agreement is considered shall be conducted as nearly as possible in accordance with the procedural standards adopted under Government Code Section 65804 for the conduct of zoning hearings. Each person interested in the matter shall be given an opportunity to be heard. The developer has the burden of proof at the public hearing. C, Standards of Review, Findings, and Decision C.1 Keconnnendation by Planning Commission Page 4 of 8 Deleted: Director of Development lServices { Formatted: Indent: Left: 0.5" f Deleted: 53 l Deleted: 5 a { Deleted: 5_5 { Deleted: 6.0 { Formatted: Indent: Left: 0.5" { Deleted: 6.1 After the public hearing is held by the Planning Commission, the Commission shall adopt a resolution making its recommendation to the City Council as to whether the development agreement should be approved. The resolution shall set forth the reasons for the Commission's recommendation, including findings setting forth the Commission's determinations regarding the following: a. Whether the development agreement is consistent with the objectives,-* f Formatted: Indent: Left: 1" policies, land uses, and programs specified in the General Plan and any applicable specific plan; b. Whether the development agreement is compatible with the uses and regulations for the zone in which the property is located; c. Whether the development agreement is in conformity with the public convenience, general welfare, and good land use practice; d. Whether the development agreement will not be detrimental to the health, safety, and general welfare; e. For a development agreement that is to be entered into in connection with a subdivision, as defined in Government Code Section 66473.7, whether the agreement provides that any tentative map will comply with the provisions of that section. f. Whether the development agreement offers to the City Substantial benefit in exchange for the vested right benefit granted to the developer. Formatted: Indent: Left: 0.5" C.2 pecision by City Council rDeleted: e_2 a. After receipt of the recommendation of the Planning Commission, the. City Council shall hold a public hearing. The Council may accept. disapprove, or modify the recommendation of the Planning Commission. The Council may, but is not required to, refer matters not previously considered by the Planning Commission during its hearing back to the Planning Commission for report and recommendation. The Planning Commission shall consider at a public meeting all matters referred back to it by the City Council and may, but is not required to, hold a public hearing on such matters. - t Formatted: Indent: Left: 1" b. The City Council may not approve the development agreement unless it finds that the agreement is in compliance with the standards set forth in Section C1. l Deleted: 6 c. The decision whether to enter into a development agreement is within the sole discretion of the City Council. t---- Formatted: Indent: Left: 0.5" Page 5 of 8 C;,3 _Approval of Development Agreement If the City Council approves the development agreement, it shall do so by the adoption of an ordinance. The City may enter into the agreement after the ordinance approving the agreement takes effect. Deleted: r, Deleted: D. Amendment and Cancellation of Development Agreement by Mutual Consent { Deleted:_0 Dr 1 Initiation of Amendment or Cancellation - ((Formatted: Indent: Left: 0.5" J A development agreement may be amended, or cancelled in whole or in part, by Deleted: 7 J mutual consent of the parties to the agreement or their successors in interest. Either party may initiate such amendment or cancellation. Dr2 Procedure a. The procedure for proposing and adopting an amendment to or. cancellation in whole or in part of the development agreement is the same as the procedure for entering into an agreement in the first instance, as set forth in Sections "B" and "C" of this Policy. b. If the City initiates the proposed amendment to or cancellation in whole or in part of the development agreement, it shall first give notice to the developer of its intention to initiate such proceedings at least 30 days in advance of the giving of the Notice of Intention to consider the amendment or cancellation required by Section "B- E. Recordation Ey1 Recordation of Development Agreement, Amendment or Cancellation - a. Within 10 days after the City enters into the development agreement,- ._ the City Clerk shall have the agreement recorded with the County Recorder. The agreement shall run with the land and inure to the benefit of and bind successors in interest. b. If the City and the developer or the developer's successor in interest amend or cancel the agreement as provided in Government Code Section 65868, or if the City terminates or modifies the agreement as provided in Government Code Section 65865.1 for failure of the applicant to comply in good faith with the terms or conditions of the agreement, the City Clerk shall cause notice of such action to be recorded with the County Recorder within 10 days. F. Periodic Review 1 Deleted: 7 ((Formatted: Indent: Left: 1" j Formatted: Indent: Left: 0.5" t Formatted: Indent: Left: 1" f Deleted: 5.0 Deleted: 6.0 { Deleted: 5.0 ( Deleted: 8_0 Deleted: 8 - - ( Deleted: 9_0 F� 1 Time for Initiation of Review {Formatted: Indent: Left: 0.5" j The City Council shall review the development agreement at a public hearing at Deleted: 9 least every 12 months from the date the agreement is entered into. The time Page 6 of 8 period before which review may occur may be shortened either by agreement of the City and the developer or by initiation in one or more of the following ways: a. Recommendation of the City Manager,or designees or - b. Action of the City Council. The failure to conduct a review in any 12 month period does not preclude a later review. E.2 Notice of Review The City shall begin the review proceeding by giving notice that the City Council intends to undertake a review of the development agreement. F,.3 Delegation or Referral to Planning Commission At the time the development agreement is reviewed by the City Council, the Council may: a. Review the development agreement itself; or b. Delegate the review to the Planning Commission for a determination; or c. Refer the review to the Planning Commission for a recommendation as to the action to be taken by the City Council. F,,4 Procedure The notice and hearing procedure for review of the development agreement is the same as the procedure for entering into the agreement in the first instance, as set forth in Section "B" of this Policy. F,5 Public Hearing The decision -making body shall conduct a public hearing at which the developer must demonstrate good faith compliance with the terms of the agreement. The burden of proof on this issue is with the developer. At the time and place set for hearing, the developer shall be given an opportunity to be heard. ..- Deleted: Director of'Development Services Formatted: Indent: Left: 1" 1 Formatted: Indent: Left: 0.5" Deleted: 2 J Deleted: 9 i Formatted: Indent: Left: 1" J Formatted: Indent: Left: 0.5" ) Deleted: 9 Deleted: 5.0 Deleted: 9 F6 Findings _- { Deleted: 9 a. At the conclusion of the public hearing, the decision -making body shall { Formatted: Indent: Left: 1" adopt a resolution making findings based on substantial evidence as to whether or not the developer has, for the period of time under review, complied in good faith with the terms and conditions of the development agreement. b. If the decision -making body finds and determines on the basis of substantial evidence that the developer has complied in good faith with the terms and conditions of the development agreement during the period of time under review, the review for that period is concluded. Page 7 of 8 3 c. If the decision -making body finds and determines on the basis of substantial evidence that the developer has not complied in good faith with the terms and conditions of the development agreement during the period of time under review, it shall in its resolution modify or terminate the agreement. If the agreement is modified, the decision -making body may impose those conditions to its action as .it considers necessary to protect the interests of the City. If the decision -making body determines to modify the agreement, it shall do so only in a manner reasonably related to addressing the lack of compliance identified under Subsection (b) of this Section. d. If the review is conducted by the Planning Commission for a determination the developer or any interested person may appeal the determination under Subsections (b) and (c) of this Section to the City Council in accordance with the City's procedures for appeals to the City Council. F17 Decision of the City Council Final In all proceedings under Section fI., the decision of the City Council shall be final. F 8 Costs of Review The developer shall pay the City's reasonable costs for staff time expended on the annual review. •- - - {Formatted: Indent: Left: 0.5" 'Deleted: 9 { Deleted: 9.0 ( Deleted: 9 G., Judicial Review _. -. j)eleted: ID.o 1 Standard of Review { Formatted: Indent: Left: 0.5" Judicial review of the initial approval by the City of a development agreement { Deleted: to 1 shall be by writ of mandate under Code of Civil Procedure Section 1085. Judicial review of a City action taken pursuant to this Policy, other than the initial approval of development agreements, shall be by writ of mandamus under Code of Civil Procedure Section 1094.5. Any action or proceeding to attack, review, set aside, void, or annul any decision of the City to approve or amend a development agreement under this Policy shall be commenced within 90 days of the date of the decision. , Related Policy References Government Code Sections: 65091. 65804. 65864-65869.5, 66000, 66006 66473.7 Code of Civil Procedure Sections: 1085, 1094.5 Formatted: Font: Bold, Underline 3 Prior Policy Amendments {Formatted: Font: Bold, Underline None Page 8 of 8 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Procedures and Requirements for POLICY # 402 Development Agreements ADOPTED: September 6, 2011 AMENDED: Purpose To adopt regulations establishing development agreements. Policy Under a development agreement, both the City and the developer commit themselves to proceed with a development in accordance with the terms of the agreement. The city may agree to process further applications in accordance with the City's building regulations and planning and zoning ordinances, regulations, and standards in effect at the time of the agreement, and not to subject the development to changes in those ordinances, regulations and standards for a specified time. In return, the developer may agree to construct specific improvements, provide public facilities and services, pay development impact fees, develop according to a specified time schedule or make other commitments that the City might otherwise have no authority to require a developer to perform. A development agreernent is enforceable despite any changes to the General Plan, a specific plan, zoning, subdivision, or building regulations. The development agreement may provide that the developer shall be subject to future changes in development impact fees. Any fees received or costs recovered by the City shall comply with Government 'le Section 66006. A development agreement , is distinguishable from a "disposition and development agreement entered into between a developer and a redevelopment agency, wherein the agency typically participates financially in the project in some way. The commitments made by a developer under a development agreement may be different in kind and scope than the exactions ` iri3posed by a city under the Mitigation Fee Act (Government Code Section 66000, et. seq.), which authorizes a city to impose impact fees on a development project involving the issuance of a permit for construction, but not a permit to operate; such fees are collected for the purpose of defraying the cost of public facilities related to the development project. Page 1 of 9 TITLE: Procedures and Requirements for Development Agreements ADOPTED: September 6, 2011 POLICY # 402 AMENDED: A. Requirements for Applications and Agreements A.1 Forms and Information a. The City Attorney shall prescribe the form foreach application and notice required under this Policy for the preparation and implementation of development agreements. b. The City Manager, or designee, may require an applicant to submit such information and supporting data as deemed necessary to process the application. A.2 Fees The City Council may include in the City's Fee Schedule the fees and charges imposed for the filing and processing of each application and document required under this Policy. A.3 Qualification as an Applicant Only a qualified applicant may file an application to enter into a development agreement with the City. A qualified applicant is a person who has a legal or equitable interest in the real property that is the subject of the agreement. "Applicant" includes an authorized agent of the person who has such an interest. The City Manager, or designee, may require an applicant to submit proof of his or her interest in the real property and of the authority of the agent to act for the applicant. Before the application is processed, the City Attorney shall determine the sufficiency of the applicant's interest in the real property to enter into the agreement. A.4 Form and Contents of Development Agreement In applying for a development agreement, a developer may submit a form of agreement prepared by the developer. Whether prepared by the City or the developer, the agreement shall specify the following: a. The duration of the agreement; b. The permitted uses of the real property; c. The density or intensity of use; d. The maximum height and size of proposed structures; Page 2 of 9 TITLE: Procedures and Requirements for POLICY # 402 Development Agreements ADOPTED: September 6, 2011 AMENDED: e. Provisions for reservation or dedication of land for public purposes; f. The nature and timing of construction of improvements; g. The date by which construction shall commenc h. The date by which construction of the development and each phase of the development shall commence; i. Other commitments by the developer including, but not limited to, an agreement to construct specific -improvements, provide public facilities and services, pay development impact fees, or make other eommitments that the City requires; j. A commitment by the City to process the developer's application in accordance with the City'sbuilding regulations and planning and zoning ordinances, regulations, and standards in effect at the time the agreement is entered into, and not to subject the development to changes in such ordinances, regulations, and standards for a specified period of time; and k. For phased developments, and developments of long duration, the City and the developer may agree that the period of time for which the development wili not be subject to changes in the City's building, ring, and zoning ordinances and regulations will be for a specified time that is less than the term of the agreement. 1. Other conditions, terms, restrictions, and requirements provided they do not prevent `e development of the real property for the uses and to the '.ensity or intensity of development set forth in the agreement. A.5 ReviewApplications; Submission to Planning Commission. The City Manager, or designee, shall review the application and shall reject it if it is inaccurate or incomplete for processing. If City staff finds the application is complete and contains the information necessary to complete the development agreement, he or she shall accept it for filing. When both the application and agreement are determined by the City to be complete, the City Manager, or designee, shall submit the agreement to the Secretary of the Planning Commission, who shall place the agreement on a Commission agenda for a public hearing to consider the agreement for approval. At the time the City Manager, or designee, submits the agreement to the Secretary of the Planning Commission, City Attorney shall submit with the agreement a report indicating whether or not Page 3 of 9 TITLE: Procedures and Requirements for POLICY # 402 Development Agreements ADOPTED: September 6, 2011 AMENDED: the agreement would be consistent with the General Plan and any applicable specific plan. A.6 Hearing by City Council After the development agreement is considered by the Planning Commission, the City Manager, or designee, shall cause to have it placed on a City Council agenda to have it considered for approval by the Council after public hearing. The City Attorney shall submit with the agreement a report indicating whether or not the agreement would be consistent with the General Plan and any applicable specific plan. A.7 Concurrent Processing A development agreement may be processed concunrently with other applications for development for the same property. A.8 Other Parties In addition to the City and the developer, any federal, state, or local government agency may be included as a party to the development agreement under the authority of the Joint exercise of Powers Act (Government Code Section 6500 et seq.) or other authority. B. Notices and Hears B.1 Notice of Intention The City Clerk shall give notice of the intention to consider adoption of a development agreement at least ten days before the public hearings of the Planning Commission and the City Council. The notice shall be given as provided in Section 65091 of the Government Code. B.2 Form of Notice The form of Notice of Intention to consider adoption of a development agreement shall contain: a. The time and place of the hearing; b. A general explanation of the matter to be considered, including a general description of the area affected; and c. Other information required by specific provisions of this Policy or that the City Manager, or designee, considers necessary or desirable. Page 4 of 9 TITLE: Procedures and Requirements for POLICY # 402 Development Agreements ADOPTED: September 6, 2011 AMENDED: B.3 Manner of Notice Notice of the intention to consider adoption of a development agreement shall be given as provided in Government Code Section 65091. B.4 Failure to Receive Notice The failure of any person or entity to receive notice shall not affect the authority of the City to enter into a development agreement, or affect the validity of a development agreement. B.5 Rules Governing Conduct of Public Hearings A public hearing at which a development agreement is considered shall be conducted as nearly as possible in accordance with the procedural standards adopted under Government Code Section 65804 for the conduct of zoning hearings. Each person interested in the matter shallbegiven an opportunity to be heard. The developer has the burden of proof at the public hearing. C. Standards of Review, Findings, and Dec C.1 Recommendation by Planning Commission After the public hearing is held by the Planning Commission, the Commission shall adopt a resolution making its recommendation to the City Council as to whether the development agreement should be approved. The resolution shall set forth the reasons for the Commission's recommendation, including findings setting forth tZe Commission's determinations regarding the following: a. Whether the development agreement is consistent with the objectives, policies, land uses, and programs specified in the General Plan and any plicable specific plan; b. Whether the development agreement is compatible with the uses and regulations for the zone in which the property is located; c. Whether the development agreement is in conformity with the public convenience, general welfare, and good land use practice; d. Whether the development agreement will not be detrimental to the health, safety, and general welfare; e. For a development agreement that is to be entered into in connection with a subdivision, as defined in Government Code Section 66473.7, Page 5 of 9 TITLE: Procedures and Requirements for POLICY # 402 Development Agreements ADOPTED: September 6, 2011 AMENDED: whether the agreement provides that any tentative map will comply with the provisions of that section. f. Whether the development agreement offers to the City Substantial benefit in exchange for the vested right benefit granted to the developer. C.2 Decision by City Council a. After receipt of the recommendation of the Planning Commission, the City Council shall hold a public hearing. The Council may accept, disapprove, or modify the recommendation of the Planning Commission. The Council may, but is not required to, refer matters not .`previously considered by the Planning Commission during its hearingback to the Planning Commission for report and recommendation. The Planning Commission shall consider at a public meeting all matters referred back to it by the City Council and may, but is not required to, hold a public hearing on such matters. b. The City Council may not approve the development agreement unless it finds that the agreement is in compliance with the standards set forth in Section C.1. c. The decision whether to enter into a development agreement is within the sole discretion of the City Council. C.3 Approval of Development Agreement If the City Council 'approves the development agreement, it shall do so by the adoption of an ordinance. The City may enter into the agreement after the ordinance appro1ng the agreement takes effect. D. Amendment and Cancellation of Development Agreement by Mutual Consent D.1 Initiation of Amendment or Cancellation A development agreement may be amended, or cancelled in whole or in part, by mutual consent of the parties to the agreement or their successors in interest. Either party may initiate such amendment or cancellation. D.2 Procedure a. The procedure for proposing and adopting an amendment to or cancellation in whole or in part of the development agreement is the same Page 6 of 9 TITLE: Procedures and Requirements for POLICY # 402 Development Agreements ADOPTED: September 6, 2011 AMENDED: as the procedure for entering into an agreement in the first instance, as set forth in Sections `B" and "C" of this Policy. b. If the City initiates the proposed amendment to or cancellation in whole or in part of the development agreement, it shall first give notice to the developer of its intention to initiate such proceedings at least 30 days in advance of the giving of the Notice of Intention to consider the amendment or cancellation required by Section "13". E. Recordation E.1 Recordation of Development Agreement, Amendment or Cancellation a. Within 10 days after the City enters into the development agreement, the City Clerk shall have the agreement recorded with the County Recorder. The agreement shall run with the land and inure to the benefit of and bind successors in interest. b. If the City and the developer or the developer's successor in interest amend or cancel the agreement as provided in Government Code Section 65868, or if the City terminates or modifies the agreement as provided in Government Code Section 65865.1 for failure of the applicant to comply in good faith with the terrns or conditions of the agreement, the City Clerk shall cause notice of such action to be recorded with the County Recorder within 10 day F. Periodic Review F.1 Time for Initiation of Review The City Council shall review the development agreement at a public hearing at least every 12 months from the date the agreement is entered into. The time period before which review may occur may be shortened either by agreement of the City and the developer or by initiation in one or more of the following ways: a. Recommendation of the City Manager, or designee; or b. Action of the City Council. The failure to conduct a review in any 12 month period does not preclude a later review. F.2 Notice of Review The City shall begin the review proceeding by giving notice that the City Council intends to undertake a review of the development agreement. Page 7 of 9 TITLE: Procedures and Requirements for POLICY # 402 Development Agreements ADOPTED: September 6, 2011 AMENDED: F.3 Delegation or Referral to Planning Commission At the time the development agreement is reviewed by the City Council, the Council may: a. Review the development agreement itself; or b. Delegate the review to the Planning Commission for determination; or c. Refer the review to the Planning Commission for a recommendation as to the action to be taken by the City Council. F.4 Procedure The notice and hearing procedure for review of the development agreement is the same as the procedure for entering into the agreement in the first instance, as set forth in Section "B" of this Policy. F.5 Public Hearing The decision -making body shall conduct a public hearing at which the developer must demonstrate good faith compliance with the terms of the agreement. The burden of proof on this issue is with the developer. At the time and place set for hearing, the developer shall be given an opportunity to be heard. F.6 Findings a. At the conclusion of the public hearing, the decision -making body shall adopt a resolution making findings based on substantial evidence as to whether or not the developer has, for the period of time under review, complied in good faith with the terms and conditions of the development agreement. b. If the decision -making body finds and determines on the basis of substantial evidence that the developer has complied in good faith with the terms and conditions of the development agreement during the period of time under review, the review for that period is concluded. c. If the decision -making body finds and determines on the basis of substantial evidence that the developer has not complied in good faith with the terms and conditions of the development agreement during the period of time under review, it shall in its resolution modify or terminate the agreement. If the agreement is modified, the decision -making body may impose those conditions to its action as .it considers necessary to protect the interests of the City. If the decision -making body determines to modify the agreement, it shall do so only in a manner reasonably related to Page 8 of 9 addressing the lack of compliance identified under Subsection (b) of this Section. d. If the review is conducted by the Planning Commission for a determination the developer or any interested person may appeal the determination under Subsections (b) and (c) of this Section to the City Council in accordance with the City's procedures for appeals to the City Council. F.7 Decision of the City Council Final In all proceedings under Section "F", the decision of the City Council shall be final. F.8 Costs of Review The developer shall pay the City's reasonable costs for staff time expended on the annual review. G. Judicial Review G.1 Standard of Review Judicial review of the initial approval by the City of a development agreement shall be by writ of mandate under "Code.of Civil Procedure Section 1085. Judicial review of a City action taken pursuant to this Policy, other than the initial approval of development agreemeits, shall be by writ of mandamus under Code of Civil Procedure Section 1094.5. Amy action or proceeding to attack, review, set aside, void, or annul any decision of the City to approve or amend a development agreement under this Policy shall be commenced within 90 days of the date of the decision. Related Policy References Government Code Sections: 65091 65804, 65864-65869.5, 66000, 66006, 66473.7 Code of Civil Procedure Sections: 1085, 1094.5 Prior Policy Amendments None Page 9of9 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Sewer Stoppage Repairs POLICY #501 ADOPTED: May 6, 1975 AMENDED: Purpose The establishment of procedures to handle requests for service on sewer lines which need repair. Policy The property owner is responsible for a sewer lateral line from the building to the main. This includes the portion of the lateral on private property and the portion in the right-of- way. The resident is responsible to call a licensed plumbing contractor if a stoppage occurs. City crews cannot respond to requests for lateral sewage line service unless the resident has first obtained the services of a licensed plumber. City crews will only respond to lateral problems when a licensed plumber verifies to Public Works that he cannot clear a stoppage and, in his professional opinion, the stoppage is in the right-of-way portion of the lateral The property line cleanout must be exposed by the resident before City crews can start to clear the line. City crews are not authorized to work on lines on private property. If a citizen is experiencing repeated blockages in the right-of-way portion of the sewer lateral, even though the licensed plumber is able to clear the problem, it is symptomatic of a potential problem in the lateral itself In this case, the City will make a courtesy call during normal working hours to inspect the line and to make such repairs to the right-of- way portion of the lateral as the City deems appropriate. Repeated blockages is defined as being able to produce two paid receipts for blockage service from licenses plumbers within the preceding 12-month period. Courtesy calls will not be made on overtime. If a sewer backup into a citizen's property is caused by a blockage in the City main, City forces will respond immediately around -the -clock, to clear the blockage. Upon clearing the blockage, City crews shall provide the citizen with a current listing of contractors who do clean-up work of this type, and will advise the citizen that if they will select a contractor, and will have that contractor contact a Public Works supervisor in advance, with a price for doing the clean-up, the City will contract with that firm for the clean-up. City crews will inform the citizen that if the citizen feels he has been damaged in any other way, proper claim forms are available through the City Clerk's office, and that there is a limited time within which to make such a claim. Related Policy References National City Municipal Code, Chapter 14.06 Page 1 of 1 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Sewer Stoppage Repairs POLICY #501 ADOPTED: May 6, 1975 AMENDED: Page 1 of 1 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Policy for the Underground Conversion POLICY: 503 of Overhead Utility Lines on Private Properties ADOPTED: June 6, 1995 AMENDED: August 1, 1995 1. Purpose The purposed of this policy is to establish: a. b. II. Definition A policy for the use of utility conversion funds "for the conversion of the residential and non-residential customer's service laterals. A policy for a 50/50 program for the use of the City's funds to modify the residential electric meter boxes a. Residential: For the purpose of this policy residential use is defined as any type of residential use of the property at the time that physical underground conversion construction began. b. Non -Residential;` ' For the purposes of this policy non-residentials use is defined as all other uses than residential. III. General Provisions rivateService Lateral Conversion: a. Funding'shall be limited to facilities which the customer traditionally supplies and installs, such as trenching and conduit from the property line to the point of connection. b. Funding shall not exceed the estimated cost of trenching and conduit installation for up to 100 feet of the private service lateral. 2. Electric Meter Box Conversion a. The 50/50 program shall apply to only the residential use properties. b. The property owners shall be responsible for 50% of the cost of the meter box modification. Page 1 of 5 3. The property owners will have the following options: a. The property owners will be responsible for installing the service lateral and converting the electric meter box. The City will reimburse the property owners for the service lateral at an established rate, and reimbursed the property owners for 50% of the meter box conversion cost. b. The City will install the service lateral and convert the electric meter box. The property owner will be required to provide the City with permission to enter the property to do work. The property owner will also be required to either reimburse the City for 50% of the meter box conversion cost, or sign an Agreement and a Covenant Running with the Land in substantially the from set forth in Exhibit "A". 4. If a property owner decides not to cooperate, the utility service may be terminated. IV. Implementation Procedure A. Work performed by the property owner: 1. RESIDENTIAL a. d. The use of utility funds to convert private laterals shall be recommended by the City Engineer. The City Engineer shall determine the length of lateral (trenching and conduit that is (1) eligible for utility funding for each property within the conversion district and (2) the length of conduit and wire that the appropriate cable company will provide free of charge to each residential property. The City Engineer shall agree on a "reasonable" cost per linear foot of lateral conversion. The City Engineer shall agree on the proportional split each utility is to bear for conversion of the service laterals. e. All owners within the conversion district shall be informed of the utility fund amount proposed to be reimbursed prior to the public hearing on the conversion district formation. Council shall set the limit for each amount of reimbursement to be applied to each service lateral by resolution. The amounts shall be Page 2 of 5 g. those recommended by the City Engineer or as amended by the Council pursuant to public hearing deliberations. Utility companies shall pay the City the total proportional shares specified in "e" above when: 1. All of the customers have satisfactorily completed their service lateral conversions. 2. The electric metering equipment has passed a City inspection certifying it is ready to receive undergroundservice. h. The City shall then pay: 1. Amount of reimbursement due each property owner after receipt of funds from the utility companies for converting private laterals. 2. 50% of the amount of the reimbursement due each residential property owner for modifying the electric meter boxes. The owner shall be requircd to pay the other one-half. 2. NON-RESIDENTIAL a. The procedure shall ben accordance with sections (IV.A.1.a) thru (IV.A.Lh. Ispecified below. b. The property owners shall be responsible to pay for 100% of the t for modifying their electric meter boxcs B. Work perform b. c. the ,City will prepare plans, specifications, and cost estimates for converting all of the private service laterals for residential and non- residential properties and modifying the electric meter boxes only for the residential properties. The City shall pay for the one half (50%) cost of the meter box modification for the residential properties. and its Contractor: The City shall give the following options to the residential property owners to pay for their share of the modification cost of electric meter boxes (50%). Page 3 of 1. Reimburse the City for 50% of the cost to convert the electric meter box, following completion of the work, and upon receipt of the Invoice. 2. Sign a Covenant Running with the Land form (attached, Exhibit "A"). d. The City shall inspect the electric metering equipment which is installed by non-residential property owners to certify if it is ready to receive underground service. NOTES: 1. The service lateral shall be defined as: trenching, backfill, and any necessary conduit from the customer's property line to the underground sweep at the base of the customer's termination facility. In those cases where the service conduit enters thecustomer's building, the service lateral will terminate at the point where the conduit enters the building. 2. For the purpose of his policy utility is defined as any company providing electric, telephone communication, cable television and data transmission services. Page 4 of 5 EXHIBIT "A" COVENANT RUNNING WITH THE LAND This covenant is made by hereinafter referred to as "OWNER". WHEREAS OWNER is the owner of that certain real property located in the City of National City, County of San Diego, State of California, described as follows: WHEREAS OWNER'S real property is located within an underground utility district. Whereas, said owner desires a deferment from paying to install', the following improvements: The electric meter box in conjunction with an underground utility conversion project. NOW. THEREFORE, in consideration for the granting of a .deferral to install said improvements by the City Council of the City of National City, said Owner covenants for Owner and his/her/theirs, heirs, successors, assigns executors and administrators as follows: 1. The City or its Contractor will have permission to enter the property and perform all of the necessary work. 2. The property owner(s) shallpay 50% of the cost of the meter box modification in conjunction with the underground utility conversion project prior to the transfer of the ownership of the real property; 3. If the property owner decides not to comply with the terms of this agreement the utility service will bedisconnected by the City at the Owner's expense. 4. This covenant shall be recorded. Date: Page 5 of 5 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Policy for the Underground Conversion of Overhead Utility Lines on Private Properties ADOPTED: June 6, 1995 POLICY: 503 AMENDED: August 1, 1995 Page 1 of 1