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HomeMy WebLinkAboutA-200/Backup/ResolutionCITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT MEETING DATE: December 10, 2013 AGENDA ITEM NO. 1 ITEM TITLE: Resolution of the City Council of the City of National City adopting the amended Chapters 200 through 500, of the City Council Policy Manual, which includes amended Policies 201, 203, 205, 301 and 402, and deleting Policies 202, 501, and 503. PREPARED BY: Leslie Deese, City Manager 619-336-4240 DEPARTMENT: City Manager/Cit PHONE: Claudia, Silva, City Attorney, 619-336-4220 APPROVED B`��-_ EXPLANATION: See attached Attorney lth FINANCIAL STATEMENT: APPROVED: ACCOUNT NO. APPROVED: N/A ENVIRONMENTAL REVIEW: N/A ORDINANCE: INTRODUCTION: FINAL ADOPTION: Finance MIS STAFF RECOMMENDATION: Adopt Resolution BOARD I COMMISSION RECOMMENDATION: N/A ATTACHMENTS: 1) Staff Report 2) Resolution 3) Policies (See staff report) November 27, 2013 To: Mayor and City Council CC: City Clerk, City Attorney, Executive Director, Brenda Hodges Re: Council Workshop December 10, 2013 Fr: City Manager Per City Council Policy #101, the Policy Manual should be reviewed annually, and updated as necessary. As you know, 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 City Council met at a special workshop on June 11, 2013 to review and comment on policies contained in Chapter 100 "Administration and Policy Management". A second Council Workshop was held on October 8, 2013 to review the final drafts of Chapter 100 as well as first drafts of Chapters 200 "Financial Services", Chapter 300 "Legal and Legislative Services", Chapter 400 "Municipal Planning" and Chapter 500 "Public Works". A third Council Workshop is scheduled for December 10, 2013 to review the final drafts of Chapters 200-500, as well as first drafts of Chapters 600 "Personnel Services", Chapter 700 "Traffic and Public Safety", Chapter 800 "Public Service Facilities", Chapter 900 "Real Estate and Public Property", and Chapter 1000 "Risk Management". To assist the Council with review of proposed changes, attached are the following documents: Enclosed you will find three (3) clipped sections of materials: 1. Initial review of proposed changes for Chapters 600-1000 (with yellow 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. 2. 3. • A final draft which incorporates proposed changes for Council review/approval (watermarked "Draft"). • Note: We are still working on a couple policies in this section (as noted in the Significant Changes memo). If they are completed in time for the workshop, we will submit them for your review under separate cover. Review of final changes made to Chapters 200-500 at the October 8th workshop (with blue inserts between each policy) • A list of the Significant Changes that were made at the October 8, 2013 Council workshop • A copy with changes identified (where applicable) • Final draft for Council review and approval (watermarked "Final Draft") • A set of "Council Policy Review Forms" that may be used to help facilitate your thoughts/questions on each policy. LD/beh Summary of Additional Changes Made at 10-8-13 Council Workshop Chapter 200 Policy #201: Maintenance of Reserve Funds a No additional changes proposed by City Council Policy #202: Contributions • No additional changes proposed by City Council Policy #203: Investments • Page 11, section XII, subsection "A". Added "at an agendized meeting." Policy #204: Donation Acceptance • Brought back 'as submitted' on 10-8-13, with a report from the City Attorney. Policy #205: Intrabudget Adjustment Requests (IBARS) • Clarified paragraphs 2-3 under "Policy", by adding the word "countersigned". Chapter 300 Chapter #301: Legislative and Judicial Platform • Added language to first paragraph under "Policy": "The City will work with local legislators, as appropriate, in advancing the City's adopted legislative platform." Chapter 400 Chapter #401: Environmental Guidelines/CEQA • Recommended changes will be distributed at later date Chapter #402: Procedures and Requirements for Development Agreements • No additional changes proposed by City Council Chapter 500 Chapter #501: Sewer Stoppage • No additional changes proposed by City Council Chapter #502: Professional Service Change Order • Recommended changes will be submitted at a later date Chapter #503: Underground Conversion • No additional changes proposed by City Council Chapter #504: Mile of Cars Banners • Policy on hold for now Chapter #505: Street Banner Program • Policy on hold for now Page 1 of 1 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 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 Page I of I CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Investments POLICY #203 ADOPTED: October 23, 1990 AMENDED: INTRODUCTION The City of National City's investment program will conform with fed al, tate, and other legal requirements, including California Government C eons 16429.1- 16429.4, 53600-53609 and 53630-53686. The following the methods, procedures and practices which must be and judicious fiscal and investment management of the of the City to invest public funds in a manner that w given its requirements for preserving principal and demands of the City. All investments will comply wi governing laws. This Investment Policy replaces any v'is Investment Policy or Investment Procedures of the City. investme sHey addresses cisd to ensure effective funds. It is the policy a market rate of return, eting the daily cash flow this Investment Policy and II. SCOPE This Investment Folic ies to all the City's financial assets and investment activities with the f+r exceptions: A. Proceeds of de investmen invest bond is - res. ce shall be invested in accordance with the City's general as set forth in this policy; however, such proceeds are rdance with permitted investment provisions of their specific ooli unds: Except for cash in certain restricted and special funds, the City will nsoldate cash and reserve balances from all funds to maximize investment gs 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 investmentportfolio will remain sufficientlyli to met all q> operating requirements that may be reasonably anticipated. 3. Return: The investment portfolio will be designed $ _ objective of attaining a market rate of return throughout budgetary an +nomic cycles, taking into account the investment risk constra' fiesa ety and liquidity needs. IV. PRUDENCE, INDEMNIFICATION AND ETHICS _.., 4\r. 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 bodi s of local agencies or persons authorized to make investment decisions o ehalf of those local agencies investing public funds pursuant to thi r are trustees and therefore fiduciaries subject to the prudent inv stor s ndard. When investing, reinvesting, purchasing, acquiring, exch , selling, or managing public funds, a trustee shall act with car , rudence, and diligence under the circumstances then prevailin v ing, but not limited to, the general economic conditions and the .100 . ; ted needs of the City, that a prudent person acting in a like cap.. . Ilramiliarity with those matters would use in the conduct of a like character and with like aims, to safeguard the principal and am the liquidity needs of the City. Within the limitations of this tion and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law." Cli) 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 ' partial investment decisions. V. DELEGATION OF AUTHORITY � A. Authority to manage the City's investment program is de s I m California Government Code Sections 53600 et seq. The City Council is esaonsible for the City's cash management, including the administration of grit nvestment Policy. Management responsibility for the cash management of City funds is hereby delegated to the Director of Finance and/or Fin 'al Services Officer. ti The Director of Finance and/or Financial Services Officer will be responsible for all transactions undertaken and will establ' stem of procedures and controls to regulate the activities of subordinate p es. B. The City may engage the sery -s ne or more external investment managers to assist in the management of "a - s investment portfolio in a manner consistent with the City's objectives. ' s e. ternal managers may be granted discretion to purchase and sell inves nt set` cities in accordance with this Investment Policy. Such managers must be�tered under the Investment Advisers Act of 1940. VI. AUTHORIZED FIN INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS A list will b R. s of financial institutions and depositories authorized to provide inv- services. In addition, a list will be maintained of approved security b ealers selected by conducting a process of due diligence described in the s procedures manual. These may include "primary" dealers or regional qualify under Securities and Exchange Commission (SEC) Rule 15C3-1 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 en a in transactions with the City will be at the sole discretion of the City. g' C. All financial institutions which desire to become qualified transactions (and which are not dealing only with the inves supply the Director of Finance and/or Financial Sery certifying that the institution has reviewed the Section 53600 et seq. and the City's Investment icy. "for investment adviser) must cer with a statement is Government Code D. Selection of broker/dealers used by an external inves'(ment adviser retained by the City will be at the sole discretion of the in s 1t adviser. E. Public deposits will be made only i by State law. Deposits wi Corporation, or, to the exte collateralized in accordance VII. DELIVERY, SAFE A. Delivery -versus ; completed usin Vied public depositories as established ed by the Federal Deposit Insurance aunt exceeds the insured maximum, will be to law. AND CUSTODY, AND COMPETITIVE TRANSACTIONS Settlement of all investment transactions will be d delivery -vs. -payment procedures. B. Thirdpi t ekeeping: To protect against potential losses by collapse of indivi . = R ecurities dealers, and to enhance access to securities, interest t and maturity proceeds, all securities owned by the City will be held in Ct9n sa sing by a third party bank custodian, acting as agent for the City under the s 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 Cafifofnia, any other state, and any local Agency within the state of Cali ,i ia. 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 Ming service of nationally recognized expertise in rating bondsstts 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 pled' ; + • the payment of principal and interest. There are no limits on the o mount or percentage that the City may invest in U.S. Treasuries. 3. Federal Agency or d tates government -sponsored enterprise obligations, participation , er instruments, including those issued by or fully guaranteed as try prin pal and interest by federal agencies or United States government- ored enterprises. There are no limits on the dollar amount or per athat the City may invest in government -sponsored enterprises. 4. Banker'sces provided that: a are issued by institutions with short term debt obligations rated "Al" 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. 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 cptvered ujder federal insurance; and, b. The maturity of such deposits does not exceed 5 yea 6. Certificate of Deposit Placement Service (CD a. No more than 30% of the total portfolio may of certificates of deposit including CDA b. The maturity of CDARS deposits does not 7. Negotiable Certificates of Deposit Cso)b. The issuer is a corporation organized and operating in the United States with assets in excess of $500 million; ested in a combination d 5 years. rovided that: a. They are issued by instituti•. v c'h have long-term obligations which are rated "A" or higr i :. st two nationally recognized statistical rating organizations; have short term debt obligations rated "Al" or higher, or the equiv. = . , at least two nationally recognized statistical rating organizatio , s; b. The maturity do exceed 5 years; and, c. No more tha 1 ° . f the total portfolio may be invested in NCDs and no more than$° , issuer. °Q.' paper provided that: maturity does not exceed 270 days from the date of purchase; 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 Iong-term obligations are rated "A" or higher by at least two nationally recognized statistical rating organization; and, Page b 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), p vided that: LA a. b. LAIF's investments in instruments prohibited City's policy do not exclude it from th investments, provided that the fund's reports or Financial Services Officer to adeq ly LAIF's portfolio. 10. Local government investment pools. a. San Diego County Investment P The City may invest up to the maximum permitted amount in; and, by or tt, pecified in the it %r5 list of allowable he Director of Finance e the risk inherent in 11. Corporate medium term ot�sIJNs), provided that: a. Such notes have a m "maturity of 5 years; b. Are issued by rations organized and operating within the United States or by (.F ory institutions licensed by the United States or any state and l,e g within the United States; c. Ar i I'' category or better by at least two nationally recognized rating organization; and, CV). Mortgage pass -through securities and asset -backed securities, provided that such securities: dings of medium -term notes may not exceed 30% of the portfolio and o more than 5% per issuer. 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 e of the portfolio. 0% 13. Money market mutual funds that are registered with the cu ties and Exchange Commission under the Investment Company 40. a. Provided that such funds meet either of the follwintn eria: 1. Attained the highest ranking or the highet letter and numerical rating provided by not less than two natio ly ognized statistical rating organizations; or, 2. Have retained an investmen a+ er registered or exempt from registration with the Securi Exchange Commission with not less than five years' experience investing in the securities and obligations autho ' ed by California Government Code Section 53601 (a through j) an Nssets under management in excess of $500 million. b. Purchase of sect authorized by this subdivision may not exceed 20% of the portfo IX. PORTFOLIO REMENT A. The fo . are prohibited investment vehicles and practices: C.) . to 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 ther form of borrowing or leverage is prohibited. 7. The purchase of foreign currency denominated securities is roit . hi B, Mitigating credit risk in the portfolio Credit risk is the risk that a security or a portfolio wi tosome or all of its value due to a real or perceived change in the ability o e to repay its debt. The City will mitigate credit risk by adopting the folio strategies: 1. The diversification requirements inc, mitigate credit risk in the portfolio; in Section IX are designed to 2. No more than 5% of the to ho may be invested in securities of any single issuer, other than t e Government, its agencies and enterprises; 3. The City may elect t. sell a ecurity prior to its maturity and record a capital gain or loss in orde i prove the quality, liquidity or yield of the portfolio in response to mnditions or City's risk preferences; and, 4. If securities by the City are downgraded by either Moody's or S&P to a level w cif quality required by this Investment Policy, it will be the City' to review the credit situation and make a determination as to who sell or retain such securities in the portfolio. f 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 9 of 18 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, to i I er-term portfolios have the potential to achieve higher returns. On the other ha er- term portfolios have higher volatility of return. The City will mitigate marke 'sk by providing adequate liquidity for short-term cash needs, and by making longer - term investments only with funds that are not needed for cunt 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 rk/ risk profile of the portfolio differently in different interest rate enviro . The City, therefore, adopts the following strategies to control and mitigate posure to market risk: 1. The City will maintain a minimum of three months of budgeted operating expenditures in short term investmes, provide sufficient liquidity for expected disbursements; 2. The maximum percent of cal curities (does not include "make whole call" securities as define i ossary) in the portfolio will be 20%; 3. The maximum state final l aturity of individual securities in the portfolio will be five years, e as otherwise stated in this policy; and, 4. The duratio 'ortfolio will at all times be approximately equal to the duration (t plus or minus 20%) of a Market Benchmark Index selected by the .. on the City's investment objectives, constraints and risk tole s c The City's current Benchmark will be documented in the in nt procedures manual. X. VES MENT 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: XL PROCEDURES AND INTERNAL CONTROLS A. Procedures The Director of Finance and/or Financial Services Officer will establi 'tten investment policy procedures in a separate investment procedures manual to sist investment staff with day-to-day operations of the investment program consisten with this policy. Such procedures will include explicit delegation of author i' t?persons responsible for investment transactions. No person may enga '1: 'an investment transaction except as provided under the terms of this policy e procedures established by the Director of Finance and/or Financial Servi OfolCer. cl B. Internal Controls The Director of Finance and/or Financial Services Office esponsible 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 interal`control structure will be designed to provide reasonable assurance that these obje9ttves are met. Internal controls will be described in the City's investment proceduresmanuaal. XII. REPORTING A. Quarterly reports Quarterly investme Financial Servi consistent with including s will be submitted by the Director of Finance and/or cer to the City Council, at an agendized meeting, uirements contained in Government Code section 53646, ed to the following information: T .'ate nvestment f issuer and/or financial institution of purchase 4. Date of maturity . 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, liqujity and return, and its relevance to current law and financial and economic tren Related Policy References Ca. Government Code Sections: 16429.1 - 16429.4, and 53600 - 53 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 ccdoc0 41410e) ‘XdAlc\'' C)‘1- Page 12 of 18 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 c• oc) fi$6' (bed fr<') 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 ked by the full faith and credit of the US government to certain bank deposits ebt obligations. FFCB. The Federal Farm Credit Bank System provides credit and liq i y in the agricultural industry. FFCB issues discount notes and bonds. FHLB. The Federal Home Loan Bank provides credit housing market. FHLB issues discount notes and bonds. FHLMC. Like FHLB, the Federal Home Loan M • _etorporation provides credit and liquidity in the housing market. FHLMC, also "FreddieMac" issues discount notes, bonds and mortgage pass -through securi FNMA. Like FHLB and FreddieMac, the Federal l Tonal Mortgage Association was established to provide credit and liquidity i the housing market. FNMA, also known as "FannieMae," issues discount not-._., : ,,,,ds and mortgage pass -through iquidity in the securities. GNMA. The Government N ortgage Association, known as "GinnieMae," issues mortgage pass- o rities, which are guaranteed by the full faith and credit of the US Governm PEFCO. The Private Expo 14 mg corporation assists exporters. Obligations of PEFCO are not guaranteed by,dthe ful faith and credit of the US government. TVA. The Tennessee y Authority provides flood control and power and promotes development in pcof the Tennessee, Ohio and Mississippi River valleys. TVA currently issues discount gates and bonds. Asked. The pribe at which a seller offers to sell a security. Average e. In mortgage -related investments, including CMOs, the average time to expecript of principal payments, weighted by the amount of principal expected. acceptance. A money market instrument created to facilitate intation'ade transactions. It is highly liquid and safe because the risk of the trade tra actio, is transferred to the bank which "accepts" the obligation to pay the investor. enchmark. 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 14 of 18 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 r i i bute the cash flows of mortgage securities (and whole loans) to create securi 'es that E ave different levels of prepayment risk, as compared to the underlying mortgage un s. Commercial paper. The short-term unsecured debt of corporations. Cost yield. The annual income from an investment dividethelpurchase cost. Because it does not give effect to premiums and discounts which maq been included in the purchase cost, it is an incomplete measure of return. Coupon. The rate of return at which interest is paid . nd. Credit risk. The risk that principal and/or inte st investment will not be paid in a timely manner due to changes in the condition o e issuer. Current yield. The annual income from an inves ent divided by the current market value. Since the mathematical calculati lies on the current market value rather than the investor's cost, current yield is d to the actual return the investor will earn if the security is held to maturity. Dealer. A dealer acts as a rin"security transactions, selling securities from and buying securities for his o Debenture. A bond secured the general credit of the issuer. Delivery vs. payment (DVP). securities industry procedure whereby payment for a security must be made at me the security is delivered to the purchaser's agent. Derivative. Any s - at has principal and/or interest payments which are subject to uncertainty . or reasons of default or credit risk) as to timing and/or amount, or any security ' represents a component of another security which has been separated from othnts ("Stripped" coupons and principal). A derivative is also defined as a fi . , + i strument the value of which is totally or partially derived from the value of . i strument, interest rate or index. The difference between the par value of a bond and the cost of the bone cost is below par. Some short-term securities, such as T-bills and ba er's eptances, are known as discount securities. They sell at a discount from par, urn 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 15 of 18 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 Make Whole Call. A type of call provision on a bond that allow the issu to pay off the remaining debt early. Unlike a call option, with a make whole ca . ro sion, the issuer makes a lump sum payment that equals the net present value V) f future coupon payments that will not be paid because of the call. Wi e of call, an investor is compensated, or "made whole." Margin: The difference between the market value s►u y and the loan a broker makes using that security as collateral. Market risk. The risk that the value of security w`A ctuate 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 postire 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. Un ecd, in'estment-grade senior debt securities of major corporations which are sold i latively small amounts either on a continuous or an intermittent basis. MTNs are i ighly exible debt instruments that can be structured to respond to market opportunitie•- + + investor preferences. Modified duration rcent change in price for a 100 basis point change in yields. Modified durations lest single measure of a portfolio's or security's exposure to market risk. Money ma e market in which short term debt instruments (Tbills, discount notes, • �� e , i paper and banker's acceptances) are issued and traded. Mortg . ss-through securities. A securitized participation in the interest flows from a specified pool of mortgages. Principal and interest on the mortgages are passed through to the holder of the security. al fund. An entity which pools the funds of investors and invests those 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 prevailin that a prudent person, acting in a like capacity and familiar with such matters, would s the conduct of an enterprise of like character and with like aims to accomplish si llar purposes." Realized yield. The change in value of the portfolio due to interest `rectved and interest earned and realized gains and losses. It does not give effec cha ges in market value on securities, which have not been sold from the portfolio. Regional dealer. A financial intermediary that buy ,. d e1ecurities for the benefit of its customers without maintaining substantial inv: Ito of securities, and that is not a primary dealer. Repurchase agreement (RP, Repo). Short term chases of securities with a simultaneous agreement to sell the securities back at a hi er price. From the seller's point of view, the same transaction is a reverse re ase agreement. Safekeeping. A service to bank cust . r e ereby securities are held by the bank in the customer's name. Short Term. Less than one (1 e. Structured note. A coin ex , x - • income instrument, which pays interest, based on a formula tied to other int s, commodities or indices. Examples include inverse floating rate notes which have pans that increase when other interest rates are falling, and which fall when ' interest rates are rising, and "dual index floaters," which pay interest based t relationship between two other interest rates - for example, the yield on t ar Treasury note minus the Libor rate. Issuers of such notes lock in a reduced a '-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 fuin, which equates the beginning value of the portfolio with the ending value; it inclnterest earnings, realized and unrealized gains, and losses in the portfoli easury obligations. Securities issued by the U.S. Treasury and backed by th 1 fa' and credit of the United States. Treasuries are considered to have no credit ris , 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 17 of 18 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. 00' Acc' c9 c)c czyd G� Page 18 of 18 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 other legal requirements, including California Government 16429.4, 53600-53609 and 53630-53686. The following inv the methods, procedures and practices which must be and judicious fiscal and investment management of t of the City to invest public funds in a manner given its requirements for preserving p demands of the City. All investments governing laws. ;al, state, and 16429.1- y addresses sure effective ity's "' s. It is the policy 'de a market rate of return, g the daily cash flow s Investment Policy and This Investment Policy replies any previ v nvestment Policy or Investment Procedures of the City. IL SCOPE This Investment Poli activities with A. Process of in stm o all the City's financial assets and investment ceptions: e shall be invested in accordance with the City's general y as set forth in this policy; however, such proceeds are ance with permitted investment provisions of their specific Poo + Funds: Except for cash in certain restricted and special funds, the City will consoli+ - cash and reserve balances from all funds to maximize investment earnin 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 sufficientljliqu operating requirements that may be reasonably anticipated. 3. Return: The investment portfolio will be designed attaining a market rate of return throughout budget taking into account the investment risk constra needs. IV. PRUDENCE, INDEMNIFICATION AND El' A. Prudent Investor Standard: Man. g .t of the ity's investments is governed by the Prudent Investor Standard as se h i a e California Government Code 53600.3: "...all governing -s of local a_-ncies or persons authorized to make investment decisions Behalf of those local agencies investing public funds pursuant to s ch. a e trustees and therefore fiduciaries subject to the prudent ' vestor st? ard. When investing, reinvesting, purchasing, acquiring, exc ring, selling, or managing public funds, a trustee shall act with skill. prudence, and diligence under the circumstances then preva ' g, ` clu. but not limited to, the general economic conditions wand ticip ed needs of the City, that a prudent person acting in a like amiliarity with those matters would use in the conduct of ike character and with like aims, to safeguard the principal and maint.:. 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." ective of mic cycles, and liquidity B. Ind mnifacation: 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 d- ed fr alifornia Government Code Sections 53600 et seq. The City Cou it i. sible for the City's cash management, including the administrati r t stment Policy. Management responsibility for the cash manage nt of funds is hereby delegated to the Director of Finance and/or • - , a rvices Officer. The Director of Finance and/or Fin all transactions undertaken and wi to regulate the activities of subordinate B. The City may engage the e assist in the management of t with the City's objective Sue purchase and sell inve Such managers must ffi'cer will be responsible for em of procedures and controls s of one o ore external investment managers to 'ty's investment portfolio in a manner consistent nal managers may be granted discretion to es in accordance with this Investment Policy. d under the Investment Advisers Act of 1940. NSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS d of financial institutions and depositories authorized to ervices. In addition, a list will be maintained of approved ers selected by conducting a process of due diligence described in stment procedures manual. These may include "primary" dealers or regional de. t at qualify under Securities and Exchange Commission (SEC) Rule 15C3-1 (unifo i et 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 autho f zed tad enga e in transactions with the City will be at the sole discretion of the CI C. All financial institutions which desire to become qualified biddersvestment transactions (and which are not dealing only with the irivestinen viser) must supply the Director of Finance and/or Financial Serv' s Officer Pith a statement certifying that the institution has reviewed the ifornia Government Code Section 53600 et seq. and the City's Inves D. Selection of broker/dealers used by City will be at the sole discretion stnfent adviser retained by the adviser. E. Public deposits will be m e only in qua y public depositories as established by State law. Deposit ' 1 be insur .: by the Federal Deposit Insurance Corporation, or, to the extent amount exceeds the insured maximum, will be collateralized in accordance with law. VII. DELIVERY, SA EPID CUSTODY, AND COMPETITIVE TRANSACTIONS A. Delivery-vers ;pay t Settlement of all investment transactions will be competed u_ .tared • delivery -vs. -payment procedures. C. eeping: To protect against potential losses by collapse of ual s - 'ties dealers, and to enhance access to securities, interest ents and maturity proceeds, all securities owned by the City will be held in ing by a third party bank custodian, acting as agent for the City under the f a custody agreement executed by the bank and the City. 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 any other state, and any local Agency within the state bonds will be registered in the name of the City or held agreement at a bank. The bonds shall be rated at the t,of pu the 4 highest general classifications established by Il ratin nationally recognized expertise in rating bonds f stales nd their political subdivisions. a. No more than 5% per issuer. ifornia, The a custodial se within service of 2. U.S. Treasury and other gove nt obliga s f6r which the full faith and credit of the United States a e . ged for he payment of principal and interest. There are no limits on the ar aunt or percentage that the City may invest in U.S. Tre..uries. 3. Federal Agency or obligations, participa fully guaranteed to States governmen pons amount or percentage that enterprise d States government -sponsored enterprise r instruments, including those issued by or and interest by federal agencies or United enterprises. There are no limits on the dollar the City may invest in government -sponsored 4. an 's acceptances provided that: They - 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. 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 maxim c under federal insurance; and, b. The maturity of such deposits does not exceed 5 ye 6. Certificate of Deposit Placement Service (CDA a. No more than 30% of the total portfolio m of certificates of deposit including b. The maturity of CDARS deposi 7. Negotiable Certificates of Depo 1 CDs} • i vided that: in a combination a. They are issued by institutions w ave long-term obligations which are rated "A" or r by at lea two nationally recognized statistical rating organizations; r have short term debt obligations rated "Al" or higher, or the e. alent, t least two nationally recognized statistical rating organiz b. The maturity s eed 5 years; and, c. No more • 30 ° . the total portfolio may be invested in NCDs and no more • 5' , -r 'ssuer. • c. aper provided that: The maturity does not exceed 270 days from the date of purchase; he issuer is a corporation organized and operating in the United States with assets in excess of $500 million; 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 (LAIC), pr• d that: a. The City may invest up to the maximum permitted amoA1F; and, b. LAIF's investments in instruments prohibited b City's policy do not exclude it from th investments, provided that the fund's repo or Financial Services Officer to LAIF's portfolio. 10. Local government investmen a. San Diego County Investmen 11. Corporate medium t a. Such notes have specified in the s list of allowable Director of Finance dge the risk inherent in otes (MTN , provided that: aturity of 5 years; b. Are issued by corporations organized and operating within the United States or depository institutions licensed by the United States or any state ._• op pg within the United States; 1 rate+ ' category or better by at least two nationally recognized sta . ting organization; and, Holdings of medium -term notes may not exceed 30% of the portfolio and o more than 5°/Q per issuer. 12. ortgage 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 maed 20% of the portfolio. 13. Money market mutual funds that are registered with tficurities and Exchange Commission under the Investment Company a. Provided that such funds meet either of the fo 1. Attained the highest ranking or the hig provided by not less than two organizations; or, numerical rating cognized statistical rating 2. Have retained an in t advis registered or exempt from registration with the Securi and . xchange Commission with not less than five ears' experi investing in the securities and obligations au ed by Califs is Government Code Section 53601 (a through j) and assets under management in excess of $500 million. b. Purchase of s of the po r IX. PORTFOLIO RISK NI' GEMENT orized by this subdivision may not exceed 20% The .ollowingw-e prohibited investment vehicles and practices: 1. State law notwithstanding, any investments not specifically described herein arc prohibited, including, but not limited to futures and options. i 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 len any other form of borrowing or leverage is prohibited. 7. The purchase of foreign currency denominated securities is ited. B. Mitigating credit risk in the portfolio Credit risk is the risk that a security or a portfolio will lose or all of its value due to a real or perceived change in the ab of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies: I 1. The diversification requirem4 included i� Section IX are designed to mitigate credit risk in the portfolio; 2. No more than 5% of .tal portfoliimay be invested in securities of any single issuer, other than th ' Government, its agencies and enterprises; 3. The City may eleoaiurity prior to its maturity and record a capital gain or loss in or to improve the quality, liquidity or yield of the portfolio in response t�rket conditions or City's risk preferences; and, 4. Ifacuri wned'6y the City are downgraded by either Moody's or S&P to ley the quality required by this Investment Policy, it will be the City s to review the credit situation and make a determination as to ell or retain such securities in the portfolio. 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 9 of 18 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 o �, longer - term portfolios have higher volatility of return. The City will itiga : ket risk by providing adequate liquidity for short-term cash needs, and akin _ , ger- term investments only with funds that are not needed for s t cas flow purposes. The City further recognizes that certain types •. ecuri" eluding variable rate securities, securities with principal paydo aturity, and securities with embedded options, will affect the profile of the portfolio differently in different interest rate envir ents e City, therefore, adopts the following strategies to control . r i a exposure to market risk: 1. The City will maintain a min urn of thre on of budgeted operating expenditures in short term istments to ovide sufficient liquidity for expected disbursements; 2. The maximum perce callable sec -+ ities (does not include "make whole call" securities as defined e Glossary) in the portfolio will be 20%; 3. The maximum st will be five years, 4. The durat di*tion tY tole rity of individual securities in the portfolio therwise stated in this policy; and, rtfolio will at all times be approximately equal to the us or minus 20%) of a Market Benchmark Index selected on the City's investment objectives, constraints and risk e City's current Benchmark will be documented in the estment procedures manual. X. LsNTST 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 10of18 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 investment policy procedures in a separate investment procedure investment staff with day-to-day operations of the investment progr this policy. Such procedures will include explicit delegation of a responsible for investment transactions. No person may eng transaction except as provided under the terms of this po established by the Director of Finance and/or Financial Servi B. Internal Controls The Director of Finance and/or Financial Sery and maintaining an internal control structur are protected from loss, theft or misuse. provide reasonable assurance that these obje described in the City's investmentrocedures ma XII. REPORTING A. Quarterly reports Quarterly inves Financial Se consiAnt includin written to assist t with to persons vestment procedures onsible for establishing that the assets of the City al structure will be designed to met. Internal controls will be will be submitted by the Director of Finance and/or er to the City Council, at an agendized meeting, irements contained in Government Code section 53646, ted to the following information: e of irestment ame of issuer and/or financial institution ate of purchase e of maturity 5. urrent 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 econo Related Policy References Ca. Government Code Sections: 16429.1 — 16429.4, and 53600 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 frcNe' Page 12 of 18 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 ezd S/c cz>4 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 cj/s and debt obligations. FFCB. The Federal Farm Credit Bank System provides credit the agricultural industry. FFCB issues discount notes and bonds. FHLB. The Federal Home Loan Bank provides cred'ity in the housing market. FHLB issues discount notes and bonds. FHLMC. Like FHLB, the Federal Home Loan Mortg;..e o ►.'wration provides credit and liquidity in the housing market. FHLMC, also called eddieMac" issues discount notes, bonds and mortgage pass -through securities. l FNMA. Like FHLB and FreddieMae, e Federal National Mortgage Association was established to provide credit and li• +'ty in the 'housing market. FNMA, also s, bonds and mortgage pass -through known as "FannieMae," issues discou securities. GNMA. The Govern- ent National ortgage Association, known as "GinnieMae," issues mortgage p ough secu ies, which are guaranteed by the full faith and credit of the US Governmen PEFCO. The Private corporation assists exporters. Obligations of PEFCO are not guaranteed y t 1 f: ith and credit of the US government. TVA. The Tennesse r; ' uthority provides flood control and power and promotes development i o the Tennessee, Ohio and Mississippi River valleys. TVA currentl issues discou es and bonds. Asker The'pric at ich a seller offers to sell a security. Average life. I ortgage-related investments, including CMOs, the average time tA• ex ected receipt of principal payments, weighted by the amount of principal exd. ker's acceptance. A money market instrument created to facilitate internati r trde transactions. It is highly liquid and safe because the risk of the trade transaction ransferred 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 Pave 14 of 18 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 bona istribute the cash flows of mortgage securities (and whole loans) to create can that have different levels of prepayment risk, as compared to the underlying mo - securitiest. Commercial paper. The short-term unsecured debt of corpora Cost yield. The annual income from an investment divid- • • the b ase cost. Because it does not give effect to premiums and discounts whic • a v- ►..- included in the purchase cost, it is an incomplete measure of return. Coupon. The rate of return at which interest is paid (in a b 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 incom om an investment divided by the current market value. Since the mathematical tion relies on the current market value rather than the investor's cost, current yield is elateto the actual return the investor will earn if the security is held to aturity. Dealer. A dealer acts rincipal in curity transactions, selling securities from and buying securities for his o sition. Debenture. A bond secu :s on he general credit of the issuer. Delivery vs. payment I curities industry procedure whereby payment for a security must be made he security is delivered to the purchaser's agent. Derivative. Any securit has principal and/or interest payments which are subject to uncertainty (but f r reasons of default or credit risk) as to timing and/or amount, or at. security which resents a component of another security which has been separatedom r components ("Stripped" coupons and principal). A derivative is also defined tis a fi instrument the value of which is totally or partially derived from the value ofkother ent, interest rate or index. Discount. e difference between the par value of a bond and the cost of the bond, the cost is below par. Some short-term securities, such as T-bills and banker's a• stances, are known as discount securities. They sell at a discount from par, and re I 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 15 of 18 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 cony - . ._o ash, Make Whole Call. A type of call provision on a bond that . ows issuer to pay off the remaining debt early, Unlike a call option, with a make w call r. F' ,ion, the issuer makes a lump sum payment that equals the net present val ' V) a ture coupon payments that will not be paid because of the call. Wi his t " call, an investor is compensated, or "made whole." Margin: The difference between the market value . yi. and the loan a broker makes using that security as collateral. Market risk. The risk that the value of see untti fluctuate with changes in overall market conditions or interest rates. Market value. The price at which a security can tra ed. Marking to market. The process -of posting cu t market values for securities in a portfolio. Maturity. The final date u on which the principal of a security becomes due and payable. Medium term notes. Uns ed, investment -grade senior debt securities of major corporations which are so +. in r v ly small amounts either on a continuous or an intermittent basis. MTNs a able debt instruments that can be structured to respond to market opportuniti estor preferences. Modified dura ' Th ent change in price for a 100 basis point change in yields. Modified dura n i best single measure of a portfolio's or security's exposure to market risla M ey rkee market in which short term debt instruments (Mills, discou s o es, co erci paper and banker's acceptances) are issued and traded. age p -through securities. A securitized participation in the interest. al cashflows from a specified pool of mortgages. Principal and interest paymen - ade on the mortgages are passed through to the holder of the security. M fund. An entity which pools the funds of investors and invests those funds in a -t of securities which is specifically defined in the fund's prospectus. Mutual funds can be invested in various types of domestic andlor 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 se in the conduct of an enterprise of like character and with like aims to cco�i similar purposes." Realized yield. The change in value of the portfolio due to i received and interest earned and realized gains and losses. It does not give effec o ch n market value on securities, which have not been sold from the portfolio. Regional dealer. A financial intermediary that buy unties for the benefit of its customers without maintaining substantial in�on - .ecurities, and that is not a primary dealer. Repurchase agreement (RP, Repo). simultaneous agreement to sell the securiti point of view, the same transaction is a re Safekeeping. A service to bank cus bank in the customer's name. Short Term. Less than one (1) year's tim Structured note. A compl based on a formula tied to other ' teres co inverse floating rate notes wh. falling, and which fall whe which pay interest based on example, the yield on the t notes lock in wlreduged cost o Ti al ra es of securities with a ghef price. From the seller's agreement. eby securities are held by the fixed income instrument, which pays interest, commodities or indices. Examples include ons that increase when other interest rates are est rates are rising, and "dual index floaters," lationship between two other interest rates - for Treasury note minus the Libor rate. Issuers of such orrowing by purchasing interest rate swap agreements. of retie: A measure of a portfolio' performance over time. It is the which equates the beginning value of the portfolio with the ending est earnings, realized and unrealized gains, and losses in the 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 ate 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 17 of 18 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. S/c ‘zyPd 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 + ay to make donations to the City in either cash or in -kind contributions that ,i ance cts, facilities, and programs, and the need for such projects, facilities . + . _rams often exceeds the City's ability to fund them. Accordingly, it is an accpropriate practice to accept donations, in order to enhance city programs . + o i ' °s to provide a higher level of service to the public. The purpose of this policy is to establish an ord- efficient process for the acceptance of donations made to the City. It is als port. o process donations in such a way so as to distinguish between donations made the ity, versus those made to individuals (ie gifts or campaign contributions),, Policy All donations made to the City following: shall be accepted and Processed according to 1. The donation must hav a o eTnsistent with Citygoals g sand objectives. 2. The City Coun ' - deeline any donation without comment or cause. 3. The datio : t not e in conflict with any provision of the law. ill be aesthetically acceptable to the City of National City. donation will not add to the workload of the City Council or staff unless it de a net benefit to the City. the 6. Th- 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 natu i ay be in the form of signage, marking or naming, as determined by the . Council. Regardless of the recognition strategy selected, the intent shall • app tely honor the donor for their contribution to the community. ..earance of traditional commercial advertising or product endorsem that ate the donor shall be prohibited. 10. All monetary donations shall be submitted to the receipt shall be made available from th Recipient departments shall notify t received, whether monetary or oth ailment staff. A epartment, upon request. ent of all donations 11. Cash donations exceeding $5,000, an• -kin., donations exceeding $5,000 in value, must be submitted through a agreement consistent with these guidelines and approved e City Con il. In -kind capital donations will be subject to normal City review, itting, inspection and insurance requirements. 11 At the time of ac acknowledged in write City Attorney. copy forward • Related Counci ' olicy #1 I • ating City Property & Police Unclaimed Property Coun ''1 Pol #117: aistribution & Reporting of Tickets and Passes TWotes for "Donation Acceptance" agreements are attached to this policy donations, regardless of value, will be recipient department, in a format approved by the acknowledgement will be sent to the donor and a ce Department. Prior Police Amendments None Page 2 of 4 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. Th and acknowledges that pursuant to Sections 37354 and 37355 of the C Code, the City is authorized to accept said donation for any public purpose th nderstands 'eminent City des es. Due to the nature of the donation work of art and the site on which it is i� ed,1h' /NOR and his/her agents, heirs, successors and assigns hereby waive any and all , gh y have under thee California Art Preservation Act, as set forth in Civil Code Se '. r DONOR agrees that upon completion, the physical work of art which is create • .; soon: is Agreement shall be transferred to and shall vest in the City of National ' , : u • e DO OR hereby expressly waives and releases all rights of ownership to the w cl ose under Civil Service Code Section 988. The DONOR, his/her agent.. eirs, succ •rs d assigns also agree not to attempt to defeat this waiver by cooperating y organiz. •n which seeks to bring an action under Civil Code Section 989. The Donor hereby releases the City against and from any and all liabili proceedings, costs or attorney's fees, o City's use of the Donation. The individual executi legal power, light partnership or otr-rwis executio . + .. that exec ton o bo .te er agr Dated: thorit National City . its officers, employees and volunteers, damages t property, claims, demands, suits, actions, kind or nature, resulting from or arising out of the nt on behalf of the Donor represents that he/she has the bind the Donor; that all requisite action (corporate, trust, been taken by the Donor in connection with authorizing the at this document shall be legally enforceable as to the Donor; and ocument does not conflict with or result in the breach of any contract, ment or instrument to which the Donor is a party. 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 ofDonor) makes an unconditional donation, in perpetuity, of (Description of Donation) 4. (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 C ornia Gove ent Code, the City is authorized to accept said donation for any public purpose tha the City dues. As a condition of the granting of permission by the City of National Cit.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 a. tints, from and against any and all claims, demands, costs, losses, liability or, for any personal or both, or any litigation and other liability, includin arising out of or related to the use of public prop contractors. The Donor agrees to provide a insurance for bodily injury and property dam employees named as additional insured. A certifi mum of ich includ f insur; ry, death or property damage, s and the costs of litigation, or its agents, employees or ,000,000 combined single limit the City, its officials, agents and ce must be attached to this form. The individual executing this doc t on behalf of - Donor represents that he/she has the legal power, right and authority t • the Donor; ' hat all requisite action (corporate, trust, partnership or otherwise) has been tak. .y the Donor in connection with authorizing the execution of this document; that -, . ocurn all be legally enforceable as to the Donor; and that the execution of this doe i t .ar it onflict with or result in the breach of any contract, bond, note or other agreement a""' to which the Donor is a party. Dated: For OfficOnly Certificate of Insurance Approved DONOR By: (Authorized Representative) Date Page 4 of 4 CITY COUNCIL POLICY CITY OF NATIONAL CITY TITLE: Intrabudget Adjustment Request Policy for the Mayor and City Council POLICY #205 ADOPTED: January 16, 2007 AMENDED: Purpose To establish a procedure for the transfer of funds, from one ac nt O another, for accounts within the control of the Mayor or a City Councilmember. Policy The Intrabudget Adjustment Request (IBAR) is the proced t is used to transfer an appropriation from one budgetary account to another. For accounts within the control of a Councilmemb- , the IEAR form shall be signed by the Councilmember initiating the request, and co e+ by the Mayor. For accounts within the control of the Mayor, and countersignedby the Vi The IBAR form is available from the Related Policy References Budget Manual Prior Polic Amen None e IBAR form shall be signed by the ce Department or via the City's Intranet page. Page 1 of 1 l Deleted: also l Deleted: also 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 Purpose To establish a procedure for the transfer of funds, from one acco accounts within the control of the Mayor or a City Councilmernbe AMENDED: Policy The Intrabudget Adjustment Request (IBAR) is the proc appropriation from one budgetary account to anot nether, for sed to transfer an For accounts within the control of a Couyilinember, th BAD form shall be signed by the Councilmember initiating the request,..//ane d countersi aF -.0 by the Mayor. For accounts within the control the Mayor, Mayor, and countersigned by the ayor. The IBAR form is available fro Related Policy References Budget Manual Prior Polic tmen None AR form shall be signed by the Department or via the City's Intranet page. Page 1 of 1 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 an ending litigation quickly and effectively and to serve as broad statemen COpolicy on a variety of public issues. Policy The CityCouncil shall adopt a legislative and 'udici lat .'"r and annual legislative p g ] � priorities, developed by staff as policy parameters in r to respond to proposed legislation and pending litigation quickly. The direction p ovided in the legislative and judicial platform will encompass principles fundameNol 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 p d' e 'onal, state, and federal policy issues for the City of National City. Genera egislative priorities document shall include only those items of a direct and su nt impact on municipal operations. The City will work with local legislates, as appropriate, in advancing the City's adopted legislative platform. The City of National Ci y le fative platform and priorities formally establishes the City's position on pe r i i .:g egislative matters. With this policy guidance, the City Manager's Office s • to for and against legislative matters as appropriate without waiting for Coun a + . The method of communication and level of engagement will be dete rr s . y the City Manager's Office based on the Council priorities, legislati e , and urgency of the legislative proposal. The City Council will be prov R + th gislative updates and copies of correspondence sent on behalf of the City. S' - ilarly, platform and priorities allow the staff to provide input into the judicial sys , s h as by adding the City's name to amicus curiae briefs, by corresponding with appe . e 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 Page I of 8 TITLE: Legislative and Judicial Platform POLICY #301 ADOPTED: February 24, 1991 AMENDED: 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 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 pl.. fo` gneeded. The Council shall annually adopt legislative priorities. On or before No . r 15th, the City Manager shall submit legislative policy recommendations to . - C n for review. On or before the final City Council Meeting in December, th Council shall formally adopt the annual Legislative Priorities. On or before April Ist, the City Manager's office shall come items to be submitted for inclusion in the state and/or federal budget. On or ....re June Pt, the City Council shall formally adopt the budget items for inclusion o : of National City. The priorities and timelines may be amen the City Council from time to time when action on a matter appears to be of su ie urgency that it would not be in the city's best interest to wait until the next le ti year. Related Policy References Legislative and Judicial a Memo attached as part of this policy Prior Palle A November 18, nts Page 2 of 8 CALEFORNJA -- taTIONAL ciry Ol? iN�fiOHi°O$.dl'TIDv 2009 CITY OF NATIONAL CITY LEGISLATIVE AND JUDICIAL PLATFORM (110) AND CORE PRIORITIES on.> The National City Council urges the Legislature to: • Preserve and enhance the City's ability to deliver quality st-effective services to National City's residents and visitors. f • Preserve and enhance the City Council's ability to serve National City residents by retaining local decision making authority and i,dining state legislative and voter commitments for revenue resources. ��'' P � LEGIS TINT: PLATFORM MUNICIPAL CORE b GISLATIVE PRIORITIES The following eight core l slia4Ge priorities highlight issues that could significantly affect National City aril tive advocacy efforts which will be focused in these priority areas. I. HOME RUL ! CAL SUSTAINABILITY Local Control Thelieves 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. 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 bond' housing and infill infrastructure projects and parks. The city recogni these key project areas will help to spur economic activity in 'ort ity. orrtreet projects, at funding for The City supports efforts to provide more flexibility rai revenue for necessary infrastructure projects. The City supports federal and state economic necessary resources and funds to invest in ne the transfer of goods and services throu t:$ economic development. III. TRANSPORTATION The City believes the mo success and to the mai City encourages the L multi -modal tran transportation decision-maki Cill of goods and people is vital to continued of a high quality of life. In order to preserve these, the e to invest in the maintenance and expansion of the State's network. The City supports regional coordination in but opposes efforts that limit local control in the transportation cess. us initiatives that provide the infrastructure projects to improve region, create jobs and encourage economic orts measures to finance local and regional multi -modal transportation is 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 <1.) Cb/ Generally, the City is supportive of any legislative measures t�areconsistent with the policies and intent of one or more of the foregoing principles. Filthier, the City Council supports efforts that grant Port communities the ability to ly address the economic and environmental impacts directly and indirectly attributed fo the Port. National City is also supportive of public policy that provides fin ciincentives to Port communities for the preservation and expansion maritime ac Ikithin its jurisdiction. V. ENERGY CONSERVATION & E The City recognizes the impo and private sector entities to environmental programs NTAL PROTECTION of working cooperatively with other governmental ent and manage efficient, cost-effective, and sound ces that secure clean air, water and land. The City supports ap s opr ate legislation and regulation that promotes pollution prevention, supp energy conservation efforts and encourages green development without imposrii� nded mandates. efforts that place a severe financial burden on municipalities. 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 5of8 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. t The City opposes any attempt to limit local control over, or ability to execute onomic development projects including through the diversion of redevelopment fuming The City opposes any state or federal proposals that reduce ec o lc investment opportunities at the local level. This includes reductions anc].triyiPlons to block grants and housing subsidies. VIII. AFFORDABLE HOUSING The City recognizes the importance of housing` f r.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 omponent to workforce recruitment and retention. This includes support for federal an c state participation and financial support of programs to provide adequate housing for the elderly, disabled and low income persons throughout the community. The followin and a ATIVE PLATFORM CONTINUED rm statements address additional legislative issues that may arise, ly 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 lits as 1p the filing and serving of claims and lawsuits as well as any efforts to open public entities to liability for punitive or exemplary damages. Ccs' The City opposes any efforts to expand situations in which public en,tie"s may be liable to pay for litigants' attorneys' fees or other litigation expensecii:13 EMPLOYEE RELATIONS AND BENEFITS ti The City supports efforts that provide the City w' essary resources and authority to establish appropriate working conditions and Alen s to its employees. This includes preserving and enhancing equal emplo , t opportunities for all people seeking employment, and opposing efforts t 46v.,0 the local decision making authority in /sr, employee issues. The City is supportive of effo management relations and op The City supports effo turn results in increase that result in improved public and private sector labor fforts that impose state mandates. 'event abuses within the compensation system, which in the municipality. PUBLIC SAIAND EMERGENCY SERVICES Th City s orts initiatives to preserve and enhance the ability of local governments to str gic y plan for and respond to emergencies and efforts to ensure that the greatest leve 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. C17/ ssp*CC e) c° �fiC) 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 legis litigation quickly and effectively and to serve as broad statement of Ci variety of public issues. Policy The City Council shall adopt a legislative and priorities, developed by staff as policy par legislation and pending litigation quickly. judicial platform will encompass princip platform shall be updated and revised by th Council shall adopt legislative prifles annual! and annual legislative respond to proposed roVided in the legislative and o the needs of the City. This as necessary. In addition, the ese Council endorsed legislative priorities may address specific a ding regio , state, and federal policy issues for the City of National City. General he legislative priorities document shall include only those items of a direct and substantiajimpact on municipal operations. The City will work with local legislators, as appropriate, in advancing the City's adopted legislative platform. The City of National gi ive platform and priorities formally establishes the City's positigrp on pending slative matters. With this policy guidance, the City Manager's Office shall advoc to for and against legislative matters as appropriate without waiting ouncil approval. The method of communication and level of engagement will de rmined by the City Manager's Office based on the Council priorities, lei. ve ate, aitd urgency of the legislative proposal. The City Council will be provi. 'ith legislative updates and copies of correspondence sent on behalf of the City. Similarly, latform and priorities allow the staff to provide input into the judicial system, suc 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 Page 1 of 8 TITLE: Legislative and Judicial Platform POLICY #301 ADOPTED: February 24,1991 AMENDED: 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 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 ed. The Council shall annually adopt legislative priorities. On or before November th, 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 inclusion in the state and/or federal budg4 formally adopt the budget items for inclusion o pile'items to be submitted for une 1st, the City Council shall National City. The priorities and timelines may r ii ended by t City Council from time to time when action on a matter appears to be of cient urgency that it would not be in the city's best interest to wait until the next Legisl. - ear. Related Polk Refere Legislative and Judie'eno attached as part of this policy • Pagge2of8 CALIFORNIA NiVrIONAL AL 2009 CITY OF NATIONAL CITY LEGISLATIVE AND JUDICIAL PLATF AND CORE PRIORITIES The National City Council urges the Legislature to: • Preserve and enhance the City's ability to deliver quali to National City's residents and visitors. • Preserve and enhance the City Council's Naonal City residents by retaining local decision making autho + maintai g state legislative and voter commitments for revenue resources. LEGISLVE PLATFORM MUNICIPAL The following eight co affect National City priority areas._ L1GISLATIVE PRIORITIES priorities highlight issues that could significantly eve advocacy efforts which will be focused in these I. HO01ilOkIFI iL 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. 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 s projects, housing and infill infrastructure projects and parks. The city rec6gnifunding for these key project areas will help to spur economic activity in iational The City supports efforts to provide more flexib' ii ng revenue for necessary infrastructure projects. The City supports federal and state . + c stim s initiatives that provide the necessary resources and funds to invest in neti astructure projects to improve the transfer of goods and services throughout :: egion, create jobs and encourage economic development. III. TRANSPORTATION The City believes the At eme goods and people is vital to continued economic success and to the maiitteriance of a high quality of life. In order to preserve these, the City encourafts the Legislature to invest in the maintenance and expansion of the State's multi -modal transportation network. The City supports regional coordination in transportation planni�but opposes efforts that limit local control in the transportation de son.-mak i. g pro ' ss. The City suppprts measures to finance local and regional multi -modal transportation improvements and to enhance transportation funding equity. i 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. Page4of8 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 measureslthat sistent with the policies and intent of one or more of the foregoin! •; - ' iples. Further, the City Council supports efforts that grant Port communities and environmental impacts directly and ind' also supportive of public policy that pro for the preservation and expansion maritime ac to fully address the economic tly attribu4ed to the Port. National City is ancial centives to Port communities es n its jurisdiction. V. ENERGY CONSERVATION & EN ONMENTAL PROTECTION The City recognizes the impare of w$rking cooperatively with other governmental and private sector entities to i plemcnt and manage efficient, cost-effective, and sound environmental progr. ern§ that secure clean air, water and land. The City sut s ari=te legislation and regulation that promotes pollution preventii , up en- conservation efforts and encourages green development witho , im I • sing u ed mandates. The C : poses efforts that place a severe financial burden on municipalities. VI. LAND U 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 e'Cite ec��iic development projects including through the diversion of redevelopmen The City opposes any state or federal proposals that reduc - �.. , c/investment opportunities at the local level. This includes reductions an ' ;. o block grants and housing subsidies. VIII. AFFORDABLE HOUSING The City recognizes the importance of housi income levels as critical to the balanced and healthy growth o the city and communities. The City supports affordable housing efforts as a mponent to workforce recruitment and retention. This includes support for federal and participation and financial support of programs to provide adequate housing for elde isabled and low income persons throughout the community. ATIVE PLATFORM CONTINUED platfostatements address additional legislative issues that may arise, 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 ti e 1' t+ the filing and serving of claims and lawsuits as well as any efforts to ope blic ; .`' s to liability for punitive or exemplary damages. The City opposes any efforts to expand situations in which pu , c �l� °'.;c ay be liable to pay for litigants' attorneys' fees or other litigation expense EMPLOYEE RELATIONS AND BENEFI The City supports efforts that provide th establish appropriate working conditions and preserving and enhancing equ employment employment, and opposing effo t remove t employee issues. ary resources and authority to o its employees. This includes ortunities for all people seeking e local decision making authority in ANItsThe City is supportive of effort rszflt in improved public and private sector labor management relations and oppos4s eb'rts that impose state mandates. The City supj�a,rts e turn results iti�nere.: PU The Cit strategicall level of pu to prevent abuses within the compensation system, which in sts to the municipality. D EMERGENCY SERVICES s initiatives to preserve and enhance the ability of local governments to an for and respond to emergencies and efforts to ensure that the greatest lie 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 S 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. S/d ezy* Page 8 of 8 I 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. Page 1 of 9 TITLE: Procedures and Requirements for POLICY # 402 Development Agreements ADOPTED: September 6, 2011 AMENDED: A. Requirements for Applications and Agreements A. i Forms and Information 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 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 commence; 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 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 Review 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 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 concurrently 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 jet __ seq.) or other authority. B. Notices and Hearings 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 Comment ICS1]: GC 6500 is correct - this section is addressing allowing joint powers also be a party to such agreements. 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 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 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 fmdings 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 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 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. 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 approving 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 "B'. E. Recordation El 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 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 a determination; or c. Refer the review to the Planning Commissionfor 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 costsfor 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 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 Prior Policy Amendments None Page 9 of 9 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 of Overhead Utility Lines on Private Properties POLICY: 503 ADOPTED: June 6,1995 AMENDED: August 1, 1995 A4 Page 1 of 1 t RESOLUTION NO. 2013 —189 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ADOPTING AMENDED CHAPTERS 200 THROUGH 500 OF THE CITY COUNCIL POLICY MANUAL, WHICH INCLUDES AMENDED POLICIES 201, 203, 205, 301 AND 402, AND DELETING POLICIES 202, 501, AND 503 WHEREAS, at the City Council meeting on October 8, 2013, the City Council publicly reviewed and approved amending Chapters 200-500 of the City Council Policy Manual, which included amending Policies 201, 203, 205, 301 and 402, and deleting Policies 202, 501, and 503. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby adopts the following amended Council Policies as part the City Council Policy Manual: 201, 203, 205, 301 and 402. BE IT FURTHER RESOLVED that City Council Policies 202, 501, and 503 are hereby deleted. PASSED and ADOPTED this 10th day of December, 2013. Ron Morrison, Mayor ATTEST: Michael R. Dalla, City Clerk APPROVED AS TO FORM: Claudia Gacitua Silva City Attorney