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HomeMy WebLinkAbout2008 CON CDC NBS Local Government Solutions - Administrative ServicesAGREEMENT BY AND BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY AND NBS LOCAL GOVERNMENT SOLUTIONS THIS AGREEMENT is entered into this 4th day of August, 2008, by and between the COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY, a municipal corporation (the "CDC"), and NBS LOCAL GOVERNMENT SOLUTIONS (the "CONTRACTOR"). RECITALS WHEREAS, the CDC desires to employ a CONTRACTOR to provide landscape maintenance district and property based business improvement district administrative services. WHEREAS, the CDC has determined that the CONTRACTOR is a special tax consultant and is qualified by experience and ability to perform the services desired by the CDC, and the CONTRACTOR is willing to perform such services. NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS FOLLOWS: 1. ENGAGEMENT OF CONTRACTOR. The CDC hereby agrees to engage the CONTRACTOR, and the CONTRACTOR hereby agrees to perform the services hereinafter set forth in accordance with all terms and conditions contained herein. The CONTRACTOR represents that all services required hereunder will be performed directly by the CONTRACTOR, or under direct supervision of the CONTRACTOR. 2. SCOPE OF SERVICES. The CONTRACTOR will perform services as set forth in the attached Exhibit "A". The CONTRACTOR shall be responsible for all research and reviews related to the work and shall not rely on personnel of the CDC for such services, except as authorized in advance by the CDC. The CONTRACTOR shall appear at meetings cited in Exhibit "A" to keep staff and the Community Development Commission advised of the progress on the project. The CDC may unilaterally, or upon request from the CONTRACTOR, from time to time reduce or increase the Scope of Services to be performed by the CONTRACTOR under this Agreement. Upon doing so, the CDC and the Revised August 2005 CONTRACTOR agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction or increase in the compensation associated with said change in services, not to exceed a factor of 10% from the base amount. 3. PROJECT COORDINATION AND SUPERVISION. Patricia Beard hereby is designated as the Project Coordinator for the CDC and will monitor the progress and execution of this Agreement. The CONTRACTOR shall assign a single Project Director to provide supervision and have overall responsibility for the progress and execution of this Agreement for the CONTRACTOR. Greg Davidson thereby is designated as the Project Director for the CONTRACTOR. 4. COMPENSATION AND PAYMENT. The compensation for the CONTRACTOR shall be based on quarterly billings covering actual work performed. Billings shall include labor classifications, respective rates, hours worked and also materials, if any. The total cost for all work described in Exhibit "A" shall not exceed the schedule given in Exhibit "A" (the Base amount) without prior written authorization from the Executive Director. Quarterly invoices will be processed for payment and remitted within thirty (30) days from receipt of invoice, provided that work is accomplished consistent with Exhibit "A"as determined by the CDC. The CONTRACTOR shall maintain all books, documents, papers, employee time sheets, accounting records, and other evidence pertaining to costs incurred and shall make such materials available at its office at all reasonable times during the term of this Agreement and for three (3) years from the date of final payment under this Agreement, for inspection by the CDC and for furnishing of copies to the CDC, if requested. 5. LENGTH OF AGREEMENT. This Agreement shall expire on August 5, 200g. 6. DISPOSITION AND OWNERSHIP OF DOCUMENTS. Memoranda, reports, maps, drawings, plans, specifications and other documents prepared by the CONTRACTOR for this Project, whether paper or electronic, shall become the property of the CDC for use with respect to this Project, and shall be turned over to the CDC upon completion of the Project, or any phase thereof, as contemplated by this Agreement. Contemporaneously with the transfer of documents, the CONTRACTOR hereby assigns to the CDC, and CONTRACTOR thereby expressly waives and disclaims, any copyright in, and the right to reproduce, all written material, drawings, plans, specifications or other work prepared under this Agreement, except upon the CDC's prior authorization regarding reproduction, which authorization shall not be unreasonably withheld. The CONTRACTOR shall, upon request of the CDC, execute any further document(s) necessary to further effectuate this waiver and disclaimer. The CONTRACTOR agrees that the CDC may use, reuse, alter, reproduce, modify, assign, transfer, or in any other way, medium or method utilize the 2 Revised August 2005 CONTRACTOR's written work product for the CDC's purposes, and the CONTRACTOR expressly waives and disclaims any residual rights granted to it by Civil Code Sections 980 through 989 relating to intellectual property and artistic works. Any modification or reuse by the CDC of documents, drawings or specifications prepared by the CONTRACTOR shall relieve the CONTRACTOR from liability under Section 14 but only with respect to the effect of the modification or reuse by the CDC, or for any liability to the CDC should the documents be used by the CDC for some project other than what was expressly agreed upon within the Scope of this project, unless otherwise mutually agreed. 7. INDEPENDENT CONTRACTOR. Both parties hereto in the performance of this Agreement will be acting in an independent capacity and not as agents, employees, partners or joint venturers with one another. Neither the CONTRACTOR nor the CONTRACTOR'S employees are employees of the CDC and are not entitled to any of the rights, benefits or privileges of the CDC's employees, including but not limited to retirement, medical, unemployment, or workers' compensation insurance. This Agreement contemplates the personal services of the CONTRACTOR and the CONTRACTOR's employees, and it is recognized by the parties that a substantial inducement to the CDC for entering into this Agreement was, and is, the professional reputation and competence of the CONTRACTOR and its employees. Neither this Agreement nor any interest herein may be assigned by the CONTRACTOR without the prior written consent of the CDC. Nothing herein contained is intended to prevent the CONTRACTOR from employing or hiring as many employees or subcontractors as the CONTRACTOR may deem necessary for the proper and efficient performance of this Agreement. All agreements by CONTRACTOR with its subcontractor(s) shall require the subcontractor to adhere to the applicable terms of this Agreement. 8. CONTROL. Neither the CDC nor its officers, agents or employees shall have any control over the conduct of the CONTRACTOR, or any of the CONTRACTOR's employees except as herein set forth, and the CONTRACTOR expressly agrees not to represent that the CONTRACTOR or the CONTRACTOR's agents, servants or employees are in any manner agents, servants or employees of the CDC, it being understood that the CONTRACTOR, its agents, servants and employees are as to the CDC wholly independent contractors, and that the CONTRACTOR's obligations to the CDC are solely such as are prescribed by this Agreement. 9. COMPLIANCE WITH APPLICABLE LAW. The CONTRACTOR, in the performance of the services to be provided herein, shall comply with all applicable state and Federal statutes and regulations, and all applicable ordinances, rules and regulations of the City of National City, whether now in force or subsequently enacted. The CONTRACTOR, and each of its subcontractors, shall obtain and maintain a current City of National City business license prior to and during performance of any work pursuant to this Agreement. 3 Revised August 2005 10. LICENSES, PERMITS, ETC. The CONTRACTOR represents and covenants that it has all licenses, permits, qualifications and approvals of whatever nature that are legally required to practice its profession. The CONTRACTOR represents and covenants that the CONTRACTOR shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement, any license, permit or approval which is legally required for the CONTRACTOR to practice its profession. 11. STANDARD OF CARE. A. The CONTRACTOR, in performing any services under this Agreement, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the CONTRACTOR's trade or profession currently practicing under similar conditions and in similar locations. The CONTRACTOR shall take all special precautions necessary to protect the CONTRACTOR's employees and members of the public from risk of harm arising out of the nature of the work and/or the conditions of the work site. B. Unless disclosed in writing prior to the date of this agreement, the CONTRACTOR warrants to the CDC that it is not now, nor has it for the five (5) years preceding, been debarred by a governmental agency or involved in debarment, arbitration or litigation proceedings concerning the CONTRACTOR's professional performance, or the furnishing of materials or services relating thereto. C. The CONTRACTOR is responsible for identifying any unique products, treatments, processes or materials whose availability is critical to the success of the project the CONTRACTOR has been retained to perform, within the time requirements of the CDC, or, when no time is specified, then within a commercially reasonable time. Accordingly, unless the CONTRACTOR has notified the CDC otherwise, the CONTRACTOR warrants that all products, materials, processes or treatments identified in the project documents prepared for the CDC are reasonably commercially available. Any failure by the CONTRACTOR to use due diligence under this sub -paragraph will render the CONTRACTOR liable to the CDC for any increased costs that result from the CDC's later inability to obtain the specified items or any reasonable substitute within a price range that allows for project completion in the time frame specified or, when not specified, then within a commercially reasonable time. 12. NON-DISCRIMINATION PROVISIONS. The CONTRACTOR shall not discriminate against any employee or applicant for employment because of age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. The CONTRACTOR will take positive action to insure that applicants are employed without regard to their age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. Such action shall include but not be limited to the following: employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The CONTRACTOR agrees to post in conspicuous places available to employees and applicants for employment any notices provided by the CDC setting forth the provisions of this non-discrimination clause. 4 Revised August 2005 13. CONFIDENTIAL INFORMATION. The CDC may from time to time communicate to the CONTRACTOR certain confidential information to enable the CONTRACTOR to effectively perform the services to be provided herein. The CONTRACTOR shall treat all such information as confidential and shall not disclose any part thereof without the prior written consent of the CDC. The CONTRACTOR shall limit the use and circulation of such information, even within its own organization, to the extent necessary to perform the services to be provided herein. The foregoing obligation of this Section 13, however, shall not apply to any part of the information that (i) has been disclosed in publicly available sources of information; (ii) is, through no fault of the CONTRACTOR, hereafter disclosed in publicly available sources of information; (iii) is already in the possession of the CONTRACTOR without any obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to the CONTRACTOR by a third party, but only to the extent that the use or disclosure thereof has been or is rightfully authorized by that third party. The CONTRACTOR shall not disclose any reports, recommendations, conclusions or other results of the services or the existence of the subject matter of this Agreement without the prior written consent of the CDC. In its performance hereunder, the CONTRACTOR shall comply with all legal obligations it may now or hereafter have respecting the information or other property of any other person, firm or corporation. CONTRACTOR shall be liable to CDC for any damages caused by breach of this condition, pursuant to the provisions of Section 14. 14. INDEMNIFICATION AND HOLD HARMLESS. The CONTRACTOR agrees to defend, indemnify, and hold harmless the Community Development Commission of the City of National City, its officers and employees, against and from any and all liability, Toss, damages to property, injuries to, or death of any person or persons, and all claims, demands, suits, actions, proceedings, reasonable attorneys' fees, and defense costs, of any kind or nature, including workers' compensation claims, of or by anyone whomsoever, resulting from or arising out of the CONTRACTOR's negligent performance of this Agreement. 15. WORKERS' COMPENSATION. The CONTRACTOR shall comply with all of the provisions of the Workers' Compensation Insurance and Safety Acts of the State of California, the applicable provisions of Division 4 and 5 of the California Government Code and all amendments thereto; and all similar state or Federal acts or laws applicable; and shall indemnify, and hold harmless the CDC and its officers, and employees from and against all claims, demands, payments, suits, actions, proceedings and judgments of every nature and description, including reasonable attorney's fees and defense costs presented, brought or recovered against the CDC or its officers, employees or volunteers for, or on account of, any liability under any of said acts which may be incurred by reason of any work to be performed by the CONTRACTOR under this Agreement. 16. INSURANCE. The CONTRACTOR, at its sole cost and expense, shall purchase and maintain, and shall require its subcontractors, when applicable, to 5 Revised August 2005 purchase and maintain throughout the term of this agreement, the following insurance policies: ® A. If checked, Professional Liability Insurance (errors and omissions) with minimum limits of $1,000,000 per occurrence. B. Automobile insurance covering all bodily injury and property damage incurred during the performance of this Agreement, with a minimum coverage of $1,000,000 combined single limit per accident. Such automobile insurance shall include non -owned vehicles. C. Comprehensive general liability insurance, with minimum limits of $1,000,000 combined single limit per occurrence, covering all bodily injury and property damage arising out of its operation under this Agreement. D. Workers' compensation insurance covering all of CONTRACTOR's employees. E. The aforesaid policies shall constitute primary insurance as to the CDC, its officers, employees, and volunteers so that any other policies held by the CDC shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior written notice to the CDC of cancellation or material change. F. Said policies, except for the professional liability and worker's compensation policies, shall name the CDC and its officers, agents and employees as additional insureds. G. If required insurance coverage is provided on a "claims made" rather than "occurrence" form, the CONTRACTOR shall maintain such insurance coverage for three years after expiration of the term (and any extensions) of this Agree- ment. H. Any aggregate insurance limits must apply solely to this Agree- ment. I. All insurance required by this Agreement shall be provided by insurers licensed to do business in the State of California which are rated "A, VIII" or better by the current Best's Key Rating Guide and approved by the City's Risk Manager. Insurance may be accepted from a non -admitted, surplus lines carrier provided that insurer is included in the current California List of Eligible Surplus Lines Insurers (LESLI list) and otherwise meets the approval of the City's Risk Manager. J. This Agreement shall not take effect until certificate(s) or other sufficient proof that these insurance provisions have been complied with, are filed with and approved by the CITY's Risk Manager. If the CONTRACTOR does not keep all of such insurance policies in full force and effect at all times during the terms of this Agreement, the CDC may elect to treat the failure to maintain the requisite insurance as a breach of this Agreement and terminate the Agreement as provided herein. 17. LEGAL FEES. If any party brings a suit or action against the other party arising from any breach of any of the covenants or agreements, or any inaccuracies in any of the representations and warranties on the part of the other party arising out of this Agreement, then in that event, the prevailing party in such action or dispute, whether by final judgment or out -of -court settlement, shall be entitled to have and recover of and from the other party all costs and expenses of suit, including attorneys' fees. 6 Revised August 2005 For purposes of determining who is to be considered the prevailing party, it is stipulated that attorney's fees incurred in the prosecution or defense of the action or suit shall not be considered in determining the amount of the judgment or award. Attorney's fees to the prevailing party if other than the CDC shall, in addition, be limited to the amount of attorney's fees incurred by the CDC in its prosecution or defense of the action, irrespective of the actual amount of attorney's fees incurred by the prevailing party. 18. MEDIATION/ARBITRATION. If a dispute arises out of or relates to this Agreement, or the breach thereof, the parties agree first to try, in good faith, to settle the dispute by mediation in San Diego, California, in accordance with the Commercial Mediation Rules of the American Arbitration Association (the "AAA") before resorting to arbitration. The costs of mediation shall be borne equally by the parties. Any controversy or claim arising out of, or relating to, this Agreement, or breach thereof, which is not resolved by mediation shall be settled by arbitration in San Diego, California, in accordance with the Commercial Arbitration Rules of the AAA then existing. Any award rendered shall be final and conclusive upon the parties, and a judgment thereon may be entered in any court having jurisdiction over the subject matter of the controversy. The expenses of the arbitration shall be borne equally by the parties to the arbitration, provided that each party shall pay for,and bear the costs of, its own experts, evidence and attorneys' fees, except that the arbitrator may assess such expenses or any part thereof against a specified party as part of the arbitration award. 19. TERMINATION. A. This Agreement may be terminated with or without cause by the CDC. Termination without cause shall be effective only upon 30- day's written notice to the CONTRACTOR. During said 30-day period the CONTRACTOR shall perform all services in accordance with this Agreement. B. This Agreement may also be terminated immediately by the CDC for cause in the event of a material breach of this Agreement, misrepresentation by the CONTRACTOR in connection with the formation of this Agreement, or the performance of services, or the failure to perform services as directed by the CDC. C. Termination with or without cause shall be effected by delivery of written Notice of Termination to the CONTRACTOR as provided for herein. D. In the event of termination, all finished or unfinished memoranda reports, maps, drawings, plans, specifications and other documents prepared by the CONTRACTOR, whether paper or electronic, shall immediately become the property of, and be delivered to, the CDC, and the CONTRACTOR shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of the Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused the CDC by the CONTRACTOR's breach, if any. Thereafter, ownership of said written material shall vest in the CDC all rights set forth in Section 6. E. The CDC further reserves the right to immediately terminate this Agreement upon: (1) the filing of a petition in bankruptcy affecting the CONTRACTOR; (2) a reorganization of the CONTRACTOR for the benefit of creditors; or (3) a business reorganization, change in business name or change in business status of the CONTRACTOR. 7 Revised August 2005 20. NOTICES. All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered or sent by overnight mail (Federal Express or the like); or sent by registered or certified mail, postage prepaid, return receipt requested; or sent by ordinary mail, postage prepaid; or telegraphed or cabled; or delivered or sent by telex, telecopy, facsimile or fax; and shall be deemed received upon the earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if sent by overnight mail, the business day following its deposit in such overnight mail facility, (iii) if mailed by registered, certified or ordinary mail, five (5) days (ten (10) days if the address is outside the State of California) after the date of deposit in a post office, mailbox, mail chute, or other like facility regularly maintained by the United States Postal Service, (iv) if given by telegraph or cable, when delivered to the telegraph company with charges prepaid, or (v) if given by telex, telecopy, facsimile or fax, when sent. Any notice, request, demand, direction or other communication delivered or sent as specified above shall be directed to the following persons: To the CDC: To the CONTRACTOR: Brad Raulston Executive Director Community Development Commission of the City of National City 1243 National City Blvd National City, CA 91950 Pablo Perez NBS Local Government Services 32605 Temecula Parkway Suite 100 Temecula CA 92592 Notice of change of address shall be given by written notice in the manner specified in this Section. Rejection or other refusal to accept, or the inability to deliver because of changed address of which no notice was given, shall be deemed to constitute receipt of the notice, demand, request or communication sent. Any notice, request, demand, direction or other communication sent by cable, telex, telecopy, facsimile or fax must be confirmed within forty-eight (48) hours by letter mailed or delivered as specified in this Section. 21. CONFLICT OF INTEREST AND POLITICAL REFORM ACT OBLIGATIONS. During the term of this Agreement, the CONTRACTOR shall not perform services of any kind for any person or entity whose interests conflict in any way with those of the Community Development Commission of the City of National City. The CONTRACTOR also agrees not to specify any product, treatment, process or material for the project in which the CONTRACTOR has a material financial interest, either direct or indirect, without first notifying the CDC of that fact. The CONTRACTOR shall at all times comply with the terms of the Political Reform Act and the National City Conflict of Interest Code. The CONTRACTOR shall immediately disqualify itself and shall not use its official position to influence in any way any matter coming before the 8 Revised August 2005 CDC in which the CONTRACTOR has a financial interest as defined in Government Code Section 87103. The CONTRACTOR represents that it has no knowledge of any financial interests that would require it to disqualify itself from any matter on which it might perform services for the CDC. ® If checked, the CONTRACTOR shall comply with all of the reporting requirements of the Political Reform Act and the National City Conflict of Interest Code. Specifically, the CONTRACTOR shall file a Statement of Economic Interests with the City Clerk of the City of National City in a timely manner on forms which the CONTRACTOR shall obtain from the City Clerk. The CONTRACTOR shall be strictly liable to the CDC for all damages, costs or expenses the CDC may suffer by virtue of any violation of this Paragraph 21 by the CONTRACTOR. 22. MISCELLANEOUS PROVISIONS. A. Computation of Time Periods. If any date or time period provided for in this Agreement is or ends on a Saturday, Sunday or Federal, state or legal holiday, then such date shall automatically be extended until 5:00 p.m. Pacific Time of the next day which is not a Saturday, Sunday or Federal, state or legal holiday. B. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute but one and the same instrument. C. Captions. Any captions to, or headings of, the sections or subsections of this Agreement are solely for the convenience of the parties hereto, are not a part of this Agreement, and shall not be used for the interpretation or determination of the validity of this Agreement or any provision hereof. D. No Obligations to Third Parties. Except as otherwise expressly provided herein, the execution and delivery of this Agreement shall not be deemed to confer any rights upon, or obligate any of the parties hereto, to any person or entity other than the parties hereto. E. Exhibits and Schedules. The Exhibits and Schedules attached hereto are hereby incorporated herein by this reference for all purposes. F. Amendment to this Agreement. The terms of this Agreement may not be modified or amended except by an instrument in writing executed by each of the parties hereto. G. Waiver. The waiver or failure to enforce any provision of this Agreement shall not operate as a waiver of any future breach of any such provision or any other provision hereof. H. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. I. Entire Agreement. This Agreement supersedes any prior agree- ments, negotiations and communications, oral or written, and contains the entire agreement between the parties as to the subject matter hereof. No subsequent agreement, representation or promise made by either party hereto, or by or to an employee, officer, agent or representative of any party hereto, shall be of any effect unless it is in writing and executed by the party to be bound thereby. 9 Revised August 2005 J. Successors and Assigns. This Agreement shall be binding upon, and shall inure to the benefit of the successors and assigns of the parties hereto. K. Construction. The parties acknowledge and agree that (i) each party is of equal bargaining strength, (ii) each party has actively participated in the drafting, preparation and negotiation of this Agreement, (iii) each such party has consulted with, or has had the opportunity to consult with its own, independent counsel and such other professional advisors as such party has deemed appropriate, relative to any and all matters contemplated under this Agreement, (iv) each party and such party's counsel and advisors have reviewed this Agreement, (v) each party has agreed to enter into this Agreement following such review and the rendering of such advice, and (vi) any rule or construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement, or any portions hereof, or any amendments hereto. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first above written. COMMUNITY DEVELOPMENT OF THE CITY OF NATIONAL CITY By: xecutive Director APPROVED AS TO FORM: George H. Eiser, III CDC Legal Counsel NBS LOCAL GOVERNMENT SERVICES (Corporation — signatures of two corporate officers) (Partnership — one signature) (Sole proprietorship — one signature) By: By: PRES ivE N7" t C60 (Title) 7a4(me) M►L/i74cc I,c%tI'wer�. . Ct?C racy (Title) 10 Revised August 2005 EXHIBIT "A" B S Local Government Solutions July 25, 2008 Ms. Patricia Beard Redevelopment Manager City of National City 1243 National City Blvd. National City, CA 91950 Subject: Proposal to Provide Landscape Maintenance District (LMD) and Property Business Improvement District (PBID) Administration Services for the City of National City Dear Ms. Beard: NBS is excited to present this proposal to the City of National City ("City") for Landscape Maintenance District ("LMD") and Property Business Improvement District ("PBID") Administration Services for the City of National City ("City"). We have seen the improvements and enhancements made to this area of the City, and we would appreciate the opportunity to work with the community to sustain and build upon the achievements to date. 'SCOPE OF SERVICES' (Landscape Maintenance District Administration' Expert Resource. First and foremost, NBS will act as the City's "expert resource," and is available to answer questions and advise the City on particular issues involving the Landscape and Lighting Maintenance District. Kick -Off Meeting, Project Schedule. NBS will meet with City staff, legal counsel and other interested parties to: • Establish lines of communication. • Clarify the specific project goals, components and criteria that will meet the City's preference. • Identify and resolve any special circumstances that may be involved in the administration of the District. • Develop project schedules to meet legal requirements and provide for effective interfacing of all involved parties. • Establish meeting points consistent with schedule to achieve project milestones. • Establish and coordinate with City staff a schedule to assure completion of necessary actions and compliance with statutes. Review Existing Engineer's Report. NBS will review the existing Engineer's Report and Method of Assessment for the District to identify areas where the special benefit nexus is deficient. Specific evaluation will be made based on the language used to describe benefit received, and the requirements of Proposition 218. Database Development. NBS will access current information from various data sources to verify that all parcels within District boundaries are included in the database. NBS will also verify that all land use designations and assessment benefit factors are correct. NBS will update the database with current County Assessor's information including property owner names and addresses, and any other available data that will augment the existing database. NBS 132605 Temecula Parkway, Suite 100 1 Temecula, CA 92592 1 Toll free: 800.676.7516 1 Fax: 951.296.1998 Budget Preparation. NBS will meet with City staff to establish the District budget for the coming fiscal year. This budget will be based on historical costs and actual and/or projected changes in costs and/or improvements to be maintained. Cost categories may include, but are not limited to capital improvements and maintenance costs, incidental costs (engineering, legal, District administration) and reserve funds. Assessment Computation and Rate Analysis. NBS will compute the assessment for each parcel within the District according to the Method of Assessment. NBS will provide an assessment summary which will include a comparison of current year rates versus prior year rates, separate by zone and land use, if applicable, and fund balance information. Engineer's Report Preparation. NBS will prepare the annual Engineer's Report and provide to City staff. The Report will consist of: • A discussion of the background of the District. • A detailed and technically supported Method of Assessment. • A description of the improvements and services that are being funded by the District. • A cost estimate for the improvements and services being funded. • Copy or reference to original District Diagram. • A table showing assessed rates by zone and land use. • An Assessment Roll listing assessments by parcel or reference a complete roll on file with the City. Meet with City Staff. NBS will meet with City staff to review the Engineer's Report for modifications and approval. Noticing and Resolution Coordination. NBS will coordinate activities to ensure that required tasks are completed within the scheduled time frame. NBS will assist the City (or the City's legal counsel) with preparation of any notice of assessments, public hearings, or other meetings requiring publication. NBS will assist the City (or the City's legal counsel) with preparation of the staff report, all legal notices and the associated resolutions described below: • Resolution describing improvements, initiating proceeding, and ordering the engineer to prepare and file a report for the City. • Resolution preliminarily approving the Engineer's Report. • Resolution of Intention declaring the intention of the City Council to levy and collect assessments and setting a date for the public hearing(s). • Resolution authorizing the placement of assessments on the property tax bills. Meeting Attendance. NBS will attend up to two (2) public meetings, workshops, and City Council meetings, as requested by the City. Levy Submittal. NBS will submit the levy to the County Auditor -Controller in the required format. Assessments rejected by the County Auditor -Controller will be researched and resubmitted for collection on the County Tax Roll. Any parcels that are not submitted to the County for collection will be invoiced tor payment directly to the City. Final Engineer's Report. NBS will update the annual Engineer's Report and deliver to City staff. Toll -Free Phone Number. NBS shall provide a toll -free phone number for use by the City, other interested parties and all property owners. NBS will be available to answer questions regarding the District and the ongoing collection of assessments. Bilingual staff is available to assist Spanish-speaking property owners. [Optional Service for Landscape Maintenance District Administration' Engineer's Stamp and Signature. NBS will have a Registered Professional Engineer (PE) review the Engineer's Report for stamp and signature. N B,SS Page 2 (Property Business Improvement District Administration' Expert Resource. First and foremost, NBS will act as the City's "expert resource," and is available to answer questions and advise the City on particular issues involving the Property Business Improvement District. Kick -Off Meeting, Project Schedule. NBS will meet with City staff, legal counsel and other interested parties to: • Establish lines of communication. • Clarify the specific project goals, components and criteria that will meet the City's preference. • Identify and resolve any special circumstances that may be involved in the administration of the District. • Develop project schedules to meet legal requirements and provide for effective interfacing of all involved parties. • Establish meeting points consistent with schedule to achieve project milestones. • Establish and coordinate with City staff a schedule to assure completion of necessary actions and compliance with statutes. Data Collection. NBS will gather and review data pertinent to the administration of the PBID. Data will be obtained from various sources such as assessor's parcel maps and county assessor information as determined to be necessary based on the requirements of the Method of Assessment. NBS will maintain and periodically update a database of all parcels within the District and relevant parcel information. Levy Calculation. NBS will calculate the annual assessment levy for each parcel within the PBID following the guidelines established in the Method of Assessment. Levy Submittal. NBS will submit the levy to the County Auditor Controller in the required format. Assessments rejected by the County Auditor Controller will be researched and resubmitted for collection on the County Tax Roll. Any parcels that are not submitted to the County for collection will be invoiced by NBS with payment to be directed to the City. Annual Report. NBS will provide an Annual Report (Management District Plan update) and submit it to the City Clerk. This report will include: any proposed changes in the PBID boundaries or zones; a description of the improvements and activities to be provided during the fiscal year; an estimate of the costs of providing the improvements and services including any deficit or surplus from prior years and any contribution from other sources; the Method of Assessment; a listing of all assessed parcels and their assessment. Delinquency Management. NBS will provide the City with a comprehensive list of delinquencies after each installment becomes due. This report will detail the percentage of delinquencies as well as a detailed list of each delinquent parcel. Toll -Free Phone Number. NBS shall provide a tcll-free phone number for use by the City and all property owners. Staff shall be available to answer questions regarding the District and ongoing collection of assessments. Bilingual staff is available to assist Spanish-speaking property owners. Page 3 'STAFFING' NBS is proud to present the following Project Team. In addition to the staff presented, NBS has a depth of key resources as well as the flexibility to allow for the introduction of additional specialists, if needed. The NBS key staff members are available and stand fully committed to the City of National City to begin work immediately upon award of contract. Additional financial staff are available as needed. Below please find an organizational chart with general duties of each key member of the project team. Full resumes are included on the following pages. PABLO PEREZ pperez@nbsgov.com Client Services Director Responsible for Engagement 16 years of experience GREG DAVIDSON gdavidson@nbsgov.com Project Manager 9 years of experience BRIAN BROWN bbrown@nbsgov.com Financial Analyst 2 years of experience N BIS Page 4 Pablo Perez Director of Client Services pperez@nbsgov.com (HIGHLIGHTS' 16 years of experience Special Financing Districts expert Continuing disclosure expert Project Manager for over 700 Assessment and Tax Districts Expert in district administration Experienced Special Tax Consultant Presenter at educational seminars (EDUCATION' Bachelor of Arts, Liberal Studies California Baptist University (PROFESSIONAL AFFILIATIONS) California Society of Municipal Finance Officers (CSMFO) California Special Districts Association (CSDA) California Municipal Treasurer's Association (CMTA) Coalition for Adequate School Housing (CASH) California Association of School Business Officials (CASBO) 'RESUME' Pablo Perez is Director of Client Services with NBS where he and his staff administer and form various types of Special Financing Districts. He has over 16 years of experience, and is actively involved in the daily management of district administration operations, the preparation of the annual special assessment levies, and the management of related projects including district formations and bond issuance/refunding analysis. • District Administration: He manages the day-to-day administration and annual levy calculations for over 700 districts including: O 1972 Act Maintenance Districts o Standby and other Fees and Charges O 1915 and 1911 Act Assessment Districts o Community Facilities Districts (CFD's) o Business Improvement Districts (BID's) o Benefit Assessment Districts (BAD's) o Public Safety Districts including Fire Assessments and Taxes His involvement includes analysis of district finances as well as oversight of tasks such as audits of assessment liens, delinquency management activities, apportionment of liens, continuing disclosure, arbitrage rebate calculations, bond tenders, and district workouts. • Continuing Disclosure: He has been responsible for the preparation and dissemination of disclosure reports for all types of municipal bonds for over a hundred public agencies. • Financial Projects: Pablo has managed numerous projects relating to assessment and special tax districts, including apportionments of 1915 Act liens, tax roll billing services, continuing disclosure reports, arbitrage rebate calculations, human resources consulting, fund analysis and recommendations, bond tenders, conversion of bonds, delinquency management, and special project consulting. • Proposition 218: Pablo provides Proposition 218 consulting services related to the establishment or increase of fees, charges and assessments. He is an acknowledged expert in Proposition 218 compliance programs which of particular significance was the City of La Habra Heights project. There were over 2,000 assessment ballots mailed, and the property owners voted to retain the annual assessment for street maintenance. • County Data Procurement: Pablo is on a "first name basis" with many of the County assessor and auditors staff in the State. He has significant experience with data from 40 counties in Califomia and understands the issues involved with analyzing and transmitting large amounts of data. • Sample Clients: Pablo has worked for many public agencies including: City of Hesperia O City of Los Angeles 0 City of La Habra Heights o City of Long Beach o City of Oakland Pablo has 19 years of experience in the private and public finance sectors including 16 years specializing in the administration of special financing districts. Prior to working in public finance administration, he worked for a financial firm in New York. N B ! S Page 5 Greg Davidson Director gdavidson@nbsgov.com 'HIGHLIGHTS' Over 9 years experience Expert in District Administration Project Manager on numerous projects with over seven years of experience with Special Financing Districts Experienced Special Tax Consultant 'EDUCATION' Bachelor of Science, Business Finance with minor in Psychology, San Diego State University 'PROFESSIONAL AFFILIATIONS' California Special Districts Association (CSDA) 'RESUME' Greg Davidson is a Director with NBS where he and his staff administer special financing districts, including 1913 and 1915 Act Assessment Districts, Community Facilities Districts, Landscape Maintenance Districts, and Property -Based Business Improvement Districts. Greg is actively involved in managing the day-to-day district administration operations, the preparation of the annual special assessment levies, and related special projects. He has worked directly with more than 100 Agencies administering 300 Districts. Currently, he assists the Director of Administration to oversee the administration of all types of Districts. • District Administration: Greg has more than 7 years of experience in actively managing ongoing administration and annual levy calculations for 1913/1915 Act Assessment Districts, Landscape Maintenance Districts and Mello -Roos Community Facilities Districts. He has trained numerous staff, and has directly prepared levies for hundreds of Assessment and Special Tax Districts. He has also provided consulting services related to curing troubled districts which have involved judicial foreclosure, refinancing and property owner bond tender programs. • Financial Projects: Greg has experience performing revenue audits, parcel audits, tax roll billing services and the formation of Community Facilities Districts. • Continuing Disclosure: Greg has prepared and disseminated Municipal Disclosure Reports for numerous California Agencies over the past several years. He currently is involved with the preparation and approval of more than 160 disclosure reports for 1915 Act, Community Facilities District, Tax Allocation and General Obligation Bonds. • 1915 Reassessment and Refunding: Greg has prepared several Reassessment Reports as required by the Califomia Streets and Highways Code §9523 saving parcel owners a significant amount of money. • Proposition 218: Greg also provides Proposition 218 consulting services related to the establishment or increase of fees, charges and assessments. Prior to working in public finance administration, Greg worked for four years in the private Finance/Accounting arenas for a large National corporation. N CJ Page 6 Brian Brown Financial Analyst bbrown@nbsgov.com (Highlights' Special District Administration Specialist. Services over 60 Special Districts throughout California. Responsible for preparing the annual levy of nearly 100,000 parcels. 'EDUCATION' Bachelor of Science, Business Finance, California State University, San Diego 'RESUME' Brian Brown is a Financial Analyst at NBS, where his daily responsibilities focus around the on -going administration of over 60 special assessment/tax districts within the state of California. He works closely with a number of public agencies in the counties of Contra Costa and San Diego. • District Administration: Brian works extensively with 1915 Act Improvement Districts, Community Facilities Districts, Open Space Districts, and Property Based Business Improvement Districts (PBID). His administration functions include calculation of annual levies, analysis of district finances, calculation of redemption of bonds from prepayments, apportionment of liens and annual report preparation. In addition, he plays an active role in creating and/or maintaining an effective delinquency management policy for the agency, and ensuring that continuing disclosure requirements and arbitrage rebate obligations are met. Brian deals with County agents including the Auditor Controller's Office, Treasurer Tax Collector, and County Assessor's Office. He understands county timetables and requirements for transmittal and processing of data critical to the successful administration of special districts. In addition, he is available to assist district property owners with questions or concems and provide explanations of bond covenants and government code in a manner understandable to professionals and the lay person. Prior to joining NBS, Brian attended and graduated from San Diego State University, with a Bachelor of Science in Business Finance and a minor in Political Science. N B!S Page 7 (FEES' 'Landscape Maintenance District Administration' LMD No. 1 (Mile of Cars) - First Year $2,400 LMD No. 1 (Mile of Cars) - Second Year (1) $3,600 LMD No. 1 (Mile of Cars) - Third Year and Future (1) $3,000 Engineer Stamp and Signature $500 per report (Property Business Improvement District Administration' Downtown National City PBID (Morgan Square) (1) $6,000 (1) Subject to cost of living increases as stated below - Annual Fee Increases. 'Expenses' Customary out-of-pocket expenses will be billed to the City at actual cost to NBS up to a maximum of $750 per year. These expenses may include, but not be limited to travel, postage, mailing fulfillment, telephone, reproduction, meals and various County or third -party charges for data, maps, and recording fees. (Fees and Expenses - Not To Exceed Clause' Total Fees and Expenses invoiced by NBS for the first year shall not exceed $10,150. The total not to exceed amount shall be increased in accordance with the terms of this Agreement upon renewal. (Additional Information' The following table shows our current hourly rates. Additional services not included in the scope but authorized by the City will be billed at this rate or the then applicable hourly rate. Title Director Hourly Rate $ 190 Senior Consultant/Programmer 150 Engineer 140 Consultant 130 Analyst 100 Clerical/Support 55 Expert Witness TBD; with minimum fee (Annual Fee Increases( Cost of living increases may be applied to the services listed above on October 1 each year, beginning with October 1, 2009. The COLA would be the actual cost of living increase based on the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Index for all urban consumers for the Southern California counties. N B S �� Page 8 [Terms' Administration services will be invoiced quarterly at the beginning of each quarter. Expenses will be itemized and included in the next regular invoice. Fees for all other services will be invoiced upon completion of the task. If the project is prematurely terminated by either party, NBS shall receive payment for work completed. Payment shall be made within 30 days of submittal of an invoice. If payment is not received within 90 days simple interest will begin to accrue at the rate of 1.5% per month. Either party can cancel administration contracts with 30 days written notice. Please feel free to contact me if you have any questions or need further information. Best regards, NBS Government Finance Group, DBA NBS City of National City Mike Rentner Name President and CEO Title 7/25/08 Date Title Date N B s Page 9 NBSGOVE-01 SBB ACORDTM CERTIFICATE OF LIABILITY INSURANCE DATE(MM/DD/YYYY) 7/30/2008 PRODUCER License # 0B23506 (858) 541-2900 Vanorsdale Insurance Services 4909 Murphy Canyon Road, Suite 510 San Diego, CA 92123 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE NAIC # INSURED NBS Government Finance Group 32605 Temecula Parkway, Suite 100 Temecula, CA 92592 . INsuRERA Philadelphia Indemnity Insurance Compar INSURER B: INSURER C: INSURER D: INSURER E COVERAGES THE ANY MAY POLICIES. 1NSR%DD'L LTR POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POUCY PERIOD INDICATED. NOTWITHSTANDING REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. NSRD TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE DATE tMM/DD/YY1 POLICY EXPIRATION DATE INM/DD/YY1 LIMITS GENERAL LIABILITY COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ PRIED PREMISES ( {Eaa occvrence) S CLAIMS MADE OCCUR MED EXP (Any one person) $ PERSONAL & ADV INJURY S GENERAL AGGREGATE $ GENL —I AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP/OP AGG S POUCY n Jain LOC AUTOMOBILE UABIUTY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS COMBINED SINGLE LIMIT (Ea accident) S BODILY INJURY (Per person)S BODILY INJURY (Per accident) . S PROPERTY DAMAGE (Per accident) S GARAGE LIABILITY A EA ACC OTHER THAN S AUTO ONLY: AGG S EXCESSNMBRELLA LIABILITY EACH OCCURRENCE S OCCUR CLAMS MADE AGGREGATE S DEDUCTIBLE RETENTION S S S S WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNERIEXECUTIVE OFFICER/MEMBER EXCLUDED? If yes, describe under SPECIAL PROVISIONS below I WC STATU- OTH- 170RY LIMITS ER EL. EACH ACCIDENT S EL DISEASE - EA EMPLOYEE S EL DISEASE - POLICY LIMIT S A A OTHER Professional Liability Professional Liability PHSD280656 PHSD280656 9/24/2007 9/24/2007 9/24/2008 9/24/2008 Each Wrongful Act $2,000,000 Annual Aggregate $2,000,000 DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT / SPECIAL PROVISIONS *Except 10 days notice of cancellation for non-payment of premium. Proof of Insurance CERTIFICATE HOLDER CANCELLATION The Community Development Commission of The City of National City 1243 National City Blvd. National City, CA 91950- SHOULD ANY OF THE ABOVE DESCRIBED POUCIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABIUTY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTATIVE -- - ACORD 25 (2001/08) © ACORD CORPORATION 1988 From: Stefania Baca At: Vanorsdale Insurance Services FaxID: To: National City - Attn: Jenny Date: 922008 01:18 PM Page: 2 of 25 NBSGOVE-01 SBB ACORDTM CERTIFICATE OF LIABILITY INSURANCE DATE(MM/DD/YYYY) 9/2/2008 PRODUCER License # OB23506 (858) 541-2900 Vanorsdale Insurance Services 4909 Murphy Canyon Road, Suite 510 p y y San Diego, CA 92123 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE NAIC # INSURED NBS Government Finance Group 32605 Temecula Parkway, Suite 100 Temecula, CA 92592 INSURER A: Maryland Casualty Insurance Company INSURER B: American States Insurance Company INsuRERc:Republic Indemnity INSURER D: INSURER E: COVERAGES THE ANY MAY POLICIES. IWSIi LTR POLICIES REQUIREMENT, PERTAIN, AMYL iNSRD OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. TYPE OF INSURANCE POLICY NUMBER POLICY EFFECTIVE DATE (MM/DD(YY) POLICY EXPIRATION DATE (MMIDD(YY) UMITS A GENERAL LIABILITY COMMERCIAL GENERAL LIABILITY PAS00053837 9/24/2007 9/24/2008 EACH OCCURRENCE S 2,000000 X DREM SES (Ea toccurence) $ 1,000,000 CLAIMS MADE X OCCUR MED EXP (Any one person) $ 10,000 PERSONAL & ADV INJURY $ 2,000,000- GENERAL AGGREGATE $ 4,000,000 GE_ AGGREGATE LIMIT APPLIES PER PRODUCTS - COMP/OP AGG S 4,000,000 � ^ 1 POLICY n JE 2 n LOC B AUTOMOBILE UABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS 01CH0603343 2/13/2008 2/13/2009 COMBINED SINGLE LIMIT (Eaaccident) 9i 1,000,000 X BODILY INJURY (Per person) BODILY INJURY (Per accident) 3 PROPERTY DAMAGE (Per accdent) GARAGE LIABILITY ANY AUTO AUTO ONLY - EA ACCIDENT S OTHER THAN EA ACC S AUTO ONLY: AGG S EXCESS/UMBRELLA LIABILITY EACH OCCURRENCE $ OCCUR CLAIMS MADE AGGREGATE S DEDUCTIBLE RETENTION S $ S $ c WORKERS COMPENSATION AND EMPLOYERS' LIABILITY ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? If yes, describe under SPECIAL PROVISIONS below 17355501 9/24/2007 9/24/2008 X WC LimiT OTH• TORY LIMITS ER E.L. EACH ACCIDENT $ 1,000,000 E.L. DISEASE - EA EMPLOYEE $ 1,000,000 E.L. DISEASE - POLICY LIMIT $ 1,000,006 OTHER DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT / SPECIAL PROVISIONS "'Except 10 days notice of cancellation for non-payment of premium. The Community Development Commission of the City of National City, its officers and employees are named additional insured per CG2010 07/04 form regarding General Liability and Auto Liability per CA7110 09/05. Primary Insurance, Per Project Aggregate Limit applies to General Liability per coverage form 9S2001 Ed. 4-99. CERTIFICATE HOLDER CANCELLATION The Community Development Commission of The City of National City 1243 National City Blvd National City, CA 91950- SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTATIVE ACORD 25 (2001/08) © ACORD CORPORATION 1988 From: Stefania Baca At: Vanorsdale Insurance Services FaxID: To: National City - Attn: Jenny Date: 922008 01:18 PM Page: 3 of 25 POLICY NUMBER: PAS00053837 COMMERCIAL GENERAL LIABILITY CG 20100704 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL INSURED _ OWNERS, LESSEES OR CONTRACTORS .SCHEDULED PERSON OR ORGAN IZATION This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE Name Of Additional Insured Person(s) Or Organization(s): Location(s) Of Covered Operations The Community Development Commission of the City of National City, its officers and employees City of National City, CA Information required to complete this Schedule, if not shown above, will be shown in the Declarations. A. Section II Who Is An Insured is amended to include as an additional insured the person(s) or organization(s) shown in the Schedule, but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by: 1. Your acts or omissions; or 2. The acts or omissions of those acting on your behalf; in the performance of your ongoing operations for the additional insured(s) at the location(s) designated above. B. With respect to the insurance afforded to these additional insureds, the following additional exclusions apply: This insurance does not apply to "bodily injury" or "property damage" occurring after: 1. All work, including materials, parts or equipment furnished in connection with such work, on the project (other than service, maintenance or repairs) to be performed by or on behalf of the additional insured(s) at the location of the covered operations has been completed; or 2. That portion of "your work" out of which the injury or damage arises has been put to its intended use by any person or organization other than another contractor or subcontractor engaged in performing operations for a principal as a part of the same project. CG 2010 0704 Copyright, ISO Properties, Inc., 2004 Page 1 of 1 From: Stefania Baca At: Vanorsdale Insurance Services FaxID: To: National City - Attn: Jenny REPRINTED FROM THE FORMS LIBRARY "— Date: 9/2/2008 01:18 PM Page: 4 of 25 Safeco Insurance COMMERCIAL AUTO CA71100905 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ULTRA AUTO PLUS ENDORSEMENT This endorsement modifies insurance provided under the following: BUSINESS AUTO COVERAGE FORM With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unless modified by the endorsement. EXTENDED CANCELLATION CONDITION Paragraph 2.b. of the CANCELLATION Common Policy Condition is replaced by the following: b. 60 days before the effective date of cancellation if we cancel for any other reason. TEMPORARY SUBSTITUTE AUTO — PHYSICAL DAMAGE COVERAGE Under paragraph C. — CERTAIN TRAILERS, MO- BILE EQUIPMENT AND TEMPORARY SUBSTITUTE AUTOS of SECTION 1 — COVERED AUTOS, the following is added: If Physical Damage coverage is provided by this Cov- erage Form, then you have coverage for: Any "auto" you do not own while used with the per- mission of its owner as a temporary substitute for a covered "auto" you own that is out of service be- cause of its breakdown, repair, servicing, "loss" or destruction. BROAD FORM NAMED INSURED SECTION II — LIABILITY COVERAGE — A.1. WHO IS AN INSURED provision is amended by the addition of the following: d. Any business entity newly acquired or formed by you during the policy period provided you own 50% or more of the business entity and the business entity is not separately insured for Business Auto Coverage. Coverage is extended up to a maximum of 180 clays following acquisi- tion or formation of the business entity. Coverage under this provision is afforded only until the end of the policy period. BLANKET ADDITIONAL INSURED SECTION II — LIABILITY COVERAGE — A.1. WHO IS AN INSURED provision is amended by the addition of the following: e. Any person or organization for whom you are re- quired by an "insured contract" to provide insur- ance is an "insured", subject to the following additional provisions: (1) The "insured contract" must be in effect during the policy period shown in the Decla- rations, and must have been executed prior to the "bodily injury" or "property damage". (2) This person or organization is an "insured" only to the extent you are liable due to your ongoing operations for that insured, whether the work is performed by you or for you, and only to the extent you are held liable for an "accident" occurring while a covered "auto" is being driven by you or one of your em- ployees. There is no coverage provided to this person or organization for "bodily injury" to its em- ployees, nor for "property damage" to its property. (4) Coverage for this person or organization shall be limited to the extent of your negli- gence or fault according to the applicable principles of comparative negligence or fault. The defense of any claim or "suit" must be tendered by this person or organization as soon as practicable to all other insurers which potentially provide insurance for such claim or "suit". (3) (5) Includes copyrighted material of Insurance Services Office, Inc., with its permission. Copyright, Insurance Services Office, Inc., 1997 CA 71 10 09 05 Page 1 of 5 Saleco and Ike Safeco logo are registered trademarks of Safeco Corporation EP From: Stefanie Baca At: Vanorsdale Insurance Services FaxID: To: National City - Attn: Jenny Date: 9/2/2008 01:18 PM Page: 5 of 25 REPRINTED FROM THE FORMS LIBRARY .... (6) The coverage provided will not exceed the lesser of: (a) The coverage and/or limits of this policy; or (b) The coverage and/or limits required by the "insured contract". (7) A person's or organization's status as an "insured" under this subparagraph d ends when your operations for that "insured" are completed. FELLOW EMPLOYEE COVERAGE — EXECUTIVE OFFICERS Exclusion 5. FELLOW EMPLOYEE of SECTION II — LIABILITY COVERAGE — B. EXCLUSIONS is amended by the addition of the following: This exclusion does not apply to liability incurred by your employees that are executive officers. PHYSICAL DAMAGE — ADDITIONAL TRANS- PORTATION EXPENSE COVERAGE The first sentence of paragraph A.4. of SECTION HI — PHYSICAL DAMAGE COVERAGE is amended as follows: We will pay up to $50 per day to a maximum of $1,500 for temporary transportation expense incurred by you because of the total theft of a covered "auto" of the private passenger type. EXTRA EXPENSE — BROADENED COVERAGE Paragraph A. — COVERAGE of SECTION 1I1 — PHYSICAL DAMAGE COVERAGE is amended to add: 5. We will pay for the expense of returning a stolen covered "auto" to you. AIRBAG COVERAGE Under paragraph B. — EXCLUSIONS of SECTION III — PHYSICAL DAMAGE COVERAGE, the following is added: The exclusion relating to mechanical breakdown does not apply to the accidental discharge of an airbag. LEASE GAP COVERAGE Under paragraph C — LIMIT OF INSURANCE of SECTION III — PHYSICAL DAMAGE COVERAGE, the following is added: 4. The most we will pay for a total "loss" in any one "accident" is the greater of the following, subject to a $1,500 maximum limit: a. Actual cash value of the damaged or stolen property as of the time of the "foss", less an adjustment for depreciation and physical condition; or b. Balance due under the terms of the loan or lease that the damaged covered "auto" is subject to at the time of the "loss", less any one or all of the following adjustments: (1) Overdue payment and financial penalties associated with those payments as of the date of the "loss". (2) Financial penalties imposed under a lease due to high mileage, exces- sive use or abnormal wear and tear. (3) Costs for extended warranties, Cre- dit Life Insurance, Health, Accident or Disability Insurance purchased with the loan or lease. (4) Transfer or rollover balances from previous loans or leases. Final payment due under a "Balloon Loan". (5) (6) The dollar amount of any un-repaired damage that occurred prior to the "total loss" of a covered "auto". (7) (8) Security deposits not refunded by a lessor. All refunds payable or paid to you as a result of the early termination of a lease agreement or any war- ranty or extended service agree- ment on a covered "auto". (9) Any amount representing taxes. (10) Loan or lease termination fees GLASS REPAIR — WAIVER OF DEDUCTIBLE Under paragraph D. — DEDUCTIBLE of SECTION III — PHYSICAL DAMAGE COVERAGE, the following is added: No deductible applies to glass damage if the glass is repaired rather than replaced. AMENDED DUTIES IN THE EVENT OF ACCI- DENT, CLAIM, SUIT OR LOSS The requirement in LOSS CONDITION 2.a. — DUTIES IN THE EVENT OF ACCIDENT, CLAIM, Page 2 of 5 From: Stefania Baca At: Vanorsdale Insurance Services FaxID: To: National City- Attn: Jenny Date: 9/2/2008 01:18 PM Page: 6 of 25 REPRINTED FROM THE FORMS LIBRARY SUIT OR LOSS — of SECTION IV — BUSINESS AUTO CONDITIONS that you must notify us of an "accident" applies only when the "accident" is known to: (1) You, if you are an individual; (2) A partner, if you are a partnership; or (3) An executive officer or insurance manager, if you are a corporation. UNINTENTIONAL FAILURE TO DISCLOSE HAZARDS SECTION IV — BUSINESS AUTO CONDITIONS — B.2. is amended by the addition of the following: If you unintentionally fail to disclose any hazards ex- isting at the inception date of your policy, we will not deny coverage under this Coverage Form because of such failure. However, this provision does not affect our right to collect additional premium or exercise our right of cancellation or non -renewal. RESULTANT MENTAL ANGUISH COVERAGE SECTION V — DEFINITIONS — C. is replaced by the following: "Bodily injury" means bodily injury, sickness or dis- ease sustained by a person including mental anguish or death resulting from any of these. HIRED AUTO PHYSICAL DAMAGE COVERAGE If hired "autos" are covered "autos" for Liability cov- erage and if Comprehensive, Specified Causes of Loss or Collision coverages are provided under this Coverage Form for any "auto" you own, then the Physical Damage Coverages provided are extended to "autos" you hire or borrow of the private passenger or Tight truck (10,000 lbs. or Tess gross vehicle weight) type, subject to the following limit. The most we will pay for loss to any hired "auto" is $50,000 or Actual Cash Value or Cost of Repair, whichever is smallest, minus a deductible. The de- ductible will be equal to the largest deductible appli- cable to any owned "auto" of the private passenger or light truck type for that coverage. Hired Auto Physical Damage coverage is excess over any other collectible insurance. Subject to the above limit, de- ductible and excess provisions, we will provide cov- erage equal to the broadest coverage applicable to any covered "auto" you own of the private passenger or Tight truck type. CA 71 10 09 D5 HIRED AUTO PHYSICAL DAMAGE COVERAGE — LOSS OF USE SECTION III — PHYSICAL DAMAGE A.4.b. Form does not apply. Subject to a maximum of $1,000 per accident, we will cover loss of use of a hired "auto" if it results from an accident, you are legally liable and the lessor in- curs an actual financial loss. RENTAL REIMBURSEMENT COVERAGE A. This coverage applies only to a covered "auto" of the private passenger or light truck (10,000 lbs. or less gross vehicle weight) type. B. We will pay for rental reimbursement expenses incurred by you for the rental of an "auto" be- cause of a covered 'loss" to a covered "auto." Payment applies in addition to the otherwise ap- plicable amount of each coverage you have on a covered "auto." No deductibles apply to this coverage. C. We will pay only for those expenses incurred during the policy period beginning 24 hours after the "loss" and ending, regardless of the policy's expiration, with the lesser of the following number of days: 1. The number of days reasonably required to repair or replace the covered "auto." If "loss" is caused by theft, this number of days is added to the number of days it takes to locate the covered "auto" and return it to you. 2. 30 days. D. Our payment is limited to the lesser of the fol- lowing amounts: 1. Necessary and actual expenses incurred. 2. $50 per day. E. This coverage does not apply while there are spare or reserve "autos" available to you for your operations. F. If "loss" results from the total theft of a covered "auto" of the private passenger type, we will pay under this coverage only that amount of your rental reimbursement expenses which is not al- ready provided for under the PHYSICAL DAM- AGE COVERAGE Coverage Extension. G. The Rental Reimbursement Coverage described above does not apply to a covered "auto" that is described or designated as a covered "auto" on Page 3 of 5 EP From: Stefania Baca At: Vanorsdale Insurance Services FaxID: To: National City - Attn: Jenny Date: 9/2/2008 01:18 PM Page: 7 of 25 •••• REPRINTED FROM THE FORMS LIBRARY"" Rental Reimbursement Coverage Form CA 99 the manufacturer for the installation of a 23. AUDIO, VISUAL AND DATA ELECTRONIC EQUIPMENT COVERAGE A. Coverage 1. We will pay with respect to a covered "auto" for "loss" to any electronic equipment that receives or transmits audio, visual or data signals and that is not designed solely for the reproduction of sound. This coverage applies only if the equipment is permanently installed in the covered "auto" at the time of the "loss" or the equipment is removable from a housing unit which is permanently installed in the covered "auto" at the time of the "loss", and such equipment is designed to be solely operated by use of the power from the "auto's" electrical system, in or upon the covered "auto." 2. We will pay with respect to a covered "auto" for "loss" to any accessories used with the electronic equipment described in paragraph A.1. above. However, this does not include tapes, records or discs. 3. If Audio, Visual and Data Electronic Equip- ment Coverage form CA 99 60 or CA 99 94 is attached to this policy, then the Audio, Vi- sual and Data Electronic Equipment Cover- age described above does not apply. B. Exclusions The exclusions that apply to PHYSICAL DAM- AGE COVERAGE, except for the exclusion relat- ing to Audio, Visual and Data Electronic Equipment, also apply to this coverage. In addi- tion, the following exclusions apply: We will not pay for either any electronic equip- ment or accessories used with such electronic equipment that is: 1. Necessary for the normal operation of the covered "auto" for the monitoring of the covered "auto's" operating system; or 2. Both: a. an integral part of the same unit housing any sound reproducing equipment de- signed solely for the reproduction of sound if the sound reproducing equip- ment is permanently installed in the covered "auto"; and b. permanently installed in the opening of the dash or console normally used by radio. C. Limit of Insurance With respect to this coverage, the LIMIT OF IN- SURANCE provision of PHYSICAL DAMAGE COVERAGE is replaced by the following: 1. The most we will pay for "loss" to audio, vi- sual or data electronic equipment and any accessories used with this equipment as a result of any one "accident" is the lesser of: a. The actual cash value of the damaged or stolen property as of the time of the "loss"; or b. The cost of repairing or replacing the damaged or stolen property with other property of like kind and quality. c. $1,000. 2. An adjustment for depreciation and physical condition will be made in determining actual cash value at the time of the "loss." 3. If a repair or replacement results in better than like kind or quality, we will not pay for the amount of the betterment. D. Deductible Page 4 of 5 1. If "loss" to the audio, visual or data elec- tronic equipment or accessories used with this equipment is the result of a "loss" to the covered "auto" under the Business Auto Coverage Form's Comprehensive or Colli- sion Coverage, then for each covered "auto" our obligation to pay for, repair, return or re- place damaged or stolen property will be re- duced by the applicable deductible shown in the Declarations. Any Comprehensive Cov- erage deductible shown in the Declarations does not apply to "loss" to audio, visual or data electronic equipment caused by fire or lightning. 2. If "loss" to the audio, visual or data elec- tronic equipment or accessories used with this equipment is the result of a "loss" to the covered "auto" under the Business Auto Coverage Form's Specified Causes of Loss Coverage, then for each covered "auto" our obligation to pay for, repair, return or replace damaged or stolen property will be reduced by a $100 deductible. 3. If "loss" occurs solely to the audio, visual or data electronic equipment or accessories used with this equipment, then for each cov- ered "auto" our obligation to pay for, repair, From: Stefania Baca At: Vanorsdale Insurance Services FaxID: To: National City - Attn: Jenny Date: 922008 01:18 PM Page: 8 of 25 "" REPRINTED FROM TILE FORMS LIBRARY "" return or replace damaged or stolen property will be reduced by a $100 deductible. 4. In the event that there is more than one ap- plicable deductible, only the highest deduct- ible will apply. In no event will more than one deductible apply. BLANKET WAIVER OF SUBROGATION We waive the right of recovery we may have for pay- ments made for `bodily injury" or "property damage" on behalf of the persons or organizations added as "insureds" under Section II — LIABILITY COVERAGE — A.1.D. BROAD FORM NAMED INSURED and A.1.e. BLANKET ADDITIONAL INSURED. CA 71 10 09 05 PERSONAL EFFECTS COVERAGE A. SECTION III — PHYSICAL DAMAGE COVER- AGE, A.4. COVERAGE EXTENSIONS, is amended by adding the following: c. Personal Effects Coverage For any Owned "auto" that is involved in a covered "loss", we will pay up to $500 for "personal effects" that are lost or damaged as a result of the covered 'loss", without applying a deductible. B. SECTION V — DEFINITIONS is amended by ad- ding the following: Q. "Personal effects" means your tangible property that is worn or carried by you, ex- cept for tools, jewelry, money, or securities. Page 5 of 5 FP From: Stefania Baca At: Vanorsdale Insurance Services FaxID: To: National City - Attn: Jenny Date: 922008 01:18 PM Page: 9 of 25 COMMERCIAL GENERAL LIABILITY COMMERCIAL GENERAL LIABILITY COVERAGE FORM Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights,duties and what is and is not covered. Throughout this policy the words "you" and "your" refer to the Named Insured shown in the Declarations, and any other person or organization qualifying as a Named Insured under this policy. The words "we", "us" and "our" refer to the Company providing this insurance. The word "insured" means any person or organization qualifying as such under SECTION II - WHO IS AN INSURED. Other words and phrases that appear in quotation marks have special meaning. Refer to SECTION V-DEFWf71ONS. Coverage provided by this form is also subject to all the Conditions in the COMMON POLICY CONDITIONS form. QUICK REFERENCE SECTION OF THIS FORM BEGINS ON PAGE Section 1 - Coverages 1 Coverage A. Bodily injury and Property Damage Liability 1 Coverage B. Personal and Advertising Injury Liability ..........._........_6 Coverage C. Medical Expenses 7 Supplementary Payments - Coverages A and B 7 Section II - Who Is An Insured 8 Section Ill - Limits of Insurance 10 Section IV - Commercial General Liability Conditions 11 Section V - Definitions 13 Section VI - Broad Form Nuclear Exclusion 16 SECTION I - COVERAGES COVERAGE A BODILY INJURY AND PROPERTY DAMAGE LLABLI1Y 1. Insuring Agreement a. We will pay those sums that the insured becomes legally obligated to pay as damages because of "bodily injury" or "property damage" to which this insur- ance applies. We will have the right and duty to defend the insured against any "suit" seeking those damages. However, we will have no duty to defend the in- sured against any "suit" seeking dam- ages for "bodily injury" or "property damage" to which this insurance does 9S2001 Ed. 4-99 not apply. We may, at our discretion, investigate any "occurrence" and settle any claim or "suit" that may result But (1) The amount we will pay for dam- ages is limited as described in SEC- TION ql - LIMITS OF INSURANCE; and (2) Our right and duty to defend end when we have used up the applicable limit of insurance in the payment of judg- ments or settlements under Cover- ages A or B or medical expenses under Coverage C. No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under Includes ccpyriga+d notarial of Insvarre Services OMce. Inc. wth is penrissiai Ccpyriptt, Inararre Services Office Inc, 1997 Ccpyright 1999, Maryland Casualty Corpaoy, as to addbael text and revisias Page 1 of 17 From: Stefania Baca At: Vanorsdale Insurance Services FaxID: To: National City - Attn: Jenny Date: 9/2/2008 01:18 PM Page: 10 of 25 SUPPLEMENTARY PAYMENTS - COV- ERAGES A AND B. b. This insurance applies to "bodily injury" and "property damage" only if: (1) The "bodily injury" or "property dam- age" is caused by an "occurrence" that takes place in the "coverage territory"; and (2) The "bodily injury" or "property dam- age" occurs during the policy pe- riod. c. Damages because of "bodily injury" in- clude damages claimed by any person or organization for care, loss of ser- vices or death resulting at any time from the "bodily injury". 2. Exclusions This insurance does not apply to: a. Expected Or Intended injury "Bodily injury" or "property damage" expected or intended from the stand- point of the insured This exclusion does not apply to "bodily injury" resulting from the use of reasonable force to protect persons or property. b. Contractual Liability "Bodily injury" or "property damage" for which the insured is obligated to pay damages by reason of the assumption of liability in a contract or agreement This exclusion does not apply to liability for damages: (1) That the insured would have in the absence of the contract or agree- ment; or f2) Assumed in a contract or agreement that is an "insured contract", pro- vided the "bodily injury" or "prop- erty damage" occurs subsequent to the execution of the contract or agreement Solely for the purposes of liability assumed in an "insured contract", reasonable attorney fees and necessary litigation expenses incurred by or for a party other than an insured are deemed to be dam- ages because of "bodily injury" or "property damage", provided: (a) Liability to such party for, or for the cost of, that party's defense has also been assumed in the same "insured contract"; and 9S2001 Ed. 4-99 lb) Such attorney fees and litigation expenses are for defense of that party against a civil or alterna- tive dispute resolution proceed- ing in which damages to which this insurance applies are alleged. c. Liquor Liability "Bodily injury" or "property damage" for which any insured may be held liable by reason of: (1) Causing or contributing to the intoxi- cation of any person; (2) The furnishing of alcoholic bever- ages to a person under the legal drinking age or under the influence of alcohol; or (3) Any statute, ordinance or regulation relating to the sale, gift, distribution or use of alcoholic beverages. This exclusion applies only if you are in the business of manufacturing, distrib- uting, selling, serving or furnishing alco- holic beverages. d. Workers' Compensation And Similar Laws Any obligation of the insured under a workers' compensation, disability ben- efits or unemployment compensation law or any similar law. e. Employer's Liability "Bodily injury" to: (1) An "employee" of the insured arising out of and in the course of: (a) Employment by the insured; or (b) Performing duties related to the conduct of the insureds busi- ness; or (2) The spouse, child, parent, brother or sister of that "employee" as a con- sequence of Paragraph it above. This exclusion applies: (1) Whether the insured may be liable as an employer or in any other ca- pacity; and (2) To any obligation to share damages with or repay someone else who must pay damages because of the injury. This exclusion does not apply to liability assumed by the insured under an "in- sured contract". Includes apyrigted material of lnurance services office, Inc. wth its permission Cqt TInsrarca Services Offroa, Inc. 1997 I999, Copyright NeryIar,d Casualty Coopers", as to ad:t:o al text and revisions Page 2 of 17 From: Stefania Baca At: Vanorsdale Insurance Services FaxID: To: National City - Attn: Jenny Date: 922008 01:18 PM Page: 11 of 25 f. Pollution (1) "Bodily injury' or "property damage" arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or es- cape of "pollutants": (a) At or from any premises, site or location which is or was at any time owned or occupied by, or rented or loaned to, any insured. However, this subparagraph does not apply to: (i) "Bodily injury" if sustained within a building and caused by smoke, fumes, vapor or soot from equipment used to heat that building; (ii) "Bodily injury" or "property damage" for which you may be held liable, if you are a contractor and the owner or lessee of such premises, site or location has been added to your policy as an additional insured with respect to your ongoing operations per- formed for that additional insured at that premises, site or location and such pre- mises, site or location is not and never was owned or occupied by, or rented or loaned to, any insured, other than that additional insured; or (iii) "Bodily injury" or "property damage" arising out of heat, smoke or fumes from a "hos- tile fire"; (b) At or from any premises, site or location which is or was at any time used by or for any insured or others for the handling, stor- age, disposal, processing or treatment of waste; lc) Which are or were at any time transported, handled, stored, treated, disposed of, or pro- cessed as waste by or for any insured or any person or orga- nization for whom you may be legally responsible; (d) At or from any premises, site or location on which any insured or any contractors or subcontrac- tors working directly or indirectly 9S2001 Ed. 4-99 on any insureds behalf are per- forming operations if the "pol- lutants" are brought on or to the premises, site or location in con- nection with such operations by such insured, contractor or sub- contractor. However, this sub- paragraph does not apply to: (i) "Bodily injury" or "property damage" arising out of the escape of fuels, lubricants or other operating fluids which are needed to perform the normal electrical, hydraulic or mechanical functions neces- sary for the operation of "mobile equipment" or its parts, if such fuels, lubricants or other operating fluids es- cape from a vehicle part designed to hold, store or receive them. This exception does not apply if the "bodily injury" or "property damage" arises out of the intentional discharge, dispersal or re- lease of the fuels, lubricants or other operating fluids, or if such fuels, lubricants or other operating fluids are brought on or to the pre- mises, site or location with the intent that they be dis- charged, dispersed or re- leased as part of the opera- tions being performed by such insured, contractor or subcontractor; (ii) "Bodily injury" or "property damage" sustained within a building and caused by the release of gases, fumes or vapors from materials brought into that building in connection with operations being performed by you or on your behalf by a contractor or subcontractor; or (iii) "Bodily injury" or "property damage" arising out of heat, smoke or fumes from a "hos- tile fire"; or (e) At or from any premises, site or location on which any insured or any contractors or subcontrac- tors working directly or indirectly on any insured's behalf are per- forming operations if the opera- Indldes ccpyrilited material of Int:trance Services (Moe vith its penris9m Ggryrid'4 insurmte Services OfMce, Inc, 1997 CcprriyR 1999, N6rylard Casualty Calvary, as to addsael text and revisio,s Page 3 of 17 From: Stefania Baca At: Vanorsdale Insurance Services FaxID: To: National City - Attn: Jenny Date: 9/2/2008 01:18 PM Page: 12 of 25 9• tions are to test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, "pollutants". (2) Any Toss, cost or expense arising out of any: (a) Request, demand, order or statu- tory or regulatory requirement that any insured or others test for, monitor, clean up, remove, contain, treat, detoxify or neu- tralize, or in any way respond to, or assess the effects 'of, "pol- lutants"; or (b) Claim or suit by or on behalf of a governmental authority for damages because of testing for, monitoring, cleaning up, remov- ing, containing, treating, detoxi- fying or neutralizing, or in any way responding to, or assessing the effects of, "pollutants". However, this paragraph does not apply to liability for damages because of "property damage" that the in- sured would have in the absence of such request, demand, order or statutory or regulatory requirement, or such claim or "suit' by or on be- half of a governmental authority. Aircraft, Auto Or Watercraft "Bodily injury" or "property damage" arising out of the ownership, mainte- nance, use or entrustment to others of any aircraft, "auto" or watercraft owned or operated by or rented or loaned to any insured. Use includes operation and "loading or unloading". This exclusion does not apply to: (1) A watercraft while ashore on pre- mises you own or rent; (2) A watercraft you do not own that is: (a) Less than 51 feet long; and (b) Not being used to carry persons or property for a charge; (3) Parking an "auto" on, or on the ways next to, premises you own or rent, provided the "auto" is not owned by or rented or loaned to you or the insured; (4) Liability assumed under any "insured contract" for the ownership, main- 9S2001 Ed, 4-99 tenance or use of aircraft or wa- tercraft; (5) "Bodily injury" or "property damage" arising out of the operation of any of the equipment listed in Paragraph f.(2) or f.C3) of the definition of "mobile equipment"; or (6) An aircraft you do not own that you charter with crew. h. Mobile Equipment "Bodily injury" or "property damage" arising out of: (1) The transportation of "mobile equip- ment" by an "auto" owned or oper- ated by or rented or loaned to any insured; or (2) The use of "mobile equipment" in, or while in practice for, or while being prepared for, any prearranged rac- ing, speed, demolition, or stunting activity. i. War j• "Bodily injury" or "property damage" due to war, whether or not declared, or any act or condition incident to war. War includes civil war, insurrection, rebellion or revolution. This exclusion applies only to liability assumed under a contract or agreement Damage To Property "Property damage" to: (1) Property you own, rent, or occupy; (2) Premises you sell, give away or aban- don, if the "property damage" arises out of any part of those premises. (3) Property loaned to you; (4) Personal property in the care, cus- tody or control of the insured; (5) That particular part of real property on which you or any contractors or subcontractors working directly or indirectly on your behalf are per- forming operations, if the "property damage" arises out of those opera- tions; or (6) That particular part of any property that must be restored, repaired or replaced because "your work" was incorrectly performed on it Paragraphs (1 ), (3) and (4) of this exclu- sion do not apply to "property damage" Includes ocpyrisfYted rreterial of evorance Se -vices office. Inc, wth its perrristim Cpnc$it Inoranoo Services Ofli®, Inc, 1997 C.g yri¢rt 1999, Weryland Casualty Con -pony, as to addecnal taxi and revisions Page 4 of 17 From: Stefania Baca At: Vanorsdale Insurance Services FaxID: To: National City - Attn: Jenny Date: 9/2/2008 01:18 PM Page: 13 of 25 to premises, including the contents of such premises, rented to you for a pe- riod of 7 or fewer consecutive days. A separate limit of insurance applies to Tenants Legal Liability as described in SECTION III - LIMITS OF INSURANCE. Paragraph (2) of this exclusion does not apply if the premises are "your work" and were never occupied, rented or held for rental by you. Paragraphs (3). (4). (5) and (6) of this exclusion do not apply to liability as- sumed under a sidetrack agreement Paragraph (6) of this exclusion does not apply to "property damage' included in the "products -completed operations hazard". k. Damage To Your Product "Property damage" to "your product" arising out of it or any part of it I. Damage To Your Work "Property damage" to "your work" aris- ing out of it or any part of it and included in the "products -completed operations hazard". This exclusion does not apply if the dam- aged work or the work out of which the damage arises was performed on your behalf by a subcontractor. m. Damage To Impaired Property Or Prop- erty Not Physically Injured "Property damage" to "impaired prop- erty" or property that has not been physi- cally injured, arising out of: (1) A defect, deficiency, inadequacy or dangerous condition in "your prod- uct' or "your work"; or (2) A delay or failure by you or anyone acting on your behalf to perform a contract or agreement in accordance with its terms. This exclusion does not apply to the loss of use of other property arising out of sudden and accidental physical injury to "your product" or "your work" after it has been put to its intended use. n. Recall Of Products, Work Or Impaired Property Damages claimed for any loss, cost or expense incurred by you or others for the loss of use, withdrawal, recall, in- 932001 Ed. 4-99 spection, repair, replacement, adjust- ment, removal or disposal of: (1) "Your product' (2) "Your work"; or (3) "Impaired property"; if such product, work, or property is withdrawn or recalled from the market or from use by any person or organiza- tion because of a known or suspected defect, deficiency, inadequacy or dan- gerous condition in it o. Professional (1) "Bodily injury" or "property damage" arising out of the rendering or fail- ure to render any professional ser- vice, including but not limited to: (a) Accounting, advertising, archi- tectural, drafting, engineering, fi- nancial, insurance or legal ser- vices, advice and instruction; (b) Medical, cosmetic, dental, ear piercing, hair dressing, massage, physical therapy, veterinary, nurs- ing, surgical or x-ray services, advice and instruction; (c) Use of any tanning booth, tan- ning bed, tanning equipment or tanning device; (d) Laboratory operations or ser- vices, whether medical or not; and (e) Services performed as a funeral director or as an operator of a cemetery; and (f) Any service, treatment, advice or instruction for the purpose of appearance or skin enhance- ment, hair removal or replace- ment or personal grooming. (2) This exclusion does not apply to: (a) Pharmacological services if: (i) You do business as a retail drug store and do not manu- facture or compound in bulk pharmaceuticals for sale by others; and (ii) The "bodily injury" or "prop- erty damage" is not caused by the willful violation of a penal statute or ordinance relating to the sale of phar- Inludes ogyngttted nvtaial of Irsstrance Services Office. Inc. wt., its prrrissia Copyright 1nvratce Services Office, Inc, 1997 Ccp right. 1999, rWrylard Casualty Corpany, as to addtiael text and revisions Page 5 of 17 From: Stefania Baca At: Vanorsdale Insurance Services FaxID: To: National City - Attn: Jenny Date: 9/212008 01:18 PM Page: 14 of 25 maceuticals by or with the knowledge or consent of any insured; (b) Optical or hearing aid services, including the prescribing, prepa- ration, production, mounting, fit- ting, demonstration or distribu- tion of ophthalmic lenses and similar products or hearing aid services. p. Personal And Advertising Injury "Bodily injury" arising out of "personal and advertising injury". Exclusions c. through o. do not apply to "prop- erty damage" to premises while rented to you or temporarily occupied by you with permis- sion of the owner. A separate limit of insurance applies to Tenants Legal Liability, as described in SECTION III - LIMITS OF INSURANCE. COVERAGE B. PERSONAL AND ADVERTISING INJURY LIABILITY 1. Insuring Agreement a. We will pay those sums that the insured becomes legally obligated to pay as damages because of "personal and ad- vertising injury' to which this insurance applies. We will have the right and duty to defend the insured against any "suit" seeking those damages. However, we will have no duty to defend the insured against any "suit" seeking damages for "personal and advertising injury" to which this insurance does not apply. We may, at our discretion, investigate any offense and settle any claim or "suit" that may result But (1) The amount we will pay for dam- ages is limited as described in SEC- TION 111- UNITS OF INSURANCE; and (2) Our right and duty to defend end when we have used up the applicable limit of insurance in the payment of judg- ments or settlements under Cover- ages A or B or medical expenses under Coverage C. No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under SUPPLEMENTARY PAYMENTS - COV- ERAGES A AND B. b. This insurance applies to "personal and advertising injury" caused by an offense arising out of your business but only if the offense was committed in the "cov- 9S2001 Ed. 4-99 erage territory" during the policy pe- riod. 2. Exclusions This insurance does not apply to: a. "Personal and advertising injury": (1) Caused by or at the direction of the insured with the knowledge that the act would violate the rights of an- other and would inflict "personal and advertising injury"; (2) Arising out of oral or written pub- lication of material, if done by or at the direction of the insured with knowledge of its falsity; (3) Arising out of oral or written pub- lication of material whose first pub- lication took place before the be- ginning of the policy period; (4) Arising out of the willful violation of a penal statute or ordinance com- mitted by or at with the consent of any insured; (5) For which the insured has assumed liability in a contract or agreement This exclusion does not apply to li- ability for damages that the insured would have in the absence of the contract or agreement; (6) Arising out of a breach of contract, except an implied contract to use another's advertising idea in your "advertisement"; (7) Arising out of the failure of goods, products or services to conform with any statement of quality or perfor- mance made in your "advertisement"; (8) Arising out of the wrong descrip- tion of the price of goods, prod- ucts or services stated in your "ad- vertisement"; (9) Committed by an insured whose business is advertising, broadcast- ing, publishing or telecasting. How- ever, this exclusion does not apply to Paragraphs 1 4.a. b. and c. of "per- sonal and advertising injury" under SECTION V - DEFINITIONS; or (10) Arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or es- cape of "pollutants" at any time. Includes copyrighted material of Irmrance Services Office. Inc, wta its penissim Capyriyr, Ireararw Services office. Ire. 1997 Cepyrirj t 1999, IvarylaM Casualty Cmparry, as to addacral teas and revisiax Page 6 of 17 From: Stefania Baca At: Vanorsdale Insurance Services FaxID: To: National City - Attn: Jenny Date: 9/2/2008 01:18 PM Page: 15 of 25 b. Any loss, cost or expense arising out of any: (1) Request, demand or order that any insured or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of, "pollutants"; or (2) Claim or suit by or on behalf of a governmental authority for damages because of testing for, monitoring, cleaning up, removing, containing, treating, detoxifying or neutralizing, or in any way responding to, or as- sessing the effects of, "pollutants". COVERAGE C. MEDICAL PAYMENTS 1. Insuring Agreement a. We will pay medical expenses as de- scribed below for "bodily injury' caused by an accident (1) On premises you own or rent; (2) On ways next to premises you own or rent; or (3) Because of your operations; provided that (1) The accident takes place in the "cov- erage territory" and during the policy period; (2) The expenses are incurred and re- ported to us within three years of the date of the accident; and (3) The injured person submits to ex- amination, at our expense, by physi- cians of our choice as often as we reasonably require. b. We will make these payments regard- less of fault These payments will not exceed the applicable limit of insurance. We will pay reasonable expenses for: (1) First aid administered at the time of an accident; (2) Necessary medical, surgical, x-ray and dental services, including pros- thetic devices; and (3) Necessary ambulance, hospital, pro- fessional nursing and funeral services. 2. Exclusions We will not pay expenses for "bodily injury": a. To any insured. 9S2001 Ed. 4-99 9. h. b. To a person hired to do work for or on behalf of any insured or a tenant of any insured. c. To a person injured on that part of pre- mises you own or rent that the person normally occupies. d. To a person, whether or not an "em- ployee" of any insured, if benefits for the "bodily injury" are payable or must be provided under a workers' compen- sation or disability benefits law or a similar law. e. To a person injured while taking part in athletics. f. included within the "products -completed operations hazard". Excluded under Coverage A Due to war, whether or not declared, or any act or condition incident to war. War includes civil war, insurrection, re- bellion or revolution. SUPPLEMENTARY PAYMENTS - COVERAGES A AND B 1. We will pay, with respect to any claim we investigate or settle, or any "suit" against an insured we defend: a. All expenses we incur. b. The cost of bail bonds required because of accidents or traffic law violations arising out of the use of any vehicle to which the Bodily Injury Liability Cover- age applies. We do not have to furnish these bonds. c. The cost of bonds to release attach- ments, but only for bond amounts within the applicable limit of insurance. We do not have to furnish these bonds. d. All reasonable expenses incurred by the insured at our request to assist us in the investigation or defense of the claim or "suit", including actual loss of earnings up to $250 a day because of time off from work. e. All costs taxed against the insured in the "suit". f. Prejudgment interest awarded against the insured on that part of the judgment we pay. If we make an offer to pay the ap- plicable limit of insurance, we will not pay any prejudgment interest based on that period of time after the offer. Includes ccp rijrted arterial of Insrancs Services Of Ir . vial its pornissar Ccpyrirgn. Irmvance Services Offia, Inc. 1997 Ctpfri4t, 1999, nkryland Casralty Carparr. as to addoarl text and revisioss Page 7 of 17 From: Stefania Baca At: Vanorsdale Insurance Services FaxID: To: National City - Attn: Jenny Date: 9/2/2008 01:18 PM Page: 16 of 25 g. All interest on the full amount of any judgment that accrues after entry of the judgment and before we have paid, of- fered to pay, or deposited in court the part of the judgment that is within the applicable limit of insurance. These payments will not reduce the limits of insurance. 2. If we defend an insured against a "suit" and an indemnitee of the insured is also named as a party to the "suit", we will defend that indemnitee if all of the following conditions are met a. The "suit" against the indemnitee seeks damages for which the insured has as- sumed the liability of the indemnitee in a contract or agreement that is an "in- sured contract"; b. This insurance applies to such liability assumed by the insured; c. The obligation to defend, or the cost of the defense of, that indemnitee, has also been assumed by the insured in the same "insured contract"; d. The allegations in the "suit" and the in- formation we know about the "occur- rence" are such that no conflict appears to exist between the interests of the insured and the interests of the indem- nitee; e. The indemnitee and the insured ask us to conduct and control the defense of that indemnitee against such "suit' and agree that we can assign the same counsel to defend the insured and the indemnitee; and f. The indemnitee: (1) Agrees in writing to: (a) Cooperate with us in the inves- tigation, settlement or defense of the "suit"; lb) Immediately send us copies of any demands, notices, sum- monses or legal papers received in connection with the "suit"; (c) Notify any other insurer whose coverage is available to the in- demnitee; and (d) Cooperate with us with respect to coordinating other applicable insurance available to the indem- nitee; and 9S2001 Ed. 4-99 (2) Provides us with written authoriza- tion to: (a) Obtain records and other infor- mation related to the "suit"; and (b) Conduct and control the defense of the indemnitee in such "suit'. So long as the above conditions are met, attorneys' fees incurred by us in the de- fense of that indemnitee, necessary litiga- tion expenses incurred by us and necessary litigation expenses incurred by the indemni- tee at our request will be paid as Supple- mentary Payments. Notwithstanding the pro- visions of Paragraph 2.b.(2) of SECTION I - COVERAGE A - BODILYINJURY AND PROP- ERTY DAMAGE LIABLFTY, such payments will not be deemed to be damages for "bodily injury" and "property damage" and will not reduce the limits of insurance. Our obligation to defend an insureds indem- nitee and to pay for attorneys' fees and nec- essary litigation expenses as Supplemen- tary Payments ends when: a. We have used up the applicable limit of insurance in the payment of judgments or settlements; or b. The conditions set forth above, or the terms of the agreement described in Paragraph f. above, are no longer met. SECTION II - WHO IS AN INSURED 1. If you are designated in the Declarations as: a. An individual, you and your spouse are insureds, but only with respect to the conduct of a business of which you are the sole owner. b. A partnership or joint venture, you are an insured. Your members, your part- ners, and their spouses are also insureds, but only with respect to the conduct of your business. c. A limited liability company, you are an insured Your members are also insureds, but only with respect to the conduct of your business. Your managers are in- sureds, but only with respect to their duties as your managers. d. An organization other than a partner- ship, joint venture or limited liability com- pany, you are an insured. Your "execu- tive officers" and directors are insureds, but only with respect to their duties as your officers or directors. Your stock- holders are also insureds, but only with respect to their liability as stockholders. Irdufos ccpricated material of lrstra,Ce Swipes Offiat Inc, Win its permission Cn aOCasualty Services Office. Ire, 1997 CocyrigK 1999,1Jhry1nd Caapenf, as to ad:Waal text and revisers Page 8 of 17 From: Stefania Baca At: Vanorsdale Insurance Services FaxID: To: National City - Attn: Jenny Date: 9/2/2008 01:18 PM Page: 17 of 25 Your subsidiaries, and subsidiaries of subsidiaries, are insureds if: (1) They are legally incorporated enti- ties; and (2) You own more than 50% of the vot- ing stock in them as of the effective date of this policy. If such subsidiaries are not shown in the Declarations, you must report them to us within 180 days of the inception of this policy. 2. Each of the following is also an insured: a. Your "employees", other than either your "executive officers" (if you are an or- ganization other than a partnership, joint venture or limited liability company) or your managers (if you are a limited li- ability company), but only for acts within the scope of their employment by you or while performing duties related to the conduct of your business. However, none of these "employees" is an insured for: (1) "Bodily injury" or "personal and ad- vertising injury": (a) To you, to your partners or members (if you are a partner- ship or joint venture), to your members (if you are a limited li- ability company), or to a co -"em- ployee" while that co -"employee" is either in the course of his or her employment or performing duties related to the conduct of your business; (b) To the spouse, child, parent, brother or sister of that co-"ern- ployee" as a consequence of Paragraph (1 )(a) above; (c) For which there is any obligation to share damages with or repay someone else who must pay damages because of the injury described in Paragraphs (1 )(a) or (b) above; or (d) Arising out of his or her provid- ing or failing to provide profes- sional health care services. (2) "Property damage" to property: (a) Owned, occupied or used by, (b) Rented to, in the care, custody or control of, or over which physical control is being exer- 9S2001 Ed. 4-99 cised for any purpose by you, any of your "employees", any partner or member (if you are a partnership or joint venture), or any member (if you are a limited liability company). b. Any person (other than your "employee"), or any organization while acting as your real estate manager. c. Any person or organization having proper temporary custody of your property if you die, but only: (1) With respect to liability arising out of the maintenance or use of that property; and (2) Until your legal representative has been appointed. d. Your legal representative if you die, but only with respect to duties as such. That representative will have all your rights and duties under this Coverage Part. e. Any person or organization with whom you agree, because of a written con- tract, to provide insurance such as is afforded under this policy, but only with respect to liability arising out of your operations, "your work" or facilities owned or used by you. This provision does not apply: (1) To any vendor, concessionaire, les- sor of leased equipment, grantor of a franchise, engineer, architect or surveyor; or (2) Unless the contract has been signed prior to the date of "bodily injury", "property damage", or "personal or advertising injury". f. Any person or organization to whom you are obligated by virtue of a written "in- sured contract" to provide insurance such as is afforded by this policy, but only with respect to liability arising out of the ownership, maintenance, or use of that part of any premises leased to you. This does not apply to: (1) Any "occurrence" that takes place after you cease to be a tenant on those premises. (2) Structural alterations, new construc- tion or demolition operations per- formed by or on behalf of such in- sured. Indudes ocpyrigtred material of Instrance Services Office. Irc, o,th its permission lyIand CaAnt Services Office, Inc. 1997 Ccpyrlgw. 1999, ty oTpany, as to edition, tart and revinott Page 9 of 17 From: Stefania Baca At: Vanorsdale Insurance Services FaxID: To: National City - Attn: Jenny Date: 9/2/2008 01:18 PM Page: 18 of 25 g. Any state or political subdivision, but only as respects legal liability incurred by the state or political subdivision solely be- cause it has issued a permit in connec- tion with premises you own, rent, or control for one of the hazards listed below: (1) The existence, maintenance, repair, construction, erection, or removal of advertising signs, awnings, cano- pies, cellar entrances, coal holes, driveways, manholes, marquees, hoistaway openings, sidewalk vaults, street banners or decorations and similar exposures; (2) The construction, erection or re- moval of elevators; or (3) The ownership, maintenance or use of any elevators covered by this in- surance. 3. With respect to "mobile equipment" regis- tered in your name under any motor vehicle registration law, any person is an insured while driving such equipment along a public highway with your permission. Any other per- son or organization responsible for the con- duct of such person is also an insured, but only with respect to liability arising out of the operation of the equipment, and only if no other insurance of any kind is available to that person or organization for this liability. However, no person or organization is an insured with respect to: a. "Bodily injury" to a co -"employee" of the person driving the equipment; or b. "Property damage" to property owned by, rented to, in the charge of or occu- pied by you or the employer of any person who is an insured under this pro- vision. 4. Any organization you newly acquire or form, other than a partnership or joint venture, and over which you maintain ownership or majority interest, will qualify as a Named Insured if there is no other similar insurance available to that organization. However: a. Coverage under this provision is afforded only until the 180th day after you ac- quire or form the organization or the end of the policy period, whichever is earlier; b. Coverage A does not apply to "bodily injury" or "property damage" that oc- curred before you acquired or formed the organization; and 9S2001 Ed. 4-99 c. Coverage B does not apply to "personal and advertising injury" arising out of an offense committed before you acquired or formed the organization. No person or organization is an insured with respect to the conduct of any current or past partnership, joint venture or limited liability com- pany that is not shown as a Named Insured in the Declarations. SECTION III - LIMITS OF INSURANCE 1. The Limits of Insurance shown in the Dec- larations and the rules below fix the most we will pay regardless of the number of: a. b. c. Insureds; Claims made or "suits" brought; or Persons or organizations making claims or bringing "suits". 2. The General Aggregate Limit is the most we will pay for the sum of: a. b. Damages under Coverage A, except damages because of "bodily injury" or "property damage" included in the "prod- ucts -completed operations hazard"; and Damages under Coverage B. The General Aggregate Limit applies sepa- rately to each location owned by or rented to you. Location, as used here, means pre- mises involving the same or connecting lots, or premises whose connection is interrupted only by a street, roadway, waterway or right-of-way of a railroad. 3. The Products -Completed Operations Ag- gregate Limit is the most we will pay under Coverage A for damages because of "bodily injury" and "property damage" included in the "products -completed operations hazard". 4. Subject to 2. above, the Personal and Ad- vertising Injury Limit is the most we will pay under Coverage B for the sum of all dam- ages because of all "personal and advertis- ing injury" sustained by any one person or organization. 5. Subject to 2. or 3. above, whichever ap- plies, the Each Occurrence Limit is the most we will pay for the sum of: a. Damages under Coverage A and b. Medical expenses under Coverage C because of all "bodily injury" and "property damage" arising out of any one "occurrence". 6. Subject to 5. above, the Tenants Legal Li- ability Limit is the most we will pay under Indrades apyricf led rraterial of Instance Services Office Ix. wa, its'Amiesim Ccpyrigia. Inarance Services office, Inc, 1997 Ccpyrigt 1999. Maryland Casualty Corpse.% as to addarval text and re✓isan Page 10 of 17 From: Stefania Baca At: Vanorsdale Insurance Services FaxID: To: National City - Attn: Jenny Date: 9/2/2008 01:18 PM Page: 19 of 25 Coverage A for damages because of "prop- erty damage" to any one premises, while rented to you or temporarily occupied by you with permission of the owner, arising out of any one "occurrence". 7. Subject to 5. above, the Medical Expense Limit is the most we will pay under Cover- age C for all medical expenses because of "bodily injury" sustained by any one person. The Limits of Insurance of this Coverage Part apply separately to each consecutive annual period and to any remaining period of less than 12 months, starting with the beginning of the policy period shown in the Declarations, unless the policy period is extended after issuance for an addi- tional period of Tess than 12 months. In that case, the additional period will be deemed part of the last preceding period for purposes of determining the Limits of Insurance. SECTION IV - COMMERCIAL GENERAL LIABLr1Y CONDITIONS 1. Bankruptcy Bankruptcy or insolvency of the insured or of the insured's estate will not relieve us of our obligations under this Coverage Part 2. Duties In The Event Of Occurrence, Offense, Claim Or Suit a. You must see to it that we are notified as soon as practicable of an "occur- rence" or an offense which may result in a claim. To the extent possible, notice should include: (1) How, when and where the "occur- rence" or "offense" took place; (2) The names and addresses of any in- jured persons and witnesses; and (3) The nature and location of any injury or damage arising out of the "oc- currence" or offense. b. If a claim is made or "suit' is brought against any insured, you must: (1) Immediately record the specifics of the claim or "suit" and the date re- ceived; and (2) Notify us as soon as practicable. You must see to it that we receive writ- ten notice of the claim or "suit' as soon as practicable. c. You and any other involved insured must (1) Immediately send us copies of any demands, notices, summonses or 9S2001 Ed. 4-99 legal papers received in connection with the claim or "suit"; (2) Authorize us to obtain records and other information; (3) Cooperate with us in the investiga- tion or settlement of the claim or defense against the "suit"; and (4) Assist us, upon our request, in the enforcement of any right against any person or organization which may be liable to the insured because of injury or damage to which this in- surance may also apply. d. No insured will, except at that insured's own cost, voluntarily make a payment, assume any obligation, or incur any ex- pense, other than for first aid, without our consent. e. Knowledge of "occurrence", claim or "suit' by an agent, servant or "employee" of an insured (other than an officer or partner) does not imply knowledge by the insured unless the insured has re- ceived notice from the agent, servant or "employee". Failure by an agent, servant or "employee' of an insured (other than an "executive officer", manager or partner) to notify us of an "occurrence" will not be con- sidered an failure to comply with para- graphs a and b. above. 3. Legal Action Against Us No person or organization has a right under this Coverage Part a. To join us as a party or otherwise bring us into a "suit" asking for damages from an insured; or b. To sue us on this Coverage Part unless all of its terms have been fully complied with. f. A person or organization may sue us to re- cover on an agreed settlement or on a final judgment against an insured obtained after an actual trial; but we will not be liable for damages that are not payable under the terms of this Coverage Part or that are in excess of the applicable limit of insurance. An agreed settlement means a settlement and release of liability signed by us, the insured and the claimant or the claimant's legal representa- tive. 4. Motor Vehicle Laws Imitates copyrighted netaial of Irstrance Services Office, Inc. vuth Its perrrissicn 1599,Ec lard Ca Services Office. Inc, )997 Copyricjrt, ry N Cn+r', as to adivaet text and revisions Page 11 of 17 From: Stefania Baca At: Vanorsdale Insurance Services FaxID: To: National City - Attn: Jenny Date: 9/2/2008 01:18 PM Page: 20 of 25 With respect to "mobile equipment' to which this insurance applies: a. When this Coverage Part is certified as proof of financial responsibility under the provisions of any motor vehicle fi- nancial responsibility law, the insurance provided by the Coverage Part for Bodily Injury Liability or Property Damage Li- ability will comply with the provisions of the law to the extent of the coverage and limits of insurance required by that law. b. We will provide any liability, uninsured motorists, underinsured motorists, no- fault or other coverages required by any motor vehicle insurance law. We will provide the required limits for those coverages. 5. Other Insurance If other valid and collectible insurance is avail- able to the insured for a Toss we cover under Coverages A or B of this Coverage Part, our obligations are limited as follows: a. Primary Insurance This insurance is primary except when b. below applies. If this insurance is pri- mary, our obligations are not affected unless any of the other insurance is also primary. Then, we will share with all that other insurance by the method described in c. below. b. Excess Insurance This insurance is excess over: (1) Any of the other insurance, whether primary, excess, contingent or on c. any other basis: (a) That is Fire, Extended Coverage, Builder's Risk, Installation Risk or similar coverage for "your work"; lb) That insures for direct physical Toss to premises rented to you or temporarily occupied by you with permission of the owner; (c) That is insurance purchased by you to cover your liability as a tenant for "property damage" to premises rented to you or tem- porarily occupied by you with permission of the owner; or (d) If the loss arises out of the main- tenance or use of aircraft, "au- tos" or watercraft to the extent not subject to Exclusion g. of 992001 Ed. 4-99 SECTION 1 - COVERAGE A - BODILY INJURY AND PROPERTY DAMAGE LIABILITY. (2) Any other primary insurance avail- able to you covering liability for dam- ages arising out of the premises or operations for which you have been added as an additional insured by attachment of an endorsement. When this insurance is excess, we will have no duty under Coverages Aor B to defend the insured against any claim or "suit" if any other insurer has a duty to defend the insured against that claim or "suit". If no other insurer defends, we will undertake to do so, but we will be entitled to the insureds rights against all those other insurers. When this insurance is excess over other insurance, we will pay only our share of the amount of the loss, if any, that ex- ceeds the sum of: 1) The total amount that all such other insurance would pay for the loss in the absence of this insurance; and (2) The total of all deductible and self - insured amounts under all that other insurance. We will share the remaining loss, if any, with any other insurance that is not de- scribed in this Excess Insurance provi- sion and was not bought specifically to apply in excess of the Limits of Insur- ance shown in the Declarations of this Coverage Part Method Of Sharing If all of the other insurance permits con- tribution by equal shares, we will follow this method also. Under this approach each insurer contributes equal amounts until it has paid its applicable limit of in- surance or none of the loss remains, whichever comes first. If any of the other insurance does not permit contribution by equal shares, we will contribute by limits. Under this method, each insurer's share is based on the ratio of its applicable limit of in- surance to the total applicable limits of insurance of all insurers. 6. Premium Audit trdtdes q'pyn fitted material of Irovarce Se'v60e3 Office, Inc. snarl its pernissice Ccpyrighrt. Irerance Services Office. Inc. 1997 Ccpyri¢R 1999, 4bMard Casntty Carpnny, as to add tk al text and revision Page 12 of 17 From: Stefania Baca At: Vanorsdale Insurance Services FaxID: To: National City - Attn: Jenny Date: 922008 01:18 PM Page: 21 of 25 a. We will compute all premiums for this Coverage Part in accordance with our rules and rates. b. Premium shown in this Coverage Part as advance premium is a deposit premium only. At the close of each audit period we will compute the earned premium for that period. Audit premiums are due and payable on notice to the first Named Insured. If the sum of the advance and audit premiums paid for the policy pe- riod is greater than the earned premium, we will return the excess to the first Named Insured. c. The first Named Insured must keep records of the information we need for premium computation, and send us cop- ies at such times as we may request. 7. Representations By accepting this policy, you agree: a. The statements in the Declarations are accurate and complete; b. Those statements are based upon rep- resentations you made to us; and c. We have issued this policy in reliance upon your representations. 8. Separation Of Insureds Except with respect to the Limits of Insur- ance, and any rights or duties specifically assigned in this Coverage Part to the first Named Insured, this insurance applies: a. As if each Named Insured were the only Named Insured; and b. Separately to each insured against whom claim is made or "suit" is brought 9. Transfer Of Rights Of Recovery Against Others To Us If the insured has rights to recover all or part of any payment we have made under this Coverage Part, those rights are trans- ferred to us. The insured must do nothing after loss to impair them. At our request, the insured will bring "suit" or transfer those rights to us and help us enforce them. This condition does not apply to Coverage C. Medical Expenses. 10. Unintentional Errors And Omissions Any unintentional error or omission in the description of, or failure to completely describe, any premises or operations in- tended to be covered by this Coverage Part 9S2001 Ed. 4-99 will not invalidate or affect coverage for those premises or operations. But you must report such error or omission to us as soon as practicable after its discovery. 1 1. When We Do Not Renew If we decide not to renew this Coverage Part, we will mail or deliver to the first Named Insured shown in the Declarations written notice of the non -renewal not less than 30 days before the expiration date. If notice is mailed, proof of mailing will be sufficient proof of notice. SECTION V - DEFINITIONS 1. "Advertisement" means a notice that is broadcast or published to the general public or specific market segments about your goods, products or services for the pur- pose of attracting customers or support- ers. 2. "Auto" means a land motor vehicle, trailer or semitrailer designed for travel on public roads, including any attached machinery or equipment But "auto" does not include "mobile equipment". 3. "Bodily injury" means bodily injury, sickness or disease sustained by a person. This in- cludes mental anguish, mental injury, shock, fright or death resulting from bodily injury, sickness or disease. 4. "Coverage territory" means: a. The United States of America (including its territories and possessions), Puerto Rico and Canada; b. International waters or airspace, pro- vided the injury or damage does not occur in the course of travel or transportation to or from any place not included in a. above; or c. All parts of the world if: (1) The injury or damage arises out of: (a) Goods or products made or sold by you in the territory described in a above; or (b) The activities of a person whose home is in the territory described in a above, but is away for a short time on your business; and (2) The insured's responsibility to pay damages is determined in a "suit" on the merits, in the territory described in a above or in a settlement we agree to. Includes occyrictaed material of Inst ante Services Office, Inc, wth its pemissicn Ccpfnit Irwrame Services Office, Irv. 1997 Ccpyri * 1999, Maryland Casualty CtrPrry, as to arddtiont text and revision Page 13 of 17 From: Stefania Baca At: Vanorsdale Insurance Services FaxID: To: National City - Attn: Jenny Date: 9/2/2008 01:18 PM Page: 22 of 25 5. "Employee" includes a "leased worker". "Em- ployee" does not include a "temporary worker". 6. "Executive officer" means a person holding any of the officer positions created by your charter, constitution, by-laws or any other similar governing document 7. "Hostile fire" means one which becomes uncontrollable or breaks out from where it was intended to be. 8. impaired property" means tangible prop- erty, other than "your product" or "your work", that cannot be used or is less useful be- cause: a. It incorporates "your product" or "your work" that is known or thought to be defective, deficient, inadequate or dan- gerous; or b. You have failed to fulfill the terms of a contract or agreement; if such property can be restored to use by: a. The repair, replacement, adjustment or removal of "your product" or "your work"; or b. Your fulfilling the terms of the contract or agreement 9. "Insured contract" means: a. b. c. d. e. f. A contract for a lease of premises. However, that portion of the contract for a lease of premises that indemnifies any person or organization for damage by fire to premises while rented to you or temporarily occupied by you with permission of the owner is not an "in- sured contract"; A sidetrack agreement; Any easement or license agreement, except in connection with construction or demolition operations on or within 50 feet of a railroad; An obligation, as required by ordinance, to indemnify a municipality, except in con- nection with work for a municipality; An elevator maintenance agreement; That part of any other contract or agree- ment pertaining to your business (including an indemnification of a municipality in connection with work performed for a municipality) under which you assume the tort liability of another party to pay for "bodily injury" or "property damage" to a third person or organization. Tort li- 9S2001 Ed. 4-99 ability means a liability that would be imposed by law in the absence of any contract or agreement. Paragraph f. does not include that part of any contract or agreement: (1) That indemnifies a railroad for "bodily injury" or "property damage" arising out of construction or demolition operations, within 50 feet of any railroad property and affecting any railroad bridge or trestle, tracks, road -beds, tunnel, underpass or crossing; (2) That indemnifies an architect, engi- neer or surveyor for injury or dam- age arising out of: (a) Preparing, approving, or failing to prepare or approve, maps, shop drawings, opinions, reports, surveys, field orders, change orders or drawings and specifi- cations; or (b) Giving directions or instructions, or failing to give them, if that is the primary cause of the injury or damage; or (3) Under which the insured, if an archi- tect, engineer or surveyor, assumes liability for an injury or damage aris- ing out of the insured's rendering or failure to render professional ser- vices, including those listed in (2) above and supervisory, inspection, architectural or engineering activi- ties. 10. "Leased worker" means a person leased to you by a labor leasing firm under an agree- ment between you and the labor leasing firm, to perform duties related to the conduct of your business. "Leased worker" does not include a "temporary worker". 1 1. "Loading or unloading" means the handling of property: a. After it is moved from the place where it is accepted for movement into or onto an aircraft, watercraft or "auto"; b. While it is in or on an aircraft, water- craft or "auto"; or c. While it is being moved from an air- craft, watercraft or "auto" to the place where it is finally delivered; but "loading or unloading" does not include the movement of property by means of a mechanical device, other than a hand truck, Irduds ccpyciyrted rratenal of Ire: ants Services office, Inc. wer its pgmssim OsPYritt. Insurance Services office. Inc, 1997 Ccpyrig+t 1999, Wen/land Castelty Coy. as to addeonal text and revisions Page 14 of 17 From: Stefania Baca At: Vanorsdale Insurance Services FaxID: To: National City - Attn: Jenny Date: 9/2/2008 01:18 PM Page: 23 of 25 that is not attached to the aircraft, water- craft or "auto". 12. "Mobile equipment means any of the fol- lowing types of land vehicles, including any attached machinery or equipment a. Bulldozers, farm machinery, forklifts and other vehicles designed for use princi- pally off public roads; b. Vehicles maintained for use solely on or next to premises you own or rent; c. Vehicles that travel on crawler treads; d. Vehicles, whether self-propelled or not, maintained primarily to provide mobility to permanently mounted: (1) Power cranes, shovels, loaders, dig- gers or drills; or (2) Road construction or resurfacing equipment such as graders, scrap- ers or rollers; e. Vehicles not described in a, b., c. or d. above that are not self-propelled and are maintained primarily to provide mobility to permanently attached equip- ment of the following types: (1) Air compressors, pumps and gen- erators, including spraying, welding, building cleaning, geophysical explo- ration, lighting and well servicing equipment; or (2) Cherry pickers and similar devices used to raise or lower workers; f. Vehicles not described in a, b., c. or d. above maintained primarily for purposes other than the transportation of per- sons or cargo. However, self-propelled vehicles with the following types of permanently at- tached equipment are not "mobile equip- ment" but will be considered "autos": (1) Equipment with a gross vehicle weight of 1000 lbs. or more and designed primarily for: (a) Snow removal; (b) Road maintenance, but not con- struction or resurfacing; or (c) Street cleaning; (2) Cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or lower workers; and 9S2001 Ed. 4-99 (3) Air compressors, pumps and gen- erators, including spraying, welding, building cleaning, geophysical explo- ration, lighting and well servicing equipment. 13. "Occurrence" means an accident, including continuous or repeated exposure to sub- stantially the same general harmful condi- tions. 14. "Personal and advertising injury" means in- jury, including consequential "bodily injury", arising out of one or more of the following offenses: a. False arrest, detention or imprisonment; b. Malicious prosecution; c. The wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of a room, dwelling or premises that a person occupies, committed by or on behalf of its owner, landlord or lessor; d. Oral or written publication of material that slanders or libels a person or orga- nization or disparages a person's or organization's goods, products or ser- vices; e. Oral or written publication of material that violates a person's right of privacy; f. Misappropriation of advertising ideas or style of doing business; or Infringing upon anther's copyright, trade dress or slogan in your "advertisement". 15. "Pollutants" mean any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes ma- terials to be recycled, reconditioned or re- claimed. 9 16. "Products -completed operations hazard": a. Includes all "bodily injury" and "property damage" occurring away from premises you own or rent and arising out of "your product" or "your work" except: (1) Products that are still in your physi- cal possession; or (2) Work that has not yet been com- pleted or abandoned. However, "your work" will be deemed completed at the earliest of the following times: (a) When all of the work called for in your contract has been com- pleted. Induias txpyn jnad material of insixeroa Services Office. Inc. vie, its pamissim cjn. trwanoa Services Offioe. Inc. 1997 CcpyriGh; 1999. lend Casualty Company. as to eddtimal tar, and revision Page 15 of 17 From: Stefania Baca At: Vanorsdale Insurance Services FaxID: To: National City - Attn: Jenny Date: 9/2/2008 01:18 PM Page: 24 of 25 (b) When all of the work to be done at the job site has been com- pleted if your contract calls for work at more than one job site. (c) When that part of the work done at a job site has been put to its intended use by any person or organization other than another contractor or subcontractor working on the same project. Work that may need service, main- tenance, correction, repair or re- placement, but which is otherwise complete, will be treated as com- pleted. b. Also includes "bodily injury" and "prop- erty damage" arising from the consump- tion of food or beverages sold, handled or distributed as "your product" at any premises you own or rent c. Does not include "bodily injury" or "prop- erty damage" arising out of: (1) The transportation of property, un- less the injury or damage arises out of a condition in or on a vehicle cre- ated by the "loading or unloading" of that vehicle; (2) The existence of tools, uninstalled equipment or abandoned or unused materials; or (3) Products or operations for which the classification, listed in this Cov- erage Part, states that products - completed operations are subject to the General Aggregate Limit 17. "Property damage" means: a. Physical injury to tangible property, in- cluding all resulting loss of use of that property. All such loss of use shall be deemed to occur at the time of the physical injury that caused it; or b. Loss of use of tangible property that is not physically injured. All such loss of use shall be deemed to occur at the time of the "occurrence" that caused it 18. "Suit" means a civil proceeding in which damages because of "bodily injury", "prop- erty damage" or "personal and advertising injury" to which this insurance applies are alleged. "Suit' includes: a. An arbitration proceeding in which such damages are claimed and to which the insured must submit or does submit with our consent; or 9S2001 Ed. 4-99 b. Any other alternative dispute resolution proceeding in which such damages are claimed and to which the insured sub- mits with our consent 19. "Temporary worker" means a person who is furnished to you to substitute for a per- manent "employee" on leave or to meet seasonal or short-term workload condi- tions. 20. "Your product" means: a. Any goods or products, other than real property, manufactured, sold, handled, distributed or disposed of by: (1) You; (2) Others trading under your name; or (3) A person or organization whose business or assets you have acquired; and b. Containers (other than vehicles), mate- rials, parts or equipment furnished in connection with such goods or prod- ucts. "Your product" includes: a. Warranties or representations made at any time with respect to the fitness, quality, durability, performance or use of "your product"; and b. The providing of or failure to provide warnings or instructions. "Your product" does not include vending ma- chines or other property rented to or lo- cated for the use of others but not sold. 21. "Your work" means: a. Work or operations performed by you or on your behalf; and b. Materials, parts or equipment furnished in connection with such work or opera- tions. "Your work" includes: a. Warranties or representations made at any time with respect to the fitness, quality, durability, performance or use of "your work"; and b. The providing of or failure to provide warnings or instructions. SECTION VI - NUCLEAR ENERGY LIABILITY EXCLUSION The insurance does not apply: Irdides ccpyristled material of inararra Swims Office. Inc, vith its Femissicn Ccpyd" Ins.ranoe Services Office. Inc. 1997 Ccptrigt, 1999. Miryta d Casualty Cc rprny, as to addtitnal text and navisms Page 16 of 17 From: Stefania Baca At: Vanorsdale Insurance Services FaxID: To: National City - Attn: Jenny Date: 9/2/2008 01:18 PM Page: 25 of 25 1. Under any Liability Coverage, to "bodily in- jury' or "property damage": a. With respect to which an insured under the policy is also an insured under a nuclear energy liability policy issued by Nuclear Energy Liability Insurance As- sociation, Mutual Atomic Energy Liabil- ity Underwriters, Nuclear Insurance As- sociation of Canada or any of their successors, or would be an insured under any such policy but for its termination upon exhaustion of its limits of liability; or b. Resulting from the "hazardous proper- ties" of "nuclear material" and with re- spect to which (11 any person or orga- nization is required to maintain financial protection pursuant to the Atomic En- ergy Act of 1954, or any law amenda- tory thereof, or (2) the insured is, or had this policy not been issued would be, entitled to indemnity from the United States of America, or any agency thereof, under any agreement entered into by the United States of America, or any agency thereof, with any person or organization. 2. Under any Medical Expenses coverage, to expenses incurred with respect to "bodily injury" resulting from the "hazardous prop- erties" of "nuclear materiar and arising out of the operation of a "nuclear facility" by any person or organization. 3. Under any Liability Coverage, to "bodily in- jury" or "property damage" resulting from the "hazardous properties" of "nuclear ma- terial", if: a. The "nuclear material" (1) is at any nuclear facility owned by, or operated by or on behalf of, an insured, or (2) has been discharged or dispersed therefrom; b. The "nuclear material" is contained in "spent fuel" or "waste" at any time pos- sessed, handled, used, processed, stored, transported or disposed of by or on behalf of any insured; or c. The "bodily injury" or "property dam- age" arises out of the furnishing by an insured of services, materials, parts or equipment in connection with the plan- ning, construction, maintenance, opera- tion or use of any "nuclear facility", but if such facility is located within the United States of America, its territories or possessions or Canada, this exclusion (c) applies only to "property damage" to 952001 Ed. 4-99 such "nuclear facility" and any property thereat. As used in this exclusion: "Hazardous properties" include radioactive, toxic or explosive properties; "Nuclear material" means "source material," "special nuclear material," and "by-product material," which have the meanings given them in the Atomic Energy Act of 1954 or in any law amendatory thereof; "Spent fuel" means any fuel element or fuel component, solid or liquid, which has been used or exposed to radiation in a nuclear reactor"; "Waste" means any waste material (1) con- taining "by-product material" other than the tailings or wastes produced by the extrac- tion or concentration of uranium or thorium from any ore processed primarily for its "source material" content, and (2) resulting from the operation by any person or orga- nization of any "nuclear facility" included under the first two paragraphs of the definition of "nuclear facility." "Nuclear facility" means: a. Any "nuclear reactor"; b. Any equipment or device designed or used for (1) separating the isotopes of uranium or plutonium, (2) processing or utilizing "spent fuel", or (3) handling, pro- cessing or packaging "waste"; c. Any equipment or device used for the processing, fabricating or alloying of "special nuclear material" if at any time the total amount of such material in the custody of the insured at the premises where such equipment or device is lo- cated consists of or contains more than 25 grams of plutonium or uranium 233 or any combination thereof, or more than 250 grams of uranium 235; d. Any structure, basin, excavation, pre- mises or place prepared or used for the storage or disposal of "waste'; and includes the site on which any of the foregoing is located, all operations con- ducted on such site and all premises used for such operations; "Nuclear reactor" means any apparatus de- signed or used to sustain nuclear fission in a self-supporting chain reaction or to con- tain a critical mass of fissionable material; "Property damage" includes all forms of ra- dioactive contamination of property. Includes copyrighted r,tatrrial of Inexarcv Services Office Inc, wth irs perrissirn Crpyright Ineranc* Services Office, Irc, 1997 Copyrign 1999, Maryland Casualty Company. as to addacrel text and revisions Page 17 of 17 i{)Sltra.nceq!ems1,i� CITY OF NATIONAL CITY BUSINESS LICENSE APPLICATION 1243 National City Blvd., National City, CA 91950 PPLEASE TYPE OR PRINT. LICENSE WILL NOT BE ISSUED IF REQUIRED INFORMATION IS INCOMPLETE ENCLOSE PAYMENT WITH APPLICATION. MAKE CHECKS PAYABLE TO THE CITY OF NATIONAL CITY. A. GENERAL INFORMATION BUSINESS ``NAME (D.B.A. OR INDIVIDUAL NAME) • LVCAL BUSINESS PH.PNE .. • :e • TE I •S (IF DIFFERENT FROM D.B.A.) iICQ " ►.1a1iT A W. ck'9 OCATION IN NATIONAL CITY NUMBER QIR STREET NAME t /► R)OM/sUITE ND. 1�AILING ADDRESS AND/OR P.O. BOX/OR P.O. BOX NUMBER OIR" to Q6.)q. p.O. BOX NO, R0014/Sga PHONE NUMBER AT MAILING ADDRESS. INCLUDE AREA CODE soT) a CASHIER'S COPY D. TRANSACTION "TYPE — aloft ANDf 9MPLfTIIFAPPLICABLE BUS # LIC ALL LICENSES EXPIRE DECEMBER 31 RENEWALS ARE DUE BY FEBRUARY 28 City of National City BUSINESS LICENSE DIVISION (619) 336-4330 TAXES $ MISC $ PENALTY $ TOTAL $ jl NEW BUSINESS IN NATIONAL 4Tiy*ySINE,4$ WIU. OPEN/Op i p O D OWNERSHIP CHANGE: PREVIOUS BUSINESS NAME. C. DESCRIPTION OF BUSINESS CHECK ONE: A. L. WHOLESALE B. C' RETAIL C. € SERVICE D. ❑ RENTAL UNITS, # OF UNITS E. 1 I MANUFACTURING F. 11 CONTRACTOR STATE LICENSE #/ HEALTH PERMIT/ ABC #/ DRIVERS LLC. # STATE RESALE # FEDERAL j1D #/ SOCIAL SEC. # ER Demef BUSINESS RJL LY - INCLU PRINCIPAL PRO UCT OR SERVICE nK+ rim 414411. t ►er<� rr; o rensA._ NUMBER OF BUSINESS VEHICLES OPERATING IN NATIONAL CITY WITH YOUR COMPANY ADVERTISING (LOGO) ON THEM $21 D. OWNERSHIP INFORMATION CHECK ONE: 1. ISINGLE PROPRIETORSHIP 2. I I PARTNERSHIP C.XCORPORATION LISI- OWNER/PART NERS/CORPORATE OFFICERS LAStNAME.41 F1R o _kJ MI TITLE I tki" ` QR.0 QNA . `oas., HOME A1Lti i}. CITY -1 k CODE c'R 2[PiLog E FIRST A MI TITLE HOME PHONE �4 ADrt im l'tEl L�;l ('.rt E LIST IN ORDER OF PRIORITY AND PROXIMITY TO BUSINESS THE PERSON TQ BE CONTACTED AT NIGHT IN CASE OF BREAK IN OR FIRE NAME I. TITLE TELEPHONE i 2. DO YOU HAVE A BURGLAR ALARM? 1. 11 NO 2. YES: IF YES 3. SILENT A. AUDIBLE NAME OF ALARM COMPANY PHONE # BUS* uc # -OFFICE USE ONLY--------- ----------- ---------- ------- ------ ----------- ----------- BUSINESS CODE CATEGORY DECALS V G B/C - H/0 PEND ON FILE: B/C - H/O AUDITED BY DATE H/0 PD N/A B/C - H/0 PEND P L A DATE ENTERED BY L - A ALE_ C C-A/P DATE B/L SENT INT BUSINESS LICENSE TAX RATE SCHEDULES SCHEDULE I. BUSINESSES NOT CHARGED ON GROSS RECEIPTS (ENTER TOTAL ON LINE 11 BELOWI CONSTRUCTION ONLY A Type 'C' Sub-Contractor-Outof-Town _B. Type 'A' or' B' contraclor-Oulol-Town S 135,00 $ 200.00 C. Adult only movie theater D. Adult only boos store _ E. Amusement arcade _- F. Bowling alley G. Dancehall S 535.00 $ 535.00 $ 265.03 $ 265.03 S 805.00 H, Fortune tolling ..__ I. Bingo J. Pawn broker K Swap meet L. Mobile search light advertising _ M,Mobile Amusernen: vehicle _ N. 2nd location in Naaona. City SCHEDULE II - BUSINESSES CHARGED ON GROSS RECEIPTS TAXABLE GROSS RECEIPTS 0-19,999 20,000-49,999 50,000-99,999 100,000-199,999 200,000-299,999 300,000-399,999 400,000-499,999 500,000-599,999 600,000-609,999 700,000-799,999 800,000-899,999 900,000-999,999 1,000,000-1,099,999 1,100,000-1,199,999 1,200,000-1,299,999 1.300,000-1,399,999 1,400,000-1,499,990 1,500,000-1,999,999 2,000,000-2,499,999 2,500,000-2,999,999 3,000,000-3,499,999 3.500,000-3,999,999 4,000,000-4,999,999 5000,000-5,999,999 6.000,000-7,999,999 8, 000, 000-10, 9 99, 9 99 11, 000, 000-13,999, 999 14 , 000, 000-15, 999, 999 16, 000, 000-17, 999, 999 18,000, 000-19, 999, 999 20,000,000-21,999,999 22,000,000 - AND ABOVE $ 265.00 _ Q, Registered Not -for -profit $ 50,00 P, Fee exempt $ 400.00 0. Warehaue incidental to bus ness S 6,000,00 (Business must be in National Cry ) S 135.00 S. Auctioneer $ 65.00 1, Out-of-lown vendor 165.00 per vehicle $ 20,00 $65.00 x 1 vehicles = 2. Retail'ood & beverage vendors 5200 per vehicle $200.00 x vehicles = 1 2 3 50 50 50 50 50 50 50 50 52 50 50 56 50 64 80 60 81 101 73 97 121 84 113 141 96 128 160 107 143 179 118 157 197 129 172 215 139 185 232 149 199 248 159 212 265 168 224 280 177 236 296 222 296 370 266 355 444 310 413 516 352 459 586 392 523 653 470 627 783 545 727 908 688 918 1,147 894 1,192 1,490 1,091 1,455 1,819 1.217 1,623 2,029 1,343 1,791 2,238 1469 1,958 2,448 1,594 2,126 2.657 1,720 2,294 2,867 BUSINESS CLASSIFICATION 4 50 50 60 70 96 121 145 169 192 214 236 257 278 298 318 336 355 444 533 619 703 784 940 1,090 1,376 1,788 2,183 2,434 2,686 2,937 3,189 3,440 BUSINESS LICENSE TAX CALCULATION A. BASIC TAX (CHECK ONE1 1. _ FOR CLASSIFICATION 1-6, FIRST LICENSE $50.00., . .. ............ .......... ,.,..........., .,. ...., 2._ FOR CLASSIFICATION 1-6 ONLY, SECOND YEAR RENEWAL 3. EXACT GROSS RECEIPTS FROM PREVIOUS YEAR $ 4. TAX (FROM RATE SCHEDULE II) $ X 2 = 5. LESS PRIOR YEAR MINIMUM DEPOSIT $ -50.00 6. NET TA)(- 7. _ FOR CLASSIFICATION 1-6 ONLY, RENEWALS AFTER SECOND YEAR 8. EXACT GROSS RECEIPTS FROM PREVIOUS YEAR $ 9.TAX (FROM RATE SCHEDULE II) ..........................................,.,....... ..... ............... ...... ....,. ..:......... 10. , FOR BUSINESSES NOT CHARGED ON GROSS RECEIPTS 11. FLAT TAX (FROM RATE SCHEDULE I) ........ ....................................... B. OTHER FEES ICHECK IF APPLICABLEI 12. _ CHANGE OF LOCATION (CALL FOR AMOUNT) 13. _ CHANGE OF BUSINESS NAME (CALL FOR AMOUNT) 14. _ VIDEO GAMES-55.00 PER MACHINE X MACHINES- 15._ MISCELLANEOUS 16. SUBTOTAL C. PENALTY IF PLED AFTER FEBRUARY 28th 17. _ MARCH 1 . through MARCH .3 t'''ADD 20% : ......... 18. APRIL 1" through APRIL 30" ADD 40% - 19. _ MAY 1" through MAY 31.4 ADD 60% 20. _ JUNE 1" through JUNE 30'h ADD 80% 21._AFTERJUNE3O8ADD 100% 22. TOTAL TAX DUE.. PLEASE ENCLOSE PAYMENT WITH APPLICATION CHECKS SHOULD BE MADE PAYABLE TO THE CITY OF NATIONAL CITY 5 50 60 74 81 112 141 169 197 224 250 275 300 324 348 371 392 414 518 621 723 820 915 1,096 1,271 1.606 2,086 2,547 2,840 3,133 3,427 3,720 4,014 wC N/C N/C S 135,00 6 50 80 86 93 128 161 194 225 255 285 315 343 371 396 423 449 473 592 710 826 938 1045 1253 1453 1835 2384 2,910 3,246 3,581 3,916 4,252 4,587 coS (4),S c D. SALES OR USE TAX MAY APPLY TO YOUR BUSINESS ASCTIVITIES. YOU MAY SEEK GRITEN ADVICE REGARDING THE APPLICATION OF TAX TO YOUR PARTICULAR BUSINESS BY WRITING TO THE NEAREST STATE BOARD OF EQUALIZATION OFFICE. SIG E. I DECLARE UND ENA PERJURY THAT THE STATEMENTS HEREIN ARE TRUE AND CORRECT TO THE BES 1 OF MY KNOWLEDGE AND BELIEF BUSINESS NAME Mg TURE-- TITLE t,-GU . DATE r't taalaT • NBS City of National City Check NU:rsber: bate: `7/28/2908 Check Amt: Tran # Invoice Type Date Reference Balance Discount 10728 Bus. License Invoice 07/28/08 $65..00 $0.00 17598 17590 $65.00 Pay Amount $65.00 NBS 32605 TEMECULA PARKWAY STE 100 TEMECULA, CA 92592 (951) 296-1997 Exactly Sixty-five and no / 100 Dollar's PAY City of National City MISSION OAKS NATIONAL BANK TEMECULA, CA 92590 90-4316-1222 9/g58/2008 17598 0 City of National City Office of the City Clerk 1243 National City Boulevard, National City, CA 91950-4397 Michael R. Dalla, CMC - City Clerk (619) 336-4228 Fax: (619) 336-4229 September 25, 2008 Mr. Pablo Perez NBS Local Government Services 32605 Temecula Parkway, Suite 100 Temecula, CA 92592 Dear Mr. Perez, On August 4, 2008, an Agreement was entered between the Community Development Commission of the City of National City and NBS Local Government Solutions. We are enclosing for your records a fully executed original agreement. Sincerely, ,a Michael R. Da a, CMC City Clerk Enclosure cc: Community Development Commission ® Rerpk led Pape,