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during this current review process, only minor modifications (mentioned below) are being recommended. Working with Chandler Asset Management, the City’s portfolio manager, staff is proposing the following changes to the Investment Policy:
Added that the purchase of securities with a forward settlement of more than 45 days is prohibited per SB 1489
Expanded the definition of “Maturity” in the Glossary of Investment Terms Attachment 3 reflects the changes in a strike-through version of the policy. Attachment 4 is the final version.
Subsequent to the adoption of the proposed policy, Staff intends to submit the Investment Policy to CMTA for certification.
Additionally, the City Council may elect to delegate its authority to invest and reinvest City funds to the City Treasurer for up to one year pursuant to California Government Code Section 53607.
Staff recommends that the City Council delegate its authority to invest and reinvest public funds, and to sell or exchange securities so purchased, to the City Treasurer for one year or until earlier revoked by the City Council.
ENVIRONMENTAL DETERMINATION:
Not a project as defined by CEQA.
FISCAL IMPACT: N/A
ATTACHMENTS:
ATT 1 – Resolution 2023-62 Amending and Adopting the Investment Policy ATT 2 – Resolution SA-23-86 Amending and Adopting the Investment Policy ATT 3 – Investment Policy Effective August 16, 2023 – STRIKE-THROUGH ATT 4 – Investment Policy Effective August 16, 2023
ATTACHMENT 1
RESOLUTION NO. 2023-62
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF IMPERIAL BEACH, CALIFORNIA,
APPROVING AND ADOPTING THE CITY OF IMPERIAL BEACH INVESTMENT POLICY AND
DELEGATING TO THE CITY TREASURER THE AUTHORITY TO INVEST AND REINVEST THE CITY’S FINANCIAL ASSETS
WHEREAS, a comprehensive investment policy provides a level of accountability for investment officials and promotes greater public trust in the investment process; and WHEREAS, the policy for the investment of all City financial assets seeks to satisfy the primary objective of safety of principal, with the subsequent goals of liquidity and yield; and WHEREAS, an investment policy provides a municipality with direction for how investments shall be placed within the specific securities as outlined by type and maturity sector in the policy; and
WHEREAS, the authority governing investments for municipal governments is set forth in the California Government Code, Sections 53600 et seq.; and WHEREAS, annual investment policy review is a recommended best practice by the Government Finance Officers Association and the Association of Public Treasurers; and WHEREAS, California Government Code Sections 53646(a)(2) states that the Treasurer of any local agency may annually render to the legislative body an investment policy or any changes to the investment policy at a public meeting; and WHEREAS, the California State Treasurer publishes Local Agency Investment Guidelines intended to aid local agencies in implementing laws pertaining to the investment of public funds; and
WHEREAS, at the Council meeting of September 21, 2022, the City Council adopted Resolution 2022-68 approving and adopting amendments to the City’s Investment Policy.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Imperial Beach as follows:
1. That the attached “Exhibit A” Investment Policy for Fiscal Year 2023-24 is hereby reviewed, considered, approved, and adopted.
2. Delegate its authority to invest and reinvest City funds to the Finance Director and Chief Administrative Officer acting in the capacity of the City Treasurer for up to one year pursuant to California Government Code section 53607.
Resolution No. 2023-62
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Imperial Beach at its meeting held on the 16th day of August 2023, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
PALOMA AGUIRRE, MAYOR
ATTEST:
JACQUELINE M. KELLY, MMC
CITY CLERK
ATTACHMENT 2
RESOLUTION NO. SA-23-86
A RESOLUTION OF THE IMPERIAL BEACH REDEVELOPMENT AGENCY SUCCESSOR
AGENCY APPROVING AND ADOPTING THE CITY OF IMPERIAL BEACH INVESTMENT
POLICY AND DELEGATING TO THE TREASURER OF THE IMPERIAL BEACH
REDEVELOPMENT AGENCY SUCCESSOR AGENCY THE AUTHORITY TO INVEST AND REINVEST THE AGENCY’S FINANCIAL ASSETS
WHEREAS, a comprehensive investment policy provides a level of accountability for investment officials and promotes greater public trust in the investment process; and WHEREAS, the policy for the investment of all Imperial Beach Redevelopment Agency Successor Agency (Successor Agency) financial assets seeks to satisfy the primary objective of safety of principal, with the subsequent goals of liquidity and yield; and WHEREAS, an investment policy provides the Successor Agency with direction for how investments shall be placed within the specific securities as outlined by type and maturity sector in the policy; and
WHEREAS, the authority governing investments for government agencies is set forth in the California Government Code, Sections 53600 et seq.; and WHEREAS, annual investment policy review is a recommended best practice by the Government Finance Officers Association and the Association of Public Treasurers; and WHEREAS, California Government Code Sections 53646(a)(2) states that the Treasurer of any local agency may annually render to the legislative body an investment policy or any changes to the investment policy at a public meeting; and WHEREAS, the California State Treasurer publishes Local Agency Investment Guidelines intended to aid local agencies in implementing laws pertaining to the investment of public funds; and
WHEREAS, at the Successor Agency meeting of September 21, 2022, the Board of Directors adopted Resolution SA 22-83 approving and adopting amendments to the Successor Agency’s Investment Policy.
NOW, THEREFORE, BE IT RESOLVED by the Imperial Beach Redevelopment Agency Successor Agency as follows:
1. That the attached “Exhibit A” Investment Policy for Fiscal Year 2023-24 is hereby reviewed, considered, approved, and adopted.
2. Delegation of authority to invest and reinvest Agency funds to the Deputy Director acting as the Treasurer of the Agency for up to one year pursuant to California Government Code section 53607
Resolution No. SA-23-86
PASSED, APPROVED, AND ADOPTED by the Imperial Beach Redevelopment Agency Successor Agency at its meeting held on the 16th day of August, 2023, by the following vote:
AYES: BOARDMEMBERS:
NOES: BOARDMEMBERS:
ABSENT: BOARDMEMBERS:
PALOMA AGUIRRE, CHAIR
ATTEST:
JACQUELINE M. KELLY, MMC
SECRETARY
ATTACHMENT 3
RES 2022-682023-62 EXHIBIT A
RES SA-22-8323-86 EXHIBIT A
City of Imperial Beach
Investment Policy
Fiscal Year 20232/20243
Amended and Adopted by Resolution No. 2022-682023-62 & SA-22-8323-86
CITY OF IMPERIAL BEACH, CALIFORNIA
INVESTMENT POLICY
Fiscal Year 20232/20243
I. INTRODUCTION
This Investment Policy is intended to identify various policies and procedures that will foster a prudent and systematic investment program designed to seek the City of Imperial Beach’s objectives of safety, liquidity and yield through a diversified investment portfolio. This policy also serves to organize and formalize the City’s investment-related activities, while complying with all applicable statutes governing the investment of public funds.
This Investment Policy was endorsed and adopted by the City’s governing body and is effective as of AugustSeptember 1621, 20232. This Investment Policy replaces any previous Investment Policy or Investment Procedures of the City.
II. SCOPE
This Investment Policy applies to all the City’s financial assets and investment activities with the following exceptions:
Proceeds of debt issuance shall be invested in accordance with the City’s general investment philosophy as set forth in this policy; however, such proceeds are invested in accordance with permitted investment provisions of their specific bond indentures.
Pooling of Funds: Except for cash in certain restricted and special funds, the City will consolidate cash and reserve balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles.
Specific Investment Accounts: From time to time, the City Council may authorize an investment in other specific investments, or the management of bond proceeds issued by the City of Imperial Beach. This may include deposits that are set aside for future needs of a long-term nature and may be invested in longer-term securities as allowed by the Government Code.
Inter-fund transfers are not covered by this policy.
Amended and Adopted by Resolution No. 2022-682023-62 & SA-22-8323-86
III. PRUDENCE
Pursuant to California Government Code, Section 53600.3, all persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the Prudent Investor Standard:
“…all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the Agency, that a prudent person acting in a like capacity and familiar with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the Agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.” The Finance Director, Chief Administrative Officer and other authorized persons responsible for managing City funds acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes provided that the Finance Director, Chief Administrative Officer or other authorized persons acted in good faith. Deviations from expectations of a security’s credit or market risk should be reported to the governing body in a timely fashion and appropriate action should be taken to control adverse developments.
IV.OBJECTIVES
The authority governing investments for municipal governments is set forth in Government Code sections 53600 et seq. The overriding objectives of the investment program are to preserve principal, provide sufficient liquidity, and manage investment risks.
1. Safety: Safety of principal is the foremost objective of the investment program. Investments will be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk.
2. Liquidity: The investment portfolio will remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated.
Amended and Adopted by Resolution No. 2022-682023-62 & SA-22-8323-86
3. Yield: The investment portfolio will be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints for safety and liquidity needs.
V. ETHICS AND CONFLICTS OF INTEREST
All participants in the investment process shall act as fiduciaries of the public trust. As the employees assigned to implement the investment strategy, the Finance Director and Chief Administrative Officer, as identified by Resolution of the City Council, shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.
The Finance Director and Chief Administrative Officer shall disclose any material financial interests in financial institutions that conduct business with the City, and they shall further disclose any personal financial/investment positions that could be affected by the performance of the City’s operations and functions or by the management of the City’s investment program.
Ethics and Conflicts of Interest: Officers and employees involved in the investment process shall refrain from personal business activity that conflicts with proper execution of the investment program or impair their ability to make impartial investment decisions. Additionally, the Finance Director, Chief Administrative Officer and other members of the management Investment Advisory Committee, as identified herein, are required to annually file applicable financial disclosures as required by the Fair Political Practices Commission (FPPC).
DELEGATION OF AUTHORITY
A. Authority to manage the City’s investment program is derived from California Government Code Sections 53600 et seq. The governing body is responsible for the City’s cash management, including the administration of this Investment Policy. Management responsibility for the cash management of City funds is hereby delegated to the Finance Director and Chief Administrative Officer.
The Finance Director and Chief Administrative Officer will be responsible for all transactions undertaken and will establish a system of procedures and controls to regulate the activities of subordinate employees.
B. The City may engage the services of one or more external investment managers to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives. Such external managers may be granted discretion to purchase and sell investment securities in
Amended and Adopted by Resolution No. 2022-682023-62 & SA-22-8323-86
accordance with this Investment Policy. Such managers must be registered under the Investment Advisers Act of 1940.
An Investment Committee consisting of the City Manager/Executive Director, Finance Director and Chief Administrative Officer shall be established to provide general oversight and direction concerning the policy related to management of the City's investment portfolio. Assigned Finance Department staff members may serve in a staff and advisory capacity, although are not members of the Committee.
VI. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS A list will be maintained of financial institutions and depositories authorized to provide investment services. In addition, a list will be maintained of approved security broker/dealers selected by conducting a process of due diligence described in the investment procedures manual. These may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15C3-1 (uniform net capital rule).
A. The Finance Director or Chief Administrative Officer will determine which financial institutions are authorized to provide investment services to the City. Institutions eligible to transact investment business with the City include:
1. Institutions licensed by the state as a broker-dealer.
2. Institutions that are members of a federally regulated securities exchange.
3. Primary government dealers as designated by the Federal Reserve Bank and non-primary government dealers;
4. Nationally or state-chartered banks;
5. The Federal Reserve Bank; and,
6. Direct issuers of securities eligible for purchase.
B. Selection of financial institutions and broker/dealers authorized to engage in transactions with the City will be at the sole discretion of the City.
C. All financial institutions which desire to become qualified bidders for investment transactions (and which are not dealing only with the investment adviser) must supply the Finance Director or Chief Administrative Officer with a statement certifying that the institution has reviewed the California Government Code Section 53600 et seq. and the City’s Investment Policy.
Amended and Adopted by Resolution No. 2022-682023-62 & SA-22-8323-86
The Finance Director or Chief Administrative Officer will conduct an annual review of the financial condition and registrations of such qualified bidders.
D. Selection of broker/dealers used by an external investment adviser retained by the City will be at the sole discretion of the investment adviser.
E. Public deposits will be made only in qualified public depositories as established by State law. Deposits will be insured by the Federal Deposit Insurance Corporation, or, to the extent the amount exceeds the insured maximum, will be collateralized in accordance with State law.
F. Collateralization:
1. Certificates of Deposit: The City shall require any commercial bank or savings and loan association to deposit eligible securities with an agency of a depository approved by the State Banking Department to secure any uninsured portion of a non-negotiable Certificate of Deposit.
The value of eligible securities as defined pursuant to Government Code Section 53651, pledged against a Certificate of Deposit shall be equal to 150% of the face value of the CD if the securities are classified as mortgages and 110% of the face value of the CD for all other classes of security.
2. Repurchase Agreements: The City requires that repurchase agreements be collateralized only by securities authorized by Government Code:
The securities which collateralize the repurchase agreement shall be priced at Market Value, including any Accrued Interest plus a margin.
The Market Value of the securities that underlie a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities.
Financial Institutions shall mark the value of the collateral to market at least monthly and increase or decrease the collateral to satisfy the ratio requirement described above.
The City shall receive monthly statements of collateral.
VII. DELIVERY, SAFEKEEPING AND CUSTODY, AND COMPETITIVE TRANSACTIONS A. Delivery-versus-payment: Settlement of all investment transactions will be completed using standard delivery-vs.-payment procedures.
B. Third-party safekeeping: To protect against potential losses by collapse of individual securities dealers, and to enhance access to securities, interest payments and maturity proceeds, all securities owned by the City will be held in safekeeping by a third-party bank custodian, acting
Amended and Adopted by Resolution No. 2022-682023-62 & SA-22-8323-86
as agent for the City under the terms of a custody agreement executed by the bank and the City. All investment transactions will require a safekeeping receipt or acknowledgement generated from the trade. A monthly report will be received by the City from the custodian listing all securities held in safekeeping with current market data and other relevant information.
The only exceptions to the foregoing shall be depository accounts and securities purchases made with: (i) local government investment pools; (ii) time certificates of deposit, and (iii) mutual funds and money market mutual funds, since these securities are not deliverable.
C. Competitive transactions: All investment transactions will be conducted on a competitive basis which can be executed through a bidding process involving at least three separate brokers/financial institutions or through use of a nationally recognized trading platform where possible.
The only exceptions to the foregoing shall be depository accounts and securities purchases made with LAIF, LGIPs, time deposits, mutual funds, and money market mutual funds, since these securities are not deliverable.
VIII. AUTHORIZED AND SUITABLE INVESTMENTS
The City’s investments are governed by Government Code, Sections 53600 et seq. Within the investments permitted by the Government Code, the City seeks to further restrict eligible investments to the guidelines listed below.
In the event an apparent discrepancy is found between this Policy and the Government Code, the more restrictive parameters will take precedence.
Percentage holding limits and credit rating minimums listed in this section apply at the time the security is purchased.
Any investment currently held at the time the Policy is adopted which does not meet the new Policy guidelines can be held until maturity and shall be exempt from the current Policy. At the time of the investment’s maturity or liquidation such funds shall be reinvested only as provided in the most current Policy.
1. U.S. Treasury and other government obligations for which the full faith and credit of the United States are pledged for the payment of principal and interest. There are no limits on the dollar amount or percentage that the City may invest in U.S. Treasuries.
The maximum maturity is five years.
Amended and Adopted by Resolution No. 2022-682023-62 & SA-22-8323-86
2. Federal Agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. There are no limits on the dollar amount or percentage that the City may invest in government-sponsored enterprises.
The maximum maturity is five years;
No more than 20% of the total portfolio may be invested in callable federal agency securities.
3. Municipal Securities. These include obligations of the City, the State of California, any local agency within the state of California, and registered notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, and, provided that:
Long-term obligations are rated in the “A” category or higher by at least one nationally recognized statistical rating organization (NRSRO);
The maximum maturity is five years;
No more than 5% of the total portfolio may be invested in any single municipal securities issuer;
No more than 30% of the portfolio may be invested in Municipal Securities.
4. Corporate Medium-Term Notes (MTNs) provided that:
Such notes have a maximum maturity of five years;
Are issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States;
Are rated in the “A” category or better by at least one NRSRO; No more than 30% of the total portfolio may be invested in corporate medium-term notes; and,
Amended and Adopted by Resolution No. 2022-682023-62 & SA-22-8323-86
No more than 5% of the total portfolio may be invested in any single issuer of corporate medium-term notes.
5. Mortgage Pass-Through Securities, Collateralized Mortgage Obligations, and Asset-Backed Securities from issuers not defined in sections 1 and 2 of the Authorized and Suitable Investments Section of this policy, provided that:
Such securities have a maximum stated final maturity of five years; Are rated in the category of “AA” or its equivalent or better by a NRSRO;
Purchase of securities authorized by this subdivision may not exceed 20% of the portfolio; and,
No more than 5% of the total portfolio is invested in any single issuer of Asset-Backed or Commercial Mortgage Securities.
6. Federally Insured Time Deposits (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that:
The amount per institution is limited to the maximum covered under federal insurance;
No more than 20% of the portfolio will be invested in a combination of federally insured and collateralized time deposits;
The maturity of such deposits does not exceed 5 years; and, No more than 5% of the total portfolio may be invested in any single issuer of federally insured time deposits.
7. Time Deposits (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions in excess of insured amounts which are fully collateralized with securities in accordance with California law, provided that:
No more than 20% of the portfolio will be invested in a combination of federally insured and collateralized time deposits;
The maturity of such deposits does not exceed 5 years; and, No more than 5% of the total portfolio may be invested in any single issuer of time deposits.
Amended and Adopted by Resolution No. 2022-682023-62 & SA-22-8323-86
8. Certificate of Deposit Placement Service (CDARS) provided that:
No more than 30% of the total portfolio may be invested in a combination of certificates of deposit including CDARS; and, The maturity of CDARS deposits does not exceed five years.
9. Negotiable Certificates of Deposit (NCDs) provided that:
They are issued by institutions which have long-term obligations which are rated in the “A” category or higher by at least one nationally recognized statistical rating organization; or have short term debt obligations rated “A-1” or higher, or the equivalent, by at least one NRSRO;
The maturity does not exceed five years;
No more than 30% of the total portfolio may be invested in NCDs; and,
No more than 5% of the total portfolio may be invested in any single issuer of NCDs.
10.Banker’s Acceptances provided that:
They are issued by institutions with short term debt obligations rated “A-1” or higher, or the equivalent, by at least one NRSRO; and have long-term debt obligations which are rated in the “A” category or higher by at least one NRSRO;
The maturity does not exceed 180 days;
No more than 40% of the total portfolio may be invested in banker’s acceptances; and,
No more than 5% of the total portfolio may be invested in any single issuer of banker’s acceptances.
11.Commercial Paper provided that the securities are issued by an entity that meets all of the following conditions in either paragraph a or b and other requirements specified below:
a. SECURITIES issued by corporations:
(i) A corporation organized and operating in the United States with assets more than $500 million.
Amended and Adopted by Resolution No. 2022-682023-62 & SA-22-8323-86
(ii) The securities are rated “A-1” or its equivalent or better by at least one NRSRO.
(iii) If the issuer has other debt obligations, they must be rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
b. SECURITIES issued by other entities:
(i) The issuer is organized within the United States as a special purpose corporation, trust, or limited liability company. (ii) The securities must have program-wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond.
(iii) The securities are rated “A-1” or its equivalent or better by at least one NRSRO.
No more than 10% of the outstanding commercial paper of any single issuer.
No more than 25% of the total portfolio is invested in commercial paper.
No more than 5% of the total portfolio is invested in any single commercial paper issuer.
The maturity does not exceed 270 days from the date of purchase.
12.Repurchase Agreements collateralized with securities authorized pursuant to Government Code that are maintained at a level of at least 102% of the market value of the repurchase agreements, provided that:
The maximum maturity of repurchase agreements will be 1 year; There is no limit to the amount to be invested in repurchase agreements;
Securities used as collateral for repurchase agreements will be delivered to the City’s custodian bank; and,
The repurchase agreements are the subject of a master repurchase agreement between the City and the provider of the repurchase agreement. The master repurchase agreement will be substantially in the form developed by the Securities Industry and Financial Markets Association (SIFMA).
Amended and Adopted by Resolution No. 2022-682023-62 & SA-22-8323-86
13.State of California Local City Investment Fund (LAIF), provided that:
The City may invest up to the maximum permitted amount in LAIF; and,
LAIF’s investments in instruments prohibited by or not specified in the City’s policy do not exclude it from the City’s list of allowable investments, provided that the fund’s reports allow the Finance Director or Chief Administrative Officer to adequately judge the risk inherent in LAIF’s portfolio.
14.Local Government Investment Pools
No more than 10% per issuer limitation for Local Government Investment Pools other than LAIF.
15.Mutual Funds and Money Market Mutual Funds that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940, provided that:
Mutual Funds that invest in the securities and obligations as authorized under California Government Code Section 53601 (a) to (k) and (m) to (q) inclusive and that meet either of the following criteria:
1. Attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs; or,
2. Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience investing in the securities and obligations authorized by California Government Code Section 53601 and with assets under management in excess of $500 million;
No more than 10% of the total portfolio may be invested in shares of any one mutual fund.
Money Market Mutual Funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and issued by diversified management companies and meet either of the following criteria:
1. Have attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs.
Amended and Adopted by Resolution No. 2022-682023-62 & SA-22-8323-86
2. Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds with assets under management in excess of $500 million.
No more than 20% per fund of the total portfolio may be invested in the shares of any one money market mutual fund.
No more than 20% of the total portfolio may be invested in these securities.
16. Supranational Securities, provided that:
a. Issues are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank.
b. The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
c. No more than 30% of the total portfolio may be invested in these securities.
d. No more than 10% of the portfolio may be invested in a single Supranational issuer.
e. The maximum maturity does not exceed five years.
Any State of California legislative action that further restricts allowable maturities, investment type or percentage allocations, shall be incorporated into this Investment Policy and supersede any and all previous applicable provisions inconsistent with such legislative action.
IX. MAXIMUM MATURITIES
To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities. No investment will be made in any security with a remaining maturity in excess of five years from the date of trade settlement, unless the City Council has by resolution granted express authority to make such an investment.
X. PORTFOLIO RISK MANAGEMENT
A. Prohibited Investment Vehicles and Practices
1. State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options.
Amended and Adopted by Resolution No. 2022-682023-62 & SA-22-8323-86
2. In accordance with Government Code Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited.
3. Investment in any security that could result in a zero-interest accrual if held to maturity is prohibited. However, under a provision sunsetting on January 1, 2026, securities backed by the U.S. Government that could result in a zero- or negative interest accrual if held to maturity are permitted.
4. Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.
5. Purchasing or selling securities on margin is prohibited.
6. The use of reverse repurchases agreements, securities lending or any other form of borrowing or leverage is prohibited.
7. The purchase of foreign currency denominated securities is prohibited.
7.8. The purchase of a security with a forward settlement exceeding 45 days from the time of the investment is prohibited.
B. Mitigating Credit Risk in the Portfolio
Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies:
1. The diversification requirements included in Section VIII are designed to mitigate credit risk in the portfolio;
2. No more than 5% of the total portfolio may be invested in securities of any single issuer, other than the US Government, its agencies and enterprises, supranationals, money market funds, local government investment pools or unless otherwise specified in this investment policy;
3. The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to improve the quality, liquidity or yield of the portfolio in response to market conditions or City’s risk preferences; and,
4. If securities owned by the City are downgraded to a level below the quality required by this Investment Policy, making the security ineligible for additional purchases, the following steps will be taken:
Amended and Adopted by Resolution No. 2022-682023-62 & SA-22-8323-86
a. Any actions taken related to the downgrade by the investment manager will be communicated to the Finance Director or Chief Administrative Officer in a timely manner.
b. If a decision is made to retain a downgraded security in the portfolio, the credit situation will be monitored and reported monthly to the governing board.
C. Mitigating Market Risk in the Portfolio
Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City recognizes that, over time, longer-term portfolios have the potential to achieve higher returns. On the other hand, longer-term portfolios have higher volatility of return. The City will mitigate market risk by providing adequate liquidity for short-term cash needs, and by making longer-term investments only with funds that are not needed for current cashflow purposes.
The City further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City, therefore, adopts the following strategies to control and mitigate its exposure to market risk:
1. The City will maintain a minimum of six months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements;
2. The stated final maturity of individual securities in the portfolio will be five years, except as otherwise stated in this policy;
3. The maximum weighted average stated final maturity of the total portfolio shall not exceed three years; and,
4. The duration of the portfolio will at all times be approximately equal to the duration (typically plus or minus 20%) of a Market Benchmark Index selected by the City based on the City’s investment objectives, constraints and risk tolerances. The City’s current Benchmark will be documented by the City.
XI. FOSSIL FUELS RESTRICTION
Amended and Adopted by Resolution No. 2022-682023-62 & SA-22-8323-86
The purchase of securities issued by fossil fuel companies that directly source the majority of their revenue from oil, gas and/or coal production is prohibited.
XII. INVESTMENT POOLS/MUTUAL FUNDS
The City shall conduct a thorough investigation of any pool or mutual fund prior to making an investment, and on a continual basis thereafter. The Finance Director or Chief Administrative Officer shall develop a questionnaire which will answer the following general questions:
A description of eligible investment securities, and a written statement of investment policy and objectives.
A description of interest calculations and how it is distributed, and how gains and losses are treated.
A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.
A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.
A schedule for receiving statements and portfolio listings. Are reserves, retained earnings, etc. utilized by the pool/fund? A fee schedule, and when and how is it assessed.
Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds?
XIII. INVESTMENT OBJECTIVES (PERFORMANCE STANDARDS AND EVALUATION) A. Overall Objective: The investment portfolio will be designed with the overall objective of obtaining a total rate of return throughout economic cycles, commensurate with investment risk constraints and cash flow needs.
B. Specific Objective: The investment performance objective for the portfolio will be to earn a total rate of return over a market cycle which is approximately equal to the return on the Market Benchmark Index selected by the City.
XIV. PROCEDURES AND INTERNAL CONTROLS
A. Procedures
The Finance Director or Chief Administrative Officer will establish investment policy procedures to assist investment staff with day-to-day operations of the investment program consistent with this policy. Such procedures will include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an
Amended and Adopted by Resolution No. 2022-682023-62 & SA-22-8323-86
investment transaction except as provided under the terms of this policy and the procedures established by the City Treasurer.
B. Internal Controls
The Finance Director or Chief Administrative Officer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse.
The internal control structure will be designed to provide reasonable assurance that these objectives are met. Internal controls will be described in the City’s investment procedures manual.
XV. REPORTING, DISCLOSURE AND PROGRAM EVALUATION
A. Monthly Reports
Monthly investment reports will be submitted by the Finance Director or Chief Administrative Officer to the governing board. These reports will disclose, at a minimum, the following information about the risk characteristics of the City’s portfolio:
1. An asset listing showing par value, cost and accurate and complete market value of each security, type of investment, issuer, and interest rate;
2. Monthly transactions for the period;
3. A one-page summary report that shows:
a. Average maturity of the portfolio and modified duration of the portfolio;
b. Maturity distribution of the portfolio;
c. Average portfolio credit quality; and,
d. Time-weighted total rate of return for the portfolio for the prior one month, three months, twelve months, year to date, and since inception compared to the Benchmark Index returns for the same periods.
4. A statement of compliance with investment policy, including a schedule of any transactions or holdings which do not comply with this policy or with the California Government Code, including a justification for their presence in the portfolio and a timetable for resolution; and,
5. A statement that the City has adequate funds to meet its cash flow requirements for the next six months.
Amended and Adopted by Resolution No. 2022-682023-62 & SA-22-8323-86
B. Annual Reports
1. The investment policy will be reviewed and updated at least annually at the beginning of the calendar year to ensure its consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends.
2. A comprehensive annual report will be presented in conjunction with the investment policy review. This report will include comparisons of the City’s return to the Benchmark Index return, suggest policies and improvements that might enhance the investment program, and will include an investment plan for the coming year.
C. Periodic Audit
The City Treasurer may establish a process of periodic independent review by an external expert to assure compliance with internal controls.
XIII. REVIEW OF INVESTMENT POLICY
This policy shall be subject to review by the City Council/Board on an annual basis. Any recommended modifications or amendments shall be presented by Staff to the City Council/Board for their consideration and adoption.
Prepared by:
Joann Gitmed
Finance Director
Approved as to content:
___________________________________
Erika Cortez
Chief Administrative Officer
Date:
Amended and Adopted by Resolution No. 2022-682023-62 & SA-22-8323-86
Appendix II
GLOSSARY OF INVESTMENT TERMS
Agencies. Shorthand market terminology for any obligation issued by a government-sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are:
FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds.
FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market. FHLB issues discount notes and bonds.
FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called “Freddie Mac” issues discount notes, bonds and mortgage pass-through securities.
FNMA. Like FHLB and Freddie Mac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as “Fannie Mae,” issues discount notes, bonds and mortgage pass-through securities.
GNMA. The Government National Mortgage Association, known as “Ginnie Mae,” issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government.
PEFCO. The Private Export Funding Corporation assists exporters.
Obligations of PEFCO are not guaranteed by the full faith and credit of the US government.
TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio, and Mississippi River valleys. TVA currently issues discount notes and bonds.
Asked. The price at which a seller offers to sell a security.
Asset Backed Securities. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.
Average Life. In mortgage-related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected.
Banker’s Acceptance. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which “accepts” the obligation to pay the investor.
Benchmark. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy.
Bid. The price at which a buyer offers to buy a security.
Amended and Adopted by Resolution No. 2022-682023-62 & SA-22-8323-86
Broker. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from theirhis own position.
Callable. A callable security gives the issuer the option to call it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If interest rates decline since an issuer issues security, it will likely call its current securities and reissue them at a lower rate of interest. Callable securities have reinvestment risk as the investor may receive its principal back when interest rates are lower than when the investment was initially made.
Certificate of Deposit (CD). A time deposit with a specific maturity evidenced by a certificate. Large denomination CDs may be marketable.
Collateral. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies.
Collateralized Mortgage Obligations (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.
Commercial Paper. The short-term unsecured debt of corporations.
Cost Yield. The annual income from an investment divided by the purchase cost.
Because it does not give effect to premiums and discounts which may have been included in the purchase cost, it is an incomplete measure of return.
Coupon. The rate of return at which interest is paid on a bond.
Credit Risk. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer.
Current Yield. The annual income from an investment divided by the current market value. Since the mathematical calculation relies on the current market value rather than the investor’s cost, current yield is unrelated to the actual return the investor will earn if the security is held to maturity.
Dealer. A dealer acts as a principal in security transactions, selling securities from and buying securities for theirhis own position.
Debenture. A bond secured only by the general credit of the issuer.
Delivery vs. Payment (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser’s agent.
Derivative. Any security that has principal and/or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any security which represents a component of another security which has been separated from other components (“Stripped” coupons and principal). A derivative is also defined as a financial instrument the value of which is totally or partially derived from the value of another instrument, interest rate, or index.
Discount. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as Tbills and banker’s acceptances, are known as discount securities. They
Amended and Adopted by Resolution No. 2022-682023-62 & SA-22-8323-86
sell at a discount from par and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality.
Diversification. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk.
Duration. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a bond to changes in interest rates. (See modified duration).
Federal Funds Rate. The rate of interest charged by banks for short-term loans to other banks. The Federal Reserve Bank through open-market operations establishes it.
Federal Open Market Committee: A committee of the Federal Reserve Board that establishes monetary policy and executes it through temporary and permanent changes to the supply of bank reserves.
Local Agency Investment Fund (LAIF): A voluntary investment fund open to government entities and certain non-profit organizations in California that is managed by the State Treasurer’s Office.
Local Government Investment Pool: Investment pools that range from LAIF to county pools, to Joint Powers Authorities (JPAs). These funds are not subject to the same SEC rules applicable to money market mutual funds.
Leverage. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing.
Liquidity: The speed and ease with which an asset can be converted to cash.
Make Whole Call. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or "made whole." Margin: The difference between the market value of a security and the loan a broker makes using that security as collateral.
Market Risk. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates.
Market Value. The price at which a security can be traded.
Marking to Market. The process of posting current market values for securities in a portfolio.
Maturity. The final date upon which the principal of a security becomes due and payable. An investment’s term or remaining maturity is measured from the settlement date to final maturity.
Medium Term Notes. Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts on either a continuous or an intermittent basis. MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences.
Amended and Adopted by Resolution No. 2022-682023-62 & SA-22-8323-86
Modified Duration. The percent change in price for a 100-basis point change in yields. Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk.
Money Market. The market in which short-term debt instruments (Tbills, discount notes, commercial paper, and banker’s acceptances) are issued and traded.
Mortgage Pass-Through Securities. A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.
Municipal Securities. Securities issued by state and local agencies to finance capital and operating expenses.
Mutual Fund. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus.
Mutual funds can be invested in various types of domestic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio.
Nationally Recognized Statistical Rating Organization (NRSRO): Credit rating agencies provide assessments of an investment’s risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Moody’s, S&P and Fitch.
Negotiable CD: A short-term debt instrument that pays interest and is issued by a bank, savings or federal association, state of federal credit union, or statelicensed branch of a foreign bank.
Premium. The difference between the par value of a bond and the cost of the bond, when the cost is above par.
Prepayment Speed. A measure of how quickly principal is repaid to investors in mortgage securities.
Prepayment Window. The time period over which principal repayments will be received on mortgage securities at a specified prepayment speed.
Primary Dealer. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S. Government securities market.
Prudent Person (Prudent Investor) Rule. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as “Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes.”
Realized Yield. The change in value of the portfolio due to interest received and interest earned and realized gains and losses. It does not give effect to
Amended and Adopted by Resolution No. 2022-682023-62 & SA-22-8323-86
changes in market value on securities, which have not been sold from the portfolio.
Repurchase Agreement (RP, Repo). Short-term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller’s point of view, the same transaction is a reverse repurchase agreement.
Safekeeping. A service to bank customers whereby securities are held by the bank in the customer’s name.
Structured Note. A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices. Examples include inverse floating rate notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising, and "dual index floaters," which pay interest based on the relationship between two other interest rates - for example, the yield on the ten-year Treasury note minus the Libor rate. Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements.
Supranational: A multi-national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in member countries.
Total Rate of Return. A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio.
U.S. Treasury Obligations. Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds.
Treasury Bills. All securities issued with initial maturities of one year or less are issued as discounted instruments and are called Treasury bills. The Treasury currently issues three- and six-month Tbills at regular weekly auctions. It also issues “cash management” bills as needed to smooth out cash flows.
Treasury Notes. All securities issued with initial maturities of two to ten years are called Treasury notes and pay interest semi-annually.
Treasury Bonds. All securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi-annually.
Yield to Maturity. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost.
ATTACHMENT 4
RES 2023-62 EXHIBIT A
RES SA-23-86 EXHIBIT A
City of Imperial Beach
Investment Policy
Fiscal Year 2023/2024
Amended and Adopted by Resolution No. 2023-62& SA-23-86 Page 2
CITY OF IMPERIAL BEACH, CALIFORNIA
INVESTMENT POLICY
Fiscal Year 2023/2024
I. INTRODUCTION
This Investment Policy is intended to identify various policies and procedures that will foster a prudent and systematic investment program designed to seek the City of Imperial Beach’s objectives of safety, liquidity and yield through a diversified investment portfolio. This policy also serves to organize and formalize the City’s investment-related activities, while complying with all applicable statutes governing the investment of public funds.
This Investment Policy was endorsed and adopted by the City’s governing body and is effective as of August 16, 2023. This Investment Policy replaces any previous Investment Policy or Investment Procedures of the City.
II. SCOPE
This Investment Policy applies to all the City’s financial assets and investment activities with the following exceptions:
Proceeds of debt issuance shall be invested in accordance with the City’s general investment philosophy as set forth in this policy; however, such proceeds are invested in accordance with permitted investment provisions of their specific bond indentures.
Pooling of Funds: Except for cash in certain restricted and special funds, the City will consolidate cash and reserve balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles.
Specific Investment Accounts: From time to time, the City Council may authorize an investment in other specific investments, or the management of bond proceeds issued by the City of Imperial Beach. This may include deposits that are set aside for future needs of a long-term nature and may be invested in longer-term securities as allowed by the Government Code.
Inter-fund transfers are not covered by this policy.
Amended and Adopted by Resolution No. 2023-62& SA-23-86 Page 3 III. PRUDENCE
Pursuant to California Government Code, Section 53600.3, all persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the Prudent Investor Standard:
“…all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the Agency, that a prudent person acting in a like capacity and familiar with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the Agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.” The Finance Director, Chief Administrative Officer and other authorized persons responsible for managing City funds acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes provided that the Finance Director, Chief Administrative Officer or other authorized persons acted in good faith. Deviations from expectations of a security’s credit or market risk should be reported to the governing body in a timely fashion and appropriate action should be taken to control adverse developments.
IV.OBJECTIVES
The authority governing investments for municipal governments is set forth in Government Code sections 53600 et seq. The overriding objectives of the investment program are to preserve principal, provide sufficient liquidity, and manage investment risks.
1. Safety: Safety of principal is the foremost objective of the investment program. Investments will be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk.
2. Liquidity: The investment portfolio will remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated.
Amended and Adopted by Resolution No. 2023-62& SA-23-86 Page 4
3. Yield: The investment portfolio will be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints for safety and liquidity needs.
V. ETHICS AND CONFLICTS OF INTEREST
All participants in the investment process shall act as fiduciaries of the public trust. As the employees assigned to implement the investment strategy, the Finance Director and Chief Administrative Officer, as identified by Resolution of the City Council, shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.
The Finance Director and Chief Administrative Officer shall disclose any material financial interests in financial institutions that conduct business with the City, and they shall further disclose any personal financial/investment positions that could be affected by the performance of the City’s operations and functions or by the management of the City’s investment program.
Ethics and Conflicts of Interest: Officers and employees involved in the investment process shall refrain from personal business activity that conflicts with proper execution of the investment program or impair their ability to make impartial investment decisions. Additionally, the Finance Director, Chief Administrative Officer and other members of the management Investment Advisory Committee, as identified herein, are required to annually file applicable financial disclosures as required by the Fair Political Practices Commission (FPPC).
DELEGATION OF AUTHORITY
A. Authority to manage the City’s investment program is derived from California Government Code Sections 53600 et seq. The governing body is responsible for the City’s cash management, including the administration of this Investment Policy. Management responsibility for the cash management of City funds is hereby delegated to the Finance Director and Chief Administrative Officer.
The Finance Director and Chief Administrative Officer will be responsible for all transactions undertaken and will establish a system of procedures and controls to regulate the activities of subordinate employees.
B. The City may engage the services of one or more external investment managers to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives. Such external managers may be granted discretion to purchase and sell investment securities in
Amended and Adopted by Resolution No. 2023-62& SA-23-86 Page 5 accordance with this Investment Policy. Such managers must be registered under the Investment Advisers Act of 1940.
An Investment Committee consisting of the City Manager/Executive Director, Finance Director and Chief Administrative Officer shall be established to provide general oversight and direction concerning the policy related to management of the City's investment portfolio. Assigned Finance Department staff members may serve in a staff and advisory capacity, although are not members of the Committee.
VI.AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS A list will be maintained of financial institutions and depositories authorized to provide investment services. In addition, a list will be maintained of approved security broker/dealers selected by conducting a process of due diligence described in the investment procedures manual. These may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15C3-1 (uniform net capital rule).
A. The Finance Director or Chief Administrative Officer will determine which financial institutions are authorized to provide investment services to the City. Institutions eligible to transact investment business with the City include:
1. Institutions licensed by the state as a broker-dealer.
2. Institutions that are members of a federally regulated securities exchange.
3. Primary government dealers as designated by the Federal Reserve Bank and non-primary government dealers;
4. Nationally or state-chartered banks;
5. The Federal Reserve Bank; and,
6. Direct issuers of securities eligible for purchase.
B. Selection of financial institutions and broker/dealers authorized to engage in transactions with the City will be at the sole discretion of the City.
C. All financial institutions which desire to become qualified bidders for investment transactions (and which are not dealing only with the investment adviser) must supply the Finance Director or Chief Administrative Officer with a statement certifying that the institution has reviewed the California Government Code Section 53600 et seq. and the City’s Investment Policy.
Amended and Adopted by Resolution No. 2023-62& SA-23-86 Page 6 The Finance Director or Chief Administrative Officer will conduct an annual review of the financial condition and registrations of such qualified bidders.
D. Selection of broker/dealers used by an external investment adviser retained by the City will be at the sole discretion of the investment adviser.
E. Public deposits will be made only in qualified public depositories as established by State law. Deposits will be insured by the Federal Deposit Insurance Corporation, or, to the extent the amount exceeds the insured maximum, will be collateralized in accordance with State law.
F. Collateralization:
1. Certificates of Deposit: The City shall require any commercial bank or savings and loan association to deposit eligible securities with an agency of a depository approved by the State Banking Department to secure any uninsured portion of a non-negotiable Certificate of Deposit.
The value of eligible securities as defined pursuant to Government Code Section 53651, pledged against a Certificate of Deposit shall be equal to 150% of the face value of the CD if the securities are classified as mortgages and 110% of the face value of the CD for all other classes of security.
2. Repurchase Agreements: The City requires that repurchase agreements be collateralized only by securities authorized by Government Code:
The securities which collateralize the repurchase agreement shall be priced at Market Value, including any Accrued Interest plus a margin.
The Market Value of the securities that underlie a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities.
Financial Institutions shall mark the value of the collateral to market at least monthly and increase or decrease the collateral to satisfy the ratio requirement described above.
The City shall receive monthly statements of collateral.
VII. DELIVERY, SAFEKEEPING AND CUSTODY, AND COMPETITIVE TRANSACTIONS A. Delivery-versus-payment: Settlement of all investment transactions will be completed using standard delivery-vs.-payment procedures.
B. Third-party safekeeping: To protect against potential losses by collapse of individual securities dealers, and to enhance access to securities, interest payments and maturity proceeds, all securities owned by the City will be held in safekeeping by a third-party bank custodian, acting
Amended and Adopted by Resolution No. 2023-62& SA-23-86 Page 7 as agent for the City under the terms of a custody agreement executed by the bank and the City. All investment transactions will require a safekeeping receipt or acknowledgement generated from the trade. A monthly report will be received by the City from the custodian listing all securities held in safekeeping with current market data and other relevant information.
The only exceptions to the foregoing shall be depository accounts and securities purchases made with: (i) local government investment pools; (ii) time certificates of deposit, and (iii) mutual funds and money market mutual funds, since these securities are not deliverable.
C. Competitive transactions: All investment transactions will be conducted on a competitive basis which can be executed through a bidding process involving at least three separate brokers/financial institutions or through use of a nationally recognized trading platform where possible.
The only exceptions to the foregoing shall be depository accounts and securities purchases made with LAIF, LGIPs, time deposits, mutual funds, and money market mutual funds, since these securities are not deliverable.
VIII. AUTHORIZED AND SUITABLE INVESTMENTS
The City’s investments are governed by Government Code, Sections 53600 et seq. Within the investments permitted by the Government Code, the City seeks to further restrict eligible investments to the guidelines listed below.
In the event an apparent discrepancy is found between this Policy and the Government Code, the more restrictive parameters will take precedence.
Percentage holding limits and credit rating minimums listed in this section apply at the time the security is purchased.
Any investment currently held at the time the Policy is adopted which does not meet the new Policy guidelines can be held until maturity and shall be exempt from the current Policy. At the time of the investment’s maturity or liquidation such funds shall be reinvested only as provided in the most current Policy.
1. U.S. Treasury and other government obligations for which the full faith and credit of the United States are pledged for the payment of principal and interest. There are no limits on the dollar amount or percentage that the City may invest in U.S. Treasuries.
The maximum maturity is five years.
Amended and Adopted by Resolution No. 2023-62& SA-23-86 Page 8
2. Federal Agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. There are no limits on the dollar amount or percentage that the City may invest in government-sponsored enterprises.
The maximum maturity is five years;
No more than 20% of the total portfolio may be invested in callable federal agency securities.
3. Municipal Securities. These include obligations of the City, the State of California, any local agency within the state of California, and registered notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, and, provided that:
Long-term obligations are rated in the “A” category or higher by at least one nationally recognized statistical rating organization (NRSRO);
The maximum maturity is five years;
No more than 5% of the total portfolio may be invested in any single municipal securities issuer;
No more than 30% of the portfolio may be invested in Municipal Securities.
4. Corporate Medium-Term Notes (MTNs) provided that:
Such notes have a maximum maturity of five years;
Are issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States;
Are rated in the “A” category or better by at least one NRSRO; No more than 30% of the total portfolio may be invested in corporate medium-term notes; and,
Amended and Adopted by Resolution No. 2023-62& SA-23-86 Page 9 No more than 5% of the total portfolio may be invested in any single issuer of corporate medium-term notes.
5. Mortgage Pass-Through Securities, Collateralized Mortgage Obligations, and Asset-Backed Securities from issuers not defined in sections 1 and 2 of the Authorized and Suitable Investments Section of this policy, provided that:
Such securities have a maximum stated final maturity of five years; Are rated in the category of “AA” or its equivalent or better by a NRSRO;
Purchase of securities authorized by this subdivision may not exceed 20% of the portfolio; and,
No more than 5% of the total portfolio is invested in any single issuer of Asset-Backed or Commercial Mortgage Securities.
6. Federally Insured Time Deposits (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that:
The amount per institution is limited to the maximum covered under federal insurance;
No more than 20% of the portfolio will be invested in a combination of federally insured and collateralized time deposits;
The maturity of such deposits does not exceed 5 years; and, No more than 5% of the total portfolio may be invested in any single issuer of federally insured time deposits.
7. Time Deposits (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions in excess of insured amounts which are fully collateralized with securities in accordance with California law, provided that:
No more than 20% of the portfolio will be invested in a combination of federally insured and collateralized time deposits;
The maturity of such deposits does not exceed 5 years; and, No more than 5% of the total portfolio may be invested in any single issuer of time deposits.
Amended and Adopted by Resolution No. 2023-62& SA-23-86 Page 10
8. Certificate of Deposit Placement Service (CDARS) provided that:
No more than 30% of the total portfolio may be invested in a combination of certificates of deposit including CDARS; and, The maturity of CDARS deposits does not exceed five years.
9. Negotiable Certificates of Deposit (NCDs) provided that:
They are issued by institutions which have long-term obligations which are rated in the “A” category or higher by at least one nationally recognized statistical rating organization; or have short term debt obligations rated “A-1” or higher, or the equivalent, by at least one NRSRO;
The maturity does not exceed five years;
No more than 30% of the total portfolio may be invested in NCDs; and,
No more than 5% of the total portfolio may be invested in any single issuer of NCDs.
10.Banker’s Acceptances provided that:
They are issued by institutions with short term debt obligations rated “A-1” or higher, or the equivalent, by at least one NRSRO; and have long-term debt obligations which are rated in the “A” category or higher by at least one NRSRO;
The maturity does not exceed 180 days;
No more than 40% of the total portfolio may be invested in banker’s acceptances; and,
No more than 5% of the total portfolio may be invested in any single issuer of banker’s acceptances.
11.Commercial Paper provided that the securities are issued by an entity that meets all of the following conditions in either paragraph a or b and other requirements specified below:
a. SECURITIES issued by corporations:
(i) A corporation organized and operating in the United States with assets more than $500 million.
Amended and Adopted by Resolution No. 2023-62& SA-23-86 Page 11 (ii) The securities are rated “A-1” or its equivalent or better by at least one NRSRO.
(iii) If the issuer has other debt obligations, they must be rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
b. SECURITIES issued by other entities:
(i) The issuer is organized within the United States as a special purpose corporation, trust, or limited liability company. (ii) The securities must have program-wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond.
(iii) The securities are rated “A-1” or its equivalent or better by at least one NRSRO.
No more than 10% of the outstanding commercial paper of any single issuer.
No more than 25% of the total portfolio is invested in commercial paper.
No more than 5% of the total portfolio is invested in any single commercial paper issuer.
The maturity does not exceed 270 days from the date of purchase.
12.Repurchase Agreements collateralized with securities authorized pursuant to Government Code that are maintained at a level of at least 102% of the market value of the repurchase agreements, provided that:
The maximum maturity of repurchase agreements will be 1 year; There is no limit to the amount to be invested in repurchase agreements;
Securities used as collateral for repurchase agreements will be delivered to the City’s custodian bank; and,
The repurchase agreements are the subject of a master repurchase agreement between the City and the provider of the repurchase agreement. The master repurchase agreement will be substantially in the form developed by the Securities Industry and Financial Markets Association (SIFMA).
Amended and Adopted by Resolution No. 2023-62& SA-23-86 Page 12
13.State of California Local City Investment Fund (LAIF), provided that:
The City may invest up to the maximum permitted amount in LAIF; and,
LAIF’s investments in instruments prohibited by or not specified in the City’s policy do not exclude it from the City’s list of allowable investments, provided that the fund’s reports allow the Finance Director or Chief Administrative Officer to adequately judge the risk inherent in LAIF’s portfolio.
14.Local Government Investment Pools
No more than 10% per issuer limitation for Local Government Investment Pools other than LAIF.
15.Mutual Funds and Money Market Mutual Funds that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940, provided that:
Mutual Funds that invest in the securities and obligations as authorized under California Government Code Section 53601 (a) to (k) and (m) to (q) inclusive and that meet either of the following criteria:
1. Attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs; or,
2. Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience investing in the securities and obligations authorized by California Government Code Section 53601 and with assets under management in excess of $500 million;
No more than 10% of the total portfolio may be invested in shares of any one mutual fund.
Money Market Mutual Funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and issued by diversified management companies and meet either of the following criteria:
1. Have attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs.
Amended and Adopted by Resolution No. 2023-62& SA-23-86 Page 13
2. Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds with assets under management in excess of $500 million.
No more than 20% per fund of the total portfolio may be invested in the shares of any one money market mutual fund.
No more than 20% of the total portfolio may be invested in these securities.
16. Supranational Securities, provided that:
a. Issues are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank.
b. The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
c. No more than 30% of the total portfolio may be invested in these securities.
d. No more than 10% of the portfolio may be invested in a single Supranational issuer.
e. The maximum maturity does not exceed five years.
Any State of California legislative action that further restricts allowable maturities, investment type or percentage allocations, shall be incorporated into this Investment Policy and supersede any and all previous applicable provisions inconsistent with such legislative action.
IX. MAXIMUM MATURITIES
To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities. No investment will be made in any security with a remaining maturity in excess of five years from the date of trade settlement, unless the City Council has by resolution granted express authority to make such an investment.
X. PORTFOLIO RISK MANAGEMENT
A. Prohibited Investment Vehicles and Practices
1. State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options.
Amended and Adopted by Resolution No. 2023-62& SA-23-86 Page 14
2. In accordance with Government Code Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited.
3. Investment in any security that could result in a zero-interest accrual if held to maturity is prohibited. However, under a provision sunsetting on January 1, 2026, securities backed by the U.S. Government that could result in a zero- or negative interest accrual if held to maturity are permitted.
4. Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.
5. Purchasing or selling securities on margin is prohibited.
6. The use of reverse repurchases agreements, securities lending or any other form of borrowing or leverage is prohibited.
7. The purchase of foreign currency denominated securities is prohibited.
8. The purchase of a security with a forward settlement exceeding 45 days from the time of the investment is prohibited.
B. Mitigating Credit Risk in the Portfolio
Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies:
1. The diversification requirements included in Section VIII are designed to mitigate credit risk in the portfolio;
2. No more than 5% of the total portfolio may be invested in securities of any single issuer, other than the US Government, its agencies and enterprises, supranationals, money market funds, local government investment pools or unless otherwise specified in this investment policy;
3. The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to improve the quality, liquidity or yield of the portfolio in response to market conditions or City’s risk preferences; and,
4. If securities owned by the City are downgraded to a level below the quality required by this Investment Policy, making the security ineligible for additional purchases, the following steps will be taken:
Amended and Adopted by Resolution No. 2023-62& SA-23-86 Page 15 a. Any actions taken related to the downgrade by the investment manager will be communicated to the Finance Director or Chief Administrative Officer in a timely manner.
b. If a decision is made to retain a downgraded security in the portfolio, the credit situation will be monitored and reported monthly to the governing board.
C. Mitigating Market Risk in the Portfolio
Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City recognizes that, over time, longer-term portfolios have the potential to achieve higher returns. On the other hand, longer-term portfolios have higher volatility of return. The City will mitigate market risk by providing adequate liquidity for short-term cash needs, and by making longer-term investments only with funds that are not needed for current cashflow purposes.
The City further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City, therefore, adopts the following strategies to control and mitigate its exposure to market risk:
1. The City will maintain a minimum of six months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements;
2. The stated final maturity of individual securities in the portfolio will be five years, except as otherwise stated in this policy;
3. The maximum weighted average stated final maturity of the total portfolio shall not exceed three years; and,
4. The duration of the portfolio will at all times be approximately equal to the duration (typically plus or minus 20%) of a Market Benchmark Index selected by the City based on the City’s investment objectives, constraints and risk tolerances. The City’s current Benchmark will be documented by the City.
XI. FOSSIL FUELS RESTRICTION
Amended and Adopted by Resolution No. 2023-62& SA-23-86 Page 16 The purchase of securities issued by fossil fuel companies that directly source the majority of their revenue from oil, gas and/or coal production is prohibited.
XII. INVESTMENT POOLS/MUTUAL FUNDS
The City shall conduct a thorough investigation of any pool or mutual fund prior to making an investment, and on a continual basis thereafter. The Finance Director or Chief Administrative Officer shall develop a questionnaire which will answer the following general questions:
A description of eligible investment securities, and a written statement of investment policy and objectives.
A description of interest calculations and how it is distributed, and how gains and losses are treated.
A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.
A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.
A schedule for receiving statements and portfolio listings. Are reserves, retained earnings, etc. utilized by the pool/fund? A fee schedule, and when and how is it assessed.
Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds?
XIII. INVESTMENT OBJECTIVES (PERFORMANCE STANDARDS AND EVALUATION) A. Overall Objective: The investment portfolio will be designed with the overall objective of obtaining a total rate of return throughout economic cycles, commensurate with investment risk constraints and cash flow needs.
B. Specific Objective: The investment performance objective for the portfolio will be to earn a total rate of return over a market cycle which is approximately equal to the return on the Market Benchmark Index selected by the City.
XIV. PROCEDURES AND INTERNAL CONTROLS
A. Procedures
The Finance Director or Chief Administrative Officer will establish investment policy procedures to assist investment staff with day-to-day operations of the investment program consistent with this policy. Such procedures will include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an
Amended and Adopted by Resolution No. 2023-62& SA-23-86 Page 17 investment transaction except as provided under the terms of this policy and the procedures established by the City Treasurer.
B. Internal Controls
The Finance Director or Chief Administrative Officer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse.
The internal control structure will be designed to provide reasonable assurance that these objectives are met. Internal controls will be described in the City’s investment procedures manual.
XV. REPORTING, DISCLOSURE AND PROGRAM EVALUATION
A. Monthly Reports
Monthly investment reports will be submitted by the Finance Director or Chief Administrative Officer to the governing board. These reports will disclose, at a minimum, the following information about the risk characteristics of the City’s portfolio:
1. An asset listing showing par value, cost and accurate and complete market value of each security, type of investment, issuer, and interest rate;
2. Monthly transactions for the period;
3. A one-page summary report that shows:
a. Average maturity of the portfolio and modified duration of the portfolio;
b. Maturity distribution of the portfolio;
c. Average portfolio credit quality; and,
d. Time-weighted total rate of return for the portfolio for the prior one month, three months, twelve months, year to date, and since inception compared to the Benchmark Index returns for the same periods.
4. A statement of compliance with investment policy, including a schedule of any transactions or holdings which do not comply with this policy or with the California Government Code, including a justification for their presence in the portfolio and a timetable for resolution; and,
5. A statement that the City has adequate funds to meet its cash flow requirements for the next six months.
Amended and Adopted by Resolution No. 2023-62& SA-23-86 Page 18 B. Annual Reports
1. The investment policy will be reviewed and updated at least annually at the beginning of the calendar year to ensure its consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends.
2. A comprehensive annual report will be presented in conjunction with the investment policy review. This report will include comparisons of the City’s return to the Benchmark Index return, suggest policies and improvements that might enhance the investment program, and will include an investment plan for the coming year.
C. Periodic Audit
The City Treasurer may establish a process of periodic independent review by an external expert to assure compliance with internal controls.
XIII. REVIEW OF INVESTMENT POLICY
This policy shall be subject to review by the City Council/Board on an annual basis. Any recommended modifications or amendments shall be presented by Staff to the City Council/Board for their consideration and adoption.
Prepared by:
Joann Gitmed
Finance Director
Approved as to content:
___________________________________
Erika Cortez
Chief Administrative Officer
Date:
Amended and Adopted by Resolution No. 2023-62& SA-23-86 Page 19 Appendix
GLOSSARY OF INVESTMENT TERMS
Agencies. Shorthand market terminology for any obligation issued by a government-sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are:
FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds.
FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market. FHLB issues discount notes and bonds.
FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called “Freddie Mac” issues discount notes, bonds and mortgage pass-through securities.
FNMA. Like FHLB and Freddie Mac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as “Fannie Mae,” issues discount notes, bonds and mortgage pass-through securities.
GNMA. The Government National Mortgage Association, known as “Ginnie Mae,” issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government.
PEFCO. The Private Export Funding Corporation assists exporters.
Obligations of PEFCO are not guaranteed by the full faith and credit of the US government.
TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio, and Mississippi River valleys. TVA currently issues discount notes and bonds.
Asked. The price at which a seller offers to sell a security.
Asset Backed Securities. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.
Average Life. In mortgage-related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected.
Banker’s Acceptance. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which “accepts” the obligation to pay the investor.
Benchmark. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy.
Bid. The price at which a buyer offers to buy a security.
Amended and Adopted by Resolution No. 2023-62& SA-23-86 Page 20 Broker. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from their own position.
Callable. A callable security gives the issuer the option to call it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If interest rates decline since an issuer issues security, it will likely call its current securities and reissue them at a lower rate of interest. Callable securities have reinvestment risk as the investor may receive its principal back when interest rates are lower than when the investment was initially made.
Certificate of Deposit (CD). A time deposit with a specific maturity evidenced by a certificate. Large denomination CDs may be marketable.
Collateral. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies.
Collateralized Mortgage Obligations (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.
Commercial Paper. The short-term unsecured debt of corporations.
Cost Yield. The annual income from an investment divided by the purchase cost.
Because it does not give effect to premiums and discounts which may have been included in the purchase cost, it is an incomplete measure of return.
Coupon. The rate of return at which interest is paid on a bond.
Credit Risk. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer.
Current Yield. The annual income from an investment divided by the current market value. Since the mathematical calculation relies on the current market value rather than the investor’s cost, current yield is unrelated to the actual return the investor will earn if the security is held to maturity.
Dealer. A dealer acts as a principal in security transactions, selling securities from and buying securities for their own position.
Debenture. A bond secured only by the general credit of the issuer.
Delivery vs. Payment (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser’s agent.
Derivative. Any security that has principal and/or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any security which represents a component of another security which has been separated from other components (“Stripped” coupons and principal). A derivative is also defined as a financial instrument the value of which is totally or partially derived from the value of another instrument, interest rate, or index.
Discount. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as Tbills and banker’s acceptances, are known as discount securities. They
Amended and Adopted by Resolution No. 2023-62& SA-23-86 Page 21 sell at a discount from par and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality.
Diversification. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk.
Duration. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a bond to changes in interest rates. (See modified duration).
Federal Funds Rate. The rate of interest charged by banks for short-term loans to other banks. The Federal Reserve Bank through open-market operations establishes it.
Federal Open Market Committee: A committee of the Federal Reserve Board that establishes monetary policy and executes it through temporary and permanent changes to the supply of bank reserves.
Local Agency Investment Fund (LAIF): A voluntary investment fund open to government entities and certain non-profit organizations in California that is managed by the State Treasurer’s Office.
Local Government Investment Pool: Investment pools that range from LAIF to county pools, to Joint Powers Authorities (JPAs). These funds are not subject to the same SEC rules applicable to money market mutual funds.
Leverage. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing.
Liquidity: The speed and ease with which an asset can be converted to cash.
Make Whole Call. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or "made whole." Margin: The difference between the market value of a security and the loan a broker makes using that security as collateral.
Market Risk. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates.
Market Value. The price at which a security can be traded.
Marking to Market. The process of posting current market values for securities in a portfolio.
Maturity. The final date upon which the principal of a security becomes due and payable. An investment’s term or remaining maturity is measured from the settlement date to final maturity.
Medium Term Notes. Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts on either a continuous or an intermittent basis. MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences.
Amended and Adopted by Resolution No. 2023-62& SA-23-86 Page 22 Modified Duration. The percent change in price for a 100-basis point change in yields. Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk.
Money Market. The market in which short-term debt instruments (Tbills, discount notes, commercial paper, and banker’s acceptances) are issued and traded.
Mortgage Pass-Through Securities. A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.
Municipal Securities. Securities issued by state and local agencies to finance capital and operating expenses.
Mutual Fund. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus.
Mutual funds can be invested in various types of domestic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio.
Nationally Recognized Statistical Rating Organization (NRSRO): Credit rating agencies provide assessments of an investment’s risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Moody’s, S&P and Fitch.
Negotiable CD: A short-term debt instrument that pays interest and is issued by a bank, savings or federal association, state of federal credit union, or statelicensed branch of a foreign bank.
Premium. The difference between the par value of a bond and the cost of the bond, when the cost is above par.
Prepayment Speed. A measure of how quickly principal is repaid to investors in mortgage securities.
Prepayment Window. The time period over which principal repayments will be received on mortgage securities at a specified prepayment speed.
Primary Dealer. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S. Government securities market.
Prudent Person (Prudent Investor) Rule. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as “Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes.”
Realized Yield. The change in value of the portfolio due to interest received and interest earned and realized gains and losses. It does not give effect to
Amended and Adopted by Resolution No. 2023-62& SA-23-86 Page 23 changes in market value on securities, which have not been sold from the portfolio.
Repurchase Agreement (RP, Repo). Short-term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller’s point of view, the same transaction is a reverse repurchase agreement.
Safekeeping. A service to bank customers whereby securities are held by the bank in the customer’s name.
Structured Note. A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices. Examples include inverse floating rate notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising, and "dual index floaters," which pay interest based on the relationship between two other interest rates - for example, the yield on the ten-year Treasury note minus the Libor rate. Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements.
Supranational: A multi-national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in member countries.
Total Rate of Return. A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio.
U.S. Treasury Obligations. Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds.
Treasury Bills. All securities issued with initial maturities of one year or less are issued as discounted instruments and are called Treasury bills. The Treasury currently issues three- and six-month Tbills at regular weekly auctions. It also issues “cash management” bills as needed to smooth out cash flows.
Treasury Notes. All securities issued with initial maturities of two to ten years are called Treasury notes and pay interest semi-annually.
Treasury Bonds. All securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi-annually.
Yield to Maturity. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost.
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August 16, 2023
ITEM TITLE: CONSIDERATION OF RESOLUTION 2023-70 REQUESTING A BUDGET AMENDMENT FOR FY 2023/24 AND FY 2024/25 FOR SENIOR COMMUNITY CENTER SHADE AND PATIO FURNITURE. (0300-20 & 0930-20)
ORIGINATING DEPARTMENT:
Parks & Recreation
EXECUTIVE SUMMARY:
In June 2023 the Parks, Recreation and Community Services Department was awarded a grant for the Senior Community Center from the San Diego Seniors Community Foundation. The grant award included $30,000 to be used for enhancements to the outdoor courtyard which will include installing shade sails and purchasing outdoor furniture. The adopted two-year budget for FY 2023/24 and FY 2024/25 included an appropriation to be used for purchasing outdoor shade and patio furniture in FY 2024/25. Staff is requesting a budget amendment to move the approved appropriation from the FY 2024/25 budget to the FY 2023/24 budget to purchase the shade and patio furniture for the Senior Center Community Center by December 2023.
RECOMMENDATION:
Consideration of Resolution 2023-70 approving a budget amendment from FY 2024/25 to FY 2023/24 for the Senior Community Center shade and patio furniture project.
OPTIONS:
Adoption of Resolution 2023-70; or
Modification of proposed resolution and adoption of Resolution 2023-70 as amended; and
Provide staff with alternative direction.
BACKGROUND/ANALYSIS:
In June 2023, the City was awarded a $30,000 grant from the San Diego Seniors Community Foundation for the Senior Community Center to be used for outdoor enhancements. These enhancements include the installation of shade sails and outdoor furniture. The grant was accepted by City Council at the June 21, 2023, City Council Meeting. With the adoption of the two-year budget for FY 2024/2025, the City Council approved an appropriation of $54,000 in FY 2024/25 for the shade project. Staff is requesting moving the approved funds from the FY 2024/25 budget to FY 2023/24 budget to meet the grant guidelines and complete the outdoor courtyard
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enhancements by the end of the 2023 year. The total project will cost $84,000 including the $30,000 in grant funds.
ENVIRONMENTAL DETERMINATION:
Not a project as defined by CEQA.
FISCAL IMPACT: The budget amendment will result in an increase of $54,000 in the FY 2023/24 budget and a decrease of $54,000 in the FY 2024/25 budget. The result is a net zero effect over the two-year period of the approved budget cycle.
FISCAL YEAR: 2023/2024 and 2024/2025
BUDGETED: Yes
BUDGET AMENDMENT: Yes
ACCOUNT NO(S).: 101-6030-453.5004 – Increase line item
$54,000 in FY 2023-24
101-6030-453.5004 – Decrease line item
$54,000 in FY 2024-25
PROJECT NO(S).: GRT077
FISCAL ANALYSIS: Budget amendment will move the
approved item from the FY2024-25 to
the FY2023-24 General Fund Budget
CURRENT BUDGET: FY 2023-24:
$30,000 (214-6030-453.2310)
$0 (101-6030-453.5004)
FY 2024-25:
$54,000 (101-6030-453.5004)
ANTICIPATED
EXPENDITURE:
$84,000
ATTACHMENTS:
ATT 1 – Resolution No. 2023 - 70
ATTACHMENT 1
RESOLUTION NO. 2023 - 70
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF IMPERIAL BEACH, CALIFORNIA, APPROVING A BUDGET AMENDMENT FOR FY 2023/24 AND FY 2024/25 FOR THE SENIOR
COMMUNITY CENTER SHADE AND PATIO FURNITURE
WHEREAS, on May 17, 2023, the City Council approved the City of Imperial Beach FY 2024/2025 biennial budget which included an appropriation for the purchase of shade and patio furniture for the Senior Community Center in FY 2024/25; and WHEREAS, on June 21, 2023, the City Council accepted a grant from the San Diego Seniors Community Foundation for the Senior Community Center outdoor enhancement project; and
WHEREAS, the City currently does not have the full funding for new outdoor shade amenities and furniture in FY 2023/24, however, funding is available in the FY 2024/25 approved budget.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Imperial Beach as follows:
1. The above recitals are true and correct.
2. The budget funds from FY 2024/25 in the amount of $54,000 will be re-appropriated to FY 2023/24 for the purchase of shade and patio furniture at the Senior Community Center.
3. The Finance Director is authorized to amend/increase expenditures in account 101-6030- 453.5004 (Improvements Not Buildings) in FY 2023/24 and amend/reduce the expenditures in the same account for FY 2024-25 for the Imperial Beach Senior Community Center outdoor courtyard enhancements.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Imperial Beach at its meeting held on the 16th day of August 2023, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
PALOMA AGUIRRE, MAYOR
ATTEST:
JACQUELINE M. KELLY, MMC
CITY CLERK
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August 16, 2023
ITEM TITLE: AUTHORIZATION FOR THE FILING OF AN APPLICATION FOR THE HOUSING ACCELERATION PROGRAM (HAP) CYCLE 2 GRANT FUNDS FROM THE SAN DIEGO
ASSOCIATION OF GOVERNMENTS AND ACCEPTING THE TERMS OF THE GRANT AGREEMENT. (0660-05)
ORIGINATING DEPARTMENT:
Community Development
EXECUTIVE SUMMARY:
The Housing Acceleration Program (HAP) Grant is an innovative program developed by SANDAG that aims to help local jurisdictions build their capacity to produce more housing and better integrate it into their communities. The goal of HAP is to develop and adopt policies and process improvements that accelerate housing production, facilitate implementation of the 6th Regional Housing Needs Assessment (RHNA) Cycle, implement the Regional Plan Sustainable Communities Strategy (SCS), and build local jurisdictions’ capacity to compete for funding statewide through the California Department of Housing and Community Development (HCD) Prohousing Designation Program. Using state Regional Early Action Planning (REAP) funds, the HAP will provide grants to local jurisdictions to fund planning projects related to the acceleration of housing production within smart growth or mobility hub planning areas. City staff identified an opportunity to implement the City’s 6th Cycle Housing Element policies and goals, reduce vehicle miles traveled (VMT), Affirmatively Further Fair Housing (AFFH), and accelerate infill development that Facilitates Housing Supply, Choice, and Affordability through the project the Imperial Beach Housing Acceleration and Support Program (IB HASP). The City is seeking to submit a Planning Project application for the full HAP Grant award amount of $650,000 for the IB HASP.
RECOMMENDATION:
That the City Council adopt Resolution Number 2023-66 authorizing the City to submit a grant application for the HAP Grant for the Imperial Beach Housing Acceleration and Support Program for $650,000, for the City Manager, or designee thereof, to execute all documents and take any actions necessary and appropriate to carry out the intent of this resolution accepting the grant funds awarded by SANDAG and authorizing the City Manager or designee to make required budget adjustments to accommodate the grant funds and project expenditures.
OPTIONS:
In addition to receiving this report and adopting staff’s recommendations, the City Council can:
Not adopt Resolution 2023-66, opting out of the grant funding; or Request additional information.
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BACKGROUND/ANALYSIS:
The City of Imperial Beach’s 6th Cycle Housing Element was certified by the Department of Housing and Community Development (HCD) on September 20, 2021. The Housing Element is an integral component of the City’s General Plan. It addresses existing and future housing needs of all types for persons of all economic groups in the City. The Housing Element is a tool for use by citizens and public officials in understanding and meeting the housing needs in Imperial Beach.
The purpose of these requirements is to develop an understanding of the existing and projected housing needs within the community and to set forth policies and schedules, which promote preservation, improvement and development of diverse types and costs of housing throughout Imperial Beach. To implement the City’s Housing Element, there are policies and goals that require specific actions necessary to accelerate housing production, reduce vehicle miles traveled (VMT), and Affirmatively Further Fair Housing (AFFH). However, changing housing legislation, existing roadway configurations, and City staff capacity constraints have created barriers to implementation.
To address the barriers that many of the jurisdictions within the San Diego region are experiencing with implementation of the Housing Element, SANDAG has developed the Housing Acceleration Program (HAP) Grant. The HAP Grant is an innovative program developed by SANDAG that aims to help local jurisdictions build their capacity to produce more housing and better integrate it into their communities. The goal of HAP is to develop and adopt policies and process improvements that accelerate housing production, facilitate implementation of the 6th Regional Housing Needs Assessment (RHNA) Cycle, implement the Regional Plan Sustainable Communities Strategy (SCS), and build local jurisdictions’ capacity to compete for funding statewide through the California Department of Housing and Community Development (HCD) Prohousing Designation Program. Using state Regional Early Action Planning (REAP) funds, the HAP will provide grants to local jurisdictions to fund planning projects related to the acceleration of housing production within smart growth or mobility hub planning areas. City staff identified an opportunity to reduce VMT, AFFH, and accelerate infill development that Facilitates Housing Supply, Choice, and Affordability with the Imperial Beach Housing Acceleration and Support Program (IB HASP). The City is seeking to submit a Planning Project application for the full grant award amount of $650,000 to implement the IB HASP.
The IB HASP includes two components which include: temporary staff augmentation and the creation of the 13th Street Corridor Improvement Plan.
Regarding the first component, temporary staff augmentation would be provided with the creation of one (1) new temporary full-time position (preferably multi/bi-lingual) within the Housing Division and Planning Division of the Community Development Department. The new temporary full-time staff member would review development project applications, with an emphasis on accessory dwelling unit (ADU) and junior accessory dwelling unit (JADU) projects to facilitate accelerated project approvals, manage the 13th Street Corridor Improvement Plan, and implement/enhance the AFFH actions outlined within the City’s Housing Element. The project (component 1) will make a significant beneficial impact that will lead to substantial changes in land use patterns and accelerate infill development by increasing and facilitating the review/approval of residential developments including accessory dwelling unit (ADU) applications. Starting in 2017, state legislation passed that has facilitated the development of accessory dwelling units. However, this legislation does not exempt projects from the requirements of the Coastal Act. As most of the City of Imperial Beach is located within the Coastal Zone, any new ADU or JADU proposed requires approval of a Coastal Development Permit prior to being able to be submitted for a building permit.
As a direct result, there has been a 95% increase in the total number of planning applications submitted to the City of Imperial Beach. However, in direct contrast to the increased workload for City staff, there has been a 33% decrease in Planning Staff to review these projects. As such, a
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barrier to housing development has been created. To accelerate the review of planning projects, specifically ADUs, there is a need to increase the staff capacity on a temporary basis to review, facilitate, and accelerate the development of ADUs within Imperial Beach. There will also be an emphasis on the creation of tools that will generally streamline the review process, such as the development of online resources and tools accessible to the public. The emphasis on development review would be focused on ADUs as these developments are not considered as counting towards typical density, and inherently provide a substantial change in the developed areas within the City contrasting with the existing underlying land use patterns dictated by current zoning designations.
Regarding the second component, the creation of a 13th Street Corridor Improvement Plan, the plan would include policies and design criteria to reduce VMT and facilitate infill development of the sites identified within the Housing Element site inventory adjacent to this corridor. The project (components 1 and 2) will make a significant beneficial impact that will lead to substantial changes in travel behaviors by completing a comprehensive assessment of the existing 13th Street Corridor. The 13th Street Corridor is currently characterized by high-speed traffic, poorly designed and marked pedestrian facilities, dilapidated and under-utilized structures and properties, and a high concentration of automobile-oriented uses. The City believes that creation and implementation of a Corridor improvement plan would catalyze redevelopment opportunities of adjacent properties, increasing available housing stock, creating positive economic and social benefits, reducing VMT through multi-modal complete street designs, and create better more accessible pedestrian linkages to public transit.
To accept the grant funds, the City Manager or designee would need execute the standard agreement and make the necessary budget adjustments to accommodate the funds and project expenditures.
ENVIRONMENTAL DETERMINATION:
Not a project as defined by CEQA.
FISCAL IMPACT:
There is no fiscal impact to submit the HAP Grant application for $650,000 to implement the IB HASP. Any necessary budget adjustments would occur upon acceptance of the grant funds.
ATTACHMENTS:
1. ATT 1 - Resolution No. 2023-66
ATTACHMENT 1
RESOLUTION NO. 2023-66
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF IMPERIAL BEACH, CALIFORNIA,
AUTHORIZING THE FILING OF AN APPLICATION FOR THE HOUSING ACCELERATION PROGRAM (HAP) CYCLE 2 GRANT FUNDS FROM THE SAN DIEGO ASSOCIATION OF GOVERNMENTS AND ACCEPTING THE TERMS OF THE GRANT AGREEMENT.
WHEREAS, up to $16 million of the Regional Early Action Planning Grants of 2021 (REAP 2.0) allocated funding for SANDAG from the California Department of Housing and Community Development (HCD) is available to local jurisdictions through the Housing Acceleration Program (HAP) Cycle 2 Call for Projects; and WHEREAS, the City of Imperial Beach wishes to receive REAP 2.0 grant funding from SANDAG; and
WHEREAS, City of Imperial Beach certifies that it adopted a Climate Action Plan (CAP) in a public meeting on July 17, 2019 that includes measures to reduce greenhouse gas (GHG) emissions to 1990 levels by 2020 and achieves further reductions beyond 2020 consistent with adopted regional or local GHG emissions reduction targets; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Imperial Beach that the City of Imperial Beach is authorized to submit the following grant application to SANDAG.
Application Type Project Name
Planning Project Imperial Beach Housing Acceleration and Support Program BE IT FURTHER RESOLVED by the City Council of the City of Imperial Beach that, if a grant award is made by SANDAG to fund any of these projects, the City of Imperial Beach commits to providing the match amounts per project as listed in the grant application; and BE IT FURTHER RESOLVED that, if a grant award is made by SANDAG, the City of Imperial Beach authorizes the City Manager or designee to accept the grant funds, execute the grant agreement(s) with no exceptions in substantially the same form as provided with the Call for Projects, complete the Project, and take any actions necessary and appropriate to carry out the intent of this resolution; and
BE IT FURTHER RESOLVED by the City Council of the City of Imperial Beach that the City of Imperial Beach authorizes the City Manager or designee to make any required budget adjustments to accommodate the grant funds and project expenditures; and BE IT FURTHER RESOLVED that, City of Imperial Beach understands and agrees to comply with all applicable REAP 2.0 requirements imposed by HCD; and BE IT FURTHER RESOLVED that, City of Imperial Beach understands and agrees that SANDAG shall have no liability for costs that may arise associated with the Project(s), which are not included in the grant agreement(s), including but not limited to costs stemming from claims, litigation, changes in law, or force majeure events.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Imperial Beach at its meeting held on the 16th day of August 2023, by the following vote:
Resolution No. 2023-66
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
PALOMA AGUIRRE, MAYOR
ATTEST:
JACQUELINE M. KELLY, MMC
CITY CLERK
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August 16, 2023
ITEM TITLE: CONSIDERATION OF A SPECIAL EVENT APPLICATION FOR THE USE OF
PIER PLAZA, IMPERIAL BEACH PIER AND SEACOAST DRIVE BY SAN DIEGO AIR COOLED FOR AIR COOLED FIESTA X. (1040-10)
ORIGINATING DEPARTMENT:
Parks & Recreation
EXECUTIVE SUMMARY:
As part of the Special Event Policies and Procedures, the City Council will consider the approval of special events under the condition that a complete application is submitted by the applicant.
City Staff reviews special event applications for completeness before submitting to the City Council for approval. All permissions and other agency permits must also be obtained before a Special Event Permit is issued. Staff is bringing forward for City Council consideration a special event request for the use of Pier Plaza, Imperial Beach Pier and Seacoast Drive by San Diego Air Cooled for the Air Cooled Fiesta X event that will be held on Sunday, September 24, 2023.
RECOMMENDATION:
Staff recommends the City Council consider the request by the San Diego Air Cooled applicant for the Air Cooled Fiesta X on Sunday, September 24, 2023 at Pier Plaza, Imperial Beach Pier and Seacoast Drive.
OPTIONS:
Approval of the special event; or
Modification to the proposed event; or
Request additional information from applicant and an additional report from staff.
BACKGROUND/ANALYSIS:
Imperial Beach is known for Classic Southern California, a natural tourist destination for visitors to enjoy our beach, parks, and natural resources. The City of Imperial Beach strives to attract events in the community for both residents and visitors to enjoy, aligned with the City’s mission statement: “to enhance and maintain Imperial Beach as a beach-oriented community with a safe, small town, family atmosphere, rich in natural and cultural resources.” San Diego Air Cooled has hosted an annual car show in Imperial Beach utilizing Pier Plaza, Imperial Beach Pier and Seacoast Drive for many years. This year San Diego Air Cooled is requesting the event be held on Sunday, September 24, 2023, from 7:00 a.m. – 2:00 p.m. Event
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set-up will begin on Sunday, September 24, 2023 at 5:00 a.m. for street closure with clean-up ending after the event at 3:00 p.m. A Special Event Application has been provided as part of this report (Attachment 1), a map of the proposed layout (image one) provided by the applicant and footprint with bollards (if used, to close Seacoast Drive) and diagram of cars parked on the Imperial Beach Pier provided by city staff (Attachment 2). City Departments and the special event team have reviewed the application and staff proposed conditions and comments is attached (Attachment 3).
ENVIRONMENTAL DETERMINATION:
Not a project as defined by CEQA.
FISCAL IMPACT:
On April 5, 2023, the City Council approved a moratorium to not waive fees on special events until the City’s fee study and policy is considered by the City Council. The Air Cooled Fiesta X event may require staff onsite during event setup and take down. The event organizers have requested cost to provide bollards, barricades and possibly staff during the Air Cooled Fiesta X event and City staff will be providing the applicant with an estimate.
All event cost including application, site location, street closure and staff fees will be billed to event organizer and will require payment prior to September 24, 2023. A special event permit will not be issued by City staff until all fees are paid, and conditions are reviewed by event organizer. Any related staff or event cost not billed before the Air Cooled Fiesta X Event will be invoiced after if needed as a “cost recovery” based on actual additional staff time occurred during the event.
ATTACHMENTS:
ATT 1 – Air Cooled Fiesta X Application
ATT 2 – Air Cooled Fiesta X Layout Map
ATT 3 – Air Cooled Fiesta X Staff Conditions and Comments
Submission ID: 44eba338-1c76-4c37-90ae-19d31e5ca5ce Page 1/5 Special Event Permit Application
05/23/2023 4:22 PM (PDT)
Special Event Permit Application
Have you reviewed and agree to
adhere to the Special Event
Policies and Procedures to
ensure compliance for the
duration of your event?
Yes
Reminder: Special event applications are due at least 90 days in advance.
Will this event application be submitted at least 90 days before the event? Yes
Event Name Air Cooled Fiesta X
Event Date 09/24/2023
Is your event setup date different
than your event date?
No
Event Setup Time 5:00 AM (PDT)
Event Start Time 7:00 AM (PDT)
Event End Time 2:00 PM (PDT)
What time will you leave the
event venue?
3:00 PM (PDT)
Contact Information
Organization San Diego Air Cooled
Contact Name Dan Decker
Address
Phone Number
Email
Attachment 1
Submission ID: 44eba338-1c76-4c37-90ae-19d31e5ca5ce Page 2/5 Event Day Contact Information
Event Day Contact Dan Decker
Event Day Cell Phone #
Event Day Contact Email
Event Description Car Show
Event Location Seacoast Drive, Portwood Pier Plaza
Estimated Attendance 2000
Estimated Staff/Volunteers 20
Do you have an Imperial Beach Business License? Yes
Have you visited businesses with the Business Verification Form for signatures and provided a notice letter for your event to residents? No Residents and surrounding businesses must be informed of impact at least 10 days prior to event. If there are road closures residents and businesses need to be informed of alternate routes.
Staff Support Request Seacoast Drive Bollards
Electrical Connections
Event Elements Street Closure
Pop-up Canopies
Booth Vendors
Booth Vendors
Any vendors selling cannabis items are strictly prohibited.
Reservation of the Pier Plaza parking lot is required if vendors will be present at your event, additional fees apply.
Please be sure to submit a final vendor form at least two weeks prior to your event.
Quantity of Canopies 6
Size of Canopies 12 ft by 12 ft
Sanitation and Recycling Information
Applicants are responsible for leaving the venue clean with no trash, or empty boxes left behind. A fee will be incurred if the area is not left in good condition. You are required to provide portable restrooms at your event unless you can substantiate the sufficient availability of ADA accessible and non-accessible facilities in the immediate area of the event which will be available to the public during the event. *Applicant must be onsite for all deliveries and pickups.
Trash & Recycling
Submission ID: 44eba338-1c76-4c37-90ae-19d31e5ca5ce Page 3/5 # Trash Cans 6
# Recycling Containers 6
Delivery Date & Time 09/24/2023 5:00 AM (PDT)
Pickup Date & Time 09/24/2023 3:00 PM (PDT)
Portable Restrooms, Handwashing Stations, & 3-Compartment Sinks # Standard Portables 4
# ADA Portables 1
Delivery Date 09/24/2023
Pickup Date 09/24/2023
# of Handwashing Stations 2
Delivery Date 09/24/2023
Pick-up Date 09/24/2023
Traffic and Parking Plan
Traffic and Parking Plan Road Closure
Reserve Pier Plaza Private Parking Lot
Reserve Pier Plaza Green Zone
Road closures require a contract for services with the San Diego County Sheriff Department. Staffing costs are determined by the San Diego County Sheriff Department.
Pier Plaza Parking Lot
Required for vendors additional fees apply.
Any traffic control equipment and personnel will be the responsibility of the applicant to acquire, maintain, and remove. Signage is required to be placed 72 hours prior to event.
All events in Pier Plaza require licensed security at designated areas for parking management.
Medical Plan
Events that involve competitions/fitness, high risk activity, or with an estimated attendance of 1000 or more people as indicated above must provide licensed medical services at the event. If you plan to use City public safety resources (Fire-Rescue or Lifeguards) additional fees will apply.
Will you be using City public safety resources? Yes
What services are you
requesting?
Paramedic services
City public safety is required to maintain a high level of service to the community at all times. Events that require services beyond what the City can provide while still maintaining a high level of service to the community will need to contract with other public safety agencies.
Submission ID: 44eba338-1c76-4c37-90ae-19d31e5ca5ce Page 4/5 Electricity
If you plan to use electricity, please use a licensed electrician to ensure the correct equipment is being utilized. We will not provide electricity to events if it is raining for the safety of participants and attendees. The City of Imperial Beach does not guarantee the reliability of electrical power in public spaces, therefore it is recommended applicants provide alternative sources should failure occur.
Alcohol
We strive to keep events in our community in line with our mission of a family friendly, classic southern California beach atmosphere, and do not permit designated alcohol areas for events in Pier Plaza. We bring events into the community that support our local businesses, so if you wish to have alcohol as part of your event please use one of our local establishments. If you desire to apply for approval, please submit an ABC 221 form for review by San Diego County Sheriff and the City Manager. If approved, licensed security and a San Diego County Sheriff contract are required.
You will need to provide the approved ABC permit a Special Event Permit will be issued.
Will you have alcohol at your event? No
Amplified Sound
The City of Imperial Beach discourages the use of amplified sound for special events, unless deemed necessary.
Are you requesting amplified sound? Yes
Please explain why amplified
sound is necessary for your
event:
Live Music and dance troupe performance.
Are you requesting any fee
waivers or in-kind staff support
for your event?
Yes
Please select all requested
waivable fees
Application Processing Fee
Safety Inspection
Sound Amplification Fee
Cleaning Fee
Reserved Parking Fee
Closed Road Fee
Please select all in-kind staff
support requested
Utility Setup
Bollard Placement (Only available on Seacoast)
Special Requests
Do you have special requests not specified on the application? No Additional documents and permits may be required to supplement your application. Staff will contact you with a list of additional requirements upon reviewing your application.
Upload Layout Map File(s) attached:
Fiesta X Layout Map.pdf
Submission ID: 44eba338-1c76-4c37-90ae-19d31e5ca5ce Page 5/5 Upload Certificate of Liability and
Additional Insured Form CG2026
File(s) attached:
Additional Insured form.pdf
Upload Stormwater Protection
Plan Form
File(s) attached:
Storm Water Form.pdf
Upload Special Event Business
Verification Form
File(s) attached:
Business License.pdf
By signing this application, I agree that I have reviewed the Special Event Rules and Regulations of the City of Imperial Beach, and I will comply with the Special Event regulations.
I, the undersigned, hereby certify and declare under penalty of perjury, that to the best of my knowledge and belief, the information contained in this application is truthful, correct and complete.
I, the undersigned, hereby certify and declare under penalty of perjury, that I will not conduct business activity in violation of any Federal, State, or local laws.
I, the undersigned, further agree and recognize that I am solely responsible and liable for obeying all Federal, State, local laws and my business shall be maintained and operated in accordance with the requirements of all Federal, State, and local laws.
I, the undersigned APPLICANT shall defend (with legal counsel chosen by CITY), indemnify, and hold harmless the CITY from and against any and all claims, damages, demands, suits and/or proceedings of any kind brought by anyone challenging the validity and/or legality of this permit.
I, the undersigned APPLICANT shall defend (with legal counsel chosen by CITY), indemnify, and hold harmless the CITY from and against any and all liability whatsoever that relates in any way to my business that is the subject of this permit and/or arising out of the acts or omissions of APPLICANT in the operation of the business that is the subject of this permit.
I, the undersigned APPLICANT shall pay all costs of defense, including but not limited to, attorneys' fees and costs, City Staff time, and City Attorney time.
Applicant Full Name Daniel Saint Ores Decker
Applicant Signature
Signature Date 05/23/2023
5/23/23, 3:55 PM PIER-PLAZA-MAP-TEMPLATE (456x621)
https://www.imperialbeachca.gov/DocumentCenterNiew/854/PIER-PLAZA-MAP-TEMPLATE?bidld= 1/1 Map submitted by applicant.
Attachment 2
IB BLVD
EBONY
ELKWOOD
ELDER
EVERGREEN
ELM
DATE
DAISY
DONAX
DAHLIA
PALM AVE
EMERGENCY VEHICLE ACCESS
2 BOLLARDS NOT PLACED UNTIL 15
MINUTES PRIOR TO EVENT START TIME.
ATTENDANT CAN MOVE ONCE ALL
BOLLARDS ARE PLACED.
BOLLARD. PLACED AT 5 AM. REMOVED AT 3 PM. ROAD CLOSURE SIGNS TO BE PLACED PRIOR.
EMERGENCY ACCESS. MUST REMAIN CLEAR AT ALL TIMES.
VEHICLES. NOT TO MOVE AT ANY TIME DURING EVENT. ALL PARTICIPANTS ON THE ROAD TO MOVE CAR BY 4 PM FOR ROAD OPENING. ALL VEHICLES ON PLAZA AND PIER TO CLEAR BY 5 PM.
DELINEATORS
BARRICADES PROVIDED BY APPLICANT. ONLY REMOVED FOR RESIDENTS TO ACCESS HOMES AND HOTEL.
BARRICADE SECURITY - TO REMAIN AT BARRICADE FROM THE START OF THE STREET CLOSURE UNTIL THE STREET IS REOPENED. Map created by staff in 2022 to show street closure if using bollards
Map created by staff for 2022 Air Cooled event for cars parked on pier.
Attachment 3
CITY OF IMPERIAL BEACH
PARKS, RECREATION & COMMUNITY SERVICES
CONDITIONS OF APPROVAL
SPONSORING ORGANIZATION: Air Cooled San Diego
EVENT: Air Cooled Fiesta X
PROPOSED EVENT DATE: Sunday, September 24, 2023
APPROVALS:
BUILDING YES [ x ] NO [ ] SEE CONDITIONS [ x ]
MARINE SAFETY YES [ x ] NO [ ] SEE CONDITIONS [ x ]
PUBLIC WORKS YES [ x ] NO [ ] SEE CONDITIONS [ x ]
FIRE-RESCUE YES [ x ] NO [ ] SEE CONDITIONS [ ]
SHERIFF YES [ x ] NO [ ] SEE CONDITIONS [ ]
ENVIRONMENTAL YES [ x ] NO [ ] SEE CONDITIONS [ ]
COMMUNITY DEVELOPMENT YES [ x ] NO [ ] SEE CONDITIONS [ ]
PARKS, RECREATION &
COMMUNITY SERVICES
YES [ x ] NO [ ] SEE CONDITIONS [ x ]
CONDITIONS OF APPROVAL:
Building:
It is the responsibility of the applicant and / or event organizer to ensure that ADA requirements are maintained throughout the event.
Marine Safety:
Cars shall not block pedestrian and public safety access.
Public Works:
All cars must provide oil pans under cars. Any staff time needed to clean-up car oil during or after event will be charged to event producer.
Fire-Rescue:
No comments received.
Sheriff:
Request for extra patrol for the officers on event day.
Environmental:
No comments received
Community Development:
No comments received.
Parks, Recreation and Community Services:
On April 5, 2023, the City Council approved a moratorium to not waive fees on special events until the City’s fee study and policy is considered by the City Council. No fees will be waived for the event.
Event organizer must provide participants with all special event rules and regulations prior to event.
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August 16, 2023
ITEM TITLE: RESOLUTION 2023-64 APPROVING A MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY AND THE IMPERIAL BEACH
FIREFIGHTERS’ ASSOCIATION, LOCAL 4692. (0540-50)
ORIGINATING DEPARTMENT:
Human Resources
EXECUTIVE SUMMARY:
The MOU between the City and the IBFA expired on June 30, 2023. The City’s Labor Negotiation Team and representatives of the bargaining unit held meet and confer meetings in good faith in accordance with the Meyers-Milias-Brown Act and have reached tentative agreements (TA) on the terms and conditions for a new MOU for a period of July 1, 2023 through June 30, 2025. Staff is recommending that the City Council adopt Resolution 2023-64 that would approve a two-year Memorandum of Understanding (MOU) from July 1, 2023, through June 30, 2025, with the Imperial Beach Firefighters’ Association.
RECOMMENDATION:
Staff recommends adoption of Resolution 2023-64 approving the Memorandum of Understanding with the Imperial Beach Firefighters’ Association.
OPTIONS:
Adopt Resolution 2023-64; or
Provide direction to the City Manager to take a specific action.
BACKGROUND/ANALYSIS:
The MOU between the City and the IBFA expired on June 30, 2023. The City’s Labor Negotiation Team and representatives of the bargaining unit held meet and confer meetings since April and continued through early July in good faith in accordance with the Meyers-Milias-Brown Act and have reached tentative agreements (TA) on the terms and conditions for a new MOU for a period of July 1, 2023 through June 30, 2025. IBFA ratified the MOU on August 10, 2023.
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In summary, the parties agreed to the following terms of a new MOU (Attachment 2):
1) A new MOU for the period of July 1, 2023 through June 30, 2025; and 2) Effective July 1, 2023, all fire classification salary ranges will be amended as reflected on Exhibit “A” as part of the MOU; and
3) A 2.5% cost of living adjustment effective July 1, 2024, for all full-time and probationary employees.
4) Health benefits as previously approved as part of a sideletter agreement and being ratified as part of the contract:
5) Sick leave accruals will increase by 1 hour per pay period. 6) An increase to the City’s tuition reimbursement program from $1,000 to $2,000 and increase the annual cap when a career plan is in place. 7) General language improvement and clean up.
The salary schedule ratifying IBFA increases and the amendments to the City’s personnel rules reflecting the sick leave accruals will be presented to the City Council at the next regular meeting along with other personnel adjustments.
ENVIRONMENTAL DETERMINATION:
Not a project as defined by CEQA.
FISCAL IMPACT: All terms in the MOU with IBFA have been calculated to include all applicable employee salary and benefits. The increase to employee costs for the term of the two-year MOU is approximately $234,929 in a two-year period fiscal year 2023/2024 & 2024/2025.
ATTACHMENTS:
ATT 1 – Resolution 2023-64
ATT 2 – IBFA MOU
ATTACHMENT 1
RESOLUTION NO. 2023-64
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF IMPERIAL BEACH, CALIFORNIA,
APPROVING AND ADOPTING THE MEMORANDUM OF UNDERSTANDING (MOU)
BETWEEN THE CITY AND THE FIRE EMPLOYEE MEMBERS OF THE IMPERIAL BEACH FIREFIGHTERS’ ASSOCIATION
WHEREAS, Employer-Employee Relations for the City of Imperial Beach (hereinafter, “City”) are governed by California Government Code Section 3500 through 3511, known as the Meyers-Millas-Brown Act; and
WHEREAS, the employees in the City’s Fire Service (hereinafter, “bargaining unit”) are formally represented by the Imperial Beach Firefighters’ Association, local 4692 (hereinafter, “IBFA”), as the exclusive bargaining agent for the bargaining unit; and WHEREAS, the Memorandum of Understanding (“MOU”) between the City and IBFA for fiscal years 2021-2023 expired on June 30, 2023; and
WHEREAS, the parties held “meet and confer” sessions in an effort to reach an agreement on a new MOU; and
WHEREAS, the City’s Labor Negotiating Team and IBFA tentatively agreed upon provisions for a new MOU for Fiscal Years 2023-2025; and WHEREAS, upon approval of the Resolution by the City Council, the MOU shall reflect the sole agreement of the parties and supersede all prior agreements whether written or oral.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Imperial Beach as follows:
1. The above recitals are true and correct.
2. Approval of a new MOU for a term of July 1, 2023, through June 30, 2025, between the City and the Imperial Beach Firefighters’ Association.
3. PASSED, APPROVED AND ADOPTED by the City of Imperial Beach at its meeting held on the 16th day of August 2023, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
PALOMA AGUIRRE, MAYOR
ATTEST:
JACQUELINE M. KELLY, MMC
CITY CLERK
MEMORANDUM OF UNDERSTANDING
Between
THE CITY OF IMPERIAL BEACH
825 Imperial Beach Boulevard
Imperial Beach, CA. 91932
And
IMPERIAL BEACH FIREFIGHTERS’ ASSOCIATION (IBFA) Local 4692 845 Imperial Beach Boulevard
Imperial Beach, CA. 91932
TERM:
July 1, 2023 – June 30, 2025
ATTACHMENT 2
TABLE OF CONTENTS
ARTICLE PAGE
Preamble . . . . . . . 4
Article 1.0 Management Rights . . . . . . 4
Article 2.0 Employee Rights. . . . . . . 4
Article 3.0 Responsibilities of the IBFA. . . . . 5
Article 4.0 Unfair Employee Relations Practices . . . 5 Article 5.0 Grievance Procedure. . . . . . 6
Article 6.0 Discharge of Other Disciplinary Action. . . . 6 Article 7.0 General Provisions . . . . . . 7
Article 8.0 Out of Classification Pay. . . . . . 8
Article 9.0 Hours of Work . . . . . . 8
Article 10.0 Sick Leave . . . . . . . 10
Article 11.0 Holiday and Vacation Benefits. . . . . 14
Article 12.0 Educational Benefits. . . . . . 15
Article 13.0 Employee Benefits . . . . . . 16
Article 14.0 Uniform Replacement Allowance. . . . . 19
Article 15.0 Physical Examination . . . . . 20
Article 16.0 Prevailing Benefits . . . . . . 20
Article 17.0 Service to the Public . . . . . . 21
Article 18.0 Term . . . . . . . . 21
TABLE OF CONTENTS
(Continued)
Article 19.0 Salaries . . . . . . . 21
Article 20.0 Retirement Benefits . . . . . . 21
Article 21.0 Recognition . . . . . . . 23
Article 22.0 Payroll Deduction of Dues . . . . . 23
Article 23.0 Rules and Regulations . . . . . 23
Article 24.0 Re-negotiation . . . . . . 24
Article 25.0 Implementation . . . . . . 24
Article 26.0 Emergency . . . . . . . 24
Article 27.0 Employee Assistance Program . . . 25
Article 28.0 Savings Clause . . . . . 25
Article 29.0 Agreement Review . . . . . . 25
Article 30.0 Catastrophic Leave . . . . . . 25
Article 31.0 Re-opener Provisions . . . . . 25
Article 32.0 Paramedic License . . . . . . 25
Article 33.0 Minimum Staffing . . . . . . 25
Article 34.0 Mandatory Mess . . . . . . 25
Article 35.0 Bilingual Pay Differential . . . . . 26
Exhibits:
Exhibit “A” IBFA 2023-2025 Salary Schedule
4 Preamble
Representatives of the City of Imperial Beach and the Imperial Beach Firefighters’ Association Local 4692 have met and conferred in good faith regarding wages, hours and other terms and conditions of employment and have exchanged freely information, opinions and proposals in a sincere effort to reach agreement on all matters relating to the employment conditions and employer-employee relations of such employees.
This Memorandum of Understanding hereinafter referred to as “M.O.U” is entered into pursuant to the Meyers-Millas-Brown Act (Government Code Section 3500-3511) and has been jointly prepared by the parties. This M.O.U shall constitute the whole and entire existing agreement for salary and fringe benefits applicable to members of the Imperial Beach Firefighters’ Association Local 4692 hereinafter referred to as “ASSOCIATION”, and it supersedes all prior agreements, commitments, and practices. This M.O.U. shall be presented to the Imperial Beach City Council as the joint recommendations of the undersigned for employee salary and fringe benefits adjustments for a four-year (4) period commencing July 1, 2023 through June 30, 2025.
Article 1.0 Management Rights
It is agreed that the City of Imperial Beach, hereafter to be referred to as the “CITY” has the exclusive right to determine the mission of each of its constituent departments, divisions, boards, and commissions; to set standards of selection for employment and promotion; to exercise control and discretion over its organization and operations; to direct its employees and to take disciplinary action for proper cause; to relieve its employees from duty because of lack of work or other legitimate reasons; to maintain the efficiency of governmental operations; to determine the methods, means and personnel by which government operations are to be conducted; to determine the context of job classifications; to take all necessary actions to carry out its mission in emergencies; and to exercise complete control and discretion over the technology of performing its work.
The exercise of such rights shall be reasonable and shall not preclude employees of the ASSOCIATION from meeting and conferring with management representatives about the effect that these decisions may have on matters pertaining to wages, hours, and other terms and conditions of employment.
Article 2.0 Employee Rights
It is agreed that each individual employee shall have the following rights which he/she may exercise in accordance with applicable laws, ordinances, and rules and regulations:
a. The right to form, join, and participate in the activities of employee organizations of his/her own choosing for the purpose of representation on matters of his/her employee relations with the CITY, or to refuse to join or participate in the activities of any organization.
5 b. The right to be free from interference, intimidation, restraint, coercion, discrimination, or reprisal on the part of his/her department head, his/her supervisor, or other employees, or employees organizations, with respect to his/her membership or non-membership in any employee organization or with respect to any lawful activity associated therewith which is within the scope of representation.
c. The right to represent himself/herself individually in his/her employee relations with the CITY or through an authorized ASSOCIATION representative.
It is agreed that whenever a CITY employee desires to represent himself/herself in consulting with CITY management during his/her regular hours of work, he/she shall first request and obtain from his/her department head permission to take time off to do so, which permission shall not be unreasonably withheld.
Article 3.0 Responsibilities of the Imperial Beach Firefighters’ Association Recognizing the crucial role of the CITY in the preservation of the public health, safety and welfare of a free society, the ASSOCIATION agrees that it will take all reasonable steps to cause the employees covered by this agreement, individually and collectively, to perform all of their assigned duties, rendering loyal and efficient service to the very best of their abilities.
The ASSOCIATION, therefore, agrees that there shall be no interruption of these services for any cause whatsoever by the employees it represent; nor shall there by any concerted failure by them to report for duty; nor shall they absent themselves from their work or abstain, in whole or in part, from the full, faithful, and proper performance of all the duties of their employment.
The ASSOCIATION further agrees that it shall not encourage any strikes, sit-downs, stay-ins, slow downs, stoppages of work, malingering, or any acts that interfere in any manner or to any degree with the continuity of all CITY services during the term of this agreement.
A reasonable amount of space shall be provided to the ASSOCIATION on CITY bulletin boards at the Fire Department for legitimate ASSOCIATION communications with members including posting announcements, news items, meeting notices, agendas, training notices, and social activities. The ASSOICATION shall be responsible to maintain space provided in an orderly condition and shall promptly remove outdated materials.
Article 4.0 Unfair Employee Relations Practices
1. It is agreed that it shall be unfair employee relations practice for the CITY and its management representatives:
6 a. To interfere with, restrain, discriminate, intimidate, or coerce employees in the exercise of the rights recognized or granted in the M.O.U. b. To dominate or interfere with the formation of any employee organization or contribute financial support to it, provided the rights recognized or granted to employee organizations in this M.OU. shall not be construed as financial support. c. To refuse to meet and confer in good faith with representatives of recognized employee organizations on matters within the scope of representation.
2. It is agreed that it shall be an unfair employee relations practice for the ASSOCIATION, its representatives, or members:
a. To interfere with, restrain, discriminate, intimidate, or coerce employees in the exercise of the rights recognized or granted in the M.O.U. b. To refuse to meet and confer in good faith CITY officials on matters within the scope of representation.
c. To refuse to furnish the CITY in writing the names of its representatives, shop stewards and/or their alternates.
Article 5.0 Grievance Procedure
It is agreed that the ASSOCIATION shall have the right to assist any employee covered by this M.OU. who requests representation of his/her grievance and/or work safety measures for consideration of CITY representatives. The CITY shall release authorized personnel during normal work hours to resolve such grievances, and the pay for such personnel will continue during this period, but overtime pay will not be authorized.
The Grievance Procedure is in the City of Imperial Beach Personnel Rules Article X- Grievance Procedure, and incorporated herein.
Article 6.0 Discharge or Other Disciplinary Action
It is agreed that the CITY shall advise the employee involved of his/her right to representation and a statement in writing for the reason or reasons for taking any disciplinary action against him/her.
It is agreed that all appeals relating to disciplinary action shall be submitted in writing to the CITY in accordance with Article IX – Discipline Procedure of the City of Imperial Beach Personnel Rules, incorporated herein.
7 Article 7.0 General Provisions
1. Dismissal During Probation: It is agreed that the CITY shall have the right to dismiss for cause any newly hired employee during the twelve (12) month probationary period. Such discharge shall not be subject to the Article X - Grievance Procedure or to Article IX - Discipline Procedure of the City of Imperial Beach Personnel Rules.
2. Discrimination: It is agreed that there shall be no discrimination on the part of the CITY or the ASSOCIATION in accordance with the Equal Employment Opportunity Commission, ASSOCIATION membership or non-ASSOCIATION membership.
3. Personnel Folder: Employees have the right to review their individual personnel folder in the presence of a Human Resources Department employee. Access shall be scheduled at the convenience of the employee and the Human Resources Department. Copies of all materials to be included in personnel folders shall be provided to individual employees.
4. Visitation Rights: It is agreed that the authorized representatives of the ASSOCIATION shall be allowed to visit the CITY’s work premises for the purpose of ascertaining whether or not this M.OU. is being observed, to have access to the bulletin boards, and the right to be present at any meeting between the stewards and the employer. If he/she desires to interview any employee privately, he/she shall be permitted to do so during work hours, with the permission of the employee’s immediate supervisor or superior.
The Business Agent or authorized representatives shall not interfere with the normal work hour operations or cause unnecessary loss of time to the CITY.
5. Residence Location: It is agreed that the employees shall keep the CITY informed immediately of any change of their telephone number and mailing address. The CITY shall be deemed to have satisfied all notification requirements under the MOU by attempting to contact the employee through the last address of record.
6. Training Sessions: Employees may be required to attend training sessions necessary to job indoctrination, performance, supervision, workplace safety, and any other training deemed necessary by the CITY, which will be on CITY time.
7. Quarterly Meetings: That supervisory personnel (Fire Captains) with reasonable advance notice, shall be required to attend quarterly Fire Department regular meetings. This will be compensated time considered necessary and required for departmental training and operational readiness.
8. Association Business: The CITY agrees to provide time off with pay for representatives of the ASSOCIATION when such representatives are meeting with the CITY on matters within the scope of representation.
9. Direct Deposit: All current and new employees shall be required to sign up for direct deposit.
8 10. California Office of Emergency Services Responses: In accordance with revisions to the California Fire Assistance Agreement effective January 1, 2015, the City will compensate Employees portal to portal while in the course of their employment and away from their official duty station and assigned to an emergency incident, in support of an emergency incident, or pre-positioned for emergency response.
11. Trial Schedules: The CITY and the UNION may conduct trial schedules. Trial schedules may begin on the first day of the month following the effective date of this MOU.
Following the completion of a trial, unless ended by the Chief prior due to operational and service delivery concerns, a meeting shall be held and the merits of the alternative schedule, including but not limited to the operations, logistics, training, and overall service delivery, shall be evaluated and a recommendation shall be submitted to the Chief for his/her consideration and determination to continue or conclude the alternative schedule.
Article 8.0 Out-of-Classification Pay
An employee who is assigned in writing to work in a higher classification during the fiscal year will at the next appropriate bi-weekly payroll period be paid for these shifts at the salary schedule for the higher classification that is the lowest step that is at least 5.0% (five percent) higher than current salary. It is understood that only one Fire Engineer or Engineer/Paramedic and one Captain or Captain/Paramedic will serve each shift.
Article 9.0 Hours of Work
1. Work Week: Fifty-six (56) hours shall constitute a normal workweek. Two (2) consecutive twenty-four (24) hours shall constitute a normal shift for shift personnel.
The 48/96 shift schedule shall be the recognized schedule for IBFA personnel as agree upon by both the ASSOCIATION and the CITY. In special situations, with the mutual agreement of the employee and management, different hours of work may be scheduled.
2. Overtime Defined: Overtime work shall include only time worked by employees at the request of department heads, authorized and approved by the City Manager, and that is in excess of the established workday and/or workweek for that class and department. This overtime shall be compensated by cash payment at one and one-half times the regular rate of pay. The smallest unit of time to be used computing overtime shall be one-quarter (1/4) hour.
3. Fair Labor Standard Act (FLSA) Wages: The FLSA overtime shall be calculated based on a 24-day work cycle and overtime shall be paid for all hours worked over 182 hours.
Paid leave (including but not limited to vacation, floating holidays, or jury duty), will be included as hours worked for purposes of calculating overtime.
9 EMPLOYEES shall be compensated one-half time at 6.00 hours per pay period to meet the minimum requirements in accordance with FLSA standards.
The twenty-four (24) day work cycle does not apply to EMPLOYEES on a modified work schedule of 40 hours per workweek. Employees working a modified work schedule are not authorized to work overtime (over 40 hours in a work week) without the written permission of the Fire Chief.
4. Call-Back Pay: An employee called-back to work due to the deployment of a strike team or a major emergency incident shall receive a minimum of not less than two (2) hours at one and half (1-1/2) times his rate of pay based on a 56 hour workweek for such callback, even if less service is required. Employees on vacation when called back remain on vacation for pay to the employee, and vacation usage purposes, but get time and onehalf pay for all time served with the minimum pay requirement applicable.
5. Forced Holdover Pay: At the end of an employee’s shift, if the employee is held over as a result of a force hire situation, the employee will be compensated at one and a half (1.5) times the employee’s regular rate of pay. These occurrences shall be notated in the captain’s log and the employee’s time card as a force hire.
6. Salary Increases: Salary increases that are based on a known date such as longevity pay and step increases shall commence on the first day of the pay period following the anniversary date.
7. Promotion Salary: Upon promotion, an employee’s new pay scale shall be at least 5.0% (five percent) higher or shall fall upon the nearest step within the range of the classification being promoted to, whichever is higher. A person can never be paid higher than the highest step of the pay range of the classification to which they are being promoted.
8. Mileage Reimbursement: Employees using their own car on authorized CITY business shall receive thestandard rate for transportation or travel expense as set yearly by the Internal Revenue Service (IRS). .
9. Working Down: Overtime for work in a lower classification will be paid at the employees current rate of pay. Captains cannot fill Firefighter/Paramedic vacancies unless they are a currently licensed paramedic.
10. Work Hours: When not engaged in emergency activity, the Daily Shift Schedule will be as follows:
o Morning Work Period- 0730-1100 hours
o 1 Hour Lunch Break between 1100-1300 hours
o Afternoon Work Period from 1300-1700hours
o Work to be performed during the Daily Shift Schedule will include but not be limited to: Station and Apparatus Maintenance; Fire Operations and EMS Training; Pre-Fire Planning; Fire Prevention Inspections which include Residential and
10 Commercial Rentals, Commercial Properties, Weed Abatement and Alley Inspections; Community Education Programs; CITY CPR Instructor/Trainer, and other duties as assigned.
Employees may begin their physical fitness program at 0730 provided that they are available to respond, if necessary, and as long as the employee finishes the workout, showers and is in uniform by 0930. Captains are responsible for ensuring that their crews utilize this time for working out. Otherwise, all physical training will be performed after the end of the afternoon work period. Employees may begin their physical fitness program at 1630 if they are unable to workout in the morning.
The CITY and the ASSOCIATION agree that there shall be a CPR instructional program under the direction of the Fire Chief.
In the event of operational needs, this section can be modified at any time at the direction of the Fire Chief to meet the needs of the CITY.
Article 10.0 Sick Leave
Sick leave benefits are subject to the Healthy Workplaces/Healthy Families Act of 2014, and any subsequently adopted state regulations. If there is a conflict between this MOU and the requirements of the Healthy Workplaces/Healthy Families Act of 2014 or any duly adopted state regulations, the Healthy Workplaces/Healthy Families Act and/or state regulations shall prevail.
Full-Time City Employees:
It is agreed that sick leave for each probationary and regular full-time employee in the CITY service is subject to Imperial Beach Personnel Rules Article VII Section 5 and to the following provisions authorized as follows:
1. Sick Leave Accrual:
a. Employees hired prior to July 1, 2011- Employees shall accrue sick leave with pay at the rate of 13.85 (6.39 hours per pay period)hours for each full month of service for a total of 166 for each full twelve months of service. A maximum of 1400 hours may be accumulated.
b. Employees hired on or after July 1, 2011- Employees shall accrue sick leave with pay at the rate of 13.85 (6.39 hours per pay period)hours for each full month of service for a total of 166 for each full twelve months of service. A maximum of 1120 hours may be accumulated.
c. Employees hired on or after July 1, 2019- Employees shall accrue sick leave with pay at the rate of 13.85 (6.39 hours per pay period)hours for each full month of
11 service for a total of 140 for each full twelve months of service. A maximum of 784 hours may be accumulated.
2. Sick Leave Permitted: Sick leave shall not be considered as a privilege which an employee may use at his own discretion but shall be granted only upon the recommendation of the department head. Employees may use accrued sick leave with pay for absences necessitated as follows:
a. Actual personal sickness or disability for the first fourteen (14) calendar days; thereafter, as a supplement (up to 100% of basic wages) to shortterm or long-term disability insurance; b. Medical or dental treatment for the first fourteen (14) calendar days; thereafter, as a supplement (up to 100% of basic wages) to short-term or long-term disability insurance; or
c. In case of emergency illness, including contagious disease, or injury in the immediate family or domestic partner. To be eligible for the domestic partner benefit, the employee must register their domestic partner with the State of California and provide proof to the City; or
d. Bonding time after the birth or adoption of a child as specified in Section 3 below.
3. Sick Leave Usage for Family Bonding Time: Eligible employees may be permitted to use sick leave in accordance with the Family Medical Leave Act and the California Family Rights Act.
4. Sick Leave Payoff:
a. Employees hired prior to July 1, 2011- On June 30, each year, regular employees shall receive cash payment for accrued sick leave in excess of 1,400 hours. i. Upon separation in good standing after five (5) years of completed CITY service, regular employees shall receive a cash payment for 50% of up to 1400 accrued sick leave hours, with a maximum cash payment for no more than 700 accrued sick leave hours.
ii. Upon retirement from CITY service, regular employees may choose between the following two options:
1. Regular employees shall receive cash payment for 50 percent (50%) of their accrued hours of sick leave to a maximum of 700 hours. The remaining fifty percent (50%) of accrued sick leave hours will be reported to CalPERS for conversion to service credit.
12 2. Regular employees may choose to report one hundred percent (100%) of accrued sick leave hours to CalPERS for conversion to service credit. iii. Upon the death of a regular employee after five (5) years of completed City service:
1. For a deceased employee who was eligible to retire at the time of death, the City will report one hundred percent (100%) of the employee’s accrued sick leave at the time of death to CalPERS for conversion to service credit.
2. For a deceased employee who was not eligible to retire at the time of death, the employee’s beneficiary shall receive a sick leave cash payment for fifty percent (50%) of the accrued hours of sick leave to a maximum of 700 hours.
b. Employees hired on or after July 1, 2011- On June 30, each year, regular employees shall receive cash payment for accrued sick leave in excess of 1120 hours. i. Upon separation in good standing after five (5) years of completed CITY service, regular employees shall receive a cash payment for 50% of up to 1120 accrued sick leave hours, with a maximum cash payment for no more than 560 accrued sick leave hours.
Upon retirement from City service, fifty percent (50%) of accrued sick leave hours will be reported to CalPERS for conversion to service credit. c. Employees hired on or after July 1, 2019 – No cash payment for accrued sick leave in excess of 784 hours.
i. Upon separation in good standing after five (5) years of completed CITY service, regular employees shall receive a cash payment for 50% of up to 784 accrued sick leave hours, with a maximum cash payment for no more than 232.5 accrued sick leave hours.
Upon retirement from City service, fifty percent (50%) of accrued sick leave hours will be reported to CalPERS for conversion to service credit.
5. Sick Leave Modification: Should a shorter workweek be mandated during the life of this agreement, sick leave accrual rates will be adjusted to:
Firefighter’s workweek x 100 hours per year
40 and 1, 2, and 3 above will be adjusted accordingly.
13 6. Sick Leave Payoff Procedure: Sick leave when paid off upon separation shall be compensated at the hourly rate paid the employee at the time of payoff. For computation of separation, employees will have oldest sick leave deducted first when used.
Part- time Employees:
7. Pursuant to the Healthy Workplaces/Healthy Families Act of 2014, effective July 1, 2015, or upon hire, whichever is later, a part-time employee will receive 72 hours (3 days) of paid sick leave to be used during that fiscal year. Thereafter, on July 1st of each year, part-time employees will be provided with 72 hours or 3 days of paid sick leave that may be used during that fiscal year. Unused paid sick leave must be used during the fiscal year earned and does not rollover from fiscal year to fiscal year. Part-time employees are not entitled to cash out unused paid sick leave at any time nor upon separation from employment. Part-time employees may begin using paid sick leave upon their 90th day of employment.
All Employees:
8. In accordance with the Healthy Workplaces/Healthy Families Act of 2014, employees may use up to 72 hours (3 days) of paid time off for sick leave for the following purposes:
A) Diagnosis, care, or treatment of an existing health condition of, or preventive care for, an employee or an employee’s family member.
Family member includes any of the following:
1. A child, including biological, adopted, or foster child, stepchild, legal ward, or a child to whom the employee stands in loco parentis, regardless of the child’s age or dependency status.
2. A biological, adoptive, or foster parent, stepparent, or legal guardian of an employee or the employee’s spouse or registered domestic partner, or a person who stood in loco parentis when the employee was a minor child.
3. A spouse.
4. A registered domestic partner.
5. A grandparent
6. A grandchild
7. A sibling
14 B) For an employee who is a victim of domestic violence, sexual assault, or stalking:
1. To obtain or attempt to obtain any relief, including, but not limited to, a temporary restraining order, restraining order, or other injunctive relief, to help ensure the health, safety, or welfare of the employee or his or her child.
2. To seek medical attention for injuries caused by domestic violence, sexual assault, or stalking.
3. To obtain services from a domestic violence shelter, program, or rape crisis center as a result of domestic violence, sexual assault, or stalking.
4. To obtain psychological counseling related to an experience of domestic violence, sexual assault, or stalking.
5. To participate in safety planning and take other actions to increase safety from future domestic violence, sexual assault, or stalking, including temporary or permanent relocation.
9. Sick leave conversion into the Health Retirement Account (HRA) will occur in accordance with the signed agreement between the City and the ASSOCIATION.
The City’s Personnel Rules shall be revised and amended to reflect these changes.
Article 11.0 Holiday and Vacation Benefits
1. FLOATING HOLIDAYS:
Employees shall receive 48 hours of floating holiday leave per fiscal year in the first pay period in July to be taken on a day mutually agreeable to the employee and the department head. Floating holidays will be prorated as follows for new employees:
a. A new employee with a hire date in July through December will receive forty-eight (48) hours of floating holiday time in the fiscal year during which the employee is hired;
b. A new employee with a hire date in January and February will receive twenty-four (24) hours of floating holiday time in the fiscal year during which the employee is hired;
c. A new employee with a hire date in March and April will receive twelve (12)hours of floating holiday time in the fiscal year during which the employee is hired;
15 d. A new employee with a hire date in May and June will not receive any floating holiday leave in the fiscal year during which the employee is hired.
The 48 hours of floating holiday will expire on June 30 th of each year. The employee may
not roll over any unused floating holiday into the following fiscal year.
If Juneteenth becomes a mandatory holiday, the floating holiday will be reduced to 24 hours per fiscal year and Juneteenth will become a recognized holiday and added to the vacation accrual.
2. VACATION ACCRUAL: Effective July 1, 2019, or MOU ratification, the UNION will receive a new vacation accrual structure, which will be outlined in Article VII Section 4 of the City of Imperial Beach Personnel Rules.
3. VACATION TIME-SELLING: Permanent Firefighter personnel may sell back accumulated vacation twice a year. A maximum of 112 hours the first pay period in June and 112 hours the first pay period in December at the employee’s current rate of pay when the vacation is sold back. A minimum of 112 hours must remain each time in the year the employee sells vacation.
Article 12.0 Educational Benefits
The CITY, as employer shall maintain a program providing for the partial refund of tuition and fees for all courses taken by employees when such courses are included in the courses required to obtain or maintain a job-related certificate, Associates in Fire Science or Baccalaureate Degree in Public Administration or any other course previously approved by the department head. Those employees who are full-time, permanent and have completed a probationary period are eligible for tuition reimbursement. The CITY agrees to budget for $2,000 per year per full-time, permanent employees that have completed a probationary period for fees and/or tuition for such firefighting classes, seminars, etc. The program will allow full-time, permanent employees that have completed a probationary period to exceed $2,000 for tuition reimbursement if they are working towards a Baccalaureate or Masters Degree in Public or Business Administration, Associates in Fire Science, Fire Officer Certificate, or other job related degree or certificate, provided that the department head pre-approves a Career Plan submitted by the employee. An approved Career Plan is required in order for an employee to exceed $2,000 in reimbursements. All classes would require prior approval of the department head and Human Resources Department for the employee to receive any reimbursement. The employee shall be reimbursed for fees and/or tuition only upon conclusion of each individual with a grade as noted in the chart below, or successful completion of courses that do not assign grades. Proof of satisfactory course completion and payment must be provided. Effective July 1, 2023, the City will reimburse employees in excess of $2,000 with an approved Career Plan the equivalent of attending
16 a non-profit university. The cost of attendance includes tuition expenses, books, and related supplies. The chart below are the maximum amounts the City will reimburse:
Professional
Certifications
Pass; complete
certification
Tuition, fees, books,
and supplies
$5,100per the
program or per year
Associates Minimum of a
grade “C” or
better
Tuition, fees, books,
and supplies
$5,100 per year
Undergraduate Minimum of a
grade “C” or
better
Tuition, fees, books,
and supplies
$9,690per year
Graduate Minimum of a
grade “B” or
better
Tuition, fees, books,
and supplies
$12,240per year
The City will not pay for housing and food, international tuition and fees, transportation, personal or miscellaneous and personal expenses. Study abroad requests will be evaluated and approved by the City Manager and/or theChief Administrative Officer..
Upon proof of completion, full-time permanent members of the ASSOCIATION that have completed a probationary period will be eligible for an educational incentive as follows:
California State Fire Marshal’s Fire Officer $50.00 per month paid bi-weekly.
Certificate or all the required classes as of
January 1, 2016, or an Associate degree
Bachelor’s degree $60.00 per month paid bi-weekly
Master’s degree $70.00 per month paid bi-weekly
Employees will not receive an education incentive payment for any degrees or certificates required as a minimum qualification of the position. The fire officer stipend can be combined with the degree stipend, but two-degree stipends cannot be combined.
CITY agrees to the continuation of an Employee Computer Purchase Program available to all CITY employees after successfully completing probationary period during the term of this agreement subject to budgetary constraints and City Council approval.
Article 13.0 Employee Benefits
If the Federal Affordable Care Act (ACA) or Internal Revenue Services (IRS) implementing regulations, or similar California legislation impact the benefit plans covered by this MOU, the parties agree to reopen negotiations to meet and confer over any related mandatory subjects of bargaining.
17 The CITY is required by law to administer the ACA and IRS regulations will implement administrative guidelines such as the stabilization and look back periods for all employees in a manner that provides ease of CITY administration.
1. Cafeteria Plan Allotment
The City will use Kaiser and Sharp Family monthly premiums as a benchmark, annually, the CITY will set the Cafeteria Plan allotment to the cost of the monthly premium from these two-family plans using the lesser of the two. For example, in 2023, the Sharp family monthly premium will be $1,988.90 and Kaiser at $1,966.15. Therefore, the 2023 Cafeteria Plan allotment will change from $1,900 as previously negotiated to $1,966.15 (Kaiser), which is the lowest premium of the two plans.
The CITY and the ASSOCIATION understand that the premiums are difficult to project, therefore, in the event that the lowest family premium of the two plans is lower in the subsequent year, the cafeteria allotment amount shall not be reduced and shall remain the same in the following year. In the event Kaiser or Sharp drop from CalPERS, then the next two lowest cost premium family plans will be utilized as the new benchmark.
The employee will pay for any premiums in excess of the monthly Cafeteria Plan allotment through payroll deductions. Employees that elect a plan that is less than the Cafeteria Plan allotment will not receive any taxable credit. Employees that waive insurance will not receive any taxable credit.
The Cafeteria Plan allotment may be used to purchase City provided medical, dental and vision coverage for all full-time employees and their eligible dependents on a pre-tax basis to meet IRS regulations. The election of dental and vision plans is not required and are deemed voluntary elections. Employees will not be able to purchase flexible spending accounts utilizing the Cafeteria Plan allotment.
Health benefits are effective the first of the month following hire date. The Cafeteria Plan allotment terminates the last day of the month upon separation.
Effective January 1, 2017, there will be no taxable cash out benefit.
Those EMPLOYEES who elect not to be covered under the CITY’s medical health insurance plan must demonstrate proof of alternative medical insurance (i.e. spouse or independent insurance coverage).
The CITY shall pay any applicable mandatory minimum employer contribution for retiree health as required by law.
18 2. Flexible Spending Accounts for Health Care and Dependent Care:
Two Flexible Spending Accounts (FSA's), under Section 125, 105, 129 and 213 of the Internal Revenue Service’s Code are offered to all represented employees. An EMPLOYEE may elect to budget by salary reduction, for certain healthcare and dependent care reimbursements on a pre-tax basis. If the CITY does not meet IRS regulations or if the IRS regulations change for any reason, this benefit may be discontinued.
a. Healthcare FSA
Before the start of the FSA plan year (January 1 to December 31), represented employees may contribute the maximum amount not to exceed the Internal Revenue Service (IRS) plan year. for eligible healthcare expenses. Salary reductions will accrue bi-weekly during the plan year and reimbursements will be made on a schedule to be determined by the CITY. This is a reimbursement program.
Participating employees must submit documentation of payment on the appropriate forms to receive reimbursement. Salary reductions not spent by the end of the plan year, by law, are forfeited to the CITY.
b. Dependent Care FSA
Before the start of the FSA plan year (January 1 to December 31), represented employees may contribute the maximum amount not to exceed the Internal Revenue Service (IRS) plan year to pay for eligible dependent care. Salary reduction will accrue bi-weekly during the plan year and reimbursements will be made on a schedule to be determined by the CITY. Dependent care must qualify under all pertinent IRS regulations. This is a reimbursement program. Participating employees must submit documentation of payment and other information related to dependent care arrangement to receive reimbursement. Salary reductions not spent by the end of the plan year, by law, are forfeited to the CITY.
c. FSA Administration
The CITY reserves the right to contract with the Third-Party Administrator (TPA) for administration of both FSA's. The CITY will pay the start-up costs associated with the third-party administration, if any required. The CITY pays monthly administration fees.
3. Short Term Disability (STD), Long Term Disability (LTD) and Group Term Life Insurance:
Each employee will be provided Group Term Life Insurance as agreed to through negotiations. Employees may purchase Voluntary Life Insurance at an Employee’s own cost as an after-tax deduction.
19 Each employee will participate in the CITY’s STD and LTD Plans. Employees are required to file for STD or LTD after fourteen (14) consecutive calendar days of absence due to illness, contagious disease, injury or an authorized absence for medical care and/or appointments. STD and LTD premiums are paid by the EMPLOYEE as an after-tax deduction.
4. Enrollment and Election:
Election under the CITY's Cafeteria Plan shall take effect on the first of the month following 30 days after approval of the request and/or eligibility for health insurance.
Payment shall be divided equally between the first two paydays in each month. If the CITY significantly alters the payment schedule, this payment schedule will be subject to meet and confer.
Once this election is made, the EMPLOYEE will not be allowed to change except as follows:
a. At the next open enrollment
b. Subsequent to proof or loss of coverage under the spouse's plan, reenrollment may occur on the first of the month following 30 days after notice of this event is given to the CITY Human Resources Department via approved and completed enrollment forms.
c. As allowed under any federal or state regulations.
d. The CITY shall not be liable for any medical costs resulting to the employee as part of this election.
5. Health Insurance Committee
The Health Insurance Committee was established for the purpose of investigating and reviewing health related matters and all insurance options, including health, life, disability, etc. The Health Insurance Committee will continue to meet as necessary.
Matters subject to the duty to bargain may be discussed, however, the Insurance Committee shall not have the authority to add to, amend, or modify this Agreement. The CITY and the Firefighters agree to reopen negotiations during the term of this MOU to consider changes to matters investigated and reviewed by the Insurance Committee.
If any legally mandated changes to health insurance should occur during the term of this MOU, both parties agree to re-open negotiations to meet and confer over any related mandatory subjects of bargaining.
20 Article 14.0 Uniform Replacement Allowance
Fulltime permanent employees will receive a uniform allowance in the amount of $50.00 per payperiod paid with their regular checks for the purchase, rental, and/or maintenance of uniforms.
Company Officer shall have a daily inspection of personnel uniforms and a quarterly inspection in writing signed off by the Fire Chief. Uniforms are expected to be clean, in good shape, no tears or stains, and in quality and professional condition.
For employees that are classic members (as defined by PEPRA), CalPERS considers the uniform allowance to be a form of compensation. Therefore, the uniform allowance amount will be reported to CalPERS on an annual basis in the same payperiod received as part of the employee’s annual gross income. For employees considered new members (as defined by PEPRA), the uniform allowance amount will not be reported to CalPERS as special compensation in accordance with PEPRA.
For new firefighter employees, the CITY will purchase two pair of nomex uniform shirts, two pair of nomex uniform pants, and one winter jacket, and provide the uniforms to the new employees on the first day of employment. In addition, the CITY will reimburse new employees the cost of four t-shirts and two shorts within the first year of employment. The t-shirts and shorts must meet CITY uniform requirements. For employees that are classic members (as defined by PEPRA), the City will report the monetary value of these uniforms to CalPERS in the payperiod the uniforms are provided to the employee, and in the payperiod the reimbursement is provided to the employee. For employee considered new members (as defined by PEPRA), the monetary value of the uniforms will not be reported to CalPERS as special compensation in accordance with PEPRA.
Beginning January 1, 2006 only nomex uniforms will be permitted.
Article 15.0 Physical Examinations
The CITY will provide comprehensive physical examinations annually for all firefighting personnel. The medical evaluation shall include health risk assessment, lab, respiratory fitness, medical evaluation, and fitness evaluation.
New employees must provide a CPAT certificate six months prior to date of hire.
All employees will attend San Diego Sports Medicine activities during a scheduled or assigned shift.
In keeping with the intent of the Fire Service Joint Labor Management Wellness-Fitness Initiative, participation in the complete wellness program shall be non-punitive.
21 Article 16.0 Prevailing Benefits
All benefits, privileges and working conditions within the scope of representation which are not included in this agreement shall continue during the term of this agreement unless modified as a result of meeting and conferring between the parties as required by State Law.
Article 17.0 Service to the Public
The Imperial Beach Firefighters’ Association will actively assist in and encourage improved service to the citizens of Imperial Beach and the ASSOCIATION members will at all times provide helpful and courteous service to the citizens of Imperial Beach.
Article 18.0 Term
The term of this M.O.U. shall be for a two (2) year period commencing July 1, 2023 and ending June 30, 2025. This M.O.U. shall remain in effect and shall not expire prior to June 30, 2025.
Article 19.0 Salaries
Effective July 1, 2023, all fire classification salary ranges will be amended as reflected on Exhibit A.
Effective July 1, 2024, all full-time permanent and probationary employees shall receive a 2.5% cost of living increase (COLA).
Article 20.0 Retirement Benefits
Retirement benefits are subject to the Public Employees Pension Reform Act (PEPRA) and related Public Employees’ Retirement Law (PERL). If there is a conflict between this MOU and requirements pursuant to PEPRA and/or PERL, PEPRA and PERL shall prevail.
1. The City contracts with the California Public Employees’ Retirement System (“CalPERS” or “PERS”) to provide retirement benefits for its employees. Pursuant to prior agreements and state mandated reform, the City has implemented first, second, and third tier retirement benefits as follows:
a. Fire Employees (Classic Member – Tier 1): The CalPERS formula for employees hired prior to July 1, 2011, shall be at 3% at 50 with the use of average of the employee’s highest-one-year salary.
22 b. Fire Employees (Classic Member – Tier 2): The CalPERS formula for employees hired on or after July 1, 2011, shall be 2% at 50 with the use of average of the employee’s highest three-year salary.
c. Fire Employees (PEPRA Member): The CalPERS formula for employees hired on or after January 1, 2013, shall be 2.7% at 57 with the use of average of the employee’s highest-three-year salary as defined by the Public Employees Pension Reform Act (PEPRA) and related Public Employees’ Retirement Law (PERL). All new employees/members hired on or after January 1, 2013 pay 50% of the normal cost contribution.
2. Employee Cost Sharing: The employees share shall be half of the total Normal Rate towards the CalPERS retirement benefit as set forth below. Employee retirement cost sharing contributions that are in addition to the normal CalPERS Member Contribution will be calculated on base pay, special pays, and other pays normally reported as pensionable compensation, and will be made on a tax deferred basis through payroll deduction under 414(h)(2).
a. Fire Employees (Classic Member – Tier 1): currently, employees/members contribute 9% of the employee rate, plus a 3% modifier. Upon the effective date of the contract amendment with CalPERS, members/employees will have Employee Sharing an Additional Cost of 1% for a total modifier of 6.78% and will continue to contribute fifty percent (50%) of the total Normal Rate cost sharing contribution of pensionable compensation towards retirement costs as permitted under Government Code §20516(f) as the total Normal Rate increases.
3. Fire Employees (Classic Member – Tier 2): employees/members will continue to contribute 9% of the employee rate, plus a 3% modifier.
4. PEPRA employees/members already pay 50% of the normal contribution as defined by the Public Employees Pension Reform Act (PEPRA) and related Public Employees’ Retirement Law (PERL).
5. The City must amend the contract with CalPERS every time the total Normal Rate cost increases. The Union and its employees/members agree to comply with CalPERS requirements to amend the contract, which includes an affirmative vote of employees/members to share 50% of the total Normal Rate costs. Parties agree that members/employees paying 50% of the total Normal Rate cost shall survive the expiration of the MOU.
6. Report of Employer Paid Member Contribution (EPMC): Effective July 1, 2011, the EPMC will no longer be reported to CalPERS and will not be included in an employee’s final compensation for employees.
7. PERS 1957 Survivor Benefit: Pursuant to California Public Employees Retirement Law Section 21546 (1957 Survivor Allowance) (i) On and after April 1, 1972 this section shall
23 apply to all contracting agencies and agencies have previously elected to be subject to this section.
8. Deferred Compensation: The CITY will make available a 457 Deferred Compensation Program to all full-time employees.
9. Part-time employees: All part time employees will be enrolled in PARS and will not pay into social security.
10. The CITY and the ASSOCIATION will create a joint working group during the term of the 2023-2025 MOU to assess the potential impacts of an increased Cost of Living Adjustment (COLA) in the CalPERS contract would have. The City and ASSOCIATION understand that creating this working group will not constitute an automatic Cost of Living Adjustment (COLA) during the term of this contract or in the future.
Article 21.0 Recognition
The CITY recognizes that the Association is the sole and exclusive bargaining agent and representative for the classification which are currently in the bargaining unit or which may later be added pursuant to the Imperial Beach Employer-Employee Relations Policy and State Law.
These classifications are:
1. Fire Captain
2. Fire Captain/Paramedic
3. Engineer/Paramedic
4. Fire Engineer
5. Firefighter/Paramedic
6. Firefighter
7. Firefighter/EMT
8. Firefighter/Paramedic Recruit
Once the remaining Captain who has not held the rated position of Engineer retires or leaves CITY employment, the classification of Firefighter will be eliminated.
Article 22.0 Payroll Deduction of Dues
The employer agrees to deduct, once each pay period, dues and assessments in an amount certified to be current by the designated representative of the Association from the pay of those employees who individually request in writing that such deductions are made. The total amount of deductions shall be remitted, each pay period, by the employer to the representative of the Association. This authorization shall remain in full force and effect until such authorization has been revoked in writing by the employee.
24 Article 23.0 Rules and Regulations
The ASSOCIATION agrees that its members shall comply with all applicable CITY and Fire Department rules and regulations, including those relating to conduct, work performance, and personnel matters. Revisions to any of these rules and regulations require proper notice to ASSOCIATION and meet and confer process.
The employer agrees that disputes concerning departmental rules and regulations which affect working conditions and personnel practices are subject to the Grievance Procedure.
Article 24.0 Re-negotiation
In the event either party desires to meet and confer on the provisions of a successor M.O.U., it shall serve upon the other not later that April 1st of the year that this M.O.U. expires, its written request to commence meeting and conferring. Each party may then submit its full and entire written proposal on a successor M.O.U.
Article 25.0 Implementation
This M.O.U. constitutes a mutual recommendation to be jointly submitted to the Imperial Beach City Council. It is agreed that this M.O.U. shall not be binding either in whole or in part unless and until the City Council acts by majority vote formally to approve and adopt this M.O.U.
Article 26.0 Emergency
Nothing contained herein shall limit the authority of Management to make necessary changes during emergencies. However, Management shall notify the Association of such changes as soon as possible. Such emergency assignments shall not extend beyond the period of the emergency. Emergency is defined as an unforeseen circumstance requiring immediate implementation of the change.
Article 27.0 Employee Assistance Program
The CITY will continue to provide an Employee Assistance Program for all CITY employees.
Article 28.0 Savings Clause
If any provisions of this M.O.U. or the enabling resolution is at any time, or in any way, held to be contrary to any law by any court or proper jurisdiction, the remainder of this M.O.U. and the remainder of the enabling resolution shall not be affected thereby, and shall remain in full force and effect.
25 Article 29.0 Agreement Review
Recognizing the joint concern over the City of Imperial Beach’s ability to fund the recommendations contained within the agreement, it is mutually understood that should the California State Legislature mandate a salary or fringe benefit item applicable to employees represented by the association, CITY may at its option require that this Memorandum be reviewed. It s further understood that should the California State legislature mandate a reduction in a salary or fringe benefit item applicable to the employees represented by the Association, the Association may at its option require that this M.O.U., be reviewed.
It is understood that the Association and the CITY may discuss and consult with each other with respect to non-economic items during the period of this agreement, except as noted above, in order to further communicate between the CITY and Association in an effort to promote the improvement of personnel management and employer-employee relations.
Article 30.0 Catastrophic Leave
The CITY agrees to implement a Catastrophic Leave policy to allow vacation, floating holiday, sick leave, or compensatory time credits to be transferred from one employee to another on an hour-for-hour basis for authorized catastrophic leave. A maximum of 20 hours of sick leave, and up to a combined total of 56 hours of vacation, floating holiday, compensatory time and sick leave per employee may be transferred with the receiving employee credits not exceeding more than 520 hours over any 24-month period without City Manager approval.
Article 31.0 Re-opener Provisions
If or when the CITY desires to implement a change to the current ambulance transportation service, the CITY and ASSOCIATION agree to meet and confer with the other party on such service.
Article 32.0 Paramedic License
The Captain/Paramedic License, 5% will be added to the base pay of the Captain classification to become Captain/Paramedic. The Engineer/Paramedic License, 7.5% will be added to the base pay of the Engineer classification to become Engineer/Paramedic. Captain/Paramedic, Engineer/Paramedic and Firefighter/Paramedics are required to retain a Paramedic License as a condition of employment with the CITY.
26 Article 33.0 Minimum Staffing
For all shifts, on all days, a minimum of three full-time fire suppression personnel shall be on duty per 24-hour shift.
Article 34.0 Mandatory Mess
All members of the fire suppression unit on shift shall participate in a mandatory mess.
Exceptions to this Article shall only be allowed for religious, dietary or medical reasons. Except for unusual circumstances and emergencies, one member of the crew shall be allowed to cook and prepare meals during normal work hours. Such arrangement will be administered by the ASSOCIATION in accordance with applicable laws. Employees will be responsible for all tax consequences, where applicable. This section shall not be subject to the grievance procedure.
Article 35.0 Bi-lingual Pay Differential
When an employee possesses competent bi-lingual skills in Spanish, that full-time employee shall be granted $50.00 per month for use of this skill, with part-time employees receiving $.40 per hour, not to exceed $50.00 per month. Prior to an employee receiving bi-lingual pay, competence shall be determined by an oral and written test. If an employee fails the test, they are eligible to re-take the test in 6 months. Effective January 2016, employees will have the option of taking the bilingual test related to Fire Department Operations. Prior to January 2016, employees may take the bilingual test related to general City services.
27 IN WITNESS THEREOF, the parties hereto have executed this M.O.U. on the_______ day of ___________ 2023
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IMPERIAL BEACH
CITY OF IMPERIAL BEACH FIREFIGHTERS’ ASSOCIATION
Tyler Foltz Date Jason Bell Date
City Manager Lead Negotiator/IBFA Representative
Nadia Smith Date John Olsen Date
Human Resources Manager IBFA President
Lily Flyte Date Nicholas Morales Date
Finance Manager IBFA Representative
Jorge Martinez Date
IBFA Representative
EFFECTIVE 7/1/2023 Monthly Monthly
High Low
FIRE RANGE FP06-56 HRS FP06/01 FP06/02 FP06/03 FP06/04 FP06/05 FP06/06 HOURLY 27.37 28.74 30.17 31.68 33.26 34.93
BI-WEEKLY 3,065.12 3,218.37 3,379.29 3,548.26 3,725.67 3,911.95 FP06 ANNUAL 79,693.04 83,677.69 87,861.58 92,254.66 96,867.39 101,710.76 6,641 8,476 FIRE RANGE FP07-56 HRS FP07/01 FP07/02 FP07/03 FP07/04 FP07/05 FP07/06 HOURLY 29.56 31.04 32.59 34.22 35.93 37.73
BI-WEEKLY 3,310.57 3,476.10 3,649.90 3,832.40 4,024.02 4,225.22 FP07 ANNUAL 86,074.80 90,378.54 94,897.47 99,642.34 104,624.46 109,855.68 7,173 9,155 FIRE RANGE FP08C-56 HRS FP08C/01 FP08C/02 FP08C/03 FP08C/04 FP08C/05 FP08C/06 HOURLY 35.10 36.86 38.70 40.63 42.67 44.80
BI-WEEKLY 3,931.31 4,127.87 4,334.27 4,550.98 4,778.53 5,017.46 FP08C ANNUAL 102,214.02 107,324.72 112,690.96 118,325.50 124,241.78 130,453.87 8,518 10,871
EXHIBIT A
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August 16, 2023
ITEM TITLE: CONSTRUCTION OF A MIXED-USE BUILDING WITH GROUND FLOOR COMMERCIAL SPACE & 12 RESIDENTIAL UNITS (TWO VERY-LOW INCOME) & CEQA GUIDELINES EXEMPTION SECTION 15332 AT 981 & 983 CALLA AVENUE USE-22-0100. (0600-20)
ORIGINATING DEPARTMENT:
Community Development
EXECUTIVE SUMMARY:
The owner of a property at 981 & 983 Calla Avenue, which is in the C/MU-1 (General Commercial & Mixed-Use) Zone, has initiated the process to demolish the existing structures and construct a new three-story mixed-use building that would include a ground floor commercial space measuring approximately 777 square feet and twelve residential units (inclusive of two very-low income affordable units), and a six-car parking garage. The project was reviewed by the Design Review Board on June 15, 2023, and the Design Review Board recommended approval of the project’s design with recommendations with a vote of 3-1 (1 absent).
RECOMMENDATION:
That the City Council hold the public hearing; consider public input, and adopt Resolution 2023- 68, approving Regular Coastal Permit (CP-22-0016), Design Review Case (DRC-22-0030), Site Plan Review (SPR-22-0031), and categorical exemption pursuant to the California Environmental Quality Act (CEQA) guidelines 15332 Class 32 (In-Fill Development Projects) at 981 & 983 Calla Avenue (APN 626-221-24-00) in the C/MU-1 (General Commercial and Mixed-Use) Zone subject to the conditions as specified in the attached resolution.
OPTIONS:
In addition to receiving this report and adopting staff’s recommendations, the City Council can:
Approve the project with modifications requested by the City Council; or Disapprove the project and deny the requested permits by making specific findings for denial; or
Continue the Public Hearing to a specific future meeting to allow staff to provide additional information upon which a decision can be rendered.
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BACKGROUND/ANALYSIS:
An application (USE-22-0100) was
submitted to the City on September 6,
2022, for Regular Coastal Permit
(CP-22-0016), Design Review Case
(DRC-22-0030), & Site Plan Review
(SPR-22-0031), proposing to
demolish the existing structures and
construct a new three-story vertical
mixed-use building that would include
an approximately 777 square foot
ground floor commercial space,
twelve residential units (inclusive of
two very-low income affordable
units), and a six-car parking garage at
981 & 983 Calla Avenue (APN 626-
221-24-00) in the C/MU-1 (General
Commercial and Mixed-Use) Zone.
The project site is an existing 7,034 square foot (0.16-acre) lot fronting Calla Avenue. The project involves the demolition of two existing one-story single-family residences and the construction of a new vertical mixed-use structure. The vertical mixed-use building would front Calla Avenue with the front of the building including a ground floor commercial space measuring approximately 777 square feet with a first-floor mezzanine and 64 square foot open patio. One residential unit would be located on the ground floor behind the commercial space and six parking spaces, including one ADA space, would be in the rear of the building. Five residential units would be provided on the second floor and six additional residential units would be provided on the third floor, each with a roof deck. Vehicular ingress and egress to the property would be provided from the existing alley on the south side of the property. The areas that are south, east, and west of the project site are zoned C/MU-1 (General Commercial & Mixed Use), similar to the subject site, whereas the area north of the project site is zoned R-2000 (Medium-Density Residential). The property south of the project site includes a church, which is a semi-public use, while the properties north, east, and west of the project site are residential uses.
Building Orientation and Design: The proposed vertical mixed-use building is presented in a modern architectural design, which includes a minimalist aesthetic featuring clean lines, large north facing glass windows, and exposed building materials. The ground floor commercial space would front Calla Avenue and would include a 64 square foot open air patio that would be located adjacent to the sidewalk between the structure and the street. Pedestrian access to the building’s residential areas would be accessed from Calla Avenue via a concrete walkway located on the northeast corner of the property. Residents would find various features promoting multi-modal transportation such as bike racks, a bike repair station, and a transit and rideshare information kiosk along the walkway. An art mural on the east elevation and Amazon lockers will also be provide for the enjoyment of the residents. To provide variation and relief from the massing of the building, the project proposes increased setbacks along the eastern property line, varied roof heights, and a balcony for each unit which would be provided on all proposed building elevations.
Two open staircases facing east would be provided toward the center of the building to provide access to the upper floor apartment units. The roof of the building is proposed as non-habitable space and would feature solar panels and other mechanical equipment, which would be screened by a parapet. Off-street parking would be provided on the ground floor in the form of a six-car parking garage and would be in the rear of the building and thus accessed off the existing alley.
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The residential units vary in size and range between 548 sq. ft. and 1,147 sq. ft. and include one, two, and three-bedroom units.
The utilization of the commercial space is yet to be determined. The floor-to-ceiling height of the ground floor commercial space would measure 15’ – 10 1/2” meeting the minimum fifteen-foot floor-to-ceiling height requirement per Imperial Beach Municipal Code Section 19.27.070. The overall height of the building, including the roof decks, parapets, and elevator structure, is approximately 41.17’, however, roof structures for the housing of equipment required to maintain and operate the building and parapet walls required by law may extend above the height limit (ref.
IBMC Section 19.40.020). Exclusive of the portions of the structure that may extend above the height limit, the building height is 39.17’ on the north and 32.92’ on the south, which complies with the maximum building height requirement of four stories or 40 feet for the C/MU-1, General Commercial and Mixed-Use, Zone (IMBC Section 19.26.070).
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Building Materials: The building
would include a variation in
architectural features and
materials such as large north
facing windows to allow for
natural light, balconies on all
elevations, black vinyl window
frames, a fiber cement cantilever
above the commercial space,
open walkways along the second
and third floors, and two shades
of stucco for the exterior
including white & gray.
The building accents include
composite wood horizontal
siding, horizontal wood boards to
screen the stairways, black metal
railings for the balconies and
matching black exterior light
fixtures, wood fences along the
east and west property lines, a
concrete walkway for residents,
and permeable brick pavers
provided for three parking
spaces. The design of the project
conforms with the intent and
purpose of the design standards outlined in IBMC Section 19.83.010 and contributes positively to the C/MU-1, General Commercial and Mixed-Use, Zone, which is primarily comprised of multifamily residences within the vicinity of the project site.
Lighting: Exterior lighting and recessed lighting has been incorporated throughout the site and on all building elevations to provide pedestrian scale lighting and enhance the architecture of the building and landscaped areas of the site. Additionally, there are lighting fixtures placed on the walls of the exterior of the entrances to the parking and trash enclosure areas that would be placed beside the doors and not above entryways to ensure that the lighting would enhance safety and circulation but not impact the surrounding neighbors and uses. All the lighting and lighting fixtures are architecturally compatible and scaled to the buildings with consideration for energy efficiency.
Landscaping: Typically, projects require 15% of the site to be landscaped. The project proposes to provide 1,207 square feet of landscaping on the ground level along the property’s perimeters for a total 17% of site as planted landscaping at grade. The landscaping would include various shrubs, succulents, groundcovers, accent boulders, and a tree. Additionally, the development proposes 472 square feet of permeable pavers as the surface for three of the six parking spaces provided. Furthermore, three new trees would be planted in the parkway adjacent to the property as part of the project. Two six-foot tall wooden fences would be installed along the east and west property lines and a 6’ tall metal gate would be located on the north and south entrances to the property.
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Parking: The project proposes to provide six parking spaces for the residential component of the project at a ratio of 0.5 spaces per dwelling unit. Per Government Code Section 65915(p)(2) “…if a development includes at least 11 percent very low income units for housing developments…is located within one-half mile of a major transit stop, and there is unobstructed access to the major transit stop from the development, then, upon the request of the developer, a city shall not impose a vehicular parking ratio, inclusive of parking for persons with a disability and guests, that exceeds
0.5 spaces per unit.” The 6 residential parking spaces are provided in the form of a parking garage on the ground level with concrete surfacing and permeable pavers. Additionally, the project owner has volunteered to include Transportation Demand Management strategies, including bicycle parking, a kiosk for transit and rideshare information, a bicycle repair station, and monthly subsidized transit passes for MTS (50% subsidy of the cost of the MTS regional pass per dwelling unit), to requesting residents within the development for 10 years of the project after the certificate of occupancy is issued. The owner will notify each new resident of the availability of this benefit and can provide proof of participation if requested.
Regarding commercial parking, Imperial Beach Municipal Code Section 19.48.035 provides standards for required spaces for mixed-use projects in the C/MU-1, C/MU-2, and C/MU-3 zones and states that 1 space per 500 gross SF of commercial space would be required for this project as it is proposing 777 square feet of commercial space. The applicant has requested a waiver of the commercial parking requirement per California State Density Bonus Law (Government Code Section 65915(e)(1)) stating that the required parking spaces would physically preclude the construction of the development at the densities permitted.
Electric Vehicle ready spaces will be provided as required per energy code.
Trash enclosure: A enclosed trash, recycling, and organics enclosure would be situated on the southeastern side of the property. Waste, recycling, and organics pick-up would occur from the existing alley on the eastern portion of the site.
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Design Review Board:
The Design Review Board reviewed the project on June 15, 2023, and recommended approval of the project’s design with a vote of 3-1 (1 member absent, see Attachment 3) with the following conditions:
Add additional outdoor communal space for the health of the community Create negative space on the north and east facing walls Install bike storage for the commercial space
Consider the residential location of the project and incorporate more screening for the privacy of the neighbors and more beautiful landscaping (not DG and decorative pebble) that the residents could enjoy
If DG is used, to use DG with bio-additives to breakdown pet waste Replace wood fencing with CMU wall for longevity and security Install bollards and CMU wall for the three open parking spaces Lower the lighting on Northwest and Southeast elevation to the side of the doors so there is no spillage into the adjacent property.
Use warmer tones to soften the institutional appearance of the building In the Northwest corner the DG space be used for storage space for residents Reconsider the decorative pebble and consider the utilization of artificial turf or similar material to incorporate landscaping
Use planters on the West elevation or a green wall to soften institutional appearance. Use permanent low wall to screen the SDG&E box in the front yard Change tree species from desert museum trees to more vertical and evergreen, for lower maintenance and less blockage of views.
Recommend using Brisbane Box or Sweet Shade trees
Add verbiage to irrigation plans that the auxiliary equipment is not visible from the property line
Should the artwork not be used where designated to consider a green wall treatment on East elevation
For any future solar equipment provide concealed infrastructure to avoid the need for surface mounted conduit
Consider the use of larger materials that are more aesthetically pleasing in the areas that are not walkways and are currently DG
Monitoring of Transportation Demand Management Strategies Include condition of approval related to coordinating with the neighbors related to the design of the fencing
Solicit input from neighbors regarding material to be used for the fence in front of the 3 open parking spaces, however, the safety component must be considered General Plan Consistency:
The project is located in the C/MU-1 (General Commercial & Mixed Use) Zone. The purpose of the C/MU-1 Zone is to provide land to meet the local demand for commercial goods and services required primarily by the community. It is intended that the dominant type of commercial activity in the C/MU-1 Zone will be community and neighborhood serving retail and office uses such as retail stores and offices. The proposed vertical mixed-use project meets the purpose and intent of the land use designation.
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Zoning Chart:
C/MU-1 Standards Provided/Proposed
Yard requirements for the C/MU-1 zone are as
follows:
A. Front Yard. Zero feet; up to forty percent of the
project frontage may be set back up to an
additional five feet. Front yards facing Donax
Avenue or Calla Avenue shall be a minimum
of fifteen feet.
B. Side Yard. There shall be a minimum side
yard of five feet.
C. Rear Yard. There shall be a minimum rear
yard of ten feet.
A. The project, including the
commercial component, fronts
Calla Avenue and is set back
15’. It is intended that the street
exterior wall features, such as
variations in building colors,
window glazing, and
landscaping areas along the
street contribute to and
enhance the active commercial
use area. IBMC Section
19.04.017 defines active
commercial uses as those that
generate/contribute to a high
level of pedestrian activity,
sidewalk traffic, and active
streets.
B. The side yards of the project
abut residential properties to
the east and west. The project
provides the minimum 5’
setback along the east property
line with additional setbacks of
up to 13’ 11 1/2”. In accordance
with California State Density
Bonus Law, the applicant is
requesting an incentive for a
reduced side yard setback to 0’
along portions of the west
property line.
C. The rear yard of the project
abuts an alley. In accordance
with California State Density
Bonus Law, the applicant is
requesting an incentive for a
reduced rear yard setback to
3’.
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D. The open space and landscaping
requirements as stated in Chapter 19.50 of
this code shall be met.
D. 15% of the site must be
landscaped, and 17% is
provided.
“Active Commercial Uses” as defined in Chapter
19.05 are required for all buildings with frontage along Palm Avenue at a minimum of 60% of each building’s
ground floor lineal footage, have direct pedestrian
access from the Palm Avenue sidewalk or a plaza,
and have a minimum building depth of twenty-five
feet. The remaining forty percent must either be
primarily related to the commercial use, such as
parking, access, or other non-active commercial
purpose or, if related to non-commercial use, must be
designed either to encourage and promote pedestrian
activity or to visually screen required on-site parking (Section 19.26.020.A.1).
The project is not fronting Palm
Avenue, and as such is not required to
provide an active commercial use.
However, the applicant has provided a
commercial space fronting Calla
Avenue to promote pedestrian activity
and enhance the adjacent commercial
corridor.
For property with a side or rear yard abutting a
residential zone, the second floor shall be set back a
minimum of five feet from the abutting residential
property line and the third floor shall be set back a
minimum of ten feet from the abutting residential
property line. (Section 19.26.041)
The property does not abut a
residential zone on the side or rear
yards.
Minimum lot size of 3,000 square-feet (Section
19.26.050).
The lot size measures 7,034 square
feet. The project does not propose to
create a new lot.
Minimum street frontage of 30 feet (Section
19.26.060).
The Calla Avenue frontage is
approximately 50.03’. The project
does not propose to create a new lot.
Maximum building height of four stories or 40 feet
(Section 19.26.070).
The overall height of the building,
including the roof decks, parapets, and
elevator structure, is approximately
41.17’, however, roof structures for the
housing of equipment required to
maintain and operate the building and
parapet walls required by law may
extend above the height limit (ref.
IBMC Section 19.40.020). Exclusive of
the portions of the structure that may
extend above the height limit, the
building height is 39.17’ on the
northern portion of the structure and
32.92’ on the southern portion of
structure, which complies with the
building height requirements in the
C/MU-1 General Commercial and
Mixed-Use Zone.
The applicant would be required to
show conformance with the height
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requirements as required by IBMC
19.04.400.
All commercial spaces on the ground floor shall have
a minimum fifteen-foot floor-to-ceiling height; and
single-story commercial buildings shall have a
minimum building height of twenty feet. (Section
19.27.070).
The project is proposing a floor-toceiling height of 15’ 10 1/2” for the ground floor commercial space.
No buildings shall be located less than five feet from
any other building on the same lot. (Section
19.26.080)
No buildings shall be located less than
five feet from any other building on the
same lot.
Landscaping requirements are as follows (Section
19.50.030, Commercial Landscaping):
A. Not less than fifteen percent of the total site
shall be landscaped and permanently
maintained.
B. There shall be a five-foot-wide landscape area
between any parking area and any public
street right-of-way.
C. A portion of a property not used for buildings,
parking, walkways, loading or storage areas
shall be landscaped.
A. The 7,034 square foot lot
requires a minimum of 1,055
square feet of landscaping on
the site (15%). The project
proposes to provide 1,207
square feet of landscaping on
the ground level along the
property’s perimeters totaling
to (17%) of site as planted
landscaping at grade. The
landscaping would include
various shrubs, succulents,
groundcovers, accent
boulders, and a tree. In
addition, the development
proposes permeable pavers for
three of the six parking spaces
provided and three new trees
would be planted in the
parkway adjacent to the
property as part of the project.
B. There is no parking area near
the public right-of-way.
C. Portions of a property not used
for buildings, parking,
walkways, loading or storage
are landscaped.
P a g e | 12
D. There shall be a minimum three-foot by fifteenfoot, or forty-five square foot, landscaped area within the parking area (not including
perimeter area landscaping) for every three
parking spaces or the equivalent. A minimum
width of three feet is required. A four-foot by
fifteen-foot area may be permitted for every
four spaces, five-foot-wide for five spaces, etc.
E. Prior to issuance of any building permits, a
complete landscaping plan shall be submitted
to the Community Development Department
for approval. Such approval shall be subject to
appeal in the manner set forth in Sections
19.84.070 through 19.84.090.
F. Landscaping and required watering system
shall be installed prior to the use of the
premises. All landscaping material in required
landscaping areas shall be permanently
maintained in a growing and healthy condition,
including trimming, as appropriate to the
landscaping material.
A permanent irrigation system shall be installed to
serve all landscaped areas.
D. The project provides adequate
landscaping in the surface
parking spaces.
E. A complete landscape plan
would be required prior to
issuance of building permits.
F. Landscaping and required
watering system shall be
installed prior to the use of the
premises subject to state
requirements.
A permanent irrigation system shall be
installed to serve all landscaped areas
subject to state requirements.
Surrounding Land Use and Zoning:
Surrounding Areas Surrounding Zoning Surrounding Land Use North R-2000 (Medium-Density Residential) Residential
South C/MU-1 (General Commercial & MixedUse)Semi-Public East C/MU-1 (General Commercial & MixedUse)Residential West C/MU-1 (General Commercial & MixedUse)Residential ENVIRONMENTAL DETERMINATION:
This project may be categorically exempt pursuant to the California Environmental Quality Act (CEQA) Guidelines Section 15332 Class 32 (In-fill Development Projects).
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COASTAL JURISDICTION:
This project is located in the coastal zone as defined by the California Coastal Act of 1976. The City Council public hearing will serve as the required coastal permit hearing and the City Council will consider the findings under the California Coastal Act. Pursuant to the City of Imperial Beach Zoning Ordinance Section 19.87.050, review of the proposal will consider whether the proposed development satisfies the required findings prior to the approval and issuance of a Coastal Development Permit. The project is not located in the Appeal Jurisdiction of the California Coastal Commission as indicated on the Local Coastal Program Post Certification and Appeal Jurisdiction Map and, as such, would not be appealable to the California Coastal Commission under Section 30603(a) of the California Public Resources Code.
ATTACHMENTS:
1. ATT 1 – Resolution No. 2023-68
2. ATT 2 – Project Plans, Landscape Plan, Materials Board
3. ATT 3 – Design Review Minutes 061523
4. ATT 4 – Project Renderings
5. ATT 5 – Applicant Response Letter
ATTACHMENT 1
RESOLUTION NO. 2023-68
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF IMPERIAL BEACH, CALIFORNIA, APPROVING REGULAR COASTAL PERMIT (CP-22-0016), DESIGN REVIEW CASE (DRC22-0030), AND SITE PLAN REVIEW (SPR-22-0031); AND CATEGORICAL EXEMPTION PURSUANT TO CEQA GUIDELINES SECTION 15332 CLASS 32 (IN-FILL DEVELOPMENT
PROJECTS) FOR THE CONSTRUCTION OF A NEW MIXED-USE DEVELOPMENT WITH TWELVE RESIDENTIAL UNITS (TWO VERY-LOW INCOME), AND APPROXIMATELY 777 SQUARE FEET OF COMMERCIAL SPACE AT 981 & 983 CALLA AVENUE (APN 626-221-24- 00). USE-22-0100.
WHEREAS, on August 16, 2023 the City Council of the City of Imperial Beach held a duly advertised and noticed public hearing to consider the merits of approving or denying an application for a Regular Coastal Permit (CP-22-0016), Design Review Case (DRC-22-0030), Site Plan Review (SPR-22-0031), and Categorical Exemption pursuant to CEQA Guidelines 15332 Class 32 (In-Fill Development) for the construction of a new mixed-use development with twelve residential units (two very-low income) and approximately 777 square feet of commercial space at 981 & 983 Calla Avenue (APN 626-221-24-00), which is located in the C/MU-1 (General Commercial and Mixed-Use) Zone.
WHEREAS, on June 15, 2023 the Design Review Board recommended approval of the project’s design with recommendations with a vote of 3-1 (1 absent); and WHEREAS, the City Council finds that the project design of the residential project is compatible with the community and would be consistent with Policy D-8 (Project Design) of the Design Element of the General Plan; and
WHEREAS, the City Council finds that the project is in compliance with the Land Use Element of the General Plan; and,
WHEREAS, the City Council finds that the project complies with the requirements of the California Environmental Quality (CEQA) as the project is categorically exempt pursuant to CEQA Guidelines 15332 (In-Fill Development Projects); and
WHEREAS, the City Council further offers the following findings in support of its decision to conditionally approve the project:
REGULAR COASTAL PERMIT (IBMC § 19.87.050):
1. The proposed development conforms to the certified local coastal plan including coastal land use policies.
The General Plan/Local Coastal Plan designates the site as General Commercial and Mixed-Use (C/MU-1) Zone. The purpose of the C/MU-1 (General Commercial and Mixed Use) Zone is to provide areas for mixed-use development, multiple-family dwellings, and for businesses to meet the local demand for commercial goods and services. It is intended that the dominant type of commercial activity in the C/MU-1 zone will be community and neighborhood serving retail and office uses. The proposed use provides a mixed-use project that includes a 777 sq. ft. commercial space, twelve residential units (inclusive of two very low-income affordable units), and a six-car parking garage. The use is similar to other uses in the vicinity, and it will provide a new mixed-use establishment that would generate income and additional housing in the community. Also, the project would have no impact to existing shore processes, public access, coastal views, or scenic views because the project complies with the Municipal Code, does not exceed the height limit,
Resolution No. 2023-68
and does not build in any areas with street end or other views. The project site is located in a non-appealable coastal zone and complies with the land use designation of the General Plan/Local Coastal Plan.
2. For all development seaward of the nearest public highway to the shoreline, the proposed development meets standards for public access and recreation of Chapter Three of the 1976 Coastal Act and regulations promulgated thereunder.
The General Plan/Local Coastal Program designates the site as General Commercial and Mixed Use (C/MU-1) Zone. The purpose of the C/MU-1 zone is to provide areas for mixeduse development, multiple-family dwellings, and for businesses to meet the local demand for commercial goods and services. It is intended that the dominant type of commercial activity in the C/MU-1 zone will be community and neighborhood serving retail and office uses. The proposed project would provide a mixed-use project that includes a 777 sq. ft. commercial space, twelve residential units (inclusive of two very low-income affordable units), and a six-car parking garage. The proposed use would be community and neighborhood serving retail and offices uses, meeting the intent of the land use designation. In addition, the project would encourage pedestrian activity through the design and location and alternative methods of transportation reducing the demand for vehicle uses. Also, the project would have no impact to existing shore processes, public access, coastal views, or scenic views because the project complies with the Municipal Code, does not exceed the height limit, and does not build in any areas with street end or other views. As such, the proposed development meets standards for public access and recreation of Chapter Three of the 1976 Coastal Act and regulations promulgated thereunder..
3. The proposed development meets the minimum criteria set forth in the City of Imperial Beach Zoning Ordinance, the City’s Minimum Landscape Planting and Irrigation Standards, and the City’s Design Guidelines, as applicable.
The proposed development has been designed to meet the minimum criteria set forth in the City of Imperial Beach Zoning Ordinance, City’s Minimum Landscape Planting and Irrigation Standards, and the City’s Design Guidelines as further specified within the findings of this Resolution. The proposed project will comply with all the regulations and conditions for the Zoning Ordinance, and any other conditions noted in this Resolution.
By dedicating 15% of the base density units (7,034/1,000 = 7.03 = 8 units) for very lowincome households, the project is eligible to earn a density bonus of 50%, or 4 additional units, pursuant to Government Code Section 65915(f)(2), and three incentives or concessions pursuant to Government Code Section 65915(d)(2)(C).
Waivers and incentives were requested by the applicant per Government Code Section 69515(d)(2)(C) for the following development standards: reducing the free and clear back out space from 24' to 22' to allow for landscape screening of the three uncovered parking spaces; reducing the rear yard setback from 10’ to 3’ and reducing the side yard setbacks from 5’ to to 0’ to allow for twelve units within the 3 stories; eliminating commercial parking requirements, and eliminating the open space (300 SF/DU) requirement citing that these development standards would physically preclude the construction of the development at the densities permitted. Per Government Code Section 65915(e)(1) (California State Density Bonus Law), “In no case may a city, county, or city and county apply any development standard that will have the effect of physically precluding the construction of a development meeting the criteria of subdivision (b) at the densities or with the concessions or incentives permitted by this section.”
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With regards to parking, the project proposes to provide six parking spaces for the residential component of the project at a ratio of 0.5 spaces per dwelling unit. Per Government Code Section 65915(p)(2) “…if a development includes at least 11 percent very low income units for housing developments…is located within one-half mile of a major transit stop, and there is unobstructed access to the major transit stop from the development, then, upon the request of the developer, a city shall not impose a vehicular parking ratio, inclusive of parking for persons with a disability and guests, that exceeds
0.5 spaces per unit.” The 6 required residential parking spaces are provided in the form of a parking garage on the ground level. The project location is less than 1/2 mile from the bus stop at Palm Ave & 9th St which includes 2 bus lines with frequencies of 15 minutes during peak..
Regarding commercial parking requirement, Imperial Beach Municipal Code Section
19.48.035 provides standards for required spaces for mixed-use projects in the C/MU-1, C/MU-2, and C/MU-3 zones and states that 1 space per 500 gross SF of commercial space would be required for this project as it is proposing 777 square feet of commercial space. The applicant has requested a waiver of the commercial parking requirement per California State Density Bonus Law (Government Code Section 65915(e)(1)) stating that the required parking spaces would physically preclude the construction of the development at the densities permitted.
To help offset the parking impacts, reduce the demand for vehicle usage, and promote multi modal transportation, the project is implementing transportation demand management strategies including onsite bicycle parking, a kiosk for transit and rideshare information, a bicycle repair station, and monthly subsidized transit passes for MTS (50% subsidy of the cost of the MTS regional pass per dwelling unit), to requesting residents within the development for 10 years of the project after the certificate of occupancy is issued. The owner will notify each new resident of the availability of this benefit and can provide proof of participation if requested.
Implementing these transportation demand strategies should encourage the use of alternate methods of transportation, including bicycles, walking, ride-hailing, and public transportation. Application of transportation demand management strategies also emphasizes the City’s ongoing effort to reduce carbon footprints and greenhouse gas emissions. Parking is a consistent area of concern within the community and a condition has been added to the resolution noting that the transportation demand management strategies for the project shall be revisited and revised at the expense of the property owner if determined necessary by the City.
4. The proposed development meets minimum criteria set forth in Sections 19.81.060,
19.82.050., 19.83.120., 19.84.050., and 19.86.100., of this title for site plans, conditional use permits, design review, variances, zoning classification and rezonings.
The proposed development meets the minimum criteria set forth in Sections 19.81.060,
19.82.050, 19.83.110, and 19.84.050 (Sections 19.82.050, 19.84.050, and 19.83.120 are not applicable) for a site plan review, conditional use permit, design review, and variance subject to the findings provided within this Resolution. Sections 19.82.050, 19.84.050, and 19.86.100 are not applicable because the project does not require a conditional use permit, variance, or a zoning classification/rezoning.
5. For all development involving the construction of a shoreline protective device, a mitigation fee shall be collected which shall be used for each sand replenishment purposes. The mitigation fee shall be deposited in an interest-bearing account
Resolution No. 2023-68
designated by the Executive Director of the California Coastal Commission and the city manager of Imperial Beach in lieu of providing sand to replace the sand a beach area that would be lost due to the impacts of any proposed protective structure.
The subject site is not located near an area that would require shoreline protection. As such, the proposed project does not necessitate the construction of a shoreline protection device and would not have an impact on the sand in any beach area. Therefore, a mitigation fee is not required for the project.
6. This project complies with the California Environmental Quality Act.
This project is categorically exempted from the requirements of the California Environmental Quality Act (CEQA) as a Class 32 project pursuant to CEQA Guidelines Section 15332 (In-Fill Development). The City has prepared a Categorical Exemption per the CEQA requirements for this project and the Notice of Exemption will be filed with the County Clerk in compliance with CEQA.
7. Public Notice requirements, pursuant to Zoning Ordinance Section 19.87.090, of the Coastal Development Project have been satisfied.
The project description and the date of the City Council public hearing were sent to property owners within 300 feet and occupants within 100 feet of the subject site on August 3, 2023, and a public hearing notice was published in the South County Eagle & Times newspaper on April 3, 2023.
DESIGN REVIEW/SITE PLAN REVIEW (IBMC § 19.81.060):
8. The proposed use does not have any detrimental effect upon the general health, safety and convenience of persons residing or working in the neighborhood or is not detrimental or injurious to the value of the property and improvements in the neighborhood.
The proposed mixed-use project that includes an 777 sq. ft. commercial space, twelve residential units (inclusive of two very low-income affordable units) and a six-car parking garage in the C/MU-1 (General Commercial and Mixed Use) Zone will not be detrimental to the health, safety or convenience of persons residing or working in the neighborhood, or detrimental or injurious to the property and improvements in the neighborhood because it is consistent with the development standards and zoning designation of the site as well as provides improvements to the project site. Specific conditions have been set forth by the Community Development Department, Public Works Department, Building Department, and Public Safety Department to mitigate public safety and welfare concerns such a development project may raise in the Conditions of Approval.
9. The proposed use does not adversely affect the General Plan or the Local Coastal Plan.
The General Plan/Local Coastal Plan designates the site as C/MU-1 (General Commercial & Mixed Use) Zone. The purpose of the C/MU-1 (General Commercial and Mixed Use) Zone is to provide areas for mixed-use development, multiple-family dwellings, and for businesses to meet the local demand for commercial goods and services. The proposed vertical mixed-use project does not adversely affect the General Plan or the Local Coastal Plan because it would provide commercial and residential uses in an area allowing for the construction of vertical mixed-use buildings. The use is similar to other uses in the vicinity, and it will provide a new mixed-use establishment that would generate income and additional housing in the community. In addition, the project would encourage pedestrian activity through the design and location and alternative methods of transportation reducing
Resolution No. 2023-68
the demand for vehicle uses. Therefore, the proposed project meets the purpose and intent of the General Plan and Local Coastal Plan.
10. The proposed use is compatible with other existing and proposed uses in the neighborhood.
The proposed mixed-use project that includes a 777 sq. ft. commercial space, ten residential units (inclusive of two very low-income affordable units), and a six-car parking garage is compatible in use with established uses in the neighborhood which consist of a mix of commercial businesses, retail shops, and offices. The subject site is in the C/MU-1 (General Commercial and Mixed Use) Zone, which provides uses similar in character and scale.
11. The location, site layout and design of the proposed use orients the proposed structures to streets, driveways, sunlight, wind and other adjacent structures and uses in a harmonious manner.
The vertical mixed-use building would front Calla Avenue with the front of the building including a ground floor commercial space measuring approximately 777 square feet and twelve residential units (inclusive of two very low-income affordable units). The rear of the building includes a six-car parking garage. The alley adjacent to the southern property line would be used for vehicle ingress and egress. Pedestrian access to the off-street parking area is accessed from Calla Avenue via a concrete walkway located on the northeast corner of the property. The concrete walkway also serves as an entrance to guide pedestrians to two stairways that would leads to the residential units on the upper floors.
The project is harmonious with other uses and structures, which include residential and commercial buildings in the neighborhood, because it proposes a commercial use where nearby properties are comprised of residential and commercial buildings.
12. The combination and relationship of one proposed use to another on the site is properly integrated.
The project proposes residential and commercial uses that are properly integrated. The cohesive design style and the choice of building materials properly integrate the buildings.
13. Access to and parking for the proposed use does not create any undue traffic problem.
Vehicular ingress and egress would be provided off the alley adjacent to the southern property line. The vertical mixed-use building that includes a 777 square foot ground floor commercial space provides direct pedestrian access from the sidewalk fronting Calla Avenue to the business entrance. Access to the residential units in the mixed-use building is provided from two staircases that provides access from the eastern elevation of the vertical mixed-use building. The staircase entrances are oriented towards the east but are accessible from a common pedestrian walkway that may be accessed from Calla Avenue or the alley. The parking provided is a mix of open and covered parking spaces. An ADA accessible parking space is provided for the commercial building and a mix of five open parking spaces and covered spaces are provided for the residential units.
Additionally, transportation demand management strategies are provided to reduce vehicular use; the strategies include bicycle parking, a kiosk for transit and rideshare information, a bicycle repair station, and monthly subsidized transit passes for MTS (50% subsidy of the cost of the MTS regional pass per dwelling unit), to requesting residents within the development for 10 years of the project after the certificate of occupancy is issued. The owner will notify each new resident of the availability of this benefit and can provide proof of participation if requested. Implementing these transportation demand
Resolution No. 2023-68
strategies should encourage the use of alternate methods of transportation, including bicycles, walking, ride-hailing, and public transportation.
Access and ingress and egress for the project should not create undue traffic problems because the project would comply with the standards set forth in the Municipal Code and would access off of the alley.
14. All other applicable provisions of the Zoning Code are complied with.
The project proposes the construction of a new vertical mixed-use project with approximately 777 square feet of commercial space and twelve (12) residential units at 981 & 983 Calla Avenue in the C/MU-1 (General Commercial and Mixed Use) Zone, where commercial and residential mixed-use buildings are typical. The project design meets the underlying zoning requirements of the C/MU-1 (General Commercial and Mixed Use) Zone, and the minimum requirements set forth in the Zoning Ordinance will be met.
Therefore, the project is consistent with the Zoning Code standards for the site.
15. Any other considerations as the Community Development Department deem necessary to preserve the health, safety and convenience of the City in general.
Standard and applicable conditions of approval have been included with the Resolution to further ensure that the health, safety, welfare, and convenience of the City in general are preserved.
16. Public Notice requirements, pursuant to Zoning Ordinance Section 19.81.050, have been satisfied.
The project description and the date of the City Council public hearing were sent to property owners within 300 feet and occupants within 100 feet of the subject site on August 3, 2023, and a public hearing notice was published in the South County Eagle & Times newspaper on April 3, 2023.
17. All requirements of the California Environmental Quality Act (CEQA) have been fulfilled.
This project is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Article 19 Sections 15332 (In-Fill Development Projects).
The City has prepared a Categorical Exemption per the CEQA requirements for this project and the Notice of Exemption will be filed with the County Clerk in compliance with CEQA.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Imperial Beach that the above-listed findings and recitals are true and correct and are incorporated by reference; and
BE IT FURTHER RESOLVED by the City Council of the City of Imperial Beach that Regular Coastal Permit (CP-22-0016), Design Review Case (DRC-22-22-0030), Site Plan Review (SPR-22-0031), and Categorical Exemption pursuant to CEQA Guidelines 15332 (In-Fill Development) to demolish the existing structures and construct a new vertical mixed-use building with ground floor commercial and twelve residential units (inclusive of two very low-income units) at 981 & 983 Calla Avenue (APN 626-221-24-00) are hereby approved subject to the following:
CONDITIONS OF APPROVAL:
1. Approval of Regular Coastal Permit (CP-22-0016), Design Review Case (DRC-22-0030), Site Plan Review (SPR-22-0031), and Categorical Exemption pursuant to CEQA Guidelines 15332 (In-Fill Development) is valid for one year from the effective date following final action by the City Council (10 working days following final action) and shall
Resolution No. 2023-68
expire at the end of business on August 26, 2024, unless vested with substantial construction pursuant to an approved building permit. Approvals of the Regular Coastal Permit (CP-22-0016), Design Review Case (DRC-22-22-0030), Site Plan Review (SPR22-0031), and Categorical Exemption pursuant to CEQA Guidelines 15332 (In-Fill Development) shall run coterminous.
2. The site shall be developed in substantial compliance with the plans dated August 2, 2023 and Stormwater Management Plan on file at the Community Development Department, or as otherwise amended and approved, and the conditions contained herein.
3. A property manager or equivalent representative must ensure maintenance of the property and all operations, and publicly facing signage shall be placed on the building noting the relevant contact information for property management. Management must be available to respond to any issues related to operation of the building and any use thereof. If a manager is needed and not available, future events may not be allowed.
4. Prior to tenant occupancy, the applicant must coordinate and create a plan with City safety staff for all proposed deliveries to the site. City safety staff approval will not be unreasonably withheld, conditioned, or delayed, and any restrictions will be nondiscriminatory and no more restrictive or onerous than restrictions placed on other retail uses in the City.
5. Lighting shall not have a negative effect on the existing neighborhood and a lighting plan shall be submitted and approved by the City prior to installation. All lighting shall be situated and adjusted to shine only on the subject property, or upon authorized pedestrian areas to enhance walkability. If the property receives perceptible complaints related to lighting, the applicant shall investigate said complaint and mitigate any issues (adjustment, shades, removal of light, etc.) to the reasonable satisfaction of the City. Complaints which are unreasonable in nature, as determined by the City, or which demand unreasonable changes to the lighting plan previously approved by the City, will only be addressed if the applicant and City mutually agree to address them.
6. Hours of operation and use for outdoor patio and roof deck areas are subject to separate authorization by the City, dependent on the tenant and operational use of the spaces.
Hours and operation in the outdoor areas will be subject to review and modification by the Community Development Department and Public Safety Department, as necessary.
Special events, live entertainment, or similar uses must obtain separate authorizations.
City approvals and authorizations will not be unreasonably withheld, conditioned, or delayed, and any restrictions will be non-discriminatory and no more restrictive or onerous than restrictions placed on other retail uses in the City. Any and all live entertainment is subject to separate permitting and unique conditions of approval.
7. It is recommended that any business participating in the sale of alcoholic beverages must participate in the Responsible Retailer Program. As part of the Responsible Retailer Program, the establishment shall: (1) Know and comply with the law; (2) Have written policies to prevent sales to underage and intoxicated persons; (3) Train employees in responsible sales and service to include attending LEAD (Licensee Education on Alcohol and Drugs) classes or RBSS (Responsible Beverage Sales and Service) Training (or equivalent); (4) Actively participate in your establishment inspections by Sheriff's and Alcoholic Beverage Control (ABC) personnel; (5) Support alcohol policies and ensure they are put into practice.
8. Noise from the building and outdoor areas (i.e. TV speakers, speakers, low frequency vibrations, amplification, events, or otherwise) should be minimized to the maximum extent practicable, should not reasonably impact the neighborhood, and is subject to separate authorization by the City. All speakers and other amplification shall be directed away from
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any residential use. If any noise complaints are received for uses at the property, the applicant shall investigate said complaint and mitigate any issues to the reasonable satisfaction of the City. The project must also meet Imperial Beach Municipal Code noise requirements (Imperial Beach Municipal Code 9.32 – Noise) at all times. City approvals and authorizations will not be unreasonably withheld, conditioned, or delayed, and any restrictions will be non-discriminatory and no more restrictive or onerous than restrictions placed on other retail uses in the City. Any and all live entertainment is subject to separate permitting and unique conditions of approval.
9. Outdoor patio and dining area shall never exceed Fire Department assessed occupancy.
10. Transportation demand management strategies shall be provided and permanently maintained by the applicant and/or property owner to encourage multiple methods of transportation, including the following: bicycle parking, a kiosk for transit and rideshare information, a bicycle repair station, and monthly subsidized transit passes for MTS (50% subsidy of the cost of the MTS regional pass per dwelling unit), to requesting residents within the development for 10 years of the project after the certificate of occupancy is issued. The owner will notify each new resident of the availability of this benefit and can provide proof of participation if requested. The transportation demand management strategies shall be revisited and revised at the expense of the property owner if determined reasonably necessary by the City.
11. If reasonable necessity warrants, the conditions of this permit may be reviewed by the Community Development Director, who will suggest proposed revisions with a reasonable cure period dependent on the necessary modifications. The applicant may appeal any decisions by the Community Development Director to the City Manager, who will have final administrative decision-making authority.
12. Per Imperial Beach Municipal Code Section 19.52.050, signage shall not exceed one square foot of signage per one lineal foot of wall face.
13. All building/structural materials shall be kept in a sound and clean condition, subject to reasonable wear and tear and weathering.
14. The owner and/or owner’s designee shall assess the existing street lighting and must assess the feasibility of adding additional lighting to the adjacent right of ways to promote safety and enhance the pedestrian corridor.
15. All proposed/potential projections, mechanical or otherwise, where feasible must be below the maximum allowable building height and must be adequately screened.
16. The exterior materials of the trash enclosure must be consistent with the primary building materials.
17. Screening shall be provided around the open patio area to mitigate any potential noise impacts.
18. All utilities shall be undergrounded.
19. The owner and/or owner’s designee shall make the necessary arrangements with each of the public utility companies for the installation of underground facilities and the relocation of existing facilities in conformance with IBMC 13.08.040.
20. Approval of this request shall not waive compliance with any portion of the Building Code and Municipal Code in effect at the time building permits are issued for the proposed development.
21. All fencing must be in conformance with IBMC Chapter 19.46 Fences.
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22. Height must be measured per IBMC Section 19.04.400.
23. This project consists of covered multifamily dwellings. Demonstrate how the project will comply with the accessibility provisions of Chapter 11A of the California Building Code.
24. The commercial portion of this building will need to demonstrate compliance with Chapter 11B of the California Building Code.
25. Obtain all required building permits (Building, Plumbing, Mechanical, Electrical, Grading etc.) for this project. All construction shall comply with the adopted 2022 California Building Standards Codes; Residential, Building, Electrical, Mechanical, Plumbing, Energy, Fire, Green Building, Historic Building, Existing Building, as amended by City Ordinance 2022-1219 and other applicable Municipal Codes in effect at the time of plan submittal for building permits.
26. Prior to Foundation Inspection a survey of the property shall be conducted from a California Licensed Surveyor or Engineer and survey pins shall be in placed to identify the corners.
27. A setback and pad elevation certification prepared by the responsible licensed Land Surveyor or Engineer shall be submitted to the City Building Inspector prior to inspection or approval of the foundation.
28. All projects greater than or equal to twenty-five thousand dollars ($25,000), or which involve the construction and/or demolition of two-hundred-fifty (250) square feet or more of floor space shall comply with Imperial Beach Municipal Code Chapter 8.38. A completed Waste Management Plan shall be submitted with the building permit application.
29. Any development of property other than single-family residence(s) or duplex(es) with a valuation in excess of fifty thousand dollars ($50,000) will be required to underground all utility services on-site, adjacent thereto and those which traverse the site. IBMC 13.08.
30. Plans deviating from conventional wood frame construction shall have the structural portions signed and sealed by the California state licensed engineer or architect responsible for their preparation, along with structural calculations. (California Business and Professions Code).
31. No work for which a building permit is required shall be performed within the hours of 7:00 P.M. - 7:00 A.M. Monday - Friday, nor prior to 8:00 A.M. or after 5:00 P.M. on Saturday nor anytime on Sundays. A sign shall be posted at a conspicuous location near the main entry to the site, prominently displaying these hour restrictions.
32. A soils report must be provided with the building permit application. The report shall include foundation design recommendations based on the engineer's findings and shall comply with Section R401.4.
Should the soils engineer recommend that he/she review the foundation excavations, provide a note on the foundation plan that "Prior to the contractor requesting a Building Department foundation inspection, the soils engineer shall advise the building official in writing that:
a. The building pad was prepared in accordance with the soils report, b. The utility trenches have been properly backfilled and compacted, and c. The foundation excavations, the soils expansive characteristics and bearing capacity conform to the soils report."
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A letter will need to be provided from the soils engineer confirming that the foundation plan, grading plan and specifications have been reviewed and that it has been determined that the recommendations in the soils report are properly incorporated into the construction documents (when required by the soil report).
33. This project will be required to provide an energy design detailing compliance with the Mandatory Measures and either the Performance or Prescriptive methods of compliance.
34. The mandatory Green Building requirements for residential construction must be included on your plans. Green Building Standards are applicable to newly constructed residential buildings and additions / alterations that increase the building’s conditioned area, volume or size. California Green Building Standards Residential Mandatory Measures checklist plan sheets are available from the following website:
https://aiacalifornia.org/calgreen-checklists/
35. Please contact Matthew Schuler and California American Water District; 619-446-5713 or [email protected], to confirm the water meter requirements for this project.
36. Please contact the San Diego Gas & Electric Project Planning Team (Metro Service Order Team) at 619-230-7800 to confirm that the proposed service locations detailed on your site plan are in compliance with their service standards.
37. There are overhead SDGE high-voltage electrical distribution lines within close proximity to your project. Please specify on the plans that all structures will meet the minimum separation requirements detailed in the SDGE Service and Standards Guide – Service Drop Conductor Clearances (SG 107.11).
38. Clarify whether the proposed parking area provides parking for both the commercial and residential areas of the proposed project.
39. The ground-floor dwelling unit shall be adaptable and on an accessible route.
40. The residential portion of the project shall comply with the accessibility provisions of Chapter 11A of the California Building Code.
41. The commercial portion of the project shall comply with the accessibility provisions of Chapter 11B of the California Building Code.
42. At the time of submittal for a building permit, ensure that all project information is included on the Title Sheet; including but not limited to the allowable building area and building height calculations, number of stories, occupant load, and the basis used for the separation of occupancies per Section 508 of the California Building Code.
43. Fire-flow demand report required. The proposed project exceeds the square footage of the previous / existing structure. The applicant shall obtain a fire-flow demand report from water purveyor California American Water indicating that the existing water supply infrastructure can meet the demand required by the new structure(s). The nearest fire hydrant is located at the intersection of CALLA AVE AND 10TH STREET.
REQUIRED MINIMUM FIRE-FLOW DEMAND:
3250 GPM for 180 Minutes
California American Water
1025 Palm Avenue
Imperial Beach, CA 91932
Resolution No. 2023-68
Once the report has been obtained from California American Water please provide (1) copy to the Imperial Beach Fire -Rescue Department for review and (1) copy to the Imperial Beach Planning Department for retention.
44. Automatic fire sprinkler system shall be designed for compliance with NFPA 13. Automatic fire alarm system (waterflow activation) shall be designed for compliance with NFPA 72.
45. Specify the location of the proposed sewer lateral.
46. If an existing sewer lateral servicing the site will not be utilized and is to be abandoned, it shall be abandoned per the Greenbook standards or other approved building standards.
Include the abandonment procedures on the building plans for City approval.
47. (If applicable) For new commercial units using existing sewer lateral, the applicant is required to demonstrate that the sewer lateral conforms to all City standards, specifications and codes. In order to determine the existing condition of the lateral, the applicant must provide an in-line closed-circuit video (CCTV) inspection of the lateral from the building to the City's sewer main. Any damaged sections of pipe found during the video inspection must be repaired before approval of the lateral for use.
48. (If Applicable) New sewer connection to the main line shall be coordinated with the City of Imperial Beach Public Works Department.
49. Prior to approval of these plans the sewer lateral locations shall be drawn on the plans and submitted to the City for review and approval. If applicable, new buildings cannot be constructed on top of existing sewer lateral, rerouting is required.
50. Multifamily dwellings are to have a separate sewer lateral for each detached unit with separate water meters. Applicants may request during the plan check to connect each building sewer to a common sewer system extension that leads to the public sewer system provided that the sewer system extension is adequately sized and an agreement is in place between the adjoining units.
51. Sewer laterals shall be installed per Regional Standards SS-01 through SS-04, SP-01 through SP-03 & SC-01. Upon completion, the applicant shall contact the Public Works Department for an inspection of the tie to the Main by calling the Public Works Inspector at (619) 551-8005.
52. No building roof or landscape water drains may be piped to the street or onto impervious surfaces that lead to the street. A design that has these water discharges directly into the storm drain conveyance system (onto an impervious surface that flows to the street) is in violation of the Municipal Storm Water Permit - Order R9-2013-0001.
53. Building foundation elevations shall be at least one (1) foot above gutter line to minimize flooding during storm conditions.
54. The owner of private property adjoining the public right-of-way shall be responsible to maintain the proposed bio retention landscaping in the area between the parkway and private property line for the entire frontage of the property. Such maintenance shall include watering and clearing of weeds.
55. Proposed driveway approaches shall be constructed in a manner so as to:
a. Maintain existing stormwater runoff flows:
b. Avoid the flow of stormwater across the new driveway (or associated sidewalk); and
c. Include the installation of an expansion joint between the paved surface on the private property and the paved surface of the public right-of-way.
Resolution No. 2023-68
56. Existing driveway approaches on Calla Ave. adjacent to the property shall be removed and reconstructed in compliance with San Diego Regional Standard Drawing G-2 (Curb & Gutter- Combined).
57. For alley, sidewalk or curb & gutter replacement ensure compliance with San Diego Regional Standard Drawing G-11 (Concrete Curb, Gutter, Sidewalk & Pavement Removal and Replacement) in that, the “Area to be removed [must be] 5’ or from joint to joint in panel, whichever is less.” The distance between joints or score marks must be a minimum of 5-feet. Where the distance from “Area to be removed”, to existing joint, edge or score mark is less than the minimum shown, “Area to be removed” shall be extended to that joint, edge or score mark.
58. Along the public right-of-way, the applicant shall eliminate any existing tripping hazards caused by the condition of the existing public sidewalk along the property frontage. The remedial work required herein shall be performed to the satisfaction of the Public Works Inspector.
59. All existing sidewalk abutting the property on Seacoast Dr. & Donax Ave. that does not conform to current ADA standards shall be reconstructed and replaced per SDRSD G-7, with sidewalk joint locations per SDRSD G-9 and concrete joint details per SDRSD G-10.
60. Where existing right-of-way pavement is to be removed, a clean, neat line shall be sawcut at the edge of existing pavement where the new replacement pavement to be installed.
A minimum twelve (12) inch cut shall be provided between a new driveway, curb or other concrete work that meets with asphalt. This will give a clean, compactable area to transition from new concrete to existing road surface. All driveways or sidewalks shall be poured as soon as possible after disturbance of existing pavement to prevent erosion of pavement integrity. Any damaged pavement shall be repaired with like material to the satisfaction of the Public Works Inspector. Existing street widths shall not be narrowed as a result of apron placement.
All trench resurfacing shall be performed in accordance with the standards shown below and shall be subject to inspection by the City’s Public Work Inspector. The permittee shall be responsible for calling for an inspection at (619) 423-8311. Trenches and improvements in streets shall conform to regional standards as follows:
a. Trenches wider than six (6) inches: Use Regional Standard G-24A type C & G24B. The base shall be compacted with twelve (12) inch maximum lifts to 95% modified proctor and test reports.
b. Trenches six (6) inches or less: Use regional standard G-33 Type B. Call for an inspection prior to the Asphalt repair at (619) 551-8005. c. Traffic Control plans shall be followed per approved plans and adjusted by the contractor for changing conditions.
d. Trench plates used for a SDG&E gas connection (which can take several weeks), or on downhill road sections, need to be ground down so plates are flush with roadway. All plates are to be slip resistant. All open trenches in roadway shall be plated and secured at the end of the work day. All other open trenches shall be plated or covered in heavy plywood.
e. Where a curb exists, the applicant shall bore under curb or saw cut a minimum of the width of the asphalt patch and replace with same construction. f. No trench shall be opened in any street for the purpose of laying pipes, conduits or ducts except when the prior written consent of the Director of Public Works has been obtained. Construction shall include restoration of all speed controls (bumps
Resolution No. 2023-68
or humps) and all striping and/or any signage that may be disturbed as the result of project implementation. Restoration of disturbed speed humps shall include a double coat of speed hump paint with glass crystals. No open trench shall be allowed across any street or within 10 ft. of any travel way.
61. For any work to be performed in the street or alley, submit a traffic control plan for approval by Public Works Inspector a minimum of 5 working days in advance of street work. Traffic control plan is to be per Regional Standard Drawings or CALTRANS Traffic Control Manual.
62. The applicant shall be responsible for informing the public of the traffic conditions existing within the construction area at all times by placement of appropriate warning and advisory signs. The applicant shall also provide and maintain all traffic control and safety items.
Barricades and any other delineation in the right of way shall be required and maintained by applicant for the duration of the right of way improvements. Applicant assumes sole and complete responsibility for the job and site conditions during the course of construction, including safety of all persons and property. This requirement shall apply continuously twenty-four (24) hours per day and shall not be limited to normal work hours.
63. For any project that proposes work within the public right-of-way (i.e., driveway removal/construction, sidewalk removal/construction, street or alley demolition/reconstruction, sewer lateral trenching and installation, landscaping and irrigation, fences, walls within the public right-of-way, etc.), a Temporary Encroachment Permit (TEP) shall be applied for and approved either prior to or concurrent with issuance of the building permit required for the project. Application for a Temporary Encroachment Permit shall be made on forms available at the Community Development Department.
64. Permittee shall schedule inspections with the Public Works Department (619) 423-8311 at least 24 hours prior to need as follows:
a. Sidewalk, Driveway, Curb and Gutter and other Concrete Work Pre-pour and Final b. Street Excavation T-Cut and Final
c. Sewer Lateral Capping during Demolition and New Lateral Connection to Main d. All Other Encroachment Activity Final
65. All alley, driveway, sidewalk, or curb & gutter construction within the City right-of-way shall require either a “CLASS A” or “C-8” Contractor’s license. All sewer lateral installations and trenching work within the City right-of-way shall require a “CLASS A” Contractor’s license.
66. Any disposal/transportation of solid/construction waste in roll off containers must be contracted through EDCO Disposal Corporation unless the hauling capability exists integral to the prime contractor performing the work.
67. The parcel impervious surfaces are not to increase beyond that proposed in the project review drawings. This will be as a post-construction condition in order to maximize the water runoff infiltration area on the parcel in compliance with Municipal Storm Water Permit – Order R9-2013-0001.
68. Install/set property survey monuments at all property corners. Prepare either a Record of Survey or Corner Record, whichever is applicable pursuant to the requirements of the State Land Surveyor’s Act. Said Record of Survey or Corner Record shall be recorded in the office of the San Diego County Recorder. Provide the City with a recorded copy.
69. Applicant required to provide verification of post construction Best Management Practice (BMP) maintenance provisions through a legal agreement, covenant, CEQA mitigation
Resolution No. 2023-68
requirement, and / or Conditional Use Permit. Agreement is provided through the Community Development Department.
70. Property owner must institute “Best Management Practices” to prevent contamination of storm drains, ground water and receiving waters during both construction and post construction. The property owner or applicant BMP practices shall include but are not limited to:
a. Contain all construction water used in conjunction with the construction. Contained construction water is to be properly disposed in accordance with Federal, State, and City statutes, regulations and ordinances.
b. All recyclable construction waste must be properly recycled and not disposed in the landfill.
c. Water used on site must be prevented from entering the storm drain conveyance system (i.e. streets, gutters, alley, storm drain ditches, storm drain pipes). d. All wastewater resulting from cleaning construction tools and equipment must be contained on site and properly disposed in accordance with Federal, State, and City statutes, regulations, and ordinances.
e. Erosion control - All sediment on the construction site must be contained on the construction site and not permitted to enter the storm drain conveyance system.
Applicant is to cover disturbed and exposed soil areas of the project with plastic– like material (or equivalent product) to prevent sediment removal into the storm drain system. See CASQA’s (California Stormwater Quality Association) Construction Best Management Practices Handbook for other alternative erosion and sediment control BMPs.
71. Two days prior to any excavation, “Dig-Alert” (800) 227-2600 shall be notified to locate all known underground utilities.
72. Applicant must underground all utilities in accordance with I.B.M.C. 13.08.060.C as noted below, applicability to new structures:
a. For any development which requires a building permit but is of a valuation of fifty thousand dollars or less, the applicant will be required either to underground the utilities or to sign a deferral agreement pertaining thereto. b. For any development of single-family residence(s) or duplex(es) which exceeds a valuation of fifty thousand dollars, the applicant will be required to sign a deferral agreement with, and pay a recording fee to, the City.
c. Any development of property other than as described in subsection A or B of this section in excess of fifty thousand dollars valuation will be required to underground all utility services on-site, adjacent thereto and those which traverse the site.”
73. Applicant shall defend, indemnify, and hold harmless the City, its agents, officers, and employees from any and all claims, actions, proceedings, damages, judgments, or costs, including attorney’s fees and costs incurred by the City and any claim for private attorney general fees and costs claimed by or awarded to any party against the City or its agents officers or employees against the City or its agents, officers, or employees, relating to the approval of the project (USE-22-0100) including, but not limited to, any action to attack, set aside, void, challenge, or annul this development approval and any environmental document or decision (including the Regular Coastal Permit (CP-22-0016), , Design Review Case (DRC-22-22-0030), Site Plan Review (SPR-22-0031), and Categorical Exemption pursuant to CEQA Guidelines 15332 (In-Fill Development), including any
Resolution No. 2023-68
claims for violation of the Public Records Act or discovery law arising from and with respect to litigation involving these approvals (collectively “Development Approvals”). The City will promptly notify applicant of any claim, action or proceeding concerning the Development Approvals. (“Notification of Claim”). The City may elect to conduct its own defense, participate in its own defense, or obtain independent legal counsel in defense of any claim related to this indemnification. In the event of such election, applicant shall pay all of the costs related thereto, including without limitation reasonable attorney’s fees and costs. In the event of such election applicant shall pay all of the costs related thereto including without limitation attorney’s fees and costs incurred by the City. In the event of a disagreement between the City and applicant regarding litigation issues, the City shall have the authority to control the litigation and make litigation related decisions, including, but not limited to, settlement or other disposition of the matter.
74. The Developer or Developer’s representative shall read, understand, and accept the conditions listed herein and shall, within 30 days, return the signed Affidavit accepting said conditions.
75. The Developer shall pay off any deficits in his project account (22-0100-DEP) prior to building permit issuance and prior to final inspection.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Imperial Beach at its meeting held on the 16
th day of August 2023, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
PALOMA AGUIRRE, MAYOR
ATTEST:
JACQUELINE M. KELLY, MMC
CITY CLERK
PROJECT TEAM
OWNER/APPLICANT:
ARCHITECT
STRUCTURAL ENGINEER
MEP ENGINEER
SURVEYOR
LANDSCAPE ARCHITECT
CONTRACTOR
QJ DEVELOPMENT LLC
JOSEPH SANCHEZ
619-997-3911
[email protected]
QUIN VU
[email protected]
CLAD INC.
COLIN LOWRY, AIA C-35202
4766 32ND ST
SAN DIEGO, CA 92116
619 800 8105
[email protected]
TO BE DETERMINED
TO BE DETERMINED
H2GEOMATICS INC.
STEVEN A. HEISE
40168 CALLE SANTA CLAUDIA, INDIO, CA 92203
TEL: (619) 218-4520
EMAIL: [email protected]
WEBSITE: WWW.SDLANDSURVEYOR.COM
SIMON LANDSCAPE ARCHITECTURE
KYLE SIMON, PLA
619 370 1080
[email protected]
QJ DEVELOPMENT LLC
JOSEPH SANCHEZ
619-997-3911
[email protected]
QUIN VU
[email protected]
PROJECT INFO
ADDRESS
ASSESSOR'S PARCEL NUMBER
LEGAL DESCRIPTION
SITE AREA
PROJECT DESCRIPTION
YEAR OF ORIGINAL CONSTRUCTION
ZONING CLASSIFICATION
OVERLAY ZONES
CONSTRUCTION TYPE
OCCUPANCY
DWELLING UNITS
PARKING
SPRINKLERS
DENSITY BONUS
FAR
BUILDING HEIGHT
981 & 983 CALLA AVE,
IMPERIAL BEACH, CA 91932
626-221-24-00
LOTS 35 AND 36 BLOCK, SOUTH SAN DIEGO, IN THE CITY OF IMPERIAL BEACH, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 497, FILED IN THE OFFICE OF THE SAN DIEGO COUNTY RECORDER. TOGETHER WITH THAT PORTION OF CALLE AVENUE CLOSED TO THE PUBLIC. 7,034 SF (0.16 ACRE)
THE SCOPE OF WORK INCLUDES THE NEW CONSTRUCTION OF
3-STORY BUILDING CONSISTING OF :
COMMERCIAL SPACE (TYPE 5B, B) 777 SF
12 MULTIFAMILY DWELLING UNITS (TYPE 5B, R2) 8,060 SF
LOBBY / STAIRS (TYPE 5B, R2) 459 SF
COVERED PARKING (TYPE 5B, S2) 2,393 SF
UTILITY / TRASH ROOM (TYPE 5B, U) 330 SF
1972
C/MU-1 GENERAL COMMERCIAL AND MIXED USE
COASTAL OVERLAY ZONE, SITE PLAN REVIEW
TYPE 5B
R-2 (APARTMENTS ); S2 (PARKING GARAGE); U (UTILITY ROOM)
B (BUSINESS)
ALLOWED: 7,034/1,000 = 7.03 = 8 DU'S
+ 50% DENSITY BONUS = 12 DU'S
= 12 MAX DU'S ALLOWED
PROVIDED: 12 TOTAL DWELLING UNITS
REQUIRED: 1/2 SPACE PER DU = 6 (MIN 50% COVERED)
PROVIDED: 3 COVERED, 3 UNCOVERED PARKING SPACES
ALL PARKING IS FOR RESIDENTIAL USE ONLY
NFPA 13
REQUIRED: PER GOVERNMENT CODE 65915, A 50% DENSITY BONUS & 3 INCENTIVES REQUIRES 15% OF THE BASE
DENSITY TO BE VERY LOW INCOME UNITS
PROVIDED: 2 VERY LOW INCOME UNITS (2 VERY LOW INCOME UNITS / 8 BASE DENSITY UNITS = 25%, COMPLIES)
1.75 (12,018 SF FLOOR AREA PER CALC'S BELOW)
MAXIMUM : 40' MAX
PROVIDED: 39'-2 1/2"
ABBREVIATIONS
AB: ANCHOR BOLT
ACT: ACTUAL
AD: AREA DRAIN
AFF: ABOVE FINISHED FLOOR
AIA: AMERICAN INSTITUTE OF ARCHITECTS
ALT: ALTERNATE
ALUM: ALUMINUM
APPROX: APPROXIMATE
ASTM: AMERICAN SOCIETY FOR TESTING
AND MATERIALS
BOT: BOTTOM
BTU: BRITISH THERMAL UNITS
BYP: BY PASS
CAB: CABINET
CF: CUBIC FEET
CL: CENTERLINE, CLOSET
CMU: CONCRETE MASONRY UNIT
CONT: CONTINUOUS
DEMO: DEMOLITION
DIA: DIAMETER
DIAM: DIAMETER
DIFF: DIFFUSER
DIM: DIMENSION
LB: POUND (WEIGHT), LAG BOLT
LN: LENGTH
LR: LIVING ROOM
LT: LIGHT
LTG: LIGHTING
MAINT: MAINTENANCE
MAX: MAXIMUM
MECH: MECHANICAL
MIN: MINIMUM
MISC: MISCELLANEOUS
MO: MASONRY OPENING
NTS: NOT TO SCALE
OC: ON CENTER
OH: OVERHEAD
OPP: OPPOSITE
PL: PLATE
PSI: POUNDS PER SQUARE INCH
RA: RETURN AIR
RAD: RADIUS
RCP: REFLECTED CEILING PLAN
RD: ROOF DRAIN
REQ: REQUIRE
RM: ROOM
RO: ROUGH OPENING
ROW: RIGHT OF WAY
SF: SQUARE FOOT
SIM: SIMILAR
EQ: EQUAL
EXIST: EXISTING
FAR: FLOOR AREA RATIO
FDN: FOUNDATION
FFE: FINISHED FLOOR ELEVATION
FT: FOOT, FEET
FTG: FOOTING
FURR: FURRING
GA: GAUGE, GAGE
GALV: GALVANIZED
GFI: GROUND FAULT INTERRUPTED
GYP: GYPSUM
HP: HIGH POINT
HT: HEIGHT
HVAC: HEATING, VENTILATING & AIR CONDITIONING
HVY: HEAVY
IN: INCH
INFO: INFORMATION
INT: INTERIOR
K: KELVIN (TEMPERATURE)
KIT: KITCHEN
SJS: SILICONE JOINT SEALANT
SPEC: SPECIFICATION
SQ: SQUARE
SS: STAINLESS STEEL
STC: SOUND TRANSMISSION CLASS
STD: STANDARD
STOR: STORAGE
STRUCT: STRUCTURAL
T&G: TONGUE & GROOVE
TEMP: TEMPERED
THRU: THROUGH
TV: TELEVISION
TW: TOP OF WALL
TYP: TYPICAL
UL: UNDERWRITERS' LABORATORIES
UNO: UNLESS NOTED OTHERWISE
VA: VOLT AMPERE
WD: WOOD
WIN: WINDOW
GENERAL NOTES
1. ALL WORK SHALL COMPLY WITH FEDERAL, STATE AND LOCAL BUILDING CODES AND REGULATIONS, INCLUDING THE FOLLOWING:
2019 CALIFORNIA BUILDING CODE
2019 CALIFORNIA RESIDENTIAL CODE
2019 CALIFORNIA ELECTRICAL CODE
2019 CALIFORNIA MECHANICAL CODE
2019 CALIFORNIA PLUMBING CODE
2019 CALIFORNIA ENERGY CODE
2019 CALIFORNIA HISTORICAL BUILDING CODE
2019 CALIFORNIA FIRE CODE
2019 CALIFORNIA EXISTING BUILDING CODE
2019 CALIFORNIA GREEN BUILDING STANDARDS CODE
2. CONTRACTOR SHALL COORDINATE AND/OR OBTAIN ALL BUILDING PERMITS REQUIRED FOR CONSTRUCTION AND CERTIFICATES OF OCCUPANCY.
3. CONTRACTOR SHALL BE SOLELY RESPONSIBLE FOR ALL ASPECTS OF SAFETY DURING BUILDING CONSTRUCTION AND SHALL PROVIDE ADEQUATE SHORING AND BRACING TO ENSURE SAFETY.
4. CONTRACTOR SHALL BE SOLELY RESPONSIBLE FOR ALL CONSTRUCTION MEANS, METHODS, TECHNIQUES, AND PROCEDURES.
5. ALL DIMENSIONS ARE TO FACE OF STUD, CONCRETE OR MASONRY, UNLESS NOTED OTHERWISE.
DO NOT SCALE DRAWINGS.
6. ALL DIMENSIONS AND SITE CONDITIONS TO BE FIELD VERIFIED AND SHALL BE THE RESPONSIBILITY OF THE CONTRACTOR. NOTIFY THE ARCHITECT OF ANY DISCREPANCY PRIOR TO COMMENCEMENT OF WORK.
7. IT SHALL BE THE RESPONSIBILITY OF THE CONTRACTOR TO LOCATE ALL EXISTING UTILITIES WHETHER INDICATED ON THE PLANS OR NOT, AND TO PROTECT THEM FROM DAMAGE.
8. DURING CONSTRUCTION, AND PRIOR TO THE INCORPORATION OF ANY CHANGES, REVISIONS,
MODIFICATIONS, AND/OR DEVIATIONS FROM THE CONSTRUCTION DOCUMENTS, CONTRACTOR SHALL
BRING TO THE ATTENTION OF THE ARCHITECT AND SHALL OBTAIN APPROVAL FROM THE GOVERNING BUILDING OFFICIAL BEFORE PROCEEDING WITH THE WORK.
9. THE MANUFACTURERS, PRODUCTS AND EQUIPMENT LISTED ESTABLISH PERFORMANCE REQUIREMENTS. SUBSTITUTIONS OF EQUAL PERFORMANCE MAY BE SUBMITTED FOR THE ARCHITECT’S APPROVAL.
10. ALL MATERIALS SHALL BE INSTALLED PER MANUFACTURER’S INSTRUCTIONS/SPECIFICATIONS UNLESS NOTED OTHERWISE.
11. SPECIFIC NOTES AND DETAILS ON DRAWINGS SHALL TAKE PRECEDENCE OVER GENERAL NOTES AND TYPICAL DETAILS. WHERE NO DETAILS ARE SHOWN, CONSTRUCTION SHALL CONFORM TO SIMILAR WORK ON THE PROJECT.
GENERAL LEGEND
WINDOW TAG
RAILING TAG
WOOD FRAMED EXTERIOR WALL
WOOD FRAMED INTERIOR WALL
CMU WALL
CONCRETE WALL
FIRE EXTINGUISHER
WALL TYPE TAG
DOOR TAG
1 10
1 A101
1 A101
SIM
A101
1 SIM
F
1 Ref
1 Ref
1 Ref
1 Ref
.
.
..
101
SECTION CUT TAG
ELEVATION TAG
DETAIL CALL OUT TAG
VICINITY MAP
SITE
CALLA AVE
EMORY ST
9TH ST
PALM AVE
DEVELOPER INCENTIVES:
INCENTIVES PER GOV'T CODE SECTION 65915
1. REDUCE PARKING BACK UP SPACE FROM 24' TO 22'
2. REDUCE REAR YARD SETBACK TO 3'
3. REDUCE SIDE YARD SETBACK TO 0'
WAIVERS PER GOV'T CODE SECTION 65915
1. ELIMINATE COMMERCIAL PARKING REQUIREMENT
2. ELIMINATE OPEN SPACE (300 SF / DU) REQUIREMENT
TDM STRATEGIES
THE FOLLOWING TRANSPORTATION DEMAND MANAGEMENT
STRATAGIES WILL BE VOLUNTARILY PROVIDED BY THE OWNER:
1. BIKE PARKING (SEE 1/A101)
2. ON SITE KIOSK CONTAINING INFORMATION REGARDING TRANSIT OPTIONS AND RIDESHARE INFORMATION (SEE 1/A101)
3. ON SITE BICYCLE REPAIR STATION (SEE 1/A101)
4. PROVIDE MONTHLY SUBSIDIZED TRANSIT PASSES FOR MTS
5. PARKING WILL BE UNBUNDLED FROM THE UNIT RENTS
AREA CALCULATIONS
FLOOR AREA CALCULATION
1ST FLOOR
COMMERCIAL
RESIDENTIAL
PARKING
MISC. (LOBBY, STAIRS)
UTILITIES / TRASH ROOM
TOTAL
1ST FLOOR (MEZZANINE)
COMMERCIAL
RESIDENTIAL
TOTAL
2ND FLOOR
RESIDENTIAL
3RD FLOOR
RESIDENTIAL
3RD FLOOR (MEZZANINE)
RESIDENTIAL
TOTAL FLOOR AREA
599 SF
470 SF
2,393 SF
459 SF
330 SF
4,250 SF
178 SF
130 SF
308 SF
3,600 SF
3,600 SF
260 SF
12,018 SF
EXTERIOR AREA CALCULATIONS
1ST FLOOR
HARDSCAPE
PERVIOUS PAVERS
LANDSCAPE
TOTAL
2ND FLOOR
DECKS & EXT. CORRIDORS
3RD FLOOR
DECKS & EXT. CORRIDORS
1,416 SF (20%)
472 SF (7%)
1,207 SF (17%)
3,095 SF (44%)
701 SF
701 SF
TOTAL 1BR'S: 7
TOTAL 2BR'S: 4
TOTAL 3BR'S: 1
DRAWING INDEX
ARCHITECTURAL
LANDSCAPE
TOPOGRAPHIC SURVEY
CLAD Inc.
4766 32nd Street, San Diego, CA 92116
619.800.8105
[email protected]
cladinc.us
Project Number:
Revisions
No Date Notes
A001
TITLE SHEET
981 & 983 Calla Ave
Imperial Beach, CA 91932
XXXX
08/2/2023
DESIGN REVIEW 6
CALLA
DEVELOPMENT
VIEW FROM CALLA AVE
UNIT AREA AND TYPE
UNIT# AREA (SF) # OF BEDROOMS # OF BATHROOMS
UNIT 1 648 SF 1 1
UNIT 2 748 SF 2 1
UNIT 3 574 SF 1 1
UNIT 4 548 SF 1 1
UNIT 5 599 SF 1 1
UNIT 6 1147 SF 3 2
UNIT 7 577 SF 1 1
UNIT 8 566 1 1
UNIT 9 715 2 1
UNIT 10 703 2 1
UNIT 11 574 SF 1 1
UNIT 12 747 SF 2 1
TOTAL UNITS : 12
A001 TITLE SHEET
A100 SITE PLAN
A101 FLOOR PLANS
A102 FLOOR PLANS
A200 ELEVATIONS
A201 ELEVATIONS
A202 BUILDING SECTION
A600 RENDERINGS
A601 RENDERINGS
L1 LANDSCAPE LEGEND AND NOTES
L2 LANDSCAPE PLAN
L3 LANDSCAPE IMAGERY
T1 TOPO SURVEY
LICENSED ARCHITECT
STATE OF CALIFORNIA
COLIN LOWRY
C-35202
REN. 12.31.23
All drawings and specifications are the property of the architect and shall not be reproduced in any manner,
without expressed written permission from CLAD Inc.
Attachment 2